ATHENA CONTROLLED RISK DISCRETIONARY PORTFOLIOS...

ATHENA CONTROLLED RISK DISCRETIONARY PORTFOLIOS

QUARTERLY REPORT Q3 2015

2

ECONOMIC AND MARKET REVIEW

After the strong start to the year for most developed equity markets, the third quarter of 2015 proved much more difficult for investors.

The period started well after there was a (messy but) positive resolution to the Greek bailout which saw the staunchly anti-austerity

Greek leader, Alex Tsispras, capitulate and accept all of Germany’s terms for the deal. Despite this temporary focus on European

politics, it was events in China over the period that set the tone for the negative quarter. Chinese equities exhibited huge volatility

during July with many stocks being suspended due to large falls in their prices while the government stepped in in an effort to shore up

equity prices. With manufacturing data falling again for a 5th successive month, investors took fright that the economy was slowing

faster than official figures suggested.

This volatility in the Chinese equity market continued weight on investor sentiment but the move by the Chinese government to

devalue the Yuan in the middle of the August was the catalyst for investors across the world dump equity holdings. There was no hiding

place with even the US market, normally a safer place during times of turmoil, falling back sharply on what was dubbed by the media

‘black Monday’.

Following the sharp falls seen in August, equity markets suffered another volatile and weak month in September. From a macro

perspective, investors spent the month trying to assess the impact of China’s slowdown while also attempting to second-guess the

actions of the Federal Reserve who met mid month to decide whether to raise US interest rates for the first time in almost a decade.

While the Fed held fire, Janet Yellen cited the weakening Chinese economy and market volatility as part of the reason for the delay in

moving rates higher, risk assets fell again as many investors felt that the Fed was confirming the markets’ worst fears of a more serious

global economic slowdown.

Against the backdrop, there was significant dispersion between global equity markets, although the trend was still negative. With falls

of -6.6%*, the S&P 500 and MSCI UK indices were the best performers, while the Hang Seng in Hong Kong saw a drop of -19.8%*, as the

turmoil in the Chinese stock market spilled over across the region. As we have noted before, some lower risk assets continued to

provide little protection from steep equity falls, as gold both fell sharply during the quarter, while corporate bonds recorded a mild

positive. UK government bonds were one of the few assets to rise, as the IA Gilt sector average rose by 3.1%*.

Source: *all index and sector data FE Analytics, 30.06.2015 to 30.09.2015

ATHENA PORTFOLIO RETURNS: Q3 2015

With volatile asset prices across the world, the Athena portfolios were not immune to the falls in markets with all portfolios falling back over the quarter.

3

OUTLOOK

With equity markets having their worst quarter since 2011 and the MSCI World index recording a drop of -7.7%*, it is easy to become

too negative and remove risk in an attempt to protect portfolios from further losses. However, while we are mindful of the weakened,

and very fragile, investor sentiment, for the time being we continue to believe that the falls we have seen in August and September

have been a correction from over extended levels, rather than the start of a more sinister and prolonged bear market. While the global

economic data has exhibited some deterioration over the summer, just at a time when the Fed are looking to raise interest rates, we

feel the outlook for risk assets remains broadly positive.

In the Bank of Japan and European Central Bank we have two highly accommodative central banks who are now very accustomed to

using unorthodox tools to try to stimulate growth and inflation for their domestic economies. Indeed, speculation has risen over the

quarter that there is a growing likelihood of further quantative easing packages to be launched by both of these banks in the coming

months and therefore we continue to tilt our portfolios towards these two regions. Over the Atlantic in the US, despite the fears of

raising rates, the Fed remains very supportive, and with unemployment close to 5%, wage growth picking up and GDP growth running at

a solid, if uninspiring level, we do not see any real threat of recession. We do note, however, that the broad stock market remains at

elevated levels and therefore we have little exposure here.

China remains the big concern for global growth and has the potential to continue to depress a stock market recovery. With vast

reserves and many policy levers still to pull there are plenty of stimulatory measures that can be used to support the weakening

economy during its shift from a manufacturing based economy to one that is driven primarily by domestic consumption. However, the

data must be watched closely here as any confirmation of any ongoing weakness or prolonged deterioration will undoubtedly put

significant pressure on global growth expectations and equity markets will suffer further.

For the time being, we remain optimistic that equities will recover lost ground in the final quarter of 2015. With global economic data

providing no clear picture, however, we anticipate that volatility is likely to stay high for the foreseeable future and we therefore

continue to be cautiously positioned in terms of our equity weightings, looking for further evidence that the summer weakness was a

growth scare, rather than the start of a prolonged downturn. As a result we continue to have exposure to those equity markets and

themes where we have the highest conviction (Japan, Europe, UK Midcap, some Asia, global insurance) while avoiding bonds which we

feel will struggle in the current environment. Instead we favour property funds and best of breed absolute return funds with proven

records of making positive returns regardless of the direction of their underlying markets.

Source: *FE Analytics, 30.06.2015 to 30.09.2015

PORTFOLIO ACTIVITY & PERFORMANCE

As the majority of risk assets fell over the quarter, it was very pleasing to see that our strategy of diversifying into property and absolute

return funds to reduce risk worked exceptionally well. The best performing holding over the period was the Natixis H2O Multi Returns

fund which, by investing in global macro themes, managed to return an exceptional 10.2%*. The Old Mutual Global Equity Absolute

Return fund also performed strongly returning 3.1%*, while the Henderson UK Absolute Return fund eked out a positive return of

0.7%* despite the very negative equity backdrop. Elsewhere UK commercial property, where we have significant weighting across all

portfolios, performed very well and continued to deliver solid, uncorrelated and low volatile returns with M&G Property Portfolio

gaining 2.6%*, while Kames Property Income added 2.5%*.

While the Japanese and European equity markets remain the two best performers of the major indices over 2015, during the volatile

third quarter holdings here were among the weakest. As a result, the CC Japan Alpha fund suffered a loss of -6.3%* over the period, but

still remains up 9.3%** over the year to date. Elsewhere, the Lyxor Nikkei 400 ETF fell by -13.9%* while in Europe Argonaut European

Alpha, again another strong performer over 2015, lost -2.36% in the quarter. We continue to favour these two equity markets over the

UK and the US and while they are likely to exhibit greater volatility amid this more uncertain period, we strongly believe that our

conviction will be well rewarded once we return to a more fundamentally driven environment and the current global growth scare

subsides. Macau Property Opportunities struggled over the period, hit by the ongoing concerns regarding the slowdown in China and

poor casino revenue data.

Source: *FE Analytics, 30.06.2015 to 30.09.2015, **FE Analytics, 31.12.2014 to 30.09.2015

4

TACTICAL ASSET CLASS VIEW

ASSET CLASS POSITIVE / NEGATIVE ISSUE THE APOLLO SOLUTION

Equities

(Maintained) We continue to be broadly positive on the outlook for global equities, but dispersion between markets remains high as economic data and central bank

policies diverge. While global growth remains solid, central banks remain highly supportive and some value has re-emerged after the Q3 sell off.

For the time being we remain optimistic that equities will recover lost ground in the final quarter of 2015. The key issue is to have exposure only to the markets and themes where

we have the highest conviction. Favoured areas: Europe, Japan, UK mid cap & some Asia.

Bonds

(Reduced) The fixed interest universe continues to exhibit high volatility as it adjusts to the

likelihood of higher interest rates in the US & UK.

Maintained a negative stance on traditional Government and Corporate Bonds.

Favoured areas: Funds that have little or no sensitivity to rising interest rates

Absolute Return

(Maintained) Our negative stance on sovereign and corporate bonds has led to us increasingly turn to Absolute Return

funds.

Focus exposure on proven Absolute Return funds and Q3 equity falls highlighted the importance of using these strategies to provide a

source of uncorrelated, consistent returns. Favoured areas: Long/short equity and ‘macro’ funds.

Commodities

(Maintained) Growing concerns regarding the slowdown in the Chinese economy has seen commodity markets fall

precipitously in the third quarter.

We do not expect any rebound in the short term so we are avoiding all commodities until the global growth picture becomes clearer. Gold

continues to disappoint as a safe haven

Property

(Maintained)

We expect very strong, single digit

returns from UK commercial property, with very little correlation to other assets and low volatility.

We continue to hold exposure to UK property

funds which will add strong uncorrelated returns.

Currencies

(Reduced) Interest rates are edging closer to rising in the US and the UK, while Europe and Japan remain in QE mode.

We continue to see US$ strength but have taken profit in out €/$ and £/$ positions and for the time being we have moved our currency exposure to £/€. Here € has performed well taking its value against £ close to the high for the year, despite UK economic strength and the likelihood of further QE in Europe.

Cash

(Increased) Return potential is limited and this conflicts with our strategy of demanding return from each position in our portfolios.

Yields next to nothing so used tactically where applicable, especially against equity market volatility.

5

ATHENA CONTROLLED RISK DISCRETIONARY PORTFOLIO II PORTFOLIO AIMS

The portfolio aims to provide the potential for a slightly enhanced level of return relative to that offered in short term savings accounts.

PERFORMANCE

MIN MAX

Equities 0% 25%

Absolute Return 0% 50%

Fixed Interest 0% 90%

Property 0% 20%

Commodity 0% 20%

Cash 0% 50%

NEUTRAL ASSET ALLOCATION

TOP PERFORMING HOLDINGS 1. H2O Multi Returns

2. OM Global Equity Abs Return

3. M&G Property Portfolio

4. Kames Property Income

5. Standard Life Property

10.2%

3.1%

2.6%

2.5%

1.7%

Source: Financial Express 30.06.15 to 30.09.15.

1 Y 3 Y 5 Y SINCE

LAUNCH 2012 2013 2014

ANN VOL.

ANN RETURN

Athena Controlled Risk Discretionary Portfolio II

1.16% 11.17% - 15.20% 5.46% 6.62% 2.65% 2.73% 3.88%

Source: Financial Express 31.12.11 to 30.09.15. Performance calculated for Athena II is the total return net of all fund charges, and is based on Apollo's central ‘core/satellite’ portfolio strategy. Actual performance may vary depending on adviser charges, the platform selected and on fund availability. The benchmark for Athena II is Bank of England Base Rate + 2%, while the representative sector for reference only is IMA Targeted Absolute Return. Ratios are calculated on a monthly basis.

Source: Apollo Multi Asset Management LLP as at 30.09.15. Portfolio holdings are based on the Apollo core central portfolio, actual holdings may vary on platform selected. †Total equity holdings exceed this but the effect of the short equity futures positions within the Apollo funds net down the equity exposure to the figure shown. *Funds are top 10 holdings. #2.93% of the Equity exposure is hedged by Futures positions. As a result the Futures positions have been treated as Absolute Return and the breakdown of equities in the portfolio has been reduced by 2.93% and added to the Absolute Return figure.

EQUITIES 15.0%†# ABSOLUTE RETURN 21.9% COMMODITY 0.0%

*Credit Suisse Global Autocall 21.25% *Jupiter Strategic Reserve

Hermes Asia ex Japan Fund *Apollo Structured Opportunities

Coupland Cardiff Japan Alpha Old Mutual Global Equity Absolute Return

Polar Capital Global Technology Invesco Global Targeted Return

Henderson European Focus Kames UK Equity Absolute Return FIXED INTEREST 15.9%

Argonaut European Alpha Standard Life GARS *Jupiter Strategic Bond

Legg Mason Japan Equity H2O Multi Returns *Insight Absolute Credit

Lyxor Nikkei 400 ETF GBP Hedged Henderson UK Absolute Return *Threadneedle Credit Opps

Polar Capital Global Insurance *GAM Star Credit Opportunities

Baker Steel Resources Trust PROPERTY 17.2% Muzinich Long Short Credit Yield

*M&G Property Portfolio

*Kames Property Income

*Standard Life Property

Macau Property CASH 30.0%

PORTFOLIO AIMS

The portfolio aims to provide the potential for a level of return in excess of inflation and commensurate with a defensive investment strategy that targets limited participation when markets rise but correspondingly seeks to minimise the level of participation when markets fall.

PERFORMANCE

ATHENA CONTROLLED RISK DISCRETIONARY PORTFOLIO III

MIN MAX

Equities 0% 35%



Property 0% 20%

Commodity 0% 20%

Cash 0% 40%


6






10.2%

3.1%

2.6%

2.5%

1.7%


Source: Financial Express 31.12.11 to 30.09.15. Performance calculated for Athena III is the total return net of all fund charges, and is based on Apollo's central ‘core/satellite’ portfolio strategy. Actual performance may vary depending on adviser charges, the platform selected and on fund availability. The benchmark for Athena III is Bank of England Base Rate + 3%, while the representative sector for reference only is IMA Mixed Investment 0% to 35%. Ratios are calculated on a monthly basis.

1 Y 3 Y 5 Y SINCE

LAUNCH 2012 2013 2014

ANN VOL.

ANN RETURN

Athena Controlled Risk Discretionary Portfolio III

1.45% 13.63% - 18.60% 6.77% 8.45% 2.62% 3.55% 4.69%



Coupland Cardiff Japan Alpha *Jupiter Strategic Reserve

Hermes Asia ex Japan Fund *Invesco Global Targeted Return

Credit Suisse Global Autocall 21.25% *Standard Life GARS

Polar Capital Global Technology *Apollo Structured Opportunities

Argonaut European Alpha *Threadneedle UK Absolute Return FIXED INTEREST 17.6%

Henderson European Focus Old Mutual Global Equity Absolute Return *Threadneedle Credit Opps

Fidelity Index UK Kames UK Equity Absolute Return *Jupiter Strategic Bond

Legg Mason Japan Equity H2O Multi Returns Insight Absolute Credit

Lyxor Nikkei 400 ETF GBP Hedged Henderson UK Absolute Return GAM Star Credit Opportunities

Polar Capital Global Insurance Newton Real Return Muzinich Long Short Credit Yield

Baker Steel Resources Trust JP Morgan Income Opportunities

Infrastructure India PROPERTY 19.1% Royal London Duration Hedged Credit

*M&G Property Portfolio Royal London Short Duration High Yield Bond

*Standard Life Property

*Macau Property CASH 8.3%

Kames Property Income

PORTFOLIO AIMS

The portfolio aims, over the longer term, to provide the potential for a level of return in excess of inflation, and commensurate with a conservative investment strategy that targets moderate participation in rising investment markets whilst also seeking to dampen fluctuations in capital values.

PERFORMANCE

ATHENA CONTROLLED RISK DISCRETIONARY PORTFOLIO IV

MIN MAX

Equities 0% 50%



Property 0% 20%

Commodity 0% 20%

Cash 0% 40%


7






10.2%

3.1%

2.6%

2.5%

1.7%


Source: Financial Express 31.12.11 to 30.09.15. Performance calculated for Athena IV is the total return net of all fund charges, and is based on Apollo's central ‘core/satellite’ portfolio strategy. Actual performance may vary depending on adviser charges, the platform selected and on fund availability. The benchmark for Athena IV is Bank of England Base Rate + 4, while the representative sector for reference only is IMA Mixed Investment (0-35%). Ratios are calculated on a monthly basis.

1 Y 3 Y 5 Y SINCE

LAUNCH 2012 2013 2014

ANN VOL.

ANN RETURN

Athena Controlled Risk Discretionary Portfolio IV

1.34% 14.54% - 19.85% 7.11% 9.31% 2.88% 4.02% 4.99%



*Coupland Cardiff Japan Alpha *Invesco Global Targeted Return

*Hermes Asia ex Japan Fund *Threadneedle UK Absolute Return

Credit Suisse Global Autocall 21.25% *Apollo Structured Opportunities

Argonaut European Alpha *Standard Life GARS

Polar Capital Global Technology Old Mutual Global Equity Absolute Return

Henderson European Focus Jupiter Strategic Reserve

Legg Mason Japan Equity Kames UK Equity Absolute Return FIXED INTEREST 15.5%

Fidelity Index Europe ex UK H2O Multi Returns *Threadneedle Credit Opps

Fidelity Index Japan Henderson UK Absolute Return Jupiter Strategic Bond

Fidelity Index Pacific ex Japan Newton Real Return GAM Star Credit Opportunities

Fidelity Index UK Insight Absolute Credit

Fidelity Index US PROPERTY 18.5% Muzinich Long Short Credit Yield

Lyxor Nikkei 400 ETF GBP Hedged *M&G Property Portfolio JP Morgan Income Opportunities

Polar Capital Global Insurance *Standard Life Property Royal London Duration Hedged Credit

Baker Steel Resources Trust *Macau Property Royal London Short Duration High Yield Bond

GAM Star Continental European Kames Property Income

Neptune UK Mid Cap CASH 7.7%

Infrastructure India

PORTFOLIO AIMS

The portfolio aims, over the longer term, to provide the potential for a level of return in excess of inflation, and commensurate with a cautious investment strategy that targets some participation in rising investment markets whilst also seeking to dampen fluctuations in capital values.

PERFORMANCE

ATHENA CONTROLLED RISK DISCRETIONARY PORTFOLIO V

MIN MAX

Equities 20% 60%



Property 0% 20%

Commodity 0% 20%

Cash 0% 40%


8






10.2%

3.1%

2.6%

2.5%

1.7%


Source: Financial Express 31.12.11 to 30.09.15. Performance calculated for Athena V is the total return net of all fund charges, and is based on Apollo's central ‘core/satellite’ portfolio strategy. Actual performance may vary depending on adviser charges, the platform selected and on fund availability. The benchmark for Athena V is 30% MSCI World 70% Citi Global Gov Bond , while the representative sector for reference only is IMA Mixed Investment (20-60%). Ratios are calculated on a monthly basis.

1 Y 3 Y 5 Y SINCE

LAUNCH 2012 2013 2014

ANN VOL.

ANN RETURN

Athena Controlled Risk Discretionary Portfolio V

0.93% 15.06% - 20.57% 7.54% 9.56% 3.44% 4.88% 5.12%



*Coupland Cardiff Japan Alpha *Invesco Global Targeted Return

*Hermes Asia ex Japan Fund *Threadneedle UK Absolute Return

*Fidelity Index Emerging Markets *Apollo Structured Opportunities

Fidelity Index Europe ex UK *Standard Life GARS

Fidelity Index Japan Old Mutual Global Equity Absolute Return

Fidelity Index Pacific ex Japan Kames UK Equity Absolute Return

Fidelity Index UK H2O Multi Returns

Fidelity Index US Henderson UK Absolute Return

Argonaut European Alpha Newton Real Return FIXED INTEREST 6.0%

Credit Suisse Global Autocall 21.25% GAM Star Credit Opportunities

Legg Mason Japan Equity Insight Absolute Credit

Polar Capital Global Insurance Muzinich Long Short Credit Yield

Lyxor Nikkei 400 ETF GBP Hedged JP Morgan Income Opportunities

Polar Capital Global Technology PROPERTY 18.3% Royal London Duration Hedged Credit

Henderson European Focus *M&G Property Portfolio Royal London Short Duration High Yield Bond

GAM Star Continental European *Standard Life Property

Neptune UK Mid Cap *Macau Property

Baker Steel Resources Trust Kames Property Income CASH 6.7%


PORTFOLIO AIMS

The portfolio aims, over the longer term, to provide the potential for a level of return in excess of inflation, and commensurate with a balanced investment strategy that targets participation in rising investment markets whilst also seeking to dampen fluctuations in capital values.

PERFORMANCE

ATHENA CONTROLLED RISK DISCRETIONARY PORTFOLIO VI

MIN MAX

Equities 20% 60%



Property 0% 20%

Commodity 0% 20%

Cash 0% 40%


9






10.2%

3.1%

2.6%

2.5%

1.7%


Source: Financial Express 31.12.11 to 30.09.15. Performance calculated for Athena VI is the total return net of all fund charges, and is based on Apollo's central ‘core/satellite’ portfolio strategy. Actual performance may vary depending on adviser charges, the platform selected and on fund availability. The benchmark for Athena VI is 40% MSCI World 60% Citi Global Gov Bond while the representative sector for reference only is IMA Mixed Investment (20-60%). Ratios are calculated on a monthly basis.

1 Y 3 Y 5 Y SINCE

LAUNCH 2012 2013 2014

ANN VOL.

ANN RETURN

Athena Controlled Risk Discretionary Portfolio VI

0.19% 15.21% - 21.10% 8.40% 10.48% 2.90% 5.65% 5.27%


EQUITIES 52.2% ABSOLUTE RETURN 23.0% COMMODITY 0.0%

*Fidelity Index US *Invesco Global Targeted Return

*Fidelity Index Emerging Markets *Threadneedle UK Absolute Return

*Fidelity Index Europe ex UK Apollo Structured Opportunities

*Fidelity Index Japan Old Mutual Global Equity Absolute Return

*Fidelity Index Pacific ex Japan H2O Multi Returns

*Fidelity Index UK Henderson UK Absolute Return

Coupland Cardiff Japan Alpha Newton Real Return

Hermes Asia ex Japan Fund

Argonaut European Alpha FIXED INTEREST 4.4%


Legg Mason Japan Equity JP Morgan Income Opportunities

Polar Capital Global Insurance Royal London Duration Hedged Credit

Lyxor Nikkei 400 ETF GBP Hedged Royal London Short Duration High Yield Bond

Polar Capital Global Technology PROPERTY 14.5% Insight Absolute Credit

GAM Star Continental European *Standard Life Property Muzinich Long Short Credit Yield

Henderson European Focus *Macau Property

Neptune UK Mid Cap M&G Property Portfolio

Baker Steel Resources Trust Kames Property Income CASH 5.8%


PORTFOLIO AIMS

This portfolio aims, over the longer term, to provide the potential for a level of return commensurate with a moderately adventurous investment strategy that targets greater participation in rising investment markets whilst also seeking to dampen fluctuations in capital values.

PERFORMANCE

ATHENA CONTROLLED RISK DISCRETIONARY PORTFOLIO VII

MIN MAX

Equities 30% 80%



Property 0% 20%

Commodity 0% 20%

Cash 0% 40%


10






10.2%

3.1%

2.6%

2.5%

1.7%


Source: Financial Express 31.12.11 to 30.09.15. Performance calculated for Athena VII is the total return net of all fund charges, and is based on Apollo's central ‘core/satellite’ portfolio strategy. Actual performance may vary depending on adviser charges, the platform selected and on fund availability. The benchmark for Athena VII is 50% MSCI World 50% Citi Global Gov Bond while the representative sector for reference only is IMA Mixed Investment (20-60%). Ratios are calculated on a monthly basis.

1 Y 3 Y 5 Y SINCE

LAUNCH 2012 2013 2014

ANN VOL.

ANN RETURN

Athena Controlled Risk Discretionary Portfolio VII

-0.26% 16.18% - 22.28% 8.76% 10.97% 3.68% 6.49% 5.54%



*Fidelity Index Emerging Markets *Invesco Global Targeted Return


*Fidelity Index Japan Threadneedle UK Absolute Return

*Fidelity Index Pacific ex Japan Old Mutual Global Equity Absolute Return

*Fidelity Index UK H2O Multi Returns

*Fidelity Index US Henderson UK Absolute Return

*Coupland Cardiff Japan Alpha Newton Real Return

Hermes Asia ex Japan Fund

Argonaut European Alpha FIXED INTEREST 3.2%



Polar Capital Global Insurance Royal London Duration Hedged Credit

Lyxor Nikkei 400 ETF GBP Hedged Royal London Short Duration High Yield Bond

GAM Star Continental European PROPERTY 14.4% Insight Absolute Credit

Neptune UK Mid Cap *Macau Property Muzinich Long Short Credit Yield

Polar Capital Global Technology *Standard Life Property

Henderson European Focus Kames Property Income

Baker Steel Resources Trust M&G Property Portfolio CASH 5.1%


PORTFOLIO AIMS

The portfolio aims, over the longer term, to provide the potential for a level of return commensurate with that associated with an adventurous investment strategy.

PERFORMANCE

ATHENA CONTROLLED RISK DISCRETIONARY PORTFOLIO VIII

MIN MAX

Equities 40% 80%



Property 0% 20%

Commodity 0% 20%

Cash 0% 20%


11






10.2%

3.1%

2.6%

2.5%

1.7%


Source: Financial Express 31.08.13 to 30.09.15. *2013 performance data since launch on 31.08.13. Performance calculated for Athena VIII is the total return net of all fund charges, and is based on Apollo's central ‘core/satellite’ portfolio strategy. Actual performance may vary depending on adviser charges, the platform selected and on fund availability. The benchmark for Athena VIII is 70% MSCI World 30% Citi Global Gov Bond while the representative sector for reference only is IMA Mixed Investment (45-80%). Ratios are calculated on a monthly basis.

1 Y 3 Y 5 Y SINCE

LAUNCH 2013* 2014

ANN VOL.

ANN RETURN

Athena Controlled Risk Discretionary Portfolio VIII

-0.91% - - 5.54% 4.65% 3.98% 7.50% 2.66%



*Fidelity Index Japan Apollo Structured Opportunities


*Fidelity Index US H2O Multi Returns

*Fidelity Index Emerging Markets Henderson UK Absolute Return

*Fidelity Index Europe ex UK Newton Real Return

*Fidelity Index UK

*Hermes Asia ex Japan Fund

*Coupland Cardiff Japan Alpha

*Argonaut European Alpha FIXED INTEREST 1.9%



GAM Star Continental European Royal London Duration Hedged Credit

Polar Capital Global Insurance Royal London Short Duration High Yield Bond

Lyxor Nikkei 400 ETF GBP Hedged PROPERTY 14.3%


Polar Capital Global Technology Standard Life Property

Henderson European Focus Kames Property Income

Baker Steel Resources Trust M&G Property Portfolio CASH 4.5%


PORTFOLIO AIMS

The portfolio aims, over the longer term, to provide the potential for a level of return commensurate with that associated with a more aggressive investment strategy.

PERFORMANCE

ATHENA CONTROLLED RISK DISCRETIONARY PORTFOLIO IX

MIN MAX

Equities 60% 90%



Property 0% 20%

Commodity 0% 20%

Cash 0% 20%


12






10.2%

3.1%

2.6%

2.5%

1.7%


Source: Financial Express 31.08.13 to 30.09.15. *2013 performance data since launch on 31.08.13. Performance calculated for Athena IX is the total return net of all fund charges, and is based on Apollo's central ‘core/satellite’ portfolio strategy. Actual performance may vary depending on adviser charges, the platform selected and on fund availability. The benchmark for Athena IX is 80% MSCI World 20% Citi Global Gov Bond while the representative sector for reference only is IMA Mixed Investment (45-80%). Ratios are calculated on a monthly basis.

1 Y 3 Y 5 Y SINCE

LAUNCH 2013* 2014

ANN VOL.

ANN RETURN

Athena Controlled Risk Discretionary Portfolio IX

-1.11% - - 6.56% 5.56% 4.42% 8.13% 3.15%



*Fidelity Index Japan Apollo Structured Opportunities


*Fidelity Index US H2O Multi Returns

*Fidelity Index Emerging Markets

*Fidelity Index Europe ex UK


*Fidelity Index UK

*GAM Star Continental European FIXED INTEREST 0.0%

Credit Suisse Global Autocall 21.25%

Argonaut European Alpha

Coupland Cardiff Japan Alpha PROPERTY 13.4%


Legg Mason Japan Equity *Kames Property Income

Lyxor Nikkei 400 ETF GBP Hedged Standard Life Property

Polar Capital Global Insurance CASH 3.7%

Baker Steel Resources Trust

PORTFOLIO AIMS

The portfolio aims, over the longer term, to provide the potential for a level of return commensurate with that associated with investment in equities.

PERFORMANCE

ATHENA CONTROLLED RISK DISCRETIONARY PORTFOLIO X

MIN MAX

Equities 80% 100%



Property 0% 20%

Commodity 0% 20%

Cash 0% 20%


13






10.2%

3.1%

2.6%

2.5%

1.7%


Source: Financial Express 31.08.13 to 30.09.15. *2013 performance data since launch on 31.08.13. Performance calculated for Athena X is the total return net of all fund charges, and is based on Apollo's central ‘core/satellite’ portfolio strategy. Actual performance may vary depending on adviser charges, the platform selected and on fund availability. The benchmark for Athena X is 90% MSCI World 10% Citi Global Gov Bond while the representative sector for reference only is IMA Mixed Investment (45-80%).Ratios are calculated on a monthly basis.

1 Y 3 Y 5 Y SINCE

LAUNCH 2013* 2014

ANN VOL.

ANN RETURN

Athena Controlled Risk Discretionary Portfolio X

-0.79% - - 11.08% 7.37% 7.47% 8.72% 5.47%





*Fidelity Index Japan H2O Multi Returns

*Fidelity Index UK

*Fidelity Index Emerging Markets

*Fidelity Index US FIXED INTEREST 0.0%


*GAM Star Continental European

Credit Suisse Global Autocall 21.25% PROPERTY 11.2%

Argonaut European Alpha *Macau Property

Coupland Cardiff Japan Alpha *Kames Property Income

Neptune UK Mid Cap Standard Life Property

Legg Mason Japan Equity CASH 3.4%

Lyxor Nikkei 400 ETF GBP Hedged

Polar Capital Global Insurance

Baker Steel Resources Trust

14

ASSET CLASS

/TYPE

UNDERLYING

HOLDING DESCRIPTION

Absolute Return Apollo Structured

Opportunities

This fund brings together a collection of absolute return strategies to deliver long term

positive returns regardless of market conditions.

Absolute Return Henderson UK Absolute

Return

The fund looks to make a positive return regardless of the direction of the UK market.

The approach uses the ability to go both long and short to makes absolute returns and

control the overall volatility of the portfolio.

Absolute Return Natixis H2O Multi

Returns

H2O is a boutique manager that specialises in global macro strategies.

The approach looks to generate positive returns regardless of market conditions using the

full range of investment options across global markets.

Absolute Return Invesco Global Targeted

Return

The fund aims to achieve a positive total return in all market conditions over a rolling 3 year

period and specifically targets a return of 5% per annum above UK cash rates and aims to

achieve this with less than half the volatility of global equities.

With total flexibility to invest across asset classes, regions and currencies this ‘macro’ fund

aims to invest into 20-30 underlying global trends with the aim that each of these strategies

adds a small, incremental and uncorrelated profit.

Absolute Return Jupiter Strategic Reserve

The Fund aims to provide positive investment returns in all market conditions over the

medium to long term. The investment team seek to exploit market inefficiencies through

active allocation to highly diversified market positions.

The Fund can take long and short positions in markets, securities and groups of securities

through derivative contracts.

Absolute Return Newton Real Return

This unconstrained fund aims to produce positive returns over rolling three year periods by

investing in a multi asset strategy which invests in a combination of ‘conventional’ assets,

such as equities and bonds, as well as derivatives.

The fund also aims to protect the portfolio from significant capital loss with volatility

expected to be between that of bonds and equities over the long term.

Absolute Return OMGI Global Equity

Absolute Return

The objective of the fund is capital appreciation while closely controlling risk. In addition, the

fund intends to deliver absolute returns that have a low correlation with equity and bond

markets, through a market neutral portfolio of global equity stocks.

The investment process is designed to exploit market inefficiencies and is based on a

proprietary multi-factor return model. The process calculates a forecast return for each stock

and the resulting portfolio is optimised in terms of risk, cost and return.

HOLDINGS RATIONALE

15

ASSET CLASS

/TYPE

UNDERLYING

HOLDING DESCRIPTION

Absolute Return Standard Life GARS

The Standard Life Investments Global Absolute Return Strategies Fund aims to provide

positive investment returns in all market conditions over the medium to long term.

It exploits market inefficiencies through active allocation to a diverse range of market

positions using a combination of traditional assets (such as equities and bonds) and

investment strategies based on advanced derivative techniques, resulting in a highly

diversified portfolio.

Absolute Return Threadneedle Credit

Opportunities

The fund looks to deliver returns of 3.5% per annum in excess of 1m Euro Deposit Rate.

The approach looks at the full spectrum of opportunities within the fixed interest universe

while carefully managing the potential for losses.

Absolute Return Threadneedle UK Absolute

Alpha

The fund looks to make a positive return regardless of the direction of the UK market.

The approach uses the ability to go both long and short to makes absolute returns and

control the overall volatility of the portfolio.

Bond GAM Star Credit

Opportunities

The fund looks to focus on investment grade companies to keep default risk and looks for

opportunities across the entire capital structure.

While much of the fixed interest market looks expensive, this fund specifically is focused on

the financial sector where there continues to be significant restructuring which brings

opportunity. This fund gives exposure to floating rate bonds which should give some

protection when interest rates start to rise.

Bond JPM Income Opportunity

The fund looks to deliver returns above GBP Libor through investment in fixed interest and

currencies.

The fund takes an opportunistic and flexible approach with a strong focus on capital

preservation.

Bond Jupiter Strategic Bond

The fund looks to generate a high income & capital growth through investing globally in fixed

interest.

The manager looks to balance risk and reward and combines carefully analysing each

company opportunity with the current macro environment.

Bond Insight Absolute Credit

The Absolute Insight Credit fund aims to deliver absolute returns from fixed interest

investments regardless of market conditions.

The fund take a flexible approach across the entire fixed interest spectrum to generate

returns.

16

ASSET CLASS

/TYPE

UNDERLYING

HOLDING DESCRIPTION

Bond Muzinich Long Short Credit

Fund

The investment objective of the Fund is to achieve absolute returns over a three to five year

period on a risk-adjusted basis by investing primarily in corporate credit high yield debt

securities.

Managed by their US credit team, this fund leverages off the experience and expertise of the

firm which is conservative in nature.

Bond RLAM Duration Hedged

Credit

The Duration Hedged Credit Fund aims to achieve outperformance from corporate bonds,

while using derivatives to protect against changes in interest rates.

The fund leverages off the very strong credit research capability at Royal London and looks

to make positive returns regardless of the market environment as the return is generated

through strong stock selection rather than on taking views and positions on interest rate

moves.

Bond RLAM Short Duration High

Yield Bond

The fund aims to produce a strong risk adjusted return by investing in short dated high

yielding fixed interest securities issued from a universe of globally diversified companies.

Equity Argonaut European Alpha

Fund

This fund has a concentrated portfolio of stocks with a bias towards those companies that

show positive momentum in their earnings.

We have become much more confident in Europe of an improving economic outlook

delivering stronger equity market returns.

Equity Coupland Cardiff Japan

Alpha

Managed by Jonathan Dobson, who has extensive experience in Japanese equity markets,

the CC Japan Alpha fund offers investors a concentrated, high conviction exposure to Japan.

With the arrival into power of Shinzō Abe, we are encouraged by his determination to revive

the Japanese economy with the help of a huge QE package and much needed economic

reforms.

Equity Credit Suisse Global Equity

Autocall 21.25%

This 6yr structured note provides a fixed return of 21.25% should a basket of developed

equity indices close higher after 1yr.

If this is not met, the return rolls to the following year.

Equity

Fidelity US, UK, Europe ex

UK, Pacific ex Japan, Japan

& Emerging Markets

Passive Funds

These holdings give passive exposure a wide range of global equity regions

17

ASSET CLASS

/TYPE

UNDERLYING

HOLDING DESCRIPTION

Equity GAM Star Continental

European

The fund looks to deliver capital growth by investing in European equities, excluding the UK.

The fund uses a concentrated, bottom up approach that typically identifies quality growth

companies.

Equity Henderson European Focus

The Henderson European Focus Fund is a concentrated ‘best ideas’ portfolio with the

flexibility to invest across all industries in the European equity market.

The fund has the freedom to invest across a European (excluding UK) stock universe. It is

weighted by conviction rather than benchmark and has a bias towards larger companies to

exploit longer term structural and sector themes.

Equity Hermes Asia Ex Japan Fund

Managed by Jonathan Pines at Hermes, this fund has the flexibility to invest across the

region as well as across the market capitalisation spectrum.

With the Fund takes a multi cap approach with a heavy bias towards value.

Equity Legg Mason Japan

This fund focuses on the changes within Japanese economy and society and looks to invest in

long term themes and structural economic changes.

Having had a number of meetings with Japanese fund managers we remain very excited for

the potential equity returns, once the strength in the economy becomes more apparent and

is appreciated by the wider market.

Equity Lyxor Nikkei 400 GBP

Hedged ETF The ETF looks to track the performance of the Nikkei 400 Index in Japan

Equity Neptune UK Mid Cap

The fund focuses on investing in mid and small UK companies and takes a concentrated

approach with a high conviction portfolio.

The approach is very sensitive to valuations and looks to manage volatility over the business

cycle.

Equity Polar Cap Global Insurance

The fund aims to provide total returns from investing in companies involved in global

insurance.

The fund takes a concentrated and unconstrained approach that results in a portfolio that is

typically lowly correlated with boarder equity markets.

18

ASSET CLASS

/TYPE

UNDERLYING

HOLDING DESCRIPTION

Equity Polar Capital Technology

A consistently strong performer in the Technology sector, the fund is managed by the highly

experienced team at Polar Capital.

While the internet and smartphones remain the ‘hot’ areas of the market, the fund remains

well diversified across technology-related companies. These include computer software and

equipment, internet software and systems, electronic technology and other technology-

related companies.

Private Equity/

Investment Trust

Baker Steel Resources

Trust

This is an AIM listed investment company that invests in a very focused portfolio of unlisted

companies in the natural resources sector. The management team of Trevor Steel and David

Baker, qualified geologists, have, in our opinion, an exceptional pedigree in this type of

investment having formerly been part of the Mercury World Mining team.

Private Equity/

Investment Trust Infrastructure India

This is an AIM listed company investing in Indian Infrastructure projects. The company

recently underwent a management reshuffle which saw Guggenheim (GGIC) assume control.

GGIC has extensive knowledge and strong relationships and should create a stronger base

from which to grow the fund through additional fund raising and investment in a pipeline of

infrastructure projects.

Property Kames Property Income

This fund aims to deliver both capital growth and income from investment in UK commercial

property.

The fund looks away from central London to find attractively priced properties in growing

areas of the UK.

Property/

Investment Trust

Macau Property

Opportunities

One of your managers’ favourite holdings within the portfolio, this Investment Trust offers

exposure to high end and base rate development property in Macau.

The Trust has exposure to a solid portfolio of properties and with a significant supply/

demand imbalance has the opportunity for capital values to increase further.

Property/OEIC M&G Property Portfolio

Fund

The recovery in the property market, combined with strong prospects for rental growth and

capital values gives us confidence that UK commercial property has the capability to deliver

good single digit returns over the next couple of years.

M&G are significant participants in this market with the Property Portfolio Fund being

almost £4.6bn in size (Source: M&G, 31.08.15). In addition, they have a strong focus on

liquidity, which is key when investing in assets such as property.

Property/OEIC Standard Life UK Property

With a running yield in excess of 4% and an average asset size of £9m (Source: SLI) we

believe that this fund is well placed to benefit from the ongoing strength on the UK property

market and also serves as a complementary position to our other property funds.

19

For further information on Apollo and its range of Multi Asset Funds and Discretionary Managed Portfolios, please contact us Apollo Multi Asset Management LLP Second Floor Reigate Hill House 28 Reigate Hill Reigate RH2 9NG Tel: +44 (0) 203 291 2916 [email protected] www.apollomultiasset.com

This document is intended for the use of Investment Professionals only and is not for distribution to Retail Clients. Please remember that the value of your investment may fall as well as rise and is not guaranteed. You may not get back your initial investment. Past performance is not an indicator of future performance. Investment advice should be obtained from an authorised financial advisor. Issued by Apollo Multi Asset Management LLP which is a limited liability partnership registered in England and Wales under registered number OC339180 and is authorised and regulated by the Financial Conduct Authority. Registered office: Chart House, 2 Effingham Road, Reigate, Surrey, RH2 7JN. A list of members is open to inspection at the registered office.

HOLDINGS SOLD

FURTHER INFORMATION

GVO UK Focus

Neptune Japan Opportunities

Prusik Asia

Utilico

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