TT INTERNATIONAL FUNDS PLC (A Company incorporated with limited liability as an open ended umbrella investment company with variable capital under the laws of Ireland.) TT European Equity Fund TT UK Equity Fund TT Europe Ex-UK Equity Fund TT Asia-Pacific Equity Fund TT Emerging Markets Equity Fund TT Global Equity Fund TT European Long/Short Fund TT Emerging Markets Unconstrained Fund (formerly TT Horizon Equity Fund) TT Euro Zone Equity Fund (inactive) Semi-Annual Report and Unaudited Condensed Financial Statements For the Six Months Ended 31 March 2016 Company Registration No. 346579
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TT INTERNATIONAL FUNDS PLC
(A Company incorporated with limited liability as an open ended umbrella investment company with variable capital under the
laws of Ireland.)
TT European Equity Fund
TT UK Equity Fund
TT Europe Ex-UK Equity Fund
TT Asia-Pacific Equity Fund
TT Emerging Markets Equity Fund
TT Global Equity Fund
TT European Long/Short Fund
TT Emerging Markets Unconstrained Fund (formerly TT Horizon Equity Fund)
TT Euro Zone Equity Fund (inactive)
Semi-Annual Report and Unaudited Condensed Financial Statements
For the Six Months Ended 31 March 2016
Company Registration No. 346579
TT INTERNATIONAL FUNDS PLC
TABLE OF CONTENTS
GENERAL INFORMATION 1
INVESTMENT MANAGER'S REPORT 3
STATEMENT OF FINANCIAL POSITION 16
STATEMENT OF COMPREHENSIVE INCOME 21
STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE
PARTICIPATING SHARES 24
NOTES TO THE FINANCIAL STATEMENTS 27
STATEMENT OF INVESTMENTS 41
STATEMENT OF CHANGES IN THE PORTFOLIO 70
MANAGEMENT AND ADMINISTRATION 84
APPENDIX I – TOTAL EXPENSE RATIOS 85
TT INTERNATIONAL FUNDS PLC
1
GENERAL INFORMATION
Structure The following information is derived from and should be read in conjunction with the full text and definitions section of the
Prospectus.
TT International Funds plc (the “Company”) was incorporated in Ireland on 13 August 2001 as an open-ended investment
company with variable capital and segregated liability between its sub-funds, organised under the laws of Ireland as a public
limited company pursuant to the Companies Act 2014, and has been authorised by the Central Bank of Ireland (the “Central
Bank”) pursuant to the European Communities (Undertakings for Collective Investment in Transferable Securities)
Regulations, 2011, (the “UCITS Regulations”) and the Central Bank (Supervision and Enforcement) Act 2013 (Section
48(1)) (Undertakings for Collective Investment in Transferable Securities) Regulations 2015 (the “Central Bank UCITS
Regulations”). A review of the principal activities is included in the Investment Manager’s Reports on pages 3 to 15.
The Company is organised in the form of an umbrella fund with nine sub-funds, eight of which are active namely, TT
European Equity Fund, TT UK Equity Fund, TT Europe Ex-UK Equity Fund, TT Asia-Pacific Equity Fund, TT Emerging
Markets Equity Fund, TT Global Equity Fund, TT European Long/Short Fund and TT Emerging Markets Unconstrained
Fund (formerly TT Horizon Equity Fund) (each a “Fund”, collectively the “Funds”), in existence at the period end. As at 31
March 2016, TT Euro Zone Equity Fund remains inactive.
Launch Date Launch Price Currency
TT European Equity Fund
Class A 17 September 2001 €10.00 per Share EUR (€)
Class B 11 October 2006 €10.00 per Share EUR (€)
Class D 28 May 2009 €10.00 per Share EUR (€)
TT UK Equity Fund
Class A 01 April 2004 £10.00 per Share GBP (£)
Class B 27 May 2008 £10.00 per Share GBP (£)
TT Europe Ex-UK Equity Fund
Class A 14 May 2004 £10.00 per Share GBP (£)
Class C 21 June 2012 €10.00 per Share EUR (€)
Class D 20 March 2014 €10.00 per Share EUR (€)
Class E 09 July 2014 US$10.00 per Share USD ($)
Class F 07 April 2014 US$10.00 per Share USD ($)
Class H 23 April 2014 £10.00 per Share GBP (£)
Class L 17 November 2015 €10.00 per Share EUR (€)
TT Asia-Pacific Equity Fund
Class A1 27 July 2009 US$10.00 per Share USD ($)
Class E2 19 June 2012 £10.00 per Share GBP (£)
TT Emerging Markets Equity Fund
Class A1 29 March 2011 US$10.00 per Share USD ($)
Class A2 29 August 2014 US$10.00 per Share USD ($)
TT Global Equity Fund
Class A1 06 August 2015 US$10.00 per Share USD ($)
Class A2 30 June 2014 US$10.00 per Share USD ($)
Class C 04 December 2014 £10.00 per Share GBP (£)
TT INTERNATIONAL FUNDS PLC
2
GENERAL INFORMATION (continued)
Launch Date Launch Price Currency
TT European Long/Short Fund
Class A1 01 November 2014 €10.00 per Share EUR (€)
TT Emerging Markets Unconstrained Fund
Class A1 25 June 2015 US$10.00 per Share USD ($)
Class A2 25 June 2015 US$10.00 per Share USD ($)
*Launched during the period.
All the above share classes are listed on the official listing of the Irish Stock Exchange with the exception of Classes E, F, H
and L on TT Europe Ex-UK Equity Fund, all classes on TT Global Equity Fund, all classes on TT European Long/Short
Fund and all classes on TT Emerging Markets Unconstrained Fund.
Other Information
The Prospectus and a complete list of the portfolio changes are available free of charge at the German paying and
information agent Marcard, Stein & Co AG, Ballindamm 36, 20095 Hamburg, Germany. These documents, as well as the
key investor information documents (“KIIDs”), published in Switzerland on 21 April 2016, the Memorandum and Articles of
Association, the annual and semi-annual reports are also available free of charge from the Swiss representative, First
Independent Fund Services AG.
TT INTERNATIONAL FUNDS PLC
INVESTMENT MANAGER’S REPORT
For the six months ended 31 March 2016
3
Markets
Global equity markets initially rallied at the start of Q4, but struggled towards the end of the quarter as investors worried that
the intensifying oil price rout was a harbinger of slower global growth. In the US, strong employment growth and core
inflation close to the 2% target prompted the Federal Reserve (Fed) to raise interest rates for the first time in almost a decade.
Meanwhile, the European Central Bank (ECB) demonstrated that it is a long way from following the Fed on the path to
higher rates. In fact, the bank decided to extend its quantitative easing programme by six months to March 2017. However,
this action underwhelmed the market as the central bank failed to increase its monthly quantitative easing purchases from
€60bn a month. There were important developments in China, where the People’s Bank of China (PBoC) announced that the
renminbi will now be measured against a basket of currencies rather than just the US dollar. This paved the way for a
weakening of the currency. Elsewhere, a number of Emerging Markets had another bruising quarter, particularly Brazil. Fitch
Ratings downgraded the country’s debt to junk and its widely respected finance minister was replaced. Finally, Japanese
equities performed well over the quarter as investors cheered further yen weakness.
Q1 brought significant volatility for global equities, which tumbled through the first 6 weeks of the year amid mounting
concern over China’s slowdown and the second order effects of the oil price rout. Equities then rallied towards the end of the
quarter following a surge in the oil price and signs of stabilisation in the Chinese economy. The rally was led by stocks with
exposure to Emerging Markets and commodities. Meanwhile, there was profit taking in last year’s winners. At its latest
meeting the US Fed sent a far more dovish signal than was expected, with Yellen citing external developments as the reason
for a more cautious path to rate hikes. This helped to weaken the dollar, improving risk appetite for Emerging Market
equities. Meanwhile, following a marked deterioration in eurozone economic data, Mario Draghi unleashed a larger than
expected package of measures to stimulate the region’s economy, raising monthly QE purchases to €80bn a month. In
contrast to Q4, Japanese stocks suffered in the first quarter of 2016, due in part to yen strength.
TT European Equity Fund 1 October 2015 – 31 March 2016
For the six months to the end of March 2016 the fund produced a net return of -4.4% compared with the MSCI Europe Index
return of -2.0%.
Fund
MSCI
Europe
Six months to March 31, 2016 -4.4 -2.0
Q1 – 2016 -10.1 -6.9
Q4 – 2015 6.3 5.4 * All returns shown net of fees
Performance
The fund underperformed over the period as strong relative returns in Q4 were outweighed by underperformance in Q1.
Outperformance in 4Q15 stemmed from superior stock selection, notably in the Consumer, Industrials and Telecoms sectors.
In Consumer Discretionary, the fund benefited from holding Danish jeweller Pandora, which continues to demonstrate strong
growth momentum.
French distiller Pernod-Ricard led outperformance in the Consumer Staples sector after it posted better than expected sales.
Gamesa was the biggest winner in the Industrials sector. The Spanish wind turbine manufacturer released Q3 results that beat
consensus on earnings and orders.
Security selection was disappointing in Materials, notably Anglo-Australian miner BHP Billiton, which faces litigation
following a mining dam failure in Brazil that led to fatalities and an environmental disaster. There was also a cash benefit to
the fund from the receipt of a withholding tax reclaim in the period.
In 1Q16 the fund saw negative attribution in most sectors due to aggressive rotational market forces. This rotation was
catalysed by profit taking in last year’s winners and short covering in the Oil and Materials sectors.
TT INTERNATIONAL FUNDS PLC
INVESTMENT MANAGER’S REPORT (continued)
For the six months ended 31 March 2016
4
TT European Equity Fund 1 October 2015 – 31 March 2016 (continued)
Performance (continued)
Deutsche Bank was the fund’s biggest loser over the quarter. The German Bank suffered due to concerns that negative rates
would lead to net interest margin pressure.
A number of UK holdings such as Dixons Carphone and Barratt suffered as Brexit uncertainty weighed on sentiment.
UK pharmaceutical company Shire was another loser in Q1. Since announcing an acquisition of Baxalta, Shire has been
targeted by the risk arbitrage community, with these investors shorting Shire and buying Baxalta. However, this phenomenon is
coming to an end.
Spanish wind turbine manufacturer Gamesa was a notable winner for the fund after it was bid for by Siemens. Gamesa is a
strategic asset as the wind turbine industry is consolidating. Elsewhere, the fund benefited from not owning Novartis in the
Health Care sector. We had previously exited the position fearing earnings downgrades, which have now come about.
In terms of sector positioning, the fund was hurt by being underweight Materials and Energy, and overweight Health Care.
Portfolio
The portfolio is not especially geared to an accelerating global economy because that is not what the data is signaling. Indeed,
we remain in a world where global nominal GDP growth is relatively low compared to its long term history. This environment
makes it difficult for companies to achieve sales growth. It also means that economies can easily stall and fall back into
recession. That is not our central case, but it is a clear risk. Thus, we continue to deploy our risk budget in stock selection and
hold companies that are well placed to navigate their way through a fairly dull economic backdrop.
Given the elevated levels of risk in the market during the period, we reduced our Financials exposure. The fund cut Italian bank
Unicredit due to concerns over operating numbers and fears that it may be asked to merge with Monte Dei Paschi Di Siena,
which will need to be recapitalised in one form or another. We also sold out of UBS and pruned the position in Deutsche Bank.
In the current climate we expect investment banking results to be poor. Moreover, volatility is unlikely to encourage UBS’
private bank clients to invest in fee paying areas such as bonds and equities.
We are now underweight the Financials sector. The reason we are not more aggressively underweight is that measures recently
announced by the ECB will allow banks to refinance assets at a very favourable rate, offsetting pressure on net interest margins
and potentially boosting profitability. If earnings begin to stabilise, the sector could start to outperform. Moreover, the sector
looks very cheap compared to history and other sectors: many Financials stocks have cash dividend yields of 5.5%-6%.
The fund also remains underweight the Materials sector. This has been painful so far in 2016, but we are not inclined to
increase our weighting here as most tradable commodities still seem chronically oversupplied.
Elsewhere in the portfolio, we have been opportunistically buying or topping up in high-quality businesses such as
Scandinavian Tobacco and Bayer.
Other recent purchases include GEA Group and Hikma. The former is a German manufacturer of equipment used in food and
pharmaceutical production. After a period of slack orders, demand for these products appears to be improving. The latter is a
UK-listed generics drug company. We were offered a window of opportunity to invest in Hikma due to market dissatisfaction
with a deal to acquire a peer. We believe that this deal will lead to substantial cost synergies and will enhance Hikma’s drug
pipeline. At the time of purchase, we paid a market multiple for mid-teens earnings growth.
TT INTERNATIONAL FUNDS PLC
INVESTMENT MANAGER’S REPORT (continued)
For the six months ended 31 March 2016
5
TT UK Equity Fund 1 October 2015 – 31 March 2016
For the six months to the end of March 2016 the fund produced a net return of 3.9% compared with the FTSE All-Share Index
return of 3.5%.
Fund
FTSE All-
Share
6 months to Mar 31, 2016 3.9 3.5
Q1 – 2016 -2.2 -0.4
Q4 – 2015 6.2 4.0 * All returns shown net of fees
Performance
The fund outperformed over the period as strong relative returns in 4Q15 were partially offset by underperformance in 1Q16.
Outperformance in 4Q15 stemmed from superior stock selection in the Consumer, Industrials and Financials sectors.
Dixons Carphone was the biggest winner in the Consumer Services sector. The retailer posted results that beat consensus,
primarily driven by strong revenue growth and earnings before interest and tax (EBIT) margin gains in the UK due to merger
synergies.
Plastic packaging company RPC led outperformance in the Industrials sector. Our investment case is based on the view that
RPC can consolidate an incredibly fragmented industry. In line with this, the company announced an acquisition in December.
In the Consumer Goods sector, the fund benefited from owning retirement housebuilder McCarthy & Stone. A combination of
gentle house price inflation and benign conditions for land buying should allow the company to sustain high returns for some
time.
The fund gained from not owning Barclays in the Financials sector. The bank is seeing a weaker outlook for its investment
banking division and higher costs due to the implementation of structural reforms.
In 1Q16 the fund saw negative attribution in most sectors due to aggressive rotational market forces. This rotation was
catalysed by profit taking in last year’s winners and short covering in the Oil and Materials sectors.
In the Oil & Gas sector, the fund benefited from holding BG Group, which traded higher as its deal with Shell completed.
Industrial equipment rental company Ashtead suffered in the Industrials sector as investors were disappointed with its capex
guidance and worried that the US construction cycle is maturing.
As traditional higher-beta cyclicals, a number of holdings suffered in the Financials sector when markets sold off at the start of
the quarter.
In terms of sector positioning, the fund gained from being underweight Financials and overweight Consumer Goods. There was
also a positive impact from holding cash when equity markets fell at the beginning of the quarter.
Portfolio
We believe that the recent rally and rotational forces have largely run their course. Consequently, we have started to use the
rally to reduce some of the portfolio’s exposure to cyclicals, financials and mid-cap names.
In the Financials sector, we have sold out of HSBC and Prudential. Both companies have significant exposure to Asia and we
now believe that HSBC’s dividend is increasingly at risk.
TT INTERNATIONAL FUNDS PLC
INVESTMENT MANAGER’S REPORT (continued)
For the six months ended 31 March 2016
6
TT UK Equity Fund 1 October 2015 – 31 March 2016 (continued)
Portfolio (continued)
We also sold automotive retail and service company Inchcape. The business makes 80% of its profits from 4 markets:
Australia, Singapore, Hong Kong and the UK. All face growing headwinds. In Australia, Inchcape imports cars from Japan and
is likely to have to take a margin hit once its FX hedging rolls off as the Australian dollar has been very weak. In Singapore,
the company is currently seeing strong growth due to the certificate entitlement renewal process, but this growth will plateau
next year and will start to slow the year after that. In Hong Kong, Inchcape has been helped by a commercial vehicle scrappage
scheme, but the passenger vehicle business could come under more pressure as Asian economies slow. Finally, there is a risk
that car sales begin to slow in the UK after several strong years.
Elsewhere in the portfolio we trimmed cruise operator Carnival. Against a deteriorating macro backdrop, we have to be
mindful that it is a cyclical stock. Moreover, its European business faces challenges, notably US consumers’ fears about
terrorism and the refugee crisis in the Mediterranean.
These sales have largely been used to raise cash, but we did add to Roche, and also initiated new positions in Vodafone,
Hikma, Unite and Scandinavian Tobacco, which is extremely cheap.
Vodafone is seeing a progressive recovery in service revenue growth, while management have guided for margin expansion.
The company has been investing heavily in Project Spring, but this is starting to tail off. Once this capex drops off, the
company should have a FCF yield of 6-7%, more than covering its dividend. We prefer Vodafone to other big yielders such as
Oil and Mining, where we remain concerned about the dividend cover.
Hikma is a UK-listed generics drug company. We were offered a window of opportunity to invest in Hikma due to market
dissatisfaction with a deal to acquire a peer. We believe that this deal will lead to substantial cost synergies and will enhance
Hikma’s drug pipeline. At the time of purchase, we paid a market multiple for mid-teens earnings growth.
Unite Group is the UK’s biggest player in purpose built student accommodation. There is an interesting structural imbalance
between supply and demand in the student accommodation market. Indeed, it is estimated that student numbers will grow by
60,000 per annum for the next 3 years, while the supply of student accommodation will grow by only 30,000 per annum over
the same timeframe. That growth in student numbers is skewed towards middle and upper tier universities, where Unite has
much of its exposure. Being skewed towards these universities is also beneficial because they tend to be located in older cities
where it is extremely difficult to build student accommodation in the middle of town. This means that supply should continue
to be limited. Unite’s portfolio is valued at a 5.5% yield, with almost zero cyclicality in the income stream. It has a strong
development pipeline and is run very conservatively, with a focus on cashflow.
TT Europe Ex-UK Equity Fund 1 October 2015 – 31 March 2016
Performance
For the six months to the end of March 2016 the fund produced a net return of 5.2% compared to the MSCI Europe ex UK
Index return of 6.3%.
Fund
MSCI
Europe ex
UK
6 months to Mar 31, 2016 5.2 6.3
Q1 – 2016 -2.0 0.1
Q4 – 2015 7.3 6.2 * All returns shown net of fees
TT INTERNATIONAL FUNDS PLC
INVESTMENT MANAGER’S REPORT (continued)
For the six months ended 31 March 2016
7
TT Europe Ex-UK Equity Fund 1 October 2015 – 31 March 2016 (continued)
Performance
The fund underperformed over the period as strong relative returns in Q4 were outweighed by underperformance in Q1.
Outperformance in 4Q15 stemmed from superior stock selection, notably in the Industrials, Consumer and Telecoms sectors.
Gamesa was the biggest winner in the Industrials sector. The Spanish wind turbine manufacturer released Q3 results that beat
consensus on earnings and orders.
In Consumer Discretionary, the fund benefited from holding French automaker Renault, which traded higher on improving
sales momentum and speculation that Nissan would raise its stake.
In the Consumer Staples sector, the fund gained from not owning Swiss food and beverage company Nestle, which released
disappointing Q3 results.
In terms of sector positioning, the positive impact of being overweight I.T. was outweighed by the negative effect of being
underweight Consumer Staples and overweight Health Care.
In 1Q16 the fund saw negative attribution in most sectors due to aggressive rotational market forces. This rotation was
catalysed by profit taking in last year’s winners and short covering in the Oil and Materials sectors.
The fund underperformed over the period as strong relative returns in Q4 were outweighed by underperformance in Q1.
Outperformance in 4Q15 stemmed from superior stock selection, notably in the Industrials, Consumer and Telecoms sectors.
Gamesa was the biggest winner in the Industrials sector. The Spanish wind turbine manufacturer released Q3 results that beat
consensus on earnings and orders.
In Consumer Discretionary, the fund benefited from holding French automaker Renault, which traded higher on improving
sales momentum and speculation that Nissan would raise its stake.
In the Consumer Staples sector, the fund gained from not owning Swiss food and beverage company Nestle, which released
disappointing Q3 results.
In terms of sector positioning, the positive impact of being overweight I.T. was outweighed by the negative effect of being
underweight Consumer Staples and overweight Health Care.
In 1Q16 the fund saw negative attribution in most sectors due to aggressive rotational market forces. This rotation was
catalysed by profit taking in last year’s winners and short covering in the Oil and Materials sectors.
Deutsche Bank was the fund’s biggest loser over the quarter. The German Bank suffered due to concerns that negative rates
would lead to net interest margin pressure. Another loser in the Financials sector was Italian asset manager Anima. Investors
were concerned that the recent market turmoil will drive down management and performance fees. There were also fears about
client leakage and deposit withdrawals, mainly at Monte Dei Paschi Di Siena, the largest distributor of Anima’s mutual funds.
There was a negative impact from not owning Siemens. Shares in the German industrial conglomerate have risen since the
company increased its profit target for 2015-16.
German defence and automotive group Rheinmetall was the fund’s biggest winner after its results beat expectations. Another
notable winner was Spanish wind turbine manufacturer Gamesa after it was bid for by Siemens. Gamesa is a strategic asset as
the wind turbine industry is consolidating. Danish jeweller Pandora also continued to perform well as it reported a 40% rise in
2015 revenues and outlined store openings for the coming years.
In terms of sector positioning, the fund suffered from being underweight super-cap Consumer Staples, which we believe to be
fairly valued, and underweight Materials, where fundamentals remain challenged.
TT INTERNATIONAL FUNDS PLC
INVESTMENT MANAGER’S REPORT (continued)
For the six months ended 31 March 2016
8
TT Europe Ex-UK Equity Fund 1 October 2015 – 31 March 2016 (continued)
Portfolio
The portfolio is not especially geared to an accelerating global economy because that is not what the data is signaling. Indeed,
we remain in a world where global nominal GDP growth is relatively low compared to its long term history. This environment
makes it difficult for companies to achieve sales growth. It also means that economies can easily stall and fall back into
recession. That is not our central case, but it is a clear risk. Thus, we continue to deploy our risk budget in stock selection and
hold companies that are well placed to navigate their way through a fairly dull economic backdrop.
Given the elevated levels of risk in the market during the period, we reduced our Financials exposure. The fund cut Italian
bank Unicredit due to concerns over operating numbers and fears that it may be asked to merge with Monte Dei Paschi Di
Siena, which will need to be recapitalised in one form or another. We also sold out of UBS and pruned the position in
Deutsche Bank. In the current climate we expect investment banking results to be poor. Moreover, volatility is unlikely to
encourage UBS’ private bank clients to invest in fee paying areas such as bonds and equities.
We are now underweight the Financials sector. The reason we are not more aggressively underweight is that measures recently
announced by the ECB will allow banks to refinance assets at a very favourable rate, offsetting pressure on net interest
margins and potentially boosting profitability. If earnings begin to stabilise, the sector could start to outperform. Moreover, the
sector looks very cheap compared to history and other sectors: many Financials stocks have cash dividend yields of 5.5%-6%.
The fund also remains underweight the Materials sector. This has been painful so far in 2016, but we are not inclined to
increase our weighting here as most tradable commodities still seem chronically oversupplied.
Elsewhere in the portfolio, we have been opportunistically buying or topping up in high-quality businesses such as
Scandinavian Tobacco and Bayer.
Other recent purchases include GEA Group and Hikma. The former is a German manufacturer of equipment used in food and
pharmaceutical production. After a period of slack orders, demand for these products appears to be improving. The latter is a
UK-listed generics drug company. We were offered a window of opportunity to invest in Hikma due to market dissatisfaction
with a deal to acquire a peer. We believe that this deal will lead to substantial cost synergies and will enhance Hikma’s drug
pipeline. At the time of purchase, we paid a market multiple for mid-teens earnings growth.
TT Asia-Pacific Equity Fund 1 October 2015 – 31 March 2016
For the six months to the end of March 2016 the fund produced a net return of 9.4% compared to the MSCI Asia Pacific ex
Japan Index return of 7.2%.
Fund
MSCI Asia
Pacific ex Japan
6 months to Mar 31 2016 9.4 7.2
Q1 – 2016 1.1 1.9
Q4 – 2015 8.2 5.2 * All returns shown net of fees
Performance
The fund outperformed over the period as strong relative returns in 4Q15 were partially offset by underperformance in 1Q16.
Outperformance in Q4 stemmed from superior stock selection in China, Indonesia, Australia, Thailand and Hong Kong.
Baidu was a major winner in China. The internet search giant announced a strong quarter and an encouraging outlook.
Property developer Pakuwon Jati was the fund’s biggest winner in Indonesia. With regulatory concerns fading and rates likely
to come down, investors became more optimistic on the Indonesian property sector.
Bangkok Airways performed well in Thailand following its Q3 results.
TT INTERNATIONAL FUNDS PLC
INVESTMENT MANAGER’S REPORT (continued)
For the six months ended 31 March 2016
9
TT Asia-Pacific Equity Fund 1 October 2015 – 31 March 2016 (continued)
Performance (continued)
The fund gained from holding AIA Group in Hong Kong after the insurance company released its 3Q15 key operational
metrics, which showed 25% growth in the value of new business in constant currency terms.
In Q1, positive stock selection in the Philippines, Taiwan, Korea and India was outweighed by disappointing stock selection in
Australia and negative currency effects in Australia, Malaysia and Singapore. These currencies were among last year’s biggest
losers, but have rallied in recent weeks amid broad-based dollar weakness and commodity strength. This rally hurt the fund in
relative terms due to its lack of holdings in these countries.
In Taiwan, camera lens module manufacturer Largan rebounded from oversold levels. We had taken the opportunity to add to
the position near the lows.
A popular trade in the Australian Financials sector has been to be overweight Macquarie and underweight the commercial
banks. However, there were rotational forces at play in Q1 and Macquarie suffered from profit taking. It is now trading below
some of the commercial banks, despite the fact that half its business is asset management, which should attract a higher
multiple.
Portfolio
The fund continues to navigate its way through the current market volatility by focusing on leading companies with strong
management teams in structurally attractive industries. Despite its superior quality and growth characteristics, the fund remains
cheaper than the index on a price/earnings (P/E) basis due to its strong valuation discipline.
We remain overweight those countries that are key beneficiaries of cheaper oil, including the Philippines, Pakistan and India,
and underweight those that are exposed to commodities, notably Singapore, Malaysia and Australia. Exposure to India was
increased over the quarter through the purchases of Bajaj Finserve and UPL.
Bajaj Finserve (BJFIN) is the financial holding company of the Bajaj Group. The main assets are its 58% holding in Bajaj
Finance (BAF – a diversified Non-Banking Financial Company lending across the consumer spectrum and to SMEs), its 74%
stake in Bajaj Allianz Life Insurance (BALI), and its 74% stake in Bajaj Allianz General Insurance (BAGI).
Each of the three main businesses has attractive long term growth prospects, especially BAF and BAGI. BAF is one of the only
Financials that has seen earnings upgrades this year. This has been reflected in the share price of BAF, but not that of BJFIN. In
the short term, we expect a re-rating in BJFIN to correct this anomaly. Longer term we expect continued above market EPS
growth driven by BAF and BAGI.
UPL is the world’s 11th largest agrochemicals company with 28 manufacturing locations across 9 countries. It has recently
moved to buy out the shares it does not own in subsidiary Advanta, a seeds company. UPL has grown revenue every year since
2003 and increased EBITDA in all but one year over that timeframe. This was in FY10, when the Global Financial Crisis was
still having an impact. We believe UPL can continue to grow earnings as it is rapidly gaining market share in LatAm. Margins
in this region are below company average, but should improve due to increasing economies of scale. UPL will also benefit
from lower oil prices as many of its raw material inputs are petrochemical products. Moreover, the company is increasing the
proportion of sales of higher margin products in its ‘innovation index’ (products launched within the last 4 years). Finally, the
company will benefit from currency stabilisation as 75% of its sales are outside India. It has been growing a lot faster in
constant currency terms than in reported terms due to weakness in currencies such as the real and the euro. But with signs that
these currencies are stabilising, reported numbers should get a boost over the coming months. Given the company’s quality
attributes, valuation looks very cheap at 12.9x 2017 expected earnings.
Conversely, exposure to Thailand was reduced over the period as we sold Bangkok Airways. We felt there was limited upside
for the stock following poor results. We also became concerned about management’s long term vision for the company. From a
top-down perspective, there are a number of reasons to be negative on Thailand. Indeed, the political backdrop continues to be
unhelpful: if the king dies there will be a power struggle, but as long as he lives the army will cling onto power. Either way
there will not be a return to democracy anytime soon. On the macro front, the Thai economy is rapidly losing export share,
particularly to Vietnam. Many firms are simply shutting up shop in Thailand and moving their operations to Vietnam. Partly as
a result of this, industrial production is down even on 2011 levels. This is an economy that is deindustrialising before it has
actually become rich.
TT INTERNATIONAL FUNDS PLC
INVESTMENT MANAGER’S REPORT (continued)
For the six months ended 31 March 2016
10
TT Emerging Markets Equity Fund 1 October 2015 – 31 March 2016
For the six months to the end of March 2016 the fund produced a net return of 10.2% compared to the MSCI Emerging
Markets Index return of 6.5%.
Fund
MSCI
Emerging
Markets
6 months to Mar 31 2016 10.2 6.5
Q1 – 2016 3.9 5.8
Q4 – 2015 6.0 0.7 * All returns shown net of fees
Performance
The fund outperformed over the period as strong relative returns in 4Q15 were marginally offset by underperformance in 1Q16.
Outperformance in Q4 stemmed almost entirely from superior stock selection, notably in EMEA (South Africa and Russia) and
Emerging Asia (China and Thailand).
In South Africa, the fund gained from not holding Telecoms company MTN Group, which was fined $5.2bn by the Nigerian
regulator for failing to disconnect unregistered SIM cards.
Baidu led outperformance in China. The internet search giant announced a strong quarter and encouraging outlook.
More generally, the fund benefited from owning beneficiaries of weaker currencies including Naspers and Suzano.
In Q1, positive stock selection in Emerging Asia was outweighed by disappointing security selection in Brazil, South Africa
and Russia, as well as adverse currency effects.
Philippines-based Security Bank was the biggest winner in Asia. The shares outperformed after an announcement that The
Bank of Tokyo-Mitsubishi UFJ and Security Bank had agreed on a “strategic partnership” to take advantage of growing trade
links within Asia. BTMU will acquire a 20% stake in Security Bank, making it the second largest shareholder. Importantly, it
paid an 80% premium to Security Bank’s current share price. Security Bank also recently released earnings that beat
expectations. We have reduced the position after it hit our price target.
Pulp exporter Suzano suffered as the Brazilian real strengthened and pulp prices fell faster than anticipated.
Portfolio
As with any period of extreme volatility, Q1 presented an opportunity for patient investors to upgrade their portfolios. Indeed,
we managed to pick up some very high-quality companies with strong structural growth potential at attractive valuations. These
included Luxoft, UPL, Bajaj Finserve, Alibaba, CA Immobilien and Cosmax. All had sold off unfairly in our view, given their
attractive exposure to exciting structural growth themes.
Luxoft is a software developer that works very closely with investment banks and automotive companies. It was hit hard on
concerns about capital and funding levels at its largest client, Deutsche Bank. This allowed us to initiate a position at what we
feel is a compelling valuation for a company that offers top line growth potential of 20% p.a over the next few years.
UPL is the world’s 11th largest agrochemicals company with 28 manufacturing locations across 9 countries. It has recently
moved to buy out the shares it does not own in subsidiary Advanta, a seeds company. UPL has grown revenue every year since
2003 and increased EBITDA in all but one year over that timeframe. This was in FY10, when the Global Financial Crisis was
still having an impact. We believe UPL can continue to grow earnings as it is rapidly gaining market share in LatAm. Margins
in this region are below company average, but should improve due to increasing economies of scale. UPL will also benefit
from lower oil prices as many of its raw material inputs are petrochemical products. Moreover, the company is increasing the
proportion of sales of higher margin products in its ‘innovation index’ (products launched within the last 4 years). Finally, the
company will benefit from currency stabilisation as 75% of its sales are outside India. It has been growing a lot faster in
constant currency terms than in reported terms due to weakness in currencies such as the Real and the Euro. But with signs that
these currencies are stabilising, reported numbers should get a boost over the coming months. Given the company’s quality
attributes, valuation looks very cheap at 12.9x 2017 expected earnings.
TT INTERNATIONAL FUNDS PLC
INVESTMENT MANAGER’S REPORT (continued)
For the six months ended 31 March 2016
11
TT Emerging Markets Equity Fund 1 October 2015 – 31 March 2016 (continued)
Portfolio (continued)
Bajaj Finserve (BJFIN) is the financial holding company of the Bajaj Group. The main assets are its 58% holding in Bajaj
Finance (BAF – a diversified Non-Banking Financial Company lending across the consumer spectrum and to SMEs), its 74%
stake in Bajaj Allianz Life Insurance (BALI), and its 74% stake in Bajaj Allianz General Insurance (BAGI). BJFIN offers more
exposure to the Indian consumer than other more traditional Indian Financials. We are upbeat on the Indian consumer, partly
because consumer credit remains incredibly underpenetrated and partly because a 5 year public sector pay step up will put a lot
more money in the pockets of consumers this year.
Each of BJFIN’s three main businesses has attractive long term growth prospects, especially BAF and BAGI. BAF is one of the
only Financials that has seen earnings upgrades this year. This has been reflected in the share price of BAF, but not that of
BJFIN. In the short term, we expect a re-rating in BJFIN to correct this anomaly. Longer term we expect continued above
market EPS growth driven by BAF and BAGI.
One major theme within the portfolio is its off-benchmark exposure. This reflects the fact that we believe some of the best
investment opportunities sit in countries away from the index. One example is Argentina, which should benefit from a positive
election result and a freely floating currency. Over the period, we initiated a position in Telecom Argentina. We see scope for
significant pricing power as fixed line rental charges have not increased since 1999 and are currently less than $1 a month.
Finally, we closed the Brazilian underweight during the period following political developments that could hasten the
president’s impeachment. This would usher in new leadership that could make the necessary fiscal adjustments to heave the
country out of its economic slump.
TT Global Equity Fund 1 October 2015 – 31 March 2016
For the six months to the end of March 2016 the fund produced a net return of 3.4% compared with the MSCI AC World Index
return of 5.6%.
Fund
MSCI AC
World
6 months to Mar 31 2016 3.4 5.6
Q1 – 2016 -1.2 0.4
Q4 – 2015 4.7 5.1 * All returns shown net of fees
Performance
The fund lagged its benchmark over the period, primarily due to underperformance in 1Q16.
In Q4, the fund marginally unperformed its benchmark. Superior security selection in the Industrials and Consumer Staples
sectors was offset by disappointing stock picking in Consumer Discretionary and Telecoms. There was a positive impact from
being underweight Energy and overweight I.T.
General Electric was the biggest winner in Industrials. The US conglomerate released earnings that beat estimates. There was
also news that an activist investor had acquired a stake in the business, meaning more pressure on management to execute on
cost cutting.
Japan Tobacco led outperformance in Consumer Staples after it raised its full-year guidance and dividend forecast.
Advance Auto Parts struggled in the Consumer Discretionary sector following disappointing quarterly results. Elsewhere in the
sector, US video game retailer Gamestop suffered for similar reasons.
Whilst stock picking continued to make a positive contribution in 1Q16, the strong rotational forces and reflation trades in low-
quality stocks, sectors and currencies were hard to navigate, particularly given our high-quality, low turnover, stock specific
approach.
TT INTERNATIONAL FUNDS PLC
INVESTMENT MANAGER’S REPORT (continued)
For the six months ended 31 March 2016
12
TT Global Equity Fund 1 October 2015 – 31 March 2016 (continued)
Performance (continued)
Yum Brands was the biggest winner in Consumer Discretionary, while Japan Tobacco outperformed in Consumer Staples after
it raised its full-year guidance and dividend forecast.
Internet company InterActiveCorp was a major detractor after reporting worse than expected results for Match.com and Search.
Monsanto also detracted from performance as the agrochemical company revised its guidance down.
Portfolio
The core of the portfolio consists of high-quality companies that have demonstrably created value over many years. More
specifically, the fund screens for businesses with 15 consecutive years of double digit Cash Flow Return on Investment
(CFROI) that substantially exceed their Weighted Average Cost of Capital.
The portfolio’s core holdings are also supplemented by a small number of special situation investments. Examples include
corporate spin-offs and deep value situations with fundamental industry change. The result of this highly disciplined
investment process is a focused yet well diversified portfolio of high-quality stocks with the potential for strong long-term
outperformance.
Regional and sector positioning is largely the residual effect of our high conviction stock ideas. The fund is currently slightly
underweight North America, underweight Europe and underweight the Far East ex Japan. At the sector level, the fund
decreased its exposure to European Financials by selling positions such as Partners Group, London Stock Exchange and
Anima, all of which have contributed very positively since their inclusion in the fund at its inception in July 2014. Valuations
in all cases got stretched in our opinion and all three positions were already small holdings in the fund. A position at or below
2% is at the lower threshold that we permit as we are keen to ensure that every position counts. Thus, if we cannot justify
increasing a position on valuation grounds we should exit it.
Over the period we initiated a new position in US company Scotts Miracle-Gro. The company is the domestic leader in the
production and sale of branded lawn and garden products. It also serves as Monsanto’s exclusive agent for the sale and
distribution of Roundup herbicides. The company has a largely domestic presence (81% of sales are in the US), with the
remainder being mostly concentrated in Europe. We are constructive on the business and its robust returns profile. Scotts
Miracle-Gro has generated double digit CFROI for over 15 years. This should be sustainable due to the company’s high market
share and strong brand. We believe that there will be an improvement in margins as management focus the business more on
the high margin Global Consumer side. Lower urea and fuel costs will also continue to boost margins. Finally, it is reassuring
to think that if the economy weakens significantly, to the extent that consumers decide to spend more time at home on a
‘staycation’, they are likely to spend more money on their garden. On current numbers, the shares are trading on a free cash
flow yield of 6.5%, a P/E of 18x 2016 and have a dividend yield of 3%.
The fund also initiated positions in Teledyne Technologies and Intertrust. US-based Teledyne is a very high-quality business
with strong market shares in specialist niches, particularly in measuring and detection instruments and aerospace. We have
been researching this company for a number of months and after meeting management in November in California, an attractive
entry point presented itself. We also participated in the IPO of UK-listed Worldpay Group, a payment processing provider
similar to our existing position in Global Payments. Worldpay is at the tail end of a multiyear capex program that has yielded a
technologically advanced platform on which a huge number of payments can be processed very efficiently. We have been
impressed by management and are positive that Worldpay, with its very strong platform, will continue to capture market share,
particularly in the growing online transaction market.
TT INTERNATIONAL FUNDS PLC
INVESTMENT MANAGER’S REPORT (continued)
For the six months ended 31 March 2016
13
TT European Long/Short Fund 1 November 2015 – 31 March 2016
From 1st October 2015 to its closure on 29 January 2016, the fund produced a net return of -4.1% compared with the
Eurohedge Europe LS Index return of -0.7%.
Fund
Eurohedge
Europe LS
4 months to Jan 31 2016 -4.1 -0.7
Partial Q1 – 2016 -2.8 -3.3
Q4 – 2015 -1.3 2.7 * All returns shown net of fees
Performance
This was a challenging period for the fund. Marginally better data out of China prompted a dramatic rebound in October
accompanied by a sharp rotation into the year’s underperformers, including energy, mining and commodities, and out of some
of the year’s best performers, including the European domestic cyclical plays. The portfolio lost money over the month as a
number of our shorts suffered in the rotation, offsetting good gains on the long side.
November saw more favourable conditions as European equity markets enjoyed a strong month, boosted by the prospect of
increased stimulus from the ECB, despite the terrorist attacks in Paris and generally lacklustre earnings reports. The fund was
profitable with a strong performance from our longs, and a positive performance from a number of shorts, notably in utilities,
mining and steel.
The rally in anticipation of further action from the ECB was not sustained however in the run up to the announcement of the
first rate hike in the US in December. We had reduced the gross and net in the portfolio and the book sustained only a minor
loss. The long side suffered across the board, notably in industrials and energy, but there were positive contributions from a
number of shorts, notably in materials, together with a number of industrial and mining stocks.
Many of the fund’s longs suffered in January as European equity markets saw their worst January since 2008 due to ongoing
concerns about the sustained fall in the oil price and the Chinese economic slowdown.
The fund was closed on 31st January 2016.
Portfolio
Over the period, the fund ran a number of shorts in the Capital Goods sector, where earnings momentum is dire. Poor earnings
are the result of waning revenues due to subdued end-market demand. For example, weak agricultural commodity prices are
curbing expenditure on agricultural production equipment, impacting orders at a number of companies.
We were constructive on certain parts of the domestic European recovery, which we expressed through a long position in
Peugeot. Underlying European car sales continue to accelerate and Peugeot has the added benefit of being a corporate
restructuring story.
We also favoured domestic European banks such as Lloyds and ING Group at the expense of Standard Chartered and
Commerzbank. Standard Chartered has heavy exposure to commodity lending and the Far East, while Commerzbank has
significant exposure to shipping at a time when shipping activity is at a very subdued level, as evidenced by Maersk’s profits
warning during the period.
TT INTERNATIONAL FUNDS PLC
INVESTMENT MANAGER’S REPORT (continued)
For the six months ended 31 March 2016
14
TT Emerging Markets Unconstrained Fund 1 November 2015 – 31 March 2016
For the six months to the end of March 2016 the fund produced a net return of 15.8% compared to the MSCI Emerging
Markets Index return of 6.5%.
Fund
MSCI
Emerging
Markets
6 months to Mar 31 2016 15.8 6.5
Q1 – 2016 11.2 5.8
Q4 – 2015 4.1 0.7 * All returns shown net of fees
Performance
The fund outperformed its benchmark, primarily due to superior stock selection in Emerging Asia.
Outperformance in Q4 stemmed largely from superior stock selection in Thailand, India and Indonesia.
Several winners in India and Thailand were beneficiaries of the lower oil price, notably Interglobe Aviation, which rallied
following its IPO, and Bangkok Airways.
Property developer Pakuwon Jati was the fund’s biggest winner in Indonesia. Investors became more optimistic about the
Indonesian property sector amid fading regulatory concerns and growing expectations of rate cuts. Bank Negara Indonesia –
another major winner for the fund – is also a beneficiary of lower interest rates.
Stock selection was disappointing in Mexico, notably building materials company Cemex. With a sharply weaker peso,
Cemex’s dollar debt position eroded equity holder value.
There were positive currency effects in South Africa and Indonesia, while FX hedging also added alpha.
In Q1 2016, Peruvian bank Credicorp made a substantial contribution to performance. It is an extremely well-run company
with an return on equity (ROE) of c.20%. However, it sold off dramatically going into the year end on concerns over Peruvian
sol depreciation due to weak copper prices, fears about a bad El Niño causing damage to corporate infrastructure, and worries
that the upcoming election could result in a radical leftist getting into power. The stock rebounded in Q1 as the sol stabilised, El
Niño was better than expected, and the election is now down to a run off between two candidates that are favoured by
investors.
Philippines-based Security Bank was another major winner. The shares outperformed after an announcement that The Bank of
Tokyo-Mitsubishi UFJ (BTMU) and Security Bank had agreed on a “strategic partnership” to take advantage of growing trade
links within Asia. BTMU will acquire a 20% stake in Security Bank, making it the second largest shareholder. Importantly, it
paid an 80% premium to Security Bank’s current share price. Security Bank also recently released earnings that beat
expectations.
Dubai-based port operator DP World was the largest detractor from performance. The stock suffered amid a sharp sell-off in
Middle Eastern markets as the oil price decline saw investors reduce exposure to the region. There were also concerns about a
slowdown in global trade.
Pan-Asian life insurer AIA Group was another significant detractor for the fund. With Beijing concerned about capital
outflows, it banned Chinese citizens from using a union pay credit card to purchase life insurance policies worth at least
US$5000. Investors feared that this would impact AIA’s sales. However, mainland China only accounts for some 10% of
AIA’s business, and life insurance policies can still be bought via a bank transfer or cheque.
TT INTERNATIONAL FUNDS PLC
INVESTMENT MANAGER’S REPORT (continued)
For the six months ended 31 March 2016
15
TT Emerging Markets Unconstrained Fund 1 November 2015 – 31 March 2016 (continued)
Portfolio
This is a concentrated portfolio of around 40 stocks, containing only our highest conviction ideas from across the EM universe.
At the core of the portfolio we are looking for companies that are best exposed to the attractive features of Emerging Markets,
notably strong demographics and low penetration of consumer goods and services. We believe that consumer demand in these
markets is shifting as people’s needs and aspirations evolve. The old emerging consumption stories of staples and durables,
while by no means fully played out, are being replaced by a new focus on consumption of services – especially health,
education and sophisticated financial services. Consequently, the fund targets companies that are exposed to this ‘second wave’
of consumption.
This helps to explain the fund’s significant exposure to Financials, which reflects our positive view on structural growth
opportunities in pensions, savings and insurance products, all of which remain underpenetrated. The portfolio’s lack of
exposure to Telecoms, Utilities, Health Care and Energy are largely an attempt to accommodate the Financials holdings.
Exposure in Asia is concentrated in countries that offer compelling structural growth stories due to their excellent
demographics and consumption driven economies. We are particularly upbeat on consumers in the Philippines and India, where
consumer credit remains incredibly underpenetrated. Moreover, a 5 year public sector pay step up will put a lot more money in
the pockets of Indian consumers this year. We are far less constructive on Thailand from a top-down perspective. The political
backdrop continues to be unhelpful: if the king dies there will be a power struggle, but as long as he lives the army will cling
onto power. Either way there will not be a return to democracy anytime soon. Meanwhile, the Thai economy is rapidly losing
export share, particularly to Vietnam. Many firms are simply shutting up shop in Thailand and moving their operations to
Vietnam. Partly as a result of this, industrial production is down even on 2011 levels. This is an economy that is
deindustrialising before it has actually become rich. Exposure to Thailand was reduced over the period as we sold Bangkok
Airways. We felt there was limited upside for the stock following poor results. We also became concerned about management’s
long term vision for the company.
Elsewhere we are bullish on the Mexican consumer and note that same store sales growth has been strong for many Mexican
companies. However, we struggle to find any direct consumer plays that are offering reasonable valuations. Consequently, the
fund bought two Financials stocks – Santander and Credito Real – as structural plays on the Mexican consumer. Loan growth
at Santander is solid and we are comfortable with the new management team. We believe they recently underguided and expect
them to beat their conservative guidance. We also correctly predicted that Mexico’s central bank would be forced to raise rates
due to the inflationary effects of a weaker peso. This will have positive implications for Santander’s profitability.
Finally, our recent visit to Argentina served to reinforce how positive the reform agenda of the new Macri-led government is
for the country. Argentina is home to some very well run companies that have managed to operate in incredibly difficult
conditions. We expect many of these companies to flourish now that some much needed economic orthodoxy is being
implemented. We own Telecom Argentina, the country’s leading fixed line operator, with about a third of the mobile market.
It offers excellent consumer exposure and is extremely cheap relative to international peers. Regulation has prevented Telecom
Argentina from raising the price of a fixed line subscription for many years, but recent government action to increase energy
tariffs by up to 300% suggests that the company will eventually be allowed to raise prices. Moreover, the government is trying
to rein in inflation, which is running at about 30%. As part of this effort, it is leaning on the unions to secure sub-inflation pay
rises. If the government is successful, this would improve margins at Telecom Argentina, where labour is a large proportion of
total costs.
TT International
May 2016
TT INTERNATIONAL FUNDS PLC
STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2016
16
TT European
Equity Fund
TT European
Equity Fund
TT UK Equity
Fund
TT UK Equity
Fund
TT Europe Ex-UK
Equity Fund
TT Europe Ex-UK
Equity Fund
As at As at As at As at As at As at
Note 31 March 2016 30 September 2015 31 March 2016 30 September 2015 31 March 2016 30 September 2015
€ € £ £ £ £
Assets
Financial Assets at Fair Value through Profit or Loss 1 7,627,370 9,814,243 15,641,412 15,558,686 240,652,497 283,958,337
Cash at Bank 2 164,607 66,936 952,344 718,526 5,276,618 4,509,020
The accompanying notes form an integral part of the financial statements.
TT INTERNATIONAL FUNDS PLC
STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2016 (continued)
19
Each Funds’ Net Assets Attributable to Holders of Redeemable Participating Shares (for shareholder dealing purposes), Redeemable Participating Shares issued and outstanding and Net Asset
Value per Redeemable Participating Share for the last three periods are as follows and shown in the underlying currency of each share class:
Net Asset Net Asset Net Asset
Net Shares Value per Net Shares Value per Net Shares Value per
Assets in Issue Share Assets in Issue Share Assets in Issue Share
TT European Equity Fund
Class A € 4,967,408 346,630 € 14.33 € 5,615,478 320,916 € 17.50 € 6,488,819 344,766 € 18.82
Class B € 1,725,293 181,019 € 9.53 € 2,979,644 259,292 € 11.49 € 3,187,638 257,260 € 12.39
Class C - - - € 85,659 6,400 € 13.38 € 92,134 6,400 € 14.40
Class D € 995,998 53,545 € 18.60 € 1,186,967 60,822 € 19.52 € 185,702 8,826 € 21.04
TT UK Equity Fund
Class A £16,515,278 784,997 £21.04 £16,034,708 778,826 £20.59 £16,250,149 778,994 £20.86
Class B £67,740 6,648 £10.19 £106,149 10,608 £10.01 £109,807 10,804 £10.16
TT Europe Ex-UK Equity Fund
Class A £188,921,189 7,083,141 £26.67 £178,308,048 6,973,330 £25.57 £184,632,112 6,615,824 £27.91
Class C € 42,441,107 2,552,501 € 16.63 € 137,327,619 8,074,424 € 17.01 € 100,163,288 5,297,366 € 18.91
Class D € 11,179,612 1,036,785 € 10.78 € 16,898,228 1,528,052 € 11.06 € 13,671,125 1,109,393 € 12.32
Class E US$210,172 23,365 US$9.00 US$163,226 18,100 US$9.02 US$115,779 12,000 US$9.65
Class F US$1,700,073 193,297 US$8.80 US$1,928,600 218,174 US$8.84 US$2,756,598 290,846 US$9.48
Class H £251,484 24,373 £10.32 £240,862 24,373 £9.88 £252,169 23,429 £10.76
The accompanying notes form an integral part of the financial statements.
TT INTERNATIONAL FUNDS PLC
STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2016 (continued)
20
Each Funds’ Net Assets Attributable to Holders of Redeemable Participating Shares (for shareholder dealing purposes), Redeemable Participating Shares issued and outstanding and Net Asset
Value per Redeemable Participating Share for the last three periods are as follows and shown in the underlying currency of each share class (continued):
Net Asset Net Asset Net Asset
Net Shares Value per Net Shares Value per Net Shares Value per
Assets in Issue Share Assets in Issue Share Assets in Issue Share
Income and expenses arise solely from continuing operations except for TT European Long/Short Fund which closed on 29 January 2016. There were no recognised gains and losses other
than those dealt with in the Statement of Comprehensive Income.
The accompanying notes form an integral part of the financial statements.
TT INTERNATIONAL FUNDS PLC
STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE PARTICIPATING SHARES FOR THE SIX MONTHS ENDED
31 MARCH 2016
24
TT European
Equity Fund
TT European
Equity Fund
TT UK Equity
Fund
TT UK Equity
Fund
TT Europe Ex-
UK Equity Fund
TT Europe Ex-UK
Equity Fund
Period Ended Period Ended Period Ended Period Ended Period Ended Period Ended
31 March 2016 31 March 2015 31 March 2016 31 March 2015 31 March 2016 31 March 2015
€ € £ £ £ £
Net Assets Attributable to Holders of Redeemable Participating
Shares at the beginning of the period at bid prices 9,867,748 9,475,586 16,140,857 15,510,232 293,607,189 315,048,666
Notional Foreign Exchange Movement 16 - - - - - -
Increase/(Decrease) in Net Assets Attributable to Holders of