Annual Report 2010 - Private Clients - Standard Bank

Standard Bank Strategist Funds Limited 

Annual Report 2010


2010 Annual Report 

Contents 

Management and Administration 2 

Report of the directors 3 

Reports of the Custodians 4 

Investment Adviser’s Report 5 – 6 

Report of the Independent Auditor 7 

Statements of Total Return 8 – 9 

Statements of Changes in Shareholders’ Net Assets 8 – 9 

Balance Sheets 10 – 11 

Notes to the Financial Statements 12 – 47 

Fund Statistics (unaudited) 48 – 50 

Notice of Annual General Meeting 51 

1



Management and administration 

Directors 

M Logan 

F Stewart (Appointed 12 November 2010) 

M Farrow (Appointed 14 December 2010) 

C Stead (Resigned 14 December 2010) 

O Taylor (Resigned 25 October 2010) 

Independent auditor 

Ernst & Young LLP 

Liberation House 

Castle Street 

St. Helier, Jersey JE1 1EY 

Channel Islands 

Registered office 

Standard Bank House 

47-49 La Motte Street 

St. Helier, Jersey JE4 8XR 


Legal adviser 

Ogier 

Ogier House 

The Esplanade 

St. Helier, Jersey JE4 9WG 


Manager and 

Investment adviser 

Standard Bank Fund Managers Jersey Limited 





Custodian to Global 

Equity Classes 

Capita Trust Company (Jersey) Limited 

12 Castle Street 

St. Helier, Jersey JE2 3RT 


Custodian to 

Alternative Strategies 

Classes and 

Alternative Equity 

Classes and 

Sub-Custodian to 

Global Equity Classes 

Standard Bank Jersey Limited 





2



Report of the directors 

The directors submit their Annual Report and Financial Statements for the year ended 

31 October 2010. 

Objective and investment policy 

The objective of the Standard Bank Strategist Funds Limited (the “Company”) is 

to provide investors with a worldwide range of investment opportunities, which are 

professionally managed, with the aim of achieving long-term growth through capital 

gains and accumulation of income. 

The Company offers investors a choice of classes of Participating Shares (each such 

class being designated by reference to a separate investment portfolio referred to as a 

“Class Fund”) and the opportunity to switch between Class Funds. 

There are currently nine Class Funds within the Company. There are three classes 

investing in global investment strategies, namely the Multi Manager Global Equity (GBP) 

Class, the Multi Manager Global Equity (USD) Class and the Multi Manager Global 

Equity (EUR) Class. 

In addition there are three classes investing in alternative investment strategies, namely 

the Multi Manager Alternative Strategies (GBP) Class, the Multi Manager Alternative 

Strategies (USD) Class and the Multi Manager Alternative Strategies (EUR) Class. 

There are a further three classes investing in alternative equity investment strategies, 

namely the Multi Manager Alternative Equity (GBP) Class, the Multi Manager Alternative 

Equity (USD) Class and the Multi Manager Alternative Equity (EUR) Class. 

Each Class Fund carefully selects the assets in which it invests for their credit quality 

and marketability and ensures that it has a reasonable spread of investments. 

Each Class Fund may enter into hedging transactions in the form of derivatives, forward 

contracts, futures, or similar instruments to reduce or eliminate risks arising from the 

fluctuations in the price of investments held, or because of fluctuations in interest rates. 

All Participating Shares not previously redeemed will be redeemed by the Company 

on the last subscription day in 2099 at their respective redemption prices on such 

subscription day. 

Results and dividends 

The results for the year are set out in the Statements of Total Return on pages 8 and 9. 

The Company’s present policy is to accumulate income and as such no distributions 

will be made. 

Directors 

The directors of the Company are set out on page 2. 

Directors responsibilities 

The directors are responsible for preparing the Annual Report and the financial 

statements in accordance with applicable law and regulations. 

Jersey company law requires the directors to prepare financial statements for each 

financial period in accordance with any generally accepted accounting principles. The 

financial statements of the Company are required by law to give a true and fair view 

of the state of affairs of the Company and of the profit or loss of the Company for that 

period. In preparing these financial statements, the directors should: 

• select suitable accounting policies and then apply them consistently; 

• make judgments and estimates that are reasonable and prudent; 

• specify which generally accepted accounting principles have been adopted in their 

preparation; and 

• prepare the financial statements on the going concern basis unless it is inappropriate 

to presume that the Company will continue in operation. 

The directors are responsible for keeping proper accounting records which are 

sufficient to show and explain its transactions and are such as to disclose with 

reasonable accuracy at any time the financial position of the Company and enable 

them to ensure that the financial statements prepared by the Company comply with 

the requirements of the Companies (Jersey) Law 1991. They are also responsible for 

safeguarding the assets of the Company and hence for taking reasonable steps for the 

prevention and detection of fraud and other irregularities. 

Independent Auditors 

Ernst & Young LLP have indicated their willingness to continue in office. A resolution 

to re-appoint Ernst & Young LLP as independent auditors to the Company will be 

proposed at the annual general meeting. 

By order of the board 


Secretary 

3



Reports of the Custodians 

Report of the Custodian to the Global Equity Classes 

It is the opinion of Capita Trust Company (Jersey) Limited in respect of the year ended 

31 October 2010, during which time we acted as Custodian to the Global Equity 

Classes, that to the best of our information, knowledge and belief, that in all material 

respects, the Manager managed the Class Funds in that year: 

a) in accordance with the limitations imposed on the investment and borrowing 

powers of the Company by the Articles, Prospectus and Class Fund Rules and; 

b) otherwise in accordance with the provisions of the Management and Custodian 

Agreements. 

Capita Trust Company (Jersey) Limited 

Jersey 


28 May 2010 

Report of the Custodian to the Alternative Strategies Classes and 

Alternative Equity Classes 

The Custodian is responsible for the safe keeping of all property of the Alternative 

Strategies and Alternative Equity Classes, which are entrusted to it. It is the duty of 

the Custodian to take reasonable care to ensure the Class Funds are managed in 

accordance with the provisions of the Class Fund’s principle documents and rules in 

relation to the pricing of, and dealing in, shares in the Class Funds. 

We hereby state that, in our opinion, to the best of our information, knowledge and 

belief, Standard Bank Fund Managers Jersey Limited has managed the Class Funds 

during the year to 31 October 2010 in accordance with the Class Funds principle 

documents and rules. 

Standard Bank Jersey Limited 

Jersey 


28 May 2010 

4



Investment Adviser’s report 

Market Review & Outlook 

Multi Manager Global Equity Classes 

Performance Comment 

‘I think virtually all asset classes are going to be rising with the higher betas rising more 

than the lower betas. The economy, on the other hand is going to remain very weak. It 

is because the economy is going to be so weak that the central bankers are going to 

keep money flowing easy with interest rates very low and that is the main driving force 

behind appreciating assets’ 

Portfolio Adviser 

September 2010 

The encouraging start to the year for global equity markets came to a rather abrupt halt, 

as uniformly negative macro news dominated the headlines in the period. The Greek 

sovereign debt crisis raised concerns of a domino effect affecting other European 

countries, such as Spain, Italy and Portugal, whilst Chinese property price inflation and 

a hung parliament in the United Kingdom, all weighed on investor sentiment. 

Exceptional gains in July and September, where the S&P enjoyed its strongest return 

since the Second World War, offset a weak August resulting in double digit gains for 

the majority of regional equity indices in local currency terms in the latter part of the 

period. Two exceptions were European stocks which returned over 7% and Japan, 

which eked out a small rise of 2%. The driving forces behind the continued volatility 

in global stockmarkets remain ongoing negative macro concerns, for example 

potential European sovereign debt default and the impact of austerity measures on 

the one hand, versus positive corporate fundamentals and burgeoning merger and 

acquisition activity. 

The plethora of headline negative economic news has deterred many investors from 

committing funds to equity markets, resulting in lower than average trading volumes in 

a period that traditionally experiences light trading. These conditions will tend to lead 

to increased short term volatility and consequently variable performance, particularly 

for those managers who focus on investing, rather than trading as their portfolios are 

positioned for the longer term. As our preference is predominantly to own the former, 

who will also tend to adopt an unconstrained approach, our experience is that this can 

result in mixed short term performance. 

Activity in the Period 

No fundamental changes have been made to our investment strategy. Firstly, we prefer 

not to make major calls in the summer months for the reasons highlighted above and 

secondly the outcome of the macro versus micro tug of war remains finely balanced. It 

has been interesting to note however, that as the period progressed a number of well 

respected equity fund managers have become increasingly confident on their asset 

class, with high double digit gains being forecast by the more optimistic. Should the 

increasing mood of optimism on the outlook for equities that we have detected from 

our meetings with fund managers lead to renewed market strength we would expect 

the portfolio activity to increase. 

Multi Manager Alternative Strategies Classes 


The core investment themes that were evident at the start of the year continued to 

drive the return profile of the Class Fund during 2010, although specific style 

changes have been made, most notably within the allocation to fixed income. 

Broadly, most of the directional bond funds, particularly those focussing largely on 

investment grade debt, with a long only approach, have been replaced with funds 

that either have an absolute return, or strategic allocation approach, where a 

combination of long and short positions are held. Quantitative easing (QE) measures 

are likely to remain supportive for ‘risk assets’, although short-term bouts of market 

volatility during 2011 should not be too surprising, particularly given that we feel that 

the current outlook for the year ahead is not too dissimilar to the one we held this 

time last year. Volatile market conditions should favour an active trading approach, 

which should hopefully suit our style. 

It is likely that the composition of the Class Funds will be altered during the course of 

2011, to include funds that are more correlated to global equities, than global bonds, 

such as global convertibles, high yield debt and thematic equity long/short strategies. 

However, we are reticent to re-allocate too swiftly, given the strong rally since the end 

of November. Also, the current consensus seems to be too negative towards 

government bonds and should investor sentiment suddenly shift to risk-averse, then an 

attractive trading opportunity may present itself. Finally, an active trading policy to both 

currencies and commodities will continue to be an important component of our overall 

investment strategy. 

In terms of the underlying funds held, we have continued to focus on UCITS III 

structures where possible, rather than the hedge variants, since transparency and 

liquidity remain fundamental to our investment approach. Most of the underlying funds 

are priced on a daily basis and the exposure to those with monthly dealing frequencies 

have been reduced to around 25%. These include three multi-manager hedge funds, 

Rothschild Nemrod Diversified, Aurum Investor and Thames River Warrior, together 

with a core G7 bond fund hedge strategy managed by Aviva. 

5



Investment adviser’s report (continued) 

Multi Manager Alternative Strategies Classes (continued) 

Our investment approach will continue to be driven by macro considerations, 

influenced largely by global themes evident in foreign exchange, global bond, equity 

and commodity markets. This has enabled the Class Funds to maintain a return profile 

that is less correlated to the movements in the global equity markets, particularly 

during periods of sharp drawdown, unlike most multi-strategy hedge funds, which 

have become increasingly correlated over the last few years. 

Multi Manager Alternative Equity Classes 


In the six month period to the end of October, equity market sentiment continued to 

be fickle, with markets trading sharply up or down from one news release to the next. 

The ongoing dilemma for investors is that despite the surprisingly good news coming 

from corporates, the economic outlook remains bleak and there are well founded 

concerns that the effects of upcoming austerity measures could send Western 

economies back into recession. The other great unknown is whether the Asian 

economic growth cycle can really dislocate from the West and in particular, is the 

boom in China sustainable 

This whip-sawing effect on the market has proved to be a substantial headwind for 

equity long/short strategies and for the six months to the end of October, the 

performance of the Alternative Equity Fund has been flat, broadly in line with the 

benchmark index. 

Despite this, the majority of our managers are becoming far more optimistic, and there 

are some encouraging signs that market conditions may be becoming more favourable 

for long/short strategies. We believe the opportunity set for stock pickers is particularly 

ripe, as many of the anomalous valuations created by the extended bout of elevated 

volatility will correct, at some stage. 

a short position. In 2009 this proved extremely painful as the share price rallied almost 

50% from the lows of March 2009, despite continuously deteriorating fundamentals for 

the company. Fortunately, however, our managers held their conviction and the 

company ultimately fell into administration in early September. Patience was eventually 

rewarded with a 100% profit on the trade. 

Activity in the period 

We are progressing with several allocation changes to our strategy. The exposure to 

multi-strategy investment has been reduced with the redemption of the Eddington 

Triple Alpha Fund and the sale of all of the hedge fund investment companies, which 

we now feel are trading towards fair value. We are in the process of completing due 

diligence on several Asian and Emerging Market long/short equity managers, where in 

our view the opportunity set is ripe and we feel comfortable that there are now sufficient 

managers with institutional quality infrastructure to allow us to allocate additional 

capital. We are also considering an allocation to thematic energy/resources managers 

where again we feel there are significant opportunities. 

Additionally, we have continued to search for more liquid investment strategies with 

approximately fifty percent of the investments in the Class Funds now having daily or 

weekly dealing. The remaining offer monthly redemption terms, apart form one three 

percent holding which deals quarterly. 


22 January 2010 

We already have preliminary evidence of this in the recent performance numbers, with 

the Fund rising about 3.5% in the last two months. Perhaps more significantly though, 

some of our managers are reporting positive attribution from both the long and short 

sides of their portfolios and are increasingly confident in the market. For the first time 

since launch in June 2008, the majority of the managers in the Class Funds are 

increasing gross market exposures and taking a less defensive approach to investing 

in these difficult markets. 

6 

A good specific stock example which has been in the UK press recently is Connaught 

Plc., which had been identified by several of our managers as a company with major 

structural problems and ‘unusual’ accounting practices – it was subsequently held as



Report of the Independent Auditor to the members of Standard Bank Strategist Funds Limited 

We have audited the company’s financial statements for the year ended 31 October 

2010 which comprise Statements of Total Return, Statements of Changes in 

Shareholders’ Net Assets, Balance Sheets, and the related notes 1 to 14. These 

financial statements have been prepared under the accounting policies set out therein. 

This report is made solely to the company’s members, as a body, in accordance 

with Article 113A of the Companies (Jersey) Law 1991. Our audit work has been 

undertaken so that we might state to the company’s members those matters we are 

required to state to them in an auditors’ report and for no other purpose. To the fullest 

extent permitted by law, we do not accept or assume responsibility to anyone other 

than the company and the company’s members as a body, for our audit work, for this 

report, or for the opinions we have formed. 

Respective responsibilities of directors and auditors 

The directors are responsible for the preparation of the financial statements in 

accordance with applicable Jersey law as set out in the Statement of Directors’ 

Responsibilities. 

Our responsibility is to audit the financial statements in accordance with relevant legal 

and regulatory requirements and International Standards on Auditing (UK and Ireland). 

We report to you our opinion as to whether the financial statements give a true and fair 

view and are properly prepared in accordance with the Companies (Jersey) Law 1991. 

We also report to you if, in our opinion, the company has not kept proper accounting 

records or if we have not received all the information and explanations we require for 

our audit. 

made by the directors in the preparation of the financial statements, and of whether 

the accounting policies are appropriate to the company’s circumstances, consistently 

applied and adequately disclosed. 

We planned and performed our audit so as to obtain all the information and 

explanations which we considered necessary in order to provide us with sufficient 

evidence to give reasonable assurance that the financial statements are free from 

material misstatement, whether caused by fraud or other irregularity or error. In forming 

our opinion we also evaluated the overall adequacy of the presentation of information 

in the financial statements. 

Opinion 

In our opinion the financial statements give a true and fair view, in accordance with 

United Kingdom Accounting Standards, of the state of the company’s affairs as at 31 

October 2010 and of its profit for the year then ended and have been properly prepared 

in accordance with the Companies (Jersey) Law 1991. 

Christopher James Matthews, FCA 

For and on behalf of Ernst & Young LLP 

Jersey, Channel Islands 

22 March 2011 

We read other information contained in the report and consider whether it is 

consistent with the audited financial statements. The other information comprises 

only Management and Administration, Report of the Directors, Reports of Custodians, 

Investment Adviser’s Report, Fund Statistics and Notice of the Annual General 

Meeting. We consider the implications for our report if we become aware of any 

apparent misstatements or inconsistencies with the financial statements. Our 

responsibilities do not extend to any other information. 

Basis of audit opinion 

We conducted our audit in accordance with International Standards on Auditing (UK 

and Ireland) issued by the Auditing Practices Board. An audit includes examination, 

on a test basis, of evidence relevant to the amounts and disclosures in the financial 

statements. It also includes an assessment of the significant estimates and judgments 

7



Statements of Total Return 

For the year ended 31 October 2010 

Multi Manager Global Multi Manager Global Multi Manager Global Multi Manager Alternative 

Equity (GBP) Class Equity (USD) Class Equity (EUR) Class Strategies (GBP) Class 

2010 2009 2010 2009 2010 2009 2010 2009 

Note £ £ US$ US$ EUR EUR £ £ 

Income 

Net capital gains/(losses) 3 7,286,691 9,061,012 3,033,439 5,527,389 1,410,336 930,425 2,118,089 3,237,519 

Revenue 4 83,199 319,666 31,934 83,954 20,911 23,791 737,112 158,210 

Expenses 5 (779,127) (675,514) (425,324) (379,488) (154,971) (100,068) (373,927) (346,377) 

Finance cost: interest – – – – – (19) – (131) 

Net (expense)/income for the year before 

taxation (695,928) (355,848) (393,390) (295,534) (134,060) (76,296) 363,185 (188,298) 

Taxation (4,673) (902) (3,642) (826) (2,734) (135) (51,329) (5,862) 

Net (expense)/income for the year after 

taxation (700,601) (356,750) (397,032) (296,360) (136,794) (76,431) 311,856 (194,160) 

Change in net assets attributable to 

Shareholders 6,586,090 8,704,262 2,636,407 5,231,029 1,273,542 853,994 2,429,945 3,043,359 

Statements of Changes in Shareholders’ Net Assets 





Net assets at beginning of year 42,396,390 38,954,839 24,161,859 21,124,114 8,373,961 6,678,227 36,019,399 37,019,047 

Amounts receivable on creation of shares 6,944,200 6,421,645 8,313,330 6,387,832 1,889,988 2,661,406 3,410,551 2,170,190 

Amounts payable on liquidation of shares (9,117,190) (11,684,356) (10,708,058) (8,581,116) (2,981,615) (1,819,666) (9,039,099) (6,213,197) 

Currency gain on aggregation – – – – – – – – 

Change in net assets attributable to 

shareholders 6,586,090 8,704,262 2,636,407 5,231,029 1,273,542 853,994 2,429,945 3,043,359 

Net assets at end of year 46,809,490 42,396,390 24,403,538 24,161,859 8,555,876 8,373,961 32,820,796 36,019,399 

8 

The notes on pages 12 to 47 form an integral part of these financial statements.

Multi Manager Alternative Multi Manager Alternative Multi Manager Alternative Multi Manager Alternative Multi Manager Alternative Aggregated Fund 

Strategies (USD) Class Strategies (EUR) Class Equity (GBP) Class Equity (USD) Class Equity (EUR) Class 

2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 

US$ US$ EUR EUR £ £ US$ US$ EUR EUR £ £ 

1,436,065 2,484,482 360,313 151,393 694,295 1,400,330 368,298 (1,474,582) 141,800 155,946 14,787,565 18,772,746 

163,721 31,504 87,629 34,209 14,268 73,887 1,525 39,009 652 22,392 1,052,835 717,432 

(236,508) (428,284) (74,001) (82,587) (436,139) (602,816) (236,338) (242,555) (105,280) (79,209) (2,441,554) (2,496,301) 

– – – (6) – – – – – – – (153) 

(72,787) (396,780) 13,628 (48,384) (421,871) (528,929) (234,813) (203,546) (104,628) (56,817) (1,388,718) (1,779,022) 

– (1,679) (4,761) (1,007) – – – – – – (64,796) (9,306) 

(72,787) (398,459) 8,867 (49,391) (421,871) (528,929) (234,813) (203,546) (104,628) (56,817) (1,453,514) (1,788,328) 

1,363,278 2,086,023 369,180 102,002 272,424 871,401 133,485 (1,678,128) 37,172 99,129 13,334,051 16,984,418 





27,497,896 29,123,689 6,087,448 9,064,701 21,296,378 12,908,411 15,803,155 10,840,070 5,100,250 3,311,339 158,149,404 141,643,837 

2,867,131 5,442,000 1,577,484 1,364,900 3,126,650 9,282,057 2,485,250 8,076,782 876,859 2,054,300 25,805,641 34,717,449 

(14,600,670) (9,153,816) (751,848) (4,444,155) (2,678,848) (1,765,491) (6,612,500) (1,435,569) (1,010,134) (364,518) (44,924,742) (36,550,302) 

– – – – – – – – – – 764,726 1,354,002 

1,363,278 2,086,023 369,180 102,002 272,424 871,401 133,485 (1,678,128) 37,172 99,129 13,334,051 16,984,418 

17,127,635 27,497,896 7,282,264 6,087,448 22,016,604 21,296,378 11,809,390 15,803,155 5,004,147 5,100,250 153,129,080 158,149,404 

9



Balance Sheets 

As at 31 October 2010 





Assets 

Investments 14 46,326,878 40,251,980 24,113,143 23,059,453 8,409,644 7,936,473 29,849,586 29,281,829 

Derivatives 11 – – – – – – – – 

Amounts due on creations 199,997 325,499 12,603 69,994 – – – – 

Amounts due from brokers 758,907 1,100,000 764,442 1,366,415 57,337 65,671 846,707 378,224 

Prepaid trades – – – – – – – 750,000 

Sundry debtors 38,109 – 8,232 – 2,562 – 22,149 31,652 

Call deposits 452,329 794,757 198,566 614,046 143,170 388,751 2,140,044 5,611,751 

Total assets 47,776,220 42,472,236 25,096,986 25,109,908 8,612,713 8,390,895 32,858,486 36,053,456 

Liabilities 

Amounts due on redemptions 892,783 9,497 658,594 903,388 43,399 – – – 

Derivatives 11 – – – – – – – – 

Accruals 73,947 66,349 34,854 44,661 13,438 16,934 37,690 34,057 

Total liabilities (excluding net assets 

attributable to Shareholders) 966,730 75,846 693,448 948,049 56,837 16,934 37,690 34,057 

Net assets attributable to Shareholders 12 46,809,490 42,396,390 24,403,538 24,161,859 8,555,876 8,373,961 32,820,796 36,019,399 

Net asset value per share 10.28 8.91 8.42 7.56 10.83 9.41 10.06 9.40 

The financial statements on pages 8 to 47 were approved by the board of Standard Bank Strategist Funds Limited on 18 March 2011 and signed on its behalf by: 

M Logan 

Director 

H Taylor 

Director 

The notes on pages 12 to 47 form an integral part of these financial statements. 

10





15,506,259 22,208,432 5,673,247 4,949,806 20,765,082 19,102,774 10,768,721 14,391,447 4,245,453 4,538,890 144,391,571 140,427,266 

– – – – 161,420 23,999 – – 48,831 17,286 203,871 39,472 

– – – – – – – – 2,877 – 210,381 367,962 

1,239,660 500,195 278,012 111,590 4,647 – – – – – 3,155,302 2,769,302 

– 750,000 – – – – – – – – – 1,205,000 

9,241 9,373 7,370 4,897 – 1,374 2,375 – 998 – 82,174 43,096 

432,897 4,059,936 1,331,603 1,031,116 1,172,588 2,403,955 1,503,899 2,091,265 713,755 746,916 7,003,169 14,854,211 

17,188,057 27,527,936 7,290,232 6,097,409 22,103,737 21,532,102 12,274,995 16,482,712 5,011,914 5,303,092 155,046,468 159,706,309 

– – – – 50,404 202,350 445,396 650,750 – 190,950 1,671,428 1,325,612 

39,725 – – – – – – – – – 24,847 – 

20,697 30,040 7,968 9,961 36,729 33,374 20,209 28,807 7,767 11,892 221,113 231,293 

60,422 30,040 7,968 9,961 87,133 235,724 465,605 679,557 7,767 202,842 1,917,388 1,556,905 

17,127,635 27,497,896 7,282,264 6,087,448 22,016,604 21,296,378 11,809,390 15,803,155 5,004,147 5,100,250 153,129,080 158,149,404 

9.37 8.81 9.49 8.97 9.65 9.53 9.54 9.45 9.46 9.42 

11



Notes to the financial statements 

12 

1. Incorporation 

The Company was incorporated in Jersey, Channel Islands on 24 September 1999. 

2. Accounting policies 

The principal accounting policies applied in the presentation of these financial 

statements are set out below. These policies have been consistently applied to all 

periods presented. The financial statements have been prepared on a going concern 

basis under the historical cost convention as modified by the measurement at fair 

value of trading financial assets and derivative financial instruments in accordance 

with United Kingdom Accounting Standards. A summary of the more important 

accounting policies are set out below. 

a. Basis of Accounting 

The financial statements have been prepared in accordance with United Kingdom 

Accounting Standards and the Statement of Recommended Practice for Authorised 

Funds (“SORP”) issued by the Investment Management Association in December 

2008 which superseded an earlier SORP issued in December 2005. The new 

SORP became effective for annual periods beginning on or after 1 January 2009. 

The adoption of the new SORP has not resulted in any effect on any Class Fund’s 

performance. The principal changes to the financial statements as a result of the 

adoption of the new SORP are as follows, all of which relate to presentation and 

disclosure: 

• the Portfolio Statement is no longer required as a Primary Statement. 

Accordingly, this has been presented as part of the notes to the financial 

statements; 

• presentation of the Summary of Material Portfolio Changes is no longer 

required and therefore has not been presented in these financial statements; 

• a new requirement to present a Total Expense Ratio and a Portfolio Turnover 

Ratio; 

• enhanced disclosures regarding financial risk management; and 

• some items in the Statement of Total Return for the prior year have been 

reclassified to clearly distinguish capital items from revenue items. This 

particularly relates to foreign exchange gains/losses. Currency gains/losses on 

forward positions are shown as part of the Net capital gains/(losses) in note 3. 

In October 2010 the IMA issued an amended SORP which becomes effective for all 

periods beginning on or after 1 January 2010. The Company has not early adopted 

the amended SORP. The amended SORP has been issued to ensure that the 

requirements remain current and brings the following relevant major amendments: 

Puttable instruments - debt or equity 

FRS 25 sets out the criteria which puttable instruments would need to meet in order 

to be classified as equity. Shares in multi-class funds generally fail the criteria as 

they do not have identical features. Income shares also typically fail the equity test 

as there is an obligation to pay cash dividends. The SORP therefore concludes 

that in most cases units or shares in an authorised fund will continue to be shown 

as liabilities. The exception to this is a stand-alone fund or a sole sub-fund of an 

umbrella scheme which only has accumulation units in issue. In such circumstances 

the units are likely to be equity. 

The adoption of the amended SORP is not expected to have a material impact on 

the classification of the Company’s participating shares as these are not the most 

subordinated class in the Company. 

Portfolio Turnover Rate (PTR) 

Disclosure of PTR will no longer be required. 

Post Balance Sheet events 

The requirement to disclose significant non-adjusting post Balance Sheet events 

has been modified to align with the requirements of FRS 21. The adoption of the 

amended SORP is not expected to have a material impact on the Class Funds as the 

Class Funds have always disclosed post Balance Sheet events in line with FRS 21. 

b. Presentation of accounts 

Each share that the Company issues is allocated to a class representing a particular 

Class Fund. The Company maintains a separate account for each Class Fund, to 

which those proceeds are credited, and against which the expenses allocated are 

charged. Upon redemption, Shareholders are entitled only to their proportion of the 

net assets held in the account relating to the Class Fund in which their shares are 

designated. An aggregate Statement of Total Return and Balance Sheet has been 

prepared for the Company. 

c. Investments 

i. Equity investments are recognised at cost on the date on which the Company 

becomes party to the contractual provisions of the securities. 

ii. Subsequent to initial recognition, all investments are valued at bid-market prices 

and the resulting surplus or deficit is recognised in the Statement of Total Return. 

Investments in these financial statements have been valued at bid-market prices on 

29 October 2010 being the last trading day in the year. Single-priced investments 

are valued at net asset value or traded price at the Balance Sheet date. 

iii. On disposal, average purchase cost is set against the proceeds of sale and 

the resulting surplus or deficit is recognised in the Statement of Total Return.



Notes to the financial statements (continued) 

2. Accounting policies (continued) 

d. Income 

Dividend income, including stock dividends, is accounted for on the ex-dividend 

date gross of withholding tax deducted at source. Withholding tax is reported as 

taxation expense in the period in which it is incurred. Interest on deposit accounts 

is included on an accruals basis. 

e. Currency translation 

Transactions in foreign currencies are translated to the currency of denomination of 

the Class Fund, at the rates of exchange ruling on the dates of such transactions. 

Monetary foreign currency assets and liabilities are retranslated at the rates of 

exchange ruling at the Balance Sheet date. Surpluses and deficits arising on 

retranslation are credited or charged to the Statement of Total Return. 

f. Share issues and redemptions 

Shares in the Company may be issued at the issue price and redeemed at the 

redemption price on subscription days at the prices calculated in accordance with 

the Articles of Association and based on the value of the underlying net assets held. 

Participating shares are classified as financial liabilities in the financial statements as 

these are not the most subordinated class in the Company. 

g. Expenses 

The Company is responsible for the payment of management fees and custodian 

fees, which are accrued at every valuation point, and the payment of other expenses 

as detailed in the Company’s Prospectus. 

The annual management fee payable is 1.5% for the Global Equity and Alternative 

Equity Classes and 0.85% for the Alternative Strategies Classes, calculated on the 

net asset value of the Company as at each subscription day. 

• The Company prepares a Statement of Changes in Shareholders’ Net Assets 

i. Basis of aggregation 

The aggregation of the financial statements of each Class Fund has been prepared 

using exchange rates as at 29 October 2010 for all Balance Sheet items and annual 

average exchange rates for the Statements of Total Return with currency gains/ 

(losses) on aggregation included in currency reserve in Statement of Changes in 

Shareholders’ Net Assets. 

j. Total Expense Ratio 

The Total Expense Ratio (“TER”) is calculated and disclosed as per the guidelines 

issued by the Investment Management Association (“IMA”). The ratio expresses 

the sum of all costs charged on an ongoing basis to the each Class Fund’s 

assets (operating expenses) taken retrospectively as a percentage of the Class 

Fund’s average net assets. Operating expenses exclude transaction costs and 

commissions in connection with transactions on the Class Fund’s portfolio and 

foreign exchange loss. 

k. Portfolio Turnover Rate 

The Portfolio Turnover Rate (“PTR”) is calculated and disclosed as per the guidelines 

issued by the Investment Management Association (“IMA”). The ratio expresses the 

movement in creations and liquidations of units in relation to purchases and sales 

of investments, as a percentage of each Class Fund’s net asset value. 

The PTR is calculated using the formula below: 

(Purchase of securities + sales of securities) – (subscription of units + redemption of units) 

Average net asset value of the Class Fund 

The management fee is subject to a minimum of £25,000 per Class for the 

Alternative Strategies and Alternative Equity Classes. 

The custodian fee payable for the Global Equity Classes is 0.05%, subject to a 

minimum of £2,500 per Class per annum and the sub-custodian fee payable is 

0.07%. The custodian fee payable is 0.15% for the Alternative Strategies and 

Alternative Equity Classes, subject to a minimum of £2,500 per Class per annum. 

Fees are calculated on the net asset value of the Company as at each subscription 

day. 

h. Cash flow statements 

The Company is exempt from preparing a cash flow statement as it meets the 

following exemption criteria in FRS 1 “Cash Flow Statements”: 

• Substantially all of the Company’s investments are highly liquid; 

• The investments are measured and reported at fair value; and 

13




3. Net capital gains/(losses) 





Non derivative securities: 

Net realised gains/(losses) on investments 1,974,562 (3,549,074) 39,600 (2,877,437) 87,899 (977,080) 494,938 (3,219,619) 

Net movement in unrealised 

investment reserves 5,312,129 12,610,086 2,993,839 8,404,826 1,322,437 1,907,505 1,623,151 6,684,732 

7,286,691 9,061,012 3,033,439 5,527,389 1,410,336 930,425 2,118,089 3,465,113 

Derivatives: 

Net realised gains/(losses) on forward 

exchange contracts – – – – – – – 354,636 

Net unrealised gains/(losses) on forward 

exchange contracts – – – – – – – (582,230) 

– – – – – – – (227,595) 

7,286,691 9,061,012 3,033,439 5,527,389 1,410,336 930,425 2,118,089 3,237,519 

4. Revenue 





Revenue comprises: 

Dividend income 81,862 305,766 25,637 78,976 17,197 20,847 391,339 111,299 

Interest income 1,337 13,900 – 4,553 – 2,783 4,979 40,690 

Foreign exchange gains – – 6,297 425 1,152 161 331,089 – 

Other income – – – – 2,562 – 9,705 6,221 

83,199 319,666 31,934 83,954 20,911 23,791 737,112 158,210 

14





756,478 (3,940,933) 64,856 (1,490,053) 254,183 (401,275) 110,597 (298,149) (2,896) (111,506) 3,421,061 (13,795,474) 

597,034 6,282,255 295,457 1,641,446 635,791 1,365,059 257,701 (1,176,433) 181,416 190,692 11,542,471 32,203,710 

1,353,512 2,341,322 360,313 151,393 889,974 963,784 368,298 (1,474,582) 178,520 79,186 14,963,532 18,408,236 

122,278 143,160 – – (357,099) 412,547 – – (85,551) 59,474 (354,992) 907,268 

(39,725) – – – 161,420 23,999 – – 48,831 17,286 179,025 (542,758) 

82,553 143,160 – – (195,679) 436,546 – – (36,720) 76,760 (175,967) 364,510 

1,436,065 2,484,482 360,313 151,393 694,295 1,400,330 368,298 (1,474,582) 141,800 155,946 14,787,565 18,772,746 





61,210 23,881 43,321 20,060 – 50,042 – 35,261 – 5,400 580,132 592,348 

173 4,495 33 8,709 3,838 22,773 1,525 3,748 – 8,527 11,245 103,045 

102,338 – 44,275 – – – – – – 8,465 438,529 7,979 

– 3,128 – 5,440 10,430 1,072 – – 652 – 22,929 14,060 

163,721 31,504 87,629 34,209 14,268 73,887 1,525 39,009 652 22,392 1,052,835 717,432 

15




5. Expenses 





Expenses comprises: 

Management fee 692,417 591,358 378,775 332,096 134,346 81,562 304,865 290,643 

Custodian fee 55,393 47,309 30,302 26,568 10,748 8,514 53,800 51,290 

Audit fee 12,677 4,092 2,046 6,728 2,633 5,002 9,865 4,444 

Foreign exchange loss 341 1,298 – – – – – – 

Sundry expenses 18,299 31,457 14,201 14,096 7,244 4,990 5,397 – 

779,127 675,514 425,324 379,488 154,971 100,068 373,927 346,377 

6. Investment purchases, sales and commissions 





Purchases in period before transaction costs 21,945,776 8,990,266 16,558,764 5,697,337 4,582,516 3,560,316 20,810,913 28,235,165 

Commissions – – – – – – 9,004 9 

Gross purchases total 21,945,776 8,990,266 16,558,764 5,697,337 4,582,516 3,560,316 20,819,917 28,235,174 

Sales in period gross of transaction costs 23,157,569 14,259,032 18,538,348 8,555,949 5,520,423 2,793,350 22,394,640 32,579,966 

Commissions – – – – – – (23) (806) 

Net sales total 23,157,569 14,259,032 18,538,348 8,555,949 5,520,423 2,793,350 22,394,617 32,579,160 

16








187,994 204,481 56,330 47,919 324,112 282,762 200,153 209,053 74,309 63,406 2,031,446 1,789,766 

33,175 36,085 9,941 8,456 32,411 28,276 20,015 20,905 7,431 6,682 218,272 198,738 

6,198 7,326 1,953 4,965 5,881 2,280 3,678 7,326 1,357 4,965 41,046 37,152 

– 177,979 – 21,247 67,774 287,696 – – 15,051 – 81,200 415,986 

9,141 2,413 5,777 – 5,961 1,802 12,492 5,271 7,132 4,156 69,590 54,659 

236,508 428,284 74,001 82,587 436,139 602,816 236,338 242,555 105,280 79,209 2,441,554 2,496,301 





12,396,320 20,289,290 4,017,378 4,012,026 10,283,337 10,831,835 5,549,155 9,076,601 2,225,532 2,533,080 84,032,484 78,374,371 

3,041 2,084 – – – – – 15,384 – 3 10,906 10,609 

12,399,361 20,291,374 4,017,378 4,012,026 10,283,337 10,831,835 5,549,155 9,091,985 2,225,532 2,533,083 84,043,390 78,384,980 

20,455,337 22,806,682 3,654,403 7,547,881 9,515,375 2,633,079 9,545,330 1,735,386 2,697,766 454,284 95,748,718 79,214,657 

– (840) – – (4,373) (34,339) (5,152) (446) (410) (450) (7,975) (36,328) 

20,455,337 22,805,842 3,654,403 7,547,881 9,511,002 2,598,740 9,540,178 1,734,940 2,697,356 453,834 95,740,743 79,178,329 

17




7. Income Tax 

The taxation charge in the Statement of Total Return relates to the withholding tax 

deducted at source on overseas dividends received. 

Profits arising in the Company for the 2009 year of assessment and 2010 year of 

assessment will be subject to Jersey Income Tax at the rate of 0%. 

8. Share capital 

a. The authorised share capital of the Company is £500,000 divided into 100 

management shares of £1.00 each and 49,990,000 unclassified shares of £0.01 

each. 

Management shares have been issued at par as follows: 

No. of shares 

Manager 99 

Standard Bank Nominees (Offshore) Limited 1 

b. Management shares 

The management shares have been issued at par and the proceeds of the issue are 

represented by a separate management fund. Details of the management fund at 

the Balance Sheet date are as follows:- 

2010 2009 

£ £ 

Current account 100 100 

Management shares of £1 each 

Authorised, issued and fully paid 100 100 

The management fund is not reflected in the Balance Sheet. 

All participating shares not previously redeemed will be redeemed by the Company 

on the last subscription day in 2099 at their respective redemption prices on each 

subscription day. 

The management shares exist solely to comply with Jersey Law, which requires 

that participating redeemable preference shares (“participating shares”) must 

have preference over another class of capital. The holders of the management 

shares are entitled to receive notice of general meetings of the Company and 

to attend and vote thereat. On a poll a holder of management shares is entitled 

to one vote for each management share held by him. Management shares carry 

no right to a dividend and are not redeemable. On a winding up, they rank only 

for a return of paid up nominal pari passu out of the assets of the Company 

(after the return of nominal capital paid up on participating shares and nominal 

shares). The management shares and cash issue proceeds of the Company are 

not shown in the Balance Sheet on materiality grounds. Management shares are 

regarded as equity. 

Participating shares carry the right to a proportionate share in the assets of the 

relevant Class Fund and to any dividends that may be declared. Holders of the 

shares are entitled to receive notice of all general meetings of the Company and to 

attend and vote thereat. The holder of each share is entitled to one vote for each 

share of which he is a holder. Shares are redeemable by Shareholders at prices 

based on the value of the net assets of the relevant Class Fund as determined in 

accordance with its Articles of Association. 

100 

18




8. Share capital (continued) 

c. Movement of Participating Shares Number of shares Issued during Redeemed during Number of shares 

at 31 October 2009 the year the year at 31 October 2010 

Multi Manager Global Equity (GBP) Class Fund 4,757,702 734,892 (940,714) 4,551,880 

Multi Manager Global Equity (USD) Class Fund 3,193,981 1,086,955 (1,381,056) 2,899,880 

Multi Manager Global Equity (EUR) Class Fund 890,174 190,284 (290,576) 789,882 

Multi Manager Alternative Strategies (GBP) Class Fund 3,832,683 351,228 (922,575) 3,261,336 

Multi Manager Alternative Strategies (USD) Class Fund 3,119,963 318,948 (1,610,784) 1,828,127 

Multi Manager Alternative Strategies (EUR) Class Fund 678,784 170,042 (80,989) 767,837 

Multi Manager Alternative Equity (GBP) Class Fund 2,234,236 328,821 (281,762) 2,281,295 

Multi Manager Alternative Equity (USD) Class Fund 1,672,735 263,937 (698,268) 1,238,404 

Multi Manager Alternative Equity (EUR) Class Fund 541,578 93,976 (106,649) 528,905 

19




9. Related party transactions 

Standard Bank Fund Managers Jersey Limited (the “Manager” and “Investment 

Adviser”), Standard Bank Jersey Limited (the “Custodian to Alternative Strategies 

Classes and Alternative Equity Classes and sub-custodian to Global Equity 

Classes”) and the directors are considered related parties to the Company. 

The Manager and directors are considered related parties as they make key 

operational decisions for the Company. The Custodian is considered a related 

party as it is under common ownership with the Manager. 

The annual management fee payable is 1.5% for the Global Equity and 

Alternative Equity Classes and 0.85% for the Alternative Strategies Classes, 

calculated on the net asset value of the Class Fund as at each subscription 

day subject to a minimum of £25,000 per annum for Alternative Strategies and 

Alternative Equity Classes. The management fees incurred are as disclosed in 

note 5 with management fees of £56,732 (2009: £53,125) in respect of the Multi 

Manager Global Equity (GBP) Class, US$29,669 (2009: US$31,112) in respect of 

the Multi Manager Global Equity (USD) Class, EUR10,166 (2009: EUR10,353) in 

respect of the Multi Manager Global Equity (EUR) Class, £23,652 (2009: £25,170) 

in respect of the Multi Manager Alternative Strategies (GBP) Class, US$12,354 

(2009: US$19,307) in respect of the Multi Manager Alternative Strategies (USD) 

Class, EUR5,251 (2009: EUR4,246) in respect of the Multi Manager Alternative 

Strategies (EUR) Class, £28,045 (2009: £26,300) in respect of the Multi Manager 

Alternative Equity (GBP) Class, US$15,016 (2009: US$19,528) in respect of the 

Multi Manager Alternative Equity (USD) Class and EUR5,976 (2009: EUR6,308) 

in respect of the Multi Manager Alternative Equity (EUR) Class outstanding at the 

Balance Sheet date. 

The custodian fee payable for the Global Equity Classes is 0.05% and the subcustodian 

fee payable is 0.07%. The custodian fee payable is 0.15% for the 

Alternative Strategies and Alternative Equity Classes. Fees are calculated on the 

net asset value of the Class Fund as at each subscription day. The fee payable 

to the Custodian is subject to a minimum of £2,500 per annum, per Class. Fees 

incurred during the year are disclosed in note 5. The amounts outstanding at 

the Balance Sheet date are £4,539 (2009: £4,250) for the Multi Manager Global 

Equity (GBP) Class, US$2,728 (2009: US$2,489) for the Multi Manager Global 

Equity (USD) Class, EUR816 (2009: EUR828) for the Multi Manager Global Equity 

(EUR) Class, £4,174 (2009: £4,442) for the Multi Manager Alternative Strategies 

(GBP) Class, US$2,180 (2009: US$3,407) for the Multi Manager Alternative 

Strategies (USD) Class, EUR927 (2009: EUR749) for the Multi Manager 

Alternative Strategies (EUR) Class, £2,805 (2009: £2,630) for the Multi Manager 

Alternative Equity (GBP) Class,US$1,506 (2009: US$1,953) for the Multi Manager 

Alternative Equity (USD) Class and EUR598 (2009: EUR631) in respect of the Multi 

Manager Alternative Equity (EUR) Class. 

Fees paid to the directors are u10,000 per director per annum. M. Logan is also 

an employee of Standard Bank Jersey Limited which has the same immediate and 

ultimate parent as the Manager and Investment Adviser. F. Stewart is an employee 

of Standard Bank Plc which has the same ultimate parent as the Manager and 

Investment Adviser. 

There is no ultimate controlling party for the Company as there is no one party that 

has the ability to direct the financial and operating policies of the Company with a 

view to gaining economic benefit from its activities. 

All transactions with related parties are at arms length. 

10. Financial risk management 

The main risks arising from the Company’s financial instruments are: 

a. Market risk 

Market risk is a risk that the fair value of, or future cash flows arising from financial 

instruments will fluctuate because of the changes in market variables. Market risk 

comprises three types of risks: market price risk, interest rate risk and currency risk. 

(i) Market price risk 

Market price risk arises mainly from uncertainty about future prices of equity 

and equity-linked financial instruments. It represents the potential loss that the 

Company may suffer due to movements in securities prices. The Company’s 

exposure to market price arises from its equity investments with a maximum 

exposure at the year end represented by the carrying value of investments. The 

exposure levels are in line with the Company’s investment objectives and market 

price risk is managed through prescribed investments restrictions, which include 

(generally): 

Global Equity Class Funds 

• Not more than 10% of the net asset value of each Class Fund may be invested 

in collective investment schemes which are not open-ended collective schemes; 

• The assets of each Class Fund shall be invested in at least five collective 

investment schemes, and not more than 20% of the net asset value of each 

Class Fund may be invested in any one collective investment scheme; and 

20




10. Financial risk management (continued) 

a. Market risk (continued) 

(i) Market price risk (continued) 

Global Equity Class Funds (continued) 

• Not more than 5% of the net asset value of each Class Fund shall be invested 

in any one real property fund. 

Alternative Strategies Class Funds 


in any single multi-manager hedge fund of funds; 


in any single manager fund; and 


in any single fund management group. 

Alternative Equity Class Funds 

• Not more than 10% of the net asset value of the each Class Fund shall be 

invested in any single multi-manager hedge fund of funds; 

• Not more than 7.5% of the net asset value of each Class Fund shall be invested 

in any single manager fund; and 

• Not more than 15% of the net asset value of each Class fund shall be invested 

in any single fund management group. 

Each Class Funds investment portfolio complies with the investment parameters as 

disclosed in its prospectus. The spread of investments between various economic 

and geographic sectors is disclosed in note 14. 

(ii) Foreign currency risk 

Currency risk is the risk that the fair value of, or future cash flows from, financial 

instruments will fluctuate because of changes in foreign exchange rates. 

The Company’s principal exposure to foreign currency risk comprises its 

investments priced in currencies other than the base currency of the particular 

Class Fund, including cash balances in foreign currencies. 

Foreign currency risk is managed through geographic investment restrictions and 

in some Class Funds, through use of Forward Currency Contracts. 

The investment restrictions for the Alternative Strategies Class Funds also require 

that at least 80% of any exchange rate risk is hedged back to the base currency of 

the Class Fund. The investment restrictions for the Alternative Equity Class Funds 

limit foreign currency exposure to 20% of the net asset value of each Class Fund. 

21






ii) Foreign currency risk (continued) 

The currency exposure of the Company at 31 October 2010 was as follows:- 

Multi Manager Global Equity (GBP) Class 

2010 2010 2009 2009 

Investments Cash Other net assets Net assets % of exposure Net assets % of exposure 

£ £ £ £ % £ % 

EUR 2,391,352 – – 2,391,352 5.11 1,556,259 3.67 

GBP 37,573,210 452,329 30,283 38,055,822 81.30 36,940,366 87.13 

USD 6,362,316 – – 6,362,316 13.59 3,265,735 7.70 

CAD – – – – – 634,030 1.50 

46,326,878 452,329 30,283 46,809,490 100.00 42,396,390 100.00 

Multi Manager Global Equity (USD) Class 



US$ US$ US$ US$ % US$ % 

CAD 1,164,655 – – 1,164,655 4.77 1,310,937 5.43 

EUR 2,819,080 – – 2,819,080 11.55 1,770,680 7.33 

GBP 11,970,070 – 4,576 11,974,646 49.07 16,381,871 67.80 

USD 8,159,338 198,566 87,253 8,445,157 34.61 4,698,371 19.44 

24,113,143 198,566 91,829 24,403,538 100.00 24,161,859 100.00 

Multi Manager Global Equity (EUR) Class 



EUR EUR EUR EUR % EUR % 

EUR 2,117,729 143,170 1,885 2,262,784 26.45 2,291,281 27.36 

GBP 4,683,100 – 1,177 4,684,277 54.75 4,938,728 58.98 

USD 1,270,045 – – 1,270,045 14.84 799,277 9.54 

CAD 338,770 – – 338,770 3.96 344,675 4.12 

8,409,644 143,170 3,062 8,555,876 100.00 8,373,961 100.00 

22







The currency exposure of the Standard Bank Strategist Funds Limited at 31 October 2010 was as follows:- 

Multi Manager Alternative Strategies (GBP) Class 



£ £ £ £ % £ % 

EUR 50,336 11,036 – 61,372 0.19 386,128 1.07 

GBP 26,224,745 1,471,896 831,166 28,527,807 86.92 30,744,881 85.36 

USD 3,574,505 657,112 – 4,231,617 12.89 3,859,314 10.72 

CAD – – – – – 1,029,076 2.85 

29,849,586 2,140,044 831,166 32,820,796 100.00 36,019,399 100.00 

Multi Manager Alternative Strategies (USD) Class 




EUR – – – – – 60 – 

GBP 1,487,789 7,718 (6,162) 1,489,345 8.70 1,409,769 5.13 

AUD – – – – – 648 – 

CAD – – – – – 1,236,841 4.50 

USD 14,018,470 425,179 1,194,641 15,638,290 91.30 24,850,578 90.37 

15,506,259 432,897 1,188,479 17,127,635 100.00 27,497,896 100.00 

Multi Manager Alternative Strategies (EUR) Class 




EUR 4,457,082 1,209,927 – 5,667,009 77.82 4,961,294 81.50 

GBP 666,341 5,619 (1,790) 670,170 9.20 432,307 7.10 

CAD – – – – – 235,730 3.87 

USD 549,824 116,057 279,204 945,085 12.98 458,117 7.53 

5,673,247 1,331,603 277,414 7,282,264 100.00 6,087,448 100.00 

23







Multi Manager Alternative Equity (GBP) Class 



£ £ £ £ % £ % 

GBP 16,473,609 823,946 78,934 17,376,489 78.92 16,239,562 76.26 

USD 4,291,473 348,642 – 4,640,115 21.08 5,056,816 23.74 

20,765,082 1,172,588 78,934 22,016,604 100.00 21,296,378 100.00 

Multi Manager Alternative Equity (USD) Class 


Investments Cash Other net liabilities Net assets % of exposure Net assets % of exposure 


GBP – – (3,642) (3,642) (0.03) (7,326) (0.05) 

USD 10,768,721 1,503,899 (459,588) 11,813,032 100.03 15,810,481 100.05 

10,768,721 1,503,899 (463,230) 11,809,390 100.00 15,803,155 100.00 

Multi Manager Alternative Equity (EUR) Class 


Investments Cash Other net liabilities Total assets % of exposure Net assets % of exposure 


GBP – – (1,193) (1,193) (0.03) (4,965) (0.09) 

USD 604,448 415 – 604,863 12.09 626,972 12.29 

EUR 3,641,005 713,340 46,132 4,400,477 87.94 4,478,243 87.80 

4,245,453 713,755 44,939 5,004,147 100.00 5,100,250 100.00 

24






(iii) Interest rate risk 

Interest rate risk is the risk that cash flows arising from financial instruments or the 

fair value of financial instruments will be effected by movements in interest rates. 

The Company’s exposure to interest rate risk is limited to that arising from cash 

at bank. Interest rate risk is considered insignificant and therefore not actively 

managed. 

b. Credit risk 

Credit risk is the risk that the counter parties to the Company will be unable or 

unwilling to meet their obligations under the contractual or agreed terms. 

There is no material mismatch between the notice period required to be given by 

the Company to redeem its investments and the dealing period in the Company’s 

Class Funds. 

d. Derivative financial instruments 

The Company trades in derivative financial instruments in order to reduce the risks 

arising from the fluctuations in exchange rates. The Company’s open positions 

are shown in the portfolio statement and gains and losses arising from derivatives 

dealing are disclosed in note 11. No detailed disclosures are considered necessary 

due to the insignificance of the derivatives. 

The investment restrictions also limit the value of the Company’s interest in money 

market securities to 49% of the net asset value and 25% for bank deposits. 

The Company’s maximum exposure to credit risk is represented by the carrying 

value of cash and debtors. 

Cash and debtors are considered “Not Rated” and the credit risk associated with 

these items is considered insignificant. 

The Class Funds are not exposed to credit risk from the Custodian as each 

Custodian maintains all assets of the Class Funds in a segregated account, which 

are designated as client assets and are not co-mingled with any proprietary assets 

of Standard Bank Jersey Limited and Capita Trust Company (Jersey) Limited. 

c. Liquidity risk 

Liquidity risk is the risk that the Company may encounter difficulty in meeting 

obligations associated with financial liabilities that are settled by delivering cash 

or another financial asset. It relates to mismatch between the maturity profile of 

financial assets and financial liabilities. 

Shareholders have the right to redeem their shares in the Company in accordance 

with the procedures detailed in its Prospectus. In order to meet its obligations the 

Company may be required to sell investments held in a particular Class Fund. 

The risk is that the Company might not be able to fully repay amounts demanded 

by its Shareholders. The policy of the Company is to ensure that the investments of 

the Company are liquid and readily tradeable. 

The prospectus also allows the Manager to limit redemptions in any Class Fund to 

one eighth of the participating shares in issue. 

25




11. Derivative financial instruments 

The Class Funds listed below had open forward exchange contract positions at 31 October 2010 as follows: 

Multi Manager Alternative Equity (GBP) Class: 

Sell Buy Rate Deal date Maturity date Market value – GBP 

USD 6,850,000 GBP 4,448,341 1.5399 01-Sep-10 07-Jan-11 161,420 

Multi Manager Alternative Equity (EUR) Class: 

Sell Buy Rate Deal date Maturity date Market value – EUR 

USD 800,000 EUR 624,951 1.2801 01-Sep-10 07-Jan-11 48,831 


Sell Buy Rate Deal date Maturity date Market value – USD 

GBP 850,000 USD 1,318,690 1.5514 29-Sep-10 21 Dec-10 (39,725) 

Gains or losses for the year are disclosed in the Statements of Total Return. 

The Class Funds listed below had open forward exchange contract positions at 31 October 2009 as follows: 

Multi Manager Alternative Equity (GBP) Class: 

Sell Buy Rate Deal date Maturity date Market value - GBP 

USD 8,000,000 GBP 4,878,079 1.6399 25-Aug-09 25-Nov-09 23,999 

Multi Manager Alternative Equity (EUR) Class: 

Sell Buy Rate Deal date Maturity date Market value – EUR 

USD 900,000 EUR 627,307 1.4347 25-Aug-09 25-Nov-09 17,286 

The Class Funds use forward foreign exchange contracts to hedge any movements in foreign currency rates, mainly as a result of their trading activities. The Class Funds do not 

enter into significant cash flow hedges. 

Gains and losses on forward foreign exchange contracts are separately reported in the Statements of Total Return. 

Given the limited use of derivatives, no sensitivity analyses have been provided. 

26




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27




12. Reconciliation of net asset value (unaudited) 




Note£ £ US$ US$ EUR EUR £ £ 

Net asset value per Financial Statements 46,809,490 42,396,390 24,403,538 24,161,859 8,555,876 8,373,961 32,820,796 36,019,399 

Valuation timing differences 1 511,008 (545,252) 101,545 (157,282) 37,196 (84,317) (58,263) (15,532) 

Net (creations)/redemptions included in 

approved valuation after Balance Sheet date 2 (199,997) (289,995) – (39,999) – (53,385) – – 

(Under)/over accrued income in approved 

valuation (21,583) – – 9,608 – – (6,982) (3,869) 

Under/(over) accrued expenses in approved 

valuation 7,689 8,420 292 (7,064) (2,562) 5,681 6,204 (2,044) 

General expenses account 3 (16,464) (8,572) (8,231) 1,922 (1,491) – – 

Other adjustments (105) – – – 2 (141) – – 

Net asset value per approved valuation 47,090,038 41,560,991 24,497,144 23,967,122 8,592,434 8,240,308 32,761,755 35,997,954 

Net asset value per share per approved 

valuation 10.39 8.80 8.45 7.52 10.88 9.32 10.05 9.39 

1 

Bid price dates per reported valuation were as of 28 October 2010 whereas the prices used in the Financial Statements were as of 29 October 2010. 

2 

Creations and redemptions that occurred on the last business day of the accounting period are not included in the mid-valuation (approved valuation) but are reflected at the next 

valuation point. For accounting purposes, these creations and redemptions affect the accounting period and have been taken into account in the above financial statements. 

3 

This relates to prepaid expenses through the Class Funds’ general expense account. 

13. Total Expense Ratio and Portfolio Turnover Rate 

The following statistics required by the SORP have been calculated as detailed in note 2j and 2k. 




Note£ £ US$ US$ EUR EUR £ £ 

Total Expense Ratio 1.68% 1.56% 1.65% 1.71% 1.73% 1.43% 1.05% 0.97% 

28 

Portfolio Turnover Rate 63% 12% 63% (3%) 58% 27% 87% 148%




Multi Manager Alternative Multi Manager Alternative Multi Manager Alternative Multi Manager Alternative Multi Manager Alternative 


2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 

US$ US$ EUR EUR £ £ US$ US$ EUR EUR 

17,127,635 27,497,896 7,282,264 6,087,448 22,016,604 21,296,378 11,809,390 15,803,155 5,004,147 5,100,250 

(6,625) 125,689 4,977 (5,283) (5,999) 7,976 – 7,640 7,318 3,467 

– – – – – – – – (2,877) – 

– (3,237) – (88) – – – – – – 

(7,632) (8,342) (13,684) (10,162) 1,706 (2,567) (4,037) 4,183 (1,608) 3,957 

– – – – – – – – – – 

(143) – 127 439 (114) – – – – (370) 

17,113,235 27,612,006 7,273,684 6,072,354 22,012,197 21,301,787 11,805,353 15,814,978 5,006,980 5,107,304 

9.36 8.85 9.47 8.95 9.65 9.53 9.53 9.45 

Multi Manager Alternative Multi Manager Alternative Multi Manager Alternative Multi Manager Alternative Multi Manager Alternative 


2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 

US$ US$ EUR EUR £ £ US$ US$ EUR EUR 

1.07% 1.03% 1.12% 0.99% 1.71% 1.67% 1.78% 1.74% 1.82% 1.78% 

70% 118% 81% 102% 65% 13% 45% 9% 61% 13% 

29




14. Portfolio statement – Multi Manager Global Equity (GBP) Class 


Nominal holding Book cost Market value % of net assets 

£ £ 

Emerging Markets 3.97% (2009 5.24%) 

Aberdeen Emerging Markets Fund 122,874 510,613 653,161 1.40% 

Aberdeen Emerging Markets Small Companies 54,252 492,840 563,289 1.20% 

First State Global Emerging Market 186,082 357,085 646,262 1.37% 

1,360,538 1,862,712 3.97% 

Europe 11.85% (2009 9.08%) 

BlackRock Continental European Fund 100,991 773,919 994,736 2.13% 

BlackRock Gold & General Income Fund 89,138 1,075,000 1,331,716 2.84% 

Cazenove Capital Management 426,494 793,679 854,636 1.83% 

Henderson European Fund 253,431 506,245 541,981 1.16% 

Ignis European Alpha Fund 571,847 846,506 935,314 2.00% 

Neptune European Opportunities B Acc Fund 248,304 861,497 891,410 1.89% 

4,856,846 5,549,793 11.85% 

Far East 3.84% (2009 4.05%) 

Aberdeen Asia Pacific Fund 375,989 543,628 686,235 1.47% 

Aberdeen Global Asia Small Companies 25,486 509,383 582,320 1.24% 

M&G Asian Accumulation Fund 42,276 518,948 528,090 1.13% 

1,571,959 1,796,645 3.84% 

Japan 6.89% (2009 6.07%) 

GLG Japan Core Alpha 1,703,457 1,434,409 1,425,623 3.05% 

JO Hambro Capital Management Umbrella Fund 1,055,904 1,278,935 1,350,501 2.89% 

Martin Currie Japan Alpha B Fund 525,984 500,000 449,558 0.95% 

3,213,344 3,225,682 6.89% 

30 

United Kingdom 45.41% (2009 42.19%) 

Framlington UK Growth Fund 899,171 1,481,296 1,583,440 3.38% 

Framlington UK Select Opportunities Fund 112,176 1,268,655 2,161,638 4.62% 

GLG Partners Investment Fund 1,590,909 1,750,000 2,125,455 4.54% 

Invesco Perpetual Income Fund 2,344,466 1,960,276 2,282,806 4.88% 

L&G UK Alpha Fund 1,566,907 1,500,000 1,770,605 3.78% 

M&G Securities Recovery Fund 873,463 1,779,418 2,102,425 4.49% 

Old Mutual UK Select Small Companies Fund 563,830 1,411,142 2,429,431 5.19%




14. Portfolio statement – Multi Manager Global Equity (GBP) Class (continued) 


£ £ 

United Kingdom 45.41% (2009 42.19%) (continued) 

Old Mutual Fund - UK Select 1,554,901 1,460,417 2,325,665 4.97% 

R&M UK Equity Income B Fund 310,470 1,022,305 1,121,822 2.40% 

Schroder UK Alpha Plus Fund 1,726,432 1,749,244 2,063,086 4.41% 

Standard Life UK Equity Unconstrained Fund 1,116,321 1,000,000 1,292,699 2.75% 

16,382,753 21,259,072 45.41% 

United States 27.02% (2009 28.31%) 

Baillie Gifford American B Fund 1,087,717 1,716,709 2,080,804 4.48% 

Brown Investment Advisory Income American B Fund 242,971 1,246,073 1,442,203 3.08% 

M&G Securities America Fund 195,123 1,830,839 1,983,225 4.24% 

Martin Currie North American Alpha Fund B 1,805,715 1,814,024 1,903,223 4.07% 

Neptune US Opportunities B Acc Fund 932,157 1,630,522 1,977,105 4.22% 

Schroder International Selection US Small Companies 52,729 2,336,046 2,568,837 5.49% 

UBS Equity Fund Mid Caps USA 1,247 761,886 677,577 1.44% 

11,336,099 12,632,974 27.02% 

Portfolio of investments 38,721,539 46,326,878 98.98% 

Net current assets 482,612 1.02% 

Net assets 46,809,490 100.00% 

31




14. Portfolio statement – Multi Manager Global Equity (USD) Class 



US$ 

US$ 



Aberdeen Emerging Markets Small Companies 40,784 527,969 677,010 2.77% 

First State Global Emerging Market 101,233 311,791 562,111 2.30% 

1,285,128 1,799,015 7.36% 

Europe 25.04% (2009 18.08%) 

BlackRock Continental European Fund 46,061 521,098 727,288 2.98% 

BlackRock Gold & General Income Fund 30,929 628,766 738,764 3.03% 

Cazenove Capital Management 214,281 765,719 686,492 2.81% 




Polar Capital Global Technology Fund 76,805 1,000,000 1,109,063 4.54% 

Schroder European Alpha Plus Acc Fund 396,872 666,062 713,197 2.92% 

5,657,335 6,113,246 25.04% 

Far East 7.12% (2009 6.60%) 


Aberdeen Global Asia Small Companies 15,085 450,000 551,053 2.26% 

M&G Asian Acc Fund 25,184 450,000 502,970 2.06% 

1,448,811 1,737,097 7.12% 

Japan 9.86% (2009 9.69%) 

GLG Japan Core Alpha 701,198 955,048 938,226 3.84% 

JO Hambro Capital Management Umbrella Fund 258,872 571,651 529,358 2.17% 


2,506,650 2,408,106 9.86% 


GLG Partners Investment Fund 318,182 580,930 679,634 2.78% 

M&G Securities Recovery Fund 179,322 552,178 690,087 2.83% 

Standard Life UK Equity Unconstrained Fund 338,245 505,798 626,231 2.57% 

32 

1,638,906 1,995,952 8.18%




14. Portfolio statement – Multi Manager Global Equity (USD) Class (continued) 


US$ 

US$ 

United States 41.22% (2009 40.12%) 

Brown Investment Advisory Income American B Fund 142,636 1,198,024 1,352,191 5.54% 

Jupiter North American Income Fund 925,451 627,730 875,928 3.59% 

M&G Securities American Fund 56,038 968,237 910,624 3.73% 

Martin Currie North American Alpha Fund B 524,023 1,091,363 883,048 3.62% 

Neptune US Opportunities B Acc Fund 267,242 909,925 906,231 3.71% 

Schroder International Selection Fund US Small & Mid Cap Equity 18,933 1,457,507 1,474,703 6.03% 

Schroder International Selection US Small Companies 9,833 1,422,846 1,452,308 5.95% 

UBS Equity Fund Management Company 1,581 1,280,606 1,164,655 4.78% 

UBS Equity Fund Mid Caps USA 1,197 1,010,350 1,040,040 4.27% 

9,966,588 10,059,728 41.22% 



Net asset 24,403,538 100.00% 

33




14. Portfolio statement – Multi Manager Global Equity (EUR) Class 



EUR 

EUR 



First State Global Emerging Markets 39,647 86,919 158,390 1.85% 

224,071 334,802 3.91% 

Europe 49.19% (2009 49.31%) 

BlackRock Global Fund Continental European Flexible Fund 70,755 499,988 801,659 9.37% 

BlackRock Gold & General Income Fund 16,667 226,683 286,424 3.35% 

Cazenove Capital Management Fund 244,697 600,644 564,028 6.59% 




Schroder European Alpha Plus Fund 375,822 451,029 485,913 5.68% 

3,646,068 4,210,619 49.19% 

Far East 3.59% (2009 3.79%) 


Aberdeen Global Asian Smaller Companies 3,812 86,173 100,198 1.17% 

M&G Asian Acc Fund 7,343 104,859 105,506 1.23% 

275,595 307,370 3.59% 

Japan 6.77% (2009 6.24%) 

GLG Japan Core Alpha 248,830 241,126 239,545 2.80% 

JO Hambro Capital Management Umbrella Japan Fund 158,238 238,945 232,805 2.72% 


602,716 579,505 6.77% 


GLG Partners Investment Fund 159,091 195,706 244,491 2.86% 

M&G Securities Recovery Fund 91,845 227,062 254,297 2.97% 

422,768 498,788 5.83% 

34




14. Portfolio statement – Multi Manager Global Equity (EUR) Class (continued) 


EUR 

EUR 

United States 29.00% (2009 22.30%) 

Brown Investment Advisory Income American B Fund 45,844 249,087 313,012 3.66% 

M&G Securities America Fund 33,010 432,404 385,935 4.51% 

Martin Currie North American Alpha Fund B 258,352 337,669 313,230 3.70% 

Neptune US Opportunities B Acc Fund 154,229 283,532 376,284 4.40% 

Schroder International Selection US Small Companies 7,587 386,796 425,154 4.97% 

UBS Equity Fund Management Company 639 265,910 338,770 3.96% 

UBS Equity Fund Mid Caps USA 522 352,869 326,175 3.80% 

2,308,267 2,478,560 29.00% 



Net assets 8,555,876 100.00% 

35




14. Portfolio statement – Multi Manager Alternative Strategies (GBP) Class 



£ £ 

Bermuda 4.39% (2009 3.59%) 

Aurum Investor Dollar Fund 10,769 1,397,248 1,441,160 4.39% 

1,397,248 1,441,160 4.39% 

Cayman Islands 7.92% (12.78%) 

Thames River Warrior Fund 983 1,603,507 1,957,755 5.96% 

Thames River Sentinel Limited – S Class B 55 33,291 51,143 0.16% 

Thames River Sentinel Limited – S Class C 261 247,663 278,679 0.85% 

Thames River Warrior Redemption – S Class F 79 47,973 39,526 0.12% 

Thames River Warrior Redemption – S Class C 234 233,947 189,146 0.58% 

Thames River Warrior Class A 52 73,464 80,703 0.25% 

2,239,845 2,597,279 7.92% 

Ireland 22.49% (2009 10.07%) 

Aegon Asset Management UK PLC 284,531 1,563,262 1,671,733 5.09% 

Aviva Investors Alternative Fund G7 Class 2 GBP 136,238 1,400,000 1,623,412 4.95% 

Legg Mason Global Fund 12,370 1,250,000 1,266,223 3.86% 

Legg Mason Multi Strategy Accumulation Fund 14,554 1,417,552 1,572,130 4.79% 

PIMCO Global Real Return 142,207 1,250,000 1,247,156 3.80% 

6,880,814 7,380,654 22.49% 

Jersey 8.88% (2009 10.88%) 

BH Global GBP Fund 138,621 1,257,602 1,599,686 4.87% 

Ermitage Resources Fund Limited Class E GBP 755 86,722 80,741 0.25% 

Lyxor Gold Bullion 15,000 1,125,670 1,232,518 3.76% 

2,469,994 2,912,945 8.88% 

Luxembourg 15.03% (2009 12.26%) 

Investec Global Strategy Accumulation USD Fund 107,048 1,394,350 1,388,653 4.23% 

Investec Global Strategy Investment Grade Accumulation Fund 24,050 316,246 321,309 0.98% 

Investec Global Strategy Investment Grade Corporate Bond Fund 63,634 1,327,414 1,434,299 4.37% 

Schroder International Sterling Bond Hedge Acc 13,524 1,500,000 1,788,072 5.45% 

4,538,010 4,932,333 15.03% 

36




14. Portfolio statement – Multi Manager Alternative Strategies (GBP) Class (continued) 


£ £ 


Aviva Investors Alternative Fund PCC Limited USD 46,569 335,437 338,419 1.03% 

Investec Enhanced Natural Resources P Fund 695,537 821,855 846,886 2.58% 

Jupiter Corporate Bond Income Fund 1,577,330 764,312 802,703 2.45% 

M&G Optimal Income 1,929,943 2,000,000 2,780,661 8.47% 

M&G Property Fund Institutional 188,574 1,203,889 1,277,589 3.89% 

M&G Strategic Corporate Bond Fund 2,233,049 1,650,000 1,807,430 5.51% 

Nemrod Sterling Fund 1,128 1,486,394 1,529,494 4.66% 

Schroder Property Managers Indirect Real Estate 9,623 850,000 1,006,277 3.07% 

Thames River Warrior Alternative Sentinel Redemption 295 98,552 195,756 0.60% 

9,210,439 10,585,216 32.26% 


Net current assets 2,971,210 9.03% 

Net assets 32,820,796 100.00% 

37




14. Portfolio statement – Multi Manager Alternative Strategies (USD) Class 



US$ 

US$ 

Bermuda 6.91% (2009 3.75%) 

Aurum Investor Dollar Fund 3,409 1,147,238 1,184,360 6.91% 

1,147,238 1,184,360 6.91% 

Cayman Islands 9.74% (2009 12.53%) 

Thames River Capital Warrior 600 1,303,316 1,490,598 8.70% 

Thames River redemption Class 222 221,690 177,762 1.04% 

1,525,006 1,668,360 9.74% 

Ireland 18.64% (2009 6.50%) 

Legg Mason Global Fund 8,409 850,000 861,465 5.03% 

Legg Mason Multi Strategy Accumulation Fund 8,737 1,003,278 1,125,904 6.57% 

PIMCO Global Ireland Limited 52,975 650,000 700,322 4.09% 

PIMCO Global Real Return 33,356 500,000 504,670 2.95% 

3,003,278 3,192,361 18.64% 

Jersey 11.09% (2009 15.20%) 

BH Global USD Fund 90,000 904,418 1,044,000 6.10% 

Lyxor Gold Bullion 6,500 782,555 853,905 4.99% 

1,686,973 1,897,905 11.09% 

Luxembourg 18.79% (2009 27.06%) 

Investec Global Strategy Accumulation USD Fund 37,757 725,000 783,083 4.57% 

Investec Global Strategy Natural Resources Fund 23,040 472,818 492,129 2.87% 

Investec Global Strategy Corporate Bond Fund 59,008 1,032,070 1,185,470 6.92% 

Schroder International Strategic Bond Fund 5,517 610,144 759,535 4.43% 

2,840,032 3,220,217 18.79% 


Aviva Fixed Income Accumulation Fund 123,990 1,263,573 1,440,589 8.41% 

M&G Property Institutional Fund 71,848 730,599 778,251 4.54% 

Nemrod Diversified A 314 1,099,068 1,125,326 6.57% 

Schroder Property Managers Indirect Real Estate 4,244 542,939 709,539 4.14% 

Thames River Alternative Sentinel 274 225,649 289,351 1.69% 

38 

3,861,828 4,343,056 25.35%




14. Portfolio statement – Multi Manager Alternative Strategies (USD) Class (continued) 


US$ 

US$ 



Net assets 17,127,635 100.00% 

39




14. Portfolio statement – Multi Manager Alternative Strategies (EUR) Class 



EUR 

EUR 

Bermuda 5.29% (2009 4.23%) 

Aurum Funds Investor 3,122 375,000 385,271 5.29% 

375,000 385,271 5.29% 


Thames River Sentinel B Class 55 55,210 57,943 0.80% 

Thames River Sentinel S Class 142 215,102 256,520 3.52% 

Thames River Warrior B Class 31 31,903 26,162 0.36% 

Thames River Warrior Redemption S Class 12 3,914 9,237 0.13% 

306,129 349,862 4.81% 

Ireland 20.80% (2009 7.42%) 

Aegon Strategic Global Bond Fund B 37,134 285,484 307,100 4.22% 

Gam Managers Limited 29,176 300,000 308,970 4.24% 

Legg Mason Multi Strategy Accumulation Fund 2,470 275,000 305,926 4.20% 

PIMCO Global Ireland Limited 19,305 250,000 266,216 3.66% 

PIMCO Global Real Retrurn 22,368 325,000 326,566 4.48% 

1,435,484 1,514,778 20.80% 

Jersey 5.15% (2009 9.52%) 

BH Global USD Fund 14,000 191,898 185,842 2.55% 

Lyxor Gold Bullion 2,000 161,602 189,035 2.60% 

353,500 374,877 5.15% 

Luxembourg 21.47% (2009 23.23%) 

FT Investment Global Bond A 4 54 57 0.00% 

Invesco Euro Corporate Bond Fund 23,232 276,206 309,377 4.25% 

Investec Global Strategy Accumulation USD Fund 19,225 288,843 286,868 3.94% 

Investec Global Strategy Corporate Bond Fund 13,512 283,336 308,484 4.24% 

Investec Global Strategy Natural Resources Fund 4,810 72,746 73,920 1.02% 

Lion Trust International Fund 28,896 275,000 288,913 3.97% 

Schroder ISF Sterling Bond Fund C Acc 2,249 250,000 295,209 4.05% 

1,446,185 1,562,828 21.47% 

40




14. Portfolio statement – Multi Manager Alternative Strategies (EUR) Class (continued) 


EUR 

EUR 


Aviva IG7 Fixed Income Euro Class Tranche 2 9,094 250,000 282,448 3.88% 

Blackpoint Management Fund 178 305,575 301,637 4.14% 

Investec Enhanced Natural Resources Fund 64,399 83,457 90,197 1.24% 

M&G Property Fund Institutional 30,881 235,695 240,666 3.30% 

M&G Optimal Income 30,449 300,552 421,046 5.78% 

Schroder Property Managers Indirect Real Estate 1,244 122,285 149,637 2.04% 

1,297,564 1,485,631 20.38% 



Net assets 7,282,264 100.00% 

41




14. Portfolio statement – Multi Manager Alternative Equity (GBP) Class 



£ £ 

Bermuda 4.24% (2009 3.83%) 

Perinvest Whistler Fund 8,631.88 653,208 933,659 4.24% 

653,208 933,659 4.24% 


Caliburn Absolute Strategic Fund 5,985 684,923 590,518 2.68% 

Caliburn Strategic Fund Euro Voting X Shares Side Pocket 172 17,372 16,993 0.08% 

Caliburn Strategic Designated Investment Euro Voting Shares 429 42,871 33,504 0.15% 

Caliburn Strategic Fund Voting X Shares 38 3,848 4,076 0.02% 

Fortune Global Long/Short Fund USD 8,034 660,519 858,725 3.90% 

Henderson Absolute Return Fund 6,212 524,822 1,012,357 4.60% 

Vantage Global Investment Fund 2,683 855,010 841,877 3.82% 

Odey European Income Class Fund 3,115 689,772 760,474 3.45% 

Smith & Williamson Enterprise Fund 5,475 819,020 884,500 4.02% 

Thames River Nevsky 770 800,000 822,690 3.74% 

TT International Mid Cap Europe Long/Short A 9,491 945,119 972,548 4.42% 

6,043,276 6,798,262 30.88% 

Ireland 32.78% (2009 15.42%) 

ACL Alternative Fund GBP Class B 4,138 697,706 735,606 3.34% 

Cazenove Capital Management 485 838,556 770,202 3.50% 

GLG Partners LP Alpha Select UCITS 6,356 640,000 656,272 2.98% 

Ignis Cartesian UK Equity Long Short Fund 662 997,258 972,576 4.42% 

Matrix Alternate Investment Strategies GBP 640,064 640,000 641,152 2.91% 

Matrix Alternate Investment Strategy Asia 850,000 850,000 857,225 3.89% 

Veritas Asset Managers UK Limited China A GBP 3,370 850,000 865,636 3.93% 

Veritas Asset Managers UK Limited Real return 7,093 850,000 860,167 3.91% 

Polar Capital UK Absolute Return Fund 78,039 763,221 858,429 3.90% 

7,126,741 7,217,265 32.78% 

Jersey 2.93% (2009 2.92%) 

Culross Global Hedge Fund 553 554,033 646,020 2.93% 

Culross GBP Equalisation Credit 57 57 57 – 

554,090 646,077 2.93% 

42




14. Portfolio statement – Multi Manager Alternative Equity (GBP) Class (continued) 


£ £ 

Luxembourg 12.68% (2009 7.34%) 

Goldman Sachs US Equity Absolute Return Fund 8,550 850,000 876,931 3.98% 

Goldman Sachs Global Currency 6,340 634,784 628,833 2.86% 

Investec Global Strategy Fund 49,334 646,266 639,972 2.91% 

Martin Currie Global Fund 64,368 646,635 644,322 2.93% 

2,777,685 2,790,058 12.68% 


BlackRock UK Equity Hedge Fund 5,193 820,428 877,371 3.99% 

SVM UK Absoulte Alpha 662,218 688,044 647,517 2.94% 

Trafalgar Trading Fund C3 Institutional Class 6,668 850,000 849,990 3.86% 

2,358,472 2,374,878 10.79% 

United States 0.02% (2009 3.61%) 

Eddington Triple Alpha Fund 16 8,619 4,883 0.02% 

8,619 4,883 0.02% 



Net assets 22,016,604 100.00% 

43




14. Portfolio statement – Multi Manager Alternative Equity (USD) Class 



US$ 

US$ 

Bermuda 4.26% (2009 4.48%) 

Perinvest Whistler Fund 2,906.28 428,755 502,590 4.26% 

428,755 502,590 4.26% 


Caliburn Strategic Fund USD Voting X Shares Side Pocket 106 10,653 11,254 0.10% 

Caliburn Strategic USD Voting Shares 3,009 322,449 307,966 2.61% 

Caliburn Strategic Designated Investment USD Voting Shares 260 25,978 20,549 0.17% 

Fortune Global Long/Short Fund USD 2,605 424,354 445,182 3.77% 

Henderson Absolute Return Fund 1,962 258,749 511,289 4.33% 

Odey European Income Class Fund 1,432 348,925 426,853 3.61% 

Smith & Williamson Enterprise Fund 3,021 442,524 474,360 4.02% 

Thames River Nevsky 54 473,021 489,665 4.15% 

Trafalgar Trading Fund 3,472 450,000 449,991 3.81% 

TT International Mid Cap Europe Long/Short A 2,155 412,234 451,559 3.82% 

Vantage Global Investment Fund 

3,168,887 3,588,668 30.39% 

Ireland 33.34% (2009 16.91%) 

ACL Alternative Fund GBP Class B 2,459 388,910 404,353 3.42% 


GLG Partners LP Alpha Select UCITS 4,485 450,000 462,019 3.91% 


Matrix Alternate Investment Strategies GBP 350,070 350,000 350,595 2.97% 

Matrix Alternate Investment Strategy Asia 450,000 450,000 449,820 3.81% 


Real Return Fund B Shares USD 1,831 450,000 459,594 3.89% 

Veritas Asset Management UK Limited 3,746 450,000 455,544 3.86% 

3,924,739 3,938,086 33.34% 

Jersey 2.91% (2009 3.38%) 

Culross Global Hedge Fund 5,599 2,185 5,599 0.05% 

Culross Global Management Arbitrage 164 298,699 337,945 2.86% 

300,884 343,544 2.91% 

44




14. Portfolio statement – Multi Manager Alternative Equity (USD) Class (continued) 


US$ 

US$ 

Luxembourg 12.41% (2009 8.15%) 

Goldman Sachs US Equity Absolute Return Fund – USD Class 4,510 450,000 463,034 3.92% 

Goldman Sachs Global Currency 3,204 340,000 312,091 2.64% 



1,473,544 1,465,665 12.41% 



Vantage Global Investment Fund 929 450,000 465,921 3.95% 

867,698 927,618 7.86% 

United States 0.02% (2009 4.05%) 


5,114 2,550 0.02% 



Net assets 11,809,390 100.00% 

45




14. Portfolio statement – Multi Manager Alternative Equity (EUR) Class 



EUR 

EUR 

Bermuda 6.66% (2009 11.00%) 

ACL Alternative Fund Limited 1,260 129,649 140,765 2.81% 

Perinvest Whistler Fund 1,202 171,597 191,862 3.85% 

301,246 332,627 6.66% 



Caliburn Strategic Fund Euro Voting X Shares Side Pocket 9 906 907 0.02% 

Caliburn Strategic Designated Investment Euro Voting Shares 31 3,119 3,274 0.07% 

Caliburn Strategic Euro Voting Shares 101 10,065 7,785 0.16% 

Caliburn Strategic Fund 1,301 148,485 124,129 2.48% 

Fortune Global Long Short Fund 1,457 154,531 179,116 3.58% 

Henderson Absolute Return Fund 846 160,000 217,604 4.35% 

Smith & Williamson Enterprise Fund Usd 967 114,668 109,202 2.18% 

Odey European Income Class Fund 260 146,996 167,724 3.35% 

Thames River Nevsky Fund 61 187,830 192,068 3.84% 

Trafalgar Trading Fund 1,440 180,000 180,002 3.60% 

TT International Mid Cap Europe Long/Short A 689 161,532 178,813 3.57% 

1,431,532 1,544,986 30.88% 

Ireland 29.10% (2009 12.63%) 


GLG Partners Lp Alpha Select Ucits 1,790 180,000 184,063 3.68% 


Matrix Alternate Strategies GBP 180,000 180,000 180,324 3.60% 

Matrix Alternate Strategies Asia 180,000 180,000 179,856 3.59% 


Veritas Asset Management UK Limited Real Return Asian Euro 750 180,000 182,447 3.65% 

Veritas Asset Management UK Limited China A Class Euro 1,511 180,000 182,562 3.65% 

1,447,902 1,456,341 29.10% 

Jersey 2.82% (2009 2.66%) 

Culross Global Hedge Fund 123 130,187 141,267 2.82% 

Culross Global Hedge Fund – Side Pocket 9 9 9 – 

46 

130,196 141,276 2.82%




14. Portfolio statement – Multi Manager Alternative Equity (EUR) Class (continued) 


EUR 

EUR 

Luxembourg 11.65% (2009 8.00%) 

Goldman Sachs US Equity Absolute Return Fund – EUR Class 1,817 180,000 185,178 3.70% 

Goldman Sachs Global Currency Fund 1,370 136,686 133,230 2.66% 



588,768 582,921 11.65% 


Vantage Global Investment Fund 516 187,747 186,233 3.72% 

187,747 186,233 3.72% 

United States 0.02% (2009 0.04%) 


2,038 1,069 0.02% 



Net asset value 5,004,147 100.00% 

47



Fund statistics (unaudited) 

Net asset values Net asset value Net asset % change in Number of 

of Class Fund value per unit period shares in issue 

£ £ 

Multi Manager Global Equity (GBP) Class 

At launch (1 March 2000) 100,000 10.00 – 10,000 

31 October 2000 88,198 8.82 (11.80) 10,000 

31 October 2001 1,613,954 6.39 (27.55) 252,640 

31 October 2002 1,570,929 5.16 (19.25) 304,642 

31 October 2003 4,885,436 6.33 22.67 772,012 

31 October 2004 14,010,880 6.82 7.74 2,055,238 

31 October 2005 36,616,712 8.20 20.23 4,465,414 

31 October 2006 59,702,648 9.64 17.56 6,190,594 

31 October 2007 73,402,794 10.96 13.69 6,697,357 

31 October 2008 38,954,839 7.16 (34.67) 5,439,281 

31 October 2009 42,396,390 8.91 24.44 4,757,702 

31 October 2010 46,089,490 10.28 15.38 4,551,880 



US$ 

US$ 

Multi Manager Global Equity (USD) Class 

At launch (1 March 2000) 100,000 10.00 – 10,000 

31 October 2000 81,131 8.11 (18.90) 10,000 

31 October 2001 2,112,640 5.57 (31.32) 379,149 

31 October 2002 2,699,567 4.52 (18.85) 597,375 

31 October 2003 3,767,922 5.74 26.99 655,965 

31 October 2004 11,892,643 6.39 11.32 1,862,402 

31 October 2005 25,583,673 7.49 17.21 3,417,909 

31 October 2006 36,741,024 9.12 21.76 4,029,486 

31 October 2007 47,456,789 11.21 22.92 4,234,208 

31 October 2008 21,124,114 6.16 (45.05) 3,430,276 

31 October 2009 24,161,859 7.56 22.73 3,193,981 


48 



EUR 

EUR 

Multi Manager Global Equity (EUR) Class 

At launch (15 February 2005) 277,900 10.00 – 27,790 

31 October 2005 4,204,151 10.86 8.60 387,112 

31 October 2006 8,774,192 13.00 19.71 674,910 

31 October 2007 17,636,040 14.31 10.07 1,232,200 

31 October 2008 6,678,227 8.44 (41.02) 791,182 

31 October 2009 8,373,961 9.41 11.49 890,174 

31 October 2010 8,555,876 10.83 14.99 789,882



Fund statistics (unaudited) 



£ £ 

Multi Manager Alternative Strategies (GBP) Class 

At launch (25 June 2007) 27,944,390 10.00 – 2,794,439 

31 October 2007 29,209,997 10.17 1.70 2,872,901 

31 October 2008 37,019,047 8.60 (15.44) 4,305,938 

31 October 2009 36,019,399 9.40 9.30 3,832,683 


Net asset value Net asset % change in Number of 


US$ 

US$ 


At launch (25 June 2007) 26,185,910 10.00 – 2,618,591 

31 October 2007 27,229,003 10.08 0.80 2,701,494 

31 October 2008 29,123,689 8.07 (19.94) 3,609,624 

31 October 2009 27,497,896 8.81 9.17 3,119,963 




EUR 

EUR 

Multi Manager Alternative Strategies (EUR) Class 

At launch (25 June 2007) 11,830,930 10.00 – 1,183,093 

31 October 2007 13,014,700 10.19 1.90 1,277,370 

31 October 2008 9,064,701 8.54 (16.19) 1,061,638 

31 October 2009 6,087,448 8.97 5.04 678,784 

31 October 2010 7,282,264 9.49 5.69 767,837 



£ £ 

Multi Manager Alternative Equity (GBP) Class 

At launch (10 June 2008) 14,154,190 10.00 – 1,415,419 

31 October 2008 12,908,411 9.12 (8.80) 1,415,419 

31 October 2009 21,296,378 9.53 4.50 2,234,236 


49



Fund statistics (unaudited) (continued) 



US$ 

US$ 

Multi Manager Alternative Equity (USD) Class 

At launch (10 June 2008) 9,439,940 10.00 – 943,994 

31 October 2008 10,840,070 11.48 14.80 943,994 

31 October 2009 15,803,155 9.45 (17.68) 1,672,735 


Multi Manager Alternative Equity (EUR) Class 



EUR 

EUR 

At launch (10 June 2008) 3,579,170 10.00 – 357,917 

31 October 2008 3,311,339 9.25 (7.50) 357,917 

31 October 2009 5,100,250 9.42 1.84 541,578 

31 October 2010 5,004,147 9.46 0.43 528,905 

50



Notice of Annual General Meeting 

Notice is hereby given pursuant to the Articles of Association of Standard Bank 

Strategist Funds Limited that the annual general meeting of the Company will take 

place on 18 April 2011 at Standard Bank House, 47-49 La Motte Street, St. Helier, 

Jersey, Channel Islands at 11.00a.m. for the purpose of considering and, if thought fit, 

passing the following Resolutions: 

1. That the financial statements for the year ended 31 October 2010 be approved and 

adopted. 

2. That Ernst & Young LLP, who have signified their willingness to continue in office, 

be and are hereby appointed the auditors of the Company for the ensuing year 

and that the fee payable to them in respect of the year ended 31 October 2010 be 

determined by the directors. 

Notes 

1. A member entitled to attend and vote is entitled to appoint one or more proxies to 

attend and vote in his stead a proxy need not be a member of the Company. 

2. To be valid this proxy form must be completed and deposited at the registered 

office of the Company not less than 48 hours before the time fixed for the meeting. 

3. If the shareholder is a corporation the form must be executed either under its 

common seal or under the hand of an officer or attorney so authorised. 

4. In the case of joint holders, the signature of any one joint holder will be sufficient, 

but the names of all joint holders should be stated. 

3. To re-appoint the following directors: 

M Logan. 

F Stewart 

M Farrow 

By order of the board 


Secretary 

•••••••••• 

Further copies of this annual report may be obtained from the manager: 


47-49 La Motte Street, St. Helier, Jersey JE4 8XR, Channel Islands 

Telephone 01534 881188. Facsimile: 01534 881119 

Please note that the price of shares in this Fund and the income earned can go 

down as well as up in the same way as the value of quoted investments and their 

yield can fluctuate. Shares in this Fund should be regarded as medium to long term 

investments. 

51

Annual Report 2010 - Private Clients - Standard Bank

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