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SANLAM GLOBAL FUNDS PLC Annual audited financial statements for the year ended 31 December 2015 SANLAM GLOBAL FUNDS PLC ANNUAL AUDITED FINANCIAL STATEMENTS for the year ended 31 December 2015 Contents Company information Directors’ report Independent auditor’s report Page(s) 1-4 5-9 10 - 11 Depositary’s report 12 Manager’s report 13 Economic & market review 14 - 20 Investment Manager’s reports 21 - 43 Statement of comprehensive income of the Company of the Funds 44 45 - 53 Statement of financial position of the Company of the Funds 54 55 - 63 Statement of changes in net assets attributable to holders of redeemable participating shares of the Company of the Funds 64 65 - 73 Statement of cash flows of the Company of the Funds 74 75 - 83 Portfolio of investments Analytics International Flexible Fund Sanlam Global Balanced Fund Sanlam Global Best Ideas Feeder Fund Sanlam Global Equity Fund Sanlam Euro Liquidity Fund Sanlam Sterling Liquidity Fund Sanlam Global Liquidity Fund Sanlam US Dollar Liquidity Fund NFB Global Balanced Fund of Funds Sanlam BIFM World Equity Fund Sanlam BIFM Global Fixed Income Fund Mpile Global Equity Fund Brackenham Global Balanced Fund APS Global Flexible Fund of Funds Counterpoint Global Equity Fund 84 - 88 89 90 91 92 93 94 95 96 97 - 104 105 106 107 - 108 109 110 - 112 Notes to and forming part of the audited financial statements SAMI Remuneration Policy (unaudited) Leverage (unaudited) Notice of Annual General Meeting Proxy Form 113 - 238 239 - 242 243 - 244 245 246 0 SANLAM GLOBAL FUNDS PLC COMPANY INFORMATION Directors of Sanlam Global Funds Plc (the “Company”) Paul Dobbyn* – Irish Thomas Murray* – Irish Haydn Franckeiss (appointed 28 May 2015) – South African Richard Aslett (appointed 14 August 2015) – British Peter Murray* (resigned 31 December 2015) – Irish All Directors are non-executive Registered number 307841 Funds of the Company Analytics International Flexible Fund Sanlam Global Balanced Fund Sanlam Global Best Ideas Feeder Fund Sanlam Global Equity Fund Sanlam Euro Liquidity Fund Sanlam Sterling Liquidity Fund Sanlam Global Liquidity Fund Sanlam US Dollar Liquidity Fund Sanlam International Multi Asset I Fund** Verso Global Flexible Fund** NFB Global Balanced Fund of Funds Sanlam BIFM Emerging Markets Equity Fund** Sanlam BIFM World Equity Fund Sanlam BIFM Global Fixed Income Fund Sanlam BIFM South Africa Inflation Linked Bond Fund** Mpile Global Equity Fund Brackenham Global Balanced Fund APS Global Flexible Fund of Funds Counterpoint Global Equity Fund Odyssey Global Equity Fund*** Registered office of the Company Beech House Beech Hill Road Dublin 4 Ireland Manager, Alternative Investment Fund Manager & Secretary Sanlam Asset Management (Ireland) Limited Beech House Beech Hill Road Dublin 4 Ireland Administrator Sanlam Asset Management (Ireland) Limited Beech House Beech Hill Road Dublin 4 Ireland Registrar & Transfer Agent Brown Brothers Harriman Fund Administration Services (Ireland) Limited 30 Herbert Street Dublin 2 Ireland *Paul Dobbyn and Thomas Murray are considered independent Directors by the Irish Stock Exchange only. Peter Murray was also considered an independent Director by the Irish Stock Exchange prior to his resignation effective 31 December 2015. **Sanlam International Multi Asset I Fund, Verso Global Flexible Fund, Sanlam BIFM Emerging Markets Equity Fund, and Sanlam BIFM South African Inflation Linked Bond Fund closed during the year ended 31 December 2015. ***Odyssey Global Equity Fund was approved by the Central Bank of Ireland as an authorised designated sub-fund of the Company on 30 October 2015. As of the date of approval of these financial statements, Odyssey Global Equity Fund has not yet been launched. 1 SANLAM GLOBAL FUNDS PLC COMPANY INFORMATION (CONTINUED) Investment Managers Sanlam Global Liquidity Fund Sanlam Global Best Ideas Feeder Fund Sanlam Global Equity Fund Sanlam Investment Management (Pty) Limited 55 Willie van Schoor Avenue Bellville 7530 South Africa Sanlam Global Balanced Fund Sanlam Global Equity Fund Sanlam Euro Liquidity Fund Sanlam Sterling Liquidity Fund Sanlam US Dollar Liquidity Fund Sanlam BIFM Global Fixed Income Fund Sanlam BIFM World Equity Fund Mpile Global Equity Fund Sanlam FOUR Investments UK Limited* 1 Ely Place London EC1N 6RY United Kingdom Analytics International Flexible Fund Canaccord Genuity Wealth (International) Limited Collins Stewart House P.O. Box 45 The Grange St Peter's Port Guernsey GY1 4AX Channel Islands Investec Asset Management Limited 2 Gresham Street London EC2V 7QP United Kingdom Sanlam BIFM World Equity Fund Franklin Templeton Investment Management Limited The Adelphi, 1-11 John Adam Street London WC2N 6HT United Kingdom Schroder Investment Management Limited 31 Gresham Street London EC2V 7QA United Kingdom NFB Global Balanced Fund of Funds NFB Asset Management (Pty) Limited NFB House, 108 Albertyn Avenue Wierda Valley Sandton South Africa Brackenham Global Balanced Fund Brackenham Investments (Proprietary) Limited 14 Corporate Park, 11 Sinembe Crescent La Lucia Ridge Durban South Africa *Effective 31 July 2015, Sanlam International Investments Limited and Sanlam FOUR Investments UK Limited entered into a Deed of Novation upon which the rights, obligations and liabilities of Sanlam International Investments Limited were transferred to Sanlam FOUR Investments UK Limited. 2 SANLAM GLOBAL FUNDS PLC COMPANY INFORMATION (CONTINUED) Investment Managers (continued) APS Global Flexible Fund of Funds Associated Portfolio Solutions (Pty) Limited Ground Floor, Pentagon House Corner Cliffendale and Plettenberg Street Faerie Glen, Pretoria South Africa Counterpoint Global Equity Fund Counterpoint Boutique Pty Limited Ground Floor, Building No. 3 Tijger Park, Willie Van Schoor Avenue, Tyger Valley, Cape Town 7535 South Africa Investment allocation manager* Sanlam FOUR Investments UK Limited 1 Ely Place London EC1N 6RY United Kingdom Depositary Brown Brothers Harriman Trustee Services (Ireland) Limited 30 Herbert Street Dublin 2 Ireland Listing broker Maples and Calder 75 St. Stephens Green Dublin 2 Ireland Auditor Ernst & Young Harcourt Centre Harcourt Street Dublin 2 Ireland Irish legal adviser Maples and Calder 75 St. Stephens Green Dublin 2 Ireland Stock lending agent Brown Brothers Harriman & Co 50 Post Office Square Boston MA 02109 United States *Sanlam FOUR Investments UK Limited is the Investment Allocation Manager for all Funds except Analytics International Flexible Fund, Sanlam Global Best Ideas Feeder Fund, Sanlam Global Liquidity Fund, NFB Global Balanced Fund of Funds, Brackenham Global Balanced Fund, APS Global Flexible Fund of Funds and Counterpoint Global Equity Fund. 3 SANLAM GLOBAL FUNDS PLC COMPANY INFORMATION (CONTINUED) Distributors Sanlam Collective Investments Limited 2 Strand Road Bellville 7530 South Africa Sanlam Investment Management (Pty) Limited 55 Willie van Schoor Avenue Bellville 7530 South Africa Portfolio Analytics (Pty) Limited 54 Peter Place st 1 Floor Aberdeen House Peter Place Park Bryanston Johannesburg South Africa NFB Asset Management (Pty) Limited NFB House, 108 Albertyn Avenue Wierda Valley Sandton South Africa BIFM rd 3 Floor Block A Fairgrounds Office Park, Fairgrounds Gabarone Botswana African Life Financial Services (Zambia) Limited 741 Independence Avenue st 1 Floor Mpile Park Lusaka Zambia Associated Portfolio Solutions (Pty) Limited Ground Floor, Pentagon House Corner Cliffendale and Plettenberg Street Faerie Glen, Pretoria South Africa. Counterpoint Boutique Pty Limited Ground Floor, Building No. 3 Tijger Park, Willie Van Schoor Avenue, Tyger Valley, Cape Town 7535 South Africa 4 SANLAM GLOBAL FUNDS PLC DIRECTORS’ REPORT The Directors of Sanlam Global Funds plc (the “Company”) present herewith their Annual Report together with the audited financial statements for the year ended 31 December 2015. RESULTS AND BUSINESS ACTIVITIES Detailed investment reviews are included in the Reports of the Investment Manager on pages 21 to 43. The results of operations are set out in the Statement of Comprehensive Income on pages 44 to 53. The Directors also draw your attention to the significant events during the year disclosed in Note 22 on pages 237 to 238. PRINCIPAL RISKS AND UNCERTAINTIES The Company is exposed to the risks associated with the financial instruments and markets in which the Funds invest. The Directors draw your attention to Note 18 on pages 177 to 221 which outlines the financial risks associated with meeting the Company’s investment objectives. The Directors are not aware of any existing or contingent liability of the Funds that may expose the assets of the Company as a whole. DIVIDENDS The Directors have no current intention to make distributions from any Fund. All such profits shall be retained in the relevant Fund. DIRECTORS The Directors of the Company during the year were as follows: Paul Dobbyn (Irish) Thomas Murray (Irish) Haydn Franckeiss (South African) Richard Aslett (British) Peter Murray (Irish) Paul Dobbyn is a Director of Sanlam Qualifying Investors Funds Plc and Sanlam Universal Funds Plc. Paul Dobbyn is also a Director of Sanlam Global Fund of Hedge Funds Plc, which the Directors resolved to place into voluntary liquidation on 7 November 2014. Paul Dobbyn was also a Partner in Maples and Calder until his resignation on 23 March 2015. Thomas Murray is a Director of Sanlam Qualifying Investors Funds and Sanlam Universal Funds Plc. Thomas Murray is also a Director of Sanlam Global Fund of Hedge Funds Plc, which the Directors resolved to place into voluntary liquidation on 7 November 2014. On 07 October 2015, Thomas Murray was also appointed as a Director of Sanlam Asset Management (Ireland) Ltd. (“SAMI”). Haydn Franckeiss was appointed as a Director of the Company on 28 May 2015. Haydn Franckeiss is also a Director of Sanlam Qualifying Investors Funds Plc and Sanlam Universal Funds Plc. Richard Aslett was appointed as a Director of the Company on 14 August 2015. Richard Aslett is the Chief Executive Officer of SAMI. Richard Aslett is also a Director of Sanlam Qualifying Investors Funds Plc, Sanlam Universal Funds Plc and SAMI. Peter Murray (resigned 31 December 2015) was also a Director of SAMI, Sanlam Qualifying Investors Funds Plc, Sanlam Universal Funds Plc and Sanlam Global Fund of Hedge Funds Plc before his resignation effective 31 December 2015. 5 SANLAM GLOBAL FUNDS PLC DIRECTORS’ REPORT (CONTINUED) DIRECTORS’ AND SECRETARY’S INTEREST IN SHARES AND CONTRACTS At 31 December 2015, Haydn Franckeiss held 39,547.68 shares in Sanlam Global Best Ideas Feeder Fund. The other Directors who held office on 31 December 2015 had no interest in the shares of the Company or Funds at that date or at any time during the financial year. None of the Directors has a service contract with the Company. The Manager holds non-participating shares of the Company as explained in the notes to the Financial Statements. RELATED PARTIES Disclosures in respect of related parties are contained in note 12 to the Financial Statements. CONNECTED PARTIES The Central Bank of Ireland AIF Rulebook section on "Dealings by management company, general partner, depositary, AIFM, investment manager or by delegates or group companies of these" states that any transaction carried out with the Company by a management company, general partner, depositary, AIFM, investment manager or by delegates or group companies of these ("Connected Parties") must be carried out as if negotiated at arm's length. Transactions must be in the best interests of the shareholders. The Board of Directors is satisfied there are arrangements (evidenced by written procedures) in place, to ensure that the obligations set out above are applied to all transactions with Connected Parties entered into during the year and that all such transactions have complied with these obligations. ACCOUNTING RECORDS The measures taken by the Directors to ensure compliance with the Company’s obligation to keep proper accounting records are the use of appropriate systems and procedures which are carefully implemented by the Administrator. The accounting records of the Company are kept at Beech House, Beech Hill Road, Dublin 4, Ireland. SUBSEQUENT EVENTS Other than as disclosed in note 23, up to the date of the approval of these financial statements there were no events subsequent to the year end, which, in the opinion of the Directors of the Company, may have had an impact on the financial statements for the year ended 31 December 2015. STATEMENT OF DIRECTORS’ RESPONSIBILITIES Irish company law requires the Directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Company and of the results of the Company for that year. In preparing those financial statements, the Directors are required to: select suitable accounting policies and then apply them consistently; make judgements and estimates that are reasonable and prudent; follow applicable accounting standards or disclose or explain material departures from them in the financial statements; provide a fair review of the development and performance of the Company and its subsidiaries; give a description of principal risks and uncertainties that they face; and prepare the financial statements on the going concern basis, unless it is inappropriate to presume that the Company will continue in business. 6 SANLAM GLOBAL FUNDS PLC DIRECTORS’ REPORT (CONTINUED) STATEMENT OF DIRECTORS’ RESPONSIBILITIES (CONTINUED) The Directors are responsible for keeping proper books of account 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 International Financial Reporting Standards (“IFRS”) as adopted by the EU and comply with the Irish Companies Act 2014. They are also responsible for safeguarding the assets of the Company and in fulfilment of this responsibility, they have entrusted the assets of the Company to the Depositary for safekeeping, in accordance with the Memorandum and Articles of Association of the Company. The Directors are responsible for taking reasonable steps for the prevention and detection of fraud and other irregularities. CORPORATE GOVERNANCE CODE The European Communities (Directive 2006/46/EC) Regulations (S.I. 450 of 2009 and S.I.83 of 2010) (the “Regulations”) requires the inclusion of a corporate governance statement in the Directors’ Report. Although there is no specific statutory corporate governance code applicable to Irish collective investment schemes whose shares are admitted to trading on the Irish Stock Exchange (“ISE”), the Irish Funds Industry Association (“IFIA”) has published a corporate governance code (“IFIA Code”) that may be adopted on a voluntary basis by Irish authorised collective investments schemes. This code became effective from 1 January 2012, with a twelve month transitional period. It should be noted that the IFIA Code reflects existing corporate governance practises imposed on Irish authorised collective investment schemes, as noted above. On 19 December 2012, the Board of Directors voluntarily adopted the IFIA Code as the Company’s corporate governance code. The Board of Directors has assessed the measures included in the IFIA Code as being consistent with its corporate governance practises and procedures for the financial year. The code is available at www.sanlam.ie. In addition to the IFIA Code, the Company is subject to corporate governance practices imposed by: i) ii) iii) iv) v) vi) The Irish Companies Act 2014, which is available for inspection at the registered office of the Company. It may also be obtained at http://www.irishstatutebook.ie/eli/2014/act/38/enacted/en/html. The Articles of Association of the Company which are available for inspection at the registered office of the Company at Beech House, Beech Hill Road, Dublin 4, Ireland and the Companies Registration Office in Ireland. The Central Bank of Ireland in their AIF Rulebook for Retail Investor AIFs which can be obtained from the Central Bank of Ireland website at http://www.centralbank.ie/regulation/industrysectors/funds/aifmd/Pages/default.aspx and are available for inspection at the registered office of the Company. 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/Products-Services/Investment%20Funds/List-aFund/Open%20ended%20rules.pdf?v=1032015. SAMI's Programme of Activity, Business Plan and Code of Conduct, which are available for inspection at the registered office of SAMI at Beech House, Beech Hill Road, Dublin 4, Ireland. SAMI is also subject to the Corporate Governance Code of the Sanlam Group. The Board of Directors is responsible for establishing and maintaining internal control and risk management systems of the Company in relation to the financial reporting process. Such systems are designed to manage rather than eliminate the risk of error or fraud in achieving the Company’s financial reporting objectives and can only provide reasonable and not absolute assurance against material misstatement and loss. The Board of Directors has delegated this duty to SAMI. 7 SANLAM GLOBAL FUNDS PLC DIRECTORS’ REPORT (CONTINUED) CORPORATE GOVERNANCE CODE (CONTINUED) SAMI is appointed as administrator to maintain the books and records of the Company. SAMI is authorised and regulated by the Central Bank of Ireland and must comply with the rules imposed by the Central Bank of Ireland. SAMI also monitors and evaluates the external auditor's performance, qualifications and independence. The Company has procedures in place to ensure all relevant books of accounts are properly maintained and are readily available, including production of annual and half-yearly financial statements. The annual financial statements of the Company are required to be approved by the Board of Directors of the Company and the annual and half yearly financial statements are required to be filed with the Central Bank of Ireland and the ISE. The statutory financial statements are required to be audited by the independent auditors who report annually to the Board on their findings. The Board of Directors evaluates and discusses significant accounting and reporting issues as the need arises. Shareholders’ meetings The convening and conduct of shareholders meetings are governed by the Articles of Association of the Company and the Companies Acts. Although the Directors may convene an extraordinary general meeting of the Company at any time, the Directors of the Company are required to convene a general meeting within eighteen months of incorporation and fifteen months of the previous annual general meeting thereafter. Shareholders representing not less than one-tenth of the paid up share capital of the Company may also request to convene a shareholders meeting. Not less than twenty one days’ notice of every annual general meeting and any meeting for the passing of a special resolution must be given to shareholders and fourteen days’ notice must be given in the case of any other general meeting unless the auditors of the Company and all the shareholders entitled to attend and vote agree to shorter notice. Two members present either in person or by proxy constitutes a quorum at a general meeting provided that the quorum for a general meeting convened to consider any alteration to the class rights of shares is two shareholders holding or representing by proxy at least one third of the issued shares of the relevant Funds or class. Every holder of participating shares or non-participating shares present in person or by proxy who votes on a show of hands is entitled to one vote. On a poll, every holder of participating shares present in person or by proxy is entitled to one vote in respect of each share held by him and every holder of nonparticipating shares is entitled to one vote in respect of all non-participating shares held by him. The chairman of a general meeting of the Company, or at least two members present in person or by proxy, or any holder or holders of participating shares present in person or by proxy representing at least one-tenth of the shares in issue having the right to vote at such meeting, may demand a poll. Shareholders may decide to sanction an ordinary resolution or special resolution at a shareholders’ meeting. An ordinary resolution of the Company (or of the shareholders of a particular Fund or class) requires a simple majority vote cast by the shareholders voting in person or by proxy at the meeting at which the resolution is proposed. A special resolution of the Company (or of the shareholders of a particular Fund or class) requires a majority vote of not less than 75% of the shareholders present in person or by proxy and voting in general meeting in order to pass a special resolution including a resolution to amend the Articles of Association. Composition and Operation of the Board Unless otherwise determined by an ordinary resolution of the Company in a general meeting, the number of Directors may not be less than two. Currently the Board of Directors of the Company is composed of four Non-Executive Directors, being those listed on page 1 of these financial statements with Paul Dobbyn, Thomas Murray and Richard Aslett being Irish residents. None of the Company’s Directors hold common directorships with the Depositary. 8 SANLAM G LOBAL FUNDS PLC REPORT OF THE DEPOSITARY TO THE SHAREHOLDERS 12 SANLAM GLOBAL FUNDS PLC MANAGER’S REPORT Sanlam Asset Management (Ireland) Limited (“SAMI” or the “Manager”) presents herewith the Manager’s Report for the year ended 31 December 2015. SAMI has been appointed to serve as the Company's administrator and Alternative Investment Fund Manager ("AIFM") and to manage the assets of each Fund in accordance with its investment objective and policies as determined by the AIFM and any subsequent changes thereto. As the AIFM, SAMI has responsibility for the management and administration of the Company's affairs and distribution of the Shares, subject to the overall supervision and control of the Directors of the Company. SAMI has delegated the performance of certain of its investment management functions in respect of the Company to the Investment Allocation Manager and the Investment Managers. In addition, SAMI has delegated the performance of certain of its distribution functions in respect of the Company to the Distributors. These delegation arrangements have been notified to the Central Bank and made in accordance with SAMI's outsourcing/delegation policy, its Programme of Activity, the AIFM Regulations and the AIF Rulebook. SAMI will notify the Central Bank before any further delegation becomes effective and will be able to justify its entire delegation structure with objective reasons. Performance and Investment Activities An overall review of the economic environment is detailed in the Economic and Market Review on pages 14 to 20. The performance and investment activities of the individual Funds of the Company are set out in the Investment Managers’ reports on pages 21 to 43. Material Changes The AIFMD requires certain information to be made available to investors in AIFs, including the Company, before they invest and requires that material changes to this information be disclosed in the annual report. The Company’s Prospectus and the Supplement of each Fund of the Company, which sets out information on the Company’s investment strategy and policies, leverage, risk, liquidity, administration, management, fees, conflicts of interest and other shareholder information is available on the AIFM’s website at www.sanlam.ie. There have been no material changes (other than those reflected in these financial statements) to this information requiring disclosure. Any information requiring immediate disclosure pursuant to the AIFMD will be disclosed to shareholders as and when it arises. Portfolio Overview The portfolios held by the individual Funds are disclosed on pages 84 to 112. Other risk disclosures The financial risk disclosures relating to the Company’s risk framework and liquidity risk are set out in note 18 of the notes to and forming part of the audited financial statements on pages 177 to 221. SAMI Remuneration Policy The remuneration policy of the Manager for the year ended 31 December is disclosed on page 239 to 242. Leverage The leverage of each Fund of the Company, as determined using the methodologies prescribed under the AIFMD is disclosed on pages 243 to 244. 13 SANLAM GLOBAL FUNDS PLC ECONOMIC & MARKET REVIEW for the year ended 31 December 2015 Global Economic Review Amongst developed economies, the recovery in the US and UK continued in the latter half of 2015, while a mild upswing took hold in the Euro area. Generally, the recovery in real economic activity reflects firmer household consumption expenditure, partially due to the support lent to real disposable income growth by the collapse in oil prices. Unemployment rates have trended lower and the fall in commodity prices has boosted the terms of trade and purchasing power of commodity importers. In the US, specifically, credit extension, while moderate, has recovered from the financial crisis slump. US households have deleveraged and their net wealth has bounced. In addition, jobs growth data has been especially buoyant. Further, the US housing market held up in 2015. Homebuilder sentiment has been elevated and house price growth remained moderate. Pending and existing home sales data weakened in the final months of the year, but housing starts and permits trended higher through last year. That said real GDP growth did slow appreciably in the world’s largest economy in the final quarter of 2015. Meanwhile, growth expectations for emerging market economies were revised substantially lower through the past year, reflecting the adverse impact of soft external demand, falling terms of trade amongst commodity producers, softer productivity growth, weaker corporate profitability, geopolitical tension and stubbornly high inflation in some cases. Tighter global financial market conditions exposed the vulnerability of numerous emerging market economies, notably those running macroeconomic imbalances. China was a focal point as industrial production growth slowed to its lowest level since the global financial crisis. Concern also mounted over the country’s high debt level, including non-financial corporations’ debt, amidst slowing income growth. Accordingly, China’s policymakers eased policy, including cuts in the benchmark rates of the Peoples Bank of China and reductions in the Reserve Requirement Ratio of banks. In addition, the monetary authorities managed the Yuan weaker, which is not surprising considering the extent of real appreciation of China’s currency since the financial crisis, the concomitant decline in the country’s current account surplus in recent years and the exceptionally low level of inflation. Also, partially reflecting softening production levels in China, global industrial production growth, which stalled in the first half of 2015, remained weak in the latter half of the year. In particular, the December 2015 global manufacturing purchasing managers’ index (PMI) release disappointed with declines recorded in the US and China. Overall, the PMI output index remained consistent with low, single digit global industrial production growth at best. One consequence of this was continued downward pressure on commodity prices, including oil prices which declined to their lowest level since the global recession by the end of the year. Given tepid growth and lower commodity prices, global headline inflation was well contained in 2015, although there were notable exceptions in developing countries including Brazil, Russia and Turkey. Core inflation in developed economies remained stable at a relatively low level. The monetary policy stances of the European Central Bank (ECB) and the US Federal Reserve continued to diverge. In Europe, non-harmonised consumer price inflation advanced just 0.2 per cent in the year to December 2015. Concern over possible deflation in the Euro area, in addition to the lack of real GDP growth, encouraged the European Central Bank (ECB) to announce an extension of its sovereign quantitative easing programme (initially introduced on 22nd January 2015) at the conclusion of the ECB Governing Council meeting in early December 2015. 14 SANLAM GLOBAL FUNDS PLC ECONOMIC & MARKET REVIEW (CONTINUED) for the year ended 31 December 2015 Global Economic Review (continued) In contrast, encouraged by the ongoing economic recovery and relative buoyancy of employment data, the US Federal Reserve Open Market Committee, which concluded its asset purchase programme in October 2014, shifted towards a less accommodative monetary policy stance, increasing the target range for the federal funds rate from ¼ to ½ per cent at the conclusion of its monetary policy meeting on 16 December 2015 (from the previous range on 0 to 1/4 per cent). The marked divergence in monetary policy stances between the ECB and the US Federal Reserve contributed to sustained US$ strength in 2015. Global Economic Outlook Available data suggests global real GDP growth slowed materially in the final quarter of 2015. There is also little to suggest a sustained robust upswing is likely anytime soon amidst constrained productivity, disappointing global trade activity and fixed investment levels, tighter financial sector regulation, geo-political tension and the credit overhang in a number of EM economies. Also, the collapse in oil prices is expected to continue placing severe downward pressure on income growth, purchasing power and government revenue streams amongst oil producers. In large developed economies, quantitative easing may have stabilised economies, but has not managed to lift trend growth rates. Rather, economic growth has persistently been lower than expected in recent years. In essence, structural economic reform is required to lift trend growth, notably in Europe. China, the world’s largest commodity importer is likely to remain a focal point in the year ahead. Although expansionary monetary and fiscal policy may underpin real economic activity for some time, China’s long-term real GDP growth prospects have weakened. The country has over-invested and productivity growth is slowing, given diminishing returns on investment as more and more capital stock has been added per worker. Ultimately, an adjustment appears likely through a decline in the ratio of fixed investment to GDP. Core inflation rates in developed economies are low and stable, while inflation expectations are well contained. Given the collapse in oil prices and constrained real economic activity, inflation is expected to remain relatively low, given some notable exceptions mainly in EM economies. Indeed, sustained low inflation prompted the ECB, in early January 2016, to signal its intention of easing monetary policy further. In the same month, the Bank of Japan, which remains determined to push inflation up to 2 per cent, shifted to negative interest rates, by applying a -0.1 per cent interest rate on the portion of reserves held in current accounts by financial institutions at the Bank over and above reserves held due to policy requirements or policy action. It also indicated further decreases in this interest rate would be implemented if necessary. In contrast the Bank of England is expected to commence an interest rate hiking cycle in 2016, while the US Federal Reserve is also expected to continue increasing its policy rate. To date, the message from the US Federal Open Market Committee (“FOMC”) has been relatively straightforward, arguing that a falling unemployment rate may lift wages and ultimately inflation. This is a debatable point. Admittedly, the non-farm payrolls data has remained firm and the unemployment rate has declined meaningfully. And, although inflation is expected to remain low in the near term, the FOMC does project an increase in inflation over the medium to long-term, which appears reasonable considering that the favourable impact of lower commodity prices is likely to fade at some point. However, the recent softening in real economic activity may give the US Federal Reserve pause for thought. In any event, the FOMC has indicated that further increases in the federal funds rate are likely to be implemented at a gradual rate, while also expecting the federal funds rate to remain below its expected long-term level “for some time”. This suggests a mild US interest rate hiking cycle. On balance, it appears as if we can expect “more of the same” in 2016 as global nominal growth remains modest (with risk seemingly skewed to the downside) and real interest rates remaining low. 15 SANLAM GLOBAL FUNDS PLC ECONOMIC & MARKET REVIEW (CONTINUED) for the year ended 31 December 2015 Market Review The first quarter of 2015 continued with the oil theme from the end of 2014, which saw the oil price decline further, however this appeared to find a bottom around $50 a barrel, and has subsequently seen a slight drift up in price. The consequence of this fall in the oil price has been that US onshore shale gas rigs have started to shut down, and this is a major factor in closing the global over supply of oil, which is now estimated to be less than 1% excess, hence equilibrium between supply and demand is now much closer to being achieved. January also saw markets focus on the Greek elections and, while there was initial concern about Syriza’s victory and their rhetoric, in practice, the Greek situation has meant there is little room for them to negotiate with the Troika, and so Syriza’s stance has been somewhat symbolic for the Greek electorate. That said the importance of Greece and their potential exit from the Eurozone has become increasingly less of an issue, as has the potential contagion effects from that for the rest of the Eurozone. Additionally issues during the first quarter, where the harshness of the US winter, which will impact US GDP, and consequently the timing of the US Federal Reserve’s interest rate hike. There were also concerns about the slowdown of the Chinese economy, and currency movements were also a theme, most noticeably focused on the Swiss franc, which in turn was in advance of the European Central Bank announcing its own quantitative easing program. The second quarter of 2015 really saw the market focus on four main things. Firstly, the oil price, which had been a theme from recent quarters, appears to have stabilised and moved north of $60 a barrel, only to drift below that post quarter-end. Secondly, and perhaps most importantly, the market continues to anticipate when the US Federal Reserve will raise interest rates, and for the majority of the quarter it looked like the first rise would come in September 2015, the likelihood of this continues to be pushed back and so December 2015 could turn out to be the month when the first interest rate rise is implemented. However, the market continues to be uncertain as to when this first hike will come, and this remains a point of discussion and uncertainty. Thirdly, as the quarter progressed the issues around Greece gained increased attention, which has significantly dented current market confidence and was a material contributor to the market declines seen in June. The snap referendum in the first weekend of July, and subsequent “No” vote – a rejection of further austerity, at the time of writing, has failed to resolve the deadlock, though ultimately a resolution and agreement between both sides remains possible. Finally, and perhaps less obvious to many is that there have been significant gyrations in the domestic Chinese equity market. These events have led Chinese authorities to recently announce some measures to help support the market, to try and manage and contain any effects to the wider Chinese economy and domestic sentiment. It remains unclear whether these measures will be successful and what the impact on the Chinese economy will be. The third quarter of 2015 has been a difficult period for most investors with volatility and uncertainty spreading throughout global markets. Identifying the exact trigger for this is difficult, but the longevity of the equity bull market was almost certain to suffer a setback at some point, and this last quarter has definitely witnessed that. Clearly the issues within the domestic Chinese equity market, which were a significant contributing factor to the Chinese managing a devaluation in their currency early in the quarter was a significant event, and subsequently investors’ concerns have grown. China is a significant contributor to the global economy, but perhaps even more importantly to the global economic growth rate. With early signs of a slowdown in China the market became increasingly bearish and moved into a risk averse outlook. The other major event during the quarter was actually one that did not happen, and that was in September when the US Federal Reserve decided not to raise interest rates, which would have been the initiation of their formal interest rate tightening cycle. Even in advance of the announcement, the market was sure it was a close call, but many commentators now think that an opportunity has been missed by the Federal Reserve, and that with interest rates so low there are stored up risks building for the future. From the Federal Reserve’s own perspective they continued to see risks to the downside and a lack of inflationary pressures to justify any move. The ongoing saga of when US interest rates will increase has now been extended once again. Another event during the period was the escalation of geopolitical events in the Middle East, which has also not helped investor confidence during the quarter. 16 SANLAM GLOBAL FUNDS PLC ECONOMIC & MARKET REVIEW (CONTINUED) for the year ended 31 December 2015 Market Review (continued) The fourth quarter of 2015 would have appeared to be an easier quarter for investors, if one were to look at the direction of equity markets. However, the quarter was a challenging one. The global economic picture that started to soften during the third quarter continued to weaken into the fourth quarter. This has led certain investors to identify May 2015 as the beginning of a bear market. This has created a bearish sentiment in the market which has been a major factor influencing the market’s view of where to invest. The apparent declining level of Chinese economic activity has remained an issue, and one that has attracted increasing concern. The quarter will probably be remembered though as being when the US Federal Reserve finally raised interest rates. In December the US Federal Reserve raised interest rates by 0.25% to 0.50%. This was the first US Federal Reserve interest rate rise since 2006. Another major factor during the quarter was the further decline in the oil price, which appeared to have very broadly stabilised around the $50 a barrel level, decreased further in the period. This took the oil price well below $40 and on its way towards $30. The quarter saw some mild rises in volatility, all of which reflected the markets increased nervousness. Equity Market Review For the first quarter of 2015, global equity markets as measured by the MSCI World Index, rose 2.31%. The quarter proved challenging with intra-quarter movements once again providing some meaningful differences. January was a volatile month which saw markets continuing the fall from December with an aggressive fall in the first week of the quarter, this reversed somewhat during the rest of January and so the month ended with a return of -1.81%. The recapture of the initial losses in the quarter continued strongly in February with a very strong and consistent month, resulting in a return of 5.86%. March was in many regards a repeat of January where markets started off poorly dropping roughly -3.4%, followed by a strong recovery into the third week of the month recouping all the losses month to date. During the final week of March markets turned down once again and ended the month -1.57% behind. Overall it was a strong first quarter for most regions with the only exception being North America which was up only 0.76%. Japan led the regions with a very strong quarterly return of 10.21%, this was at least partly due to tailwinds of the Japanese Government Pension Investment Fund’s move into stocks, an expectation of wage increases and some improvement in corporate performance. Europe also experienced a strong quarter with new market optimism in the region which can largely be attributed to the start in quantitative easing, resulting in a rise of 3.45%. Emerging Markets underperformed Developed Markets for the quarter with a return of 2.24%, although the two effectively performed in line with each other. While the oil price has recovered marginally, the Energy sector continued on its decline and returned -3.97% for the quarter after significant declines in the last six months of 2014. The only other sector to produce a negative return over a strong quarter in world markets was Utilities that returned -5.12%, which had been one of the best performing sectors in 2014. The strongest performing sector for the quarter was Health Care which returned 8.29%, followed by Consumer Discretionary which returned 5.83%. Consumer Staples, Industrials, Information Technology, Materials and Telecommunication Services all returned in the region of 2% over the quarter. Of the positive returning sectors Financials was the poorest performing sector with a return of only 0.75%. For the second quarter, global equity markets as measured by the MSCI World Index, rose 0.31%. The market moved around quite a bit in April, but was on a general upward trend, ending up in a 2.35% gain for the month. May started more cautiously, but still resulted in the market drifting upwards by 0.34% for the month. June, even from the start saw the market mood become more pessimistic, and despite a bounce in the middle of the month, the concerns towards the end of the month overwhelmed everything leading to a decline of -2.35%, and thus resulting in the broadly flat quarter. To the end of June, global equity markets were then up by around 2.6%. 17 SANLAM GLOBAL FUNDS PLC ECONOMIC & MARKET REVIEW (CONTINUED) for the year ended 31 December 2015 Equity Market Review (continued) Looking at the regional equity markets, Japan once again led the way rising by over 3% for the quarter. Meanwhile Europe slightly out-performed North America with returns of 0.36% and 0.11% respectively. The Pacific excluding Japan was the material laggard with a decline of -2.48% over the period. Emerging Markets out-performed this region and both Europe and North America, with a return of 0.69%, and consequently out-performed Developed Markets for the quarter. On a year-to-date basis Japan has risen almost 14%, while Europe is up nearly 4%, and North America and Pacific excluding Japan are up, but each by less than 1%; Emerging Markets are under-performing Developed Markets by about -1% to the end of June. At a sector level only four of the ten sectors produced positive returns for the quarter. Telecommunication Services led the way with a rise of 3.40%, while Financials gained 1.63%, and Health Care and Consumer Discretionary rose 1.52% and 1.12% respectively. Of the declining sectors Information Technology was the least poor, with a fall of only -0.39%, while Materials and Consumer Staples declined by less than -1%. Industrials fell by -1.09%, and Energy by -1.15%, while Utilities were the weakest global sector falling by -2.92%. Year-to-date Health Care is the best performing sector rising almost 10%, while Utilities is the weakest sector declining nearly -8%. The Energy sector is the only other sector with a negative absolute decline in 2015, with a fall of -5.08%. For the third quarter, global equity markets as measured by the MSCI World Index, fell -8.45%. The market moved moderately upwards in July, but as fears started to grow the market suffered a set-back in the second-half of July, but one from which it recovered somewhat before month-end. However, in August with the negative backdrop and investor caution becoming increasingly prevalent the market moved sideways before selling off sharply mid-month, which saw the VIX index, a measure of volatility, spike above 40 for the first time since 2011 – it has barely exceeded 25 since such time. August saw markets decline over -6.6% and was the weakest month for global equities since May 2012. September continued in much the same vain as August, but not quite as aggressively, and so equity markets sold-off by almost -3.7%. Looking at the regional equity markets, the MSCI Pacific excluding Japan was the weakest performer in the quarter declining by nearly -16%. This was directly related to the contagion effects from the Chinese domestic market. Japan was the next weakest region declining by -11.8%, while Europe decreased -8.7% and North America was the most resilient at -7.3%. With the risk-off environment the quarter also saw Emerging Markets sell-off materially with a decline of -17.9%. This meant that they under-performed Developed Markets materially for the period, however Emerging Markets actually out-performed marginally in the month of September. At a sector level the defensive nature of the quarter was clearly evident. The Utilities sector was the best performing sector, and the only one to produce a positive absolute return of 0.1%. This was followed by Consumer Staples which declined -1.14%. Then there was a significant gap to Information Technology, which was the third best performing sector, with a return of -5.1%. Consumer Discretionary and Telecommunication Services were the other two sectors to out-perform the wider market. The weakest sector was Materials falling -19.6%, followed by Energy at -18.1%, both of which suffered from the sell-off in underlying commodities. Financials was the third weakest sector falling -9.5%, while Health Care with a decline of -9.4% was the clear exception to the defensive nature of the quarter. For the fourth quarter, global equity markets as measured by the MSCI World Index, rebounded strongly after the weak, or rather dismal as some might put it, third quarter; the index rose 5.50%. The strong performance can be quite safely called a rebound in that the positive performance was only due to the month of October where the index rose 7.92%. The subsequent months of November and December saw markets capitulating again with returns of -0.50% and -1.76% respectively. 2015 proved to be a volatile year with global growth and a Chinese slowdown at the forefront of concerns. For the calendar year the index returned -0.87% - hence equities effectively delivered a flat return for 2015. 18 SANLAM GLOBAL FUNDS PLC ECONOMIC & MARKET REVIEW (CONTINUED) for the year ended 31 December 2015 Equity Market Review (continued) Looking at the regional equity markets, further evidence of the rebound from the third quarter can be found, with the MSCI Pacific excluding Japan, which was the weakest market of the third quarter, being the second strongest market of the fourth quarter, with a rise of 8.29%. Japan was the leading market for the quarter with a return of 9.34%. North America out-performed the global equity market slightly, and Europe was the clear laggard producing a return just shy of 2.5%. However, Emerging Markets were weaker still, although they did manage to product a positive return for the quarter, although this was not even 1%. For 2015 as a whole Japan was the best performing market rising over 9.5%, while the other regional markets posted negative returns. Emerging Markets declined almost -15% in 2015. For the fourth quarter, at a sector level Information Technology led the way with a rise of 8.85%. This was followed by Health Care, Industrials and Telecommunication Services. Energy was the weakest sector for the quarter, and the only sector to produce an absolute decline, of not quite -1%. Utilities were the second weakest sector. Despite these sector performances, which appear to indicate a more positive bias, the underlying tone of the market was focused on the defensive areas and those were what drove the market higher. For 2015 as a whole Health Care was the best performing sector rising 6.60%, while Consumer Staples rose 6.35%. Most of the sectors produced positive returns for 2015, but Energy was the major faller with a decline of nearly -23%. Materials also declined substantially with a fall of over -15%, while Utilities fell nearly -7%. Financials and Industrials also both produced negative absolute returns, but significantly more moderate ones. Fixed Income Market Review Global bond markets continued with yet another difficult quarter in the first quarter of 2015. For the quarter global bond markets, as measured by the Barclays Capital Global Aggregate Index, declined by -1.92%. The market produced negative returns in all three months of the quarter. While January was fairly muted with a return of -0.16%, February and March was significantly worse with returns of -0.81% and -0.96% respectively. Non-sovereign markets, while still disappointing, performed somewhat better than the overall aggregate market, albeit with a more volatile return profile for the period, with the Barclays Capital Global Aggregate Corporate Index, producing a return of -1.18% for the quarter. Corporate bonds out-performed the wider bond market in January and February, but were slightly behind in March. The primary issues facing bond investors over the quarter where the timing of the US Federal Reserve’s rise in interest rates, which continues to appear to slip, with some investors continuing to doubt that there will be a rise in 2015. There remains a fine balancing act, and the strength of the US dollar has clearly helped apply some gentle braking to the US economy. The European Central Bank’s quantitative easing announcement had been well flagged and hence anticipated in concept by investors, although the fine details of the program were unknown to the announcement. The European Central Bank continues to face a difficult environment and the threat of persistent deflation, which is one of the major reasons why it has embarked on this quantitative easing program. Whilst it is very early days, the raw initial signs are positive in that Eurozone economic activity looks like it is starting to materially improve. It was a volatile second quarter for global bonds, and there were significant moves, most notably in the German 10-year bund, which saw yields back-up materially from extremely low levels: at their low these reached 7 basis points, but backed up to just shy of 100 basis points during the quarter, and ended the period at around 76 basis points. With this type of movement, it was unsurprising that global bond markets, as measured by the Barclays Capital Global Aggregate Index, declined by -1.18% for the quarter – the fourth consecutive quarterly decline. Global bond markets produced a positive return in April with a rise of just over 1%, but this was more than wiped out in May with a decline of -1.79%. In June markets once again declined, but by a more moderate -0.44%. As a result of these movements global bond markets have fallen by more than -3% in 2015 so far, and have declined by more than -7% in the last twelve months. 19 SANLAM GLOBAL FUNDS PLC ECONOMIC & MARKET REVIEW (CONTINUED) for the year ended 31 December 2015 Fixed Income Market Review (continued) Turning to corporate bonds, the Barclays Capital Global Aggregate Corporate Index returned -1.55% for the second quarter, which like the wider market saw a positive return in April, followed by declines in May and June, although the extent of the fall in these two months was much more similar at around -1.15%. Bond investors remain focused upon the timing of the US Federal Reserve’s first interest rate hike, and quantitative easing by the European Central Bank and Bank of Japan. The Chinese Central Bank has also continued to ease during the quarter with two 0.25% interest rate cuts, with one in May and one in late June. This leaves the Chinese deposit rate at 2% at the end of the period. Given the risk-off nature of the third quarter, the period saw global bond markets produce a positive absolute return for the first time since the second quarter of 2014, and hence this was the best quarter for bonds since then. For the quarter global bond markets, as measured by the Barclays Capital Global Aggregate Index, rose by 0.85%. The quarter also saw bonds produce positive absolute returns in all three months, albeit moderate rises of 0.2% and 0.1% in July and August respectively, while September saw a 0.5% gain. The US 10-year Treasury started the period with a yield around 2.35%, although this fell relatively smoothly during the quarter to end the period at around 2.04%. This remains well above the 2015 lows of around 1.64% seen around the end of January. In the corporate bond market, the Barclays Capital Global Aggregate Corporate Index returned -0.05% for the third quarter, which reflected the more risk-off environment. Corporate bonds produced a positive return in July, and a flat return in September, but in August as concerns were rapidly escalating they soldoff and declined by -0.5% for the month. The sell-off was even more pronounced in the high yield segments of the bond market as investors took flight to move to more protected areas of the overall bond market. During the fourth quarter global bond markets declined -0.92%, which suggested that the positive return in the third quarter was potentially an exception to the pattern of negative absolute returns. The global bond market rose very modestly during October, but then fell by nearly -1.7% in November, before regaining some of that loss in December, but not nearly enough to return to positive territory. For 2015 as a whole, global bond markets declined by over -3%, thus indicating that despite global equity markets mild negative absolute return they still out-performed global bond markets. With the US Federal Reserve’s interest rate tightening cycle underway investors are now increasingly cautious about the bond market. In the corporate bond market, the Barclays Capital Global Aggregate Corporate Index returned -0.82% for the fourth quarter. This meant that it marginally out-performed the wider global bond markets, but at that same time could not avoid the negative sentiment around the bond market in general. For 2015, corporate bonds declined by almost -3.6%, and therefore they under-performed the broader market. 20 SANLAM GLOBAL FUNDS PLC ANALYTICS INTERNATIONAL FLEXIBLE FUND Investment Objective The investment objective of Analytics International Flexible Fund (the “Fund”) is to provide long-term capital growth by diversifying investments across various asset classes providing the opportunity for real capital growth. The Fund will not have any particular geographic or sectoral focus and intends to invest principally in transferable securities in the form of cash and/or cash equivalents, global equities, real estate investment trusts, global bonds, and global equity linked securities which are listed on Recognised Markets. Fund Performance 10% 8% 6% 4% 2% 0% -2% -4% -6% -8% -10% 1st Qtr 2015 2nd Qtr 2015 3rd Qtr 2015 4th Qtr 2015 12 months Inception Fund USD-terms 0.27% 1.16% -5.74% 4.20% -0.38% 1.64% Benchmark 0.59% -0.27% -5.11% 2.70% -2.32% 4.19% Excess return -0.33% 1.43% -0.63% 1.51% 1.94% -2.55% Note: The Fund benchmark is 60% MSCI All Country World/40% Citigroup WGBI. Performance figures longer than 12 months are annualised. Figures are quoted gross of Investment Manager and AIFM fees. The Fund was able to deliver pleasing alpha across 2015 at 1.94%, mainly due to the second and fourth quarter returns strongly outperforming the benchmark. In these periods, the Fund produced returns of 1.16% and 4.20% respectively. The fourth quarter was characterised by a rebound in equity and listed property markets which offset the negative returns that continued in global government bond markets. The Fund produced a strong return over the quarter of 4.20% and in so doing managed also to deliver a return that was well in excess of the benchmark return of 2.70%. Fund Outlook Global asset classes in general provided investors with very little in terms of returns over the calendar year of 2015. The expected divergence of monetary policy between the US and the rest of the globe materialised in December when the US Federal Reserve finally announced the long-awaited rise in their benchmark interest rate. Commodity markets in aggregate continued their downward trend, with the price of Brent Crude oil being particularly hard hit. Emerging Market currencies also took a beating over the course of the year in the face of the stronger US dollar and Emerging Market equities in general had a poor year. Further uncertainty was added to the global investment arena when the Chinese authorities implemented a policy of currency devaluation that threatens the already fragile Emerging Markets. 21 SANLAM GLOBAL FUNDS PLC ANALYTICS INTERNATIONAL FLEXIBLE FUND (CONTINUED) Fund Outlook (continued) The outlook for 2016 remains clouded at best with questions still being asked about the impact of lifting oil sanctions against Iran on the oil market. The path of US interest rates will also lead to currency market volatility and further devaluation moves by the Chinese will just increase this volatility. Very low yields on investment grade bonds and the likelihood of further increases in US interest rates over the course of 2016 means that the Fund will continue to favour equity exposure over bonds. The Fund will exit the energy sector during the first quarter of 2016 and the equity exposure will be focused on developed market companies. The intention is also to include listed property exposure in the Fund. Investment Managers Canaccord Genuity Wealth (International) Limited Investec Asset Management Limited 22 SANLAM GLOBAL FUNDS PLC SANLAM GLOBAL BALANCED FUND Investment Objective Sanlam Global Balanced Fund (the “Fund”) aims to provide above average long-term capital growth. Fund Performance 10% 8% 6% 4% 2% 0% -2% -4% -6% -8% -10% 1st Qtr 2015 2nd Qtr 2015 3rd Qtr 2015 4th Qtr 2015 12 Months Inception Fund USD-terms 0.78% -0.30% -6.02% 3.71% -2.07% 3.76% Benchmark 0.86% -0.20% -5.22% 3.28% -1.47% 4.26% Excess return -0.09% -0.10% -0.80% 0.44% -0.60% -0.49% Note: The Fund benchmark is 65% MSCI World/35% Barclays Capital Global Aggregate Bond. Performance figures longer than 12 months are annualised. Figures are quoted gross of Investment Manager and AIFM fees. 2015 was a disappointing year for the Fund on both an absolute and relative basis. The Fund returned -2.07% for the calendar year and under-performed its benchmark (65% MSCI World Index/35% Barclays Capital Global Aggregate Index), which returned -1.47%, by -0.60%. On a quarterly basis, the Fund underperformed over the first three quarterly periods by -0.09%, -0.10% and -0.80% respectively, while the benchmark returned 0.86%, -0.20% and -5.22%. The fourth quarter was the strongest period for the market, and could be seen as a bounce back after a poor third quarter, where the Fund’s index returned 3.28%. The Fund outperformed during this period with a relative return of +0.44%. The Fund now lags its benchmark by -0.49% since inception while producing a positive absolute return of 3.76%. Fund Outlook Going into 2016 there is a lot of negative sentiment in global markets, much of it due to Chinese slowdown concerns, a very low oil price compared to recent years and softer economic data. Weakness in economic growth is a common theme recently. This should perhaps not be seen as a surprise since the current economic expansion is one of the longest in history. If we are to see gains in risky assets, the business cycle will have to continue showing increases in revenue. A headwind is, of course, China and its deceleration. The official GDP number out of China is 6.9% for 2015, whereas many market participants believe in reality the rate of growth is as low as around 4%. The slowdown is also coupled with an economy that is turning towards a consumer driven one with pressure, therefore, on industrials, commodities and emerging markets to name a few. The US is grinding ahead slowly while the Eurozone is in a weak recovery mode, although it is perhaps the region with the most tailwinds given QE and the weak Euro of late. Monetary policy has dominated the investment world since the global financial crisis and we expect this to continue into 2016. While the Fed has started raising interest rates in December of 2015, we expect rates to remain at historical lows - as the ex-Fed Governor Ben Bernanke remarked in recent years that there will be no rate normalization during his lifetime. The market is currently pricing in about half of the proclaimed rate hikes by the Fed, which brings the level to 100bps. If anything is sure about 2016, we are most likely to see a continuation of volatile and uncertain markets. Investment Manager Sanlam FOUR Investments UK Limited 23 SANLAM GLOBAL FUNDS PLC SANLAM GLOBAL BEST IDEAS FEEDER FUND Investment Objective Sanlam Global Best Ideas Feeder Fund (the "Fund") invests substantially all of its assets in Sanlam Global Best Ideas Fund (the "Master Fund"). The investment objective of the Master Fund is to provide above average long-term capital growth by investing primarily in global equities which the Investment Manager has identified as being undervalued and as offering above average growth potential. Fund Performance 10% 8% 6% 4% 2% 0% -2% -4% -6% -8% -10% 1st Qtr 2015 2nd Qtr 2015 3rd Qtr 2015 4th Qtr 2015 12 Months Inception Fund USD-terms -1.03% 0.52% -8.46% 4.16% -5.15% 6.16% Benchmark 2.31% 0.31% -8.45% 5.50% -0.87% 6.31% Excess return -3.34% 0.21% -0.01% -1.34% -4.28% -0.15% Note: The Fund benchmark is the MSCI World Index. Performance figures longer than 12 months are annualised. Figures are quoted gross of Investment Manager and AIFM fees. Global equity markets recovered some of their earlier losses during the last quarter of 2015, despite the fact that many of the issues that are routinely trotted out as reasons for periodic bouts of poor performance remain unresolved. The US Federal Reserve finally put paid to the “will they or won’t they” (raise interest rates) speculation by raising their benchmark rate by 25bp in December. This was the first interest rate rise in the US since mid-2006 and comes after almost seven years of close to zero percent interest rates. Markets initially appeared to be quite sanguine about this development, but more recently appear progressively more uncertain about the consequences. The Fed’s action was taken in response to data that confirmed that a sustainable economic recovery has taken root in the US and is appropriate to their domestic situation; however, from the perspective of most of the rest of the world, it is ill-timed and is expected to exacerbate the pressure already being exerted on developing economies. The focus of speculation is now expected to move to prognostications about the incidence and pace of future increases. For the year, the Fund returned -5.15%, while the benchmark MSCI World Index ended down 0.87%. By far the largest part of the Fund’s underperformance came from the IT sector. In a period characterised by a small number of spectacular winners, notably in speculative Information Technology “disrupters” (the loftily valued so-called “FANGs” - Facebook, Amazon, Netflix and Google - which all returned in excess of 35% in 2015 - with Netflix at 134% and Amazon 118%), value-oriented investors were rarely on the front foot. Forgotten IT stalwarts such as Oracle (3% of the Fund) fell 18%. Fund performance was not helped by holdings in Hewlett Packard which gave back all of its considerable 2014 gains, despite a hoped for value unlock in the form of a corporate split into two entities, nor by an ill-timed purchase of Apple. These sector-specific headwinds were somewhat mitigated by continued exposure to Microsoft, which returned 22% for the year. 24 SANLAM GLOBAL FUNDS PLC SANLAM GLOBAL BEST IDEAS FEEDER FUND (CONTINUED) Fund Performance (continued) The most notable sector contribution to relative performance came from Energy, where the Fund was both underweight and not exposed to companies most highly geared to the oil price rout (e.g. Kinder Morgan 63%; National Oilwell Varco -47%). Notable share contributors to the Fund’s performance were its holdings in Imperial Tobacco Group (+27%), the homebuilders NVR Inc (+28%) and Taylor Wimpey (+42% since purchase), and the US insurer AIG (+12%). Major detractors outside of IT were Indonesian financier Adira Dinamika (-54%), Potash Corporation (-36%; sold during the year) and Wal-Mart Stores (27%). Fund Outlook Whilst the market outlook for 2016 remains uncertain, based on current consensus expectations the Fund offers a significantly more attractive valuation (fwd P/E: 16.1x vs. 18.1x and P/NAV: 1.6x vs. 2.1x) than the overall market, while producing a similar return (ROE: 17.3% vs. 17.4%). Among other currently underappreciated attributes, we believe that this positions the Fund well for the future. Investment Manager Sanlam Investment Management (Pty) Limited 25 SANLAM GLOBAL FUNDS PLC SANLAM GLOBAL EQUITY FUND Investment Objective Sanlam Global Equity Fund (the “Fund”) aims to provide above average long-term capital growth. Fund Performance 8% 6% 4% 2% 0% -2% -4% -6% -8% -10% 1st Qtr 2015 2nd Qtr 2015 3rd Qtr 2015 4th Qtr 2015 12 Months Inception Fund USD-terms 2.03% 1.16% -7.77% 5.82% 0.73% 4.79% Benchmark 2.31% 0.31% -8.45% 5.50% -0.87% 4.89% Excess return -0.28% 0.85% 0.67% 0.32% 1.60% -0.09% Note: The Fund benchmark is the MSCI World Index. Performance figures longer than 12 months are annualised. Figures are quoted gross of Investment Manager and AIFM fees After a disappointing 2014, the Fund produced a better 2015, outperforming its benchmark in all quarters barring the first. The Fund’s benchmark, the MSCI World Index, produced a return of -0.87% while the Fund rose by 0.73%, hence the Fund outperformed by +1.60%. The markets were volatile throughout 2015 with quarterly returns of 2.31%, 0.31%, -8.45% and 5.50% respectively. The Fund underperformed in the first quarter with a relative return of -0.28%. Post the first quarter, the Fund outperformed in both up and down markets with relative returns of +0.85%, +0.67% and +0.32%. Since inception, the Fund remains slightly behind its index with an annualised relative return of -0.09%. Fund Outlook Going into 2016 there is a lot of negative sentiment in global markets, much of it due to Chinese slowdown concerns, a very low oil price compared to recent years and softer economic data such as the US and Chinese industrial production. Deflationary pressures also remain a concern. Weakness in economic growth is a common theme. This should perhaps not be seen as a surprise since the current economic expansion is one of the longest in history. If we are to see gains in risky assets, the business cycle will have to continue with increases in revenue. A headwind is, of course, China and its deceleration. The official GDP number out of China is 6.9% for 2015, whereas many market participants believe in reality the rate of growth is as low as around 4%. The slowdown is also coupled with an economy that is turning towards a consumer driven one with pressure, therefore, on industrials and commodities and emerging markets to name a few. The US is grinding ahead slowly while the Eurozone is in a weak recovery mode, although it is perhaps the region with the most tailwinds given the QE and weak Euro of late. Monetary policy has dominated the investment world since the global financial crisis, we expect this to continue into 2016. Investment Managers Sanlam FOUR Investments UK Limited Sanlam Investment Management (Pty) Limited 26 SANLAM GLOBAL FUNDS PLC SANLAM EURO LIQUIDITY FUND Investment Objective The investment objective of Sanlam Euro Liquidity Fund (the “Fund”) is to provide a high degree of safety of principal together with an investment return exceeding that available from cash deposits in Euro. The Fund pursues its investment objective primarily by investing all of its assets in some or all of the classes of shares of the Institutional Euro Liquidity Fund, a sub-fund of Institutional Cash Series plc (an Irish UCITS open-ended umbrella investment company with variable capital) which, in the opinion of the Investment Manager, will enable the Fund to achieve its investment objective. Fund Performance 0.4% 0.2% 0.0% -0.2% -0.4% -0.6% -0.8% 1st Qtr 2015 2nd Qtr 2015 3rd Qtr 2015 4th Qtr 2015 12 Months Inception Fund EUR-terms -0.17% -0.20% -0.21% 0.09% -0.49% 0.19% Benchmark -0.05% -0.06% -0.07% -0.08% -0.26% 0.23% Excess return -0.12% -0.13% -0.14% 0.17% -0.23% -0.04% Note: The Fund benchmark is 7 Day LIBID Rate (Euro). Performance figures longer than 12 months are annualised. Figures are quoted gross of Investment Manager and AIFM fees. For 2015, the Fund returned -0.49%, while its Benchmark, 7 Day Euro LIBID, produced a return of -0.26%, hence the Fund underperformed its benchmark by -0.23% over the year. Performance continues to be disappointing as the Fund failed to produce a positive absolute return. That being said, the trend of returns saw a change of direction in the fourth quarter, which was due to technical factors given the Fund’s small size; this led to positive returns for the Fund over the fourth quarter. The relative returns for the Fund over the four quarters were -0.12%, -0.13%, -0.14% and +0.17%. Given the Fund’s performance in 2015, the Fund is now behind the benchmark since inception with an annualised relative return of -0.04%, while in absolute terms the Fund has returned 0.19% since inception. Fund Outlook Going into 2016 there is a lot of negative sentiment in global markets, much of it due to Chinese slowdown concerns, a very low oil price compared to recent years and softer economic data. The Fed has at last stepped up to the much awaited rate hike, by hiking 0.25% in December. This confirmed the market expectation of diverging central bank policy. The market is currently pricing in about half of the proclaimed rate hikes for 2016 by the Fed, which will bring the level to 100bps. The Fed’s move to tighten is in contrast to the ECB which are still fully committed to continuing with their QE program uninterrupted to 2017 when they will re-evaluate the program. Mario Draghi has reiterated that they will do whatever is necessary in order to see the region climb away from its woes. We expect rates in the Eurozone to remain at low levels for the foreseeable future, and therefore prospects for Euro cash funds to not improve materially any time soon. Investment Manager Sanlam FOUR Investments UK Limited 27 SANLAM GLOBAL FUNDS PLC SANLAM STERLING LIQUIDITY FUND Investment Objective The investment objective of Sanlam Sterling Liquidity Fund (the “Fund”) is to provide a high degree of safety of principal together with an investment return exceeding that available from cash deposits in Sterling. The Fund pursues its investment objective primarily by investing all of its assets in some or all of the classes of shares of the Institutional Sterling Liquidity Fund, a sub-Fund of Institutional Cash Series plc (an Irish UCITS open-ended umbrella investment company with variable capital) which in the opinion of the Investment Manager will enable the Fund to achieve its investment objective. Fund Performance 1.4% 1.2% 1.0% 0.8% 0.6% 0.4% 0.2% 0.0% -0.2% -0.4% -0.6% -0.8% -1.0% 1st Qtr 2015 2nd Qtr 2015 3rd Qtr 2015 4th Qtr 2015 12 Months Inception Fund GBP-terms -0.51% -0.53% -0.53% 1.28% -0.29% 0.05% Benchmark 0.09% 0.09% 0.09% 0.09% 0.36% 0.45% Excess return -0.60% -0.62% -0.62% 1.19% -0.65% -0.39% Note: The Fund benchmark is 7 Day LIBID Rate (Sterling). Performance figures longer than 12 months are annualised. Figures are quoted gross of Investment Manager and AIFM fees. For 2015, the Fund returned -0.29%, while its benchmark, 7 Day GBP LIBID, produced a return of +0.36%, hence the Fund underperformed its benchmark by -0.65% over the year. Performance continues to be disappointing as the Fund failed to produce a positive absolute return. The first three quarters continued to be poor performers, as was the case in 2014 as well, while the fourth outperformed strongly. The relative returns for the Fund over the four quarters were -0.60%, -0.62%, -0.62% and +1.19%. The Fund’s performance benefitted from some technical issues in the fourth quarter, due to the Fund’s size. Since inception the Fund has returned 0.05% to investors while its benchmark has returned 0.45%, hence the Fund lags its benchmark by -0.39% since inception. Fund Outlook Going into 2016 there is a lot of negative sentiment in global markets, much of it due to Chinese slowdown concerns, a very low oil price compared to recent years and softer economic data. The Fed has at last stepped up to the much awaited rate hike, by hiking 0.25% in December. This confirmed the market expectation of diverging central bank policy. The market is currently pricing in about half of the proclaimed rate hikes for 2016 by the Fed, which will bring the level to 100bps. It was widely expected that the Bank of England would started raising rates roughly six months after the Fed moved; this has shifted out to at least 12 months recently. The change of perception might have something to do with headwinds being anticipated in the UK, at least for sentiment. One of these is the question of a UK “BREXIT” from the European Union later in 2016. Such an exit, we believe, is unlikely, however it looks like it will be a close call and only time will give us the outcome. We expect UK interest rates to remain low for 2016. Investment Manager Sanlam FOUR Investments UK Limited 28 SANLAM GLOBAL FUNDS PLC SANLAM GLOBAL LIQUIDITY FUND Investment Objective Sanlam Global Liquidity Fund (the “Fund”) aims to provide a return consistent with investment in a combination of highly liquid Euro, Sterling and US Dollar Investments. Fund Performance 6% 4% 2% 0% -2% -4% -6% -8% 1st Qtr 2015 2nd Qtr 2015 3rd Qtr 2015 4th Qtr 2015 12 Months Inception Fund USD-terms -5.41% 2.43% -0.53% -1.52% -5.08% 1.01% Benchmark -5.32% 2.41% -0.55% -1.41% -4.92% 1.17% Excess return -0.09% 0.02% 0.01% -0.11% -0.17% -0.16% Note: The Fund benchmark is a composite benchmark (45% US/40% EU/15% GB). Performance figures longer than 12 months are annualised. Figures are quoted gross of Investment Manager and AIFM fees. Cash markets remain a difficult environment for managers in the current economic environment of historically low rates. 2015 was another disappointing year for the Fund, especially in absolute terms. The Fund’s benchmark (45% 7 Day USD LIBID, 40% 7 Day EUR LIBID and 15% 7 Day GBP LIBID) produced a return of -4.92% while the Fund returned -5.08%, hence the Fund underperformed by -0.17% in 2015. The first and fourth quarters negatively detracted from relative performance while the second and third quarters were marginal contributors. The benchmark produced volatile returns during the year, being down -5.32% and up 2.41% in the first and second quarter, for example. The Fund produced relative returns of -0.09%, +0.02%, +0.01% and -0.11% over the respective quarters. Since inception, the Fund has returned an absolute number of 1.01% to investors while the benchmark produced a return of 1.17%. Fund Outlook Going into 2016 there is a lot of negative sentiment in global markets, much of it due to Chinese slowdown concerns, a very low oil price compared to recent years and softer economic data. The Fed has at last stepped up to the much awaited rate hike, by hiking 0.25% in December. This confirmed the market expectation of diverging central bank policy. The market is currently pricing in about half of the proclaimed rate hikes for 2016 by the Fed, which will bring the level to 100bps. However, developed market cash yields are at all-time lows across the globe. Negative absolute rates are also becoming more of a reality in investors’ minds – we are in unprecedented times. The continuing low current level of prevailing yields means that almost all of the Fund’s return is going to be generated from currency movements – this we expect will remain the case for the foreseeable future, barring a miraculous strong recovery across the globe. Investment Manager Sanlam Investment Management (Pty) Limited 29 SANLAM GLOBAL FUNDS PLC SANLAM US DOLLAR LIQUIDITY FUND Investment Objective The investment objective of Sanlam US Dollar Liquidity Fund (the “Fund”) is to provide a high degree of safety of principal together with an investment return exceeding that available from cash deposits in US Dollars. The Fund pursues its investment objective primarily by investing all of its assets in some or all of the classes of shares of the Institutional Dollar Liquidity Fund, a sub-Fund of Institutional Cash Series plc (an Irish UCITS open-ended umbrella investment company with variable capital) which in the opinion of the Investment Manager will enable the Fund to achieve its investment objective. Fund Performance 0.60% 0.50% 0.40% 0.30% 0.20% 0.10% 0.00% -0.10% -0.20% -0.30% 1st Qtr 2015 2nd Qtr 2015 3rd Qtr 2015 4th Qtr 2015 12 Months Inception Fund USD-terms -0.20% -0.24% -0.25% 0.52% -0.16% -0.01% Benchmark 0.00% 0.01% 0.01% 0.02% 0.04% 0.07% Excess return -0.20% -0.24% -0.25% 0.50% -0.19% -0.08% Note: The Fund benchmark is 7 Day LIBID Rate (US Dollar). Performance figures longer than 12 months are annualised Figures are quoted gross of Investment Manager and AIFM fees. For 2015 the Fund declined -0.16% while its benchmark, 7 Day USD LIBID, experienced a marginally positive year returning 0.04%; hence the Fund underperformed its benchmark by -0.19%. It was another difficult year, albeit better than the previous. The virtually flat returns in the cash market remain a disappointment in a difficult environment where investors are struggling to find yield. Quarterly returns for the benchmark can be said to be flat, with a range between 0.00% and 0.02%. The Fund underperformed during the first three quarters with relative returns of -0.20%, -0.24% and -0.25%. During the fourth quarter the Fed raised rates from 0.25% to 0.50%. This change in policy stance was reflected in the Fund’s return where it took advantage of the long awaited hike by producing a more positive absolute return of 0.52%, though a portion of this was also due to technical issues given the Fund’s small size. The Fund’s performance in the fourth quarter did help it claw back much of the year’s underperformance. Since inception, the Fund is behind its benchmark with an annualised relative return of -0.08%. Fund Outlook Going into 2016 there is a lot of negative sentiment in global markets, much of it due to Chinese slowdown concerns, a very low oil price compared to recent years and softer economic data. The Fed has at last stepped up to the much awaited rate hike, by hiking 0.25% in December. This confirmed the market expectation of diverging central bank policy. The market is currently pricing in about half of the proclaimed rate hikes for 2016 by the Fed, which will bring the level to 100bps. The extreme drop in oil during 2015, and the low oil price at roughly $30 a barrel has knock-on effects, one of them being the demise of the petrodollar and an indirect tightening of financial conditions – this is one reason why the Fed might want to revise their hiking plans in 2016. 30 SANLAM GLOBAL FUNDS PLC SANLAM US DOLLAR LIQUIDITY FUND (CONTINUED) Fund Outlook (continued) The falling oil price has also dragged down inflation expectations. If we were to see a significant downturn in economic releases for the US economy in the first six months of 2016 (not that the numbers have been great to start with), the Fed would most probably be revising their interest rate hiking plan. Investment Manager Sanlam FOUR Investments UK Limited 31 SANLAM GLOBAL FUNDS PLC NFB GLOBAL BALANCED FUND OF FUNDS Investment Objective The investment objective of NFB Global Balanced Fund of Funds (the “Fund”) is to provide long-term capital growth by diversifying investments across various asset classes providing the opportunity for real capital growth. The Fund will not have any particular geographic or sectoral focus and intends to invest principally in transferable securities in the form of cash and/or cash equivalents, global equities, real estate investment trusts, global bonds and global equity linked securities which are listed on Recognised Markets. Fund Performance 10% 8% 6% 4% 2% 0% -2% -4% -6% -8% -10% 1st Qtr 2015 2nd Qtr 2015 3rd Qtr 2015 4th Qtr 2015 12 months Inception Fund USD-terms 0.46% -1.88% -5.06% 3.51% -2.77% 3.89% Benchmark 0.03% 1.63% 0.69% 0.13% 2.49% 2.80% Excess return 0.43% -3.51% -5.74% 3.38% -5.26% 1.10% Note: The Fund benchmark is G7 Inflation plus 2%. Performance figures longer than 12 months are annualised. Figures are quoted gross of Investment Manager and AIFM fees. The Fund is now two years old and, since then, it has produced an annualised return of 3.89%; just outperforming its benchmark return of 1.10%. This is, however, not the investment horizon of the Fund and therefore performance commentary will only be appropriate after September 2016 when the Fund has a three-year track record (please note that the stated investment horizon is five years). The Fund is down 5.26% over the last year, which is disappointing. The diversification benefits we would expect to protect the Fund in markets like these just has not been there (i.e. we would expect in a falling equity market for the bond, property and flexible income fund exposures to hold up better than they have). Fund Outlook Whilst we would prefer to return positive numbers to our investors, we are not wholly disappointed with the performance of the Fund during the most recent period; 2015 specifically. During this time, the Fund was down close to 3% while certain global equity markets were down between 5% and 10%. The average balanced portfolio that we view as competitors to our investment proposition were down roughly the same and in some instances were worse off during 2015. Current market factors – including, amongst others, the effect of last December’s rate hike by the US Federal Reserve, the ongoing slowdown in Chinese GDP growth and the collapse in the oil price – may create opportunities for NFB Asset Management to increase the Fund’s global equity exposure where we have run lighter than usual exposures (we have allocated the balance of this type of exposure to global property assets). NFB Asset Management remain committed to exploiting these opportunities should they arrive. 32 SANLAM GLOBAL FUNDS PLC NFB GLOBAL BALANCED FUND OF FUNDS (CONTINUED) Fund Outlook (continued) Recently, there has been a change in the currency profile of the Fund (though, we would like to note, not the currency exposure) as we have shifted, wherever we can, from Euro-denominated lines of the ETFs held by the Fund into the equivalent US dollar lines. Investment Manager NFB Asset Management (Pty) Limited 33 SANLAM GLOBAL FUNDS PLC SANLAM BIFM WORLD EQUITY FUND Investment Objective The investment objective of Sanlam BIFM World Equity Fund (the “Fund”) is to provide long-term capital growth. Fund Performance 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% -2.00% -4.00% -6.00% -8.00% -10.00% -12.00% -14.00% 1st Qtr 2015 2nd Qtr 2015 3rd Qtr 2015 4th Qtr 2015 12 Months Inception Fund USD-terms 3.36% 1.16% -12.23% 6.12% -2.62% 0.24% Benchmark 2.31% 0.31% -8.45% 5.50% -0.87% 3.66% Excess return 1.05% 0.85% -3.78% 0.62% -1.75% -3.42% Note: The Fund benchmark is the MSCI World Index. Performance figures longer than 12 months are annualised. Figures are quoted gross of Investment Manager and AIFM fees. The Fund returned -2.62% in USD terms during 2015, underperforming the benchmark MSCI World Index return of -0.87%. Our underweight to US equities and material overweight to European equities impaired the Fund’s relative performance. Our overall underweight to information technology and an overweight exposure to energy sectors detracted from Fund performance. Stock selection, notably in the consumer discretionary and financials sectors, detracted from the Fund’s relative performance. Our emerging markets exposure, notably in China, hurt relative performance as the market traded lower. Our holding in South Korea aided Fund performance, driven by stock selection. Fund Outlook 2016 will be characterised by divergent global economic growth and policy trends. We anticipate that major trends seen in 2015, such as a strong US dollar, weak commodity prices, and persistent emerging market hiccups, will continue in 2016. As the US progresses with normalizing monetary conditions amidst modest economic recovery, investors will contend with the high market volatility. Historically, value tends to outperform in interest rate rising environments. Europe continues to face myriad of risks, including faltering economic growth, peripheral debt crisis, and political instability within the Monetary Union. The region has made significant progress to address fault lines. Whilst we are not yet out of the woods, Europe continues to offer compelling attractive long-term opportunities within global equities for long-term investors. 34 SANLAM GLOBAL FUNDS PLC SANLAM BIFM WORLD EQUITY FUND (CONTINUED) Fund Outlook (continued) Emerging and frontier markets will continue to face major challenges in 2016. Headline valuations continue to be attractive as indicated by trend earnings multiple. It should be noted that emerging markets are not homogenous. We see select opportunities in this diverse market which continues to warrant an overweight exposure. In recent years, the world has witnessed China, Russia and Saudi Arabia exert themselves globally both economically and militarily. International geopolitical instability remains a significant risk in 2016 and beyond. We anticipate continued market volatility in 2016 driven by continued diverged global policies, global economic fragility, geopolitical flare ups, emerging markets and unexpected events. Global equity valuations broadly remain attractive. Investment Managers Franklin Templeton Investment Management Limited Sanlam FOUR Investments UK Limited Schroder Investment Management Limited 35 SANLAM GLOBAL FUNDS PLC SANLAM BIFM GLOBAL FIXED INCOME FUND Investment Objective The investment objective of Sanlam BIFM Global Fixed Income Fund (the “Fund”) is to provide income and capital appreciation over the long-term. The Fund invests in offshore bonds, including both government and corporate bonds, to achieve the Fund’s objective. Fund Performance 2.00% 1.00% 0.00% -1.00% -2.00% -3.00% -4.00% -5.00% 1st Qtr 2015 2nd Qtr 2015 3rd Qtr 2015 4th Qtr 2015 12 Months Inception Fund USD-terms -1.24% -1.12% -0.13% -0.75% -3.20% -1.67% Benchmark -1.92% -1.18% 0.85% -0.92% -3.15% -1.85% Excess return 0.68% 0.06% -0.98% 0.17% -0.05% 0.18% Note: The Fund benchmark is Barclays Capital Global Aggregate Bond Index. Performance figures longer than 12 months are annualised. Figures are quoted gross of Investment Manager and AIFM fees. The Fund returned -3.20% during 2015, marginally underperforming the benchmark return of -3.15%. Stock selection notably detracted from fund performance. Our tactical overweight to global high yield exposure added value to relative performance as it outperformed sovereign bonds. Fund Outlook The US Federal Reserve commenced the much anticipated interest rate hike in December 2015. The Fed policy normalization indicates the strength of the economic recovery and continued improvement in the US employment data. Despite US inflation currently being below the Fed’s objective of 2%, we see scope for it to trend upwards driven by continued economic recovery and rolling of the crude oil price decline. We, therefore, anticipate that yields will trend upwards in the medium-term. Monetary policies of major central banks will continue to diverge driven by the unsynchronized global economic recovery. We continue to favour high yield in the current environment of interest rate rising as yield spreads relative to sovereign bonds remain attractive. Yields remain low at nominal and real levels in major developed capital markets. The world economy grew by 2.7% in the third quarter of 2015. China was still the biggest contributor to world growth, despite its growth rate being below 7%, accounting for 40% of the world growth with the US as the third contributor, behind India’s contribution of 17% of global growth (Economist). Overall, given current market valuations, we continue to expect that, overall, sovereign bond yields will have limited upside from these levels as the economic recovery gathers pace in the US. Global bonds will continue to exhibit a high degree of volatility in the medium-term due to the current environment of financial repression and fiscal policy uncertainty. Investment Manager Sanlam FOUR Investments UK Limited 36 SANLAM GLOBAL FUNDS PLC MPILE GLOBAL EQUITY FUND Investment Objective Mpile Global Equity Fund (the “Fund”) aims to achieve capital appreciation in the long-term by investing primarily in offshore markets. The objective of the Fund is to outperform its benchmark by selecting equity funds that follow value investing principles which seek to capture mispricing opportunities relative to intrinsic values. Fund Performance 10% 8% 6% 4% 2% 0% -2% -4% -6% -8% -10% 1st Qtr 2015 2nd Qtr 2015 3rd Qtr 2015 4th Qtr 2015 12 Months Inception Fund USD-terms -0.14% 0.80% -6.68% 6.88% 0.40% -3.18% Benchmark 2.31% 0.31% -8.45% 5.50% -0.87% -1.96% Excess return -2.45% 0.49% 1.77% 1.38% 1.27% -1.22% Note: The Fund benchmark is the MSCI World Index. Performance figures longer than 12 months are annualised. Figures are quoted gross of Investment Manager and AIFM fees. The Fund outperformed the benchmark, the MSCI World Index, for the full year 2015 returning 0.40% against the benchmark’s return of -0.87%. The year was marked with increased volatility. Global capital markets in the first half of the year posting gains as the European Central Bank announced an extensive quantitative easing programme of 1.5 trillion Euro. However, the momentum was lost with the Greek crisis and later a significant pullback from Chinese stocks which led to an overall decline in global markets as investors feared that the slowing Chinese economy would have a ripple effect on global growth. Hence, the third quarter saw global markets suffer losses. A rebound was witnessed during the fourth quarter as the market adjusted to the previous quarter’s overreaction. Notably, the European and Japanese markets fared well on account of quantitative easing and improving corporate performance. The US dollar appreciated for most of the year reflecting a relatively stable economy with improving employment, consumer spending and housing. However, the stronger dollar presented an impediment to US exports. In terms of individual sector performance, the consumer staples, health care and information technology sectors aided the Fund’s performance. Given the difficult year, these non-cyclical sectors continued to outperform most sectors. Detractors to the Fund’s performance included financials, energy and telecommunications stocks. Oil prices fell to historical lows sending energy stocks tumbling due to declining profitability while financial institutions exposed to the energy sector also came under stress. 37 SANLAM GLOBAL FUNDS PLC MPILE GLOBAL EQUITY FUND (CONTINUED) Fund Outlook The Federal Open Market Committee (“FOMC”) of the US Federal Reserve decided to hike interest rates for the first time since 2008, on the belief that US economic fundamentals, particularly regarding full employment and inflation had reached levels that could withstand a higher rate. Additional rationale for the hike, gleaned from the Governor’s comments, attested to the FOMC’s fear of a lack of sufficient arsenal, should the need arise, were rates to remain at 0%. The Fed had given initial indication of four rate hikes this year though the market expects them to hold off and only increase rates once. In their January meeting, the Fed opted not to raise interest rates amidst market volatility but would continue to monitor the global economy. They also raised concerns on inflation and have lowered their consideration for full employment from an unemployment rate of 5.0% to 4.9%. Looking forward, we anticipate the FOMC will take a prudent approach to rate hikes given the precarious state of global economies and financial markets, with the state of Chinese markets and the Chinese economy a particular concern due to its magnitude and extended interaction with other world economies. We must bear in mind that China has been responsible for at least half of global GDP growth in these recent lean times, so the outlook for that economy will have a strong bearing on worldwide GDP growth. On the capital markets, 2016 has begun on a challenging note for global equities, and further rate hikes could precipitate an extended bear market. At the start of the year, investors, jittery about the state of the Chinese and global economy caused Chinese stock trading to be halted twice in the first week of January. This was after the CSI 300 plunged 7% in 30 minutes and triggered automatic circuit breakers. The S&P500 has fared no better, with a slide since the turn of the year that has seen an 8% drop in value, unprecedented for the start of a new year. Yet even more gloom may materialize, as we believe the equity market may hit a triple headwind of rising interest rates, a strengthening dollar (caused by diverging monetary policy between the US and other major economies), and stalled profitability as global growth remains anaemic. Another major concern is the actual valuations of stocks, with the S&P500 at 17.1, FTSE 100 at 26.8, Nikkei 225 at 18.7, and other developed market indices all high by historic standards. We expect a turbulent 2016 as investors react to mixed-signals economic news from developing and emerging markets. Despite the apparent headwinds, we believe opportunities may still arise from stocks that may be sold below their intrinsic value as selloffs may be driven more by sentiment rather than fundamentals. Additionally, part of the Fund’s defensive strategy is to hold high dividend paying stocks which tends to limit the downside during times of significant volatility. Investment Manager Sanlam FOUR Investments UK Limited 38 SANLAM GLOBAL FUNDS PLC BRACKENHAM GLOBAL BALANCED FUND Investment Objective The Brackenham Global Balanced Fund (the “Fund”) aims to provide capital growth. Fund Performance 10% 8% 6% 4% 2% 0% -2% -4% -6% -8% -10% Fund USD-terms 2nd Qtr 2015 3rd Qtr 2015 4th Qtr 2015 Inception 0.63% -5.74% 3.44% -2.85% Note: The Fund has no benchmark. Figures are quoted gross of Investment Manager and AIFM fees. Since inception (15 March 2015), the Fund’s performance was relatively flat until the downturn in the markets in the third quarter. The return for the fourth quarter was 3.44%. The year-to-date performance was -2.85% (Class A Shares) with the negative performance being due to the market corrections experienced during this period. Fund Outlook The Fund was approved by the South African Financial Services Board in May 2015. Due to the fact that the Fund is still in its first year, and additional investors will be added to the Fund in the short to medium-term, short-term performance is difficult to predict. As new investment is received, the investment managers will look for opportunities to acquire assets at reasonable prices which will assist in providing positive growth during the remainder of the year. For South African investors invested in the Fund, the Rand’s weakness during the course of 2015 has resulted in the Rand performance of their investments being obviously favourable (in Rand terms). Individual performance would depend on entry levels and would have varied significantly due to the Rand’s volatility during the period under review. Investment Manager Brackenham Investments (Proprietary) Limited 39 SANLAM GLOBAL FUNDS PLC APS GLOBAL FLEXIBLE FUND OF FUNDS Investment Objective The investment objective of APS Global Flexible Fund of Funds (the “Fund”) is to provide long-term capital growth by diversifying investments across various asset classes providing the opportunity for real capital growth. The Fund will not have any particular geographic or sectoral focus and intends to invest principally in transferable securities in the form of cash and/or cash equivalents, global equities, real estate investment trusts, global bonds and global equity linked securities which are listed on Recognised Markets. Fund Performance 10% 8% 6% 4% 2% 0% -2% -4% -6% -8% -10% 2nd Qtr 2015 3rd Qtr 2015 4th Qtr 2015 Year to date Inception Fund USD-terms 0.46% -6.40% 4.39% -4.57% -4.57% Benchmark 0.03% -9.34% 5.15% -6.36% -6.36% Excess return 0.43% 2.95% -0.76% 1.80% 1.80% Note: The Fund benchmark is the MSCI World Index Figures are quoted gross of Investment Manager and AIFM fees. The fourth quarter of 2015 was characterised by a rebound in equity and listed property markets that offset the negative returns that continued in global government bond markets. The Fund produced a strong return over the quarter of 4.39% but still trailed the benchmark return of 5.15%. Since inception, however, the Fund has delivered alpha of 1.80% in what have been very challenging global market conditions in which asset class returns have generally been negative. The Fund has only been in existance for 8 months, producing an alpha of 1.80% in that time. Fund Outlook Global asset classes in general provided investors with very little in terms of returns over the calendar year of 2015. The expected divergence of monetary policy between the US and the rest of the globe materialised in December when the US Federal Reserve finally announced the long-awaited rise in their benchmark interest rate. Commodity markets in aggregate continued their downward trend, with the price of Brent Crude oil being particularly hard hit. Emerging Market currencies also took a beating over the course of year in the face of the stronger US dollar and Emerging Market equities in general had a poor year. Further uncertainty was added to the global investment arena when the Chinese authorities implemented a policy of currency devaluation that threatens the already fragile Emerging Markets. The outlook for 2016 remains clouded at best with questions still being asked about the impact of the lifting oil sanctions against Iran on the oil market. The path of US interest rates will also lead to currency market volatility and further devaluation moves by the Chinese will just increase this volatility. 40 SANLAM GLOBAL FUNDS PLC APS GLOBAL FLEXIBLE FUND OF FUNDS (CONTINUED) Fund Outlook (continued) Very low yields on investment grade bonds and the likelihood of further increases in US interest rates over the course of 2016 means that the Fund will continue to favour equity exposure over bonds. The equity exposure in the Fund will continue to favour developed market companies with global operations, well defined brands and well diversified revenue streams. Investment Manager Associated Portfolio Solutions (Pty) Limited 41 SANLAM GLOBAL FUNDS PLC COUNTERPOINT GLOBAL EQUITY FUND Investment Objective The investment objective of Counterpoint Global Equity Fund (the “Fund”) is to provide investors with longterm capital growth. . Fund Performance 10% 8% 6% 4% 2% 0% -2% -4% -6% -8% -10% 3rd Qtr 2015 4th Qtr 2015 Fund USD-terms -5.13% 7.89% Inception 0.80% Benchmark -8.45% 5.50% -5.66% Excess return 3.32% 2.39% 6.46% Note: The Fund benchmark is the MSCI World Index. Figures are quoted gross of Investment Manager and AIFM fees. The Fund was launched on 02 June 2015 which coincided with the global equity market, as measured by the MSCI World Index, being near its all-time historic high point. In absolute terms, the Fund gained in value from inception to the end of December 2015, increasing by 0.80%. However, when considering the performance of the MSCI World Index during the same period, a decline of -5.66%, the Fund's performance has been satisfactory. The Fund’s stock picks have favoured, as its core holdings, global multinationals that are domiciled in the US and Europe. This strategy has largely paid off as it has avoided many problematic outcomes, particularly in the Emerging Markets. In addition, from a top down point of view, the Fund has been defensively positioned, not owning many companies that are dependent on cyclical global growth such as energy and materials. This, taken in combination with sticking to quality businesses that are deemed to be attractively priced, has resulted in the pleasing start to the Fund’s track record. Fund Outlook Looking out into 2016, the scene is set for a volatile year in which the good times for risk assets have crested and basic fundamentals will have to re-assert themselves to gain the confidence of investors. The post-global financial crisis world of easy money and high liquidity has started to come to an end in the largest economy in the world, although it continues in Europe and Japan. Rising corporate bond yields mean that the willingness of corporates to raise cash is lessened at the margin, which will put a damper on investment and especially on the elevated buy-back of shares we have witnessed over the past few years. 42 SANLAM GLOBAL FUNDS PLC COUNTERPOINT GLOBAL EQUITY FUND (CONTINUED) Fund Outlook (continued) Hence, global economic growth, which is struggling to find traction and remains with a higher than usual forecast risk in parts of the world where it is expected to grow (e.g. the US), will regain its importance as a driver of earnings going forward. The bad news is that global growth continues to be downgraded. The latest global economic forecast from the World Bank (January 2016) has once again downgraded global economic growth, since its last projection in June 2015, from 3.3% to 2.9%. Investment Manager Counterpoint Boutique Pty Limited 43 SANLAM GLOBAL FUNDS PLC STATEMENTS OF COMPREHENSIVE INCOME OF THE FUNDS for the year ended 31 December 2015 Analytics International Flexible Fund Sanlam Global Balanced Fund Sanlam Global Best Ideas Feeder Fund Sanlam Global Equity Fund US$ US$ US$ US$ (677,373) (2,671,998) (5,418,308) 12,998,196 1,453,136 1,940 2,314 3,620 783,637 254,305 69,322 210 793 (2,347,368) 591 (5,417,717) 1,725,993 2,422 14,726,611 (634,275) (43,792) (18,742) (9,207) (1,866) (707,882) (992,356) (36,876) (54,378) (11,005) (4,700) (1,099,315) (850,548) (30,831) (36,555) (14,750) (3,803) (936,487) (9,837,918) (201,895) (385,746) (113,411) (48,375) (10,587,345) 75,755 (3,446,683) (6,354,204) 4,139,266 (115,006) 317,254 (27) 1,646,067 (85) 3,556,707 (39,251) (3,129,429) (4,708,164) 7,695,888 Withholding tax (230,361) (2,218) - - Change in net assets attributable to holders of redeemable participating shares (269,612) (3,131,647) (4,708,164) 7,695,888 Note Investment income Net gains/(losses) on financial assets and liabilities fair at fair value through profit or loss – held for trading Income from financial assets at fair value through profit or loss Rebates received Bank interest Other income Income from stock lending Net investment income/(deficit) Operating expenses AIFM and investment management fees Other operating expenses Administration fees Custody fees Directors’ fees Total operating expenses Operating profit/(loss) Finance costs Interest expense Income equalization Profit/(loss) before tax 6 12 17 12 12 45 - SANLAM GLOBAL FUNDS PLC STATEMENTS OF COMPREHENSIVE INCOME OF THE FUNDS (CONTINUED) for the year ended 31 December 2015 Note Investment income Net gains/(losses) on financial assets and liabilities fair at fair value through profit or loss – held for trading Income from financial assets at fair value through profit or loss Rebates received Bank interest Other income Income from stock lending Net investment income/(deficit) Operating expenses AIFM and investment management fees Other operating expenses Administration fees Custody fees Directors’ fees Total operating expenses Operating profit/(loss) Finance costs Interest expense Income equalization Profit/(loss) before tax 6 12 17 12 12 Sanlam Euro Liquidity Fund Sanlam Sterling Liquidity Fund Sanlam Global Liquidity Fund Sanlam US Dollar Liquidity Fund EUR GBP US$ US$ (2,415) 4,466 (504,968) 4,897 529 (1,886) 102 380 384 5,332 667 (504,301) 550 591 6,038 (9,975) (15,938) (3,471) (665) (224) (30,273) (3,088) (9,096) (1,479) (299) (22) (13,984) (29,680) (19,482) (5,714) 18 (256) (55,114) (12,178) (14,247) (4,539) (701) (179) (31,844) (32,159) (8,652) (559,415) (25,806) (2,851) 7,717 4,293 16,216 16,543 (27,293) (4,359) (543,199) (9,263) - - - - (27,293) (4,359) (543,199) (9,263) Withholding tax Change in net assets attributable to holders of redeemable participating shares 46 SANLAM GLOBAL FUNDS PLC STATEMENTS OF COMPREHENSIVE INCOME OF THE FUNDS (CONTINUED) for the year ended 31 December 2015 Sanlam International Multi Asset I Fund Verso Global Flexible Fund NFB Global Balanced Fund of Funds Sanlam BIFM Emerging Markets Equity Fund US$ US$ US$ US$ (172) 787,907 (864,707) 3,025,974 7,901 791 8,520 85,586 928 874,421 294,610 23,306 325 604 (545,862) 471,719 9,722 5,159 3,512,574 (93) (10,317) 2,232 76 7 (8,095) (96,157) (60,678) (2,864) (996) (549) (161,244) (100,348) (25,268) (10,922) (3,773) (779) (141,090) (310,811) (185,690) (10,891) (166,526) (3,125) (677,043) 425 713,177 (686,952) 2,835,531 Finance costs Interest expense Income equalization 5,595 (1,076) (326,648) (35,075) (2,084,551) Profit/(loss) before tax 6,020 385,453 (722,027) 750,980 - (22,052) (640) (45,590) 6,020 363,401 (722,667) 705,390 Note Investment income Net gains/(losses) on financial assets and liabilities fair at fair value through profit or loss – held for trading Income from financial assets at fair value through profit or loss Rebates received Bank interest Other income Income from stock lending Net investment income/(deficit) Operating expenses AIFM and investment management fees Other operating expenses Administration fees Custody fees Directors’ fees Total operating expenses Operating profit/(loss) 6 12 17 12 12 Withholding tax Change in net assets attributable to holders of redeemable participating shares 47 SANLAM GLOBAL FUNDS PLC STATEMENTS OF COMPREHENSIVE INCOME OF THE FUNDS (CONTINUED) for the year ended 31 December 2015 Sanlam BIFM World Equity Fund Sanlam BIFM Global Fixed Income Fund Sanlam BIFM South Africa Inflation Linked Bond Fund Mpile Global Equity Fund US$ US$ US$ US$ 6,876,593 (1,727,675) (1,586,072) 9,724 6,049,287 113,804 19 2,008 13,041,711 80,470 215 2,140 (1,644,850) 272,704 40,575 20,053 (1,252,740) 23,563 90 199 33,576 (3,987,214) (121,282) (130,053) (67,665) (15,663) (4,321,877) (827,262) (45,925) (20,792) (2,223) (1,969) (898,171) (75,857) (44,102) 4,775 (107) (1,561) (116,852) (17,670) (8,030) 412 (363) (25,651) 8,719,834 (2,543,021) (1,369,592) 7,925 (1,300) (2,226,090) 2,027,758 (658,514) (38,620) Profit/(loss) before tax 6,492,444 (515,263) (2,028,106) (30,695) Withholding tax (911,063) - - - 5,581,381 (515,263) (2,028,106) (30,695) Note Investment income Net gains/(losses) on financial assets and liabilities fair at fair value through profit or loss – held for trading Income from financial assets at fair value through profit or loss Rebates received Bank interest Other income Income from stock lending Net investment income/(deficit) Operating expenses AIFM and investment management fees Other operating expenses Administration fees Custody fees Directors’ fees Total operating expenses Operating profit/(loss) Finance costs Interest expense Income equalization 6 12 17 12 12 Change in net assets attributable to holders of redeemable participating shares 48 SANLAM GLOBAL FUNDS PLC STATEMENTS OF COMPREHENSIVE INCOME OF THE FUNDS (CONTINUED) for the year ended 31 December 2015 Note Investment income Net gains/(losses) on financial assets and liabilities fair at fair value through profit or loss – held for trading Income from financial assets at fair value through profit or loss Rebates received Bank interest Other income Income from stock lending Net investment income/(deficit) Operating expenses AIFM and investment management fees Other operating expenses Administration fees Custody fees Directors’ fees Total operating expenses 6 12 17 12 12 Operating profit/(loss) Finance costs Interest expense Income equalization Profit/(loss) before tax Withholding tax Change in net assets attributable to holders of redeemable participating shares 49 Brackenham Global Balanced Fund APS Global Flexible Fund of Funds Counterpoint Global Equity Fund US$ US$ US$ (480,964) (2,179,478) 149,046 200,590 1,021 18 (279,335) 77,578 782 (2,101,118) 66,467 323 1 215,837 (58,706) (21,554) (10,220) (3,347) (393) (94,220) (160,810) (33,023) (10,496) (2,831) (919) (208,079) (84,451) (19,655) (3,802) (1,683) (271) (109,862) (373,555) (2,309,197) 105,975 (20,217) (10,679) (19,470) (393,772) (2,319,876) 86,505 (37,823) - (15,723) (431,595) (2,319,876) 70,782 SANLAM GLOBAL FUNDS PLC STATEMENTS OF COMPREHENSIVE INCOME OF THE FUNDS (CONTINUED) for the year ended 31 December 2014 Note Investment income Net gains/(losses) on financial assets and liabilities fair at fair value through profit or loss – held for trading Income from financial assets at fair value through profit or loss Bank interest Income from stock lending Other income Rebates received Net investment income/(deficit) Operating expenses AIFM and investment management fees Administration fees Directors’ fees Custody fees Other operating expenses Total operating expenses Operating profit/(loss) Finance costs Interest expense Income equalization Profit/(loss) before tax Withholding tax Change in net assets attributable to holders of redeemable participating shares 6 17 12 12 12 Analytics International Flexible Fund Sanlam Global Balanced Fund Sanlam Global Best Ideas Feeder Fund Sanlam Global Equity Fund US$ US$ US$ US$ (2,232,000) 1,368,580 881 12,497 4,094 (845,948) 1,928,909 96,119 344 2,946 65,286 2,093,604 4,012,843 21 3,401 4,016,265 44,972,616 430,689 6,257 8,528 403,645 45,821,735 (609,142) (22,708) 636 (13,623) (22,054) (666,891) (1,072,042) (57,514) 2,408 (13,948) (40,064) (1,181,160) (1,000,594) (49,644) (1,388) 1,165 (26,767) (1,077,228) (10,620,511) (389,815) (17,829) (29,976) (164,789) (11,222,920) (1,512,839) 912,444 2,939,037 34,598,815 87,131 (9,123) 267,206 1,519,770 (1,425,708) 903,321 3,206,243 36,118,585 (280,168) - - - (1,705,876) 903,321 3,206,243 36,118,585 50 SANLAM GLOBAL FUNDS PLC STATEMENTS OF COMPREHENSIVE INCOME OF THE FUNDS (CONTINUED) for the year ended 31 December 2014 Note Investment income Net gains/(losses) on financial assets and liabilities fair at fair value through profit or loss – held for trading Income from financial assets at fair value through profit or loss Bank interest Income from stock lending Other income Rebates received Net investment income/(deficit) Operating expenses AIFM and investment management fees Administration fees Directors’ fees Custody fees Other operating expenses Total operating expenses Operating profit/(loss) Finance costs Interest expense Income equalization Profit/(loss) before tax 6 17 12 12 12 Sanlam Euro Liquidity Fund Sanlam Sterling Liquidity Fund Sanlam Global Liquidity Fund Sanlam US Dollar Liquidity Fund EUR GBP US$ US$ 1,606 71 1,904 3,581 4,154 222 1,564 5,940 (775,088) 2,563 20,520 (752,005) 2,383 792 5,821 12 9,008 (10,867) (3,677) 37 (1,459) (15,929) (31,895) (3,435) (3,988) 91 (1,469) (11,016) (19,817) (65,883) (14,948) 323 (12,219) (28,917) (121,644) (28,314) (13,877) (873,649) (13,321) (7,497) 1,086 (1,667) (25,628) (47,027) 47,027) (38,019) 2,859 1,248 (253) 187,509 3,643 (25,445) (12,629) (686,393) (34,376) - - - - (25,455) (12,629) (686,393) (34,376) Withholding tax Change in net assets attributable to holders of redeemable participating shares 51 SANLAM GLOBAL FUNDS PLC STATEMENTS OF COMPREHENSIVE INCOME OF THE FUNDS (CONTINUED) for the year ended 31 December 2014 Sanlam International Multi Asset I Fund Verso Global Flexible Fund NFB Global Balanced Fund of Funds Sanlam BIFM Emerging Markets Equity Fund US$ US$ US$ US$ 13,949 5,203 29,372 48,524 (1,581,469) 1,146,734 312 4,662 (429,761) 1,487,661 (15,525,484) 433,352 168 6,342 1,927,523 4,714,366 17,949 642 86,052 (10,706,475) (4,406) (14,437) 350 (21,586) (40,079) (608,532) (32,347) (463) (40,983) (17,149) (699,474) (94,164) (12,840) (336) (7,432) (21,560) (136,332) (1,741,597) (109,308) (763) (224,540) (93,722) (2,169,930) 8,445 (1,129,235) 1,791,191 (12,876,405) Finance costs Interest expense Income equalization (43) 19,962 (62,727) (111,047) 190,195 Profit/(loss) before tax 28,364 (1,191,962) 1,680,144 (12,686,210) - (224,678) (1,140) (363,593) 28,364 (1,416,640) 1,679,004 (13,049,803) Note Investment income Net gains/(losses) on financial assets and liabilities fair at fair value through profit or loss – held for trading Income from financial assets at fair value through profit or loss Bank interest Income from stock lending Other income Rebates received Net investment income/(deficit) Operating expenses AIFM and investment management fees Administration fees Directors’ fees Custody fees Other operating expenses Total operating expenses Operating profit/(loss) 6 17 12 12 12 Withholding tax Change in net assets attributable to holders of redeemable participating shares 52 SANLAM GLOBAL FUNDS PLC STATEMENTS OF COMPREHENSIVE INCOME OF THE FUNDS (CONTINUED) for the year ended 31 December 2014 Sanlam BIFM World Equity Fund Sanlam BIFM Global Fixed Income Fund Sanlam BIFM South Africa Inflation Linked Bond Fund Mpile Global Equity Fund US$ US$ US$ US$ (12,294,916) 624,859 (2,801,755) (322,278) 15,520,124 4,171 1,060 152,746 3,383,185 118 58,700 683,677 449,495 34,550 16,370 (2,301,340) 34,190 (288,088) (8,872,677) (270,150) (5,509) (174,438) (268,140) (9,590,914) (1,877,795) (53,290) (78) (16,369) (27,699) (1,975,231) (114,943) (23,207) (448) (6,817) (11,859) (157,274) (3,162) (282) (4,312) (11,930) (19,686) (6,207,729) (1,291,554) (2,458,614) (307,774) (399,812) 64,154 105,320 (176) (34,323) Profit/(loss) before tax (6,607,541) (1,227,400) (2,353,294) (342,273) Withholding tax (2,341,771) - - (5,129) Change in net assets attributable to holders of redeemable participating shares (8,949,312) (1,227,400) (2,353,294) (347,402) Note Investment income Net gains/(losses) on financial assets and liabilities fair at fair value through profit or loss – held for trading Income from financial assets at fair value through profit or loss Bank interest Income from stock lending Other income Rebates received Net investment income/(deficit) Operating expenses AIFM and investment management fees Administration fees Directors’ fees Custody fees Other operating expenses Total operating expenses Operating profit/(loss) Finance costs Interest expense Income equalization 6 17 12 12 12 53 SANLAM GLOBAL FUNDS PLC STATEMENTS OF FINANCIAL POSITION OF THE FUNDS as at 31 December 2015 Analytics International Flexible Fund Sanlam Global Balanced Fund Sanlam Global Best Ideas Feeder Fund Sanlam Global Equity Fund US$ US$ US$ US$ 4,960,688 139,072 40,693,936 - 2,081,346 111,305,073 - 26,195 50,764,385 - 5,400,884 1,157,362,330 36 45,793,696 113,386,419 50,790,580 1,162,763,250 (65,656) (5,878) (16,311) (94,997) (16,745) (758,151) - (55,409) (10,571) - (838,380) (123,958) - (87,845) (869,893) (65,980) (962,338) 45,705,851 112,516,526 50,724,600 1,161,800,912 Note Assets Cash and cash equivalents Accrued income Amounts receivable on sale of securities Financial assets at fair value through profit or loss Other debtors 7,8,18 Total assets Liabilities Bank overdraft Accrued expenses Administration fees accrued Amounts payable on repurchase of shares Amounts payable on purchase of securities Financial liabilities at fair value through profit or loss 12 7,8,18 Liabilities (excluding net assets attributable to holders of redeemable participating shares) Net assets attributable to holders of redeemable participating shares 19 55 SANLAM GLOBAL FUNDS PLC STATEMENTS OF FINANCIAL POSITION OF THE FUNDS (CONTINUED) as at 31 December 2015 Note Assets Cash and cash equivalents Accrued income Amounts receivable on sale of securities Financial assets at fair value through profit or loss Other debtors 7,8,18 Total assets Liabilities Bank overdraft Accrued expenses Administration fees accrued Amounts payable on repurchase of shares Amounts payable on purchase of securities Financial liabilities at fair value through profit or loss 12 7,8,18 Liabilities (excluding net assets attributable to holders of redeemable participating shares) Net assets attributable to holders of redeemable participating shares 19 Sanlam Euro Liquidity Fund Sanlam Sterling Liquidity Fund Sanlam Global Liquidity Fund Sanlam US Dollar Liquidity Fund EUR GBP US$ US$ 1,296,201 3,344,023 245 383,299 1,073,066 - 327,427 9,114,484 - 1,506,300 3,870,288 - 4,640,469 1,456,365 9,441,911 5,376,588 (12,013) (1,185) - (8,450) (642) - (12,833) (1,995) - (13,182) (1,414) - (13,198) (9,092) (14,828) (14,596) 4,627,271 1,447,273 9,427,083 5,361,992 56 SANLAM GLOBAL FUNDS PLC STATEMENTS OF FINANCIAL POSITION OF THE FUNDS (CONTINUED) as at 31 December 2015 Note Assets Cash and cash equivalents Accrued income Amounts receivable on sale of securities Financial assets at fair value through profit or loss Other debtors 12 7,8,18 Liabilities (excluding net assets attributable to holders of redeemable participating shares) Net assets attributable to holders of redeemable participating shares Verso Global Flexible Fund NFB Global Balanced Fund of Funds Fund Sanlam BIFM Emerging Markets Equity Fund US$ US$ US$ US$ 8,797 1,733 35,534 430 812,252 16,152,440 26,971 245,955 552 10,530 35,964 16,991,663 246,507 (12,208) 1,678 - (35,841) (123) - (21,808) (3,575) - (241,684) (4,823) - (10,530) (35,964) (25,383) (246,507) - - 16,966,280 - 7,8,18 Total assets Liabilities Bank overdraft Accrued expenses Administration fees accrued Amounts payable on repurchase of shares Amounts payable on purchase of securities Financial liabilities at fair value through profit or loss Sanlam International Multi Asset I Fund 19 57 SANLAM GLOBAL FUNDS PLC STATEMENTS OF FINANCIAL POSITION OF THE FUNDS (CONTINUED) as at 31 December 2015 Sanlam BIFM World Equity Fund Sanlam BIFM Global Fixed Income Fund Mpile Global Equity Fund US$ Sanlam BIFM South Africa Inflation Linked Bond Fund US$ US$ 1,943,377 213,445 264,462,426 23,509 354,899 31,068,651 1,604 37,173 196,868 25,127,387 - 266,642,757 31,425,154 37,173 25,324,255 (288,303) (45,904) (33,300) - (67,636) (6,905) - (2,753) (34,106) (314) - (19,196) (2,546) - (367,507) (74,541) (37,173) (21,742) 266,275,250 31,350,613 - 25,302,513 Note Assets Cash and cash equivalents Accrued income Amounts receivable on sale of securities Financial assets at fair value through profit or loss Other debtors 7,8,18 Total assets Liabilities Bank overdraft Accrued expenses Administration fees accrued Amounts payable on repurchase of shares Amounts payable on purchase of securities Financial liabilities at fair value through profit or loss 12 7,8,18 Liabilities (excluding net assets attributable to holders of redeemable participating shares) Net assets attributable to holders of redeemable participating shares 19 58 US$ SANLAM GLOBAL FUNDS PLC STATEMENTS OF FINANCIAL POSITION OF THE FUNDS (CONTINUED) as at 31 December 2015 Brackenham Global Balanced Fund APS Global Flexible Fund of Funds Counterpoint Global Equity Fund US$ US$ US$ 6,510,846 15,500 10,827,897 19,767 2,306,405 46 43,470,602 23,320 1,531,773 1,525 12,645,367 13,155 17,374,010 45,800,373 14,191,820 (30,875) (3,443) - (53,564) (4,089) - (32,675) (1,556) - (34,318) (57,653) (34,231) 17,339,692 45,742,720 14,157,589 Note Assets Cash and cash equivalents Accrued income Amounts receivable on sale of securities Financial assets at fair value through profit or loss Other debtors 7,8,18 Total assets Liabilities Bank overdraft Accrued expenses Administration fees accrued Amounts payable on repurchase of shares Amounts payable on purchase of securities Financial liabilities at fair value through profit or loss 12 7,8,18 Liabilities (excluding net assets attributable to holders of redeemable participating shares) Net assets attributable to holders of redeemable participating shares 19 59 SANLAM GLOBAL FUNDS PLC STATEMENTS OF FINANCIAL POSITION OF THE FUNDS (CONTINUED) as at 31 December 2014 Analytics International Flexible Fund Sanlam Global Balanced Fund Sanlam Global Best Ideas Feeder Fund Sanlam Global Equity Fund US$ US$ US$ US$ 2,502,752 127,970 47,810,369 15,246 946,891 131,560,904 15,452 49,941 127,711,141 11,087 2,377,401 1,356,983,691 86,892 50,456,337 132,523,247 127,772,169 1,359,447,984 (63,443) (6,102) (891) (100,577) (18,068) (9,709) - (89,651) (15,005) - (904,909) (121,359) (54,458) - (70,436) (128,354) (104,656) (1,080,726) 50,385,901 132,394,893 127,667,513 1,358,367,258 Note Assets Cash and cash equivalents Accrued income Amounts receivable on sale of securities Financial assets at fair value through profit or loss Other debtors 7,8,18 Total assets Liabilities Bank overdraft Accrued expenses Administration fees accrued Amounts payable on purchase of securities Amounts payable on repurchase of shares Financial liabilities at fair value through profit or loss 12 7,8,18 Liabilities (excluding net assets attributable to holders of redeemable participating shares) Net assets attributable to holders of redeemable participating shares 19 60 SANLAM GLOBAL FUNDS PLC STATEMENTS OF FINANCIAL POSITION OF THE FUNDS (CONTINUED) as at 31 December 2014 Note Assets Cash and cash equivalents Accrued income Amounts receivable on sale of securities Financial assets at fair value through profit or loss Other debtors 7,8,18 Total assets Liabilities Bank overdraft Accrued expenses Administration fees accrued Amounts payable on purchase of securities Amounts payable on repurchase of shares Financial liabilities at fair value through profit or loss 12 7,8,18 Liabilities (excluding net assets attributable to holders of redeemable participating shares) Net assets attributable to holders of redeemable participating shares 19 Sanlam Euro Liquidity Fund Sanlam Sterling Liquidity Fund Sanlam Global Liquidity Fund Sanlam US Dollar Liquidity Fund EUR GBP US$ US$ 1,467,001 3,728,617 3,957 455,338 1,193,202 1,817 267,129 10,514,485 13,085 1,950,819 4,825,469 3,769 5,199,575 1,650,357 10,794,699 6,780,057 (6,693) (2,192) (4,250) - (5,592) (1,720) (21,400) - (11,415) (3,895) - (8,804) (2,418) (48,640) - (13,135) (28,712) (15,310) (59,862) 5,186,440 1,621,645 10,779,389 6,720,195 61 SANLAM GLOBAL FUNDS PLC STATEMENTS OF FINANCIAL POSITION OF THE FUNDS (CONTINUED) as at 31 December 2014 Sanlam International Multi Asset I Fund Verso Global Flexible Fund NFB Global Balanced Fund of Funds Fund Sanlam BIFM Emerging Markets Equity Fund US$ US$ US$ US$ 71,485 29,391 1,498,055 42,346 47,626,376 24,270 5,709,516 17,083,333 36,030 7,232,619 302,959 147,831,524 11,082 Total assets 100,876 49,191,047 22,828,879 155,378,184 Liabilities Bank overdraft Accrued expenses Administration fees accrued Amounts payable on purchase of securities Amounts payable on repurchase of shares Financial liabilities at fair value through profit or loss (3,033) (15,413) (3,982) - (66,715) (7,129) - (15,070) (4,333) - (247,510) (18,250) (274) - (22,428) (73,844) (19,403) (266,034) 78,448 49,117,203 22,809,476 155,112,150 Note Assets Cash and cash equivalents Accrued income Amounts receivable on sale of securities Financial assets at fair value through profit or loss Other debtors 7,8,18 12 7,8,18 Liabilities (excluding net assets attributable to holders of redeemable participating shares) Net assets attributable to holders of redeemable participating shares 19 62 SANLAM GLOBAL FUNDS PLC STATEMENTS OF FINANCIAL POSITION OF THE FUNDS (CONTINUED) as at 31 December 2014 Sanlam BIFM World Equity Fund Sanlam BIFM Global Fixed Income Fund Sanlam BIFM South Africa Inflation Linked Bond Fund Mpile Global Equity Fund US$ US$ US$ US$ 13,480,765 553,693 1,030,180 745,745,141 10,783 804,088 132,479,704 11,082 3,899,711 430,640 63,361,082 3,910 79,641 12,614,102 2,259 760,820,562 133,294,874 67,695,343 12,696,002 (688,350) (81,242) (4,100,000) - (187,513) (14,927) - (49,833) (15,451) - (12,716) (3,052) - (4,869,592) (202,440) (65,284) (15,768) 755,950,970 133,092,434 67,630,059 12,680,234 Note Assets Cash and cash equivalents Accrued income Amounts receivable on sale of securities Financial assets at fair value through profit or loss Other debtors 7,8,18 Total assets Liabilities Bank overdraft Accrued expenses Administration fees accrued Amounts payable on purchase of securities Amounts payable on repurchase of shares Financial liabilities at fair value through profit or loss 12 7,8,18 Liabilities (excluding net assets attributable to holders of redeemable participating shares) Net assets attributable to holders of redeemable participating shares 19 63 SANLAM GLOBAL FUNDS PLC STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE PARTICIPATING SHARES OF THE COMPANY for the year ended 31 December 2015 Year ended 31 December 2015 Year ended 31 December 2014 US$ US$ (324,169) 12,110,485 145,106,995 363,898,617 Redemption of shares during the year (1,225,784,247) (534,414,137) Net decrease in net assets attributable to holders of redeemable participating shares from capital transactions (1,080,677,252) (170,515,520) Net decrease in net assets attributable to holders of redeemable participating shares in the year (1,081,001,421) (158,405,035) 2,891,585,914 3,050,980,537 (754,155) (989,588) 1,809,830,338 2,891,585,914 Operating activities Change in net assets attributable to participating shareholders from operations Capital transactions Issue of shares during the year Net assets attributable to holders of redeemable participating shares at the beginning of the year Exchange differences due to presentation of these financial statements in USD Net assets attributable to holders of redeemable participating shares at the end of the year The attached notes form an integral part of these annual audited financial statements. 64 SANLAM GLOBAL FUNDS PLC STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO PARTICIPATING SHAREHOLDERS OF THE FUNDS for the year ended 31 December 2015 Analytics International Flexible Fund Sanlam Global Balanced Fund Sanlam Global Best Ideas Feeder Fund Sanlam Global Equity Fund US$ US$ US$ US$ (269,612) (3,131,647) (4,708,164) 7,695,888 5,893,212 (10,303,650) 3,948,461 (20,695,181) (72,234,749) 3,415,053 (207,677,287) Net increase/(decrease) in net assets attributable to holders of redeemable participating shares from capital transactions (4,410,438) (16,746,720) (72,234,749) (204,262,234) Net increase/(decrease) in net assets attributable to holders of redeemable participating shares in the year (4,680,050) (19,878,367) (76,942,913) (196,566,346) Net assets attributable to holders of redeemable participating shares at the beginning of the year 50,385,901 132,394,893 127,667,513 1,358,367,258 Net assets attributable to holders of redeemable participating shares at the end of the year 45,705,851 112,516,526 50,724,600 1,161,800,912 Operating activities Change in net assets attributable to participating shareholders from operations Capital transactions Issue of shares during the year Redemption of shares during the year 65 SANLAM GLOBAL FUNDS PLC STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO PARTICIPATING SHAREHOLDERS OF THE FUNDS (CONTINUED) for the year ended 31 December 2015 Sanlam Euro Liquidity Fund Sanlam Sterling Liquidity Fund Sanlam Global Liquidity Fund Sanlam US Dollar Liquidity Fund EUR GBP US$ US$ (27,293) (4,359) (543,199) (9,263) Issue of shares during the year Redemption of shares during the year (531,876) 31,933 (201,946) 595,126 (1,404,233) 359,905 (1,708,845) Net increase/(decrease) in net assets attributable to holders of redeemable participating shares from capital transactions (531,876) (170,013) (809,107) (1,348,940) Net increase/(decrease) in net assets attributable to holders of redeemable participating shares in the year (559,169) (174,372) (1,352,306) (1,358,203) Net assets attributable to holders of redeemable participating shares at the beginning of the year 5,186,440 1,621,645 10,779,389 6,720,195 Net assets attributable to holders of redeemable participating shares at the end of the year 4,627,271 1,447,273 9,427,083 5,361,992 Operating activities Change in net assets attributable to participating shareholders from operations Capital transactions 66 SANLAM GLOBAL FUNDS PLC STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO PARTICIPATING SHAREHOLDERS OF THE FUNDS (CONTINUED) for the year ended 31 December 2015 Sanlam International Multi Asset I Fund Verso Global Flexible Fund NFB Global Balanced Fund of Funds US$ US$ US$ Sanlam BIFM Emerging Markets Equity Fund US$ 6,020 363,401 (722,667) 705,390 Issue of shares during the year Redemption of shares during the year (84,468) (49,480,604) 11,407,730 (16,528,259) 66,668 (155,884,208) Net increase/(decrease) in net assets attributable to holders of redeemable participating shares from capital transactions (84,468) (49,480,604) (5,120,529) (155,817,540) Net increase/(decrease) in net assets attributable to holders of redeemable participating shares in the year (78,448) (49,117,203) (5,843,196) (155,112,150) 78,448 49,117,203 22,809,476 155,112,150 - - 16,966,280 - Operating activities Change in net assets attributable to participating shareholders from operations Capital transactions Net assets attributable to holders of redeemable participating shares at the beginning of the year Net assets attributable to holders of redeemable participating shares at the end of the year 67 SANLAM GLOBAL FUNDS PLC STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO PARTICIPATING SHAREHOLDERS OF THE FUNDS (CONTINUED) for the year ended 31 December 2015 Sanlam BIFM World Equity Fund Sanlam BIFM Global Fixed Income Fund Mpile Global Equity Fund US$ Sanlam BIFM South Africa Inflation Linked Bond Fund US$ US$ 5,581,381 (515,263) (2,028,106) (30,695) 9,447,170 (504,704,271)* 2,283,423 (103,509,981) 14,692,046 (80,293,999)** 12,753,844 (100,870) Net increase/(decrease) in net assets attributable to holders of redeemable participating shares from capital transactions (495,257,101) (101,226,558) (65,601,953) 12,652,974 Net increase/(decrease) in net assets attributable to holders of redeemable participating shares in the year (489,675,720) (101,741,821) (67,630,059) 12,622,279 Net assets attributable to holders of redeemable participating shares at the beginning of the year 755,950,970 133,092,434 67,630,059 12,680,234 Net assets attributable to holders of redeemable participating shares at the end of the year 266,275,250 31,350,613 - 25,302,513 US$ Operating activities Change in net assets attributable to participating shareholders from operations Capital transactions Issue of shares during the year Redemption of shares during the year * Redemptions include in specie transfers to Botswana Insurance Fund Management Limited during the year of assets with a fair value at date of transfer of USD 435,066,173. ** Redemptions include in specie transfers to Botswana Insurance Fund Management Limited during the year of assets with a fair value at date of transfer of ZAR 947,834,510. The USD equivalent of this ZAR amount at the date of transfer was USD 81,063,460. 68 SANLAM GLOBAL FUNDS PLC STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO PARTICIPATING SHAREHOLDERS OF THE FUNDS (CONTINUED) for the year ended 31 December 2015 Brackenham Global Balanced Fund US$ APS Global Flexible Fund of Funds US$ Counterpoint Global Equity Fund US$ (431,595) (2,319,876) 70,782 17,845,204* (73,917) 48,062,596 - 14,287,757 (200,950) Net increase/(decrease) in net assets attributable to holders of redeemable participating shares from capital transactions 17,771,287 48,062,596 14,086,807 Net increase/(decrease) in net assets attributable to holders of redeemable participating shares in the year 17,339,692 45,742,720 14,157,589 - - - 17,339,692 45,742,720 14,157,589 Operating activities Change in net assets attributable to participating shareholders from operations Capital transactions Issue of shares during the year Redemption of shares during the year Net assets attributable to holders of redeemable participating shares at the beginning of the year Net assets attributable to holders of redeemable participating shares at the end of the year * Subscriptions include in specie transfers from Brackenham SCI Managed Fund during the year in exchange for assets with a fair value at date of transfer of USD 7,261,745. 69 SANLAM GLOBAL FUNDS PLC STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO PARTICIPATING SHAREHOLDERS OF THE FUNDS (CONTINUED) for the year ended 31 December 2014 Analytics International Flexible Fund Sanlam Global Balanced Fund Sanlam Global Best Ideas Feeder Fund Sanlam Global Equity Fund US$ US$ US$ US$ (1,705,876) 903,321 3,206,243 36,118,585 8,720,429 (1,628,471) 21,845,333 (22,143,971) (26,380,083) 23,705,127 (199,958,738) Net increase/(decrease) in net assets attributable to holders of redeemable participating shares from capital transactions 7,091,958 (298,638) (26,380,083) (176,253,611) Net increase/(decrease) in net assets attributable to holders of redeemable participating shares in the year 5,386,082 604,683 (23,173,840) (140,135,026) Net assets attributable to holders of redeemable participating shares at the beginning of the year 44,999,819 131,790,210 150,841,353 1,498,502,284 Net assets attributable to holders of redeemable participating shares at the end of the year 50,385,901 132,394,893 127,667,513 1,358,367,258 Operating activities Change in net assets attributable to participating shareholders from operations Capital transactions Issue of shares during the year Redemption of shares during the year . 70 SANLAM GLOBAL FUNDS PLC STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO PARTICIPATING SHAREHOLDERS OF THE FUNDS (CONTINUED) for the year ended 31 December 2014 Sanlam Euro Liquidity Fund Sanlam Sterling Liquidity Fund Sanlam Global Liquidity Fund Sanlam US Dollar Liquidity Fund EUR GBP US$ US$ (25,455) (12,629) (686,393) (34,376) Issue of shares during the year Redemption of shares during the year (513,541) (167,188) 2,569,746 (23,172,033) 532,897 (1,147,126) Net increase/(decrease) in net assets attributable to holders of redeemable participating shares from capital transactions (513,541) (167,188) (20,602,287) (614,229) Net increase/(decrease) in net assets attributable to holders of redeemable participating shares in the year (538,996) (179,817) (21,288,680) (648,605) Net assets attributable to holders of redeemable participating shares at the beginning of the year 5,725,436 1,801,462 32,068,069 7,368,800 Net assets attributable to holders of redeemable participating shares at the end of the year 5,186,440 1,621,645 10,779,389 6,720,195 Operating activities Change in net assets attributable to participating shareholders from operations Capital transactions 71 SANLAM GLOBAL FUNDS PLC STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO PARTICIPATING SHAREHOLDERS OF THE FUNDS (CONTINUED) for the year ended 31 December 2014 Sanlam International Multi Asset I Fund Verso Global Flexible Fund NFB Global Balanced Fund of Funds US$ US$ US$ Sanlam BIFM Emerging Markets Equity Fund US$ 28,364 (1,416,640) 1,679,004 (13,049,803) Issue of shares during the year Redemption of shares during the year 1,695 (464,628) 1,532,490 (8,328,423) 8,602,591 (18,865,342) 13,843,622 (69,287,756) Net increase/(decrease) in net assets attributable to holders of redeemable participating shares from capital transactions (462,933) (6,795,933) (10,262,751) (55,444,134) Net increase/(decrease) in net assets attributable to holders of redeemable participating shares in the year (434,569) (8,212,573) (8,583,747) (68,493,937) 513,017 57,329,776 31,393,223 223,606,087 78,448 49,117,203 22,809,476 155,112,150 Operating activities Change in net assets attributable to participating shareholders from operations Capital transactions Net assets attributable to holders of redeemable participating shares at the beginning of the year Net assets attributable to holders of redeemable participating shares at the end of the year 72 SANLAM GLOBAL FUNDS PLC STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO PARTICIPATING SHAREHOLDERS OF THE FUNDS (CONTINUED) for the year ended 31 December 2014 Sanlam BIFM World Equity Fund Sanlam BIFM Global Fixed Income Fund Mpile Global Equity Fund US$ Sanlam BIFM South Africa Inflation Linked Bond Fund US$ US$ (8,949,312) (1,227,400) (2,353,294) (347,402) 164,635,606 (107,640,270) 33,331,053 (52,761,126) 69,983,353 - 14,594,675* (1,567,039) Net increase/(decrease) in net assets attributable to holders of redeemable participating shares from capital transactions 56,995,336 (19,430,073) 69,983,353 13,027,636 Net increase/(decrease) in net assets attributable to holders of redeemable participating shares in the year 48,046,024 (20,657,473) 67,630,059 12,680,234 Net assets attributable to holders of redeemable participating shares at the beginning of the year 707,904,946 153,749,907 - - Net assets attributable to holders of redeemable participating shares at the end of the year 755,950,970 133,092,434 67,630,059 12,680,234 US$ Operating activities Change in net assets attributable to participating shareholders from operations Capital transactions Issue of shares during the year Redemption of shares during the year * Subscriptions include in specie transfers from African Life during the year, in exchange for assets with a fair value at date of transfer of USD 6,837,717. 73 SANLAM GLOBAL FUNDS PLC STATEMENT OF CASH FLOWS OF THE COMPANY for the year ended 31 December 2015 2015 2014 US$ US$ Cash flows from operating activities Purchases of financial assets and settlement of financial liabilities (479,698,252) (2,342,836,478) Proceeds from sale of investments (including realised gains) 1,051,031,832 2,535,084,784 Dividends received 9,709,986 19,879,358 Bond interest received 1,021,246 4,310 420,322 800,205 Bank interest received 52,048 110,797 Other income 40,419 66,371 3,620 12,497 Operating expenses paid (20,746,688) (29,533,802) Net cash inflow from operating activities 561,834,533 183,588,042 Rebates received Income from stock lending received Cash flows from financing activities 137,843,535 357,419,358 (713,121,993) (530,543,740) 2,065,980 1,833,261 (573,212,478) (171,291,121) (11,377,945) 12,296,921 Cash and cash equivalents at the start of the year 43,280,124 31,356,785 Exchange losses on cash and cash equivalents (1,682,678) (373,582) Cash and cash equivalents at the end of the year 30,219,501 43,280,124 Proceeds from redeemable participating shares issued Redemption of redeemable participating shares Income equalization Net cash used in financing activities Net (decrease)/increase in cash and cash equivalents The attached notes form an integral part of these annual audited financial statements. 74 SANLAM GLOBAL FUNDS PLC STATEMENTS OF CASH FLOWS OF THE FUNDS for the year ended 31 December 2015 Analytics International Flexible Fund Sanlam Global Balanced Fund Sanlam Global Best Ideas Feeder Fund Sanlam Global Equity Fund US$ US$ US$ US$ (7,144,656) 13,517,793 904,447 317,902 1,940 2,314 3,620 (701,323) (103,851,979) 121,460,462 252,087 69,322 210 793 (1,090,766) 71,528,448 (27) 591 (964,076) (103,365,958) 316,045,221 1,725,993 (85) 2,422 (10,564,419) 6,902,037 16,840,129 70,564,936 203,843,174 Cash flows from financing activities Proceeds from redeemable participating shares issued Redemption of redeemable participating shares Income equalization 5,893,212 (10,303,650) (115,006) 3,948,461 (19,946,739) 317,254 (72,234,749) 1,646,067 3,415,053 (207,731,745) 3,556,707 Net cash provided by/(used in) financing activities (4,525,444) (15,681,024) (70,588,682) (200,759,985) Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the start of the year Exchange gains/(losses) on cash and cash equivalents 2,376,593 2,502,752 81,343 1,159,105 946,891 (24,650) (23,746) 49,941 - 3,083,189 2,377,401 (59,706) Cash and cash equivalents at the end of the year 4,960,688 2,081,346 26,195 5,400,884 Cash flows from operating activities Purchases of financial assets and settlement of financial liabilities Proceeds from sale of investments (including realised gains) Dividends received Bond interest received Rebates received Bank interest received Other income Income from stock lending received Operating expenses paid Net cash inflow/(outflow) from operating activities 75 SANLAM GLOBAL FUNDS PLC STATEMENTS OF CASH FLOWS OF THE FUNDS (CONTINUED) for the year ended 31 December 2015 Sanlam Euro Liquidity Fund Sanlam Sterling Liquidity Fund Sanlam Global Liquidity Fund Sanlam US Dollar Liquidity Fund EUR GBP US$ US$ (3,634,009) 4,016,219 2,640 (2,851) 529 (24,888) (1,142,933) 1,267,526 1,066 380 384 (11,351) (10,017,563) 10,915,212 12,176 667 (54,687) (4,072,653) 5,032,734 3,733 550 591 (28,434) 357,640 115,072 855,805 936,521 Cash flows from financing activities Proceeds from redeemable participating shares issued Redemption of redeemable participating shares Income equalization (536,126) 7,717 31,933 (223,346) 4,293 595,126 (1,404,233) 16,216 359,905 (1,757,485) 16,543 Net cash provided by/(used in) financing activities (528,409) (187,120) (792,891) (1,381,037) Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the start of the year Exchange gains/(losses) on cash and cash equivalents (170,769) 1,467,001 (31) (72,048) 455,338 9 62,914 267,129 (2,616) (444,516) 1,950,819 (3) Cash and cash equivalents at the end of the year 1,296,201 383,299 327,427 1,506,300 Cash flows from operating activities Purchases of financial assets and settlement of financial liabilities Proceeds from sale of investments (including realised gains) Dividends received Bond interest received Rebates received Bank interest received Other income Income from stock lending received Operating expenses paid Net cash inflow/(outflow) from operating activities 76 SANLAM GLOBAL FUNDS PLC STATEMENTS OF CASH FLOWS OF THE FUNDS (CONTINUED) for the year ended 31 December 2015 Sanlam International Multi Asset I Fund Verso Global Flexible Fund NFB Global Balanced Fund of Funds Sanlam BIFM Emerging Markets Equity Fund US$ US$ US$ US$ 71,330 35,540 791 (16,941) 48,423,017 105,880 (1,076) 928 (175,284) (3,940,822) 4,008,985 293,970 23,306 325 604 (126,051) (18,128,904) 170,125,523 729,088 9,722 5,159 (685,766) 90,720 48,353,465 260,317 152,054,822 Cash flows from financing activities Proceeds from redeemable participating shares issued Redemption of redeemable participating shares Income equalization (84,468) 5,595 (49,480,604) (326,648) 11,407,730 (16,528,259) (35,075) 66,668 (155,884,208) (2,084,551) Net cash provided by/(used in) financing activities (78,873) (49,807,252) (5,155,604) (157,902,091) 11,847 (3,033) (17) (1,453,787) 1,498,055 (8,734) (4,895,287) 5,709,516 (1,977) (5,847,269) 7,232,619 (1,139,395) 8,797 35,534 812,252 245,955 Cash flows from operating activities Purchases of financial assets and settlement of financial liabilities Proceeds from sale of investments (including realised gains) Dividends received Bond interest received Rebates received Bank interest received Other income Income from stock lending received Operating expenses paid Net cash inflow/(outflow) from operating activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the start of the year Exchange gains/(losses) on cash and cash equivalents Cash and cash equivalents at the end of the year 77 SANLAM GLOBAL FUNDS PLC STATEMENTS OF CASH FLOWS OF THE FUNDS (CONTINUED) for the year ended 31 December 2015 Sanlam BIFM World Equity Fund Sanlam BIFM Global Fixed Income Fund Sanlam BIFM South Africa Inflation Linked Bond Fund Mpile Global Equity Fund US$ US$ US$ US$ (123,641,104) 177,825,930* 5,478,472 113,804 19 2,008 (4,737,988) (80,470) 99,763,849 80,470 215 2,140 (1,016,592) (16,993,555) (2,051,892)** 703,344 40,575 20,053 (180,979) (15,154,148) 2,650,586 23,563 90 199 (17,418) 55,041,141 98,749,612 (18,462,454) (12,497,128) Cash flows from financing activities Proceeds from redeemable participating shares issued Redemption of redeemable participating shares Income equalization 9,447,170 (73,738,098)* (2,226,090) 2,283,423 (103,509,981) 2,027,758 14,692,046 769,461** (658,514) 12,753,844 (100,870) (38,620) Net cash provided by/(used in) financing activities (66,517,018) (99,198,800) 14,802,993 12,614,354 Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the start of the year Exchange gains/(losses) on cash and cash equivalents (11,475,877) 13,480,765 (61,511) (449,188) 804,088 (1) (3,659,461) 3,899,711 (243,003) 117,226 79,641 1 1,943,377 354,899 (2,753) 196,868 Cash flows from operating activities Purchases of financial assets and settlement of financial liabilities Proceeds from sale of investments (including realised gains) Dividends received Bond interest received Rebates received Bank interest received Other income Income from stock lending received Operating expenses paid Net cash inflow/(outflow) from operating activities Cash and cash equivalents at the end of the year * Excludes a transfer of investments via-in-specie redemption to Botswana Insurance Fund Management Limited during the year amounting to USD 435,066,173. ** Excludes a transfer of investments via in-specie redemption to Botswana Insurance Fund Management Limited during the year of amounting to ZAR 947,834,510. The USD equivalent of this ZAR amount at the date of transfer was USD 81,063,460. 78 SANLAM GLOBAL FUNDS PLC STATEMENTS OF CASH FLOWS OF THE FUNDS (CONTINUED) for the year ended 31 December 2015 Brackenham Global Balanced Fund US$ APS Global Flexible Fund of Funds US$ Counterpoint Global Equity Fund US$ (5,486,120)* 1,441,619 147,267 1,021 18 (79,669) (46,700,000) 1,050,000 77,532 782 (173,746) (15,488,926) 2,992,870 49,219 323 1 (88,786) Net cash inflow/(outflow) from operating activities (3,975,864) (45,745,432) (12,535,299) Cash flows from financing activities Proceeds from redeemable participating shares issued Redemption of redeemable participating shares Income equalization 10,583,459* (73,917) (20,217) 48,062,596 (10,679) 14,287,757 (200,950) (19,470) Net cash provided by/(used in) financing activities 10,489,325 48,051,917 14,067,337 Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the start of the year Exchange gains/(losses) on cash and cash equivalents 6,513,461 (2,615) 2,306,485 (80) 1,532,038 (265) Cash and cash equivalents at the end of the year 6,510,846 2,306,405 1,531,773 Cash flows from operating activities Purchases of financial assets and settlement of financial liabilities Proceeds from sale of investments (including realised gains) Dividends received Bond interest received Rebates received Bank interest received Other income Income from stock lending received Operating expenses paid * Excludes a transfer of investments via in-specie subscription from Brackenham SCI Managed Fund during the year amounting to USD 7,261,745. 79 SANLAM GLOBAL FUNDS PLC STATEMENTS OF CASH FLOWS OF THE FUNDS (CONTINUED) for the year ended 31 December 2014 Analytics International Flexible Fund Sanlam Global Balanced Fund Sanlam Global Best Ideas Feeder Fund Sanlam Global Equity Fund US$ US$ US$ US$ (10,742,082) 4,884,470 1,002,314 (14,545) 881 12,497 4,094 (674,108) (122,777,347) 123,675,487 96,119 344 2,946 65,286 (1,188,618) 27,167,876 21 3,401 (1,118,701) (1,302,546,258) 1,487,356,017 430,689 6,257 8,528 403,645 (11,415,668) Net cash inflow/(outflow) from operating activities (5,526,479) (125,783) 26,052,597 174,243,210 Cash flows from financing activities Proceeds from redeemable participating shares issued Redemption of redeemable participating shares Income equalization 8,720,429 (1,628,471) 87,131 22,203,125 (22,134,262) (9,123) (26,380,083) 267,206 23,705,159 (199,908,732) 1,519,770 Net cash provided by/(used in) financing activities 7,179,089 59,740 (26,112,877) (174,683,803) Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the start of the year Exchange gains/(losses) on cash and cash equivalents 1,652,610 837,289 12,853 (66,043) 1,005,687 7,247 (60,280) 110,221 - (440,593) 2,856,162 (38,168) Cash and cash equivalents at the end of the year 2,502,752 946,891 49,941 2,377,401 Cash flows from operating activities Purchases of financial assets and settlement of financial liabilities Proceeds from sale of investments (including realised gains) Dividends received Bond interest received Bank interest received Income from stock lending received Other income Rebates received Operating expenses paid 80 SANLAM GLOBAL FUNDS PLC STATEMENTS OF CASH FLOWS OF THE FUNDS (CONTINUED) for the year ended 31 December 2014 Sanlam Euro Liquidity Fund Sanlam Sterling Liquidity Fund Sanlam Global Liquidity Fund Sanlam US Dollar Liquidity Fund EUR GBP US$ US$ Cash flows from operating activities Purchases of financial assets and settlement of financial liabilities Proceeds from sale of investments (including realised gains) Dividends received Bond interest received Bank interest received Income from stock lending received Other income Rebates received Operating expenses paid (2,531) 349,969 71 1,904 7,409 (42,063) (941) 97,673 222 1,564 8,170 (29,959) (2,176,440) 22,177,070 2,563 2,864 (130,132) (252,356) 679,502 792 5,821 9,219 (53,722) Net cash inflow/(outflow) from operating activities 314,759 76,729 19,875,925 389,256 Cash flows from financing activities Proceeds from redeemable participating shares issued Redemption of redeemable participating shares Income equalization (509,291) 2,859 (145,788) 1,248 2,569,746 (23,172,033) 187,509 532,897 (1,098,486) 3,643 Net cash provided by/(used in) financing activities (506,432) (144,540) (20,414,778) (561,946) Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the start of the year Exchange gains/(losses) on cash and cash equivalents (191,673) 1,658,650 24 (67,811) 523,157 (8) (538,853) 798,952 7,030 (172,690) 2,123,509 - Cash and cash equivalents at the end of the year 1,467,001 455,338 267,129 1,950,819 81 SANLAM GLOBAL FUNDS PLC STATEMENTS OF CASH FLOWS OF THE FUNDS (CONTINUED) for the year ended 31 December 2014 Cash flows from operating activities Purchases of financial assets and settlement of financial liabilities Proceeds from sale of investments (including realised gains) Dividends received Bond interest received Bank interest received Income from stock lending received Other income Operating expenses paid Sanlam International Multi Asset I Fund Verso Global Flexible Fund NFB Global Balanced Fund of Funds Sanlam BIFM Emerging Markets Equity Fund US$ US$ US$ US$ 380,970 5,202 (48,959) (13,606,382) 20,301,576 879,710 45,114 4,662 (722,459) 14,333,194 432,212 168 6,342 (183,831) (251,907,397) 308,958,666 4,170,443 17,949 642 86,052 (2,138,617) 337,213 6,902,221 14,588,085 59,187,738 1,731 (469,273) 19,962 1,532,490 (8,328,423) (62,727) 8,602,591 (18,865,342) (111,047) 13,843,622 (69,337,915) 190,195 (447,580) (6,858,660) (10,373,798) (55,304,098) (110,367) 117,529 (10,195) 43,561 1,465,003 (10,509) 4,214,287 1,507,816 3,883,640 3,420,931 (12,587) (71,952) (3,033) 1,498,055 5,709,516 7,232,619 Net cash inflow/(outflow) from operating activities Cash flows from financing activities Proceeds from redeemable participating shares issued Redemption of redeemable participating shares Income equalization Net cash provided by/(used in) financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the start of the year Exchange gains/(losses) on cash and cash equivalents Cash and cash equivalents at the end of the year 82 SANLAM GLOBAL FUNDS PLC STATEMENTS OF CASH FLOWS OF THE FUNDS (CONTINUED) for the year ended 31 December 2014 Sanlam BIFM World Equity Fund Sanlam BIFM Global Fixed Income Fund Sanlam BIFM South Africa Inflation Linked Bond Fund Mpile Global Equity Fund US$ US$ US$ US$ (530,048,107) 469,809,633 12,838,810 4,171 1,060 152,746 (9,615,644) (29,309,700) 47,619,118 118 58,700 (2,008,495) (71,767,219) 5,565,729 34,550 35,225 (95,900) (7,698,663)* 1,600,000 29,061 (6,353) (56,857,331) 16,359,741 (66,227,615) (6,075,955) 164,636,204 (103,936,351) (399,812) 33,331,053 (52,761,126) 64,154 69,983,353 105,320 7,756,958* (1,567,039) (34,323) 60,300,041 (19,365,919) 70,088,673 6,155,596 Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the start of the year Exchange gains/(losses) on cash and cash equivalents 3,442,710 10,024,493 13,562 (3,006,178) 3,810,269 (3) 3,861,058 38,653 79,641 - Cash and cash equivalents at the end of the year 13,480,765 804,088 3,899,711 79,641 Cash flows from operating activities Purchases of financial assets and settlement of financial liabilities Proceeds from sale of investments (including realised gains) Dividends received Bond interest received Bank interest received Income from stock lending received Other income Operating expenses paid Net cash inflow/(outflow) from operating activities Cash flows from financing activities Proceeds from redeemable participating shares issued Redemption of redeemable participating shares Income equalization Net cash provided by/(used in) financing activities * Excludes a transfer of investments via in-specie subscription from African Life during the year amounting to USD 6,837,717. 83 SANLAM GLOBAL FUNDS PLC PORTFOLIO OF INVESTMENTS OF ANALYTICS INTERNATIONAL FLEXIBLE FUND as at 31 December 2015 Nominal Security Fair Value USD % of Net Assets Financial assets at fair value through profit or loss Equities - 76.62% Belgium - 3.06% 11,200 Anheuser-Busch Inbev NV ADR Total Belgium 1,400,000 3.06% 1,400,000 3.06% 127,509 0.28% 47,343 0.10% 152,048 0.33% 68,947 0.15% 206,521 0.45% 21,799 0.05% Canada - 2.73% 5,840 Canadian Natural Resources 16,100 Canyon Services Group Inc 4,575 Enbridge Inc 167,000 Ithaca Energy Inc 7,100 Keyera Corp 4,930 Paramount Resources Ltd 9,750 Pembina Pipeline Corporation 212,385 0.46% 13,410 Suncor Energy Inc 346,077 0.76% 43,230 Trinidad Drilling Ltd 66,215 1,248,844 2.73% Total Canada 0.15% France - 2.18% 1,538 L’Oreal 259,367 0.57% 2,945 Technip 146,259 0.32% 13,180 Total SA 590,588 996,214 1.29% Total France 2.18% Great Britain - 14.72% 15,390 BG Group Plc 223,520 0.49% 86,300 BP Plc 450,460 0.99% 10,241 Diageo 280,336 0.61% 11,614 GlaxoSmithKline 235,123 0.52% 30,779 Imperial Tobaco Group 1,627,675 3.56% 7,478 London Stock Exchange Group Plc 302,560 0.66% 11,600 Petrofac 17,974 Reckitt Benckiser Group 31,895 Royal Dutch Shell 25,040 Unilever Plc Total Great Britain 136,149 0.30% 1,664,622 3.64% 725,656 1.59% 1,080,501 2.36% 6,726,602 14.72% Ireland - 2.49% 104,116 C&C Group Plc 419,788 0.92% 9,329 Medtronic Plc 717,586 1.57% 1,137,374 2.49% Total Ireland 84 SANLAM GLOBAL FUNDS PLC PORTFOLIO OF INVESTMENTS OF ANALYTICS INTERNATIONAL FLEXIBLE FUND (CONTINUED) as at 31 December 2015 Nominal Security Fair Value USD % of Net Assets 322,346 0.70% 322,346 0.70% 1,539,032 3.37% 1,539,032 3.37% 743,589 1.63% 743,589 1.63% 477,287 1.04% 477,287 1.04% 502,200 1.10% 502,200 1.10% 190,469 0.42% 190,469 0.42% 121,872 0.27% 121,872 0.27% 1,664,595 3.64% 702,180 1.54% 1,187,646 2.60% 3,554,421 7.78% Financial assets at fair value through profit or loss (continued) Equities - 76.62% (continued) Israel - 0.70% 3,961 Check Point Software Technologies Total Israel Japan - 3.37% 41,400 Japan Tobacco International Total Japan Jersey Channel Islands - 1.63% 32,265 WPP Plc Total Jersey Channel Islands Korea (South) - 1.04% 898 Samsung Electronics Co Ltd Total Korea (South) Netherlands - 1.10% 7,200 Schlumberger Ltd Total Netherlands Norway - 0.42% 13,650 Statoil ASA Total Norway Sweden - 0.27% 8,400 Lundin Petroleum AB Total Sweden Switzerland - 7.78% 22,371 Nestle SA 8,105 Novartis AG 4,305 Roche Holding AG genusschein Total Switzerland Unites States - 35.13% 13,799 Altria Group Inc 803,240 1.76% 3,920 Anadarko Petroleum Corp 190,434 0.42% 2,550 Apache Corp 113,399 0.25% 8,570 Chevron Corp 770,957 1.69% 10,847 Colgate-Palmolive Com 722,627 1.58% 6,535 Conocophillips Co 305,119 0.67% 85 SANLAM GLOBAL FUNDS PLC PORTFOLIO OF INVESTMENTS OF ANALYTICS INTERNATIONAL FLEXIBLE FUND (CONTINUED) as at 31 December 2015 Nominal Security Fair Value USD % of Net Assets Financial assets at fair value through profit or loss (continued) Equities - 76.62% (continued) Unites States - 35.13% (continued) 4,400 Eog Resources Inc 311,476 0.68% 8,640 Exxon Corp 673,488 1.47% 3,757 Factset Research Systems Inc 610,776 1.34% 2,950 Fluor Corp (New) 139,299 0.30% 3,148 Intuit Inc 15,062 Johnson & Johnson 8,370 Marathon Petroleum Corp 29,601 Microsoft Corp 12,954 Moody’s Corp 1,299,804 2.84% 3,925 Occidental Petroleum Corp 265,369 0.58% 12,551 Oracle Corp 458,488 1.00% 12,185 Paypal Holdings Inc 441,097 0.97% 7,524 Pepsico Inc Com 751,798 1.64% 14,933 Philip Morris International Inc 1,312,760 2.87% 845 Pioneer Nat Res 105,946 0.23% 1,813 The 3M Co 273,110 0.60% 20,706 Twenty First Century Fox Inc 562,375 1.23% 8,660 Valero Energy Corp 612,349 1.34% 6,373 VeriSign Inc 556,745 1.22% 10,417 Visa Inc 807,838 1.77% 4,495 Whiting Petroleum Corp 42,433 0.09% Total Unites States 16,058,042 35.13% Total Equities 35,018,292 76.62% Nominal Security 303,782 0.66% 1,547,169 3.39% 433,901 0.95% 1,642,263 3.59% Coupon Maturity Fair Value USD % of Net Assets Corporate Debt - 10.00% 250,000 Inter-American Devel Bk 6.00% 15/12/2017 180,195 0.39% 100,000 DBS Bank Ltd Singapore 0.93% 15/07/2021 99,691 0.22% 200,000 Franshion Development Ltd. 6.75% 15/04/2021 225,280 0.49% 120,000 Kuwait Projects Co 9.38% 15/07/2020 148,619 0.33% 200,000 Noble Group Ltd 6.75% 29/01/2020 128,666 0.28% 200,000 Ipic GMTN Ltd 6.88% 01/11/2041 258,524 0.57% 200,000 Abu Dhabi National Energy 3.63% 12/01/2023 192,424 0.42% 86 SANLAM GLOBAL FUNDS PLC PORTFOLIO OF INVESTMENTS OF ANALYTICS INTERNATIONAL FLEXIBLE FUND (CONTINUED) as at 31 December 2015 Nominal Security Coupon Maturity Fair Value USD % of Net Assets Financial assets at fair value through profit or loss (continued) Corporate Debt - 10.00% (continued) 326,000 RWE AG 7.04% 12/10/2072 329,410 0.72% 200,000 Ooredoo International 5.00% 19/10/2025 216,466 0.47% 250,000 Temasek Financial Ltd 2.38% 23/01/2023 244,973 0.54% 200,000 State Grid Overseas Inv 3.13% 22/05/2023 196,330 0.43% 380,000 Kommunalbanken AS 3.75% 11/12/2017 262,880 0.57% 200,000 Codelco Inc 4.50% 13/08/2023 194,880 0.43% 154,702 Oro Negro Dril Pte Ltd 7.50% 24/01/2019 92,546 0.20% 1,000,000 Fonterra Cooperative 200,000 China Cinda Finance 3.60% 5.63% 29/01/2019 14/05/2024 147,340 209,920 0.32% 0.46% 300,000 Export- Import BK Korea 1,000,000 China Construction Bank 4.88% 3.45% 15/12/2017 27/06/2017 208,752 151,951 0.46% 0.33% 426,000 Rabobank Nederland 4.75% 26/06/2017 296,754 0.65% 225,000 Saudi Electricity 5.06% 08/04/2043 195,563 0.43% 3.60% 04/02/2016 152,958 0.33% 1,000,000 Ojsc Russ Agric Bk 50,000 10.75% 15/11/2018 11,750 0.03% 17,000,000 Intl Bk Recon & Develop Cobre Del Mayo SA 6.00% 20/12/2016 255,443 0.56% 200,000 5.38% 26/06/2026 170,789 0.37% 4,572,104 10.00% Ecopetrol SA Total Corporate Debt Government Debt - 2.42% 2,000,000 HK Govt Bond Programme 3.68% 11/08/2017 268,617 0.59% 215,000 Australia (Cmnwlth) 4.75% 21/04/2027 183,524 0.40% 900,000 Mex Bonos Desarr Fix 10.00% 05/12/2024 66,338 0.15% 230,000 State of Qatar 6.40% 20/01/2040 291,125 0.64% 50,000,000 Republic of Chile 6.00% 01/01/2020 74,744 0.16% 220,000 3.00% 15/11/2044 219,192 0.48% 1,103,540 2.42% 40,693,936 89.04% US Treasury Note Total Gove rnment Debt Total financial assets at fair value through profit or loss 87 SANLAM GLOBAL FUNDS PLC PORTFOLIO OF INVESTMENTS OF ANALYTICS INTERNATIONAL FLEXIBLE FUND (CONTINUED) as at 31 December 2015 Financial liabilities at fair value through profit or loss Derivative financial instruments Buy currency Buy Amount Sell currency Sell Amount Maturity Fair Value USD % of Net Assets Forward Contracts – (0.04%) 1 (0.03)% (3,253) 1 (0.01)% Total Forward Contracts (16,311) (0.04)% Total financial liabilities at fair value through profit or loss (16,311) (0.04)% USD 939,400 NZD (1,400,000) 31/03/2016 (13,058) USD 182,523 AUD (256,000) 31/03/2016 4,960,688 2 10.85% 67,538 45,705,851 0.15% 100.00% Cash and cash equivalents Other net assets and liabilities Net assets attributable to holders of redeemable participating shares 1 Brown Brothers Harriman acts as counterparty to the open forward positions at 31 December 2015. 2 The cash balances are held through the Depositary’s sweep account with overnight deposits in the amount of USD 4,345,133 held with Citibank and USD 615,555 held with JPM Chase. 88 SANLAM GLOBAL FUNDS PLC PORTFOLIO OF INVESTMENTS OF SANLAM GLOBAL BALANCED FUND as at 31 December 2015 Nominal Security Fair Value USD % of Net Assets Financial assets at fair value through profit or loss Collective Investment Schemes – 98.92% 37,298,263 Sanlam Centre Global Select Equity Fund 40,748,353 36.21% 929,316 Sanlam FOUR Global Equity Fund 13,610,950 12.10% 2,647,763 Sanlam FOUR Multi Strategy Fund 26,537,733 23.59% 196,538 Sanlam FOUR Stable Global Equity Fund 3,044,135 2.71% 19,059,848 Sanlam Global Bond Fund 26,334,992 23.40% 544,397 Sanlam World Equity Fund 1,028,910 0.91% Total Collective Investment Schemes 111,305,073 98.92% Total financial assets at fair value through profit or loss 111,305,073 98.92% Cash and cash equivalents 2,081,346 1.85% Other net assets and liabilities (869,893) (0.77)% 112,516,526 100.00% Net assets attributable to holders of redeemable participating shares 89 SANLAM GLOBAL FUNDS PLC PORTFOLIO OF INVESTMENTS OF SANLAM GLOBAL BEST IDEAS FEEDER FUND as at 31 December 2015 Nominal Security Fair Value USD % of Net Assets Financial assets at fair value through profit or loss Collective Investment Schemes – 100.08% 45,224,397 50,764,385 100.08% Total Collective Investment Schemes Sanlam Global Best Ideas Fund 50,764,385 100.08% Total financial assets at fair value through profit or loss 50,764,385 100.08% 26,195 0.05% (65,980) (0.13)% 50,724,600 100.00% Cash and cash equivalents Other net assets and liabilities Net assets attributable to holders of redeemable participating shares 90 SANLAM GLOBAL FUNDS PLC PORTFOLIO OF INVESTMENTS OF SANLAM GLOBAL EQUITY FUND as at 31 December 2015 Nominal Security Fair Value USD % of Net Assets Financial assets at fair value through profit or loss Collective Investment Schemes – 99.42% 42,363,496 8IP Australian Small Companies Fund 30,810,938 2.65% 716,563 663,095 Sanlam FOUR Active European Ex UK Equity Fund Sanlam FOUR Global Equity Fund 12,323,107 9,711,819 1.06% 0.84% 6,256,967 Sanlam FOUR Stable Global Equity Fund 96,912,915 8.34% 2,500,000 Sanlam FOUR US Dividend Income Fund 25,626,250 2.21% 511,204,317 Sanlam World Equity Fund 966,176,160 83.16% 12,336,573 SIIP India Opportunities Fund 13,465,369 1.16% 1,155,026,558 99.42% Maturity Fair Value USD % of Net Assets 22/06/2016 2,335,772 0.20% 2,335,772 0.20% 1,157,362,330 99.62% Total Collective Investment Schemes Derivative financial instruments Notional Underlying Outperformance Swap – 0.20% 7,687 MSCI World Index/S&P ASX MIDCAP50 Index AUD/USD FX rates Total Outperformance Swap Total financial assets at fair value through profit or loss Cash and cash equivalents 5,400,884 0.46% Other net assets and liabilities (962,302) (0.08)% 1,161,800,912 100.00% Net assets attributable to holders of redeemable participating shares 91 SANLAM GLOBAL FUNDS PLC PORTFOLIO OF INVESTMENTS OF SANLAM EURO LIQUIDITY FUND as at 31 December 2015 Nominal Security Fair Value EUR % of Net Assets Financial assets at fair value through profit or loss Collective Investment Schemes – 72.27% 32,947 3,344,023 72.27% Total Collective Investment Schemes Institutional Euro Liquidity Fund 3,344,023 72.27% Total financial assets at fair value through profit or loss 3,344,023 72.27% Cash and cash equivalents 1,296,201 28.01% (12,953) (0.28)% 4,627,271 100.00% 1 Other net assets and liabilities Net assets attributable to holders of redeemable participating shares 1 The cash balances are held through the Depositary’s sweep account with overnight deposits in the amount of EUR 766,600 held with Deutsche Bank and EUR 529,601 held with Societe Generale. 92 SANLAM GLOBAL FUNDS PLC PORTFOLIO OF INVESTMENTS OF SANLAM STERLING LIQUIDITY FUND as at 31 December 2015 Nominal Security Fair Value GBP % of Net Assets Financial assets at fair value through profit or loss Collective Investment Schemes – 74.14% 10,442 1,073,066 74.14% Total Collective Investment Schemes Institutional Sterling Liquidity Fund 1,073,066 74.14% Total financial assets at fair value through profit or loss 1,073,066 74.14% Cash and cash equivalents 383,299 Other net assets and liabilities Net assets attributable to holders of redeemable participating shares 1 1 26.49% (9,092) (0.63)% 1,447,273 100.00% The cash balances are held through the Depositary’s sweep account with overnight deposits in the amount of GBP 176,741 held with HSBC and GBP 206,558 held with Brown Brothers Harriman Cayman. 93 SANLAM GLOBAL FUNDS PLC PORTFOLIO OF INVESTMENTS OF SANLAM GLOBAL LIQUIDITY FUND as at 31 December 2015 Nominal Security Fair Value USD % of Net Assets Financial assets at fair value through profit or loss Collective Investment Schemes – 96.69% 1 BlackRock Institutional Cash Series – Sterling Liquidity Fund 137 0.00% 1 BlackRock Institutional Euro Fund 147 0.00% 39,263 Institutional Cash Series Plc 3,945,432 41.86% 34,513 Institutional Euro Liquidity Fund 3,803,832 40.35% 9,008 Institutional Sterling Liquidity Fund 1,364,936 14.48% Total Collective Investment Schemes 9,114,484 96.69% Total financial assets at fair value through profit or loss 9,114,484 96.69% Cash and cash equivalents 327,427 3.47% Other net assets and liabilities (14,828) (0.16)% 9,427,083 100.00% Net assets attributable to holders of redeemable participating shares 94 SANLAM GLOBAL FUNDS PLC PORTFOLIO OF INVESTMENTS OF SANLAM US DOLLAR LIQUIDITY FUND as at 31 December 2015 Nominal Security Fair Value USD % of Net Assets Financial assets at fair value through profit or loss Collective Investment Schemes – 72.18% 38,515 Institutional Cash Series Plc 3,870,288 72.18% Total Collective Investment Schemes 3,870,288 72.18% Total financial assets at fair value through profit or loss 3,870,288 72.18% Cash and cash equivalents 1,506,300 28.09% (14,596) (0.27)% 5,361,992 100.00% 1 Other net assets and liabilities Net assets attributable to holders of redeemable participating shares 1 The cash balances are held through the Depositary’s sweep account with overnight deposits in the amount of USD 965,140 held with Societe Generale and USD 541,160 held with Citibank. 95 SANLAM GLOBAL FUNDS PLC PORTFOLIO OF INVESTMENTS OF NFB GLOBAL BALANCED FUND OF FUNDS as at 31 December 2015 Nominal Security Fair Value USD % of Net Assets Collective Investment Schemes – 16.08% 264,880 PIMCO Funds Global Investors Series Plc – Unconstrained Bond Fund 2,728,269 16.08% Total Collective Investment Schemes 2,728,269 16.08% Financial assets at fair value through profit or loss Exchange Traded Funds – 79.12% 79,326 iShares Core MSCI World UCITS ETF 3,265,554 19.24% 114,487 iShares Developed Markets Property Yield Fund 2,754,948 16.24% 116,976 iShares DJ Stoxx Global Select Dividend 100 3,291,180 19.40% 6,108 iShares Global Inflation Linked Government Bond Fund 91,869 iShares MSCI World UCITS ETF 863,305 5.09% 3,249,184 19.15% Total Exchange Traded Funds 13,424,171 79.12% Total financial assets at fair value through profit or loss 16,152,440 95.20% 812,252 4.79% 1,588 0.01% 16,966,280 100.00% Cash and cash equivalents Other net assets and liabilities Net assets attributable to holders of redeemable participating shares 96 SANLAM GLOBAL FUNDS PLC PORTFOLIO OF INVESTMENTS OF SANLAM BIFM WORLD EQUITY FUND as at 31 December 2015 Nominal Security Fair Value USD % of Net Assets Financial assets at fair value through profit or loss Equities - 75.14% Australia - 0.32% 42,939 Amcor Ltd 420,566 0.16% 5,693 CSL Ltd 436,911 0.16% 857,477 0.32% 420,141 0.16% 1,912,148 0.72% 2,332,289 0.88% 1,370,736 0.52% Total Australia Belgium - 0.88% 6,709 KBC Bankverzekeringsholding 21,157 UCB S.A. Total Belgium Bermuda - 0.99% 675,846 Haier Electronics Group Co. Ltd 5,007 Jardine Strategic Holdings Ltd 136,841 0.05% 752,483 Kunlun Energy Company Ltd 669,884 0.25% 3,674 Signet Jewelers Ltd Total Bermuda 454,437 0.17% 2,631,898 0.99% 315,540 0.12% 315,540 0.12% Brazil - 0.12% 92,806 Petroleo Brasileiro SA - ADR Total Brazil Canada - 0.86% 1,417 Canadian Pacific Railway Ltd 61,962 Suncor Energy Inc 13,347 Toronto-Dominion Bank Total Canada 180,931 0.07% 1,599,077 0.60% 523,041 0.19% 2,303,049 0.86% 6,279 0.00% 910,504 0.34% 916,783 0.34% 1,546,925 0.58% Cayman Island - 0.34% 1,216,746 GCL Poly Energy Holding Limited RTS 6,083,733 GCL-Poly Energy Holdings Ltd Total Cayman Island China - 0.87% 478,639 China Life Insurance 612,243 China South Locomotive and Rolling Stock Corp Total China 756,733 0.29% 2,303,658 0.87% 353,996 0.13% 353,996 0.13% Denmark - 0.13% 10,334 H Lundbeck A/S Total Denmark 97 SANLAM GLOBAL FUNDS PLC PORTFOLIO OF INVESTMENTS OF SANLAM BIFM WORLD EQUITY FUND (CONTINUED) as at 31 December 2015 Nominal Security Fair Value USD % of Net Assets 302,092 0.11% 302,092 0.11% Financial assets at fair value through profit or loss (continued) Equities - 75.14% (continued) Finland - 0.11% 42,183 Nokia OYJ Total Finland France - 6.12% 72,961 AXA Insurance 1,998,921 0.75% 47,071 BNP Paribas 2,669,691 1.00% 2,417 Cie Generale D’Optique Essilor International 301,961 0.11% 37,210 Compagnie De Saint-Gobain SA 1,610,184 0.61% 131,668 Credit Agricole SA 1,555,595 0.58% 1,025 Hermes International 346,991 0.13% 2,237 Ingenico 282,995 0.11% 10,952 Legrand SA 620,800 0.23% 23,412 Michelin Class B 2,234,678 0.84% 7,370 Safran SA 507,153 0.19% 15,063 Sanofi-Aventis 1,285,646 0.48% 13,750 Societe Generale 635,614 0.24% 16,479 Technip 818,403 0.31% 31,825 Total SA 1,426,060 0.54% 16,294,692 6.12% Total France Germany - 5.01% 14,907 Bayer AG 1,874,504 0.70% 1,997 Continental AG 486,943 0.18% 14,447 Deutsche Bank AG 353,370 0.13% 4,014 Fresenius Medical Care 0.13% 15,158 Heidelberg-Cement AG 338,808 1,244,704 28,940 Lanxess 1,341,252 0.50% 142,572 Lufthansa AG 2,254,926 0.85% 15,272 Merck KGAA 1,485,409 0.56% 52,091 Metro AG 1,672,071 0.63% 8,160 SAP SE 0.25% 16,728 Siemens AG 650,213 1,632,656 13,334,856 5.01% 431,701 0.16% Total Germany 0.47% 0.61% Great Britain - 11.31% 28,179 ARM Holdings Plc 233,259 Aviva Plc 1,774,722 0.67% 721,500 Barclays Plc 2,328,758 0.87% 22,940 BG Group Plc 333,175 0.13% 27,708 Bhp Billiton Plc 310,500 0.12% 98 SANLAM GLOBAL FUNDS PLC PORTFOLIO OF INVESTMENTS OF SANLAM BIFM WORLD EQUITY FUND (CONTINUED) as at 31 December 2015 Nominal Security Fair Value USD % of Net Assets 1,975,270 0.74% Financial assets at fair value through profit or loss (continued) Equities - 75.14% (continued) Great Britain - 11.31% (continued) 378,426 BP Plc 113,040 British Aerospace Plc 832,716 0.31% 31,195 Capita Group Plc 555,641 0.21% 10,393 Diageo 284,497 0.11% 79,951 GlaxoSmithKline 1,618,589 0.61% 318,431 HSBC Holdings Plc 2,536,016 0.95% 9,594 Imperial Tobaco Group 507,356 0.19% 144,689 ITV Plc 590,106 0.22% 146,957 Kingfisher PLC 713,983 0.27% 1,232,222 Lloyds Bank Plc 1,327,609 0.50% 230,826 Marks and Spencer Plc 1,539,748 0.58% 50,112 Noble Corp Plc 528,682 0.20% 115,599 Petrofac 1,356,780 0.51% 11,028 Reckitt Benckiser Group 1,021,334 0.38% 20,406 Prudential Corp 460,654 0.17% 67,729 Royal Dutch Plc 1,530,655 0.57% 106,452 SKY Plc 1,745,423 0.66% 161,637 Standard Chartered Plc 1,343,479 0.50% 701,875 Tesco Plc 1,547,188 0.58% 796,692 Vodafone Group Plc 2,596,121 0.98% 4,966 WHITBREAD PLC 322,255 0.12% 30,112,958 11.31% 1,199,378 0.45% 458,882 0.17% 1,111,966 0.42% Total Great Britain Hong Kong - 1.62% 199,488 AIA Group Ltd 40,648 China Mobile Hong Kong Ltd 571,527 China Resources Energy 3,262,681 China Telecom Corp LTD Total Hong Kong 1,532,250 0.58% 4,302,476 1.62% 2,312,500 0.87% Ireland - 1.67% 7,400 Allergan Plc 12,901 CRH Plc 22,764 Medtronic Plc Total Ireland 374,043 0.14% 1,751,007 0.66% 4,437,550 1.67% 599,445 0.23% Israel - 1.37% 7,366 Check Point Software Technologies 99 SANLAM GLOBAL FUNDS PLC PORTFOLIO OF INVESTMENTS OF SANLAM BIFM WORLD EQUITY FUND (CONTINUED) as at 31 December 2015 Nominal Security Fair Value USD % of Net Assets 3,046,090 1.14% 3,645,535 1.37% Financial assets at fair value through profit or loss (continued) Equities - 75.14% (continued) Israel - 1.37% (continued) 46,406 Teva Pharmaceutical Industries Ltd Total Israel Italy - 1.42% 10,591 Atlantia SpA 281,767 0.11% 64,382 ENI-Ente Nazionale Idrocarburi SpA 964,786 0.36% 372,994 Intesa Sanpaolo SpA 1,250,739 0.47% 230,258 Unicredit SpA 1,283,934 0.48% 3,781,226 1.42% Total Italy Japan - 5.45% 6,749 Bridgestone Corp 48,559 Canon Inc 234,226 0.09% 1,483,781 0.56% 2,182 4,372 Daikin Industries Ltd 161,486 0.06% Disco Corp 418,043 0.16% 1,700 Fanuc Ltd 297,963 0.11% 5,700 Fuji Heavy Industries Ltd 238,246 0.09% 12,500 KDDI Corp 327,804 0.12% 500 Keyence Corp 278,873 0.10% 111,016 Konica Minolta Inc 1,127,975 0.42% 37,214 Kubota Corp. 584,186 0.22% 1,840 Murata Manufacturing Co Ltd 217,005 Nissan Motor Co Ltd 31,400 32,127 268,802 0.10% 2,308,621 0.87% Orix Corp 447,881 0.17% Sekisui House Ltd 546,669 0.21% 12,800 Seven & I Holdings Co Ltd 590,671 0.22% 1,697 SMC Corp 448,272 0.17% 31,600 Softbank Corp 1,612,974 0.61% 13,846 Sumitomo Realty & Development Co Ltd 530,263 0.20% 26,559 Suntory Beverage & Food Ltd 1,174,806 0.44% 282,000 Toshiba Corp 585,947 0.22% 13,386 Toyota Motor Co Total Japan 833,411 0.31% 14,500,900 5.45% 815,868 0.31% 815,868 0.31% 854,627 0.32% Jersey Channel Islands - 0.31% 611,540 Glencore Plc Total Jersey Channel Islands Korea (South) - 1.16% 4,076 Hyundai Mobis 100 SANLAM GLOBAL FUNDS PLC PORTFOLIO OF INVESTMENTS OF SANLAM BIFM WORLD EQUITY FUND (CONTINUED) as at 31 December 2015 Nominal Security Fair Value USD % of Net Assets 2,221,752 0.84% 3,076,379 1.16% 742,233 0.28% 742,233 0.28% 232,176 0.09% 1,359,806 0.51% 523,634 0.20% Financial assets at fair value through profit or loss (continued) Equities - 75.14% (continued) Korea (South) - 1.16% (continued) 2,073 Samsung Electronics Co Ltd Total Korea (South) Luxembourg - 0.28% 104,360 Acergy SA Total Luxembourg Netherlands - 2.18% 10,344 ABN AMRO Group 239,435 Aegon NV 7,818 Akzo Nobel NV 1,675 ASML Holding NV 89,787 ING Groep NV 1,478 25,835 150,148 0.06% 1,213,865 0.45% LyondellBasell Industries NV 128,438 0.05% NN Group NV 913,160 0.34% 28,300 Qiagen N.V. 771,804 0.29% 7,322 Schlumberger Ltd 510,709 0.19% 5,803,740 2.18% Total Netherlands Norway - 0.74% 12,406 DNB ASA 153,658 0.06% 38,769 Statoil ASA 540,973 0.20% 75,855 Telenor ASA 1,268,956 0.48% 1,963,587 0.74% 670,358 0.25% 670,358 0.25% Total Norway Portugal - 0.25% 57,587 Galp Energia SGPS SA Total Portugal Singapore - 0.50% 38,278 DBS Bank Ltd 450,854 0.17% 343,247 Singapore Telecommunications Ltd 889,002 0.33% 1,339,856 0.50% 782,506 0.29% 782,506 0.29% 511,659 0.19% 511,659 0.19% Total Singapore Spain - 0.29% 70,751 Telefonica SA Total Spain Sweden - 0.19% 19,432 Getinge AB Total Sweden 101 SANLAM GLOBAL FUNDS PLC PORTFOLIO OF INVESTMENTS OF SANLAM BIFM WORLD EQUITY FUND (CONTINUED) as at 31 December 2015 Nominal Security Fair Value USD % of Net Assets 1,189,906 0.45% Financial assets at fair value through profit or loss (continued) Equities - 75.14% (continued) Switzerland - 3.29% 66,379 ABB Ltd 2,689 ACE Limited 314,210 0.12% 2,906 Basilea Pharmaceutica AG 279,317 0.10% 86,016 Credit Suisse Group AG 1,862,149 0.70% 3,539 Lonza AG 576,116 0.22% 10,705 Nestle SA 796,544 0.30% 4,965 Novartis AG 430,145 0.16% 9,079 Roche Holding AG genusschein 2,504,677 0.94% 3,009 Swiss RE AG 294,773 0.11% 1,293 Syngenta AG Total Switzerland 506,282 0.19% 8,754,119 3.29% 409,947 0.15% 409,947 0.15% Thailand - 0.15% 95,596 Bangkok Bank Public Co Total Thailand Unites States - 27.21% 35,843 Allegheny Technology 403,234 0.15% 4,620 Alphabet Inc Cl A 3,594,406 1.35% 1,555 Amazon.Com Inc 1,051,009 0.39% 17,956 American International Group 1,112,733 0.42% 16,017 Amgen Corp Com Npv 2,600,040 0.98% 30,880 Apache Corp 1,373,234 0.52% 12,264 Apple Inc 1,290,909 0.48% 56,768 Applied Material Inc Com Stk NPV 1,059,859 0.40% 31,616 Baker Hughes 1,459,078 0.55% 3,574 Ball Corp 259,937 0.10% 1,922 Blackrock Inc 654,479 0.25% 3,201 Boeing 462,833 0.17% 7,148 CABOT OIL & GAS CORP 126,448 0.05% 11,308 Capital One Financial Corp 816,211 0.31% 8,883 Carnival Corp 483,946 0.18% 2,359 Celgene Corp 282,514 0.11% 30,990 Chemtura Corporation 845,097 0.32% 88,539 Chesapeake Energy Corp 398,425 0.15% 3,941 Chevron Corp 354,532 0.13% 3,860 Cimarex Energy Co 345,007 0.13% 49,593 Cisco Systems Internetworking Ltd 1,346,698 0.51% 54,752 Citigroup Inc 2,833,416 1.06% 14,164 Coca-Cola Co 608,485 0.23% 102 SANLAM GLOBAL FUNDS PLC PORTFOLIO OF INVESTMENTS OF SANLAM BIFM WORLD EQUITY FUND (CONTINUED) as at 31 December 2015 Nominal Security Fair Value USD % of Net Assets 774,198 0.29% Financial assets at fair value through profit or loss (continued) Equities - 75.14% (continued) Unites States - 27.21% (continued) 12,899 Cognizant Tech Solutions CRP 4,885 Colgate-Palmolive Com 51,454 Comcast Corp 4,862 8,657 325,439 0.12% 2,903,549 1.09% Costco Wholesale Corp 785,213 0.29% CVS Health Corporation 846,395 0.32% 7,114 Danaher Corp 660,748 0.25% 175,392 Denbury Resources Inc. 354,292 0.13% 7,660 Devon Energy Corporation 245,120 0.09% 9,966 Discover Financial Services 534,377 0.20% 5,965 Dow Chemical Co 307,078 0.12% 10,990 Eastman Chemical Co 741,935 0.28% 2,920 Electronic Arts Inc 200,662 0.08% 5,351 Estee Lauder Cos 471,209 0.18% 4,652 Extra Space Storage 410,353 0.15% 7,389 Exxon Corp 575,973 0.22% 3,484 Facebook Inc 364,635 0.14% 2,448 FDX Corp 364,728 0.14% 22,361 Fifth Third Bancorp 449,456 0.17% 2,521 Foot Locker Inc 164,092 0.06% 29,991 General Motors Co 1,019,994 0.38% 30,166 Gilead Sciences Inc 3,052,498 1.15% 24,846 Halliburton Co 845,758 0.32% 55,190 Hewlett Packard Enterprise 838,888 0.31% 5,533 Home Depot 731,739 0.27% 33,480 HP Inc 396,403 0.15% 1,784 International Flavors & Fragrances Inc 213,438 0.08% 14,727 Interpublic Group Cos. Inc. 342,845 0.13% 4,366 Johnson & Johnson 448,476 0.17% 2,277 JONES LANG LASALLE INC 364,001 0.14% 34,259 JP Morgan Chase & Co 2,262,122 0.85% 46,830 Knowles Corporation 624,244 0.23% 7,790 Lilly (Eli) & Co 656,385 0.25% 537 LinkedIn Corp 120,868 0.05% 30,463 Macy’s Inc 1,065,596 0.40% 9,973 Mastercard Inc 970,971 0.36% 757 Mckesson Corp 149,303 0.06% 15,252 Merck & Co 805,611 0.30% 3,498 Metlife Inc 168,639 0.06% 51,568 Microsoft Corp 2,860,993 1.07% 2,332 Mohawk Industries Inc 441,657 0.17% 103 SANLAM GLOBAL FUNDS PLC PORTFOLIO OF INVESTMENTS OF SANLAM BIFM WORLD EQUITY FUND (CONTINUED) as at 31 December 2015 Nominal Security Fair Value USD % of Net Assets 271,775 0.10% 1,393,787 0.52% 458,031 0.17% Financial assets at fair value through profit or loss (continued) Equities - 75.14% (continued) Unites States - 27.21% (continued) 6,061 Mondelez International Inc 43,816 Morgan Stanley 7,874 Nasdaq OMX Group Inc 130,825 News Corporation 1,747,822 0.66% 31,490 Oracle Corp 1,150,330 0.43% 2,217 O’Reilly Automotive Inc 62,710 Pfizer Inc 3,543 8,860 11,774 Sealed Air Corp. 10,270 Stanley Black & Decker Inc 7,090 4,435 7,224 Thermo Fisher Scientific Inc 8,591 TJX Cos Inc 2,950 31,755 561,832 0.21% 2,024,279 0.76% Procter & Gamble Co 281,350 0.11% Rockwell Collins 817,778 0.31% 525,120 0.20% 1,096,117 0.41% Starbucks Corp. 425,613 0.16% Texas Instruments Inc 243,082 0.09% 1,024,724 0.38% 609,188 0.23% Tripadvisor Inc. 251,487 0.09% Twenty First Century Fox Inc 862,466 0.32% 1,242 Ultimate Software Group Inc 242,823 0.09% 6,786 United Healthcare Corp 798,305 0.30% 3,406 United TechnologiesCorp 327,214 0.12% 6,944 Vantiv Inc Class A Shares 329,284 0.12% 19,272 Voya Financial Inc 17,968 Walgreens Boots Alliance Inc 5,167 11,088 711,330 0.27% 1,530,065 0.57% Walt Disney Co 542,948 0.20% Wells Fargo & Co 602,745 0.23% 72,451,906 27.21% 200,049,133 75.14% 15,434,368 5.80% 28,207,168 Sanlam World Equity Fund 48,978,925 18.39% Total Collective Investment Schemes 64,413,293 24.19% 264,462,426 99.33% Cash and cash equivalents 1,943,377 0.73% Other net assets and liabilities (130,553) (0.06)% 266,275,250 100.00% Total Unites States Total Equities Collective Investment Schemes - 24.19% 863,060 Aberdeen Global - World Equity Fund Total financial assets at fair value through profit or loss Net assets attributable to holders of redeemable participating shares 104 SANLAM GLOBAL FUNDS PLC PORTFOLIO OF INVESTMENTS OF SANLAM BIFM GLOBAL FIXED INCOME FUND as at 31 December 2015 Nominal Security Fair Value USD % of Net Assets Financial assets at fair value through profit or loss Collective Investment Schemes – 99.10% 213,843 PIMCO Global Investors Series Plc – Global High Yield Bond Fund 20,631,844 Sanlam Global Bond Fund 4,197,737 13.39% 26,870,914 85.71% Total Collective Investment Schemes 31,068,651 99.10% Total financial assets at fair value through profit or loss 31,068,651 99.10% Cash and cash equivalents 354,899 1.13% Other net assets and liabilities (72,937) (0.23)% 31,350,613 100.00% Net assets attributable to holders of redeemable participating shares 105 SANLAM GLOBAL FUNDS PLC PORTFOLIO OF INVESTMENTS OF MPILE GLOBAL EQUITY FUND as at 31 December 2015 Fair Value USD % of Net Assets 18,693,671 4,411 73.88% 0.02% 6,429,305 25.41% Total Collective Investment Schemes 25,127,387 99.31% Total financial assets at fair value through profit or loss 25,127,387 99.31% Nominal Security Financial assets at fair value through profit or loss Collective Investment Schemes – 99.31% 1,270,814 484 BlackRock Global Funds - Global Equity Income Fund Franklin Templeton Global Equity Income Fund 5,411,418 Sanlam World Equity Tracker Fund Cash and cash equivalents 196,868 0.78% Other net assets and liabilities (21,742) (0.09)% 25,302,513 100.00% Net assets attributable to holders of redeemable participating shares 106 SANLAM GLOBAL FUNDS PLC PORTFOLIO OF INVESTMENTS OF BRACKENHAM GLOBAL BALANCED FUND as at 31 December 2015 Nominal Security Fair Value USD % of Net Assets 137,739 0.79% 137,739 0.79% Financial assets at fair value through profit or loss Equities - 52.82% China - 0.79% 2,100 Petrochina Co Ltd Total China Germany - 1.58% 1,200 Bayer AG 150,896 0.87% 5,000 Deutsche Bank AG 122,299 0.71% 273,195 1.58% Total Germany Great Britain - 8.47% 45,000 GlaxoSmithKline 911,015 5.25% 23,244 HSBC Holdings 183,772 1.06% 80,000 Intu Properties Plc Total Great Britain 374,285 2.16% 1,469,072 8.47% 262,656 1.52% 262,656 1.52% 140,987 0.81% 140,987 0.81% 142,436 0.82% 142,436 0.82% 470,360 2.71% 470,360 2.71% Hong Kong - 1.52% 43,200 Dairy Farm Intl Total Hong Kong Korea (South) - 0.81% 5,000 KB Financial Group Inc Total Korea (South) Norway - 0.82% 11,500 DNB ASA Total Norway Singapore - 2.71% 430,000 Suntec Real Estate Investment Trust Total Singapore Switzerland - 8.79% 8,000 Nestle SA 595,269 3.43% 2,750 Novartis AG 238,247 1.37% 625 Roche Holding AG genusschein 172,422 1.00% 1,325 Syngenta AG Total Switzerland 518,812 2.99% 1,524,750 8.79% Unites States - 27.33% 600 Alphabet Inc Cl A 466,806 2.69% 3,300 American International Group 204,501 1.18% 2,650 Amgen Corp Com Npv 430,175 2.48% 107 SANLAM GLOBAL FUNDS PLC PORTFOLIO OF INVESTMENTS OF BRACKENHAM GLOBAL BALANCED FUND (CONTINUED) as at 31 December 2015 Nominal Security Fair Value USD % of Net Assets Financial assets at fair value through profit or loss (continued) Equities - 52.82% (continued) Unites States - 27.33% (continued) 1,875 Berkshire Hathaway Inc. 247,575 1.43% 4,850 Brown-Forman Corp-Cl B 481,508 2.78% 8,750 Cisco Systems Internetworking Ltd 237,606 1.37% 5,625 Conocophillips Co 262,631 1.51% 24,500 General Electric Co 763,175 4.40% 1,500 Intl Business Machine Corp 206,430 1.19% 2,650 Johnson & Johnson 272,208 1.57% 10,000 Microsoft Corp 554,800 3.20% 3,250 Oracle Corp Com 162,451 0.94% 8,250 Wells Fargo & Co 448,471 2.59% Total Unites States 4,738,337 27.33% Total Equities 9,159,532 52.82% Collective Investment Schemes - 5.38% 11,806 Orbis SICAV - Japan Equity Fund 426,884 2.46% 35,714 Orbis Optimal SA Fund Ltd 506,429 2.92% 933,313 5.38% Total Collective Investment Schemes Exchange Traded Funds - 4.24% 7,600 iShares MSCI South Korea Index Fund 377,492 2.18% 28,000 Ishares MSCI Taiwan Index Fund 357,560 2.06% 735,052 4.24% 10,827,897 62.44% Total Exchange Traded Funds Total financial assets at fair value through profit or loss 1 Cash and cash equivalents Other net assets and liabilities Net assets attributable to holders of redeemable participating shares 1 6,510,846 949 37.55% 17,339,692 100.00% 0.01% The cash balances are held through the Depositary’s sweep account with overnight deposits in the amount of USD 3,140,400 held with Citibank, USD 3,140,400 held with Societe Generale and USD 230,046 held with JPM Chase. 108 SANLAM GLOBAL FUNDS PLC PORTFOLIO OF INVESTMENTS OF APS GLOBAL FLEXIBLE FUND OF FUNDS as at 31 December 2015 Nominal Security Fair Value USD % of Net Assets Financial assets at fair value through profit or loss Collective Investment Schemes – 95.03% 791,378 Coronation Global Managed Fund 8,261,428 18.06% 418,944 Investec Global Multi Asset Income Fund 9,019,864 19.72% 337,387 Investec Global Strategic Managed Fund 8,056,805 17.61% 4,772,616 Nedgroup Global Equity Fund 6,938,429 15.17% 7,520,185 Nedgroup Global Flexible Fund 8,351,166 18.26% 256,835 Sarasin IE Real Estate Equity Global 2,842,910 6.21% Total Collective Investment Schemes 43,470,602 95.03% Total financial assets at fair value through profit or loss 43,470,602 95.03% Cash and cash equivalents Other net assets and liabilities Net assets attributable to holders of redeemable participating shares 109 2,306,405 5.04% (34,287) (0.07)% 45,742,720 100.00% SANLAM GLOBAL FUNDS PLC PORTFOLIO OF INVESTMENTS OF COUNTERPOINT GLOBAL EQUITY FUND as at 31 December 2015 Nominal Security Fair Value USD % of Net Assets 213,527 1.51% 213,527 1.51% Financial assets at fair value through profit or loss Equities - 89.32% Bermuda - 1.51% 15,133 Textainer Group Holdings Ltd Total Bermuda Cayman Island - 4.71% 1,575 Baidu Com Inc 297,738 2.10% 13,214 Noah Holdings Ltd 369,067 2.61% 666,805 4.71% 328,733 2.32% 328,733 2.32% 153,216 1.08% 153,216 1.08% Total Cayman Island Denmark - 2.32% 5,660 Novo Nordisk A/S Total Denmark Germany - 1.08% 28,800 Porsche Automobil Holding SE Total Germany Great Britain - 2.55% 4,279 Diageo 117,133 0.83% 6,020 London Stock Exchange Group Plc 243,570 1.72% 360,703 2.55% 168,102 1.19% 168,102 1.19% Total Great Britain Hong Kong - 1.19% 6,600 Hong Kong Exhanges & Clearing Limited Total Hong Kong Japan - 2.50% 7,100 Nidec Corporation 129,504 0.91% 8,910 Softbank Group Corp 224,398 1.59% 353,902 2.50% 412,406 2.91% 412,406 2.91% 292,098 2.06% 292,098 2.06% Total Japan Netherlands - 2.91% 9,520 Unilever NV Total Netherlands Switzerland - 2.06% 3,925 Nestle SA-Spons Adr For Reg Total Switzerland Unites States - 68.49% 1,780 Adobe Systems Inc 167,213 1.18% 4,650 ADT Corp 153,357 1.08% 110 SANLAM GLOBAL FUNDS PLC PORTFOLIO OF INVESTMENTS OF COUNTERPOINT GLOBAL EQUITY FUND (CONTINUED) as at 31 December 2015 Nominal Security Fair Value USD % of Net Assets Financial assets at fair value through profit or loss (continued) Equities - 89.32% (continued) Unites States - 68.49% (continued) 4,142 Akamai Technologies Inc 217,993 1.54% 720 Alphabet Inc Cl C 546,394 3.86% 968 Amazon.Com Inc 654,262 4.62% 452 Amerco 176,054 1.24% 4,067 American Airlines Group Inc 172,237 1.22% 2,648 Apple Inc 278,728 1.97% 1,585 Becton Dickinson & Co 244,233 1.73% 2,805 Berkshire Hathaway Inc. 370,372 2.62% 2,213 Brown-Forman Corp-Cl B 219,707 1.55% 5,250 CF Industries Holdings Inc 214,252 1.51% 6,298 Coca-Cola Co 270,562 1.91% 3,700 Davita Inc 257,927 1.82% 5,100 eBay Inc. 140,148 0.99% 1,890 Facebook Inc 197,807 1.40% 1,720 FDX Corp 256,263 1.81% 3,400 First Solar Inc 224,366 1.58% 2,532 Gilead Sciences Inc 256,213 1.81% 1,440 Goldman Sachs Group Inc 259,531 1.83% 790 Intl Business Machine Corp 108,720 0.77% 2,568 Johnson & Johnson 263,785 1.86% 4,040 Marriott International Inc. 270,842 1.91% 7,370 Mastercard Inc 717,543 5.07% 3,500 Nasdaq OMX Group Inc 203,595 1.44% 5,775 Paypal Holdings Inc 209,055 1.48% 330 Priceline Group Incorporated 420,733 2.97% 2,177 Procter & Gamble Co 172,876 1.22% 4,260 Starbucks Corp. 255,728 1.81% 9,960 Superior Uniform Group Inc 169,121 1.19% 1,700 Tempur-Pedic International Inc 119,782 0.85% 3,763 TJX Cos Inc 266,834 1.88% 3,510 Union Pacific Corp 274,482 1.94% 6,365 Visa Inc 493,606 3.49% 3,569 Wal-Mart Stores Inc. 218,780 1.55% 4,650 Wells Fargo & Co 252,774 1.79% 9,695,875 68.49% Total Equities 12,645,367 89.32% Total financial assets at fair value through profit or loss 12,645,367 89.32% Total Unites States 111 SANLAM GLOBAL FUNDS PLC PORTFOLIO OF INVESTMENTS OF COUNTERPOINT GLOBAL EQUITY FUND (CONTINUED) as at 31 December 2015 Nominal Security % of Net Assets Fair Value USD 1 Cash and cash equivalents Other net assets and liabilities Net assets attributable to holders of redeemable participating shares 1 1,531,773 10.82% (19,551) (0.14)% 14,157,589 100.00% The cash balances are held through the Depositary’s sweep account with overnight deposits in the amount of USD 1,531,773 held with Societe Generale. 112 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS for the year ended 31 December 2015 1 General – The Company Sanlam Global Funds plc (the “Company”) is an investment company with variable capital and was incorporated on 11 June 1999 with registration number 307841 under the laws of Ireland and authorised under Part 24 of the Companies Act, 2014 as a designated open-ended investment company pursuant to Section 1395 of that Act. The Company is domiciled in Ireland. The Company is authorised by the Central Bank of Ireland as a Retail Investor Alternative Investment Fund (“RIAIF”) in accordance with the Alternative Investment Fund Managers Directive (“AIFMD”). In order to comply with the requirements of AIFMD, the Manager is the Alternative Investment Fund Manager (“AIFM”). At 31 December 2015, the Company comprised fifteen separate active investment sub-funds (“Fund(s)”). The Articles of Association of the Company provides segregated liability between the various Funds. A list of Funds active during the year and their status at the year end is set out below: Name Status at 31 December 2015 Analytics International Flexible Fund Sanlam Global Balanced Fund Sanlam Global Best Ideas Feeder Fund Sanlam Global Equity Fund Sanlam Euro Liquidity Fund Sanlam Sterling Liquidity Fund Sanlam Global Liquidity Fund Sanlam US Dollar Liquidity Fund Sanlam International Multi Asset I Fund Verso Global Flexible Fund NFB Global Balanced Fund of Funds Sanlam BIFM Emerging Markets Equity Fund Sanlam BIFM World Equity Fund Sanlam BIFM Global Fixed Income Fund Sanlam BIFM South Africa Inflation Linked Bond Fund Mpile Global Equity Fund Brackenham Global Balanced Fund APS Global Flexible Fund of Funds Counterpoint Global Equity Fund Active Active Active Active Active Active Active Active Closed 02 February 2015 Closed 16 March 2015 Active Closed 27 May 2015 Active Active Closed 02 March 2015 Active Active – launched 19 March 2015 Active – launched 07 May 2015 Active – launched 02 June 2015 Prices There is a single price for buying, selling and switching Share classes in each Fund. This is represented by the Net Asset Value per Share class of the relevant Fund. In the case of subscriptions, a preliminary charge of up to 5% may be added to the Net Asset Value per Share class of all Funds. A conversion fee of up to 2% may be charged on applications to convert Shares of any class to Shares of another class. A repurchase fee of up to 3% may be deducted from the Net Asset Value per Share class of all Funds. Details of the charges applicable to each Fund are detailed in the Fund supplements. Dealing The Dealing Day is, except where otherwise clarified in the Prospectus or sub-fund supplement, any day other than Saturday or Sunday on which banks are open for business in Dublin. The valuation point is, except where otherwise clarified in the Prospectus or sub-fund supplement, the close of business in each relevant market on the business day immediately preceding a dealing day. 113 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 1 General – The Company (continued) Shares Applications for shares must be sent so as to arrive at the Registrar and Transfer Agent's office, no later than 4.00pm (Irish time) on the business day preceding the relevant dealing day, or such later time as the Directors may from time to time permit. Applications which are received late, or funds which are not cleared by the relevant time, will be held over and invested at the next dealing day. Requests for repurchases should be sent so as to arrive at the Registrar and Transfer Agent's office by post, facsimile or telex by no later than 4.00pm on the business day preceding the relevant dealing day. As at 31 December 2015, the following Share classes were admitted to the official list of the Irish Stock Exchange. Fund Share Class Launched Analytics International Flexible Fund A 14 December 2012 Sanlam Global Balanced Fund A B C 05 May 2001 30 July 1999 30 July 1999 Sanlam Global Best Ideas Feeder Fund A B C 16 August 2004 16 August 2004 16 August 2004 Sanlam Global Equity Fund A B C 16 August 1999 17 November 2000 20 July 2000 Sanlam Euro Liquidity Fund A B C 29 September 2008 29 September 2008 29 September 2008 Sanlam Sterling Liquidity Fund A B C 29 September 2008 29 September 2008 29 September 2008 Sanlam Global Liquidity Fund A B C 16 August 2004 16 August 2004 16 August 2004 Sanlam US Dollar Liquidity Fund A B C 29 September 2008 29 September 2008 29 September 2008 114 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 1 General – The Company (continued) Shares (continued) Fund Share Class Launched NFB Global Balanced Fund of Funds A B C 02 September 2013 02 September 2013 27 June 2014 Sanlam BIFM World Equity Fund A B 04 November 2013 04 November 2013 Sanlam BIFM Global Fixed Income Fund A B C 04 November 2013 04 November 2013 29 September 2014 Mpile Global Equity Fund A B C 23 May 2014 23 May 2014 23 May 2014 Brackenham Global Balanced Fund A B 12 June 2015 19 March 2015 APS Global Flexible Fund of Funds A B 07 May 2015 07 May 2015 Minimum Subscription The minimum initial investment for each of the Funds is as follows: Class A Shares USD Class B Shares USD Class C Shares USD Class D Shares USD Analytics International Flexible Fund 10,000 N/A N/A N/A Sanlam Global Equity Fund 1,000 350,000 400,000 N/A Sanlam Global Best Ideas Feeder Fund 1,000 750,000 1,000,000 N/A Sanlam Global Balanced Fund 1,000 350,000 400,000 1,500,000 Class A Shares USD Class B Shares USD Class C Shares USD Sanlam Euro Liquidity Fund 1,000 1,000,000 5,000,000 Sanlam Sterling Liquidity Fund 1,000 1,000,000 5,000,000 Sanlam Global Liquidity Fund 1,000 1,000,000 5,000,000 Sanlam US Dollar Liquidity Fund 1,000 1,000,000 5,000,000 115 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 1 General – The Company (continued) Shares (continued) Minimum Subscription (continued) Class A Shares USD Class B Shares USD Class C Shares USD Class D Shares USD Class G Shares USD NFB Global Balanced Fund of Funds 20,000 1,000,000 20,000 N/A N/A Sanlam BIFM World Equity Fund 1,000 1,000,000 5,000,000 50,000,000 N/A Sanlam BIFM Global Fixed Income Fund 1,000 1,000,000 5,000,000 50,000,000 3,000,000 Class A Shares USD Class B Shares USD Brackenham Global Balanced Fund 10,000 100,000 APS Global Flexible Fund of Funds 5,000 10,000 Counterpoint Global Equity Fund 30,000 10,000 Mpile Global Equity Fund 1,000 N/A 1,000,000 10,000,000 N/A The minimum additional investment for the Class A shares of Analytics International Flexible Fund is USD 1,000.The minimum additional investment amount for the Class A shares of Sanlam Global Equity Fund and Sanlam Global Balanced Fund is USD 300, The minimum additional investment amount for each of the Class A, Class B and Class C shares of NFB Global Balanced Fund of Funds is USD 5,000. There is no minimum additional investment amount required for any of the other share classes of the Funds. 2 Significant accounting policies (a) Basis of preparation The financial statements have been prepared in accordance with Irish Statute comprising the Companies Act 2014 under the historical cost convention as modified by the revaluation of financial assets and financial liabilities held at fair value through profit or loss. The financial statements are prepared in US Dollars (“USD”) and on a going concern basis. These financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as adopted by the European Union (“EU”) and interpretations adopted by the International Accounting Standard Board (“IASB”). The principle accounting policies adopted in the preparation of the financial statements are set out overleaf. All references to net assets throughout this document refer to net assets attributable to holders of redeemable participating shares, unless otherwise stated. The Statement of Financial Position presents assets and liabilities in decreasing order of liquidity and does not distinguish between current and non-current items. 116 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 2 Significant accounting policies (continued) (b) Significant accounting judgments and estimates The preparation of the Company’s financial statements requires management to make judgments, estimates and assumptions that affect the amounts recognised in the financial statements. However, uncertainty about these assumptions and estimates could result in outcomes that could require a material adjustment to the carrying amount of the asset or liability affected in the future. 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, the 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. Fair value of financial instruments When the fair value of financial assets and financial liabilities recorded in the Statement of Financial Position cannot be determined based on quoted prices in an active market, they are determined using an appropriate valuation technique. The valuation techniques employed by the Company and the judgements, estimates and assumptions associated with them are disclosed in note 2(d). Investment entity status The Company’s management has determined that the Company has all of the typical characteristics of an investment entity as set out in paragraph 27 of IFRS 10. (c) Income recognition Interest income and expense are recognised in the Statement of Comprehensive Income using the using the effective interest rate method. Dividends are recognised as income on the dates the securities are first quoted “ex dividend” to the extent that information thereon is reasonably available to the relevant Fund. Bank deposit interest and other income are accounted for on an accruals basis. Income which is subject to a deduction of tax at source is shown gross of such withholding tax. Withholding tax recoverable is accounted for on a receipts basis. Franked investment income (which comprises most of the UK source dividend income) is shown net of the notional tax credit. (d) Investment transactions and valuations (i) Classification In accordance with IAS 39, Financial Instruments: Recognition and Measurement (“IAS 39”), the Funds have classified all of their investments as financial assets and liabilities at fair value through profit or loss. The categories of financial assets and financial liabilities at fair value through profit or loss comprise: Financial assets or financial liabilities held for trading: these are instruments which are either acquired for generating a profit from short-term fluctuations in price or dealer margins, or are included in a portfolio where a pattern of short-term trading exists. Under IAS 39, derivatives and short positions are always classified as held for trading. All derivatives in a net receivable position (positive fair value) are reported as financial assets. All derivatives in a net payable position (negative fair value) are reported as financial liabilities. 117 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 2 Significant accounting policies (continued) (d) Investment transactions and valuations (continued) (i) Classification (continued) Financial assets or financial liabilities designated at fair value through profit or loss upon initial recognition: Financial assets are designated at fair value through profit or loss upon initial recognition if the investments are managed and purchase and sale decisions are made based on their fair value in accordance with the Funds’ documented risk management or investment strategy. At 31 December 2015 and 31 December 2014, the Funds classified their investments as held for trading. All other financial assets are classified as loans and receivables and are carried at amortised cost using the effective interest rate method, less impairment losses, if any. Financial liabilities that are not held for trading comprise balances due to brokers and all other liabilities. These are carried at amortised cost using the effective interest rate method, less impairment losses, if any. (ii) Recognition The Company recognises financial assets and financial liabilities on the date it becomes a party to the contractual provisions of the instrument. A regular way purchase of financial assets is recognised using trade date accounting. From this date any gains or losses arising from changes in the fair value of the financial assets or financial liabilities are recorded in profit or loss in the Statement of Comprehensive Income. Financial liabilities are not recognised unless one of the parties has performed or the contract is a derivative contract not exempted from the scope of IAS 39. (iii) Measurement and fair value measurement principles Initial measurement Financial instruments are measured initially at fair value (transaction price) plus, in the case of financial assets or financial liabilities not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition or issue of the financial assets or financial liabilities. Transaction costs on financial assets or financial liabilities at fair value through profit or loss are expensed immediately while on other financial instruments they are amortised. Transaction costs are included within commission and other charges in the Statement of Comprehensive Income. Subsequent measurement Subsequent to initial recognition, financial assets and financial liabilities at fair value through profit or loss are measured at fair value, with changes in their fair value recognised as gains or losses in the Statement of Comprehensive Income in the period in which they arise. Loans and receivables are measured at amortised cost using the effective interest rate method, less impairment losses, if any. Financial liabilities that are not at fair value through profit or loss are measured at amortised cost using the effective interest rate method. Financial liabilities arising from the redeemable shares issued by the Funds are carried at the redemption amount representing the investor’s right to a residual interest in the Funds’ assets. 118 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 2 Significant accounting policies (continued) (d) Investment transactions and valuations (continued) (iii) Measurement and fair value measurement principles (continued) Fair value measurement principles In accordance with IFRS 13, Fair value measurement (“IFRS 13”), the fair value of financial assets and financial liabilities traded in active markets (such as publicly traded derivatives, trading securities and exchange-traded funds) are based on the last reported sales price at the close of trading on the reporting date, if the last reported sales price falls within the bid-ask spread. However, if the last reported sales price falls outside the bid-ask spread, Management will determine the point within the bid-ask spread that is most representative of fair value. Assets not listed, or traded on any stock exchange or over-the-counter (“OTC”) market, are valued at their fair value as determined with care and in good faith by the AIFM in consultation with the relevant Investment Manager. Collective investment schemes – investments in open-ended collective investment schemes are valued at the latest available unaudited net asset value. Closed ended schemes which are traded as liquid schemes are valued at bid price at the year-end or if unavailable, a mid-quotation from a broker or, if unavailable or unrepresentative, the latest available unaudited net asset value as deemed relevant to the collective investment scheme. Derivative instruments – exchange-traded derivative instruments are valued at the settlement price for such instruments as determined on the specific market. If such a price is not available the fair value shall be the probable realisation value estimated by the the AIFM, consulting where appropriate with Investment Manager. OTC derivative instruments are valued at the settlement price as provided by the counterparty and verified by the AIFM on a monthly basis, or by a competent person appointed by the AIFM and approved for such a purpose by the Depositary. Such competent person may be the relevant Investment Manager provided that he is independent of the counterparty. Forward foreign exchange contracts are valued with reference to the prevailing market maker quotations, namely the price at which a new forward contract of the same maturity could be undertaken or, if unavailable, at the settlement price provided by the counterparty. 119 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 2 Significant accounting policies (continued) (d) Investment transactions and valuations (continued) (iv) Derecognition The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition in accordance with IAS 39. A financial liability is derecognised when the obligation specified in the contract is discharged, cancelled or expired. The Company uses the first-in-first-out (“FIFO”) method to determine realised gains and losses on derecognition. Realised gains and losses on derecognition are included in the Statement of Comprehensive Income. (v) Offsetting financial instruments Financial assets and financial liabilities are offset and the net amount reported in the Statement of Financial Position when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and liability simultaneously. (e) Foreign currency translation Functional and presentation currency Items included in each Fund’s financial statements are measured using the currency of the primary economic environment in which it operates (‘the functional currency’). US Dollar (“USD”) is the functional currency of Analytics International Flexible Fund, Sanlam Global Balanced Fund, Sanlam Global Best Ideas Feeder Fund, Sanlam Global Equity Fund, Sanlam Global Liquidity Fund, Sanlam US Dollar Liquidity Fund, Sanlam International Multi-Asset I Fund, Verso Global Flexible Fund, NFB Global Balanced Fund of Funds, Sanlam BIFM Emerging Markets Equity Fund, Sanlam BIFM World Equity Fund, Sanlam BIFM Global Fixed Income Fund, Sanlam BIFM South Africa Inflation Linked Bond Fund, Mpile Global Equity Fund, Brackenham Global Balanced Fund, APS Global Flexible Fund of Funds and Counterpoint Global Equity Fund. Euro (“EUR”) is the functional currency of Sanlam Euro Liquidity Fund. Pound Sterling (“GBP”) is the functional currency of Sanlam Sterling Liquidity Fund. The functional currency of each Fund reflects the primary denomination of the securities and derivatives in which it invests. The Company has adopted USD as its presentation currency. Where necessary, each Fund’s financial position is translated from its functional currency to the presentation currency, as follows: assets and liabilities, including net assets attributable to holders of redeemable participating shares, are translated at the closing rate at each reporting date. Exchange differences arising between the rate of translation of subscriptions and the holders of redeemable participating shares; and income and expenses for each Statement of Comprehensive Income are translated at average exchange rates. 120 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 2 Significant accounting policies (continued) (e) Foreign currency translation (continued) Transactions and balances 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. Proceeds from subscriptions and amounts paid on redemption of redeemable participating shares are translated at monthly average rates, which approximate the rates prevailing at the dates of the transactions. Translation differences on non-monetary items, such as equities, held at fair value through profit and loss are reported as part of their fair value gain or loss. (f) Cash and cash equivalents Cash and cash equivalents include cash in hand, deposits held at call with banks and other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts are included within liabilities. (g) Margin accounts Margin accounts represent the exchange-traded futures contracts margin deposit amounts held with brokers. (h) Distribution Policy The Directors have no current intention to make distributions from any Fund. All such profits shall be retained in the relevant Fund. (i) Consolidation The Company has determined that it is an investment entity in accordance with IFRS 10, Consolidated Financial Statements and Investment Entities Amendments to IFRS 10, IFRS 12 and IAS 27. Information about the significant judgements and assumptions made in determining that the Company is an investment entity is disclosed in note 2(b). As an investment entity, the Company is required to account for its investment in subsidiaries, if any, at fair value through profit or loss. The Company does not present consolidated financial statements since it is required to measure all of its subsidiaries at fair value through profit or loss. (j) Changes in accounting policy and disclosures Standards and amendments to existing standards effective 1 January 2015 There were no standards and amendments to existing standards effective 1 January 2015, relevant to investment entities. 121 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 2 Significant accounting policies (continued) (k) Standards, interpretations and amendments to published standards that are not yet effective The following new standards, amendments to standards and interpretations that may be relevant to investment funds have been issued to date and are not yet effective for these financial statements of the Company for the year ended 31 December 2015, and have not been applied nor early adopted in preparing these financial statements: Effective date Standard: Narrative: Annual periods beginning on or after IFRS 9 Financial Instruments: Classification and 1 January 2018 Measurement IFRS 9 Financial Instruments: Classification and Measurement (“IFRS 9”) IFRS 9, issued on 24 July 2014 is the IASB’s replacement of IAS 39. IFRS 9 includes requirements for recognition and measurement, impairment, derecognition and general hedge accounting. The IASB completed its project to replace IAS 39 in phases, adding to the standard in each phase. The complete standard issued on 24 July 2014 includes requirements previously issued and additional amendments to incorporate a new expected loss impairment model and to introduce limited amendments to the classification and measurement requirements for financial assets. This version of IFRS 9 supersedes all previous versions and is mandatorily effective for periods beginning on or after 1 January 2018 with early adoption permitted (subject to local endorsement requirements). For a limited period, previous versions of IFRS 9 may be adopted early if not already done so provided the relevant date of initial application is before 1 February 2015. IFRS 9 uses business models and contractual cash flow characteristics to determine whether a financial asset is measured at amortised cost, fair value through profit or loss or fair value through other comprehensive income, replacing the four category classification in IAS 39. The approach is also based on how an entity manages its financial instruments (its business model) and the contractual cash flow characteristics of the financial assets. Most of the requirements for financial liabilities were carried forward unchanged from IAS 39. However, some changes were made to the fair value option for financial liabilities to address the issue of own credit risk. IFRS 9 introduces a substantially-reformed model for hedge accounting with enhanced disclosures about risk management activity. As part of IFRS 9, the IASB has introduced a new, expected loss impairment model that will require more timely recognition of expected credit losses. Specifically, the new standard requires entities to account for expected credit losses from when financial instruments are first recognised and it lowers the threshold for recognition of full lifetime expected losses. Paragraph 31 of IAS 8 Accounting Polices, Change in Accounting Estimates and Errors states that financial statements disclose either: (i) (ii) a discussion of the impact that initial application of the IFRS is expected to have on the entity’s financial statements; or if that impact is not known or reasonably estimable, a statement to that effect. Based on an initial assessment, IFRS 9 is not expected to have a material impact on the financial statements of the Company as financial instruments that are currently measured at fair value through profit or loss will continue to be measured at fair value through profit or loss under IFRS 9. Similarly, those financial instruments currently measured at amortised cost will continue to be measured at amortised cost under IFRS 9. 122 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 3 Taxation The Company qualifies as an investment undertaking as defined in Section 739B of the Taxes Consolidation Act, 1997, as amended. It is not chargeable to Irish tax on its income or gains. Tax may arise on the happening of a chargeable event. A chargeable event includes any distribution payments to shareholders or any other encashment, redemption or transfer of shares. No tax will arise on the Company in respect of chargeable events in respect of: a shareholder who is not an Irish resident and not ordinarily resident in Ireland for tax purposes, at the time of the chargeable event, provided the necessary signed statutory declarations are held by the Company; and certain exempted Irish resident investors who have provided the Company with the necessary signed statutory declarations. Following legislative changes in the Finance Act 2006, the holding of shares at the end of a Relevant Period will, in respect of Irish Resident investors, also constitute a chargeable event. To the extent that any tax issues arise on such a chargeable event, such tax will be allowed as a credit against any tax payable on the subsequent encashment, redemption, cancellation of the relevant Shares. Relevant Period is defined as a period of 8 years, beginning with the acquisition of a Share by a shareholder and each subsequent period of 8 years beginning immediately after the preceding Relevant Period. Dividend income, interest and capital gains received by the Company may be subject to nonrecoverable withholding tax in the countries of origin. 4 Share Capital Authorised Share Capital The authorised share capital of the Company is 1,000,000,000,000 shares of no par value. Subscriber Shares The equity share capital of the Company is USD 7 represented by Subscriber Shares issued for the purposes of incorporation of the Company. These Shares are beneficially owned by the Manager. The Manager is an ultimate subsidiary of Sanlam Limited. The holder or holders of Subscriber Shares are entitled to one vote only in respect of all Subscriber Shares. The Subscriber Shares do not form part of Shareholders’ Funds. They 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. Redeemable Participating Shares Each Fund may issue one of more classes of Shares and each class of Shares in a Fund may have different charging structures and different minimum initial investment amounts, minimum additional investment amounts and minimum shareholding requirements. Each class of Shares has a distinct fee structure as outlined in note 12. 123 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 4 Share Capital (continued) Redeemable Participating Shares (continued) The following share classes were in issue as at 31 December 2015: Fund Class A Class B Class C - - Sanlam Global Balanced Fund Sanlam Global Best Ideas Feeder Fund Sanlam Global Equity Fund Sanlam Euro Liquidity Fund Sanlam Sterling Liquidity Fund Sanlam Global Liquidity Fund Sanlam US Dollar Liquidity Fund NFB Global Balanced Fund of Funds Sanlam BIFM World Equity Fund Sanlam BIFM Global Fixed Income Fund Mpile Global Equity Fund Brackenham Global Balanced Fund - APS Global Flexible Fund of Funds - - - Analytics International Flexible Fund Counterpoint Global Equity Fund - The redeemable participating shares are redeemable at the shareholders option and are classified as financial liabilities. They carry voting rights. The participating shares can be put back to the Company at any time for cash equal to a proportionate share of the Company’s net asset value. The participating share is carried at the redemption amount that is payable at the balance sheet date if the shareholder exercises its right to put the share back to the Company. The Shares issued by the Company are freely transferable and entitled to participate equally in the profits and dividends of the Company and in its net assets upon liquidation. The Shares, which are of no par value, carry no preferential or pre-emptive rights and are entitled to one vote each at all meetings of the relevant class of Shareholders. All Shares rank pari-passu. 124 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 4 Share Capital (continued) Redeemable Participating Shares (continued) Participating share transactions for the year ended 31 December 2015: Analytics International Flexible Fund Class A Shares 4,774,678 542,759 (969,942) 4,347,495 Opening shares issued Shares issued during the year Shares redeemed during the year Closing shares issued Subscriptions during the year Redemptions during the year Class A USD 5,893,212 (10,303,650) Sanlam Global Balanced Fund Opening shares issued Shares issued during the year Shares redeemed during the year Closing shares issued Class A Shares 6,195,321 1,584,333 (2,579,121) 5,200,533 Class B Shares 1,319,654 996,858 (171,659) 2,144,853 Class C Shares 72,679,095 (9,916,904) 62,762,191 Subscriptions during the year Redemptions during the year Class A USD 2,259,332 (3,668,151) Class B USD 1,689,129 (294,168) Class C USD (16,732,862) Class A Shares 1,253,226 (413,540) 839,686 Class B Shares 55,181 (763) 54,418 Class C Shares 64,421,080 (37,549,434) 26,871,646 Class A USD (782,388) Class B USD (1,395) Class C USD (71,450,966) Sanlam Global Best Ideas Feeder Fund Opening shares issued Shares issued during the year Shares redeemed during the year Closing shares issued Subscriptions during the year Redemptions during the year 125 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 4 Share Capital (continued) Redeemable Participating Shares (continued) Participating share transactions for the year ended 31 December 2015 (continued): Sanlam Global Equity Fund Opening shares issued Shares issued during the year Shares redeemed during the year Closing shares issued Class A Shares 2,993,637 6,526 (2,142,077) 858,086 Class B Shares 4,173,320 67,977 (669,563) 3,571,734 Class C Shares 1,025,991,082 2,456,303 (149,284,180) 879,163,205 Subscriptions during the year Redemptions during the year Class A USD 7,986 (2,628,188) Class B USD 89,620 (893,220) Class C USD 3,317,447 (204,155,879) Opening shares issued Shares issued during the year Shares redeemed during the year Closing shares issued Class A Shares 73 73 Class B Shares 72 72 Class C Shares 5,144,058 (523,058) 4,621,000 Subscriptions during the year Redemptions during the year Class A EUR - Class B EUR - Class C EUR (531,876) Opening shares issued Shares issued during the year Shares redeemed during the year Closing shares issued Class A Shares 56 56 Class B Shares 56 56 Class C Shares 1,628,789 31,560 (199,580) 1,460,769 Subscriptions during the year Redemptions during the year Class A GBP - Class B GBP - Class C GBP 31,933 (201,946) Sanlam Euro Liquidity Fund Sanlam Sterling Liquidity Fund 126 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 4 Share Capital (continued) Redeemable Participating Shares (continued) Participating share transactions for the year ended 31 December 2015 (continued): Sanlam Global Liquidity Fund Opening shares issued Shares issued during the year Shares redeemed during the year Closing shares issued Class A Shares 8,563,074 537,129 (405,330) 8,694,873 Class B Shares 881,637 (881,537) 100 Class C Shares 100 100 Subscriptions during the year Redemptions during the year Class A USD 595,126 (450,641) Class B USD (953,592) Class C USD - Opening shares issued Shares issued during the year Shares redeemed during the year Closing shares issued Class A Shares 536,538 (536,438) 100 Class B Shares 100 100 Class C Shares 6,246,955 359,897 (1,175,620) 5,431,232 Subscriptions during the year Redemptions during the year Class A USD (533,077) Class B USD - Class C USD 359,905 (1,175,768) Class A Shares Class B Shares 74,059 (74,059) - 100 (100) - Class A (GBP) Shares 101 (101) - Class A USD Class B USD (84,185) (102) Sanlam US Dollar Liquidity Fund Sanlam International Multi-Asset I Fund Opening shares issued Shares issued during the year Shares redeemed during the year Closing shares issued Subscriptions during the year Redemptions during the year 127 Class A (GBP) USD (181) SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 4 Share Capital (continued) Redeemable Participating Shares (continued) Participating share transactions for the year ended 31 December 2015 (continued): Verso Global Flexible Fund Class A Shares 16,554 (16,554) - Class I Shares 4,219,275 (4,219,275) - Class A USD (170,898) Class I USD (49,309,706) Class A Shares 49,563 1,019,771 (63,391) 1,005,943 Class B Shares 1,557,176 7,155 (1,016,347) 547,984 Class C Shares 477,013 3,611 (480,614) 10 Class A USD 11,291,380 (689,785) Class B USD 80,405 (11,047,024) Class C USD 35,945 (4,791,450) Opening shares issued Shares issued during the year Shares redeemed during the year Closing shares issued Class A Shares 175,930 57 (175,987) - Class B Shares 170,846,268 71,905 (170,918,173) - Subscriptions during the year Redemptions during the year Class A USD 53 (161,638) Class B USD 66,615 (155,722,570) Opening shares issued Shares issued during the year Shares redeemed during the year Closing shares issued Subscriptions during the year Redemptions during the year NFB Global Balanced Fund of Funds Opening shares issued Shares issued during the year Shares redeemed during the year Closing shares issued Subscriptions during the year Redemptions during the year Sanlam BIFM Emerging Markets Equity Fund 128 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 4 Share Capital (continued) Redeemable Participating Shares (continued) Participating share transactions for the year ended 31 December 2015 (continued): Sanlam BIFM World Equity Fund Opening shares issued Shares issued during the year Shares redeemed during the year Closing shares issued Class A Shares 318,618,005 8,353,172 (57,102,055) 269,869,122 Class B Shares 423,140,314 441,391 (421,781,757) 1,799,948 Subscriptions during the year Redemptions during the year Class A USD 9,000,387 (57,924,096) Class B USD 446,783 (446,780,175) Opening shares issued Shares issued during the year Shares redeemed during the year Closing shares issued Class A Shares 123,989,813 1,031,580 (93,022,022) 31,999,371 Class B Shares 630,438 1,300,002 (397,395) 1,533,045 Class C Shares 11,196,557 3,951 (11,200,408) 100 Subscriptions during the year Redemptions during the year Class A USD 1,012,238 (92,113,287) Class B USD 1,267,304 (387,982) Class C USD 3,881 (11,008,712) Sanlam BIFM Global Fixed Income Fund Sanlam BIFM South Africa Inflation Linked Bond Fund Class B (ZAR) Shares Opening shares issued 76,514,991 Shares issued during the year 16,569,354 Shares redeemed during the year (93,084,345) Closing shares issued Class B (ZAR) USD Subscriptions during the year Redemptions during the year 14,692,046 (80,293,999) 129 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 4 Share Capital (continued) Redeemable Participating Shares (continued) Participating share transactions for the year ended 31 December 2015 (continued): Mpile Global Equity Fund Opening shares issued Shares issued during the year Shares redeemed during the year Closing shares issued Class A Shares 100 100 Class B Shares 100 100 Class C Shares 13,336,570 13,277,438 (107,492) 26,506,516 Subscriptions during the year Redemptions during the year Class A USD - Class B USD - Class C USD 12,753,844 (100,870) Opening shares issued Shares issued during the year Shares redeemed during the year Closing shares issued Class A Shares 9,969,561 (77,063) 9,892,498 Class B Shares 8,076,652 8,076,652 Subscriptions during the year Redemptions during the year Class A USD 9,770,817 (73,917) Class B USD 8,074,387 - Opening shares issued Shares issued during the year Shares redeemed during the year Closing shares issued Class A Shares 100 100 Class B Shares 48,130,955 48,130,955 Subscriptions during the year Redemptions during the year Class A USD 100 - Class B USD 48,062,496 - Brackenham Global Balanced Fund APS Global Flexible Fund of Funds 130 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 4 Share Capital (continued) Redeemable Participating Shares (continued) Participating share transactions for the year ended 31 December 2015 (continued): Counterpoint Global Equity Fund Opening shares issued Shares issued during the year Shares redeemed during the year Closing shares issued Class B Shares 14,345,865 (197,803) 14,148,062 Subscriptions during the year Redemptions during the year Class B USD 14,287,757 (200,950) Participating share transactions for the year ended 31 December 2014: Analytics International Flexible Fund Class A Shares 4,144,825 773,197 (143,344) 4,774,678 Opening shares issued Shares issued during the year Shares redeemed during the year Closing shares issued Subscriptions during the year 8,720,429 (1,628,471) Redemptions during the year Sanlam Global Balanced Fund Opening shares issued Shares issued during the year Shares redeemed during the year Closing shares issued Class A Shares 4,601,680 2,928,376 (1,334,735) 6,195,321 Class B Shares 131,145 1,197,715 (9,206) 1,319,654 Class C Shares 75,304,263 9,311,117 (11,936,285) 72,679,095 Subscriptions during the year Redemptions during the year Class A USD 4,182,887 (1,889,159) Class B USD 2,051,597 (15,617) Class C USD 15,610,849 (20,239,195) 131 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 4 Share Capital (continued) Redeemable Participating Shares (continued) Participating share transactions for the year ended 31 December 2014 (continued): Sanlam Global Best Ideas Feeder Fund Opening shares issued Shares issued during the year Shares redeemed during the year Closing shares issued Class A Shares 3,178,305 (1,925,079) 1,253,226 Class B Shares 1,981,346 (1,926,165) 55,181 Class C Shares 74,499,375 (10,078,295) 64,421,080 Subscriptions during the year Redemptions during the year Class A USD (3,536,848) Class B USD (3,641,304) Class C USD (19,201,931) Sanlam Global Equity Fund Opening shares issued Shares issued during the year Shares redeemed during the year Closing shares issued Class A Shares 1,755,322 3,010,787 (1,772,472) 2,993,637 Class B Shares 4,264,148 4,620,309 (4,711,137) 4,173,320 Class C Shares 1,161,165,768 1,111,279,597 (1,246,454,282) 1,025,991,083 Class A USD 1,549,560 (36,781) Class B USD 417,313 (535,319) Class C USD 21,738,254 (199,386,638) Subscriptions during the year Redemptions during the year Sanlam Euro Liquidity Fund Opening shares issued Shares issued during the year Shares redeemed during the year Closing shares issued Class A Shares 73 73 Class B Shares 72 72 Class C Shares 5,649,070 (505,012) 5,144,058 Subscriptions during the year Redemptions during the year Class A EUR - Class B EUR - Class C EUR (513,541) 132 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 4 Share Capital (continued) Redeemable Participating Shares (continued) Participating share transactions for the year ended 31 December 2014 (continued): Sanlam Sterling Liquidity Fund Opening shares issued Shares issued during the year Shares redeemed during the year Closing shares issued Class A Shares 56 56 Class B Shares 56 56 Class C Shares 1,794,487 (165,698) 1,628,789 Subscriptions during the year Redemptions during the year Class A GBP - Class B GBP - Class C GBP (167,188) Opening shares issued Shares issued during the year Shares redeemed during the year Closing shares issued Class A Shares 9,822,578 2,112,890 (3,372,394) 8,563,074 Class B Shares 17,056,514 (16,174,877) 881,637 Class C Shares 100 100 Subscriptions during the year Redemptions during the year Class A USD 2,569,746 (4,077,913) Class B USD (19,094,120) Class C USD - Opening shares issued Shares issued during the year Shares redeemed during the year Closing shares issued Class A Shares 26,918 536,438 (26,818) 536,538 Class B Shares 100 100 Class C Shares 7,367,985 (1,121,030) 6,246,955 Subscriptions during the year Redemptions during the year Class A USD 532,897 (26,638) Class B USD - Class C USD (1,120,488) Sanlam Global Liquidity Fund Sanlam US Dollar Liquidity Fund 133 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 4 Share Capital (continued) Redeemable Participating Shares (continued) Participating share transactions for the year ended 31 December 2014 (continued): Sanlam International Multi-Asset I Fund Opening shares issued Shares issued during the year Shares redeemed during the year Closing shares issued Class A Shares 172,633 1,524 (100,098) 74,059 Class B Shares 100 100 Class A (EUR) Shares 100 (100) - Subscriptions during the year Redemptions during the year Class A USD 1,695 (112,039) Class B USD - Class A (EUR) USD (149) Opening shares issued Shares issued during the year Shares redeemed during the year Closing shares issued Class A (GBP) Shares 165,516 (165,415) 101 Class B (EUR) Shares 100 (100) - Class B (GBP) Shares 36,086 (36,086) - Subscriptions during the year Redemptions during the year Class A (GBP) USD (286,288) Class B (EUR) USD (135) Class B (GBP) USD (66,017) Opening shares issued Shares issued during the year Shares redeemed during the year Closing shares issued Class A Shares 14,713 2,581 (740) 16,554 Class I Shares 4,784,967 123,111 (688,803) 4,219,275 Subscriptions during the year Redemptions during the year Class A USD 26,767 (8,289) Class I USD 1,505,723 (8,320,134) Verso Global Flexible Fund 134 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 4 Share Capital (continued) Redeemable Participating Shares (continued) Participating share transactions for the year ended 31 December 2014 (continued): NFB Global Balanced Fund of Funds Opening shares issued Shares issued during the year Shares redeemed during the year Closing shares issued Class A Shares 10 50,291 (738) 49,563 Class B Shares 2,976,039 299,823 (1,718,686) 1,557,176 Class C Shares 477,659 (646) 477,013 Subscriptions during the year Redemptions during the year Class A USD 556,263 (8,208) Class B USD 3,319,323 (18,850,753) Class C USD 4,727,005 (6,381) Opening shares issued Shares issued during the year Shares redeemed during the year Closing shares issued Class A Shares 1,951,870 339,473 (2,115,413) 175,930 Class B Shares 228,775,652 13,656,085 (71,585,469) 170,846,268 Subscriptions during the year Redemptions during the year Class A USD 343,274 (2,065,848) Class B USD 13,500,348 (67,221,908) Opening shares issued Shares issued during the year Shares redeemed during the year Closing shares issued Class A Shares 324,465,099 23,934,048 (29,781,142) 318,618,005 Class B Shares 360,105,969 135,523,265 (72,488,920) 423,140,314 Subscriptions during the year Redemptions during the year Class A USD 24,751,369 (30,778,409) Class B USD 139,884,237 (76,861,861) Sanlam BIFM Emerging Markets Equity Fund Sanlam BIFM World Equity Fund 135 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 4 Share Capital (continued) Redeemable Participating Shares (continued) Participating share transactions for the year ended 31 December 2014 (continued): Sanlam BIFM Global Fixed Income Fund Opening shares issued Shares issued during the year Shares redeemed during the year Closing shares issued Class A Shares 155,490,947 20,899,425 (52,400,559) 123,989,813 Class B Shares 100 630,338 630,438 Class C Shares 11,196,557 11,196,557 Subscriptions during the year Redemptions during the year Class A USD 21,499,050 (52,761,126) Class B USD 641,899 - Class C USD 11,190,104 - Opening shares issued Shares issued during the year Shares redeemed during the year Closing shares issued Class A Shares 100 100 Class B Shares 100 100 Class C Shares 14,936,570 (1,600,000) 13,336,570 Subscriptions during the year Redemptions during the year Class A USD 100 - Class B USD 100 - Class C USD 14,594,475 (1,567,039) Sanlam BIFM South Africa Inflation Linked Bond Fund Class B (ZAR) Shares Opening shares issued Shares issued during the year 76,514,991 Shares redeemed during the year Closing shares issued 76,514,991 Class B (ZAR) USD Subscriptions during the year Redemptions during the year 69,983,353 - Mpile Global Equity Fund 136 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 5 Investments in subsidiaries At 31 December 2015, the Funds held a majority holding in the following collective investment schemes: Sanlam Global Balanced Fund Name Sanlam Centre Global Select Equity Fund Country of incorporation Ireland Geographic focus Global Proportion of ownership interest held 74.68% Country of incorporation Ireland Ireland Ireland Geographic focus Global United States Global Proportion of ownership interest held 92.63% 79.29% 76.45% Sanlam Global Equity Fund Name Sanlam FOUR Stable Global Equity Fund Sanlam FOUR US Dividend Income Fund Sanlam World Equity Fund At 31 December 2014, the Funds held a majority holding in the following collective investment schemes: Sanlam Global Balanced Fund Name Miton Global Equity Fund (formerly PSigma Global Equity Fund) Country of incorporation Geographic focus United Kingdom Global Proportion of ownership interest held 90.66% Sanlam Global Equity Fund Name Sanlam FOUR US Dividend Income Fund 8IP Australian Small Companies Fund Sanlam World Equity Fund Country of incorporation Ireland Australia Ireland 137 Geographic focus United States Australia Global Proportion of ownership interest held 99.99% 97.78% 73.51% SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 6 Net gains and losses on financial assets and liabilities at fair value through profit or loss Net gains and losses for the year ended 31 December 2015: Realised gains Realised losses Change in unrealised gains Change in unrealised losses Foreign currency gain/(loss) Total gains/(losses) Analytics International Flexible Fund 2015 USD 1,338,536 (1,717,494) 3,545,749 (3,925,507) 81,343 (677,373) Sanlam Global Balanced Fund 2015 USD 2,530,663 (1,772,334) 1,064,622 (4,470,299) (24,650) (2,671,998) Sanlam Global Best Ideas Feeder Fund 2015 USD 8,724,496 (14,142,804) (5,418,308) Sanlam Global Equity Fund 2015 USD 103,479,344 5,735,513 (96,156,955) (59,706) 12,998,196 Realised gains Realised losses Change in unrealised gains Change in unrealised losses Foreign currency gain/(loss) Total gains/(losses) Sanlam Euro Liquidity Fund 2015 EUR 68,010 (75) (70,319) (31) (2,415) Sanlam Sterling Liquidity Fund 2015 GBP 29,226 (24,769) 9 4,466 Sanlam Global Liquidity Fund 2015 USD 5,153 (869,944) 363,745 (1,306) (2,616) (504,968) Sanlam US Dollar Liquidity Fund 2015 USD 18,943 (14,043) (3) 4,897 Realised gains Realised losses Change in unrealised gains Change in unrealised losses Foreign currency gain/(loss) Total gains/(losses) Sanlam International Multi-Asset I Fund 2015 USD 7,623 (139) 140 (7,779) (17) (172) Verso Global Flexible Fund 2015 USD 7,191,576 (3,107,437) 3,259,466 (6,546,964) (8,734) 787,907 NFB Global Balanced Fund of Funds 2015 USD 355,069 (9,968) (1,207,831) (1,977) (864,707) Sanlam BIFM Emerging Markets Equity Fund 2015 USD 10,302,950 (14,847,350) 14,047,135 (5,337,366) (1,139,395) 3,025,974 138 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 6 Net gains and losses on financial assets and liabilities at fair value through profit or loss (continued) Realised gains Realised losses Change in unrealised gains Change in unrealised losses Foreign currency gain/(loss) Total gains/(losses) Sanlam BIFM World Equity Fund 2015 USD 58,967,141 (39,010,062) 41,028,979 (54,047,954) (61,511) 6,876,593 Realised gains Realised losses Change in unrealised gains Change in unrealised losses Foreign currency gain/(loss) Total gains/(losses) Brackenham Global Balanced Fund 2015 USD 48,733 (114,252) 364,572 (777,402) (2,615) (480,964) 985,255 (2,667,740) 582,041 (627,231) (1,727,675) Sanlam BIFM South Africa Inflation Linked Fund 2015 USD (4,163,599) 2,820,530 (243,003) (1,586,072) APS Global Flexible Fund of Funds 2015 USD (9,515) (2,169,883) (80) (2,179,478) Counterpoint Global Equity Fund 2015 USD 66,260 (174,349) 824,344 (566,944) (265) 149,046 Sanlam BIFM Global Fixed Income Fund 2015 USD - Mpile Global Equity Fund 2015 USD 23,114 (133,776) 281,040 (160,653) (1) 9,724 Net gains and losses for the year ended 31 December 2014: Realised gains Realised losses Change in unrealised gains Change in unrealised losses Foreign currency gain/(loss) Total gains/(losses) Analytics International Flexible Fund 2014 USD 939,771 (861,330) 2,579,963 (4,903,257) 12,853 (2,232,000) Sanlam Global Balanced Fund 2014 USD 6,785,228 (36,598) 1,341,655 (6,168,623) 7,247 1,928,909 139 Sanlam Global Best Ideas Feeder Fund 2014 USD 3,446,912 565,931 4,012,843 Sanlam Global Equity Fund 2014 USD 86,825,500 (3,323,325) 8,115,315 (46,606,706) (38,168) 44,972,616 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 6 Net gains and losses on financial assets and liabilities at fair value through profit or loss (continued) Realised gains Realised losses Change in unrealised gains Change in unrealised losses Foreign currency gain/(loss) Total gains/(losses) Sanlam Euro Liquidity Fund 2014 EUR 6,396 (4,813) 23 1,606 Sanlam Sterling Liquidity Fund 2014 GBP 1,962 2,200 (8) 4,154 Sanlam Global Liquidity Fund 2014 USD 294,994 (71,317) (1,005,795) 7,030 (775,088) Sanlam US Dollar Liquidity Fund 2014 USD 2,181 202 2,383 Realised gains Realised losses Change in unrealised gains Change in unrealised losses Foreign currency gain/(loss) Total gains/(losses) Sanlam International Multi-Asset I Fund 2014 USD 45,619 (404) 383 (21,454) (10,195) 13,949 Verso Global Flexible Fund 2014 USD 3,584,884 (704,743) 2,564,763 (7,015,865) (10,508) (1,581,469) NFB Global Balanced Fund of Funds 2014 USD 1,410,483 448,032 (358,267) (12,587) 1,487,661 Sanlam BIFM Emerging Markets Equity Fund 2014 USD 8,870,940 (22,377,761) 13,868,100 (15,814,810) (71,953) (15,525,484) Realised gains Realised losses Change in unrealised gains Change in unrealised losses Foreign currency gain/(loss) Total gains/(losses) Sanlam BIFM World Equity Fund 2014 USD 24,305,064 (12,040,593) 44,858,833 (69,431,781) 13,561 (12,294,916) Sanlam BIFM Global Fixed Income Fund 2014 USD 774,525 (164,501) 375,601 (360,763) (3) 624,859 140 Sanlam BIFM South Africa Inflation Linked Fund 2014 USD 21,085 (40,965) (2,820,530) 38,655 (2,801,755) Mpile Global Equity Fund 2014 USD (104,813) (217,465) (322,278) SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 7 Financial assets and financial liabilities at fair value through profit or loss The following tables show financial assets measured at fair value through profit or loss at 31 December 2015: Analytics International Flexible Fund 31/12/2015 USD Sanlam Global Balanced Fund 31/12/2015 USD Sanlam Global Best Ideas Feeder Fund 31/12/2015 USD Financial assets at fair value through profit or loss Held for trading: Collective Investment Schemes Equity 35,018,292 Corporate Debt 4,572,104 Government Debt 1,103,540 Total financial assets at fair value through profit or loss 40,693,936 111,305,073 - 50,764,385 - 111,305,073 50,764,385 Sanlam Global Equity Fund 31/12/2015 USD Sanlam Euro Liquidity Fund 31/12/2015 EUR Sanlam Sterling Liquidity Fund 31/12/2015 GBP Financial assets at fair value through profit or loss Held for trading: Collective Investment Schemes 1,155,026,558 Derivatives 2,335,772 Total financial assets at fair value through profit or loss 1,157,362,330 3,344,023 - 1,073,066 - 3,344,023 1,073,066 Sanlam Global Liquidity Fund 31/12/2015 USD Sanlam US Dollar Liquidity Fund 31/12/2015 USD NFB Global Balanced Fund of Funds 31/12/2015 USD Financial assets at fair value through profit or loss Held for trading: Collective Investment Schemes 9,114,484 Exchange Traded Funds Total financial assets at fair value through profit or loss 9,114,484 3,870,288 - 2,728,269 13,424,171 3,870,288 16,152,440 141 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 7 Financial assets and financial liabilities at fair value through profit or loss (continued) Sanlam BIFM World Equity Fund 31/12/2015 USD Sanlam BIFM Global Fixed Income Fund 31/12/2015 USD Mpile Global Equity Fund 31/12/2015 31/12/2014 Financial assets at fair value through profit or loss Held for trading: Equity 200,049,133 Collective Investment Schemes 64,413,293 Total financial assets at fair value through profit or loss 264,462,426 31,068,651 25,127,387 31,068,651 25,127,387 Brackenham Global Balanced Fund 31/12/2015 USD APS Global Flexible Fund of Funds 31/12/2015 USD Counterpoint Global Equity Fund 31/12/2015 USD Financial assets at fair value through profit or loss Held for trading: Equity 9,159,532 Collective Investment Schemes 933,313 Exchange Traded Funds 735,052 Total financial assets at fair value through profit or loss 10,827,897 43,470,602 - 12,645,367 - 43,470,602 12,645,367 The following tables show financial assets measured at fair value through profit or loss at 31 December 2014: Analytics International Flexible Fund 31/12/2014 USD Financial assets at fair value through profit or loss Held for trading: Collective Investment Schemes Equity 41,202,926 Corporate Debt 5,907,554 Government Debt 699,889 Total financial assets at fair value through profit or loss 47,810,369 142 Sanlam Global Balanced Fund 31/12/2014 USD Sanlam Global Best Ideas Feeder Fund 31/12/2014 USD 131,560,904 - 127,711,141 - 131,560,904 127,711,141 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 7 Financial assets and financial liabilities at fair value through profit or loss (continued) Sanlam Global Equity Fund 31/12/2014 USD Sanlam Euro Liquidity Fund 31/12/2014 EUR Sanlam Sterling Liquidity Fund 31/12/2014 GBP Financial assets at fair value through profit or loss Held for trading: Collective Investment Schemes 1,354,735,474 Derivatives 2,248,217 Total financial assets at fair value through profit or loss 1,356,983,691 3,728,617 - 1,193,202 - 3,728,617 1,193,202 Sanlam Global Liquidity Fund 31/12/2014 USD Sanlam US Dollar Liquidity Fund 31/12/2014 USD Sanlam International Multi-Asset I Fund 31/12/2014 USD Financial assets at fair value through profit or loss Held for trading: Collective Investment Schemes 10,514,485 Total financial assets at fair value through profit or loss 10,514,485 4,825,469 71,485 4,825,469 71,485 Verso Global Flexible Fund 31/12/2014 USD NFB Global Balanced Fund of Funds 31/12/2014 USD Sanlam BIFM Emerging Markets Equity Fund 31/12/2014 USD Financial assets at fair value through profit or loss Held for trading: Equity 47,626,376 Equity Linked Note Collective Investment Schemes Exchange Traded Funds Total financial assets at fair value through profit or loss 47,626,376 2,849,629 14,233,704 146,487,312 1,103,418 240,794 - 17,083,333 147,831,524 143 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 7 Financial assets and financial liabilities at fair value through profit or loss (continued) Sanlam BIFM World Equity Fund 31/12/2014 USD Sanlam BIFM Global Fixed Income Fund 31/12/2014 USD Sanlam BIFM South Africa Inflation Linked Bond Fund 31/12/2014 USD Financial assets at fair value through profit or loss Held for trading: Equity 559,958,980 Collective Investment Schemes 185,786,161 Corporate Debt Government Debt Total financial assets at fair value through profit or loss 745,745,141 132,479,704 - 927,437 62,433,645 132,479,704 63,361,082 Mpile Global Equity Fund 31/12/2014 USD Financial assets at fair value through profit or loss Held for trading: Equity Collective Investment Schemes 12,614,102 Total financial assets at fair value through profit or loss 12,614,102 The following table shows financial liabilities measured at fair value through profit or loss at 31 December 2015: Analytics International Flexible Fund 31/12/2015 USD Financial liabilities at fair value through profit or loss Held for trading: Derivatives (16,311) Total financial liabilities at fair value through profit or loss (16,311) 144 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 7 Financial assets and financial liabilities at fair value through profit or loss (continued) The following table shows financial liabilities measured at fair value through profit or loss at 31 December 2014: Analytics International Flexible Fund 31/12/2014 USD Financial liabilities at fair value through profit or loss Held for trading: Derivatives Total financial liabilities at fair value through profit or loss 8 (891) (891) Fair value of financial instruments The AIFM is responsible for ensuring that proper and independent valuation of the assets of the Company can be performed. The financial instruments held by each Fund are valued in accordance with the valuation policy of the AIFM. The following table shows financial instruments recognised at fair value. The fair value hierarchy has the following levels: Quoted prices in active markets for identical assets or liabilities (Level 1); Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices) (Level 2); and Inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3). The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Assets measured at fair value The following table analyses, within the fair value hierarchy, the Fund’s financial assets measured at fair value through profit or loss at 31 December 2015: Analytics International Flexible Fund Equity Bonds Total financial assets at fair value through profit or loss Level 1 USD Level 2 USD Level 3 USD Total USD 35,018,292 1,103,540 4,572,104 - 35,018,292 5,675,644 36,121,832 4,572,104 - 40,693,936 145 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 8 Fair value of financial instruments (continued) Assets measured at fair value (continued) Sanlam Global Balanced Fund Collective Investment Schemes Total financial assets at fair value through profit or loss Level 1 USD Level 2 USD Level 3 USD Total USD 111,305,073 - - 111,305,073 111,305,073 - - 111,305,073 Level 1 USD Level 2 USD Level 3 USD Total USD 50,764,385 - - 50,764,385 50,764,385 - - 50,764,385 Level 1 USD Level 2 USD Level 3 USD Total USD 1,124,215,620 - 30,810,938 2,335,772 - 1,155,026,558 2,335,772 1,124,215,620 33,146,710 - 1,157,362,330 Level 1 USD Level 2 USD Level 3 USD Total USD 3,344,023 - - 3,344,023 3,344,023 - - 3,344,023 Level 1 USD Level 2 USD Level 3 USD Total USD 1,073,066 - - 1,073,066 1,073,066 - - 1,073,066 Level 1 USD Level 2 USD Level 3 USD Total USD 9,114,484 - - 9,114,484 9,114,484 - - 9,114,484 Sanlam Global Best Ideas Feeder Fund Collective Investment Schemes Total financial assets at fair value through profit or loss Sanlam Global Equity Fund Collective Investment Schemes Outperformance Swap Total financial assets at fair value through profit or loss Sanlam Euro Liquidity Fund Collective Investment Schemes Total financial assets at fair value through profit or loss Sanlam Sterling Liquidity Fund Collective Investment Schemes Total financial assets at fair value through profit or loss Sanlam Global Liquidity Fund Collective Investment Schemes Total financial assets at fair value through profit or loss 146 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 8 Fair value of financial instruments (continued) Assets measured at fair value (continued) Sanlam US Dollar Liquidity Fund Collective Investment Schemes Total financial assets at fair value through profit or loss Level 1 USD Level 2 USD Level 3 USD Total USD 3,870,288 - - 3,870,288 3,870,288 - - 3,870,288 Level 1 USD Level 2 USD Level 3 USD Total USD 2,728,269 13,424,171 - - 2,728,269 13,424,171 16,152,440 - - 16,152,440 Level 1 USD Level 2 USD Level 3 USD Total USD 200,042,854 64,413,293 6,279 - - 200,049,133 64,413,293 264,456,147 6,279 - 264,462,426 Level 1 USD Level 2 USD Level 3 USD Total USD 31,068,651 - - 31,068,651 31,068,651 - - 31,068,651 Level 1 USD Level 2 USD Level 3 USD Total USD 25,127,387 - - 25,127,387 25,127,387 - - 25,127,387 Level 1 USD Level 2 USD Level 3 USD Total USD 9,159,532 735,052 933,313 - - 9,159,532 933,313 735,052 9,894,584 933,313 - 10,827,897 NFB Global Balanced Fund of Funds Collective Investment Schemes Exchange Traded Funds Total financial assets at fair value through profit or loss Sanlam BIFM World Equity Fund Equity Collective Investment Schemes Total financial assets at fair value through profit or loss Sanlam BIFM Global Fixed Income Fund Collective Investment Schemes Total financial assets at fair value through profit or loss Mpile Global Equity Fund Collective Investment Schemes Total financial assets at fair value through profit or loss Brackenham Global Balanced Fund Equity Collective Investment Schemes Exchange Traded Funds Total financial assets at fair value through profit or loss 147 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 8 Fair value of financial instruments (continued) Assets measured at fair value (continued) APS Global Flexible Fund of Funds Collective Investment Schemes Total financial assets at fair value through profit or loss Level 1 USD Level 2 USD Level 3 USD Total USD 43,470,602 - - 43,470,602 43,470,602 - - 43,470,602 Level 1 USD Level 2 USD Level 3 USD Total USD 12,645,367 - - 12,645,367 12,645,367 - - 12,645,367 Counterpoint Global Equity Fund Equity Total financial assets at fair value through profit or loss The following table analyses, within the fair value hierarchy, the Fund’s financial assets measured at fair value through profit or loss at 31 December 2014: Analytics International Flexible Fund Equity Bonds Total financial assets at fair value through profit or loss Level 1 USD Level 2 USD Level 3 USD Total USD 41,202,926 699,889 5,907,554 - 41,202,926 6,607,443 41,902,815 5,907,554 - 47,810,369 Level 1 USD Level 2 USD Level 3 USD Total USD 98,751,573 32,809,331 - 131,560,904 98,751,573 32,809,331 - 131,560,904 Level 1 USD Level 2 USD Level 3 USD Total USD 127,711,141 - - 127,711,141 127,711,141 - - 127,711,141 Sanlam Global Balanced Fund Collective Investment Schemes Total financial assets at fair value through profit or loss Sanlam Global Best Ideas Feeder Fund Collective Investment Schemes Total financial assets at fair value through profit or loss 148 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 8 Fair value of financial instruments (continued) Assets measured at fair value (continued) Sanlam Global Equity Fund Collective Investment Schemes Outperformance Swap Total financial assets at fair value through profit or loss Level 1 USD Level 2 USD Level 3 USD Total USD 1,325,373,448 - 29,362,026 2,248,217 - 1,354,735,474 2,248,217 1,325,373,448 31,610,243 - 1,356,983,691 Level 1 USD Level 2 USD Level 3 USD Total USD 3,728,617 - - 3,728,617 3,728,617 - - 3,728,617 Level 1 USD Level 2 USD Level 3 USD Total USD 1,193,202 - - 1,193,202 1,193,202 - - 1,193,202 Level 1 USD Level 2 USD Level 3 USD Total USD 10,514,485 - - 10,514,485 10,514,485 - - 10,514,485 Level 1 USD Level 2 USD Level 3 USD Total USD 4,825,469 - - 4,825,469 4,825,469 - - 4,825,469 Level 1 USD -aA Level 2 USD Level 3 USD Total USD 71,485 - - 71,485 71,485 - - 71,485 Sanlam Euro Liquidity Fund Collective Investment Schemes Total financial assets at fair value through profit or loss Sanlam Sterling Liquidity Fund Collective Investment Schemes Total financial assets at fair value through profit or loss Sanlam Global Liquidity Fund Collective Investment Schemes Total financial assets at fair value through profit or loss Sanlam US Dollar Liquidity Fund Collective Investment Schemes Total financial assets at fair value through profit or loss Sanlam International Multi-Asset I Fund Collective Investment Schemes Total financial assets at fair value through profit or loss 149 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 8 Fair value of financial instruments (continued) Assets measured at fair value (continued) Verso Global Flexible Fund Equity Total financial assets at fair value through profit or loss Level 1 USD -aA Level 2 USD Level 3 USD Total USD 47,577,792 48,584 - 47,626,376 47,577,792 48,584 - 47,626,376 Level 1 USD Level 2 USD Level 3 USD Total USD 2,849,629 14,233,704 - - 2,849,629 14,233,704 17,083,333 - - 17,083,333 Level 1 USD Level 2 USD Level 3 USD Total USD 143,859,528 240,794 2,627,784 1,103,418 - - 146,487,312 1,103,418 240,794 144,100,322 3,731,202 - 147,831,524 Level 1 USD Level 2 USD Level 3 USD Total USD 559,958,980 185,786,161 - - 559,958,980 185,786,161 745,745,141 - - 745,745,141 Level 1 USD Level 2 USD Level 3 USD Total USD 132,479,704 - - 132,479,704 132,479,704 - - 132,479,704 NFB Global Balanced Fund of Funds Collective Investment Schemes Exchange Traded Funds Total financial assets at fair value through profit or loss Sanlam BIFM Emerging Markets Equity Fund Equity Equity Linked Note Collective Investment Schemes Total financial assets at fair value through profit or loss Sanlam BIFM World Equity Fund Equity Collective Investment Schemes Total financial assets at fair value through profit or loss Sanlam BIFM Global Fixed Income Fund Collective Investment Schemes Total financial assets at fair value through profit or loss 150 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 8 Fair value of financial instruments (continued) Assets measured at fair value (continued) Sanlam BIFM South Africa Inflation Linked Bond Fund Level 1 USD Level 2 USD Level 3 USD Total USD - 63,361,082 - 63,361,082 - 63,361,082 - 63,361,082 Level 1 USD Level 2 USD Level 3 USD Total USD 12,614,102 - - 12,614,102 12,614,102 - - 12,614,102 Bonds Total financial assets at fair value through profit or loss Mpile Global Equity Fund Collective Investment Schemes Total financial assets at fair value through profit or loss Liabilities measured at fair value The following table analyses, within the fair value hierarchy, the Funds’ financial liabilities at fair value through profit or loss at 31 December 2015: Analytics International Flexible Fund Level 1 USD Level 2 USD Level 3 USD Total USD - (16,311) - (16,311) - (16,311) - (16,311) Forward Currency Contracts Total financial assets at fair value through profit or loss The following table analyses, within the fair value hierarchy, the Funds’ financial liabilities at fair value through profit or loss at 31 December 2014: Analytics International Flexible Fund Level 1 USD Level 2 USD Level 3 USD Total USD - (891) - (891) - (891) - (891) Forward Currency Contracts Total financial assets at fair value through profit or loss Investments whose values are based on quoted market prices in active markets, and therefore classified within level 1, include active listed equities, exchange traded derivatives and collective investment schemes. The AIFM does not adjust the quoted price for these instruments nor does it apply a discount to securities where the volume traded in the market is low relative to the Fund’s holding. 151 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 8 Fair value of financial instruments (continued) Financial instruments that trade in markets that are not considered to be active but are valued based on quoted market prices, dealer quotations or alternative pricing sources supported by observable inputs are classified within level 2 (i.e. OTC derivatives such as forward currency contracts). These include certain collective investment schemes, over-the-counter derivatives such as forward currency contracts and swaps. As level 2 investments include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or nontransferability, which are generally based on available market information. Investments classified within level 3, if any, have significant unobservable inputs, as they trade infrequently. Significant transfers between levels 1, 2 and 3 There were no significant transfers between levels in the year ended 31 December 2015. The following table shows significant transfers between level 1 and level 3 of the fair value hierarchy for financial assets recognised at fair value for the year ended 31 December 2014: Sanlam BIFM Emerging Markets Equity Fund Financial assets held for trading: Equities Transfer from level 1 to level 3 46,059 The following table shows a reconciliation of all movements in the fair value of financial instruments categorised within Level 3 between 1 January and 31 December 2015 and 1 January and 31 December 2014: Sanlam BIFM Emerging Markets Equity Fund* Investment in securities 2015 2014 (11,044) (101,092) 87,094 (21,017) 46,059 - Balance as at 1 January Realised gains/(losses) Change in unrealised Gross Purchases Gross Sales Transfers in and out of level 3 Balance as at 31 December Total unrealised gains and losses for the year included in profit or loss for level 3 assets held at year end - (120,213) *Sanlam BIFM Emerging Markets Equity ceased trading and was fully redeemed on 27 May 2015. At this date, the Fund held a level 3 security, African Bank Investments Ltd., which was valued at USD Nil (trading was suspended on this security on 10 August 2014 and its value was written down to USD Nil on 3 October 2014). Any value realised on the eventual disposal of this security by the AIFM will be distributed to those shareholders who held shares in the Sanlam BIFM Emerging Markets Equity Fund at the final redemption date. For the purpose of IFRS 7 for the reconciliation showing the change in fair value due to a change in inputs used, changes to one or more of the inputs to reasonably alternative assumptions, is irrelevant in this case and would result in this position being written down to zero. 152 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 9 Assets and liabilities not carried at fair value but for which fair value is disclosed For all non-financial assets and liabilities at fair value through profit and loss, their carrying values are a reasonable approximation of fair value. 10 Offsetting of financial assets and liabilities IFRS 7 requires an entity to disclose information to enable users of its financial statements to evaluate the effect or potential effect of netting arrangements on the entity’s financial position. At 31 December 2015 and 31 December 2014, one Fund held derivative financial instruments that were subject to an enforceable master netting arrangement or similar agreement. The following tables provide information on the financial impact of netting for instruments subject to an enforceable master netting arrangement or similar agreement at 31 December 2015 and 31 December 2014: Analytics International Flexible Fund – 31 December 2015 Gross amount of recognised financial assets/ liabilities USD Derivative financial assets Forwards Amounts of financial assets/ liabilities presented in the statement of financial position USD Gross amount of recognised financial liabilities/ assets set off in the statement of financial position USD - - - Other financial assets at fair value through profit or loss 40,693,936 - 40,693,936 Total financial assets at fair value through profit or loss 40,693,936 - 40,693,936 (16,311) (16,311) - (16,311) (16,311) - - - (16,311) - (16,311) Derivative financial liabilities Forwards Other financial liabilities at fair value through profit or loss Total financial liabilities at fair value through profit or loss 153 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 10 Offsetting of financial assets and liabilities (continued) Analytics International Flexible Fund – 31 December 2015 (continued) Related amounts not set off in the statement of financial position Amounts of financial assets/liabilities Financial Cash presented in the instruments collateral statement of financial position USD USD USD Derivative financial assets Forwards Net amount USD - - - - Other financial assets at fair value profit or loss through 40,693,936 - - 40,693,936 Total financial assets at fair value through profit or loss 40,693,936 - - 40,693,936 (16,311) (16,311) - 16,311 16,311 - Other financial liabilities at fair value through profit or loss - - - - Total financial liabilities at fair value through profit or loss (16,311) - 16,311 - Derivative financial liabilities Forwards 154 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 10 Offsetting of financial assets and liabilities (continued) Analytics International Flexible Fund – 31 December 2014 Gross amount of recognised financial assets/ liabilities USD Derivative financial assets Forwards Other financial assets at fair value through profit or loss Total financial assets at fair value through profit or loss Derivative financial liabilities Forwards Other financial liabilities at fair value through profit or loss Total financial liabilities at fair value through profit or loss Gross amount of recognised financial liabilities/ assets set off in the statement of financial position USD Amounts of financial assets/ liabilities presented in the statement of financial position USD - - - 47,810,369 - 47,810,369 47,810,369 - 47,810,369 (891) (891) - (891) (891) - - - (891) - (891) 155 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 10 Offsetting of financial assets and liabilities (continued) Analytics International Flexible Fund – 31 December 2014 (continued) Related amounts not set off in the statement of financial position Amounts of financial assets/liabilities Financial Cash presented in the instruments collateral statement of financial position USD USD USD Derivative financial assets Forwards Other financial assets at fair through value profit or loss Total financial assets at fair through value profit or loss Derivative financial liabilities Forwards Other financial liabilities at fair through profit or loss value Total financial liabilities at value through profit or loss fair Net amount USD - - - - 47,810,369 - - 47,810,369 47,810,369 - - 47,810,369 (891) (891) - 891 891 - - - - - (891) - 891 - 156 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 11 Exchange rates The following year end USD exchange rates have been used in this report: 1 USD = AED AUD BRL CAD CHF CLP CNY DKK EUR GBP HKD IDR INR JPY KES KRW MXN NGN NOK NZD PHP QAR RON SEK SGD THB TRY TWD USD ZAR 31 December 2015 1.3722 1.3841 1.0019 708.6000 6.4915 6.8719 0.9209 0.6782 7.7508 66.2003 120.2700 1175.6400 17.1980 8.8650 1.4616 8.4502 1.4170 36.0280 1.0000 15.4951 31 December 2014 3.6723 1.2258 2.6804 1.1627 0.9894 605.8230 6.1385 6.1235 0.8226 0.6437 7.7574 12406.9000 63.5901 119.9300 89.0462 1096.7300 14.7589 180.9820 7.4363 1.2805 44.6834 3.6386 3.6819 7.7965 1.3230 32.8684 2.3215 31.7433 1.0000 11.6017 The following average USD exchange rates have been used in this report: 1 USD = EUR GBP 31 December 2015 0.9012 0.6544 157 31 December 2014 0.7535 0.6072 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 12 Related party transactions and significant agreements Directors’ interests At 31 December 2015, Haydn Franckeiss held 39,547.68 shares in Sanlam Global Best Ideas Feeder Fund. The other Directors had no interest in the shares of the Company or Funds at 31 December 2015 or at any time during the financial period. Significant Agreements Manager Pursuant to the Amended and Restated Management and Administration Agreement effective 29 August 2014, SAMI acts as both Manager and Administrator to the Company. SAMI is an ultimate subsidiary Company of Sanlam Limited. The Manager is entitled to receive an AIFM fee (an annual fee of the percentages listed below per Share Class). These fees are payable monthly in arrears and accrued by reference to the net assets of the share class on a daily basis. Class A Shares USD Class B Shares USD Class C Shares USD Class D Shares USD Analytics International Sanlam Global Flexible Fund* Balanced Fund* 1.50% 1.50% 0.85% N/A 0.75% N/A 0.65% N/A Sanlam Global Best Ideas Feeder Fund* 1.50% 0.85% 0.75% N/A Sanlam Global Equity Fund* 1.50% 0.85% 0.75% N/A Class A Shares USD Class B Shares USD Class C Shares USD Sanlam Euro Sanlam Sterling Liquidity Fund* Liquidity Fund* 0.30% 0.30% 0.40% 0.40% 0.20% 0.20% Sanlam Global Liquidity Fund* 0.30% 0.65% 0.25% Sanlam US Dollar Liquidity Fund* 0.30% 0.40% 0.20% Class A Shares USD Class B Shares USD Class B Shares EUR Class B Shares GBP Class C Shares USD Class D Shares USD Class G Shares USD NFB Global Balanced Fund of Funds* 0.80% 0.30% N/A N/A 0.90% N/A N/A Sanlam BIFM World Equity Fund 0.15% 0.15% N/A N/A 0.15% 0.15% N/A Sanlam BIFM Global Fixed Income Fund 0.15% 0.15% N/A N/A 0.15% 0.15% 0.15% Mpile Global Equity Fund* 1.50% 1.00% N/A N/A No Fee N/A N/A Class A Shares USD Class B Shares USD Brackenham Global Balanced Fund 0.15% 0.15% APS Global Flexible Fund of Funds 0.27% 0.27% Counterpoint Global Equity Fund* 1.50% 1.25% *For these Funds, the Manager will pay, out of the AIFM fee, the fees of the Investment Manager(s) and, where applicable, the fees of the Investment Allocation Manager and Investment Advisors also. 158 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 12 Related party transactions and significant agreements (continued) Significant Agreements (continued) Manager (continued) AIFM fees earned by the Manager during the year and outstanding accrued fees as at 31 December 2015 and 31 December 2014 are disclosed as part of the summary of AIFM and investment management fees on pages 162 to 166. Administrator SAMI, as the Administrator, is a related party of the Company. In its role as the Administrator SAMI is entitled to receive out of the assets of each Fund an annual fee ranging from 0.025% to 0.03% of the net assets of the Fund, plus an annual fee up to a maximum of USD 15,000 per annum. In addition, the Administrator is entitled to receive its reasonable costs and expenses incurred in the performance of its duties as Administrator of the Company. These fees shall accrue and be calculated on each dealing day and shall be payable monthly in arrears. The administration fees earned by the Administrator during the year and outstanding accrued administration fees at 31 December 2015 are presented in the Statement of Comprehensive Income and Statement of Financial Position respectively. Investment Managers and Investment Allocation Manager The Investment Managers are appointed by the Manager. For certain Funds, as noted on the previous page, the Manager, as AIFM, will pay out of its fees, the fees of the Investment Managers, Investment Allocation Manager and Investment Advisors (as applicable) appointed to those Funds. For the remaining Funds of the Company, the fees of the appointed Investment Managers, Investment Allocation Manager and Investment Advisors (as applicable) are paid directly by the Fund. The table below sets out the rates for the annual Investment Management fees paid directly by these Funds to the Investment Managers (in respect of each share class of the relevant Fund). These fees are payable monthly in arrears and accrued by reference to the net assets of the relevant share class on a daily basis: Class A Shares USD Class B Shares USD Class C Shares USD Class D Shares USD Class G Shares USD Sanlam BIFM World Equity Fund 1.00% 0.80% 1.10% No Fee N/A Sanlam BIFM Global Fixed Income Fund 1.50% 1.00% 0.49% No Fee 0.80% Brackenham Global Balanced Fund 1.50% 0.00% N/A N/A N/A APS Global Flexible Fund of Funds 0.60% 0.42% N/A N/A N/A Fees paid directly to the appointed Investment Managers, Investment Allocation Manager and Investment Advisors (as applicable) by these Funds during the year and outstanding accrued fees as at 31 December 2015 and 31 December 2014 are disclosed as part of the summary of AIFM and investment management fees on pages 162 to 166. Two of the appointed Investment Managers, Sanlam Investment Management (Pty) Limited and Sanlam FOUR Investments UK Limited, are related parties to the Company and the Manager. Sanlam FOUR Investments UK Limited is also the appointed Investment Allocation Manager for a number of the Funds. 159 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 12 Related party transactions and significant agreements (continued) Significant Agreements (continued) Depositary Brown Brothers Harriman Trustee Services (Ireland) Limited is the appointed Depositary to the Funds. The Depositary is not a related party to the Company. The Depositary is entitled to receive out of the assets of the Fund an annual trustee fee which will not exceed 0.015% of the net assets of the Fund (plus VAT, if any) together with reasonable costs and expenses incurred by the Depositary in the performance of its duties as Depositary of the Fund. These fees are accrued and calculated on each dealing day and are payable monthly in arrears. The Depositary is also entitled to be reimbursed out of the assets of the Fund all agreed safekeeping fees, expenses and transaction charges (which are charged at normal commercial rates). Stock lending Brown Brothers Harriman & Co. is the appointed Stock Lending Agent to the Company. The Stock Lending Agent receives remuneration for services provided as part of the Company’s stock lending arrangements, the terms of which are set out in the Stock Lending Agreement between the Company and the Stock Lending Agent. The Stock Lending Agent is not a related party to the Company. As a party to the stock lending arrangements, SAMI is also entitled to remuneration for services provided. For the year ended 31 December 2015, SAMI received USD 1,123 (2014: USD 7,645) with respect to the stock lending activity of the Analytics International Flexible Fund. Further details on the Company’s stock lending activity are disclosed in note 17. Registrar and Transfer Agent Brown Brothers Harriman Fund Administration Services (Ireland) Limited is the appointed Registrar and Transfer Agent to the Company. Transfer agency fees are charged at normal commercial rates. The Registrar and Transfer Agent is not a related party of the Company. 160 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 12 Related party transactions and significant agreements (continued) Significant shareholders at year end Shareholders First Rand Bank Ltd ITF Analytics Sanlam Life Insurance Ltd* Sanlam Life Insurance Ltd* Sanlam Life Insurance Ltd* Sanlam Life Insurance Ltd* Sanlam Life Insurance (Jersey) Ltd* Sanlam Life Insurance Ltd* Sanlam Life Insurance (Jersey) Ltd* Standard Bank of SA Ltd** Agulhas Nominees (Pty) Ltd for SPI Sanlam Life Insurance Ltd* Agri-VIE Fund PCC Company Sanlam Life Insurance (Jersey) Ltd* Fundsettle EOC Nominees Ltd Somers Dublin Ltd Botswana Insurance Fund Management* Botswana Insurance Fund Management* Konkola Copper Mine Pension Trust Standard Chartered Bank Zambia Plc Mpile Offshore Equity Fund** SCZSS Nominees Ltd - Barclays Bank Staff Stanbic Nominees SBSA ITF Brackenham SCI Managed Fund** APS CI Managed Growth Fund of Funds APS CI Moderate Fund of Funds APS CI Cautious Fund of Funds SBSA ITF Counterpoint MET Bal Plus Fund** SBSA ITF Counterpoint MET Cautious Fund** SBSA ITF Counter Point Met Value Fund** Fund Analytics International Flexible Fund Sanlam Global Balanced Fund Sanlam Global Best Ideas Feeder Fund Sanlam Global Equity Fund Sanlam Euro Liquidity Fund Sanlam Euro Liquidity Fund Sanlam Sterling Liquidity Fund Sanlam Sterling Liquidity Fund Sanlam Global Liquidity Fund Sanlam Global Liquidity Fund Sanlam US Dollar Liquidity Fund Sanlam US Dollar Liquidity Fund Sanlam US Dollar Liquidity Fund NFB Global Balanced Fund of Funds NFB Global Balanced Fund of Funds Sanlam BIFM World Equity Sanlam BIFM Global Fixed Income Mpile Global Equity Fund Mpile Global Equity Fund Mpile Global Equity Fund Mpile Global Equity Fund Mpile Global Equity Fund Brackenham Global Balanced Fund APS Global Flexible Fund of Funds APS Global Flexible Fund of Funds APS Global Flexible Fund of Funds Counterpoint Global Equity Fund Counterpoint Global Equity Fund Counterpoint Global Equity Fund % held at % held at 31 December 31 December 2015 2014 87.52% 100.00% 82.18% 84.37% 96.85% 98.07% 89.41% 90.51% 61.16% 65.11% 38.84% 34.89% 66.71% 70.15% 33.28% 29.84% 83.70% 77.35% 10.16% 58.47% 52.13% 21.05% 26.49% 16.83% 13.47% 100.00% 83.61% 16.39% 99.33% 99.81% 97.80% 99.53% 44.23% 64.34% 16.53% 11.39% 21.83% 13.70% 45.25% 38.63% 50.65% 10.72% 46.62% 28.93% 11.77% * These investors are related parties to the Company and the Manager. **These are investments by South African Unit Trusts. These Unit Trusts are managed by related parties to the Manager. 161 - SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 12 Related party transactions and significant agreements (continued) AIFM and investment management fees A summary of AIFM and investment management fees earned during the year and outstanding accrued fees as at 31 December 2015 are presented in the tables below and overleaf. Analytics International Flexible Fund* USD Fees incurred during the year ended 31 December 2015 Class A Management Fees (634,275) Class B Management Fees Class C Management Fees (634,275) Fees accrued at 31 December 2015 Class A Management Fees Class B Management Fees Class C Management Fees (48,659) (48,659) Sanlam Global Balanced Fund* USD Sanlam Global Best Ideas Feeder Fund* USD Sanlam Global Equity Fund* USD (116,613) (25,166) (850,577) (992,356) (27,449) (877) (822,222) (850,548) (25,011) (44,524) (9,768,383) (9,837,918) (8,815) (2,492) (65,401) (76,708) (1,826) (71) (37,505) (39,402) (1,282) (3,358) (745,475) (750,115) Sanlam Global Liquidity Fund* USD Sanlam USD Dollar Liquidity Fund* USD (28,452) (1,228) (29,680) (584) (11,594) (12,178) (2,405) (2,405) (910) (910) Sanlam Euro Sanlam Sterling Liquidity Liquidity Fund* Fund* EUR GBP Fees incurred during the year ended 31 December 2015 Class A Management Fees Class B Management Fees Class C Management Fees (9,975) (3,088) (9,975) (3,088) Fees accrued at 31 December 2015 Class A Management Fees Class B Management Fees Class C Management Fees (790) (790) (248) (248) *For these Funds, the Manager paid, out of the AIFM fee, the fees of the Investment Manager(s) and, where applicable, the fees of the Investment Allocation Manager and Investment Advisors also. 162 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 12 Related party transactions and significant agreements (continued) AIFM and investment management fees (continued) Sanlam International Verso Global Multi-Asset I Flexible Fund* Fund* USD USD Fees incurred during the year ended 31 December 2015 Class A Management Fees (93) (165) Class B Management Fees Class C Management Fees Class I Management Fees (95,992) (93) (96,157) Fees accrued at 31 December 2015 Class A Management Fees Class B Management Fees Class C Management Fees Class I Management Fees - - NFB Global Balanced Fund Of Funds* USD Sanlam BIFM Emerging Markets Equity Fund** USD (61,887) (35,312) (3,149) (100,348) (245) (310,566) (310,811) (7,334) (1,580) (8,914) - Sanlam BIFM Sanlam BIFM Sanlam BIFM South Africa World Equity Global Fixed Inflation Linked Fund** Income Fund** Bond Fund** USD USD USD Fees incurred during the year ended 31 December 2015 Class A Management Fees (3,354,701) (808,429) Class B Management Fees (632,513) (9,717) Class B ZAR Management Fees (75,857) Class C Management Fees (9,116) (3,987,214) (827,262) (75,857) Fees accrued at 31 December 2015 Class A Management Fees Class B Management Fees Class B ZAR Management Fees (227,109) (1,214) (228,323) (38,781) (1,237) (40,018) (1,088) (1,088) Mpile Global Equity Fund* USD - - *For these Funds, the Manager paid, out of the AIFM fee, the fees of the Investment Manager(s) and, where applicable, the fees of the Investment Allocation Manager and Investment Advisors also. **For these Funds, the fees of the Investment Manager(s), Investment Allocation Manager and Investment Advisors (as applicable) were paid directly by the Fund. 163 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 12 Related party transactions and significant agreements (continued) AIFM and investment management fees (continued) Brackenham Global Balanced Fund** USD Fees incurred during the year ended 31 December 2015 Class A Management Fees (51,311) Class B Management Fees (7,395) (58,706) Fees accrued at 31 December 2015 Class A Management Fees Class B Management Fees (12,965) (1,000) (13,965) APS Global Flexible Fund of Funds** USD Counterpoint Global Equity Fund* USD (160,810) (160,810) (84,451) (84,451) (22,121) (22,121) (14,646) (14,646) A summary of AIFM and investment management fees earned during the year and outstanding accrued fees as at 31 December 2014 are presented in the tables below and overleaf. Analytics International Flexible Fund* USD Fees incurred during the year ended 31 December 2014 Class A Management Fees (609,142) Class B Management Fees Class C Management Fees (609,142) Fees accrued at 31 December 2014 Class A Management Fees Class B Management Fees Class C Management Fees (53,638) (53,638) Sanlam Global Balanced Fund* USD Sanlam Global Best Ideas Feeder Fund* USD Sanlam Global Equity Fund* USD (118,735) (5,872) (947,435) (1,072,042) (45,934) (8,986) (945,674) (1,000,594) (33,495) (46,393) (10,540,623) (10,620,511) (10,832) (1,443) (77,470) (89,745) (2,885) (76) (79,328) (82,289) (4,514) (3,931) (862,992) (871,437) *For these Funds, the Manager paid, out of the AIFM fee, the fees of the Investment Manager(s) and, where applicable, the fees of the Investment Allocation Manager and Investment Advisors also. **For these Funds, the fees of the Investment Manager(s), Investment Allocation Manager and Investment Advisors (as applicable) were paid directly by the Fund. 164 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 12 Related party transactions and significant agreements (continued) AIFM and investment management fees (continued) Sanlam Euro Sanlam Sterling Liquidity Liquidity Fund* Fund* EUR GBP Fees incurred during the year ended 31 December 2014 Class A Management Fees Class B Management Fees Class C Management Fees (10,867) (3,435) (10,867) (3,435) Fees accrued at 31 December 2014 Class A Management Fees Class B Management Fees Class C Management Fees (883) (883) (279) (279) Sanlam International Verso Global Multi-Asset I Flexible Fund* Fund* USD USD Fees incurred during the year ended 31 December 2014 Class A Management Fees (1,201) (2,824) Class A (GBP) Management Fees (2,938) Class B Management Fees Class B (GBP) Management Fees (267) Class C Management Fees Class I Management Fees (605,708) (4,406) (608,532) Fees accrued at 31 December 2014 Class A Management Fees Class B Management Fees Class C Management Fees Class I Management Fees (93) (93) (251) (45,845) (46,096) Sanlam Global Liquidity Fund* USD Sanlam USD Dollar Liquidity Fund* USD (32,389) (33,494) (65,883) (108) (13,213) (13,321) (2,501) (759) (3,260) (100) (1,062) (1,162) NFB Global Balanced Fund Of Funds* USD Sanlam BIFM Emerging Markets Equity Fund** USD (834) (81,052) (12,278) (94,164) (8,723) (1,732,874) (1,741,597) (302) (4,157) (3,595) (8,054) (170) (132,344) (132,514) *For these Funds, the Manager paid, out of the AIFM fee, the fees of the Investment Manager(s) and, where applicable, the fees of the Investment Allocation Manager and Investment Advisors also. **For these Funds, the fees of the Investment Manager(s), Investment Allocation Manager and Investment Advisors (as applicable) were paid directly by the Fund. 165 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 12 Related party transactions and significant agreements (continued) AIFM and investment management fees (continued) Sanlam BIFM Sanlam BIFM World Equity Global Fixed Fund** Income Fund** USD USD Fees incurred during the year ended 31 December 2014 Class A Management Fees (4,603,928) (1,861,678) Class B Management Fees (4,268,749) (2,804) Class B ZAR Management Fees Class C Management Fees (13,313) (8,872,677) (1,877,795) Fees accrued at 31 December 2014 Class A Management Fees Class B Management Fees Class B ZAR Management Fees (278,177) (294,210) (572,387) (159,909) (159,909) Sanlam BIFM South Africa Inflation Linked Bond Fund** USD Mpile Global Equity Fund* USD (114,943) (114,943) - (26,966) (26,966) - *For these Funds, the Manager paid, out of the AIFM fee, the fees of the Investment Manager(s) and, where applicable, the fees of the Investment Allocation Manager and Investment Advisors also. **For these Funds, the fees of the Investment Manager(s), Investment Allocation Manager and Investment Advisors (as applicable) were paid directly by the Fund. The Manager may rebate a portion of its fees to certain of the Funds of the Company where those Funds are themselves invested into other funds managed by the Manager or enter into special fee arrangements and/or rebate agreements, in its sole discretion, with certain shareholders who may be affiliates of the Manager, including Botswana Insurance Fund Management, Sanlam Private Investments (Pty) Limited, Sanlam Life Insurance Limited, Sanlam Life & Pensions (UK) Limited and Sanlam Collective Investments Limited. With the exception of NFB Global Balanced Fund of Funds and APS Global Flexible Fund of Funds, rebate income earned by each of the Funds of the Company, as disclosed on the Statement of Comprehensive Income, was paid from the profits of the Manager. Related Transactions Sanlam Global Best Ideas Feeder Fund and Sanlam Global Balanced Fund operate as feeder funds of the Sanlam Universal Funds Plc. Sanlam Global Equity Fund also operates as a feeder fund to the Sanlam Universal Funds Plc, but the investment policy of the Fund also allows it to invest in Funds that are not subfunds of the Sanlam Universal Funds Plc. The Fund’s investments are detailed in the portfolio of investments on pages 84 to 112. All of the Fund’s underlying funds are managed by related parties within the Sanlam Group. The transactions overleaf occurred within Sanlam Limited (the “Group”) during the year ended 31 December 2015: 166 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 12 Related party transactions and significant agreements (continued) Related Transactions (continued) Sanlam Global Balanced Fund Year Ended 31 December 2015 USD Purchases: Sanlam World Equity Fund Sanlam Centre Select Global Equity Fund Sanlam FOUR Stable Global Equity Fund 8IP Australian Small Companies Fund Total purchases 11,500,000 41,133,322 52,633,322 Sanlam BIFM Global Fixed Income Fund Year Ended 31 December 2015 USD Purchases: Sanlam Global Bond Fund Sanlam World Equity Tracker Fund Total purchases 80,470 80,470 Sanlam Global Balanced Fund Year Ended 31 December 2015 USD Sales: Sanlam World Equity Fund Sanlam Equity Allocation Sanlam Global Best Ideas Fund Sanlam Global Bond Fund SIIP India Opportunities Fund Total sales 18,361,811 5,540,594 4,100,000 28,002,405 167 Sanlam Global Sanlam BIFM Equity Fund World Equity Fund Year Ended Year Ended 31 December 31 December 2015 2015 USD USD 91,640,596 1,725,363 93,365,959 Mpile Global Equity Fund Year Ended 31 December 2015 USD 113,804 113,804 Counterpoint Global Equity Fund Year Ended 31 December 2015 USD 6,123,086 6,123,086 2,500,000 2,500,000 Sanlam Global Best Ideas Feeder Fund Year Ended 31 December 2015 USD Sanlam Global Equity Fund Year Ended 31 December 2015 USD 71,528,447 71,528,447 315,495,223 550,000 316,045,223 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 12 Related party transactions and significant agreements (continued) Related Transactions (continued) Sanlam BIFM Global Fixed Income Fund Year Ended 31 December 2015 USD Sanlam BIFM World Equity Fund Year Ended 31 December 2015 USD Sales: Sanlam World Equity Fund Sanlam World Equity Tracker Fund Sanlam Global Bond Fund Total sales 100,200,000 100,200,000 83,538,849 83,538,849 Counterpoint Global Equity Fund Year Ended 31 December 2015 USD 2,400,151 2,400,151 The following transactions occurred within Sanlam Limited (the “Group”) during the year ended 31 December 2014: Sanlam Global Balanced Fund Year Ended 31 December 2014 USD Purchases: Sanlam World Equity Fund Sanlam Emerging Market Equity Tracker Fund Sanlam North America Equity Tracker Fund Sanlam Global Bond Fund Sanlam FOUR US Dividend Income Fund SIIP India Opportunities Fund Total purchases Sanlam Global Equity Fund Year Ended 31 December 2014 USD Sanlam BIFM World Equity Fund Year Ended 31 December 2014 USD 26,200,000 947,073,834 13,262,404 87,042,241 45,763,826 25,000,000 11,997,702 71,963,826 1,084,376,181 152,476 152,476 Sanlam BIFM Global Fixed Income Fund Year Ended 31 December 2014 USD Purchases: Sanlam Global Bond Fund Sanlam World Equity Tracker Fund Total purchases 29,309,700 29,309,700 168 Mpile Global Equity Fund Year Ended 31 December 2014 USD 471,000 471,000 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 12 Related party transactions and significant agreements (continued) Related Transactions (continued) Sanlam Global Balanced Fund Year Ended 31 December 2014 USD Sanlam Global Best Ideas Feeder Fund Year Ended 31 December 2014 USD Sanlam Global Equity Fund Year Ended 31 December 2014 USD 45,071,163 13,500,012 22,248,505 5,600,000 20,045,911 106,465,591 27,167,876 27,167,876 124,900,012 13,744,647 97,885,905 236,530,564 Sales: Sanlam World Equity Fund Sanlam Emerging Market Equity Tracker Fund Sanlam North America Equity Tracker Fund Sanlam Global Property Fund Sanlam Global Bond Fund Sanlam Global Best Ideas Fund Sanlam Strategic Cash Fund Total sales Sales: Sanlam World Equity Fund Sanlam World Equity Tracker Fund Sanlam Global Property Fund Sanlam Global Bond Fund Sanlam Global Best Ideas Fund Sanlam Strategic Cash Fund Total sales Sanlam International Multi-Asset I Fund Year Ended 31 December 2014 USD Sanlam BIFM World Equity Fund Year Ended 31 December 2014 USD Sanlam BIFM Emerging Markets Equity Fund Year Ended 31 December 2014 USD 105,000 134,900 85,900 67,200 23,100 416,100 14,551,000 14,551,000 8,940,984 8,940,984 Sanlam BIFM Global Fixed Income Fund Year Ended 31 December 2014 USD Sales: Sanlam World Equity Tracker Fund Total sales 23,000,000 23,000,000 169 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 12 Related party transactions and significant agreements (continued) Related Transactions (continued) In-specie transfers The following in-specie transfers occurred during the year ended 31 December 2015: Redemptions from BIFM World Equity Fund include in specie transfers to Botswana Insurance Fund Management Limited during the year of assets with a fair value at the date of transfer of USD 435,066,173. Redemptions from BIFM South Africa Inflation Linked Bond Fund include in specie transfers to Botswana Insurance Fund Management Limited during the year of assets with a fair value at the date of transfer of ZAR 947,834,510. The USD equivalent of this ZAR amount at the date of transfer was USD 81,063,460. Subscriptions in Brackenham Global Balanced Fund include in specie transfers from Brackenham SCI Managed Fund during the year in exchange for assets with a fair value at the date of transfer of USD 7,261,745. During the year, Sanlam Global Balanced Fund redeemed positions it held in Sanlam World Equity Fund via transfer of assets from Sanlam World Equity Fund. These assets had a fair value at the date of transfer of USD 8,661,811. During the year, Sanlam Global Balanced Fund redeemed positions it held in Miton American Fund via a transfer of assets from Miton American Fund. These assets had a fair value at the date of transfer of USD 16,638,911. During the year, Sanlam Global Balanced Fund redeemed positions it held in Miton Global Equity Fund via a transfer of assets from Miton Global Equity Fund. These assets had a fair value at the date of transfer of USD 24,819,046. The following in specie transfers occurred during the year ended 31 December 2014: Subscriptions in Mpile Global Equity Fund include in specie transfers from Africa Life during the year, in exchange for assets with a fair value at date of transfer of USD 6,837,717. Cross Investments No Fund held any investments in other Funds within the Company at 31 December 2015 or 31 December 2014. 13 Efficient portfolio management The Funds may enter into forward foreign currency contracts for efficient portfolio management. Forward foreign currency exchange contracts are used to hedge against anticipated future changes in exchange rates which otherwise might either adversely affect the value of the Funds’ portfolio securities or adversely affect the price of securities which the Funds intend to purchase at a later date. The Funds may use forward currency contracts to alter the currency characteristics of the underlying assets of the Funds. The Funds may also enter into futures contracts for efficient portfolio management. The primary purposes for which the Funds use futures contracts are cash equalisation, hedging and return enhancement. The purpose of cash equalisation is to expose uninvested cash within the Funds to equity market-like returns and ensure that the Funds’ liquid assets are utilised as though invested in the markets. Hedging is used by the Funds to limit or control risks, such as adverse movements in exchange rates and interest returns. 170 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 13 Efficient portfolio management (continued) Return enhancement can be accomplished through the use of futures in the Funds. By purchasing certain instruments, the Funds may more effectively achieve the desired portfolio characteristics that assist the Funds in meeting their investment objectives. 14 Soft commissions Some of the Investment Managers have soft commission agreements in place in respect of the investments managed by them. 15 Portfolio changes A list of portfolio changes during the year is available, free of charge, from the Administrator. 16 Underlying collective investment schemes The Funds of the Company invest in collective investment schemes. These underlying collective schemes may be subject to management and performance fees. Those Funds of the Company which operate as feeder funds to the sub-funds of Sanlam Universal Funds plc invest in non-fee paying classes of the relevant sub-funds. In addition, Sanlam BIFM World Equity Fund, Sanlam BIFM Global Fixed Income Fund and Mpile Global Equity Fund invest in fee paying classes of sub-funds of Sanlam Universal Funds Plc. The table below and overleaf summarises the collective investment schemes in which the Funds of the Company hold investments at 31 December 2015 and details the investment management fees and incentive fees incurred relating to these collective investment schemes: Year ended 31 December 2015 Collective Investment Fund Name Scheme Name 8IP Australian Small Sanlam Global Equity Fund Companies fund Sanlam BIFM World Equity Aberdeen Global - World Fund Equity Fund BlackRock Global Funds Mpile Global Equity Fund Global Equity Income Fund BlackRock Institutional Cash Series-Sterling Sanlam Global Liquidity Fund Liquidity Fund (UCITS) BlackRock Institutional Euro Sanlam Global Liquidity Fund Fund (UCITS) APS Global Flexible Fund of Coronation Global Managed Funds Fund Franklin Templeton Global Mpile Global Equity Fund Equity Income Fund Sanlam Global Liquidity Fund Institutional Cash Series Plc Sanlam US Dollar Liquidity Fund Institutional Cash Series Plc Institutional Euro Liquidity Sanlam Global Liquidity Fund Fund 1 % of net assets 2 % of the gains in net assets above the benchmark 171 Collective Investment Scheme Type Australian RMIC Luxembourg UCITS Luxembourg UCITS Investment Management 1 Fees (%) Incentive 2 Fees (%) 1.29% 20.00% - - 0.75% - Irish UCITS 0.10% - Irish UCITS 0.10% - Irish UCITS Luxembourg UCITS Irish UCITS Irish UCITS 0.85% 20.00% 1.00% 0.10% 0.10% - Irish UCITS 0.10% - SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 16 Underlying collective investment schemes (continued) Year ended 31 December 2015 (continued) Fund Name Sanlam Euro Liquidity Fund Sanlam Global Liquidity Fund Sanlan Sterling Liquidity Fund APS Global Flexible Fund of Funds APS Global Flexible Fund of Funds NFB Global Balanced Fund of Funds NFB Global Balanced Fund of Funds NFB Global Balanced Fund of Funds Brackenham Global Balanced Fund Brackenham Global Balanced Fund NFB Global Balanced Fund of Funds NFB Global Balanced Fund of Funds APS Global Flexible Fund of Funds APS Global Flexible Fund of Funds Brackenham Global Balanced Fund Brackenham Global Balanced Fund NFB Global Balanced Fund of Funds Sanlam BIFM Global Fixed Income Fund Collective Investment Scheme Type Investment Management 1 Fees (%) Incentive 2 Fees (%) Irish UCITS 0.10% - Irish UCITS 0.10% - Irish UCITS Luxembourg UCITS Luxembourg UCITS 0.10% - 0.75% - 0.75% - ETF 0.59% - ETF 0.46% - ETF 0.25% - ETF 0.62% - ETF 0.62% - ETF 0.50% - ETF 0.20% - Irish UCITS 1.00% - Irish UCITS Bermudan Orbis Optimal SA Fund Ltd OEIC Orbis SICAV - Japan Equity Luxembourg Fund UCITS PIMCO Funds Global Investors Series Plc Unconstrained Bond Fund Irish UCITS PIMCO Funds Global Investors Series Plc - Global High Yield Bond Fund Irish UCITS 1.00% - 1.00% 20.00% 0.50% 1.74% 1.25% - 0.55% - Collective Investment Scheme Name Institutional Euro Liquidity Fund Institutional Sterling Liquidity Fund Institutional Sterling Liquidity Fund Investec Global Multi Asset Income Fund Investec Global Strategic Managed Fund iShares Developed Markets Property Yield Fund UCITS ETF iShares DJ Stoxx Global Select Dividend 100 iShares Global Inflation Linked Government Bond UCITS ETF iShares MSCI South Korea Index Fund iShares MSCI Taiwan Index Fund iShares MSCI World UCITS ETF iShares Core MSCI World UCITS ETF Nedgroup Global Equity Fund Nedgroup Global Flexible Fund 1 % of net assets 2 % of the gains in net assets above the benchmark 172 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 16 Underlying collective investment schemes (continued) Year ended 31 December 2015 (continued) Fund Name Sanlam Global Equity Fund Sanlam Global Balanced Fund Sanlam Global Equity Fund Sanlam Global Balanced Fund Sanlam Global Balanced Fund Sanlam Global Equity Fund Sanlam Global Equity Fund Sanlam Global Best Ideas Feeder Fund Sanlam BIFM Global Fixed Income Fund Sanlam Global Balanced Fund Sanlam BIFM World Equity Fund Sanlam Global Balanced Fund Sanlam Global Equity Fund Mpile Global Equity Fund Sanlam Global Balanced Fund APS Global Flexible Fund of Funds Sanlam Global Equity Fund Collective Investment Scheme Name Sanlam FOUR Active European Ex-UK Equity Fund Class B EUR Sanlam FOUR Global Equity Fund Class B USD Sanlam FOUR Global Equity Fund Class B USD Sanlam FOUR Multi Strategy Fund Class B USD Sanlam FOUR Stable Global Equity Class B USD Sanlam FOUR Stable Global Equity Class B USD Sanlam FOUR US Dividend Income Fund Class B USD Sanlam Global Best Ideas Universal Fund Class E Sanlam Global Bond Fund Class C Sanlam Global Bond Fund Class E Sanlam World Equity Fund Class C Sanlam World Equity Fund Class E Sanlam World Equity Fund Class E Sanlam World Equity Tracker Fund Class I Sanlam Centre Global Select Equity Fund Sarasin IE Real Estate Equity Global GBP SIIP India Opportunities Fund Class E 1 % of net assets 2 % of the gains in net assets above the benchmark 173 Collective Investment Scheme Type Investment Management 1 Fees (%) Incentive 2 Fees (%) Irish UCITS - - Irish UCITS - - Irish UCITS - - Irish UCITS - - Irish UCITS - - Irish UCITS - - Irish UCITS - - Irish UCITS - - Irish UCITS 0.60% - Irish UCITS - - Irish UCITS 0.75% - Irish UCITS - - Irish UCITS - - Irish UCITS 0.30% - Irish UCITS - - Irish UCITS 1.50% - Irish UCITS - - SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 16 Underlying collective investment schemes (continued) The table below and overleaf summarises the collective investment schemes in which the Funds of the Company hold investments at 31 December 2014 and details the investment management fees and incentive fees incurred relating to these collective investment schemes: Year ended 31 December 2014 Fund Name Sanlam Global Equity Fund Sanlam BIFM World Equity Fund Mpile Global Equity Fund Mpile Global Equity Fund Sanlam Euro Liquidity Fund Sanlam Global Liquidity Fund Sanlam Global Liquidity Fund Sanlam Sterling Liquidity Fund Sanlam Global Liquidity Fund Sanlam US Dollar Liquidity Fund NFB Global Balanced Fund of Funds NFB Global Balanced Fund of Funds NFB Global Balanced Fund of Funds NFB Global Balanced Fund of Funds NFB Global Balanced Fund of Funds Sanlam Global Balanced Fund Sanlam Global Balanced Fund Collective Investment Scheme Name 8IP Australian Small Companies Fund Aberdeen Global - World Equity Fund BlackRock Global Funds Global Equity Income Fund Franklin Templeton Global Equity Income Fund Institutional Euro Liquidity Fund Institutional Euro Liquidity Fund BlackRock Institutional Sterling Liquidity Fund Institutional Sterling Liquidity Fund Institutional Cash Series Plc Institutional Cash Series Plc iShares Developed Markets Property Yield Fund UCITS ETF iShares DJ Stoxx Global Select Dividend 100 iShares Global Inflation Linked Government Bond UCITS ETF iShares MSCI World UCITS ETF iShares Core MSCI World UCITS ETF Miton American Fund Miton Global Equity Fund 1 % of net assets 2 % of the gains in net assets above the benchmark 174 Collective Investment Scheme Type Australian RMIC Luxembourg UCITS Investment Management 1 Fees (%) Incentive 2 Fees (%) 1.29% - - - 0.75% - 1.00% - Irish UCITS - - Irish UCITS - - Irish UCITS - - Irish UCITS - - Irish UCITS - - Irish UCITS - - ETF 0.59% - ETF 0.45% - ETF - - ETF 0.50% - ETF UK Unit Trust UK Unit Trust 0.20% 0.75% 0.75% - Luxembourg UCITS Luxembourg UCITS SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 16 Underlying collective investment schemes (continued) Year ended 31 December 2014 (continued) Fund Name Sanlam BIFM Global Fixed Income Fund NFB Global Balanced Fund of Funds Sanlam Global Balanced Fund Sanlam Global Equity Fund Sanlam Global Balanced Fund Sanlam Global Balanced Growth Fund Sanlam International Multi-Asset I Fund Sanlam International Multi-Asset I Fund Sanlam Global Equity Fund Sanlam Global Best Ideas Feeder Fund Sanlam BIFM Global Fixed Income Fund Sanlam Global Balanced Fund Sanlam International Multi-Asset I Fund Sanlam International Multi-Asset I Fund Sanlam International Multi-Asset I Fund Sanlam BIFM World Equity Fund Sanlam Global Balanced Fund Collective Investment Scheme Name PIMCO Funds Global Investors Series Plc Global High Yield Bond Fund PIMCO Funds Global Investors Series Plc Unconstrained Bond Fund Sanlam Equity Allocation Fund Class E Sanlam FOUR Active European (ex UK) Equity Fund Sanlam FOUR Active Global Income & Growth Fund Sanlam FOUR MultiStrategy Fund Sanlam FOUR MultiStrategy Fund Sanlam FOUR Stable Global Equity Fund Sanlam FOUR US Dividend Income Fund Class B (USD) Sanlam Global Best Ideas Universal Fund Class E Sanlam Global Bond Fund Class C Sanlam Global Bond Fund Class E Sanlam Global Bond Fund Class E Sanlam Global Property Fund Class E Sanlam Strategic Cash Fund Class E Sanlam World Equity Fund Class C Sanlam World Equity Fund Class E 1 % of net assets 2 % of the gains in net assets above the benchmark 175 Collective Investment Scheme Type Investment Management 1 Fees (%) Incentive 2 Fees (%) Irish UCITS 0.55% - Irish UCITS 1.25% - Irish UCITS - - Irish UCITS - - Irish UCITS - - Irish UCITS - - Irish UCITS - - Irish UCITS - - Irish UCITS - - Irish UCITS - - Irish UCITS 0.60% - Irish UCITS - - Irish UCITS - - Irish UCITS - - Irish UCITS - - Irish UCITS 0.75% - Irish UCITS - - SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 16 Underlying collective investment schemes (continued) Year ended 31 December 2014 (continued) Collective Investment Fund Name Scheme Name Sanlam World Equity Fund Sanlam Global Equity Fund Class E Sanlam International Multi-Asset I Sanlam World Equity Fund Fund Class E Sanlam International Multi-Asset I Sanlam World Equity Fund Tracker Fund Class E Sanlam World Equity Mpile Global Equity Fund Tracker Fund Class I Sanlam Global Equity Fund SIIP India Opportunities Fund Class E Sanlam BIFM Emerging Markets Equity Fund SIM Property Fund 1 % of net assets 2 % of the gains in net assets above the benchmark Collective Investment Scheme Type Investment Management 1 Fees (%) Incentive 2 Fees (%) Irish UCITS - - Irish UCITS - - Irish UCITS 0.30% - Irish UCITS 0.30% - - - 1.71% - Irish UCITS South African Mutual Fund Some of the fees detailed in the tables above and on the preceding pages are subject to rebate agreements. Any rebates recovered by the Funds are invested in the Funds. 17 Stock lending activities Stock lending activities are conducted through Brown Brothers Harriman & Co pursuant to the Securities Lending Agency Agreement dated 29 August 2014. In this arrangement, the Company transfers securities to a counterparty, in return for which it is agreed that securities of the same kind and amount should be transferred back to the Company at a later date. The arrangement has the substance of a loan of the Company’s securities in return for collateral. The collateral held is in a form required by the Central Bank of Ireland. Aggregate income arising from stock lending activities consists of fees charged to a counterparty, where the counterparty has provided collateral other than cash, plus net realised income derived from investments of cash collateral less any rebate payable to a counterparty on cash collateral less any commissions or similar transactions costs. Pursuant to the Securities Lending Agency Agreement, income from stock lending activities is split in the ratio of 70:30 in favour of the Company, with Brown Brothers Harriman & Co. and SAMI receiving 30% as remuneration for their services. The Company received income as follows under the terms of those agreements for the year ended 31 December 2015: Analytics International Flexible Fund Year ended 31/12/2015 USD Income 3,620 176 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 17 Stock lending activities (continued) A summary of collateral related to stock lending held as at 31 December 2015 is as follows: Analytics International Flexible Fund Year ended 31/12/2015 USD Aggregate value of securities on loan at year end Aggregate value of collateral held in respect of the loans 120,079 126,083 Collateral % 105% The Company received income as follows under the terms of those agreements for the year ended 31 December 2014: Analytics International Flexible Fund Year ended 31/12/2014 USD Income 12,497 A summary of collateral related to stock lending held as at 31 December 2014 is as follows: Analytics International Flexible Fund Year ended 31/12/2014 USD Aggregate value of securities on loan at year end Aggregate value of collateral held in respect of the loans Collateral % 18 71,773 75,361 105.00% Risk arising from Financial Instruments The Funds of the Company maintain positions in a variety of financial instruments in accordance with each Fund's investment objective and policies. In addition, certain of the Funds operate as feeder funds to or invest into various underlying funds. Investments in underlying funds expose those Funds to various types of risk that are associated with the financial investments and markets of the underlying funds. The significant types of financial risks to which all the Funds of the Company are exposed are market risk, price risk, liquidity risk and counterparty credit risk. Asset allocation is determined by the Funds’ Investment Managers, who manage the allocations of assets to achieve the investment objectives. Divergence from target asset allocations and the composition of the portfolio is monitored by the Funds’ Investment Managers. The performances of the Funds, together with various risk measures, are discussed by the Board of Directors and its appointed advisors on a quarterly basis. The Manager enters into Agreements with the Investment Managers and Investment Allocation Managers as applicable. The Agreements include details on the parameters within which the Funds must be managed. 177 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 18 Risk arising from Financial Instruments (continued) The Agreements include items such as maximum exposure to cash/asset classes, exposure to a single issuer or Fund and the relevant rules for RIAIF's as set out in the AIF Rulebook of the Central Bank. The Investment Managers are required to report to the Manager on a monthly basis that they have managed the portfolio in accordance with the Investment Management Agreement and that no breaches occurred during the month. If, during the course of the month, the Investment Manager does detect a breach, they must notify the Manager immediately with the details of the breach, its cause, the impact on the Fund and their proposed action to resolve the breach. The Manager will engage with the Investment Manager to determine what action should be taken (this can include putting the Fund back to the position it would have been in if the breach had not occurred). The Depositary will also be consulted to ensure they are in agreement with the proposed remedy. Each Investment Manager appointed by SAMI will have its own risk management policies and procedures in place, which may differ from Investment Manager to Investment Manager, and these will be considered by SAMI at the time of assessing the Investment Manager and in regular periodic assessments of the Investment Manager. Varieties of methods are used to monitor market risk and are described below. (i) Market Risk The potential for changes in the fair value or cash flows of the Fund’s investment is referred to as market risk. Categories of market risk include currency risk, interest rate risk and other price risk. The Company’s market risk strategy is driven by the Company’s underlying Funds’ investment objectives. The AIFM has instructed the Manager to manage each of the risks in accordance with policies and procedures in place. (a) Currency Risk Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates. Currency risks may result from exposures to changes in spot prices, forward prices and volatilities of currency rates. The Funds may invest in financial investments and enter into transactions denominated in currencies other than their functional currency. The Funds are also exposed to the currency risk of the underlying funds in which they invest. Consequently, the Funds may be exposed to risks that the exchange rate of their functional currency, relative to other foreign currencies, may change in a manner that has an adverse effect on the value of that portion of the Funds’ assets or liabilities denominated in currencies other than the functional currency. The Investment Managers are allowed to invest in derivatives to manage currency risk. When considering the asset allocation of each Fund, the relevant Investment Manager will consider the likely movement of foreign exchange rates in investment decisions. The tables overleaf set out the Funds’ exposure to foreign currency risk and sensitivity analysis. 178 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 18 Risk arising from Financial Instruments (continued) (i) Market Risk (continued) (a) Currency Risk (continued) Analytics International Flexible Fund 31 December 2015 USD Australian Dollar Canadian Dollar Swiss Franc Chilean Peso Chinese Yuan Euro Pound Sterling Hong Kong Dollar Indonesian Rupiah Japanese Yen Mexican Peso Norwegian Kroner New Zealand Dollar Swedish Krona Total Australian Dollar Canadian Dollar Chinese Yuan Euro Hong Kong Dollar Japanese Yen New Zealand Dollar Norwegian Kroner Pound Sterling Swedish Krona Swiss Franc Total 184,992 1,182,655 3,554,421 76,878 616,704 1,424,733 7,544,470 272,338 255,950 1,576,909 66,556 190,469 957,255 121,872 18,026,202 % movement 10.00 7.89 2.57 7.35 0.60 9.80 3.87 (0.01) 2.58 7.18 9.66 13.95 9.44 11.45 31 December 2014 USD % movement 79,210 2,421,882 799,441 1,739,664 699,138 1,341,085 1,080,116 371,844 7,333,203 169,476 4,189,836 3.49 3.58 (0.37) 0.02 (0.01) 4.15 (0.59) 3.58 (2.57) 2.65 (0.65) 20,224,895 Effect of movement against Net Assets and Profit* 31 December 2015 USD Concentration of foreign exchange exposure % 18,493 93,297 91,288 5,650 3,729 139,637 291,988 (40) 6,614 113,243 6,428 26,570 90,405 13,952 901,254 0.40 2.59 7.78 0.17 1.35 3.12 16.51 0.60 0.56 3.45 0.15 0.42 2.09 0.27 39.46 Effect of movement against Net Assets and Profit* 31 December 2014 USD Concentration of foreign exchange exposure % 2,763 86,801 (2,965) 371 (94) 55,715 (6,410) 13,299 (188,286) 4,498 (27,285) (61,593) 0.16 4.81 1.59 3.45 1.39 2.66 2.14 0.74 14.55 0.34 8.32 40.15 *The estimated movement is based on the average of the last two years exchange rate movements which management considers is a reasonable possible change in foreign exchange rates, but actual results can differ significantly. 179 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 18 Risk arising from Financial Instruments (continued) (i) Market Risk (continued) (a) Currency Risk (continued) Sanlam Global Balanced Fund 31 December 2015 USD Pound Sterling Euro Total Pound Sterling Total 105,310 25 105,335 % movement 3.87 9.80 Effect of movement against Net Assets and Profit* 31 December 2015 USD Concentration of foreign exchange exposure % 4,076 2 4,078 0.09 0.09 Concentration of foreign exchange exposure % 31 December 2014 USD % movement Effect of movement against Net Assets and Profit* 31 December 2014 USD 32,849,985 (2.57) (843,452) 24.81 (843,452) 24.81 32,849,985 *The estimated movement is based on the average of the last two years exchange rate movements which management considers is a reasonable possible change in foreign exchange rates, but actual results can differ significantly. Sanlam Global Best Ideas Feeder Fund At 31 December 2015 and 31 December 2014, Sanlam Global Best Ideas Feeder Fund did not have an exposure to foreign currency risk arising from its investments. 180 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 18 Risk arising from Financial Instruments (continued) (i) Market Risk (continued) (a) Currency Risk (continued) Sanlam Global Equity Fund 31 December 2015 USD Australian Dollar Euro Pound Sterling South African Rand Total Australian Dollar Euro Pound Sterling South African Rand 30,810,938 12,323,106 59,586 3,060 43,196,690 % movement 10.00 9.80 3.87 8.88 Effect of movement against Net Assets and Profit* 31 December 2015 USD Concentration of foreign exchange exposure % 3,079,983 1,207,779 2,306 272 4,290,340 2.65 1.06 0.01 3.72 Concentration of foreign exchange exposure % 2.16 0.88 3.04 31 December 2014 USD % movement Effect of movement against Net Assets and Profit* 31 December 2014 USD 29,362,026 12,003,468 62,975 4,106 3.49 0.02 (2.57) 6.15 1,024,387 2,562 (1,617) 252 41,432,575 1,025,584 *The estimated movement is based on the average of the last two years exchange rate movements which management considers is a reasonable possible change in foreign exchange rates, but actual results can differ significantly. Sanlam Euro Liquidity Fund At 31 December 2015 and 31 December 2014, Sanlam Euro Liquidity Fund did not have an exposure to foreign currency risk arising from its investments. Sanlam Sterling Liquidity Fund At 31 December 2015 and 31 December 2014, Sanlam Sterling Liquidity Fund did not have an exposure to foreign currency risk arising from its investments. 181 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 18 Risk arising from Financial Instruments (continued) (i) Market Risk (continued) (a) Currency Risk (continued) Sanlam Global Liquidity Fund 31 December 2015 USD Euro Pound Sterling Total 3,892,517 1,409,890 5,302,407 31 December 2014 USD Euro Pound Sterling Total 4,185,536 1,631,114 5,816,650 % movement 9.80 3.87 % movement 0.02 (2.57) Effect of movement against Net Assets and Profit* 31 December 2015 USD Concentration of foreign exchange exposure % 381,503 54,566 436,069 0.34 0.12 0.46 Effect of movement against Net Assets and Profit* 31 December 2014 USD Concentration of foreign exchange exposure % 894 (41,880) (40,986) 38.83 15.13 53.96 *The estimated movement is based on the average of the last two years exchange rate movements which management considers is a reasonable possible change in foreign exchange rates, but actual results can differ significantly. Sanlam US Dollar Liquidity Fund At 31 December 2015 and 31 December 2014, Sanlam US Dollar Liquidity Fund did not have an exposure to foreign currency risk arising from its investments. Sanlam International Multi-Asset I Fund Sanlam International Multi-Asset I Fund closed during 2015. The Fund’s exposure to foreign currency risk at 31 December 2014 is set out below. 31 December 2014 USD Euro Pound Sterling Total 85 3,071 3,156 % movement Effect of movement against Net Assets and Profit* 31 December 2014 USD Concentration of foreign exchange exposure % 0.02 (2.57) (79) 0.11 3.91 4.02 (79) *The estimated movement is based on the average of the last two years exchange rate movements which management considers is a reasonable possible change in foreign exchange rates, but actual results can differ significantly. 182 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 18 Risk arising from Financial Instruments (continued) (i) Market Risk (continued) (a) Currency Risk (continued) Verso Global Flexible Fund Verso Global Flexible Fund closed during 2015. The Fund’s exposure to foreign currency risk at 31 December 2014 is set out below. 31 December 2014 USD Australian Dollar Canadian Dollar Danish Krone Euro Hong Kong Dollar Japanese Yen Mexican Peso Pound Sterling Singapore Dollar South African Rand Swedish Krona Swiss Franc Total 771,951 307,551 1,690,782 10,028,785 783,063 6,874,942 270,006 4,595,300 267,079 296,340 384,489 2,239,513 28,509,801 % movement 3.49 3.58 0.02 (0.01) 4.15 2.15 (2.57) 0.62 6.15 2.65 (0.65) Effect of movement against Net Assets and Profit* 31 December 2014 USD Concentration of foreign exchange exposure % 26,932 11,023 60 2,141 (105) 285,620 5,793 (117,988) 1,650 18,219 10,206 (14,584) 228,967 1.57 0.63 3.44 20.42 1.59 14.00 0.55 9.36 0.54 0.60 0.78 4.56 58.04 *The estimated movement is based on the average of the last two years exchange rate movements which management considers is a reasonable possible change in foreign exchange rates, but actual results can differ significantly. NFB Global Balanced Fund of Funds 31 December 2015 USD Euro Total 13,424,261 13,424,261 31 December 2014 USD Euro Total 14,233,704 14,233,704 % movement 9.80 % movement 0.02 Effect of movement against Net Assets and Profit* 31 December 2015 USD Concentration of foreign exchange exposure % 1,315,702 1,315,702 79.12 79.12 Effect of movement against Net Assets and Profit* 31 December 2014 USD Concentration of foreign exchange exposure % 3,039 3,039 62.40 62.40 *The estimated movement is based on the average of the last two years exchange rate movements which management considers is a reasonable possible change in foreign exchange rates, but actual results can differ significantly. 183 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 18 Risk arising from Financial Instruments (continued) (i) Market Risk (continued) (a) Currency Risk (continued) Sanlam BIFM Emerging Markets Equity Fund Sanlam BIFM Emerging Markets Equity Fund closed during 2015. The Fund’s exposure to foreign currency risk at 31 December 2014 is set out below. Australian Dollar Brazilian Real Chilean Peso Euro Hong Kong Dollar Indian Rupee Indonesian Rupiah Kenyan Shilling Mexican Peso New Taiwan Dollar Nigerian Naira Philippine Peso Pound Sterling Qatari Riyal Romanian New Lei Singapore Dollar South African Rand South Korean Won Swedish Krona Swiss Franc Thai Baht Turkish Lira United Arab Emirates Dirham Total 31 December 2014 USD % movement Effect of movement against Net Assets and Profit* 31 December 2014 USD Concentration of foreign exchange exposure % 744,306 7,459,447 1,593,991 4,786,713 20,707,815 11,308,569 3,905,361 953,614 1,400,903 4,771,540 1,930,797 1,901,408 11,986,431 4,706,934 1,122,413 2,653,326 7,422,015 6,763,274 238,545 3,087,623 14,505,002 4,146,948 3.49 4.46 4.27 0.02 (0.01) 6.92 2.06 1.07 2.15 1.11 1.85 2.29 (2.57) (0.06) 1.64 0.62 6.15 (1.86) 2.65 (0.65) 2.91 7.40 25,967 332,423 68,065 1,022 (2,780) 782,138 80,288 10,167 30,058 53,195 35,742 43,630 (307,762) (3,040) 18,433 16,390 456,294 (125,554) 6,332 (20,107) 421,582 306,867 0.48 4.81 1.03 3.09 13.35 7.29 2.52 0.61 0.90 3.08 1.24 1.23 7.73 3.03 0.72 1.71 4.78 4.36 0.15 1.99 9.35 2.67 1,787,039 119,884,014 - (24) 2,229,326 1.15 77.27 *The estimated movement is based on the average of the last two years exchange rate movements which management considers is a reasonable possible change in foreign exchange rates, but actual results can differ significantly. 184 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 18 Risk arising from Financial Instruments (continued) (i) Market Risk (continued) (a) Currency Risk (continued) Sanlam BIFM World Equity Fund 31 December 2015 USD Australian Dollar Canadian Dollar Swiss Franc Danish Krone Euro Pound Sterling Hong Kong Dollar Japanese Yen South Korean Won Norwegian Kroner Swedish Krona Singapore Dollar Thai Baht Total 857,477 2,303,407 8,443,346 353,996 42,818,754 28,241,154 11,469,857 14,546,169 3,076,379 2,705,831 511,675 1,356,328 409,947 117,094,320 31 December 2014 USD Australian Dollar Canadian Dollar Danish Krone Euro Hong Kong Dollar Japanese Yen Norwegian Kroner Pound Sterling Singapore Dollar South Korean Won Swedish Krona Swiss Franc Thai Baht Total 4,115,660 7,446,987 2,618,031 132,685,947 38,195,529 34,034,269 7,691,999 55,899,353 4,559,272 7,137,110 2,134,079 20,331,026 3,939,654 320,788,916 % movement 10.00 7.89 2.57 9.84 9.80 3.87 (0.01) 7.18 3.79 13.95 11.45 4.25 2.72 % movement 3.49 3.58 0.02 (0.01) 4.15 3.58 (2.57) 0.62 (1.86) 2.65 (0.65) 2.91 Effect of movement against Net Assets and Profit* 31 December 2015 USD Concentration of foreign exchange exposure % 85,717 181,711 216,851 34,818 4,196,636 1,092,996 (1,701) 1,044,608 116,522 377,454 58,578 57,665 11,168 7,473,023 0.32 0.87 3.17 0.13 16.08 10.61 4.31 5.46 1.16 1.02 0.19 0.51 0.15 43.98 Effect of movement against Net Assets and Profit* 31 December 2014 USD Concentration of foreign exchange exposure % 143,588 266,902 92 28,325 (5,127) 1,413,954 275,100 (1,435,264) 28,163 (132,494) 56,645 (132,399) 114,504 621,989 0.54 0.99 0.35 17.55 5.05 4.50 1.02 7.39 0.60 0.94 0.28 2.69 0.52 42.42 *The estimated movement is based on the average of the last two years exchange rate movements which management considers is a reasonable possible change in foreign exchange rates, but actual results can differ significantly. 185 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 18 Risk arising from Financial Instruments (continued) (i) Market Risk (continued) (a) Currency Risk (continued) Sanlam BIFM Global Fixed Income Fund At 31 December 2015 and 31 December 2014, Sanlam BIFM Global Fixed Income Fund did not have an exposure to foreign currency risk arising from its investments. Sanlam BIFM South Africa Inflation Linked Bond Fund Sanlam BIFM South Africa Inflation Linked Bond Fund closed during 2015. The Fund’s exposure to foreign currency risk at 31 December 2014 is set out below. 31 December 2014 USD South African Rand Total 63,791,432 63,791,432 % movement 6.15 Effect of movement against Net Assets and Profit* 31 December 2014 USD Concentration of foreign exchange exposure % 4,161,565 4,161,565 100.09 100.09 *The estimated movement is based on the average of the last two years exchange rate movements which management considers is a reasonable possible change in foreign exchange rates, but actual results can differ significantly. Mpile Global Equity Fund At 31 December 2015 and 31 December 2014, Mpile Global Equity Fund did not have an exposure to foreign currency risk arising from its investments. Brackenham Global Balanced Fund 31 December 2015 USD Swiss Franc Euro Pound Sterling Japanese Yen South Korean Won Norweigan Kroner Singapore Dollar Total 1,524,750 273,195 1,481,525 426,884 140,987 142,437 470,360 4,460,138 % movement 2.57 9.80 3.87 7.18 3.79 13.95 4.25 Effect of movement against Net Assets and Profit* 31 December 2015 USD Concentration of foreign exchange exposure % 39,160 26,776 57,338 30,656 5,340 19,869 19,998 199,137 8.79 1.58 8.54 2.46 0.81 0.82 2.71 25.71 *The estimated movement is based on the average of the last two years exchange rate movements which management considers is a reasonable possible change in foreign exchange rates, but actual results can differ significantly. 186 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 18 Risk arising from Financial Instruments (continued) (i) Market Risk (continued) (a) Currency Risk (continued) APS Global Flexible Fund of Funds At 31 December 2015, APS Global Flexible Fund of Funds did not have an exposure to foreign currency risk arising from its investments. Counterpoint Global Equity Fund 31 December 2015 USD Pound Sterling Total 360,703 360,703 % movement Effect of movement against Net Assets and Profit* 31 December 2015 USD Concentration of foreign exchange exposure % 13,960 13,960 2.55 2.55 3.87 *The estimated movement is based on the average of the last two years exchange rate movements which management considers is a reasonable possible change in foreign exchange rates, but actual results can differ significantly. (b) Interest rate risk Interest rate risks may result from exposures to changes in the level, slope and curvature of the yield curve, the volatility of interest rates, mortgage prepayment speeds and credit spreads. Interest rates are determined by factors of supply and demand in the international money markets, which are influenced by macro-economic factors, speculation and central bank and government intervention. Fluctuations in short-term and/or long-term interest rates may affect the value of the Funds. All Funds are potentially subject to interest rate risk on their cash balances and indirectly through their investments in underlying funds as at 31 December 2015 and 31 December 2014. Analytics International Flexible Fund The interest rate profile of the financial assets of Analytics International Flexible Fund as at 31 December 2015 and 31 December 2014 was as follows: Interest Rate Characteristics Total Exposure 2015 USD Effect of 1.00% movement in interest rates on Net Asset and Profit* USD Floating rate financial assets Fixed rate financial assets Total 5,658,406 4,977,925 10,636,331 56,584 49,779 106,363 Interest Rate Characteristics Total Exposure 2014 USD Effect of 1.00% movement in interest rates on Net Asset and Profit* USD Floating rate financial assets Fixed rate financial assets Total 3,888,522 5,221,673 9,110,195 38,885 52,217 91,102 *The estimated movement is based on management's determination of a reasonably possible change in interest rates, taking into account current market conditions and expectations for future interest rate movements, but actual results can differ significantly. 187 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 18 Risk arising from Financial Instruments (continued) (i) Market Risk (continued) (b) Interest rate risk (continued) Sanlam Global Balanced Fund The interest rate profile of the financial assets of Sanlam Global Balanced Fund as at 31 December 2015 and 31 December 2014 was as follows: Interest Rate Characteristics Floating rate financial assets Non interest bearing securities Total Interest Rate Characteristics Floating rate financial assets Non interest bearing securities Total Total Exposure 2015 USD Effect of 1.00% movement in interest rates on Net Asset and Profit* USD 2,081,346 111,305,073 20,813 1,113,051 113,386,419 1,133,864 Total Exposure 2014 USD Effect of 1.00% movement in interest rates on Net Asset and Profit* USD 946,891 131,560,904 132,507,795 9,469 1,315,609 1,325,078 *The estimated movement is based on management's determination of a reasonably possible change in interest rates, taking into account current market conditions and expectations for future interest rate movements, but actual results can differ significantly. Sanlam Global Best Ideas Feeder Fund The interest rate profile of the financial assets of Sanlam Global Best Ideas Feeder Fund as at 31 December 2015 and 31 December 2014 was as follows: Interest Rate Characteristics Floating rate financial assets Non interest bearing securities Total Interest Rate Characteristics Floating rate financial assets Non interest bearing securities Total Total Exposure 2015 USD Effect of 1.00% movement in interest rates on Net Asset and Profit* USD 26,195 50,764,385 50,790,580 262 507,644 507,906 Total Exposure 2014 USD Effect of 1.00% movement in interest rates on Net Asset and Profit* USD 49,941 127,711,141 499 1,277,111 127,761,082 1,277,610 *The estimated movement is based on management's determination of a reasonably possible change in interest rates, taking into account current market conditions and expectations for future interest rate movements, but actual results can differ significantly. 188 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 18 Risk arising from Financial Instruments (continued) (i) Market Risk (continued) (b) Interest rate risk (continued) Sanlam Global Equity Fund The interest rate profile of the financial assets of Sanlam Global Equity Fund as at 31 December 2015 and 31 December 2014 was as follows: Interest Rate Characteristics Floating rate financial assets Non interest bearing securities Total Interest Rate Characteristics Floating rate financial assets Non interest bearing securities Total Total Exposure 2015 USD Effect of 1.00% movement in interest rates on Net Asset and Profit USD 5,400,884 1,155,026,558 1,160,427,442 54,009 11,550,266 11,604,275 Total Exposure 2014 USD Effect of 1.00% movement in interest rates on Net Asset and Profit USD 2,377,401 1,354,735,474 1,357,112,875 23,774 13,547,355 13,571,129 *The estimated movement is based on management's determination of a reasonably possible change in interest rates, taking into account current market conditions and expectations for future interest rate movements, but actual results can differ significantly. Sanlam Euro Liquidity Fund The interest rate profile of the financial assets of Sanlam Euro Liquidity Fund as at 31 December 2015 and 31 December 2014 was as follows: Interest Rate Characteristics Floating rate financial assets Non interest bearing securities Total Interest Rate Characteristics Floating rate financial assets Non interest bearing securities Total Total Exposure 2015 EUR Effect of 1.00% movement in interest rates on Net Asset and Profit* EUR 1,296,201 3,344,023 4,640,224 12,962 33,440 46,402 Total Exposure 2014 EUR Effect of 1.00% movement in interest rates on Net Asset and Profit* EUR 1,467,001 3,728,617 14,670 37,286 5,195,618 51,956 *The estimated movement is based on management's determination of a reasonably possible change in interest rates, taking into account current market conditions and expectations for future interest rate movements, but actual results can differ significantly. 189 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 18 Risk arising from Financial Instruments (continued) (i) Market Risk (continued) (b) Interest rate risk (continued) Sanlam Sterling Liquidity Fund The interest rate profile of the financial assets of Sanlam Sterling Liquidity Fund as at 31 December 2015 and 31 December 2014 was as follows: Interest Rate Characteristics Floating rate financial assets Non interest bearing securities Total Interest Rate Characteristics Floating rate financial assets Non interest bearing securities Total Total Exposure 2015 GBP Effect of 1.00% movement in interest rates on Net Asset and Profit* GBP 383,299 1,073,066 1,456,365 3,833 10,731 14,564 Total Exposure 2014 GBP Effect of 1.00% movement in interest rates on Net Asset and Profit* GBP 455,338 1,193,202 4,553 11,932 1,648,540 16,485 *The estimated movement is based on management's determination of a reasonably possible change in interest rates, taking into account current market conditions and expectations for future interest rate movements, but actual results can differ significantly. Sanlam Global Liquidity Fund The interest rate profile of the financial assets of Sanlam Global Liquidity Fund as at 31 December 2015 and 31 December 2014 was as follows: Interest Rate Characteristics Floating rate financial assets Non interest bearing securities Total Interest Rate Characteristics Floating rate financial assets Non interest bearing securities Total Total Exposure 2015 USD Effect of 1.00% movement in interest rates on Net Asset and Profit* USD 327,427 9,114,484 9,441,911 3,274 91,145 94,419 Total Exposure 2014 USD Effect of 1.00% movement in interest rates on Net Asset and Profit* USD 267,129 10,514,485 10,781,614 2,671 105,145 107,816 *The estimated movement is based on management's determination of a reasonably possible change in interest rates, taking into account current market conditions and expectations for future interest rate movements, but actual results can differ significantly. 190 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 18 Risk arising from Financial Instruments (continued) (i) Market Risk (continued) (b) Interest rate risk (continued) Sanlam US Dollar Liquidity Fund The interest rate profile of the financial assets of Sanlam US Dollar Liquidity Fund as at 31 December 2015 and 31 December 2014 was as follows: Interest Rate Characteristics Floating rate financial assets Non interest bearing securities Total Interest Rate Characteristics Floating rate financial assets Non interest bearing securities Total Total Exposure 2015 USD Effect of 1.00% movement in interest rates on Net Asset and Profit* USD 1,506,300 3,870,288 5,376,588 15,063 38,703 53,766 Total Exposure 2014 USD Effect of 1.00% movement in interest rates on Net Asset and Profit* USD 1,950,819 4,825,469 6,776,288 19,508 48,255 67,763 *The estimated movement is based on management's determination of a reasonably possible change in interest rates, taking into account current market conditions and expectations for future interest rate movements, but actual results can differ significantly. Sanlam International Multi-Asset I Fund The interest rate profile of the financial assets of Sanlam International Multi-Asset I Fund as at 31 December 2014 was as follows: Interest Rate Characteristics Total Exposure 2014 USD Effect of 1.00% movement in interest rates on Net Asset and Profit* USD 71,485 71,485 715 715 Non interest bearing securities Total *The estimated movement is based on management's determination of a reasonably possible change in interest rates, taking into account current market conditions and expectations for future interest rate movements, but actual results can differ significantly. Verso Global Flexible Fund The interest rate profile of the financial assets of Verso Global Flexible Fund as at 31 December 2014 was as follows: Interest Rate Characteristics Total Exposure 2014 USD Effect of 1.00% movement in interest rates on Net Asset and Profit* USD Floating rate financial assets Total 1,498,055 1,498,055 14,981 14,981 *The estimated movement is based on management's determination of a reasonably possible change in interest rates, taking into account current market conditions and expectations for future interest rate movements, but actual results can differ significantly. 191 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 18 Risk arising from Financial Instruments (continued) (i) Market Risk (continued) (b) Interest rate risk (continued) NFB Global Balanced Fund of Funds The interest rate profile of the financial assets of NFB Global Balanced Fund of Funds as at 31 December 2015 and 31 December 2014 was as follows: Interest Rate Characteristics Floating rate financial assets Non interest bearing securities Total Interest Rate Characteristics Floating rate financial assets Non interest bearing securities Total Total Exposure 2015 USD Effect of 1.00% movement in interest rates on Net Asset and Profit* USD 812,252 16,152,440 16,964,692 8,123 161,524 169,647 Total Exposure 2014 USD Effect of 1.00% movement in interest rates on Net Asset and Profit* USD 5,709,516 17,083,333 22,792,849 57,095 170,833 227,928 *The estimated movement is based on management's determination of a reasonably possible change in interest rates, taking into account current market conditions and expectations for future interest rate movements, but actual results can differ significantly. Sanlam BIFM Emerging Markets Equity Fund The interest rate profile of the financial assets of Sanlam BIFM Emerging Markets Equity Fund as at 31 December 2014 was as follows: Interest Rate Characteristics Floating rate financial assets Non interest bearing securities Total Total Exposure 2014 USD Effect of 1.00% movement in interest rates on Net Asset and Profit* USD 7,232,619 240,794 7,473,413 72,326 2,408 74,734 *The estimated movement is based on management's determination of a reasonably possible change in interest rates, taking into account current market conditions and expectations for future interest rate movements, but actual results can differ significantly. 192 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 18 Risk arising from Financial Instruments (continued) (i) Market Risk (continued) (b) Interest rate risk (continued) Sanlam BIFM World Equity Fund The interest rate profile of the financial assets of Sanlam BIFM World Equity Fund as at 31 December 2015 and 31 December 2014 was as follows: Interest Rate Characteristics Floating rate financial assets Non interest bearing securities Total Interest Rate Characteristics Floating rate financial assets Non interest bearing securities Total Total Exposure 2015 USD Effect of 1.00% movement in interest rates on Net Asset and Profit* USD 1,943,377 64,413,293 66,356,670 19,434 644,133 663,567 Total Exposure 2014 USD Effect of 1.00% movement in interest rates on Net Asset and Profit* USD 13,480,765 185,786,161 199,266,926 134,808 1,857,862 1,992,670 *The estimated movement is based on management's determination of a reasonably possible change in interest rates, taking into account current market conditions and expectations for future interest rate movements, but actual results can differ significantly. Sanlam BIFM Global Fixed Income Fund The interest rate profile of the financial assets of Sanlam BIFM Global Fixed Income Fund as at 31 December 2015 and 31 December 2014 was as follows: Interest Rate Characteristics Floating rate financial assets Non interest bearing securities Total Interest Rate Characteristics Floating rate financial assets Non interest bearing securities Total Total Exposure 2015 USD Effect of 1.00% movement in interest rates on Net Asset and Profit* USD 354,899 31,068,651 31,423,550 3,549 310,687 314,236 Total Exposure 2014 USD Effect of 1.00% movement in interest rates on Net Asset and Profit* USD 804,088 132,479,704 133,283,792 8,041 1,324,797 1,332,838 *The estimated movement is based on management's determination of a reasonably possible change in interest rates, taking into account current market conditions and expectations for future interest rate movements, but actual results can differ significantly. 193 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 18 Risk arising from Financial Instruments (continued) (i) Market Risk (continued) (b) Interest rate risk (continued) Sanlam BIFM South Africa Inflation Linked Bond The interest rate profile of the financial assets of Sanlam BIFM South Africa Inflation Linked Bond Fund as at 31 December 2014 was as follows: Interest Rate Characteristics Floating rate financial assets Non interest bearing securities Total Total Exposure 2014 USD Effect of 1.00% movement in interest rates on Net Asset and Profit* USD 3,899,711 63,361,082 67,260,793 38,997 633,611 672,608 *The estimated movement is based on management's determination of a reasonably possible change in interest rates, taking into account current market conditions and expectations for future interest rate movements, but actual results can differ significantly. Mpile Global Equity Fund The interest rate profile of the financial assets of Mpile Global Equity Fund as at 31 December 2015 and 31 December 2014 was as follows: Interest Rate Characteristics Floating rate financial assets Non interest bearing securities Total Interest Rate Characteristics Floating rate financial assets Non interest bearing securities Total Total Exposure 2015 USD Effect of 1.00% movement in interest rates on Net Asset and Profit* USD 196,868 25,127,387 25,324,255 1,969 251,274 253,243 Total Exposure 2014 USD Effect of 1.00% movement in interest rates on Net Asset and Profit* USD 79,641 12,614,102 12,693,743 796 126,141 126,937 *The estimated movement is based on management's determination of a reasonably possible change in interest rates, taking into account current market conditions and expectations for future interest rate movements, but actual results can differ significantly. Brackenham Global Balanced Fund The interest rate profile of the financial assets of Brackenham Global Balanced Fund as at 31 December 2015 was as follows: Total Exposure Effect of 1.00% movement in interest Interest Rate Characteristics 2015 rates on Net Asset and Profit* USD USD Floating rate financial assets 6,510,846 65,108 Non interest bearing securities 1,668,365 16,684 Total 8,179,211 81,792 *The estimated movement is based on management's determination of a reasonably possible change in interest rates, taking into account current market conditions and expectations for future interest rate movements, but actual results can differ significantly. 194 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 18 Risk arising from Financial Instruments (continued) (i) Market Risk (continued) (b) Interest rate risk (continued) APS Global Flexible Fund of Funds The interest rate profile of the financial assets of APS Global Flexible Funds of Funds as at 31 December 2015 was as follows: Total Exposure Effect of 1.00% movement in interest Interest Rate Characteristics 2015 rates on Net Asset and Profit* USD USD Floating rate financial assets 2,306,405 23,064 Non interest bearing securities 43,470,602 434,706 Total 45,777,007 457,770 *The estimated movement is based on management's determination of a reasonably possible change in interest rates, taking into account current market conditions and expectations for future interest rate movements, but actual results can differ significantly. Counterpoint Global Equity Fund The interest rate profile of the financial assets of Counterpoint Global Equity Fund as at 31 December 2015 was as follows: Total Exposure Effect of 1.00% movement in interest Interest Rate Characteristics 2015 rates on Net Asset and Profit* USD USD Floating rate financial assets 1,531,773 15,318 Non interest bearing securities Total 1,531,773 15,318 *The estimated movement is based on management's determination of a reasonably possible change in interest rates, taking into account current market conditions and expectations for future interest rate movements, but actual results can differ significantly. (c) Other price risk Price risk is the risk that (a) the value of a financial investment will fluctuate as a result of changes in market prices, whether caused by factors specific to an individual investment, its issuer or any factor affecting financial investments traded in the market or (b) the risk that the valuations of the underlying Funds into which the Funds invest does not reflect the true value because the values are not verified by an independent third party, or the values of these underlying funds are not available at the valuation points of the funds. Other price risks may result from exposures to changes in the prices and volatilities of individual equities, equity baskets, equity indices, and commodities. Each Fund is required to be managed in accordance with the prospectus, Fund supplement and the RIAIF requirements as set out in the AIF rulebook of the Central Bank of Ireland. Each Investment Manager is required to report to the Manager each month that the respective Funds have been managed in accordance with the Investment Management Agreement agreed between them. As the Funds’ financial investments are carried at fair value with fair value changes recognised in the Statement of Comprehensive Income, all changes in market conditions will directly affect net assets attributable to holders of redeemable participating shares. 195 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 18 Risk arising from Financial Instruments (continued) (i) Market Risk (continued) (c) Other price risk (continued) The following table demonstrates Management’s best estimate of the sensitivity of net assets and profit to change in the relevant benchmark index 5 year annualised return: Benchmark Index 5 year annualised return 2015 % Benchmark Index 5 year annualised Total Effect* Total Effect* return 31 December 31 December 2014 2015 2014 % USD USD Fund name Benchmark index name Analytics International Flexible Fund*** 60% MSCI All Country World/40% Citigroup WGBI 3.60 6.77 1,463,820 3,236,702 Sanlam Global Balanced Fund 65% MSCI World/35% Barclays Capital Global Aggregate Bond 5.37 7.69 5,971,563 10,117,034 Sanlam Global Best Ideas Feeder Fund MSCI World 7.59 10.20 3,851,105 13,026,536 Sanlam Global Equity Fund MSCI World 7.59 10.20 87,800,221 138,412,336 Sanlam Euro Liquidity Fund 7 Day LIBID Rate (Euro) 0.10 0.22 3,426 8,203 Sanlam Sterling Liquidity Fund 7 Day LIBID Rate (Sterling) 0.39 0.41 4,222 4,892 Sanlam Global Liquidity Fund Composite benchmark (45% US/40% EU/15% GB) (1.63) (1.14) (148,297) (119,865) Sanlam US Dollar Liquidity Fund 7 Day LIBID Rate (US Dollar) 0.04 0.06 1,551 2,895 Sanlam International Multi Asset I Fund** USD 3 Month LIBOR + 2% N/A 2.51 N/A 1,794 Verso Global Flexible Fund** MSCI World N/A 12.87 N/A 6,129,515 G7 Inflation plus 2% 2.74 2.83 443,085 483,458 MSCI Emerging Markets Index N/A (4.31) N/A (6,371,539) MSCI World Index 3.66 7.71 9,689,383 57,496,950 NFB Global Balanced Fund of Funds*** Sanlam BIFM Emerging Markets Equity Fund** Sanlam BIFM World Equity Fund*** *Total effect is the impact on Net Assets and Profit, calculated as the total exposure (as detailed in Note 8) multiplied by the Benchmark Index 5 year annualised return, but actual results could differ significantly. **This Fund closed in 2015. ***This Fund has not been in operation for 5 years. The benchmark index annualised return is calculated from the date of inception of the Fund. 196 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 18 Risk arising from Financial Instruments (continued) (i) Market Risk (continued) (c) Other price risk (continued) Fund name Benchmark index name Sanlam BIFM Global Fixed Income Fund*** Sanlam BIFM South Africa Inflation Linked Bond Fund** Barclays Capital Global Aggregate Barclays/ABSA S.A Government InflationLinked Bond Index Mpile Global Equity Fund*** Benchmark Index 5 year annualised return 2015 % Benchmark Index 5 year annualised Total Effect* Total Effect* return 31 December 31 December 2014 2015 2014 % USD USD (1.85) (0.72) (574,136) (953,854) N/A (4.23) N/A (2,680,174) MSCI World (1.96) (1.95) (492,101) (245,975) APS Global Flexible Fund of Funds*** MSCI World (7.12) N/A (3,094,316) N/A Counterpoint Global Equity Fund*** MSCI World (5.66) N/A (715,485) N/A *Total effect is the impact on Net Assets and Profit, calculated as the total exposure (as detailed in Note 8) multiplied by the Benchmark Index 5 year annualised return, but actual results could differ significantly. **This Fund closed in 2015. ***This Fund has not been in operation for 5 years. The benchmark index annualised return is calculated from the date of inception of the Fund. At 31 December 2015, Brackenham Global Balanced Fund does not have a benchmark index. (ii) Liquidity Risk Liquidity risk is defined as the risk that a Fund will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. Exposure to liquidity risk increases because of the possibility that a Fund could be required to redeem its shares earlier than expected. The Funds are exposed to cash redemptions of its redeemable shares on a daily basis. Shares are redeemable at the holder’s option based on the Fund’s net asset value per share at the time of redemption calculated in accordance with the Fund’s constitution. The Funds, therefore, are exposed to the liquidity risk of meeting shareholder redemptions at any time. The majority of the Funds’ financial investments are either listed securities or collective investment schemes trading on a regular basis which are readily realisable. All Investment Managers are required to keep appropriate levels of cash or near cash investments to meet normal day to day liquidity demands, for example from normal levels of investor redemptions and to meet expense payments as they fall due. In addition the Manager performs daily monitoring of cash balances and reports low or overdrawn cash balances to Investment Managers. 197 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 18 Risk arising from Financial Instruments (continued) (ii) Liquidity Risk (continued) In the event of significant requests for redemption of shares resulting in the Funds having to liquidate investments more rapidly than otherwise desirable, in order to raise cash for the redemptions and achieve a market position appropriately reflecting a smaller asset base, the Board of Directors has the ability to levy a dilution charge so that the investors remaining in the Funds are not disadvantaged. The Company manages its obligation to repurchase the shares when required to do so and its overall liquidity risk as follows: The Articles provide that the Company cannot affect the repurchase of Shares, if after payment of any account in connection with such repurchase, the Net Asset Value of the issued share capital would be equal or less than EUR38,100 or its foreign currency equivalent. The Directors are entitled to limit the number of shares of any Fund repurchased on any dealing day to Shares representing 10% of the total Net Asset Value of Shares of that Fund in issue on that Dealing Day. In this event, the limitation will apply pro-rata so that all shareholders wishing to have shares of the Fund repurchased on that Dealing Day realize the same proportion of such Shares and Shares not repurchased, but which would have otherwise been repurchased, will be carried forward for repurchase on the next Dealing Day and will be dealt with in priority (on a rateable basis) to repurchase request received subsequently. If requests for repurchases are carried forward, the Registrar and Transfer Agent will inform the shareholders affected. The Articles contain special provisions where a repurchase request received from a Shareholder would result in more than 5 per cent of the Net Asset Value of Shares of any Fund being repurchased by the Company on any Dealing Day. In such a case the Company may satisfy all or part of the repurchase request by a distribution of investments of the relevant Fund in specie provided that such a distribution would not be prejudicial to the interests of the remaining Shareholders of that Fund. The Shareholder however may require the Company to sell such investments on his behalf and pay him the proceeds of sale less any costs incurred in connection with such sale. The Directors may at any time temporarily suspend the calculation of the Net Asset Value of any Fund and the issue, repurchase and conversion of Shares and the payment of repurchase proceeds during inter alia any period during which any transfer of Funds involved in the realisation or acquisition of investments of the relevant Fund cannot, in the opinion of the Directors, be effected at normal prices or rates of exchange or any period during which the Directors are unable to repatriate Funds required for the purpose of making payments due on repurchase of Shares in the relevant Fund, or any period when the Directors consider it to be in the best interest of the Company. Where possible, all reasonable steps will be taken to bring any period of suspension to an end as soon as possible. The Fund’s policy is to satisfy redemption requests by the following means: 1. Withdrawal of cash deposits; 2. Disposal of highly liquid assets (i.e. short-term, low-risk debt investments); 3. Disposal of other investments; 4. The Fund may borrow on a temporary basis in order to fund redemptions; and 5. Searching for new investors. 198 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 18 Risk arising from Financial Instruments (continued) (ii) Liquidity Risk (continued) The Fund invests primarily in marketable securities and other financial instruments, which under normal market conditions are readily convertible to cash. In addition, the Fund’s policy is to maintain sufficient cash and cash equivalents to meet normal operating requirements and expected redemption requests. Trading limits and collateral arrangements limit the extent to which liabilities can be incurred by the Fund. It is the Fund’s policy that the Investment Manager monitors the Fund’s liquidity position on a daily basis and that the Board of Directors reviews it on a quarterly basis. For the avoidance of doubt none of the assets of the Company are subject to special liquidity arrangements. The tables overleaf summarise the maturity profile of the Funds’ financial liabilities. Balances due within 6 months equal their carrying amounts, as the impact of discounting is significant. The table also analyses the maturity profile of the Funds’ financial assets in order to provide a complete view of the Funds’ contractual commitments and liquidity. 199 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 18 Risk arising from Financial Instruments (continued) (ii) Liquidity Risk (continued) Analytics International Flexible Fund 2015 Cash Due on demand Due within 6 months Total USD USD USD 4,960,688 - 4,960,688 - 139,072 139,072 Accrued income Financial assets at fair value through profit and loss 40,693,936 - 40,693,936 Total Financial Assets 45,654,624 139,072 45,793,696 (16,311) - (65,656) (16,311) (65,656) (5,878) (5,878) Financial liabilities at fair value through profit and loss Accrued expenses Administration fees accrued Redeemable participating shares (45,705,851) - (45,705,851) Total Financial Liabilities (45,722,162) (71,534) (45,793,696) Due on demand Due within 6 months Total USD USD USD 2,502,752 - 2,502,752 - 127,970 127,970 47,810,369 - 47,810,369 Analytics International Flexible Fund 2014 Cash Accrued income Financial assets at fair value through profit and loss Other debtors Total Financial Assets Financial liabilities at fair value through profit and loss Accrued expenses - 15,246 15,246 50,313,121 143,216 50,456,337 (891) - (63,443) (891) (63,443) - (6,102) (6,102) Administration fees accrued Redeemable participating shares (50,385,901) - (50,385,901) Total Financial Liabilities (50,386,792) (69,545) (50,456,337) 200 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 18 Risk arising from Financial Instruments (continued) (ii) Liquidity Risk (continued) Sanlam Global Balanced Fund 2015 Cash Due on demand Due within 6 months Total USD USD USD 2,081,346 - 2,081,346 Financial assets at fair value through profit and loss 111,305,073 - 111,305,073 Total Financial Assets 113,386,419 - 113,386,419 Accrued expenses - (94,997) (94,997) Administration fees accrued - (16,745) (16,745) Amounts payable on repurchase of shares - (758,151) (758,151) Redeemable participating shares (112,516,526) - (112,516,526) Total Financial Liabilities (112,516,526) (869,893) (113,386,419) Due on demand Due within 6 months Total USD USD USD 946,891 - 946,891 - - - Other debtors 131,560,904 - 15,452 131,560,904 15,452 Total Financial Assets 132,507,795 15,452 132,523,247 Accrued expenses - (100,577) (100,577) Administration fees accrued - (18,068) (18,068) Sanlam Global Balanced Fund 2014 Cash Amounts receivable on issue of shares Financial assets at fair value through profit and loss - (9,709) (9,709) Redeemable participating shares (132,394,893) - (132,394,893) Total Financial Liabilities (132,394,893) (128,354) (132,523,247) Amounts payable on repurchase of shares 201 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 18 Risk arising from Financial Instruments (continued) (ii) Liquidity Risk (continued) Sanlam Global Best Ideas Feeder Fund 2015 Due on demand Due within 6 months Total USD USD USD Cash 26,195 - 26,195 Financial assets at fair value through profit and loss 50,764,385 - 50,764,385 Total Financial Assets 50,790,580 - 50,790,580 - (55,409) (55,409) Accrued expenses Administration fees accrued - (10,571) (10,571) Redeemable participating shares (50,724,600) - (50,724,600) Total Financial Liabilities (50,724,600) (65,980) (50,790,580) Due on demand Due within 6 months Total USD USD USD 49,941 - 49,941 - - - Other debtors 127,711,141 - 11,087 127,711,141 11,087 Total Financial Assets 127,761,082 11,087 127,772,169 Accrued expenses - (89,651) (89,651) Administration fees accrued - (15,005) (15,005) Redeemable participating shares (127,667,513) - (127,667,513) Total Financial Liabilities (127,667,513) (104,656) (127,772,169) Sanlam Global Best Ideas Feeder Fund 2014 Cash Amounts receivable on issue of shares Financial assets at fair value through profit and loss 202 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 18 Risk arising from Financial Instruments (continued) (ii) Liquidity Risk (continued) Sanlam Global Equity Fund 2015 Cash Financial assets at fair value through profit and loss Due on demand Due within 6 months Total USD USD USD 5,400,884 - 5,400,884 1,157,362,330 - 1,157,362,330 Other debtors - 36 36 1,162,763,214 36 1,162,763,250 Accrued expenses - (838,380) (838,380) Administration fees accrued - (123,958) (123,958) Redeemable participating shares (1,161,800,912) - (1,161,800,912) Total Financial Liabilities (1,161,800,912) (962,338) (1,162,763,250) Due on demand Due within 6 months Total USD USD USD 2,377,401 - 2,377,401 - - - 1,356,983,691 - - Other debtors Total Financial Assets 1,359,361,092 86,892 86,892 1,356,983,691 86,892 Accrued expenses - (904,909) (904,909) Administration fees accrued - (121,359) (121,359) Total Financial Assets Sanlam Global Equity Fund 2014 Cash Amounts receivable on issue of shares Financial assets at fair value through profit and loss 1,359,447,984 - (54,458) (54,458) Redeemable participating shares (1,358,367,258) - (1,358,367,258) Total Financial Liabilities (1,358,367,258) (1,080,726) (1,359,447,984) Amounts payable on repurchase of shares 203 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 18 Risk arising from Financial Instruments (continued) (ii) Liquidity Risk (continued) Due on demand Due within 6 months Total EUR EUR EUR Cash 1,296,201 - 1,296,201 Financial assets at fair value through profit and loss 3,344,023 - 3,344,023 Sanlam Euro Liquidity Fund 2015 Other debtors - 245 245 4,640,224 245 4,640,469 Accrued expenses - (12,013) (12,013) Administration fees accrued - (1,185) (1,185) Redeemable participating shares (4,627,271) - (4,627,271) Total Financial Liabilities (4,627,271) (13,198) (4,640,469) Due on demand Due within 6 months Total EUR EUR EUR 1,467,001 - 1,467,001 Other debtors 3,728,617 - 3,957 3,728,617 3,957 Total Financial Assets 5,195,618 3,957 5,199,575 Accrued expenses - (6,693) (6,693) Administration fees accrued - (2,192) (2,192) Amounts payable on repurchase of shares - (4,250) (4,250) Total Financial Assets Sanlam Euro Liquidity Fund 2014 Cash Financial assets at fair value through profit and loss Redeemable participating shares (5,186,440) - (5,186,440) Total Financial Liabilities (5,186,440) (13,135) (5,199,575) 204 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 18 Risk arising from Financial Instruments (continued) (ii) Liquidity Risk (continued) Sanlam Sterling Liquidity Fund 2015 Cash Due on demand Due within 6 months Total GBP GBP GBP 383,299 - 383,299 Financial assets at fair value through profit and loss 1,073,066 - 1,073,066 Total Financial Assets 1,456,365 - 1,456,365 Accrued expenses - (8,450) (8,450) Administration fees accrued - (642) (642) (1,447,273) (1,447,273) (9,092) (1,447,273) (1,456,365) Due on demand Due within 6 months Total GBP GBP GBP 455,338 - 455,338 1,193,202 - 1,193,202 - 1,817 1,817 1,648,540 1,817 1,650,357 Accrued expenses - (5,592) (5,592) Administration fees accrued - (1,720) (1,720) Amounts payable on repurchase of shares - (21,400) (21,400) (1,621,645) (1,621,645) (28,712) (1,621,645) (1,650,357) - Redeemable participating shares Total Financial Liabilities Sanlam Sterling Liquidity Fund 2014 Cash Financial assets at fair value through profit and loss Other debtors Total Financial Assets Redeemable participating shares Total Financial Liabilities 205 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 18 Risk arising from Financial Instruments (continued) (ii) Liquidity Risk (continued) Sanlam Global Liquidity Fund 2015 Cash Due on demand Due within 6 months Total USD USD USD 327,427 - 327,427 Financial assets at fair value through profit and loss 9,114,484 - 9,114,484 Total Financial Assets 9,441,911 - 9,441,911 - (12,833) (12,833) Accrued expenses Administration fees accrued - (1,995) (1,995) Redeemable participating shares (9,427,083) - (9,427,083) Total Financial Liabilities (9,427,083) (14,828) (9,441,911) Due on demand Due within 6 months Total USD USD USD 267,129 - 267,129 10,514,485 - 10,514,485 - 13,085 13,085 10,781,614 13,085 10,794,699 Accrued expenses - (11,415) (11,415) Administration fees accrued - (3,895) (3,895) Sanlam Global Liquidity Fund 2014 Cash Financial assets at fair value through profit and loss Other debtors Total Financial Assets Redeemable participating shares (10,779,389) - (10,779,389) Total Financial Liabilities (10,779,389) (15,310) (10,794,699) 206 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 18 Risk arising from Financial Instruments (continued) (ii) Liquidity Risk (continued) Due on demand Due within 6 months Total USD USD USD Cash 1,506,300 - 1,506,300 Financial assets at fair value through profit and loss 3,870,288 - 3,870,288 Total Financial Assets 5,376,588 - 5,376,588 - (13,182) (13,182) Sanlam US Dollar Liquidity Fund 2015 Accrued expenses Administration fees accrued - (1,414) (1,414) Redeemable participating shares (5,361,992) - (5,361,992) Total Financial Liabilities (5,361,992) (14,596) (5,376,588) Due on demand Due within 6 months Total USD USD USD Cash 1,950,819 - 1,950,819 Financial assets at fair value through profit and loss 4,825,469 - 4,825,469 - 3,769 3,769 6,776,288 3,769 6,780,057 Accrued expenses - (8,804) (8,804) Administration fees accrued - (2,418) (2,418) Sanlam US Dollar Liquidity Fund 2014 Other debtors Total Financial Assets Amounts payable on repurchase of shares - (48,640) (48,640) Redeemable participating shares (6,720,195) - (6,720,195) Total Financial Liabilities (6,720,195) (59,862) (6,780,057) 207 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 18 Risk arising from Financial Instruments (continued) (ii) Liquidity Risk (continued) Sanlam International Multi Asset I Fund* 2014 Due on demand Due within 6 months Total USD USD USD 71,485 - 71,485 - 29,391 29,391 Total Financial Assets 71,485 29,391 100,876 - - Bank overdraft (3,033) Financial assets at fair value through profit and loss Other debtors (3,033) Accrued expenses - (15,413) (15,413) Administration fees accrued - (3,982) (3,982) Redeemable participating shares (78,448) - (78,448) Total Financial Liabilities (81,481) (19,395) (100,876) Due on demand Due within 6 months Total USD USD USD 1,498,055 - 1,498,055 - 42,346 42,346 Other debtors 47,626,376 - 24,270 47,626,376 24,270 Total Financial Assets 49,124,431 66,616 49,191,047 Accrued expenses - (66,715) (66,715) Administration fees accrued - (7,129) (7,129) Redeemable participating shares (49,117,203) - (49,117,203) Total Financial Liabilities (49,117,203) (73,844) (49,191,047) Verso Global Flexible Fund* 2014 Cash Accrued income Financial assets at fair value through profit and loss * Funds closed in 2015. 208 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 18 Risk arising from Financial Instruments (continued) (ii) Liquidity Risk (continued) NFB Global Balanced Fund of Funds 2015 Cash Financial assets at fair value through profit and loss Other debtors Total Financial Assets Accrued expenses Administration fees accrued Redeemable participating shares Total Financial Liabilities NFB Global Balanced Fund of Funds 2014 Cash Financial assets at fair value through profit and loss Other debtors Total Financial Assets Accrued expenses Administration fees accrued Redeemable participating shares Total Financial Liabilities BIFM Emerging Market Equity Fund* 2014 Cash Accrued Income Financial assets at fair value through profit and loss Other debtors Total Financial Assets Accrued expenses Administration fees accrued Amounts payable on purchase of securities Redeemable participating shares Total Financial Liabilities Due on demand Due within 6 months Total USD USD USD 812,252 - 812,252 16,152,440 16,964,692 26,971 26,971 16,152,440 26,971 16,991,663 (16,966,280) (16,966,280) (21,808) (3,575) (25,383) (21,808) (3,575) (16,966,280) (16,991,663) Due on demand Due within 6 months Total USD USD USD 5,709,516 - 5,709,516 17,083,333 22,792,849 36,030 36,030 17,083,333 36,030 22,828,879 (22,809,476) (22,809,476) (15,070) (4,333) (19,403) (15,070) (4,333) (22,809,476) (22,828,879) Due on demand USD Due within 6 months USD Total USD 7,232,619 - 302,959 7,232,619 302,959 147,831,524 155,064,143 11,082 314,041 147,831,524 11,082 155,378,184 (155,112,150) (155,112,150) (247,510) (18,250) (274) (266,034) (247,510) (18,250) (274) (155,112,150) (155,378,184) - * Fund closed in 2015. 209 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 18 Risk arising from Financial Instruments (continued) (ii) Liquidity Risk (continued) BIFM World Equity Fund 2015 Cash Accrued Income Financial assets at fair value through profit and loss Other debtors Total Financial Assets Accrued expenses Administration fees accrued Amounts payable on repurchase of shares Redeemable participating shares Total Financial Liabilities BIFM World Equity Fund 2014 Due on demand USD Due within 6 months USD Total USD 1,943,377 - 213,445 1,943,377 213,445 264,462,426 266,405,803 23,509 236,954 264,462,426 23,509 266,642,757 (266,275,250) (266,275,250) (288,303) (45,904) (33,300) (367,507) (288,303) (45,904) (33,300) (266,275,250) (266,642,757) Due on demand USD Due within 6 months USD Total USD Cash Accrued Income Amounts receivable on sale of securities Financial assets at fair value through profit and loss Other debtors Total Financial Assets 13,480,765 - 553,693 1,030,180 13,480,765 553,693 1,030,180 745,745,141 759,225,906 10,783 1,594,656 745,745,141 10,783 760,820,562 Accrued expenses Administration fees accrued Amounts payable on repurchase of shares Redeemable participating shares Total Financial Liabilities (755,950,970) (755,950,970) (688,350) (81,242) (4,100,000) (4,869,592) (688,350) (81,242) (4,100,000) (755,950,970) (760,820,562) 210 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 18 Risk arising from Financial Instruments (continued) (ii) Liquidity Risk (continued) BIFM Global Fixed Income Fund 2015 Cash Financial assets at fair value through profit and loss Other debtors Total Financial Assets Accrued expenses Administration fees accrued Redeemable participating shares Total Financial Liabilities BIFM Global Fixed Income Fund 2014 Cash Financial assets at fair value through profit and loss Other debtors Total Financial Assets Accrued expenses Administration fees accrued Redeemable participating shares Total Financial Liabilities Sanlam BIFM South Africa Inflation Linked Bond Fund* 2014 Cash Financial assets at fair value through profit and loss Accrued income Other debtors Total Financial Assets Accrued expenses Administration fees accrued Redeemable participating shares Total Financial Liabilities Due on demand USD Due within 6 months USD Total USD 354,899 - 354,899 31,068,651 31,423,550 1,604 1,604 31,068,651 1,604 31,425,154 (31,350,613) (31,350,613) (67,636) (6,905) (74,541) (67,636) (6,905) (31,350,613) (31,425,154) Due on demand USD Due within 6 months USD Total USD 804,088 - 804,088 132,479,704 133,283,792 11,082 11,082 132,479,704 11,082 133,294,874 (133,092,434) (133,092,434) (187,513) (14,927) (202,440) (187,513) (14,927) (133,092,434) (133,294,874) Due on demand USD Due within 6 months USD Total USD 3,899,711 - 3,899,711 63,361,082 67,260,793 430,640 3,910 434,550 63,361,082 430,640 3,910 67,695,343 (67,630,059) (67,630,059) (49,833) (15,451) (65,284) (49,833) (15,451) (67,630,059) (67,695,343) * Fund closed in 2015. 211 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 18 Risk arising from Financial Instruments (continued) (ii) Liquidity Risk (continued) Due on demand USD Due within 6 months USD Total USD 196,868 - 196,868 25,127,387 25,324,255 - 25,127,387 25,324,255 Accrued expenses Administration fees accrued Redeemable participating shares Total Financial Liabilities (25,302,513) (25,302,513) (19,196) (2,546) (21,742) (19,196) (2,546) (25,302,513) (25,324,255) Mpile Global Equity Fund 2014 Due on demand USD Due within 6 months USD Total USD 79,641 - 79,641 12,614,102 12,693,743 2,259 2,259 12,614,102 2,259 12,696,002 (12,680,234) (12,680,234) (12,716) (3,052) (15,768) (12,716) (3,052) (12,680,234) (12,696,002) Due on demand USD Due within 6 months USD Total USD 6,510,846 - 15,500 6,510,846 15,500 10,827,897 17,338,743 19,767 35,267 10,827,897 19,767 17,374,010 (17,339,692) (17,339,692) (28,696) (3,443) (2,179) (34,318) (28,696) (3,443) (2,179) (17,339,692) (17,374,010) Mpile Global Equity Fund 2015 Cash Financial assets at fair value through profit and loss Total Financial Assets Cash Financial assets at fair value through profit and loss Other debtors Total Financial Assets Accrued expenses Administration fees accrued Redeemable participating shares Total Financial Liabilities Brackenham Global Balanced Fund 2015 Cash Accrued Income Financial assets at fair value through profit and loss Other debtors Total Financial Assets Accrued expenses Administration fees accrued AIFM fees accrued Redeemable participating shares Total Financial Liabilities 212 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 18 Risk arising from Financial Instruments (continued) (ii) Liquidity Risk (continued) APS Global Flexible Fund of Funds 2015 Cash Accrued Income Financial assets at fair value through profit and loss Other debtors Total Financial Assets Accrued expenses Administration fees accrued AIFM fees accrued Redeemable participating shares Total Financial Liabilities Counterpoint Global Equity Fund 2015 Cash Accrued Income Financial assets at fair value through profit and loss Other debtors Total Financial Assets Accrued expenses Administration fees accrued Redeemable participating shares Total Financial Liabilities Due on demand USD Due within 6 months USD Total USD 2,306,405 - 46 2,306,405 46 43,470,602 45,777,007 23,320 23,366 43,470,602 23,320 45,800,373 (45,742,720) (45,742,720) (47,742) (4,089) (5,822) (57,653) (47,742) (4,089) (5,822) (45,742,720) (45,800,373) Due on demand USD Due within 6 months USD Total USD 1,531,773 - 1,525 1,531,773 1,525 12,645,367 14,177,140 13,155 14,680 12,645,367 13,155 14,191,820 (14,157,589) (14,157,589) (32,675) (1,556) (34,231) (32,675) (1,556) (14,157,589) (14,191,820) (iii) Credit Risk Credit risk is the risk that a counterparty to a financial asset will fail on a commitment that it has entered into with the Company. A Fund is subject to the possibility of insolvency, bankruptcy or default of a counterparty with which the Fund, as appropriate, trades such instruments. This could result in substantial losses to the Fund. 213 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 18 Risk arising from Financial Instruments (continued) (iii) Credit Risk (continued) Each Fund will be exposed to credit risk on the counterparties with which it trades in relation to OTC derivative contracts. Such instruments are not afforded the same protections as may apply to participants trading futures or options on organised exchanges, such as the performance guarantee of an exchange clearing house. Investment Managers who enter into transactions involving financial derivatives are required to abide by the Prospectus and the AIF Rulebook and any breaches must be reported to the Manager. The various Investment Managers to the Funds have adopted procedures to reduce credit risk related to their dealings with counterparties in respect of Bonds and Collective Investment Schemes. Before transacting with any counterparty, the Investment Manager or its affiliates evaluate both creditworthiness and reputation by conducting a credit analysis of the party, their business and reputation. The reputational risk of approved counterparties is then monitored on an ongoing basis, including periodic reviews of financial statements and interim financial reports as needed. In order to reduce exposure to credit losses, Master Netting Agreements (MNA’s) are entered into with over-the-counter derivative counterparties, excluding those counterparties executing only spot foreign exchange contracts. While MNA’s do not result in an offset of reported assets and liabilities because transactions are generally settled on a gross basis, MNA’s do provide for the reduction of credit risk on favourable contracts to the extent of the value of unfavourable contracts in the event of default as all amounts with the counterparty are terminated and settled on a net basis. A Fund may enter into stock lending, reverse repurchase agreements and repurchase agreements provided that it is within the conditions and the limits laid down by the Central Bank or the purpose of generating income for the Company with an acceptable level of risk. Such arrangements are those where the Company or the Depositary delivers securities to a third party in return for which it is agreed those securities or securities of the same kind and amount should be redelivered to the Company or the Depositary at a later date. Margin accounts and amounts due from sale/purchase of securities are with the Company’s counterparties. The credit ratings of these counterparties are as follows: Prime broker/Depositary Brown Brothers Harriman Trustee Services (Ireland) Limited 2015 Rating 2014 Rating A+ A+ The Institutional Euro Liquidity Fund, the Institutional Sterling Liquidity Fund and the Institutional US Dollar Liquidity Fund must retain their credit rating of Aaa/MR+ Money Market fund rating from Moody’s, or AAAm from Standard and Poor’s. 214 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 18 Risk arising from Financial Instruments (continued) (iii) Credit Risk (continued) At 31 December 2015 and 31 December 2014, the following financial assets were exposed to counterparty credit risk: investments in debt securities, derivative financial assets and other receivables. The fair value of financial assets best reflects the maximum counterparty credit risk exposure at the reporting date. The maximum exposure to credit risk as at the reporting date can be analysed as follows in the tables below and overleaf for the years ended 31 December 2015 and 31 December 2014: Bonds 31 December 2015 Total 31 December 2015 Bonds 31 December 2014 Total 31 December 2014 USD USD USD USD Australia 183,524 183,524 90,754 90,754 Bermuda 345,132 345,132 438,580 438,580 Cayman Islands 602,706 602,706 627,662 627,662 Chile 269,624 269,624 211,530 211,530 Analytics International Flexible Fund - - 160,948 160,948 Columbia 170,788 170,788 - - Germany 329,410 329,410 210,514 210,514 - - 213,004 213,004 420,568 420,568 568,400 568,400 - - 150,879 150,879 Korea (South) 208,752 208,752 235,824 235,824 Luxembourg 152,958 152,958 - - China Great Britain Hong Kong India 78,088 78,088 - - Netherlands 296,754 296,754 549,126 549,126 New Zealand 147,340 147,340 159,842 159,842 Norway 262,880 262,880 293,555 293,555 Qatar 291,125 291,125 291,692 291,692 - - 151,871 151,871 Singapore 437,209 437,209 614,905 614,905 Supra-National 435,638 435,638 205,466 205,466 Mexico Russia - - 161,123 161,123 United Arab Emirates 192,424 192,424 201,328 201,328 United States 219,194 219,194 251,273 251,273 Virgin Islands Total 631,530 631,530 819,166 819,166 5,675,644 6,607,442 6,607,442 Sweden 5,675,644 215 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 18 Risk arising from Financial Instruments (continued) (iii) Credit Risk (continued) Collective Collective Investment Investment Schemes 31 December 2015 Total 31 December 2015 Schemes 31 December 2014 Total 31 December 2014 USD USD USD USD - - 32,809,331 32,809,331 Ireland 111,305,073 111,305,073 98,751,573 98,751,573 Total 111,305,073 111,305,073 131,560,904 131,560,904 Sanlam Global Balanced Fund Great Britain Collective Collective Investment Investment Schemes 31 December 2015 Total 31 December 2015 Schemes 31 December 2014 Total 31 December 2014 USD USD USD USD Ireland 50,764,385 50,764,385 127,711,141 127,711,141 Total 50,764,385 50,764,385 127,711,141 127,711,141 Sanlam Global Best Ideas Feeder Fund Collective Collective Investment Sanlam Global Equity Fund Australia Ireland United States Total Investment Schemes Derivative Total Schemes Derivative Total 31 December 2015 31 December 2015 31 December 2015 31 December 2014 31 December 2014 31 December 2014 USD USD USD USD USD USD 30,810,938 - 30,810,938 29,362,026 - 29,362,026 1,124,215,620 - 1,124,215,620 1,299,803,199 - 1,299,803,199 - 2,335,772 2,335,772 - 2,248,217 2,248,217 1,155,026,558 2,335,772 1,157,362,330 1,329,165,225 2,248,217 1,331,413,442 216 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 18 Risk arising from Financial Instruments (continued) (iii) Credit Risk (continued) Collective Collective Investment Investment Schemes Total Schemes 31 December 2015 31 December 2015 31 December 2014 EUR EUR EUR Total 31 December 2014 EUR Ireland 3,344,023 3,344,023 3,728,617 3,728,617 Total 3,344,023 3,344,023 3,728,617 3,728,617 Sanlam Euro Liquidity Fund Collective Collective Investment Investment Schemes 31 December 2015 GBP Total 31 December 2015 GBP Schemes 31 December 2014 GBP Total 31 December 2014 GBP Ireland 1,073,066 1,073,066 1,193,202 1,193,202 Total 1,073,066 1,073,066 1,193,202 1,193,202 Sanlam Sterling Liquidity Fund Collective Collective Investment Investment Schemes 31 December 2015 Sanlam Global Liquidity Fund USD Total 31 December 2015 USD Schemes 31 December 2014 USD Total 31 December 2014 USD Ireland 9,114,484 9,114,484 10,514,485 10,514,485 Total 9,114,484 9,114,484 10,514,485 10,514,485 Collective Collective Investment Investment Schemes 31 December 2015 USD Total 31 December 2015 USD Schemes 31 December 2014 USD Total 31 December 2014 USD Ireland 3,870,288 3,870,288 4,825,469 4,825,469 Total 3,870,288 3,870,288 4,825,469 4,825,469 Sanlam US Dollar Liquidity Fund 217 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 18 Risk arising from Financial Instruments (continued) (iii) Credit Risk (continued) Collective Collective Investment Investment Schemes 31 December 2015 Total 31 December 2015 Sanlam International Multi Asset I Fund* Schemes 31 December 2014 Total 31 December 2014 USD USD USD USD Ireland - - 9,822 9,822 United States - - 61,663 61,663 Total - - 71,485 71,485 *Fund closed in 2015 Collective Exchange Collective Exchange Investment Traded Investment Traded Schemes Funds Schemes Funds Total Total 31 December 31 December 31 December 31 December 31 December 31 December 2015 2015 2015 2014 2014 2014 NFB Global Balanced Fund of Funds Ireland Germany Total USD USD USD USD USD USD 10,884,341 13,733,970 2,728,268 10,132,991 12,861,259 2,849,629 - 3,291,181 3,291,181 - 3,349,363 3,349,363 2,728,268 13,424,172 16,152,440 2,849,629 14,233,704 17,083,333 Collective Collective Investment Investment Schemes Total Schemes Total 31 December 2015 31 December 2015 31 December 2014 31 December 2014 USD USD USD USD United States - - 240,794 240,794 Total - - 240,794 240,794 Sanlam BIFM Emerging Markets Equity Fund* *Fund closed in 2015 218 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 18 Risk arising from Financial Instruments (continued) (iii) Credit Risk (continued) Collective Collective Investment Investment Schemes Total Schemes Total 31 December 2015 USD 31 December 2015 USD 31 December 2014 USD 31 December 2014 USD Luxembourg 15,434,368 15,434,368 40,012,840 40,012,840 Ireland 48,978,925 48,978,925 145,773,321 145,773,321 Total 64,413,293 64,413,293 185,786,161 185,786,161 Sanlam BIFM World Equity Fund Collective Collective Investment Investment Schemes Total Schemes Total 31 December 2015 31 December 2015 31 December 2014 31 December 2014 USD USD USD USD 132,479,704 Sanlam BIFM Global Fixed Income Fund Ireland 31,068,651 31,068,651 132,479,704 Total 31,068,651 31,068,651 132,479,704 132,479,704 Bonds Total Bonds Total 31 December 2015 31 December 2015 31 December 2014 31 December 2014 Sanlam BIFM South Africa Inflation Linked Bond Fund* USD USD USD USD South Africa - - 63,361,082 63,361,082 Total - - 63,361,082 63,361,082 *Fund closed in 2015 Mpile Global Equity Fund Luxembourg Ireland Total Collective Collective Investment Investment Schemes Total Schemes Total 31 December 2015 USD 31 December 2015 USD 31 December 2014 USD 31 December 2014 USD 18,698,082 18,698,082 12,147,230 12,147,230 6,429,305 6,429,305 466,873 466,873 25,127,387 25,127,387 12,614,103 12,614,103 219 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 18 Risk arising from Financial Instruments (continued) (iii) Credit Risk (continued) Collective Exchange Investment Traded Schemes Funds Total 31 December 2015 USD 31 December 2015 USD 31 December 2015 USD Bermuda 506,429 - 506,429 Luxembourg 426,884 - 426,884 - 735,052 735,052 933,313 735,052 1,668,365 Brackenham Global Balanced Fund United States Total Collective Investment Schemes Total 31 December 2015 USD 31 December 2015 USD Luxembourg 17,076,669 17,076,669 Ireland 26,393,933 26,393,933 Total 43,470,602 43,470,602 APS Global Flexible Fund of Funds Percentages of debt by rating agency category The Company mitigates credit risk arising on debt instruments by investing primarily in credit instruments that have received an investment grade credit rating from recognised ratings agencies such as S&P, Moody’s and Fitch. At 2015, 1 fund (2014: 2) has exposure to debt instruments. Details of the credit ratings of these debt instruments are disclosed in the tables below and overleaf. The Funds that have exposure to debt instruments are Analytics International Flexible Fund and Sanlam BIFM South Africa Inflation Linked Bond Fund. Analytics International Flexible Fund A AA AAA BB BBB Not rated Total Debt 2015 2014 14.61% 25.33% 28.27% 23.19% 8.60% 100.00% 23.30% 25.95% 17.39% 0.74% 29.95% 2.67% 100.00% 220 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 18 Risk arising from Financial Instruments (continued) (iii) Credit Risk (continued) Percentages of debt by rating agency category (continued) Sanlam BIFM South Africa Inflation Linked Bond Fund* 2015 2014 - 98.54% 1.46% 100.00% BBB Not rated Total Debt - *Fund closed in 2015 (iv) Additional Risks (a) Concentration Risk The Funds invest in a limited number of investments and investment themes. A consequence of a limited number of investments is that performance may be more favourably or unfavourably affected by the performance of an individual investment. (b) Operational Risk Operational risk is the potential for loss caused by a deficiency in information, communications, transaction processing and settlement and accounting systems. The Funds’ service providers maintain controls and procedures for the purpose of managing operational risk. (c) Legal, Tax and Regulatory Risks Legal, tax and regulatory changes could occur during the duration of a Fund which may adversely affect the Fund. The Manager and their appointed Investment Advisors monitor the international regulatory environment closely for any legislation or regulatory changes that may impact the Funds. Appropriate information on such matters is considered by senior management and referred to the Board of Directors, where required. (d) Non-Developed/Emerging Market Risk A Fund may invest a portion of its capital in securities and companies based in non-developed or emerging markets or issued by governments of such countries. Investing in the securities of such companies and countries involves certain considerations not usually associated with investing in securities of developed market companies or countries, including, without limitation, less liquidity, greater price and foreign currency volatility, and greater legal, tax and regulatory risks. e) Small Capitalisation Companies Risk A Fund may invest a portion of its capital in securities of companies with smaller capitalisation. Smaller capitalisation companies are generally not as well known to the investing public and have less investor following than larger capitalisation companies. Investing in the securities of such companies may involve certain considerations, including, without limitation, less liquidity, greater price volatility, and risks associated with limited operating histories and/or the availability of information pertaining to the Fund and its operations. 221 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 19 Net asset value per share Analytics International Flexible Fund 31 December 2015 31 December 2014 31 December 2013 USD45,705,851 4,347,495 USD50,385,901 4,774,678 USD44,999,819 4,144,825 USD10.5131 - USD10.5527 - USD10.8569 - USD10.5131 USD10.5527 USD10.8569 31 December 2015 31 December 2014 31 December 2013 USD6,928,565 5,200,533 USD8,553,719 6,195,321 USD6,359,606 4,601,680 USD1.3323 - USD1.3807 - USD1.3820 - USD1.3323 USD1.3807 USD1.3820 USD3,476,660 2,144,853 USD2,202,380 1,319,654 USD217,653 131,145 USD1.6209 - USD1.6689 - USD1.6596 - USD1.6209 USD1.6689 USD1.6596 Share Class A Net Asset Value Number of Shares in Issue Net asset value per share for financial statement purposes Add: Valuation adjustment Net asset value per share for shareholder dealing Sanlam Global Balanced Fund Share Class A Net Asset Value Number of Shares in Issue Net asset value per share for financial statement purposes Add: Valuation adjustment Net asset value per share for shareholder dealing Share Class B Net Asset Value Number of Shares in Issue Net asset value per share for financial statement purposes Add: Valuation adjustment Net asset value per share for shareholder dealing Share Class C Net Asset Value Number of Shares in Issue Net asset value per share for financial statement purposes Add: Valuation adjustment Net asset value per share for shareholder dealing USD102,111,301 62,762,191 USD121,638,793 USD125,212,951 72,679,095 75,304,263 USD1.6270 - USD1.6736 - USD1.6628 - USD1.6270 USD1.6736 USD1.6628 222 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 19 Net asset value per share (continued) Sanlam Global Best Ideas Feeder Fund Share Class A Net Asset Value Number of Shares in Issue 31 December 2015 31 December 2014 31 December 2013 USD1,425,596 839,686 USD2,276,960 1,253,226 USD5,680,367 3,178,305 USD1.6978 - USD1.8169 - USD1.7872 - USD1.6978 USD1.8169 USD1.7872 USD97,992 54,418 USD105,644 55,181 USD3,706,848 1,981,346 USD1.8007 - USD1.9145 - USD1.8709 - USD1.8007 USD1.9145 USD1.8709 Net asset value per share for financial statement purposes Add: Valuation adjustment Net asset value per share for shareholder dealing Share Class B Net Asset Value Number of Shares in Issue Net asset value per share for financial statement purposes Add: Valuation adjustment Net asset value per share for shareholder dealing Share Class C Net Asset Value Number of Shares in Issue USD49,201,012 26,871,646 Net asset value per share for financial statement purposes Add: Valuation adjustment Net asset value per share for shareholder dealing 223 USD125,284,909 USD141,454,138 64,421,080 74,499,375 USD1.8310 - USD1.9448 - USD1.8987 - USD1.8310 USD1.9448 USD1.8987 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 19 Net asset value per share (continued) Sanlam Global Equity Fund Share Class A Net Asset Value Number of Shares in Issue Net asset value per share for financial statement purposes Add: Valuation adjustment Net asset value per share for shareholder dealing Share Class B Net Asset Value Number of Shares in Issue Net asset value per share for financial statement purposes Add: Valuation adjustment Net asset value per share for shareholder dealing Share Class C Net Asset Value Number of Shares in Issue Net asset value per share for financial statement purposes Add: Valuation adjustment Net asset value per share for shareholder dealing 31 December 2015 31 December 2014 31 December 2013 USD1,004,880 858,086 USD3,532,562 2,993,637 USD2,037,527 1,755,322 USD1.1711 - USD1.1800 - USD1.1608 - USD1.1711 USD1.1800 USD1.1608 USD4,622,160 3,571,734 USD5,406,730 4,173,320 USD5,399,016 4,264,148 USD1.2941 - USD1.2955 - USD1.2661 - USD1.2941 USD1.2955 USD1.2661 USD1,156,173,872 879,163,205 USD1,349,427,964 1,025,991,083 USD1,491,065,741 1,161,165,768 USD1.3151 - USD1.3152 - USD1.2841 - USD1.3151 USD1.3152 USD1.2841 224 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 19 Net asset value per share (continued) Sanlam Euro Liquidity Fund Share Class A Net Asset Value Number of Shares in Issue Net asset value per share for financial statement purposes Add: Valuation adjustment Net asset value per share for shareholder dealing Share Class B Net Asset Value Number of Shares in Issue Net asset value per share for financial statement purposes Add: Valuation adjustment Net asset value per share for shareholder dealing Share Class C Net Asset Value Number of Shares in Issue Net asset value per share for financial statement purposes Add: Valuation adjustment Net asset value per share for shareholder dealing 31 December 2015 31 December 2014 31 December 2013 EUR74 73 EUR74 73 EUR74 73 EUR1.0167 - EUR1.0126 - EUR1.0114 - EUR1.0167 EUR1.0126 EUR1.0114 EUR74 72 EUR74 72 EUR74 72 EUR1.0270 - EUR1.0228 - EUR1.0215 - EUR1.0270 EUR1.0228 EUR1.0215 EUR4,627,123 4,621,000 EUR5,186,293 5,144,058 EUR5,725,288 5,649,070 EUR1.0013 - EUR1.0082 - EUR1.0135 - EUR1.0013 EUR1.0082 EUR1.0135 225 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 19 Net asset value per share (continued) Sanlam Sterling Liquidity Fund 31 December 2015 31 December 2014 31 December 2013 GBP57 56 GBP56 56 GBP56 56 GBP1.008 - GBP0.9993 - GBP0.9996 - GBP1.008 GBP0.9993 GBP0.9996 GBP57 56 GBP57 56 GBP57 56 GBP1.0172 - GBP1.0083 - GBP1.0087 - GBP1.0172 GBP1.0083 GBP1.0087 GBP1,447,159 1,460,769 GBP1,621,531 1,628,789 GBP1,801,349 1,794,487 GBP0.9907 - GBP0.9955 - GBP1.0038 - GBP0.9907 GBP0.9955 GBP1.0038 Share Class A Net Asset Value Number of Shares in Issue Net asset value per share for financial statement purposes Add: Valuation adjustment Net asset value per share for shareholder dealing Share Class B Net Asset Value Number of Shares in Issue Net asset value per share for financial statement purposes Add: Valuation adjustment Net asset value per share for shareholder dealing Share Class C Net Asset Value Number of Shares in Issue Net asset value per share for financial statement purposes Add: Valuation adjustment Net asset value per share for shareholder dealing 226 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 19 Net asset value per share (continued) Sanlam Global Liquidity Fund Share Class A Net Asset Value Number of Shares in Issue Net asset value per share for financial statement purposes Add: Valuation adjustment Net asset value per share for shareholder dealing Share Class B Net Asset Value Number of Shares in Issue Net asset value per share for financial statement purposes Add: Valuation adjustment Net asset value per share for shareholder dealing Share Class C Net Asset Value Number of Shares in Issue Net asset value per share for financial statement purposes Add: Valuation adjustment Net asset value per share for shareholder dealing 31 December 2015 31 December 2014 31 December 2013 USD9,426,869 8,694,873 USD9,810,417 8,563,074 USD12,005,023 9,822,578 USD1.0842 - USD1.1457 - USD1.2222 - USD1.0842 USD1.1457 USD1.2222 USD104 100 USD968,859 881,638 USD20,062,924 17,056,514 USD1.0429 - USD1.0989 - USD1.1763 - USD1.0429 USD1.0989 USD1.1763 USD110 100 USD116 100 USD123 100 USD1.1040 - USD1.1586 - USD1.2290 - USD1.1040 USD1.1586 USD1.2290 227 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 19 Net asset value per share (continued) Sanlam US Dollar Liquidity Fund 31 December 2015 31 December 2014 31 December 2013 USD99 100 USD531,110 536,538 USD26,636 26,918 USD0.9931 - USD0.9899 - USD0.9895 - USD0.9931 USD0.9899 USD0.9895 USD100 100 USD99 100 USD99 100 USD1.0016 - USD0.9936 - USD0.9917 - USD1.0016 USD0.9936 USD0.9917 USD5,361,793 5,431,232 USD6,188,985 6,246,955 USD7,342,065 7,367,985 USD0.9872 - USD0.9907 - USD0.9965 - USD0.9872 USD0.9907 USD0.9965 Share Class A Net Asset Value Number of Shares in Issue Net asset value per share for financial statement purposes Add: Valuation adjustment Net asset value per share for shareholder dealing Share Class B Net Asset Value Number of Shares in Issue Net asset value per share for financial statement purposes Add: Valuation adjustment Net asset value per share for shareholder dealing Share Class C Net Asset Value Number of Shares in Issue Net asset value per share for financial statement purposes Add: Valuation adjustment Net asset value per share for shareholder dealing 228 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 19 Net asset value per share (continued) Sanlam International Multi-Asset I Fund Share Class A (USD) Net Asset Value Number of Shares in Issue Net asset value per share for financial statement purposes Add: Valuation adjustment Net asset value per share for shareholder dealing Share Class A (EUR) Net Asset Value Number of Shares in Issue Net asset value per share for financial statement purposes Add: Valuation adjustment Net asset value per share for shareholder dealing Share Class A (GBP) Net Asset Value Number of Shares in Issue Net asset value per share for financial statement purposes Add: Valuation adjustment Net asset value per share for shareholder dealing Share class B (USD) Net Asset Value Number of Shares in Issue Net asset value per share for financial statement purposes Add: Valuation adjustment Net asset value per share for shareholder dealing . 229 31 December 2015 31 December 2014 31 December 2013 - USD78,182 74,059 USD174,683 172,633 - USD1.0557 - USD1.0119 - - USD1.0557 USD1.0119 - - EUR100 100 - - EUR0.999 - - - EUR0.999 - GBP105 101 GBP164,282 165,516 - GBP1.0441 - GBP0.9925 - - GBP1.0441 GBP0.9925 - USD101 100 USD95 100 - USD1.0082 - USD0.9526 - - USD1.0082 USD0.9526 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 19 Net asset value per share (continued) Sanlam International Multi-Asset I Fund (continued) 31 December 2015 Share Class B (EUR) Net Asset Value Number of Shares in Issue Net asset value per share for financial statement purposes Add: Valuation adjustment Net asset value per share for shareholder dealing Share Class B (GBP) Net Asset Value Number of Shares in Issue Net asset value per share for financial statement purposes Add: Valuation adjustment Net asset value per share for shareholder dealing 230 31 December 2014 31 December 2013 - - EUR102 100 - - EUR1.0246 - - - EUR1.0246 - - GBP37,233 36,086 - - GBP1.0318 - - - GBP1.0318 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 19 Net asset value per share (continued) Verso Global Flexible Fund 31 December 2015 31 December 2014 31 December 2013 Net Asset Value - USD173,737 USD159,998 Number of Shares in Issue - 16,554 14,713 Net asset value per share for financial statement purposes - USD10.4954 USD10.8749 - - - - USD10.4954 USD10.8749 Net Asset Value - USD48,943,465 USD57,169,717 Number of Shares in Issue - 4,219,276 4,784,967 Net asset value per share for financial statement purposes - USD11.6000 USD11.9478 - - - - USD11.6000 USD11.9478 Share Class A Add: Valuation adjustment Net asset value per share for shareholder dealing Share Class I Add: Valuation adjustment Net asset value per share for shareholder dealing 231 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 19 Net asset value per share (continued) NFB Global Balanced Fund of Funds Share Class A Net Asset Value Number of Shares in Issue Net asset value per share for financial statement purposes Add: Valuation adjustment Net asset value per share for shareholder dealing Share Class B Net Asset Value Number of Shares in Issue Net asset value per share for financial statement purposes Add: Valuation adjustment Net asset value per share for shareholder dealing 31 December 2015 31 December 2014 31 December 2013 USD10,976,529 1,005,943 USD558,970 49,563 USD106 10 USD10.9117 - USD11.2780 - USD10.5660 - USD10.9117 USD11.2780 USD10.5660 USD5,989,653 547,984 USD17,504,694 1,557,176 USD31,393,117 2,976,039 USD10.9303 - USD11.2413 - USD10.5486 - USD10.9303 USD11.2413 USD10.5486 USD97 10 USD4,745,814 477,013 - USD9.71 - USD9.9490 - - USD9.71 USD9.9490 - Share Class C Net Asset Value Number of Shares in Issue Net asset value per share for financial statement purposes Add: Valuation adjustment Net asset value per share for shareholder dealing 232 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 19 Net asset value per share (continued) Sanlam BIFM Emerging Markets Equity Fund 31 December 2015 Share Class A Net Asset Value Number of Shares in Issue Net asset value per share for financial statement purposes Add: Valuation adjustment Net asset value per share for shareholder dealing 31 December 2014 31 December 2013 USD158,851 175,930 USD1,890,051 1,951,870 - USD0.9029 - USD0.9683 - - USD0.9029 USD0.9683 - USD154,953,300 170,846,268 USD221,716,03 6 228,775,652 - USD0.9070 USD0.9691 - USD0.9070 USD0.9691 Share Class B Net Asset Value Number of Shares in Issue Net asset value per share for financial statement purposes Add: Valuation adjustment Net asset value per share for shareholder dealing Sanlam BIFM World Equity Fund Share Class A Net Asset Value Number of Shares in Issue Net asset value per share for financial statement purposes Add: Valuation adjustment Net asset value per share for shareholder dealing Share Class B Net Asset Value Number of Shares in Issue Net asset value per share for financial statement purposes Add: Valuation adjustment Net asset value per share for shareholder dealing 31 December 2015 31 December 2014 31 December 2013 USD264,494,583 269,869,122 USD323,821,642 318,618,005 USD335,375,969 324,465,099 USD0.9801 - USD1.0163 - USD1.0336 - USD0.9801 USD1.0163 USD1.0336 USD1,780,667 1,799,948 USD432,129,328 423,140,314 USD372,525,701 360,105,969 USD0.9893 - USD1.0212 - USD1.0345 - USD0.9893 USD1.0212 USD1.0345 233 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 19 Net asset value per share (continued) Sanlam BIFM Global Fixed Income Fund Share Class A Net Asset Value Number of Shares in Issue Net asset value per share for financial statement purposes Add: Valuation adjustment Net asset value per share for shareholder dealing Share Class B Net Asset Value Number of Shares in Issue Net asset value per share for financial statement purposes Add: Valuation adjustment Net asset value per share for shareholder dealing 31 December 2015 31 December 2014 31 December 2013 USD29,894,562 31,999,371 USD121,440,230 123,989,813 USD153,749,808 155,490,947 USD0.9342 - USD0.9794 - USD0.9888 - USD0.9342 USD0.9794 USD0.9888 USD1,455,956 1,533,045 USD624,528 630,438 USD99 100 USD0.9497 - USD0.9906 - USD0.9915 - USD0.9497 USD0.9906 USD0.9915 USD95 100 USD11,027,677 11,196,557 - USD0.9498 - USD0.9849 - - USD0.9498 USD0.9849 - Share Class C Net Asset Value Number of Shares in Issue Net asset value per share for financial statement purposes Add: Valuation adjustment Net asset value per share for shareholder dealing 234 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 19 Net asset value per share (continued) Sanlam BIFM South Africa Inflation Linked Bond Fund 31 December 2015 Share Class B (ZAR) Net Asset Value Number of Shares in Issue Net asset value per share for financial statement purposes Add: Valuation adjustment Net asset value per share for shareholder dealing - 31 December 2014 31 December 2013 ZAR780,870,171 76,514,991 - - ZAR10.2057 - - ZAR10.2057 - 31 December 2015 31 December 2014 31 December 2013 USD96 100 USD95 100 - - USD0.9626 - USD0.9543 - - USD0.9626 USD0.9543 - USD96 100 USD95 100 - - USD0.9626 - USD0.9543 - - USD0.9626 USD0.9543 - USD25,302,321 26,506,516 USD12,680,043 13,336,570 - - USD0.9546 - USD0.9508 - - USD0.9546 USD0.9508 - Mpile Global Equity Fund Share Class A Net Asset Value Number of Shares in Issue Net asset value per share for financial statement purposes Add: Valuation adjustment Net asset value per share for shareholder dealing Share Class B Net Asset Value Number of Shares in Issue Net asset value per share for financial statement purposes Add: Valuation adjustment Net asset value per share for shareholder dealing Share Class C Net Asset Value Number of Shares in Issue Net asset value per share for financial statement purposes Add: Valuation adjustment Net asset value per share for shareholder dealing 235 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 19 Net asset value per share (continued) Brackenham Global Balanced Fund Share Class A Net Asset Value Number of Shares in Issue Net asset value per share for financial statement purposes Add: Valuation adjustment Net asset value per share for shareholder dealing Share Class B Net Asset Value Number of Shares in Issue Net asset value per share for financial statement purposes Add: Valuation adjustment Net asset value per share for shareholder dealing 31 December 2015 31 December 2014 31 December 2013 USD9,492,881 9,892,498 - - USD0.9596 - - - USD0.9596 - - USD7,846,811 8,076,652 - - USD0.9715 - - - USD0.9715 - - 31 December 2015 31 December 2014 31 December 2013 USD95 100 - - USD0.9543 - - - USD0.9543 - - USD45,742,625 48,130,955 - - USD0.9504 - - - USD0.9504 - - APS Global Flexible Fund of Funds Share Class A Net Asset Value Number of Shares in Issue Net asset value per share for financial statement purposes Add: Valuation adjustment Net asset value per share for shareholder dealing Share Class B Net Asset Value Number of Shares in Issue Net asset value per share for financial statement purposes Add: Valuation adjustment Net asset value per share for shareholder dealing 236 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 19 Net asset value per share (continued) Counterpoint Global Equity Fund Share Class B Net Asset Value Number of Shares in Issue Net asset value per share for financial statement purposes Add: Valuation adjustment Net asset value per share for shareholder dealing 20 31 December 2015 31 December 2014 31 December 2013 USD14,157,589 14,148,062 - - USD1.007 - - - USD1.007 - - Cross liability of funds The Directors are not aware of any such existing or contingent liability at 31 December 2015 or 31 December 2014. The Company’s amended Articles provide for segregated liability between the various Funds. 21 Contingent liabilities There were no contingent liabilities as at 31 December 2015 or 31 December 2014. 22 Significant events during the year During the year the following Funds launched*/closed: Fund Name Sanlam International Multi-Asset I Fund Verso Global Flexible Fund Sanlam BIFM South Africa Inflation Linked Bond Fund Sanlam BIFM Emerging Markets Fund Brackenham Global Balanced Fund APS Global Flexible Fund of Funds Counterpoint Global Equity Fund Status Closed 02 February 2015 Closed 16 March 2015 Closed 02 March 2015 Closed 27 May 2015 Active – launched 19 March 2015 Active – launched 07 May 2015 Active – launched 02 June 2015 The following Funds issued new offering supplements during the year: Date of latest revised offering supplement 31 March 2015 28 April 2015 09 July 2015 Fund Name NFB Global Balanced Fund of Funds Sanlam Global Equity Fund Analytics International Flexible Fund *Odyssey Global Equity Fund was approved by the Central Bank of Ireland as an authorised designated sub-fund of the Company on 30 October 2015. As of the date of approval of these financial statements, Odyssey Global Equity Fund has not yet been launched. 237 SANLAM GLOBAL FUNDS PLC NOTES TO AND FORMING PART OF THE AUDITED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2015 22 Significant events during the year (continued) Effective 28 May 2015, Haydn Franckeiss was appointed as a non-executive Director of the Company. Effective 07 October 2015, Thomas Murray was appointed to the Board of Directors of SAMI. Following the appointment, Thomas Murray ceased to be considered an independent Director in the context of the Corporate Governance Code but continues to be considered an independent Director by the Irish Stock Exchange. Effective 14 August 2015, Richard Aslett was appointed as a non-executive Director of the Company. Richard Aslett is the Chief Executive Officer of SAMI. Effective 31 December 2015, Peter Murray resigned from his position as a non-executive Director of the Company. Peter Murray also resigned from his position as a non-executive Director of SAMI. There were no other significant events during the year. 23 Significant events since the end of the year Up to the date of approval of the financial statements, there were no other material subsequent events affecting the Company which necessitate disclosure or revision of the figures included in the financial statements. 24 Auditors fee Auditor remuneration for the period was EUR 92,140 excluding VAT (2014: EUR 87,948 excluding VAT). Auditor remuneration related solely to the audit of the financial statements for the year ended 31 December 2015. There were no other assurance services, tax advisory services or other non-audit services provided by the auditor of the Company. 25 Off balance sheet arrangements The Company was not party to off balance sheet arrangements for the twelve months from 1 January 2015 to 31 December 2015 or 1 January 2014 to 31 December 2014. 26 Approval of audited financial statements The financial statements were approved by the Board of Directors on 21 April 2016. 238 SANLAM GLOBAL FUNDS PLC SAMI REMUNERATION POLICY (UNAUDITED) Purpose and objective Sanlam Asset Management Ireland Limited (“SAMI”) has implemented a remuneration policy (the “SAMI Remuneration Policy”) in line with the provisions of Article 13 of the Directive 2011/61/EC on Alternative Investment Fund Managers (the “AIFMD”), in particular Annex II, and of the European Securities and Markets Authority’s (“ESMA’s”) “Guidelines on sound remuneration policies under the AIFMD” (the “ESMA Guidelines”). The purpose of the SAMI Remuneration Policy is to provide clear direction and policy regarding SAMI’s remuneration policies and practices consistent with the principles set out in the European Union (Alternative Investment Fund Managers) Regulations 2013 (the “AIFM Regulations”). The SAMI Remuneration Policy also complies with the overarching remuneration philosophy of the Sanlam Investments Cluster (the “Cluster Policy”) with local adjustments to adhere to regulations applicable in Ireland. The objective of the SAMI Remuneration Policy and the Cluster Policy is to support SAMI’s and the Sanlam Investments Cluster’s business objectives, and the Sanlam Group corporate values, including prudent risk management, by attracting, retaining and motivating the key talent to achieve these outcomes. The SAMI Remuneration Policy has been designed to be consistent with and promote sound and effective risk management, not encourage excessive or inappropriate risk-taking, eliminate conflicts of interest and be cognisant of SAMI’s Treating Customers Fairly policy. Design In the design of its Remuneration Policy, SAMI has also taken into account the nature, scale and complexity of its business. In determining the range of activities undertaken, SAMI has given due consideration to the number of funds under management, the type of investments, the investment strategies, the investment location, the distribution models and the investor base. Due consideration has also been given to the resources available to SAMI and the resources and expertise of the various third parties engaged to support SAMI and carry out certain functions on its behalf. The SAMI Remuneration Policy applies to those categories of staff, including senior management, risk takers, control functions and any employee receiving total remuneration that takes them into the same remuneration bracket as senior management and risk takers, whose professional activities have a material impact on the risk profiles of SAMI or of the Alternative Investment Funds (“AIFs”), including the Sanlam Global Funds Plc (the “Company”), to which SAMI has been appointed as AIFM. The disclosures in this report are made in respect of the SAMI Remuneration Policy and how it applies to the Company and to the persons to whom portfolio and risk management activities have been delegated by SAMI. SAMI has the facility to appoint delegates to carry out discretionary portfolio management activity on its behalf in accordance with its outsourcing policy (the “Investment Managers”). Disclosures are made in accordance with the AIFMD, the European Commission Delegated Regulation supplementing the AIFMD and the ESMA Guidelines. Risk management SAMI recognises the important role played by sound risk management in protecting stakeholders. Moreover, SAMI acknowledges that inappropriate remuneration structures could in certain circumstances result in situations whereby individuals assume more risk on the relevant institution’s behalf than they would have done had they not been remunerated that way. The SAMI Remuneration Policy aligns the risk taking behaviour of employees and officers with SAMI’s risk appetite and the risk appetite in respect of each of the Funds. 239 SANLAM GLOBAL FUNDS PLC SAMI REMUNERATION POLICY (UNAUDITED) (CONTINUED) Identified Staff The SAMI Remuneration Policy applies to “Identified Staff”. Under the ESMA Guidelines, Identified Staff are defined as follows: Categories of staff, including senior management, risk takers, Control Functions and any employee receiving total remuneration that takes them into the same remuneration bracket as senior management and risk takers, whose professional activities have a material impact on the AIFM’s risk profile or the risk profiles of the AIF that it manages and categories of staff of the entity/entities to which portfolio management or risk management activities have been delegated by the AIFM, whose professional activities have a material impact on the risk profiles of the AIF that the AIFM manages. Any other employee/persons whose total remuneration is within the same remuneration bracket as senior managers (e.g. other high earning staff) and who can exert a material impact on the risk profile of the AIFM or the AIFs under management. The list of Identified Staff maintained by SAMI is subject to regular review (at least annually by the Board of Directors of SAMI) and is formally reviewed in the event of, but not limited to: Organisational changes; New business initiatives; Changes in role responsibilities; and Revised regulatory direction. Fixed and variable remuneration In deciding the mix between fixed and variable remuneration, SAMI is mindful of the need to ensure that the basic pay of staff is adequate to remunerate the professional services rendered taking into account, inter alia, the level of education, the degree of seniority and the level of expertise and skills required. SAMI recognises that variable remuneration is an important tool to incentivise staff. It also gives SAMI or the Investment Managers (and therefore the Company) flexibility such that, in years in which SAMI or the Investment Managers perform poorly, variable remuneration may be reduced or eliminated. In some circumstances, however, variable remuneration, if inappropriately structured, can lead to excessive risk taking as employees may be incentivised to keep taking risk to maintain or increase their variable remuneration. Accordingly, there is a clear and well defined pay-for-performance philosophy that seeks to attract, retain and motivate employees who are accountable and whose behaviours are aligned with the SAMI’s strategic goals and Treating Customers Fairly principles. As an AIFM and UCITS Management Company, SAMI’s revenues are based on a percentage of the NAVs of the Funds, including that of the Company. As a result, its revenues may be more volatile than other types of businesses. SAMI may also be paid expenses and other revenue from the Funds to which it provides services. Variable remuneration allows SAMI to reduce the risk that its capital base is eroded due to the need to pay fixed remuneration costs should trading revenues decline. Owing to the nature of the contracts SAMI enters into with its Directors and their Designated Persons, the ratio of variable pay to fixed pay is considered appropriate but is kept under review. Decision-making process The level of variable remuneration within SAMI is dependent on the achievement of individual goals, overall individual performance, the financial results of SAMI, the Sanlam Investments Cluster, the Sanlam Group and the achievement of Treating Customers Fairly outcomes. Individual goals, consistent with shareholder goals, are set at the beginning of the year and performance is measured through Sanlam’s performance management process. Goals set shall be financial and non-financial in nature. Mistakes resulting in unforced and avoidable losses may be penalised. 240 SANLAM GLOBAL FUNDS PLC SAMI REMUNERATION POLICY (UNAUDITED) (CONTINUED) Decision-making process (continued) Variable remuneration paid is based on the previous year’s financial results and individual performance outcomes as determined as a result of a formal review of performance carried out in January following the end of the performance year. This timing allows full year financial results to be considered along with other non-financial goals and objectives. Individuals are not involved in setting their own remuneration. Pro-rata payments apply to new appointments based on time in the job over the financial year. Ratings are used to differentiate and reward individual performance – but do not pre-determine compensation outcomes. Compensation decisions remain discretionary and are made as part of the year end compensation process. Compensation practices do not provide undue incentives for short term planning or short term financial rewards, do not reward unreasonable risk. Short and long-term strategic objectives are measured and rewarded to mitigate unreasonable or excessive risk-taking and provide balance. Oversight of the Investment Managers’ Remuneration Framework As AIFM, SAMI ensures that the persons to whom portfolio and/or risk management activities have been delegated are subject to remuneration arrangements that are equally as effective as those provisions of the AIFMD. As the discretionary portfolio management activity has been delegated to the Investment Managers, SAMI shall ensure those staff of Investment Managers who engage in discretionary portfolio management activity are subject to a remuneration framework consistent with the provisions of AIFMD. SAMI will assess on a regular basis the appropriateness of the Investment Managers’ remuneration framework, the applicable policies and procedures in this regard for continuing compliance with AIFMD, and ensure that updates are made as necessary in line with the applicable regulations. SAMI shall determine, on a case by case basis, whether or not the scope of the mandate granted to a particular delegate is such that the relevant staff of the Investment Manager constitute “Identified Staff” for the purposes of SAMI’s Remuneration Policy. Proportionality SAMI, as AIFM, may take a proportionate approach, both in respect of how the SAMI Remuneration Policy shall apply to itself and to any relevant delegates (e.g. Investment Managers), in order to ensure compliance in a manner and to the extent that is appropriate to the size and internal organisation of the relevant entity and the nature, scope and complexity of its activities. In assessing what is proportionate, SAMI shall have regard to the provisions contained in the ESMA Guidelines and will focus on the combination of all the criteria mentioned therein. Quantitative Remuneration Disclosure SAMI is required under the AIFMD to make quantitative disclosures of remuneration. The AIFMD requirements on quantitative remuneration disclosures apply only to full performance periods and are first applicable to the first full performance period following the authorisation of the AIFM. The financial year and performance period of SAMI ends on 31 December which coincides with the financial year of the Company. Accordingly the quantitative remuneration disclosures provided in respect to SAMI as AIFM relate to the year ended 31 December 2015. The disclosures set out below are made in line with SAMI’s interpretation of currently available regulatory guidance on quantitative remuneration disclosures. As market or regulatory practice develops, SAMI may consider it appropriate to make changes to the way in which quantitative remuneration disclosures are calculated. 241 SANLAM GLOBAL FUNDS PLC SAMI REMUNERATION POLICY (UNAUDITED) (CONTINUED) Quantitative Remuneration Disclosure (continued) The table below provides an overview of the following: Aggregate total remuneration paid by SAMI to all employees; Aggregate total remuneration paid by SAMI to senior management and other Identified Staff who have a material impact on the risk profile of the Company*; and The allocation of aggregate total remuneration paid by SAMI to senior management and other Identified Staff which is attributable to the Company**. Total remuneration paid by SAMI during financial year Total remuneration paid to employees who have a material impact on the risk profile of the Company: Senior management (including executives) Other Identified Staff* Allocation of total remuneration paid to the employees attributable to the Company**: Senior management (including executives) Other risk takers/other identified staff 2015 2015 2015 Number of beneficiaries Fixed remuneration paid US$ Variable remuneration paid US$ 2015 Carried interest paid by the AIF US$ 15 1,463,922 744,188 Nil 6 N/A 886,212 N/A 595,742 N/A Nil Nil 6 236,771 159,166 Nil N/A N/A N/A Nil *There are no Other Identified Staff of the AIFM, in addition to Senior Management of the AIFM, who would have a material impact on the risk profile of the Company. **As Identified Staff of the AIFM typically provide both AIFMD and non-AIFMD related services in respect of multiple funds, clients and functions of the AIFM and across the wider Sanlam Group, the allocation of aggregate total remuneration paid which is attributable to the Company is calculated based on total assets of the Company which are managed by SAMI as a proportion of the total assets under the management of SAMI at 31 December 2015. Remuneration Disclosures in respect to Identified Staff of Delegates Many of the Investment Managers to which discretionary portfolio management activity has been delegated by SAMI have financial year ends and performance periods that do not coincide with the financial year and performance period end of SAMI. As a result, remuneration disclosures in respect to Identified Staff of Delegates have not been provided in these financial statements as, for many of those Investment Managers, the first full performance periods, following the authorisation of SAMI as the AIFM, have not yet ended. Accordingly, information currently available to SAMI as AIFM in respect to remuneration of Identified Staff of Delegates would not be relevant to the AIFs for this financial year under review or provide a meaningful basis for comparison. Notwithstanding the foregoing, the total remuneration for services rendered paid to the AIFM and each Delegate out of the assets of the relevant Fund in respect of this financial year is disclosed in the financial statements. 242 SANLAM GLOBAL FUNDS PLC LEVERAGE (UNAUDITED) Each Fund may employ leverage and borrow cash strictly in accordance with its stated investment policy or investment strategy. Consistent with its investment objectives and policy, a Fund may utilise a variety of exchange traded and over-the-counter (OTC) derivative instruments such as swaps, options, futures and forward currency transactions as part of its investment policy as more fully set out in each Fund’s Supplement. The use of derivatives may expose a Fund to a higher degree of risk. In particular, derivative contracts can be highly volatile, and the amount of initial margin is generally small relative to the size of the contract so that transactions may be leveraged in terms of market exposure. A relatively small market movement may have a potentially larger impact on derivatives than on standard underlying bonds or equities. Leveraged derivative positions can therefore increase a Fund’s volatility. The use of borrowings and leverage has attendant risks and can, in certain circumstances, substantially increase the adverse impact to which a Fund’s investment portfolio may be subject. For the purposes of this disclosure, leverage is any method by which a Fund’s exposure is increased, whether through borrowing cash or securities, or leverage embedded in derivative contracts or by any other means. The AIFMD prescribes two required methodologies, the gross methodology and the commitment methodology (as set out in AIFMD Level 2 Implementation Guidance), for calculating such exposure. These methodologies are briefly summarised below. The commitment methodology takes account of the hedging and netting arrangements employed by a Fund at any given time (purchased and sold derivative positions will be netted where both relate to the same underlying asset). This calculation of exposure includes all Incremental Exposure as well as a Fund’s own physical holdings and cash. By contrast, the gross methodology does not take account of the netting or hedging arrangements employed by a Fund. This calculation of exposure includes all Incremental Exposure as well as the Fund’s own physical holdings; cash is however excluded from the calculation under the gross methodology. The AIFMD requires that each leverage ratio be expressed as the ratio between a Fund's total exposure (including any Incremental Exposure) and its net asset value. Using the methodologies prescribed under the AIFMD and implementing legislation, the Company has set a maximum level of leverage, taking into account atypical and volatile market conditions. This maximum level and the actual leverage in respect to each Fund of the Company are disclosed in the table below and overleaf: Fund Name Analytics International Flexible Fund Sanlam Global Balanced Fund Sanlam Global Best Ideas Feeder Fund Sanlam Global Equity Fund Sanlam Euro Liquidity Fund Sanlam Sterling Liquidity Fund Sanlam Global Liquidity Fund Commitment leverage Maximum Actual as at 31 permitted December 2015 Gross Leverage Maximum Actual as at 31 permitted December 2015 1:1 1:1 2:1 0.91:1 1:1 1:1 1:1 0.99:1 1:1 1:1 1:1 1:1 1:1 1:1 2:1 0.99:1 1:1 1:1 1:1 0.72:1 1:1 1:1 1:1 0.74:1 1:1 1:1 1:1 0.97:1 243 SANLAM GLOBAL FUNDS PLC LEVERAGE (UNAUDITED) (CONTINUED) Fund Name Sanlam US Dollar Liquidity Fund Verso Global Flexible Fund* Sanlam BIFM Emerging Markets Equity Fund* Sanlam BIFM World Equity Fund Sanlam BIFM Global Fixed Income Fund NFB Global Balanced Fund of Funds Sanlam BIFM South Africa Inflation Linked Bond Fund* Mpile Global Equity Fund Brackenham Global Balanced Fund APS Global Flexible Fund of Funds Counterpoint Global Equity Fund Odyssey Global Equity Fund** Commitment leverage Maximum Actual as at 31 permitted December 2015 Gross Leverage Maximum Actual as at 31 permitted December 2015 1:1 1:1 1:1 0.72:1 N/A N/A N/A N/A N/A N/A N/A N/A 1:1 1:1 1:1 0.99:1 1:1 1:1 1:1 0.99:1 1:1 1:1 1:1 0.95:1 N/A N/A N/A N/A 1:1 1:1 1:1 0.99:1 1:1 1:1 2:1 0.62:1 1:1 1:1 1:1 0.95:1 1:1 1:1 2:1 0.89:1 1:1 N/A 2:1 N/A *Verso Global Flexible Fund, Sanlam BIFM Emerging Markets Equity Fund and Sanlam BIFM South Africa Inflation Linked Bond Fund closed during the year ended 31 December 2015. **Odyssey Global Equity Fund was approved by the Central Bank of Ireland on 30 October 2015. However, as of the date of approval of these financial statements, the Fund has not yet launched. 244 SANLAM GLOBAL FUNDS PLC NOTICE OF GENERAL MEETING OF SANLAM GLOBAL FUNDS PLC Notice is hereby given that the annual general meeting of Sanlam Global Funds Plc will be held at the offices of Sanlam Asset Management (Ireland) Limited, Beech House, Beech Hill Road, Dublin 4 on 24 June 2016 at 11.15 a.m. for the following purposes: To receive and consider the financial statements for the year ended 31 December 2015 and the reports of the Directors and auditors thereon. To appoint Ernst & Young as auditors of the Company. To authorise the Directors to fix the remuneration of the auditors. And to transact any other business which may properly be brought before the meeting. By Order of the Board Sanlam Asset Management (Ireland) Limited Dated 21 April 2016 Registered Office: Beech House, Beech Hill Road, Dublin 4. A member entitled to attend and vote may appoint a proxy to attend, speak and vote on his behalf. A proxy need not be a member of the Company. 245 SANLAM GLOBAL FUNDS PLC PROXY FORM SANLAM GLOBAL FUNDS PLC I/We……………………………………………………………………………………………………………… Please insert your name in block capitals ……………………………………………………………………………………………………………………… Please insert your name in block capitals being a Shareholder in Sanlam Global Funds Plc hereby appoint ……………………………………………………………………………………………………………………… Please insert the name of someone who can attend on your behalf or else leave this space blank – see notes below or failing him/her the Chairman of the Meeting or failing him/her Gerardine Kelly to vote on my/our behalf at the Meeting of the shareholders of the Company to be held on 24 June 2016 at 11.15 a.m. and at any adjournment thereof. I/We instruct my/our proxy to vote in the manner indicated below in respect of each of the Resolutions. Failing any specific instruction, the proxy will vote at his/her complete discretion. IN FAVOUR OF / AGAINST Please tick appropriate box 1. To receive and consider the financial statements for the year ended 31 December 2015 and the reports of the Directors and auditors thereon. 2. To appoint Ernst & Young as auditors of the Company. 3. To authorise the Directors to fix the remuneration of the auditors. Signature …………………………………………………………………………………. Date ……………………………… Notes: A Shareholder entitled to attend and vote at the above meeting is entitled to appoint a proxy to attend and vote instead of him/her. If you wish to appoint as your proxy some person other than the Chairman of the meeting or Gerardine Kelly, insert in block capitals the full name of the person of your choice in the space provided. A proxy need not be a Shareholder of the Company. The proxy will exercise his/her discretion as to how he/she votes or whether he/she abstains from voting on the resolutions referred to above if no instruction is given of the resolutions, and on any business or resolution considered at the Meeting other than the resolutions to above. This proxy form (and the power of attorney or other authority, if any, under which it is signed or a notarially certified copy thereof) must be deposited at the registered office of the Company, Beech House, Beech Hill Road, Dublin 4, Ireland attention Gerardine Kelly (or fax to: 353 1 205 3521) no later than the time appointed for the meeting. If the appointer is a corporation, this proxy form must be executed under the seal or under the hand of some officer or attorney duly authorised on its behalf. In the case of joint holders, any one holder may sign. The completion and return of the proxy form will not preclude Shareholders from attending and voting at the Meeting should they decide to do so. 246 SANLAM GLOBAL FUNDS PLC Issued by Sanlam Asset Management (Ireland) Limited Beech Hill House Beech Hill Road Dublin 4 Ireland 247