Contribuciones Teóricas

For the year ended 31 December 2013

2. PRINCIPAL ACCOUNTING POLICIES (continued)

Futures Contracts

The value of futures contracts traded on an exchange are valued at the latest closing prices as published by the relevant exchange or clearing house. Where any such instruments are traded over the counter they shall be valued by reference to the values provided by the counterparties or in such other manner as may be determined by the Directors to reflect the true value thereof.

Income

Investment income is reported gross of irrecoverable withholding tax. Dividends are recognised as income on the dates the securities are first quoted “ex-dividend”. In certain situations dividends are accounted for on a cash receipts basis where this is more appropriate. Bond interest is accounted for on an effective interest basis. Deposit interest and other income are accounted for on an accruals basis.

Operating Expenses

The Company is responsible for all normal operating expenses including audit fees, stamp and other duties and charges incurred on the acquisition and realisation of investments.

Financial assets and financial liabilities at fair value through profit or loss

(a) Classification

In accordance with FRS 29 “Financial Instruments: Recognition and Measurement”, all investments are classified as financial assets and liabilities at fair value through profit or loss.

This category has two sub-categories: financial assets or financial liabilities held for trading; and those designated at fair value through profit or loss at inception.

(i) Financial assets and financial liabilities held for trading

Financial assets or financial liabilities held for trading are those acquired or incurred principally for the purposes of selling or repurchasing in the short term, or if on initial recognition are part of a portfolio of identifiable financial investments that are managed together and for which there is evidence of a recent actual pattern of short-term profit taking. Derivatives are categorised as held for trading.

(ii) Financial assets and financial liabilities designated at fair value through profit or loss at inception

The Company classifies its investments in equity securities, bonds and collective investment schemes, as financial assets or financial liabilities at fair value through profit or loss at inception. Financial assets and financial liabilities designated at fair value through profit or loss at inception are those that are managed and their performance evaluated on a fair value basis in accordance with the Company’s documented investment strategy. The Company’s policy is for the Investment Manager and the Board of Directors to evaluate the information about these financial assets on a fair value basis together with other related financial information.

(b) Recognition/derecognition

Purchases and sales of investments are recognised on the trade date – the date on which the Company commits to purchase or sell the investment. Investments are derecognised when the rights to receive cash flows from the investments have expired or the Company has transferred substantially all risks and rewards of ownership.

(c) Measurement

Financial assets and financial liabilities at fair value through profit or loss are initially recognised at fair value. After initial measurement the Company measures financial instruments which are classified as at fair value through profit or loss at fair value. Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm's length transaction. The fair value of financial instruments is based on their quoted market prices on a recognised exchange or sourced from a reputable broker/counterparty in the case of non- exchange traded instruments, at the balance sheet date without any deduction for estimated future selling costs. Financial assets are priced at their current bid prices, while financial liabilities are priced at their current offer prices. If a quoted market price is not available on a recognised stock exchange or from a broker/counterparty, the fair value of the financial instruments may be estimated by a competent person using valuation techniques, including use of recent arm's length market transactions and reference to the current fair value of another instrument that is substantially the same, discounted cash flow techniques, option pricing models or any other valuation technique that provides a reliable estimate of prices obtained in actual market transactions.

NOTES TO THE FINANCIAL STATEMENTS (continued)

For the year ended 31 December 2013

2. PRINCIPAL ACCOUNTING POLICIES (continued)

(c) Measurement (continued)

Subsequent changes in the fair value of financial instruments are recorded in “Net realised and unrealised gains and losses on financial assets and liabilities at fair value through profit or loss”. Bank interest income from financial assets at fair value through profit or loss is recognised in the Income Statement on an accruals basis. Interest income from financial assets at fair value through profit or loss is recognised using the effective interest rate method in the Income Statement. Dividend income from financial assets at fair value through profit or loss is recognised in the Income Statement within dividend income when the Funds right to receive payments is established.

The Company invests in both exchange traded and non exchange traded collective investment schemes. The quoted market price used for exchange traded collective investments schemes is the current bid price. For non exchange traded collective investment schemes, the fair value of the investments in collective investment schemes is valued based on the latest available published unaudited net asset value. The net asset values at 31 December 2013 of the collective investment schemes may subsequently be adjusted when audited Financial Statements for the collective investment schemes become available. The Board of Directors will consider from time to time other factors that may have an impact on the Net Asset Value per share of the collective investment schemes and may consider adjusting its price to reflect a more appropriate fair value of a collective investment scheme.

FRS 29 “Financial Instruments: Disclosures” (“FRS 29”) established a fair value hierarchy for the inputs used in

valuation models and techniques used to measure fair value.

Asset and liabilities measured at fair value are classified into one of the following categories:

 Level I – Unadjusted quoted prices in active markets that are accessible at the measurement date for

identical, unrestricted assets or liabilities. The type of investment which would generally be included would include equities, certain collective investment schemes and derivatives listed on a securities exchange.

 Level II – Quoted prices in markets that are not considered to be active or financial instruments for which all

significant inputs are observable, either directly or indirectly (including quoted prices for similar investments in active markets, interest rates and yield curves, credit risk, etc.). The type of investments which would generally be included in this category would include corporate bonds, certain collective investment schemes, bank debt and certain over-the-counter derivatives.

 Level III – Price or valuations that require inputs that are both significant to the fair value measurement and

unobservable (including the Investment Manager’s own assumptions and assumptions used by the Board of Directors about what market participants would use in determining the fair value of investments). The type of investments which would generally be included in this category would include private or debt securities issued by private entities. The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities.

Functional currency

Items included in the Company’s financial statements are measured using the currency of the primary economic environment in which it operates (the ‘functional currency’). The functional currency for each Fund is Sterling with the exception of CGWM Select Global Diversity Fund, CGWM Select Global Affinity Fund and CGWM Select Global Opportunity Fund where the functional currency is the US dollar. To calculate the total figures, US dollar assets and liabilities in the financial statements have been translated to Sterling at the average rate of exchange for the year ended 31 December 2013 on the Income Statement and at the year end rate on the Balance Sheet. The notional exchange adjustment arising from the translation of the opening net assets is shown in the Statement of Changes in Net Assets attributable to holders of redeemable shares. The method of translation has no effect on the Net Asset Value per share attributable to the individual Funds.

Foreign Currencies

Transactions which occurred during the period are translated into the functional currency of the Fund at the exchange rate prevailing on the transaction date. Assets and liabilities in foreign currencies are translated into the Fund’s functional currency at exchange rates prevailing at the balance sheet date. Resulting gains or losses are reported in the Income Statement.

Cash

NOTES TO THE FINANCIAL STATEMENTS (continued)

For the year ended 31 December 2013

2. PRINCIPAL ACCOUNTING POLICIES (continued)

(c) Measurement (continued)

Transaction Costs

Transaction costs are incremental costs that are directly attributable to the acquisition, issue or disposal of a financial asset or liability. An incremental cost is one that would not have been incurred if the entity had not acquired, issued or disposed of the financial instrument. When a financial asset or liability is recognised initially, an entity shall measure it at its fair value through profit or loss plus transaction costs that are directly attributable to the acquisition or issue of the financial asset or liability.

Transaction costs on the purchase and sale of bonds, forwards, swaps and futures are included in the purchase and sale price of the investment. Transaction costs shown separately on the Income Statement comprise of fees and agent charges by the custodian to any sub-custodian.

Offsetting financial assets and financial liabilities

Financial assets and financial liabilities are offset when a current legal right of offset exists and there is intent to realise the asset and settle the liability simultaneously or on a net basis.

Income Equalisation

Income equalisation is a process by which accrued income included in the price of shares purchased and redeemed during the accounting year is reported to Shareholders. The subscription price of Shares is deemed to include an equalisation payment calculated by reference to the accrued income of the relevant Fund and the first distribution in respect of any Share will include a payment of income usually equal to or greater than the amount of such equalisation payment. The redemption price of each Share will also include an equalisation payment in respect of the accrued income of the relevant Fund up to the date of redemption. Income equalisation is classifie d as finance costs in the Profit and Loss Account.

Redeemable Participating Shares

Redeemable participating shares are redeemable at the shareholder’s option and are classified as financial liabilities. The income distributed on these shares is recognised in the Income Statement as a finance cost.

Net asset value per redeemable participating share

The net asset value per redeemable participating share disclosed on the face of the Balance Sheet is calculated in accordance with the Articles of Association and the Prospectus by dividing the net assets included in the Balance Sheet, by the number of redeemable participating shares outstanding at year end.

Distributions

For CGWM Select Affinity Fund, CGWM Select Global Affinity Fund, CGWM Select Opportunity Fund and CGWM Select Global Opportunity Fund, it is the intention of the Directors to distribute income on an annual basis. Distributions will be declared based on the NAV of the last business day of December. Distributions will be paid within one month of the declaration date.

For the CGWM Total Return Bond Fund, CGWM Select Diversity Fund, CGWM Select Global Diversity Fund, CGWM REMAP 4 Fund, CGWM REMAP 4(i) Fund and CGWM REMAP 5 Fund, the Directors have discretion to distribute any income on a semi-annual basis. Distributions will be declared on the last Business Day in June and December each year. Distributions will be paid within one month of the declaration date.

For CGWM Select Income Fund, it is the intention of the Directors to distribute income on a quarterly basis. Distributions will be declared in March, June, September and December of each year and paid within one month of the declaration date.

The United Kingdom HM Revenue and Customs (“HMRC”) has confirmed that the Company and each of its Funds is in the UK Reporting Fund Regime from 1 January 2011 onwards (and was previously certified as a distributing fund). All required submissions for Reporting Status for the year ended 31 December 2013, will be made within the required timeframe.

Rebate from underlying Collective Investment Schemes

The Investment Manager has entered into a number of arrangements with the investment managers of the Collective Investment Schemes where the relevant Funds receive a rebate of some of the management fees charged in the Collective Investment Schemes. This rebate is received by the relevant Fund on a monthly, quarterly or a yearly basis depending on the arrangements that are in place with the Investment Manager.

Rebate on Transaction Charge

This is the repayment of overcharged transaction fees made by the Custodian in relation to the administration involved in processing invoice payments incurred between 2008 and 2013.

NOTES TO THE FINANCIAL STATEMENTS (continued)

For the year ended 31 December 2013

3. RELATED PARTY DISCLOSURES

The Company has entered into an Investment Management Agreement and a Marketing and Distribution Agreement with both Canaccord Genuity Wealth (International) Limited (formerly Collins Stewart (CI) Limited) and Canaccord Genuity Wealth Limited (formerly Collins Stewart Wealth Management Limited) the latter of which Collette Wisener- Keating is an employee. It has also entered into a Marketing and Distribution Agreement with Canaccord Genuity Limited (formerly Collins Stewart Europe Limited). Mr John Renouf held 1,234.94 (2012:1,191.15) shares in the CGWM Total Return Bond Fund at the year end date.

Brian McDermott is a Partner in A&L Goodbody, who are the Irish Legal Advisers of the Company. Fees of €78,668 (2012: €62,194) were paid to A&L Goodbody during the year. Brian McDermott is also a Director of A&L Listing, the Sponsoring Broker to the Company. Fees of €2,460 (2012: €2,460) were paid to A&L Listing during the year. All fees received by the Investment Managers are disclosed separately in the Income Statement on pages 27 and 28. The amounts due to the Investment Managers are disclosed on the face of the Balance Sheet and the rate of Investment Management fee is disclosed in Note 11.

All transactions with connected parties are required to be carried out at arm’s length and in the best interest of

shareholders. A connected party (as defined in the UCITS notices) is the promoter, manager, trustee, investment adviser and/or associated or group companies.

Although not deemed to be connected parties under Irish GAAP as they do not exercise significant influence over the activities of the Company, UCITS Notice 14 also deems a “Custodian” and its “associated or group companies” to be connected parties to the Company. As such, Northern Trust Fiduciary Services (Ireland) Limited (NTSFIL), the Custodian, and Northern Trust International Fund Administration Services (Ireland) Limited (NTIFASIL), the Administrator, are connected parties to the Company. During the year, NTFSIL and NTIFASIL earned fees for provision of custody and administration services to the Company as disclosed in the Statement of Operations. NTFSIL were selected by the Company to execute foreign exchange transactions and purchase and sell securities on behalf of the sub-funds, the terms of such transactions are agreed/negotiated by the Company through the Investment Manager and The Northern Trust Company, London Branch (NTC).

4. CASH DEPOSITS

At 31 December 2013, the Company held cash of £24,030,412 (2012: £15,528,915) with Northern Trust Company, London Branch (NTC), £125,370 (2012: £373,801) with ADM Investor Services International Limited (Broker) and USD nil (2012: USD384,510) with MF Global (Broker). ADM Investor Services International Limited has a credit rating of A from Standard and Poors (2012: A).

5. SHARE CAPITAL

The authorised share capital of the Company is 500,000,000,000 shares of no par value initially designated as unclassified shares available for issue as shares; the issued subscriber share capital of the Company is £7 represented by 7 subscriber shares (issued for the purposes of the incorporation of the Company). One share is held by Canaccord Genuity Wealth (International) Limited and the other 6 are held by Forest Nominees Limited. At the discretion of the Directors, the subscriber shares may be repurchased at their issue price.

GBP Shares GBP Shares GBP Shares GBP Shares

2013 2012 2013 2012

Opening shares in issue 179,736 299,214 7,683,796 8,260,440

Subscriptions during the year 17,196 8,769 3,824,652 873,447

Redemptions during the year (110,216) (128,247) (1,846,039) (1,450,091)

Closing shares in issue 86,716 179,736 9,662,409 7,683,796

CGWM Select Income Fund CGWM Total Return Bond Fund

NOTES TO THE FINANCIAL STATEMENTS (continued)