Interim Report and Condensed Unaudited Financial Statements

Guinness Asset Management Funds plc 2 Table of contents Page Company information 3 Investment Manager's report 4 Statement of financial position 23 St...

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Guinness Asset Management Funds plc (an umbrella fund with segregated liability between sub-funds)

Interim Report and Condensed Unaudited Financial Statements For the financial period ended 30 June 2018

Guinness Asset Management Funds plc

Table of contents

Page

Company information

3

Investment Manager's report

4

Statement of financial position

23

Statement of comprehensive income

27

Statement of changes in net assets attributable to holders of redeemable participating shares

31

Statement of cashflows

33

Notes to the financial statements

37

Schedule of investments

78

Statement of significant portfolio movements

99

Appendix 1 – Fund performance and Total Expense Ratio

78

Appendix 2 – Portfolio Turnover Ratio (PTR)

115

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Guinness Asset Management Funds plc

Company information Directors of the Company

Anthony Joyce (Irish) (Independent) Edward Guinness* (British) Andrew E. Martin Smith* (British) Johnny McClintock (Irish) (Independent) David McGeough (Irish) (Independent) Timothy W.N. Guinness* (British) (Alternate Director to Edward Guinness) * Employee of the Investment Manager

Registered Office

2nd Floor, 2 Grand Canal Square Grand Canal Harbour Dublin 2 Ireland D02 A342

Manager

Link Fund Manager Solutions (Ireland) Limited 2nd Floor, 2 Grand Canal Square Grand Canal Harbour Dublin 2 Ireland D02 A342

Investment Manager and Global Distributor

Guinness Asset Management Limited 14 Queen Anne’s Gate Westminster London SW1H 9AA United Kingdom

Administrator, Registrar and Company Secretary

Link Fund Administrators (Ireland) Limited 2nd Floor, 2 Grand Canal Square Grand Canal Harbour Dublin 2 Ireland D02 A342

Independent Auditor

Deloitte Ireland LLP Chartered Accountants and Statutory Audit Firm Deloitte & Touche House 29 Earlsfort Terrace Dublin 2 Ireland D02 AY28

Irish Legal Advisors

Dillon Eustace Solicitors 33-34 Sir John Rogerson’s Quay Grand Canal Dock, Dublin 2 Ireland D02 XK09

Depositary

JP Morgan Bank (Ireland) plc JP Morgan House IFSC Dublin 1 Ireland D01 W213

Company number

450670 (Registered in Ireland)

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Guinness Asset Management Funds plc

Investment Manager's report For the financial period ended 30 June 2018 Guinness Global Energy Fund Performance summary in US Dollars: Class E compared with MSCI World Energy Index Annualised 6 months

1 year

3 years

Calendar years 5 years

2013

2014

2015

2016

2017

Fund

+10.4%

+29.2%

+1.6%

-0.2%

+24.4%

-19.1%

-27.6%

+27.9%

-1.3%

Index

+7.1%

+25.0%

+5.8%

+2.9%

+18.9%

-11.0%

-22.1%

+27.6%

+5.9%

Review The Global Energy Fund in the first six months of 2018 produced a total return of +10.4%. This compares to a total return of +7.1% for the Fund’s benchmark, the MSCI World Energy Index, and the MSCI World Index’s total return of +0.7%. The Brent spot oil price, a key driver of earnings and sentiment in the sector, rose from around $67/bl to $79/bl, whilst longer dated oil prices also increased, with the Brent five year forward oil price up from $57/bl to $63/bl. OPEC reduced oil production by 1.2m b/day at the start of 2017, and that quota cut was held consistently through the first half of 2018, helping to tighten the market. OPEC’s supply discipline was compounded by a collapse in Venezuelan production, where chronic underinvestment and poor reservoir management led to a fall of around 0.5m b/day from the start of the year. Iranian supply held up over the period, but sentiment towards prices was impacted by President Trump’s decision in May to re-introduce oil export sanctions later in the year. The US shale oil system has grown at an annualized rate of around 1.2m b/day, but infrastructure constraints are now emerging. Meanwhile, global oil demand has been strong, with growth of 1.5m b/day now expected for 2018. Against this backdrop, OPEC signalled in June their intention to raise production in the second half of 2018, to try to avoid extreme market tightness. By contrast, we saw weakness in US natural gas, the price falling over the first half of the year from $3.54/mcf to $2.97/mcf. The gas market was in undersupply for much of the period, but the prospect of a continued surge of associated gas growth (a by-product of shale oil) depressed the price. Within the portfolio, the strongest performers were generally oil focused producers with exposure to US shale oil outside the Permian basin, where local refining & infrastructure issues held back local oil prices. Oasis (+54%), Hess (+42%) and Conocophillips (+28%) were particularly strong. International, Brent oil exposed producers (Equinor +26%; CNOOC +22%) also fared well. European integrated oil and gas companies (ENI +14%; Total +13%; BP +11%) demonstrated the fruits of their focus on capital discipline, with impressively high cashflows, whilst away from the upstream, the widening of the Brent-WTI spread during much of the first half of the year was a benefit for US refiners (Valero +22%). The weaker performers in the portfolio were generally to be found in the energy service and solar sectors. Large cap diversified service companies (Halliburton -7%; Schlumberger +1%) suffered from their exposure to US onshore operations, where fears of a renewed surplus of service capacity produced share price weakness. In the solar sector, a drop in Chinese subsidies for almost all solar products being installed in the country created fears of a drop in demand (Sunpower -9%; JA Solar -9%). Activity In May we sold our position in Hess Corporation and switched to a holding in Anadarko. Hess is a US listed exploration and production company with, today, focus on US unconventional oil production in the Bakken (North Dakota), and international oil developments offshore Guyana. The company has enjoyed strong share price performance over the last twelve months, thanks to a string of exploration discoveries in Guyanese waters, and high operational leverage to the rising oil price. However, we felt these factors became fully priced into the stock, prompting our decision to sell. Anadarko is also a large diversified E&P company but one with a more attractive asset mix than Hess. In particular, the company has substantial exposure to the Delaware Basin in Texas, as well as midstream, Gulf of Mexico and East African interests. We believe that Anadarko can deliver handsome capital efficient production growth over the next 3-4 years, which should drive the stock to outperform. In the face of a much tighter oil market than expected at the start of 2018, OPEC have started unwinding their recent quota cuts. This was always promised, but previously signalled for 2019. We view an increase in OPEC production as logical, and we see it in the interests of energy investors, who we think are best served by a flattening of the oil curve: near-term oil prices stabilising to ensure that there is no oil shock to the world economy, whilst longer dated oil prices firm up, in recognition of the supply challenges caused by chronic underinvestment in non-OPEC outside the US. Consistent with OPEC’s longer term plan, we believe that long run oil prices will return to a $60-70/bl range. This is a price which is sufficient for world oil demand and US shale oil to grow while also providing acceptable economics for OPEC countries and sufficient profitability for investment in new oil projects around the world. This would be a ‘reasonable’ oil price level for all constituents of the global oil market, economic and political. Today, assuming operating and capital costs are held constant, we calculate that our portfolio of energy equities currently offers fair value assuming a long term Brent oil price in the mid to high $50s (i.e. about $5 or so below where long dated Brent oil prices currently are). Looking out two years, while we see downside risk of about 10% if energy equities were to factor in $50/bl long-term and we see around 30% upside at a $60 /bl and more like 60% upside at a $70/bl oil price. While forecasting oil prices is inherently difficult, we are comfortable that we are seeing positive results from energy companies’ recent efforts to control operating and capital costs in order to improve profitability. Our preferred method for monitoring longer term profitability is Return on Capital Employed (ROCE) while we use Free Cash Flow Return on Capital Employed (FCF Return) as our preferred measure of near term profitability movements.

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Investment Manager's report (continued) For the financial period ended 30 June 2018 Guinness Global Energy Fund (continued) Outlook (continued) ROCE is recovering from a low of 2% in 2016 to around 5% in 2018. The long run average for our portfolio is around 11% and we see good reason to believe that profitability will return to around the long run average level, just as it did after 1998 when oil prices last hit a bottom. It takes time for ROCE to improve but we have increasing confidence that this will happen. FCF return, which often acts as a leading indicator of ROCE, has rebounded sharply and is now at above average levels (based on $55/bl crude oil prices). The stock market has historically valued energy companies based on their sustainable levels of profitability whether it is delivered by self-help improvements or via increases in the long term oil price. Current energy equity valuations implies that the ROCE of our companies will not improve from the current level. If ROCE improves to 11% and the market were to pay for it sustainably, it would imply an increase in the equity valuation of around 35%. Ultimately, we see rising profitability for the Guinness Global Energy portfolio stemming from a combination of higher long dated oil prices and sustained capital discipline. After a long period of underperformance relative to the broad market, we see energy equities continuing to play catchup.

Guinness Asset Management Limited July 2018

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Investment Manager's report (continued) For the financial period ended 30 June 2018 Guinness Alternative Energy Fund (the “Fund”) Performance summary in US Dollars: Class E compared with Wilderhill Clean Energy Index Annualised 6 months

1 year

Calendar years

3 years

5 years

2013

2014

2015

2016

2017

Fund

-4.4%

+5.1%

-4.9%

+0.0%

+72.1%

-11.4%

-11.4%

-14.8%

+21.1%

Index

-1.3%

+16.7%

-2.0%

-0.9%

+58.5%

-16.9%

-10.4%

-22.1%

+39.8%

The Guinness Alternative Energy Fund was down -4.4% in the first half of 2018. This compared to a fall in the Wilderhill Clean Energy Index of 1.30%. The fund’s negative performance is mainly attributed to the performance of the fund’s solar stocks, which accounted for 19.78% of the portfolio at 30 June 2018. Following China’s decision to cap new solar project approvals for the 2018 feed-in tariff quota, forecasts of Chinese demand for solar in 2018 have fallen by 20GW which hit solar manufacturer stock prices hard on expectations of lower module pricing. We expect that reduced solar module pricing will support more installation in China than industry forecasts suggest. Activity We acquired positions in Vestas, Daqo and Acuity Brands to replace the positions sold in Senvion, JA Solar, Tianneng and Mytrah. Switching Vestas for Senvion was based on relative valuation while maintaining some wind turbine manufacturing exposure in the portfolio. As the valuations of the companies converged, holding Vestas became more appealing due to its stronger balance sheet and higher market share. We sold JA Solar as management were taking the company private. We bought Daqo, one of the lowest-cost polysilicon manufacturers. Daqo produces a high percentage of monocrystalline material which is required for production of more efficient silicon modules. As module pricing falls, higher efficiency modules ae able to maintain premium pricing and gives Daqo an advantage in pricing negotiations. Tianneng, a Chinese battery manufacturer, as explained above, had performed well and was potentially facing a price war. To replace Tianneng, we bought an LED related company, Acuity Brands that had screened well. It has high CFROIs and a low valuation. The company appeared to be unloved but with significant potential to grow back into favour in the longer term as the LED sector demonstrates its growth potential. Mytrah Energy was taken private by its management team at a substantial premium. We are still looking for a suitable stock to replace this holding. Outlook Following China’s change in its solar subsidy regime and the resultant fall in solar module prices, the demand for solar installations is likely to continue to increase year on year. The short-term shock of reduced Chinese demand means that companies will accelerate the learning curve to be able to profit with module prices between 23 and 26 US cents per W. This is less than half the price for which modules were selling in 2015. The solar market has, once again, fast-forwarded two or three years in terms of forecast pricing. At such cheap equipment prices, the number of countries is dwindling in which solar is not economically attractive compared to wholesale power prices, let alone retail power prices. We believe we are now at the point where demand will be mainly driven by installations in unsubsidised countries (or even countries that tax solar installations with import tariffs like the US). Regulatory change that lower module prices further is less likely with so few countries relying on subsidies and this should lead to a more sustainable economic environment and better visibility for solar company earnings. Global wind demand is expected to return to growth in 2018, driven by better US and Asian demand coupled with increasing offshore wind installations. China is the largest source of wind power demand and annual level of installations have reached around 20GW each year which forms the majority of Asian demand although analysts are forecasting a move upwards to 33 GW in 2019. Europe is 20% of the global wind market, with demand between 9 and 12 GW per year. North America comprises a similarly sized market, with good demand visibility through to 2020 as Production Tax Credits provide continuing albeit falling support. Developers are reaping the benefits of increased competition in the manufacturing space by getting more power out of the newer turbines for less capex. However, the power auctions sweeping the globe are also putting pressure on investor and developer returns. Nevertheless, the low $/MWh power prices wind is able to deliver, coupled with its ability to generate power overnight and not just during the day like solar, show that there is a long-term opportunity for the wind power sector. In most auctions held, a new record for that country or region was achieved and wind and solar are beginning to be the dominant force at auctions globally. Plug-in electric vehicle (EV) sales continue to increase year on year. We expect Q2 2017 will be another record quarter for plug-in electric vehicle sales given seasonal trends (our data sources lags by one quarter). The CAGR since Q1 2014 until Q1 2018 is 52.7% and the compound quarterly growth rate for the same period stands at 11.2%. The trailing 12 months market share of plug-in electric vehicles has passed 1% in most developed markets and in China, closing in on the 2% mark. The growth rate of fully-electric vehicles, ie battery electric vehicles (BEVs), has been greater than that of plug-in hybrid electric vehicles (PHEVs), which have smaller batteries with a shorter range and still have a combustion engine for when the battery is depleted. More BEVs than PHEVs are being sold today, due to China favouring BEVs. Germany is on par with Norway, meaning the largest European country might soon be the third largest EV market after China and the US. Car manufacturers have introduced more fully electric models to market in 2017 than any year before and all the main vehicle manufacturers are now developing electric vehicle ranges to compliment or even replace their existing range of internal combustion engine vehicles. Tesla’s model 3 continues to be rolled out at a slower rate than hoped, but this has not stopped other car manufacturers from bringing out new versions of older models, like the new Nissan Leaf and Renault Zoe with longer electric range. The outlook for the alternative energy sector is beginning to improve as reliance on subsidies falls and valuation levels remain at relatively low levels compared to the broad markets. The fund is positioned for the growth of the sector. Thank you for your support. Guinness Asset Management Limited July 2018

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Investment Manager's report (continued) For the financial period ended 30 June 2018 Guinness Global Money Managers Fund (the “Fund”) Performance summary in US Dollars: Class E compared with MSCI World Index Annualised 6 months

1 year

3 years

Calendar years 5 years

2013

2014

2015

2016

2017

Fund

-5.4%

+7.1%

+0.9%

+8.1%

+54.8%

+3.6%

-10.9%

-4.7%

+35.1%

Index

+0.7%

+11.7%

+9.1%

+10.6%

+27.4%

+5.6%

-0.3%

+8.2%

+23.1%

Performance The Global Money Managers Fund (class E) in the six months to 30 June 2018 produced a total return of -5.4% (USD). This compares to the return of the MSCI World Index of +0.7% and the MSCI World Financials Index of -5.8%. The performance of the Fund was held back over this period by weak returns from broad equities, negative returns from the fixed income sector and general weakness across the financial sector. Sentiment towards larger US asset managers was particularly poor. By contrast, a number of smaller cap European managers were able to maintain significant net inflows, and tended to fare better. Amongst the best performers in the Fund were: •

Polar Capital (+29.8%). Polar, which we have held since the inception of the Fund, is enjoying a period of positive expansion, under the direction of new CEO, Gavin Rochussen. In June, the company announced the hire of an experienced emerging markets team from Nordea, which has been well received. Led by Jorry Rask Noddekaer, the Nordea team were previously responsible for over USD$6bn of assets under management. The company saw AuM increase to £12bn in the year to 31 March 2018, an increase of 33% versus the previous year. Positive flows have continued in April and May, and have been particularly strong in Polar’s Global Technology strategy. Success in asset raising has translated into improved profitability, with operating profit up by 33% in the year to March 2018.



KKR (+19.8%). The most significant news for private equity firm KKR came in May, with the announcement that it would convert from a partnership to a corporation. The move is designed to capitalise on tax reforms enacted by the Trump administration, and is likely to broaden KKR’s shareholder base, since some investors are unable to invest in partnership structures. KKR’s move follows Ares Management’s conversion on 1 March 2018, becoming the first major asset manager to make the switch. Generally, alternative asset firms that derive a larger share of revenue from management fees (which includes KKR) have a greater incentive to change. KKR became a corporation on 1 July. Longer term, we like KKR strategy of reinvesting a high proportion of profits into its balance sheet, which helps to compound earnings and book value through the cycle.



Vontobel (+18.7%). We purchased Vontobel in the Fund at the start of 2017, attracted by the company’s track record in wealth management and ambitions for growth. In May, Vontobel announced the acquisition of La Roche Privatbank AG, purchased from Raiffeisen Switzerland. La Roche brings CHF16.8bn of advised client assets, which will boost Vontobel’s advised client assets by more than 30%. We believe that the similar client profile that La Roche enjoys to Vontobel (90% of AuM are in client wealth bands of >CHF 1bn; most are in Switzerland) will help to make the deal a success.

Weaker performers in the Fund included: •

Coronation Fund Managers (-26.3%). Total AuM at Coronation dipped by 4.2% over the six months to March 2018. The highest proportion of outflows came in the South African institutional division, where the local pensions industry continues to see structural outflows, given weak employment numbers and retrenchments in the formal employment sector. This leaves total AuM for Coronation at just under USD$50bn, close to the 2014 peak ($52bn). After the recent share price fall, Coronation’s equity offers a 7.7% dividend yield, which is more than three times covered.



Affiliated Managers Group (-27.3%). AMG operates as a global, diversified asset management firm, taking significant equity stakes in independent investment management boutiques. At the end of March 2018, AuM were around $830bn, spread across more than 550 underlying investment products. The company has maintained positive net inflows from alternatives and multi-asset products, but this has been outweighed in recent months by net outflows from global equities and US equities. Still, AMG generates a high level of free cashflow (around $1bn, representing a c.12% FCF yield), and for the time that the share price remains depressed, we expect the company to accelerate its share buyback programme.



Invesco (-25.9%). Operating margins at Invesco have been depressed in recent months thanks to a rise in the company’s core expenses, driven by several significant acquisitions (ETF providers Guggenheim & Source, digital platform Gemstep). Operating margin for Q1 was reported at around 26%, versus around 28% for 2017. However, the deals mean that Invesco has now become the world’s fourth largest ETF manager, and its presence in Europe and Asia should create organic growth in excess of US peers.

Activity The portfolio was actively rebalanced during the first half of 2018. No stock switches were carried out.

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Investment Manager's report (continued) For the financial period ended 30 June 2018 Guinness Global Money Managers Fund (continued) Review & outlook The first half of 2018 was weak for global equities and negative for fixed income. The MSCI World Index (proxy for global equities) was up by 0.7% and the IBOXX (IBOXIG) Corp Bond Indices (proxy for fixed income) down by 4.3% for the period. Within the asset management sector, data for US mutual fund flows (which we treat as a proxy for global flows) indicated record outflows from equity funds in 2016. Equity outflows continued in 2017, particularly in the second half of the year, but overall the picture was less severe than the year before. However, fixed income funds reported strong inflows across all four quarters in 2017, resulting in overall net flows (equity, fixed income and hybrid combined) swinging from negative in 2016 to positive in 2017. Net flows so far in 2018 have been positive. Latest Quarter Q2 2018 Q1 -18.0 13.7 -8.4 -12.7

US Mutual Fund flows ($bn) Equity Funds Bond & Income Funds Hybrid Funds Total (Data to May 2018) Index returns MSCI World Index MSCI World Financials Index IBOXX (IBOXIG) Corp Bond Indices

2018 Q4 2017 Q3 2017 Q2 2017 Q1 2017 Q4 2016 Q3 2016 Q2 2016 Q1 2016 Q4 2015 Q3 2015 Q2 2015 Q1 2015 -15.2 -70.7 -52.3 -18.8 -17.9 -100.1 -92.1 -60.7 -6.0 -67.2 -28.4 -8.3 26.1 58.8 58.2 65.9 61.4 74.6 -16.6 65.2 40.5 17.3 -27.7 -51.7 20.5 33.6 -8.4 -10.2 -10.0 -7.5 -6.0 -24.9 -6.6 -5.3 -8.9 -19.1 -12.8 1.5 9.1 35.2 -22.7 3.6 35.1 50.7 -141.6 -33.5 -25.5 2.4 -114.0 -92.9 13.6 68.9

` 1.9% -4.1% -1.4%

-1.1% -1.8% -2.9%

5.6% 5.8% 1.4%

5.0% 5.5% 1.5%

4.2% 5.4% 3.0%

6.5% 4.9% 1.3%

2.0% 14.8% -3.7%

5.0% 7.1% 1.3%

1.2% -1.8% 4.1%

-0.2% -6.1% 4.7%

5.6% 4.4% -0.3%

-8.3% -9.3% 0.9%

0.5% 1.8% -3.8%

2.5% 1.0% 2.6%

Source: ICI/Bloomberg Net outflows from the equity sector (mutual funds) in 2016 reached a record $259bn, ahead of the figure reported for 2008. Passive equity funds and ETFs were the main beneficiaries as a rotation from active to passive continued. The picture for active bond & income funds has been more positive, however, with a return to net inflows in 2016 and 2017 after small outflows in 2015. Overall, US mutual funds (equity, fixed income and hybrid) have enjoyed net inflows in 2017 and 2018, after seeing net outflows in 2015 and 2016 $bn 500

Net inflows/outflows in US mutual funds 2000 - 2018

400 300 200 100 0 -100 -200 -300

Hybrid Funds

Fixed income Funds

Equity Funds

Total ex MM

-400

Source: ICI/Bloomberg At 30 June 2018, the P/E ratio of the Fund was 13.3x 2018 earnings. This sits at a significant discount to the broad market, with the S&P 500 trading on a 2018 P/E ratio of 17.3x earnings. Earnings for the portfolio are expected to grow by 6% in 2018. The portfolio currently offers a gross dividend yield of around 4%, which is rolled up in the Fund.

Fund P/E ratios versus the S&P 500 Index (30.06.18) ‘10 ‘11 ‘12 ‘13 Fund P/E 25.0 26.9 21.8 16.3 S&P 500 P/E 32.5 28.2 28.1 25.3 Premium (+)/ Discount (-) -23% -5% -22% -35% Source: Standard & Poor’s, Guinness Asset Management.

‘14 16.0 23.4 -32%

‘15 16.7 27.1 -39%

‘16 20.7 25.6 -19%

‘17 14.1 21.8 -35%

‘18 13.3 17.3 -23%

In general, we believe that the most successful money management investments over the next few years will be companies that deliver investment quality to their clients, whether active traditional management, alternatives or passive; companies that provide helpful asset allocation services; well-run wealth managers; and well-run support services (e.g. custody banks; stock exchanges). The Fund remains positioned to capitalise on the increasing value of companies across these themes. Guinness Asset Management Limited July 2018 8

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Investment Manager's report (continued) For the financial period ended 30 June 2018 Guinness Global Equity Income Fund (the “Fund”) Performance summary in US Dollars: Class E compared with MSCI World Index Annualised 6 months

1 year

3 years

Calendar years 5 years

2013

2014

2015

2016

2017

Fund

-0.9%

+6.7%

+6.6%

+7.5%

+28.7%

+3.7%

-3.6%

+6.1%

+19.7%

Index

+0.7%

+11.7%

+9.1%

+10.6%

+27.4%

+5.6%

-0.3%

+8.2%

+23.1%

Review The Guinness Global Equity Income Fund in the first six months of 2018 produced a total return of -0.9% (in USD). This compares to the return of the MSCI World Index of +0.7% (in USD). The Fund underperformed by 1.6%. The best and worst performing stocks over the period are outlined below. All total return in USD. Best 5 performing stocks NEX Group ANTA Sports Deutsche Boerse Microsoft Cisco

Total Return 65.4% 18.2% 17.2% 16.3% 14.1%

Worst 5 performing stocks British American Tobacco Vodacom Illinois Tool Works Procter & Gamble Novo Nordisk

Total Return -23.6% -21.4% -16.1% -13.6% -12.6%

Global equity markets had an eventful start to 2018. The turn of the year saw equity markets surge ever higher on optimism over the strength of the world economy, big US tax cuts, and upbeat corporate earnings releases. Global growth forecasts for 2018 and 2019 were both raised, and the MSCI World Index enjoyed its best January since 1994. This was, however, followed by the largest ever one-day spike in the CBOE Volatility (VIX) Index; the first 10% market correction since early 2016; and a subsequent 8% rebound. February’s sell-off was triggered not by weaker economic data but by acceleration in wage growth in the US. Average hourly earnings increased 2.5% year-on-year in December 2017 after a similarly strong November number; data released in early February 2018 confirmed an unexpected further pick-up in wage growth during January (2.9%). The updates strengthened the prospect of more aggressive rate hikes and prompted investors to consider the implications for bond markets; 10-year U.S. treasury yields rose to a high of 2.95% in February, raising speculation that the long-term downward trend in yields had been broken. This was all before March, a month in which the year’s early optimism faced increasingly strong headwinds from rising inflationary pressures, Federal Reserve (FED) rate hikes, and protectionist threats. As many anticipated, the FED did indeed raise rates by 25 basis points, to a range of 1.5% to 1.75%. It did not, however, alter its overall rate projection of three hikes for 2018. The announcement quelled some concerns, though just as it appeared that calm had returned to markets, global equities were rocked once again by fears of a global trade war. The US administration initially announced tariffs on steel and aluminium imports, followed by a 25% tariff on $60 billion worth of Chinese imports. The Chinese, in response, announced increased tariffs on $3 billion worth of US imports. In the second quarter, “trade wars” continued to dominate headlines. President Trump’s decision to impose tariffs on US$60bn of Chinese imports was followed by new signals that it would target an additional US$200bn in goods if China retaliated. Emerging markets felt most of the brunt of the trade war rhetoric, and this was not helped as the US Dollar continued to rally. In Europe, political issues have been prominent. There were concerns that Italy could need fresh elections following the inconclusive outcome of the March vote. Markets feared that this would turn into an effective referendum on Italy’s membership of the EU. However, a governing coalition was eventually formed between populist parties, the League and the Five Star Movement. Spain also saw a change of government, although this was largely greeted with calm by markets. Late in the quarter, German Chancellor Angela Merkel clashed with sister party, the CSU, over immigration policy. The European Union meeting at the end of June struggled to find an agreement re immigration, and there are also decisions still to be made regarding retaliatory tariffs against the US. These tensions provide a tense backdrop to markets. Activity In the first half of the year we made one change to the companies held in the portfolio. We sold our position in General Dynamics Corporation (GD), and bought a new position in Taiwan Semiconductor Manufacturing Company (TSMC). The Technology sector has been the strongest over the first half of the year, despite coming under more recent pressure amid concerns of valuations and regulation, and suggestions that the sector is “over-owned”. Our underweight position here did not help the portfolio though we maintain a valuation discipline and look to avoid chasing the crowd into momentum stocks when markets are bullish. Our lack of Energy stocks also did not fare well as the sector has benefitted from rising oil prices amid concerns over global supply. The Fund did benefit from being underweight Financials and from having no holdings in Materials, Real Estate and Utilities.

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Investment Manager's report (continued) For the financial period ended 30 June 2018 Guinness Global Equity Income Fund (continued) Outlook With an increasing influence of geopolitics on market returns and volatility, we believe that our approach to finding quality companies at attractive valuations is more important than ever. The Guinness Global Equity Income fund currently trades at an attractive valuation to the MSCI World on both a price-to-earnings and free-cash-flow-yield basis. We believe this provides good value to our investors and puts us in good stead in our search for long-term capital growth and a steady, growing income stream. We see time and again that companies who have demonstrated their ability to earn significantly above cost of capital returns on investment for long periods are well placed to weather whatever economic environments they find themselves in. This ability to generate economic profits also allows these companies to continue to grow, albeit at potentially more moderate rates. This is usually well rewarded when market sentiment turns and investors begin to monitor cash flows and earnings results more closely than they might have when markets were rallying. We would argue that in today’s world this type of approach of focusing on value, business quality, and dividends, remains a sensible way to invest in equities. Guinness Asset Management Limited July 2018

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Investment Manager's report (continued) For the financial period ended 30 June 2018 Guinness Asian Equity Income Fund (the “Fund”)

Performance summary in US Dollars: Class X compared with MSCI AC Pacific ex Japan Index Annualised 6 months

1 year

3 years

Calendar years

5 years

2013

2014

2015

2016

2017

Fund

-6.8%

+6.4%

+6.2%

n/a

n/a

+10.7%

-4.4%

+7.5%

+36.3%

Index

-3.7%

+10.4%

+7.9%

+8.1%

+4.7%

+2.2%

-9.0%

+8.1%

+37.4%

The Fund underperformed in the first six months of the year, returning –6.8% versus the benchmark –3.7% (X share class, total return in USD). The Fund’s underperformance was attributable to some technology and China-related names and a few stock-specific factors. The underperformance came in two main periods: in January, where the Fund underperformed in a strong market environment, and April, where the Fund fell in mildly positive markets. January saw the acceleration of the run-up in markets, following positive performance for most of 2017. While we would expect to underperform in such an environment, we would have liked the Fund to have kept up a little better. Our lack of exposure to the Chinese internet companies (principally Tencent and Alibaba) hurt our relative performance. (We don’t hold the Chinese internet companies, because they typically pay little or no dividends.) In April, our exposure to Information Technology harmed our relative performance. The Fund holds several suppliers for smartphone manufactures in the portfolio, which were affected by a combination of fears in the market: slowing Apple iPhone sales, weaker demand from Chinese manufacturers due to elevated inventory levels, and increased trade tensions between the US and Asia. We have since seen improvement in two of these areas: iPhone weakness was not as bad as people feared and Chinese demand looks likely to pick up. Trade tensions, while they have certainly intensified, we feel are less of a concern in this area because of the impracticality of deep upheaval within the technology supply chain (component production is unlikely to relocate to the US any time soon). Since launch, the tendency has been for the Fund to capture most of the gains in strongly rising markets while offering greater downside protection in weaker conditions: in 2014 and 2015, the Fund outperformed in periods of market weakness, and 2016 and 2017, the Fund captured most of the upside in a stronger market. We believe this pattern is key to producing performance growth over time: preserving prior gains when markets are weak. We look for companies that have sustained competitive advantages over their peers which we measure using return on capital over a multi-year time horizon. We define our investment universe of around 300 companies as those that have achieved a return on capital that is persistently above the cost of capital over the past eight years. Within our universe, we seek those where the market is undervaluing their future cash flows. Because the companies in the universe are both consistently profitable and typically have good opportunities to deploy capital, they are often able to reward shareholders with a dividend that grows over time. We maintain a concentrated portfolio of 36 positions, all equally weighted. We rebalance the portfolio periodically, in order to benefit from market volatility. Looking at individual stocks, China Lilang (+82.4%), Novatek Microelectronics (+18.0%), PTT (+9.9%), Corporate Travel Management (+9.0%) and DBS Group (+9.0%) were the best performing stocks in the portfolio. China Lilang was the stand-out performer over the first half of the year, returning more than 80% in USD terms. The company is a clothing retailer based in China and focussed on casual menswear in the young adult segment. Lilang’s main brand LILANZ has recovered after a difficult period in 2016, with same store sales accelerating over the second half of 2017 and continuing into 2018. The company also reported very strong year-onyear sales growth in both its fall and winter trade fairs. Novatek Microelectronics is a designer of integrated circuits used primarily in flat-screen displays in a variety of applications including TVs, tablets, smartphones and cars. The company has recently benefited from greater adoption of its chips within TFT panels. Sales have begun to pick up and gross margins have also improved from a year ago. Novatek is projected to return to earnings growth this year. The worst performers in the period were Yangzijiang Shipbuilding (–37.1%), St Shine (–30.3%), Hanon Systems (–26.1%), Li & Fung (–23.9%) and Elite Material (–23.4%). After returning more than 100% last year, it is not surprising that Yangzijiang would give up some of the gains this year. The stock suffered in the first half after reporting lacklustre results for the fourth quarter of 2017. Provisions on new orders resulting from foreign exchange movements and higher steel costs led to reduced gross margins. However, management reported good recent contract wins, and indicated that they will be discerning in selecting future contracts in the depressed pricing environment – something we like to hear. After going through a pronounced cyclical downturn, conditions in the shipbuilding industry look set to improve. As older, lower-specification ships are scrapped, new orders are likely to come through. Tougher regulations to reduce emissions will also be a tailwind, accelerating the rate at which older vessels are scrapped. Yangzijiang’s designs are well placed to benefit; the company has been focusing on advanced hull designs that are more fuel-efficient than those used previously. The stock is certainly one of the more volatile within our universe, and we have added to it at these lower levels to bring it back to neutral weight in the portfolio. St Shine has also been faced with higher costs, resulting in lower gross margin levels and prompting analysts to reduce their earnings expectations for the stock. Partly lower margins are a result of higher labour costs, but partly they are a result of depreciation as the company expands its capacity. St Shine is forecast to achieve strong revenue growth in 2018 as a result of its new US direct-to-consumer customer, Hubble. The effect will be to decrease exposure to Japan, which currently accounts for more than half the company’s revenues.

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Investment Manager's report (continued) For the financial period ended 30 June 2018 Guinness Asian Equity Income Fund (the “Fund”) (continued) Portfolio Changes We made two changes to the portfolio during the first half. The first switch we made was to sell Relo Holdings in Japan and to buy Corporate Travel Management in Australia. Relo, the one Japanese-listed stock in the portfolio, had been an excellent performer in the Fund (in which it had been held since launch), but the yield contribution from the stock had fallen to a low level as the stock price had risen, accompanied by an increase in valuation multiples. While we thought the prospects for the company were good, we felt there were more attractive opportunities from an income and valuation perspective. Corporate Travel Management (CTM) is an Australian company that provides travel management services for corporate clients in Australia, the US, Europe and Asia. In its most recent half-year results the company reported 15% growth in revenue and 32% growth in underlying EBITDA. The dividend was also increased 25%. We like the client proposition that CTM offers: reducing travel costs for its clients while making it easier to arrange and manage bookings. The founder and Managing Director owns a significant equity stake in the business. As with Relo, we expect a significant proportion of our total return as shareholders to come from continued earnings growth in the business, leading to growth in the income stream from dividends. The second switch we made was to sell LPN Development in Thailand and to buy Public Bank in Malaysia. LPN Development had been a disappointing performer in recent times. The company, a Thai real estate developer centred around Bangkok, reported poor 2017 results, and had seen downgrades to 2018 earnings over a sustained period. LPN struggled with a build-up of inventory, a slower level of new project launches and a difficult market environment for condos. With doubts surrounding the company’s ability to adapt its strategy to circumstances we decided there were better opportunities elsewhere, and we sold the position. In its place, we purchased Public Bank, a pure-play Malaysian bank exposed to improving consumer confidence in the country. The bank has generated good returns on equity since 1999, following the Asian crisis. Public Bank provides a modest dividend yield, but one that has been growing at a steady rate over the last six years, which we find attractive. Expectations of faster earnings growth, with positive revisions to estimates, were also supportive of our decision to buy. Portfolio Position The portfolio is overweight Taiwan and Thailand, and underweight South Korea and Australia. The Fund currently has no direct exposure to Indonesia, the Philippines or New Zealand. On a sector basis, the Fund is overweight Consumer Discretionary, Real Estate, Information Technology and Health Care. The portfolio is underweight Materials, Industrials, Utilities, Consumer Staples, Energy, Financials and Telecommunication Services Outlook Since hitting a high on 26th January, markets have been weaker and more volatile, but we are yet to see substantial negative revisions feeding through into corporate earnings estimates. In fact, earnings expectations remain robust, with solid growth currently forecast for 2018 and 2019. Thus weakness is a result of multiple contraction – driven more by sentiment – rather than a direct result of deterioration in the underlying fundamentals. Asia has looked attractive as a region both on an absolute basis and on a relative basis for some time, and the recent pullback, we think, represents a good buying opportunity. Asia trades at a 16% discount to developed markets on a price/earnings basis. This discount (based on forecast earnings) has been wider in the past, but because earnings growth has been a significant driver of the strong rise in Asian markets over the past couple of years, Asia remains attractive from a valuation point of view. The portfolio is even more attractively valued, trading at a further 7% discount to the benchmark on forecast earnings. In aggregate, the portfolio trades on only 11.9x 2018 earnings and 10.8x 2019 earnings, implying 10% earnings growth. As expected, given the Fund’s investment process, the average return on capital of the portfolio is substantially above the market average, and from an income perspective, the net yield of the portfolio, at 3.9%, is significantly higher than both the benchmark (on around 3%) and many other regions around the world. Furthermore, the companies in the portfolio have a good track record of growing their dividends – on average over the past five years they have grown them at more than 10% per annum. Last, balance sheets are strong, with the average net debt to equity ratio for non-financials at –12% (i.e. net cash). If an individual company had these metrics, we doubt it would go unnoticed by investors for long (and the portfolio, of course, has the added benefit of offering diversification across sectors and geographies). Investors in Asia have many risks to consider (of course, they are not alone in this respect). Conflicts over trade policies seem unlikely to be resolved in the near term (we write more about this below), the path of interest rate rises in the US could accelerate, and economic data, while robust, is not quite as strong as previously. But many of these factors are short-term in nature. We believe it is the more fundamental themes of manufacturing improvements, lifestyle upgrades and developing services industries that will drive Asia’s growth (and shareholder returns) over the long term. We believe our focus on quality companies, defined by their cash flow-based returns on capital, will continue to provide a highly desirable combination of defensiveness and growth. Guinness Asset Management Limited August 2018

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Investment Manager's report (continued) For the financial period ended 30 June 2018 Guinness European Equity Income Fund (the “Fund”) Performance summary in US Dollars: Class X compared with MSCI Europe ex-UK Index Annualised 6 months

1 year

3 years

Calendar years 5 years

2013

2014

2015

2016

2017

Fund

-4.7%

-1.5%

+5.8%

n/a

n/a

-8.6%

-2.0%

+7.8%

+21.2%

Index

-3.7%

+4.2%

+5.5%

+7.7%

+28.7%

-5.8%

+0.1%

+0.2%

+27.9%

Review The Guinness European Equity Income Fund in the first six months of 2018 produced a total return of -4.7% (in USD). This compares to the return of the MSCI Europe ex UK Index of -3.7% (in USD). The Fund underperformed by 1.0%. The best and worst performing stocks over the period are outlined below. All total return in USD. Best 5 performing stocks Salmar Deutsche Boerse Hugo Boss Tieto Helvetia Holding

Total Return 47.0% 17.1% 10.4% 9.3% 5.4%

Worst 5 performing stocks Deutsche Post Inc Hennes & Mauritz Freenet Adecco M6-Metropole Television

Total Return -29.4% -25.4% -23.6% -19.6% -18.8%

Global equity markets had an eventful start to 2018. The turn of the year saw equity markets surge ever higher on optimism over the strength of the world economy, big US tax cuts, and upbeat corporate earnings releases. Global growth forecasts for 2018 and 2019 were both raised, and the MSCI World Index enjoyed its best January since 1994. This was, however, followed by the largest ever one-day spike in the CBOE Volatility (VIX) Index; the first 10% market correction since early 2016; and a subsequent 8% rebound. February’s sell-off was triggered not by weaker economic data but by an acceleration in wage growth in the US. Average hourly earnings increased 2.5% year-on-year in December 2017 after a similarly strong November number; data released in early February 2018 confirmed an unexpected further pick-up in wage growth during January (2.9%). The updates strengthened the prospect of more aggressive rate hikes and prompted investors to consider the implications for bond markets; 10-year U.S. treasury yields rose to a high of 2.95% in February, raising speculation that the long-term downward trend in yields had been broken. This was all before March, a month in which the year’s early optimism faced increasingly strong headwinds from rising inflationary pressures, Federal Reserve (FED) rate hikes, and protectionist threats. As many anticipated, the FED did indeed raise rates by 25 basis points, to a range of 1.5% to 1.75%. It did not, however, alter its overall rate projection of three hikes for 2018. The announcement quelled some concerns, though just as it appeared that calm had returned to markets, global equities were rocked once again by fears of a global trade war. The US administration initially announced tariffs on steel and aluminium imports, followed by a 25% tariff on $60 billion worth of Chinese imports. The Chinese, in response, announced increased tariffs on $3 billion worth of US imports. In the second quarter “trade wars” continued to dominate headlines. President Trump’s decision to impose tariffs on US$60bn of Chinese imports was followed by new signals that it would target an additional US$200bn in goods if China retaliated. Emerging markets felt most of the brunt of the trade war rhetoric, and this was not helped as the US Dollar continued to rally In Europe, political issues have been prominent. There were concerns that Italy could need fresh elections following the inconclusive outcome of the March vote. Markets feared that this would turn into an effective referendum on Italy’s membership of the EU. However, a governing coalition was eventually formed between populist parties, the League and the Five Star Movement. Spain also saw a change of government, although this was largely greeted with calm by markets. Late in the quarter, German Chancellor Angela Merkel clashed with sister party, the CSU, over immigration policy. The European Union meeting at the end of June struggled to find an agreement re immigration, and there are also decisions still to be made regarding retaliatory tariffs against the US. These tensions provide a tense backdrop to markets. Activity In the first half of the year we made no changes to the companies held in the portfolio. The Technology sector has been strong over the first half of the year, despite coming under more recent pressure amid concerns of valuations and regulation, and suggestions that the sector is “over-owned”. Our underweight position here did not help the portfolio though we maintain a valuation discipline and look to avoid chasing the crowd into momentum stocks when markets are bullish. Our lack of Energy stocks also did not fare well as the sector has benefitted from rising oil prices amid concerns over global supply. The Fund did benefit from being underweight Financials. Outlook With an increasing influence of geopolitics on market returns and volatility, we believe that our approach to finding quality companies at attractive valuations is more important than ever. The Guinness European Equity Income fund currently trades at an attractive valuation to the MSCI Europe ex UK Index on both a price-to-earnings and free-cash-flow-yield basis. We believe this provides good value to our investors and puts us in good stead in our search for long-term capital growth and a steady, growing income stream. We see time and again that companies who have demonstrated their ability to earn significantly above cost of capital returns on investment for long periods are well placed to weather whatever economic environments they find themselves in. This ability to generate economic profits also allows these companies to continue to grow, albeit at potentially more moderate rates. This is usually well rewarded when market sentiment turns and investors begin to monitor cash flows and earnings results more closely than they might have when markets were rallying. We would argue that in today’s world this type of approach of focusing on value, business quality, and dividends, remains a sensible way to invest in equities. Guinness Asset Management Limited July 2018

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Investment Manager's report (continued) For the financial period ended 30 June 2018 Guinness Global Innovators Fund (the “Fund”) Performance summary in US Dollars: Class Y compared with MSCI World Index Annualised 6 months

1 year

3 years

Calendar years 5 years

2013

2014

2015

2016

2017

Fund

+0.4%

+15.8%

+11.7%

n/a

n/a

n/a

-3.5%

+7.2%

+33.6%

Index

+0.7%

+11.7%

+9.1%

+10.6%

+27.4%

+5.6%

-0.3%

+8.2%

+23.1%

Review The Guinness Global Innovators Fund in the first six months of 2018 produced a total return of +0.4% (in USD). This compares to the return of the MSCI World Index of +0.7% (in USD). The Fund underperformed by 0.3%. The best and worst performing stocks over the period are outlined below. All total return in USD. Best 5 performing stocks Nike Nvidia ANTA Sports Boeing Cisco

Total Return 28.1% 22.6% 18.2% 14.9% 14.1%

Worst 5 performing stocks AAC Technologies Comcast WisdomTree Fanuc Continental

Total Return -20.0% -17.3% -16.8% -16.4% -13.8%

Global equity markets had an eventful start to 2018. The turn of the year saw equity markets surge ever higher on optimism over the strength of the world economy, big US tax cuts, and upbeat corporate earnings releases. Global growth forecasts for 2018 and 2019 were both raised, and the MSCI World Index enjoyed its best January since 1994. This was, however, followed by the largest ever one-day spike in the CBOE Volatility (VIX) Index; the first 10% market correction since early 2016; and a subsequent 8% rebound. February’s sell-off was triggered not by weaker economic data but by acceleration in wage growth in the US. Average hourly earnings increased 2.5% year-on-year in December 2017 after a similarly strong November number; data released in early February 2018 confirmed an unexpected further pick-up in wage growth during January (2.9%). The updates strengthened the prospect of more aggressive rate hikes and prompted investors to consider the implications for bond markets; 10-year U.S. treasury yields rose to a high of 2.95% in February, raising speculation that the long-term downward trend in yields had been broken. This was all before March, a month in which the year’s early optimism faced increasingly strong headwinds from rising inflationary pressures, Federal Reserve (FED) rate hikes, and protectionist threats. As many anticipated, the FED did indeed raise rates by 25 basis points, to a range of 1.5% to 1.75%. It did not, however, alter its overall rate projection of three hikes for 2018. The announcement quelled some concerns, though just as it appeared that calm had returned to markets, global equities were rocked once again by fears of a global trade war. The US administration initially announced tariffs on steel and aluminium imports, followed by a 25% tariff on $60 billion worth of Chinese imports. The Chinese, in response, announced increased tariffs on $3 billion worth of US imports. In the second quarter “trade wars” continued to dominate headlines. President Trump’s decision to impose tariffs on US$60bn of Chinese imports was followed by new signals that it would target an additional US$200bn in goods if China retaliated. Emerging markets felt most of the brunt of the trade war rhetoric, and this was not helped as the US Dollar continued to rally In Europe, political issues have been prominent. There were concerns that Italy could need fresh elections following the inconclusive outcome of the March vote. Markets feared that this would turn into an effective referendum on Italy’s membership of the EU. However, a governing coalition was eventually formed between populist parties, the League and the Five Star Movement. Spain also saw a change of government, although this was largely greeted with calm by markets. Late in the quarter, German Chancellor Angela Merkel clashed with sister party, the CSU, over immigration policy. The European Union meeting at the end of June struggled to find an agreement re immigration, and there are also decisions still to be made regarding retaliatory tariffs against the US. These tensions provide a tense backdrop to markets. Activity In the first half of the year we made three changes to the companies held in the portfolio. We sold our positions in Intel, Verifone and WisdomTree and bought new positions in KLA Tencor, LAM Research and Baidu. The Technology sector has been the strongest over the first half of the year, despite coming under more recent pressure amid concerns of valuations and regulation, and suggestions that the sector is “over-owned”. Our overweight position here helped the portfolio though we maintain a valuation discipline and look to avoid chasing the crowd into momentum stocks when markets are bullish. Our lack of Energy stocks did not fare well as the sector has benefitted from rising oil prices amid concerns over global supply. Having no positions within Telecoms, Consumer Staples, Materials and Real Estate benefitted the portfolio. Outlook We continue to apply a value-discipline when looking for growth companies, whereby we look for a margin of safety in the valuation of the company so that if expected growth is not as strong as we would like, or the company suffers for a reason we could not necessarily foresee, then this can act as a buffer to the price paid. Typically we look for companies that are trading on earnings multiples either (i) lower than the average multiple the company has traded on over the previous 10 years, (ii) lower than their peer group, or (iii) lower than the broad market. And despite the Fund’s good performance in the first half of the year, the PE ratio still trades at only a small premium to the broad market. This approach has served us very well in the past and we believe over the long term, this way of investing provides the best way of outperforming the market without taking undue risks. Overall we continue to try and focus on companies that have the ability to generate decent returns on capital throughout a business cycle - quality, innovative companies that provide robust cash flows. We also remain on the lookout for companies that can grow revenues and market share in the medium term through innovative business practices and new products. Guinness Asset Management Limited July 2018 14

Guinness Asset Management Funds plc

Investment Manager's report (continued) For the financial period ended 30 June 2018 Guinness Best of China Fund (the “Fund”)

Performance summary in US Dollars: Class X compared with MSCI Golden Dragon Index Annualised 6 months

1 year

3 years

Calendar years

5 years

2013

2014

2015

2016

2017

Fund

-5.2%

+12.0%

n/a

n/a

n/a

n/a

n/a

+2.3%

+50.4%

Index

-1.8%

+14.5%

+7.4%

+10.9%

+6.9%

+7.7%

-7.4%

+5.4%

+43.8%

The Fund fell 5.2% while the index fell 1.8% and so the Fund ended the period 3.4% behind the benchmark. The total return for the three regions was similar: MSCI China fell 1.8%, Hong Kong fell 2.6% and Taiwan fell 0.9%. Much of the Fund’s underperformance can be attributed to January where markets were very strong, with the index rising 9.9% and the Fund rising 5.5%. In the month the best performing sectors in China were financials (total return of +12.7%), real estate (+11.7%) and energy (+8.8%). The Fund was underweight in these sectors by 9.1%, 4.8% and 2.9% respectively. For the first six months of the year the Fund lagged because of stock specific movements in the information technology (contributing to ~2.8% of underperformance), industrials (contributing to ~1.5% of underperformance) and health care (contributing to ~0.8% of underperformance) sectors. In information technology, Elite Material, Netease (more details below) and AAC Technologies were the weakest stocks with no theme linking the three. In industrials, Haitian International and Yangzijiang Shipbuilding (more details below) were weak. Haitian International manufactures plastic injection moulding machines which are subject to a 25% tariff when exported to the US. Tensions over trade between the US and China continued to increase. In April the US released a list of Chinese goods, worth ~$50bn, that would be hit with tariffs. Representatives from both sides met and the rhetoric seemed to calm down, with the US reversing its ban on ZTE sourcing US components. Steve Mnuchin said the trade war was “on hold”. However soon after the US administration confirmed it planned to introduce the tariffs in July. It is expected China will respond in kind with tariffs, for example though targeting the politically sensitive soybean industry. Following on from the trade dispute the offshore Renminbi weakened 3.4% in June. However this must be viewed in the context of Renminbi strength in the first quarter meaning that as of the end of June the Renminbi was 1.8% weaker against the dollar for the year. Note that on a real effective trade weighted basis the Renminbi ended June marginally stronger than it did at the beginning of the year. MSCI began the process of including Chinese A shares in its Emerging Market Index. Initially the A shares will be capped at 2.5% of their free float adjusted market capitalization, rising to 5.0% later this year. The initial impact of this change is marginal as even at a 5% weight, China’s share in the EM index will rise by less than 1%. The real impact will be in the long term when the inclusion factor will rise above 5%. For context it took South Korea six years to reach a full 100% inclusion factor, while it took Taiwan ten years to do the same. At a full inclusion factor China’s share of the EM index could rise to 38%. The A shares included only account for half of China’s total market capitalisation and so if the other half of the domestic market were opened up to foreign access, China’s weight in the EM index could be close to 50%. Looking at individual stocks, the best performers were China Lilang (total return of +82.4%), Sino Biopharmaceutical (+30.0%) and Haier Electronics (+26.3%). China Lilang is a clothing retailer which has seen a marked improvement in its fortunes over the past year. It reported very strong figures from its trade fairs, with a 33% increase in total order value. Sino Biopharmaceutical saw several broker upgrades following the approval of new products. The company is ramping up production of tenofovir, which is used to treat hepatitis. It also received approval for a new generic product to treat terminal lung cancer – it has the potential to become a blockbuster drug. Haier Electronics distributes washing machines and heaters under the “Haier” brand and is increasingly focusing on logistics for white good appliances. The company provides deliveries for large home appliances on Tmall.com, an Alibaba-owned platform which is one of the most visited websites in the world. Poorer performers were Yangzijiang Shipbuilding (-37.1%), St Shine (-30.3%) and Netease (-26.6%). Yangzijiang’s stock suffered in the first half after reporting lacklustre results for the fourth quarter of 2017. Provisions on new orders resulting from foreign exchange movements and higher steel costs led to reduced gross margins. However, management reported good recent contract wins, and indicated that they will be discerning in selecting future contracts in the depressed pricing environment. After going through a pronounced cyclical downturn, conditions in the shipbuilding industry look set to improve. As older, lower spec ships are scrapped, new orders are likely to come through. Tougher regulations from an environmental perspective to reduce emissions will also be a tailwind, accelerating the rate at which older vessels are scrapped. Yangzijiang’s designs are well placed to benefit – the company has been focusing on advanced hull designs that are more fuel efficient than those used previously. St Shine produces contact lenses and one of its newest customers is Hubble, a fast growing startup in the US. The share price was strong in 2017 as expectations increased but this was tempered in the first quarter by lower margins as underutilised new capacity came online. Netease develops games for mobile and PCs and is the second largest developer in China. The start to the year has been tough with revenues from a major game, Onmyoji, falling sharply. While Netease has released battle-royal style games that have done well, they have not yet become popular enough to offset weakness in more established games. Additionally the company has expanded into cross border e-commerce through Yanxuan and Kaola. Yanxuan sells unbranded versions of mass market and luxury goods while Kaola sells a range of high quality international goods. Both websites are doing well and though are loss making for now, have the potential to become very cash generative given the size of the e-commerce market in China. Activity Three switches were made. We sold the entire position in Lenovo, PICC and Hon Hai. These were replaced by Autohome, Noah Holdings and Baidu. Autohome is an automotive classified advertising business which has a dominant market share in China. On average 10.1 million people used its app daily in the first quarter of 2018. Its revenue comes from adverts and from the fees it charges to dealers to list on the website. Baidu’s search engine is dominant in China with a market share of over 75%. In the past Baidu has been guilty of unsuccessfully throwing money at new businesses without realising a positive return. As a result its cash return on investment has fallen from 30% in the 2007-2012 period to 12% in 2017. But we believe the business is a better allocator of capital today than it was in the past. Its operating system, DuerOS is being developed so it can be used on any hardware from any manufacturer. Over the next decade, as consumer electronics become more connected, Baidu’s OS could become an integral part of each household in the same way its search function became an integral part of everyday life. Noah is a wealth and asset manager targeting high network individuals. It distributes onshore and offshore products across China. As Chinese financial markets mature investors are becoming more accustomed to the idea of diversified asset allocation. So in addition to equity offerings Noah also gives investors access to fixed income, private equity and fund-of-funds products denominated in RMB and USD. The recent improvement in rules around the asset management industry, which brings it closer to global standards, should serve Noah well as it already positions and operates itself as a sophisticated asset manager.

15

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Investment Manager's report (continued) For the financial period ended 30 June 2018 Guinness Best of China Fund (the “Fund”) (continued) Portfolio Position The portfolio remains overweight China/Hong Kong and underweight Taiwan. On a sector basis, the Fund is significantly overweight consumer discretionary stocks, and is overweight healthcare and industrials. The portfolio is underweight financials, telecommunication services and real estate. The Fund invests in stocks who have generated persistent returns above the cost of capital which means cyclical sectors do not tend to appear in our universe. Outlook The coming months are likely to be dominated by concerns over a potential trade war. The US has already signalled its intent to impose tariffs on $200bn worth of imports from China with the potential for additional tariffs on another $200-250bn. This would mean tariffs on all of the US’ imports from China with China most likely to respond with its own measures. At the moment earnings growth for the region is looking very good, especially compared to other regions, and what we are seeing is a compression in the valuation multiple. We are finding more companies are beginning to look attractive from a valuation perspective. The Fund focuses on investing in quality companies which have persistently generated a cash return on investment above the cost of capital. This is reflective of a company’s competitive advantage which should still exist even if tariffs are introduced. For example the smartphone supply chain is embedded in China and the broader Asian region not just because of relatively lower wages, but because of a complex logistics chain which has taken decades to develop. Component providers have well established relationships with their clients which have been built and proven over time. This cannot be simply and quickly replaced by replicating the supply chain in the US or Europe as some argue. If further tariffs were to be introduced then some of our companies are likely to see their valuations fall even if in the medium term their competitive advantages are likely to persist. If this is the case then this would represent a good opportunity to buy these sorts of companies.

Guinness Asset Management Limited July 2018

16

Guinness Asset Management Funds plc

Investment Manager's report (continued) For the financial period ended 30 June 2018 Guinness Emerging Markets Equity Income Fund (the “Fund”)

Performance summary in US Dollars: Class Y compared with MSCI Emerging Markets Index Calendar years

Annualised 6 months

1 year

3 years

5 years

2013

2014

2015

2016

2017

Fund

-6.1%

+9.6%

n/a

n/a

n/a

n/a

n/a

n/a

+37.7%

Index

-6.7%

+8.2%

+5.6%

+5.0%

-2.6%

-2.2%

-14.9%

+11.2%

+37.3%

In the first half of 2018 the Fund fell 6.1% versus the benchmark which fell 6.7%. Since launch, the Fund is up 30.5% versus the benchmark up 31.4%. This is broadly in line with our expectations. We expect the performance profile for the Fund to be similar to the Guinness Asian Equity Income Fund. That is, to capture most of the upside in stronger markets, but to protect on the downside—falling less—in weaker markets. Both funds share a common philosophy and investment process: investing in dividend-paying stocks of companies that have achieved persistent returns on capital. Within emerging markets, Asia outperformed both Latin America and EMEA (Europe, the Middle East and Africa), falling 5.1% versus 11.0% for Latin America and 10.8% for EMEA. The Fund has an underweight position to Asia, a slight underweight to EMEA and an overweight to Latin America. Rising US interest rates led to particular weakness in EM currencies with the prospect of capital outflows from emerging markets reappearing. Countries with large current account deficits were most prone to this pressure e.g. Turkey, South Africa and Indonesia. Tensions over trade between the US and China continued to increase. In April the US released a list of Chinese goods, worth ~$50bn, that would be hit with tariffs. Representatives from both sides met and the rhetoric seemed to calm down, with the US reversing its ban on ZTE sourcing US components. Steve Mnuchin said the trade war was “on hold”. However soon after the US administration confirmed it planned to introduce the tariffs in July. It is expected China will respond in kind with tariffs, for example though targeting the politically sensitive soybean industry. Following on from the trade dispute the offshore Renminbi weakened 3.4% in June. However this must be viewed in the context of Renminbi strength in the first quarter meaning that as of the end of June the Renminbi was 1.8% weaker against the dollar for the year. In terms of individual country MSCI indices, notable strong performers (in USD terms) were Colombia (total return of +11.6%), Peru (+6.8%) and Qatar (+6.8%). Poor performers were Turkey (-29.5%), the Philippines (-21.1%) and Poland (-18.9%). In terms of sectors, strong performers were energy (+2.5%), health care (+1.7%) and information technology (-3.2%). Weaker sectors were real estate (-13.0%), telecoms (-12.9%) and consumer discretionary (-12.8%). Looking at individual stocks, China Lilang (+82.4%), Shenzhou International (+30.7%) and Tata Consultancy Services (+28.9%) were the strongest performers. China Lilang is a clothing retailer which has seen a marked improvement in its fortunes over the past year. It reported very strong figures from its trade fairs, with a 33% increase in total order value. Shenzhou is an integrated apparel maker that supplies apparel to Uniqlo, Nike, Adidas and Puma. Shenzhou’s key customers continue to do well which translates into greater volume growth for Shenzhou. The company’s factory in Vietnam is fully functioning which allows the company to take advantage of the lower cost of labour compared to China. TCS provides IT services to the finance, manufacturing, retail and telecom industry. It has seen a pickup in orders from the finance industry as banks have stabilised their efforts to insource operations. TCS is also moving aggressively into services for the cloud where in the most recent quarter, digital revenues made up 25% of revenues. The worst performers were St Shine (-30.3%), Netease (-26.6%) and Hanon Systems (-26.1%). St Shine produces contact lenses and one of its newest customers is Hubble, a fast growing startup in the US. The share price was strong in 2017 as expectations increased but this was tempered in the first quarter by lower margins as underutilised new capacity came online. Netease develops games for mobile and PCs and is the second largest developer in China. The start to the year has been tough with revenues from a major game, Onmyoji, falling sharply. While Netease has released battle-royal style games that have done well, they have not become popular enough to offset weakness in more established games. Additionally the company has expanded into cross border e-commerce through Yanxuan and Kaola. Yanxuan sells unbranded versions of mass market and luxury goods while Kaola sells a range of high quality international goods. Both websites are doing well and though are loss making for now, have the potential to become very cash generative given the size of the e-commerce market in China. Hanon, an automotive parts supplier specialising in thermal management systems, saw some softness in revenue from weaker sales by Hyundai and Kia in China. However, Hanon’s efforts to diversify sources of revenue have helped to reduce the impact of China weakness and Hyundai Motor Group (which includes Kia) now represents less than half of Hanon’s sales. Hanon is attractively positioned with respect to electric vehicles – sales of parts for new energy vehicles rose to 7.5% of sales in the first quarter and account for 30% of the company’s backlog. As emissions continue to be in focus in China and elsewhere, demand for Hanon’s products – which are optimised for fuel efficiency – is likely to increase. We expect the company to recover over the second half of the year, as conditions in China appear to be improving.

Portfolio Changes We made one switch in the portfolio during the first half, selling Hollysys Automation and buying China Minsheng Bank. Hollysys has been a respectable performer for the Fund, particularly over the second half of last year. The company released good results in February, showing new orders in its railway division and an increase in revenues from Industrial Automation. However, the yield contribution from the stock was insufficient, so we exited the position. It its place we purchased China Minsheng Bank, which joins China Construction Bank as the second Chinese bank in the portfolio. Minsheng has lagged the broader market notably over the past year, as deleveraging efforts by the authorities have hurt the bank’s business model, which is dependent on borrowing in the interbank market. As a consequence, Minsheng has been restructuring its balance sheet on the funding side as well as addressing regulatory requirement for off/on balance sheet items. Asset quality in the banking sector in general has improved, as the slowdown in non-performing loan formation has demonstrated. At a 0.6x price-to-book ratio and a 5x P/E ratio, we felt that the stock was acutely undervalued. The stock also offers a 4% dividend yield.

17

Guinness Asset Management Funds plc

Investment Manager's report (continued) For the financial period ended 30 June 2018 Guinness Emerging Markets Equity Income Fund (the “Fund”) (continued) Portfolio Position The Fund’s biggest overweight positions are in consumer staples, consumer discretionary, financials and information technology. The Fund’s biggest underweight positions are in materials, energy and telecommunication services – the Fund has no holdings in the three sectors. Looking at countries where the Fund has direct exposure, overweight positions are in Taiwan, India, Colombia and Peru. The Fund has underweight positions in South Korea, China, Russia and Malaysia. Outlook We believe emerging markets are attractive for two reasons. First, the region offers good prospects for economic growth, particularly relative to developed markets. Our investment process naturally steers us away from more cyclical companies, such as those heavily exposed to commodities, and towards companies that have a long term track record of generating high returns on capital. We believe these companies will be well placed to perform in the future. Second, we believe that valuations are also attractive. Valuation indicators that use long term earnings, for example the CAPE ratio, currently point towards attractive expected returns over the long term, particularly when compared to markets with higher valuations, such as the US. There are numerous risks surrounding emerging markets (as indeed for developed markets). The coming months are likely to be dominated by concerns over a potential trade war. The US has already signaled its intent to impose tariffs on $200bn worth of imports from China with the potential for additional tariffs on another $200bn. This would mean tariffs on all of the US’ imports from China with China likely to respond with its own measures. We are seeing is a compression in the valuation multiple and are finding more companies are beginning to look attractive from a valuation perspective. The Fund focuses on investing in quality companies which have persistently generated a cash return on investment above the cost of capital. This is reflective of a company’s competitive advantage which should still exist even if tariffs are introduced. For example the smartphone supply chain is embedded in China and the broader Asian region not just because of relatively lower wages, but because of a complex logistics chain which has taken decades to develop. Component providers have well established relationships with their clients which have been built and proven over time. This cannot be simply and quickly replaced by replicating the supply chain in the US or Europe as some would argue. If further tariffs were to be introduced then some of our companies are likely to see their valuations fall even if in the medium term their competitive advantages are likely to persist. If this is the case then this would represent a good opportunity to buy these companies. We believe our approach of investing in quality, dividend-paying companies with excellent track records, provides the right balance between exposure to stronger growth in emerging economies and sufficient protection to the downside. We do not make top-down allocations to particular countries or sectors. Instead, we make individual stock selections based on fundamentals. We scour our universe of 360 companies to find the best 36 investment opportunities for the portfolio.

Guinness Asset Management Limited July 2018

18

Guinness Asset Management Funds plc

Investment Manager's report (continued) For the financial period ended 30 June 2018 Guinness Global Equity Fund (the “Fund”) Performance summary in US Dollars: Class X compared with MSCI World Index Calendar years

Annualised 6 months

1 year

3 years

5 years

2013

2014

2015

2016

2017

Fund

-3.8%

+3.5%

n/a

n/a

n/a

n/a

n/a

n/a

+20.9%

Index

+0.7%

+11.7%

+9.1%

+10.6%

+27.4%

+5.6%

-0.3%

+8.2%

+23.1%

Review The Guinness Global Equity Fund in the first six months of 2018 produced a total return of -3.8% (in USD). This compares to the return of the MSCI World Index of +0.7% (in USD). The Fund underperformed by 4.5%. The best and worst performing stocks over the period are outlined below. All total return in USD. Best 5 performing stocks William Demant F5 Networks Envision Healthcare Citrix Systems Deutsche Boerse

Total Return 43.8% 31.4% 27.3% 19.1% 17.1%

Worst 5 performing stocks Aryzta Hain Celestial Affiliated Managers Sodexo Freenet

Total Return -61.7% -29.7% -27.3% -23.7% -23.6%

Global equity markets had an eventful start to 2018. The turn of the year saw equity markets surge ever higher on optimism over the strength of the world economy, big US tax cuts, and upbeat corporate earnings releases. Global growth forecasts for 2018 and 2019 were both raised, and the MSCI World Index enjoyed its best January since 1994. This was, however, followed by the largest ever one-day spike in the CBOE Volatility (VIX) Index; the first 10% market correction since early 2016; and a subsequent 8% rebound. February’s sell-off was triggered not by weaker economic data but by acceleration in wage growth in the US. Average hourly earnings increased 2.5% year-on-year in December 2017 after a similarly strong November number; data released in early February 2018 confirmed an unexpected further pick-up in wage growth during January (2.9%). The updates strengthened the prospect of more aggressive rate hikes and prompted investors to consider the implications for bond markets; 10-year U.S. treasury yields rose to a high of 2.95% in February, raising speculation that the long-term downward trend in yields had been broken. This was all before March, a month in which the year’s early optimism faced increasingly strong headwinds from rising inflationary pressures, Federal Reserve (FED) rate hikes, and protectionist threats. As many anticipated, the FED did indeed raise rates by 25 basis points, to a range of 1.5% to 1.75%. It did not, however, alter its overall rate projection of three hikes for 2018. The announcement quelled some concerns, though just as it appeared that calm had returned to markets, global equities were rocked once again by fears of a global trade war. The US administration initially announced tariffs on steel and aluminium imports, followed by a 25% tariff on $60 billion worth of Chinese imports. The Chinese, in response, announced increased tariffs on $3 billion worth of US imports. In the second quarter “trade wars” continued to dominate headlines. President Trump’s decision to impose tariffs on US$60bn of Chinese imports was followed by new signals that it would target an additional US$200bn in goods if China retaliated. Emerging markets felt most of the brunt of the trade war rhetoric, and this was not helped as the US Dollar continued to rally. In Europe, political issues have been prominent. There were concerns that Italy could need fresh elections following the inconclusive outcome of the March vote. Markets feared that this would turn into an effective referendum on Italy’s membership of the EU. However, a governing coalition was eventually formed between populist parties, the League and the Five Star Movement. Spain also saw a change of government, although this was largely greeted with calm by markets. Late in the quarter, German Chancellor Angela Merkel clashed with sister party, the CSU, over immigration policy. The European Union meeting at the end of June struggled to find an agreement re immigration, and there are also decisions still to be made regarding retaliatory tariffs against the US. These tensions provide a tense backdrop to markets. Activity In the first half of the year we made no changes to the companies held in the portfolio. Positive contribution to return came from being overweight the Technology sector, which has been the strongest over the first half of the year, and the Fund also benefited from good stock selection particularly within the Healthcare and Materials sectors. Our lack of Energy stocks did not fare well as the sector has benefitted from rising oil prices amid concerns over global supply. The Fund did benefit from being underweight Financials. Outlook With an increasing influence of geopolitics on market returns and volatility, we believe that our approach to finding quality companies at attractive valuations is more important than ever. The Guinness Global Equity fund currently trades at an attractive valuation to the MSCI World on both a price-to-earnings and free-cash-flow-yield basis. We believe this provides good value to our investors and puts us in good stead in our search for long-term capital growth and a steady, growing income stream. We see time and again that companies who have demonstrated their ability to earn significantly above cost of capital returns on investment for long periods are well placed to weather whatever economic environments they find themselves in. This ability to generate economic profits also allows these companies to continue to grow, albeit at potentially more moderate rates. This is usually well rewarded when market sentiment turns and investors begin to monitor cash flows and earnings results more closely than they might have when markets were rallying. We would argue that in today’s world this type of approach of focusing on value and business quality remains a sensible way to invest in equities. Guinness Asset Management Limited July 2018

19

Guinness Asset Management Funds plc

Investment Manager's report (continued) For the financial period ended 30 June 2018 Guinness US Equity Fund (the “Fund”) Performance summary in US Dollars: Class X compared with MSCI USA Index Annualised 6 months

1 year

Calendar years

3 years

5 years

2013

2014

2015

2016

2017

Fund

-0.9%

+8.6%

n/a

n/a

n/a

n/a

n/a

n/a

+23.1%

Index

+2.9%

+14.5%

+11.7%

+13.4%

+32.6%

+13.4%

+1.3%

+11.6%

+21.9%

Review The Guinness US Equity Fund in the first six months of 2018 produced a total return of -0.9% (in USD). This compares to the return of the MSCI USA Index of +2.9% (in USD). The Fund underperformed by 3.8%. The best and worst performing stocks over the period are outlined below. All total return in USD. Best 5 performing stocks F5 Networks Nike Citirx HIS Markit Cisco

Total Return 31.4% 28.1% 19.1% 14.3% 14.1%

Worst 5 performing stocks Hain Celestial Affiliated Managers Group Invesco LKQ Corp Stanley Black & Decker

Total Return -29.7% -27.3% -25.9% -21.6% -21.1%

Global equity markets had an eventful start to 2018. The turn of the year saw equity markets surge ever higher on optimism over the strength of the world economy, big US tax cuts, and upbeat corporate earnings releases. Global growth forecasts for 2018 and 2019 were both raised, and the MSCI World Index enjoyed its best January since 1994. This was, however, followed by the largest ever one-day spike in the CBOE Volatility (VIX) Index; the first 10% market correction since early 2016; and a subsequent 8% rebound. February’s sell-off was triggered not by weaker economic data but by an acceleration in wage growth in the US. Average hourly earnings increased 2.5% year-on-year in December 2017 after a similarly strong November number; data released in early February 2018 confirmed an unexpected further pick-up in wage growth during January (2.9%). The updates strengthened the prospect of more aggressive rate hikes and prompted investors to consider the implications for bond markets; 10-year U.S. treasury yields rose to a high of 2.95% in February, raising speculation that the long-term downward trend in yields had been broken. This was all before March, a month in which the year’s early optimism faced increasingly strong headwinds from rising inflationary pressures, Federal Reserve (FED) rate hikes, and protectionist threats. As many anticipated, the FED did indeed raise rates by 25 basis points, to a range of 1.5% to 1.75%. It did not, however, alter its overall rate projection of three hikes for 2018. The announcement quelled some concerns, though just as it appeared that calm had returned to markets, global equities were rocked once again by fears of a global trade war. The US administration initially announced tariffs on steel and aluminum imports, followed by a 25% tariff on $60 billion worth of Chinese imports. The Chinese, in response, announced increased tariffs on $3 billion worth of US imports. In the second quarter “trade wars” continued to dominate headlines. President Trump’s decision to impose tariffs on US$60bn of Chinese imports was followed by new signals that it would target an additional US$200bn in goods if China retaliated. Emerging markets felt most of the brunt of the trade war rhetoric, and this was not helped as the US Dollar continued to rally. In Europe, political issues have been prominent. There were concerns that Italy could need fresh elections following the inconclusive outcome of the March vote. Markets feared that this would turn into an effective referendum on Italy’s membership of the EU. However, a governing coalition was eventually formed between populist parties, the League and the Five Star Movement. Spain also saw a change of government, although this was largely greeted with calm by markets. Late in the quarter, German Chancellor Angela Merkel clashed with sister party, the CSU, over immigration policy. The European Union meeting at the end of June struggled to find an agreement re immigration, and there are also decisions still to be made regarding retaliatory tariffs against the US. These tensions provide a tense backdrop to markets. Activity In the first half of the year we made no changes to the companies held in the portfolio. Contribution to return has been positive from good allocation to the Consumer Discretionary and Technology sector, which have been the best performing over the first half of the year, however not holding companies such as Amazon and Netflix in the Fund dragged on performance verses the benchmark. We maintain a valuation discipline and look to avoid chasing the crowd into momentum stocks when markets are bullish. Our lack of energy stocks also did not fare well as the sector has benefitted from rising oil prices amid concerns over global supply. The Fund did benefit from being underweight Consumer Staples, Telecoms and Financials. Outlook With an increasing influence of geopolitics on market returns and volatility, we believe that our approach to finding quality companies at attractive valuations is more important than ever. The Guinness US Equity Fund currently trades at an attractive valuation to the MSCI USA Index on both a price-to-earnings and free-cash-flow-yield basis. We believe this provides good value to our investors and puts us in good stead in our search for long-term capital growth. We see time and again that companies who have demonstrated their ability to earn significantly above cost of capital returns on investment for long periods are well placed to weather whatever economic environments they find themselves in. This ability to generate economic profits also allows these companies to continue to grow, albeit at potentially more moderate rates. This is usually well rewarded when market sentiment turns and investors begin to monitor cash flows and earnings results more closely than they might have when markets were rallying. We would argue that in today’s world this type of approach of focusing on value and business quality remains a sensible way to invest in equities. Guinness Asset Management Limited July 2018 20

Guinness Asset Management Funds plc

Investment Manager's report (continued) For the financial period ended 30 June 2018 Guinness Best of Asia Fund (the “Fund”) Performance summary in US Dollars: Class Y compared with MSCI AC Asia Pacific ex Japan Index Calendar years

Annualised 6 months

1 year

3 years

5 years

2013

2014

2015

2016

2017

Fund

-5.3%

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

Index

-4.0%

+10.1%

+7.7%

+8.1%

+4.1%

+3.5%

-8.8%

+7.4%

+37.8%

The Fund underperformed in the first six months of the year, returning –5.3% versus the benchmark –4.0%. In the first quarter, the Fund lagged the benchmark slightly. Markets began the year strongly, rallying for most of January. A sharp correction came in February, as volatility, which had been running at very low levels, began to normalise. The Fund’s underperformance came, for the most part, in the second quarter. After a period of range trading in April and May, Asia took another leg down in June, as fears surrounding trade tensions increased. The Fund, which we expect to generally do better on a relative basis in rising markets, underperformed over the period. Since the end of the second quarter, Asian markets have stabilised somewhat. We expect this Fund capture more upside than Asian Equity Income, but less than that of some of our competitor funds that are most geared towards growth stocks. However, we expect to preserve capital better than those competitors and over time we believe this Fund will deliver consistent performance. From a country perspective (as measured by their respective MSCI indices), the best performers were New Zealand (+1.1%), Australia (– 0.2%) and Taiwan (–0.9%). The worst performers were the Philippines (–21.1%), Indonesia (–18.0%) and Pakistan (–11.4%). On a sector basis, the strongest performers were Healthcare (+10.6%), Energy (+3.3%) and Consumer Staples (+2.2%). The weakest sectors were Telecom Services (–12.9%), Consumer Discretionary (–10.2%) and Industrials (–9.6%). Within the portfolio, the best performing stocks were Autohome (+57.8%), Tata Consultancy Services (+28.9%), Haier Electronics (+26.3%), Corporate Travel Management (+24.9%) and Infosys (+19.9%). Autohome runs China’s largest classified listings website for automobiles. The company reported strong growth in earnings and is launching new initiatives to further boost growth such as auto financing with its major shareholder, the insurer Ping An. Two of the top performing stocks were our Indian IT services company holdings – Tata Consultancy Services and Infosys. Both companies have benefited from an improved demand environment, with better conditions for the retail and financial services customer segments. The transition of the traditional IT service companies into newer areas, such as the cloud and digital, continues at a rapid pace – for TCS, digital revenues now comprise 25% of the total. Haier Electronics distributes washing machines and heaters under the “Haier” brand and is increasingly focusing on logistics for white good appliances. The company provides deliveries for large home appliances on Tmall.com, an Alibaba-owned platform which is one of the most visited websites in the world. The worst performing stocks were Yangzijiang Shipbuilding (–37.1%), St Shine Optical (–30.3%), NetEase (–26.6%), Hanon Systems (– 26.1%) and Geely Automobile (–24.3%). After returning more than 100% last year, it is not surprising that Yangzijiang would give up some of the gains this year. The stock continued to suffer in the second quarter, as the shipbuilding industry experienced tough conditions. Adverse foreign exchange movements and higher steel costs have led to reduced gross margins for the company. However, management reported good recent contract wins, and indicated that they will be discerning in selecting future contracts in the depressed pricing environment – something we like to hear. After going through a pronounced cyclical downturn, conditions in the shipbuilding industry look set to improve. As older, lower-specification ships are scrapped, new orders are likely to come through. Tougher regulations to reduce emissions will also be a tailwind, accelerating the rate at which older vessels are scrapped. Yangzijiang’s designs are well placed to benefit; the company has been focusing on advanced hull designs that are more fuel-efficient than those used previously. St Shine has also been faced with higher costs, resulting in lower gross margin levels and prompting analysts to reduce their earnings expectations for the stock. Partly lower margins are a result of higher labour costs, but partly they are a result of depreciation as the company expands its capacity. St Shine is forecast to achieve strong revenue growth in 2018 as a result of its new US direct-to-consumer customer, Hubble. The effect will be to decrease exposure to Japan, which currently accounts for more than half the company’s revenues. Portfolio Changes We made no changes to the portfolio in the period. Portfolio Position The Fund is overweight Information Technology, Consumer Discretionary, Health Care and Consumer Staples. The Fund is underweight Materials, Real Estate, Financials, Energy, Telecom Services, Utilities and Industrials (the Fund has no holdings in Materials, Real Estate, Energy, Telecommunication Services or Utilities). Looking at countries where the Fund has direct exposure, overweight positions are in India, China, Taiwan, Singapore and Thailand. The Fund has underweight positions in Australia and South Korea.

21

Guinness Asset Management Funds plc

Investment Manager's report (continued) For the financial period ended 30 June 2018 Guinness Best of Asia Fund (the “Fund”) (continued) Outlook Asian markets have been weaker over the first half of 2018, but that is not unexpected given the strong run they achieved in 2016 and 2017. Earnings expectations are supportive of robust rates of growth in 2018 and 2019, and multiples are still at a reasonable level. To us, the market looks attractive. Trade tensions have given some pause for thought, and they remain an overhang for investors. However, the response from markets has been mainly to increase the discount rate and reduce valuation multiples, rather than negatively revise earnings forecasts. In recent weeks, we have seen signs that the outlook on trade may not be as bad as feared – the improvement in relations between the US and Europe being a welcome positive development in this regard. We believe that by positioning the portfolio in quality companies that have competitive advantages over peers, and consequently have achieved superior returns on capital on a sustained basis, we will ultimately benefit as shareholders from long-term growth in earnings. The portfolio trades at a modest premium to the benchmark – not unreasonable, we believe, given the returns profile and growth expectations of the companies in which we are investing. Guinness Asset Management Limited August 2018

22

Guinness Asset Management Funds plc

Statement of financial position (unaudited) As at 30 June 2018

Note Assets Financial assets at fair value through profit or loss - Transferable securities Cash and cash equivalents Dividends receivable Subscriptions receivable Total assets Liabilities Bank overdraft Securities purchased payable Investment manager fee Investment manager administration fee CGT - Provision Redemptions payable Total liabilities (excluding net assets attributable to holders of redeemable participating shares) Net assets attributable to holders of redeemable participating shares

Guinness Global Energy Fund USD

Guinness Alternative Energy Fund USD

Guinness Global Money Managers Fund USD

Guinness Global Equity Income Fund USD

Guinness Asian Equity Income Fund USD

Guinness European Equity Income Fund USD

295,009,161 40,533 562,397 10,457,588 306,069,679

12,539,002 877,827 58,058 31,528 13,506,415

8,885,001 65,291 4,689 4,029 8,959,010

506,599,760 16,011,804 1,693,011 2,595,426 526,900,001

113,213,006 3,186,157 252,038 666,974 117,318,175

5,323,251 207,641 5,931 30,036 5,566,859

1,656,827 3,772,203 221,610 110,274 460,805

9,203 5,407 18,235

8,744 3,562 -

348,334 199,821 4,095,027

57,289 46,736 142,291

5,735 2,168 12,858

6,221,719

32,845

12,306

4,643,182

246,316

20,761

299,847,960

13,473,570

8,946,704

522,256,819

117,071,859

5,546,098

3 4

5 7

The accompanying notes form an integral part of these financial statements 23

Guinness Asset Management Funds plc

Statement of financial position (unaudited) (continued) As at 30 June 2018

Note Assets Financial assets at fair value through profit or loss - Transferable securities Cash and cash equivalents Dividends receivable Subscriptions receivable Total assets Liabilities Bank overdraft Securities purchased payable Investment manager fee Investment manager administration fee CGT - Provision Redemptions payable Total liabilities (excluding net assets attributable to holders of redeemable participating shares) Net assets attributable to holders of redeemable participating shares

Guinness Global Innovators Fund USD

Guinness Best of China Fund USD

Guinness Emerging Markets Equity Income Fund USD

Guinness Global Equity Fund USD

Guinness US Equity Fund USD

Guinness Best of Asia Fund USD

Total Company USD

196,816,467 6,592,444 20,664 1,625,508 205,055,083

3,993,122 21,830 12,080 219,220 4,246,252

350,358 988 351,346

234,252 2,768 254 237,274

244,709 3,114 119 247,942

296,579 5,205 794 302,578

1,143,504,668 27,014,614 2,611,023 15,630,309 1,188,760,614

156,132 78,559 230,643

153,454 3,497 1,536 705

823 142 153 270 -

105 94 -

56 98 -

124 123 -

1,657,650 3,925,657 810,971 448,531 270 4,960,564

465,334

159,192

1,388

199

154

247

11,803,643

204,589,749

4,087,060

349,958

237,075

247,788

302,331

1,176,956,971

3 4

5 7

The accompanying notes form an integral part of these financial statements 24

Guinness Asset Management Funds plc

Statement of financial position (audited) (continued) As at 31 December 2017

Note Assets Financial assets at fair value through profit or loss - Transferable securities Cash and cash equivalents Dividends receivable Subscriptions receivable Total assets Liabilities Investment manager fee Investment manager administration fee CGT - Provision Redemptions payable Total liabilities (excluding net assets attributable to holders of redeemable participating shares) Net assets attributable to holders of redeemable participating shares

Guinness Global Energy Fund USD

Guinness Alternative Energy Fund USD

Guinness Global Money Managers Fund USD

Guinness Global Equity Income Fund USD

Guinness Asian Equity Income Fund USD

Guinness European Equity Income Fund USD

282,585,957 3,943,194 312,625 183,392 287,025,168

11,324,844 395,275 5,504 78,028 11,803,651

9,674,694 197,539 11,729 189,176 10,073,138

467,911,045 7,932,871 904,093 1,335,284 478,083,293

94,805,093 1,647,819 153,755 944,062 97,550,729

20,461,613 633,263 49,558 21,144,434

218,001 106,722 3,489,946

8,528 4,337 9,719 3,639

9,595 3,849 2,637

319,365 183,863 671,898

42,793 36,840 116,701

7,412 8,081 70,105

3,814,669

26,223

16,081

1,175,126

196,334

85,598

283,210,499

11,777,428

10,057,057

476,908,167

97,354,395

21,058,836

3 4

5 7

The accompanying notes form an integral part of these financial statements 25

Guinness Asset Management Funds plc

Statement of financial position (audited) (continued) As at 31 December 2017

Note Assets Financial assets at fair value through profit or loss - Transferable securities Cash and cash equivalents Dividends receivable Subscriptions receivable Total assets Liabilities Securities purchased payable Investment manager fee Investment manager administration fee CGT - Provision Redemptions payable Total liabilities (excluding net assets attributable to holders of redeemable participating shares) Net assets attributable to holders of redeemable participating shares

Guinness Global Innovators Fund USD

Guinness Best of China Fund USD

Guinness Emerging Markets Equity Income Fund USD

Guinness Global Equity Fund USD

Guinness US Equity Fund USD

Guinness Best of Asia Fund USD

Total Company USD

153,648,708 4,615,290 17,280 2,391,925 160,673,203

1,811,086 34,336 1,627 58,399 1,905,448

302,324 1,334 709 304,367

245,036 3,300 52 248,388

246,571 2,810 117 249,498

302,308 264,166 566,474

1,043,319,279 19,671,197 1,407,491 5,229,824 1,069,627,791

113,344 58,923 480,824

1,180 658 59,871

177 115 -

57 96 -

55 97 -

265,813 4 4 -

265,813 720,511 403,585 9,719 4,895,621

653,091

61,709

292

153

152

265,821

6,295,249

160,020,112

1,843,739

304,075

248,235

249,346

300,653

1,063,332,542

3 4

5 7

The accompanying notes form an integral part of these financial statements 26

Guinness Asset Management Funds plc

Statement of comprehensive income (unaudited) For the financial period ended 30 June 2018 Guinness Global Energy Fund USD

Guinness Alternative Energy Fund USD

Guinness Global Money Managers Fund USD

Guinness Global Equity Income Fund USD

Guinness Asian Equity Income Fund USD

Guinness European Equity Income Fund USD

3,649,272 629 -

174,684 58 11,055

264,159 -

9,626,557 1,443 359

2,109,203 26,098

432,126 957

3

25,334,502 28,984,403

(804,741) (618,944)

(659,618) (395,459)

(10,318,063) (689,704)

(10,054,275) (7,918,974)

(334,800) 98,283

5 7

1,308,189 641,764 1,949,953

59,366 31,111 90,477

58,692 23,694 82,386

2,095,634 1,192,045 3,287,679

336,613 277,944 614,557

47,273 38,419 85,692

27,034,450

(709,421)

(477,845)

(3,977,383)

(8,533,531)

12,591

63,273 2,516 65,789

169 169

55 55

4,427,236 688 4,427,924

1,304,059 3,527 1,307,586

57,604 1,734 59,338

616,631

11,346

35,631

1,512,489

107,344

85,081

26,352,030

(720,936)

(513,531)

(9,917,796)

(9,948,461)

(131,828)

Note Investment income Dividend Income Interest income Other income Net gain /(loss) on financial assets at fair value through profit or loss and foreign exchange Total investment income /(expense) Expenses Investment manager fees Investment manager administration fees CGT - Provision Total operating expenses Net income/(expense) Finance costs Dividend distribution Interest expense Total finance costs Taxation Withholding tax on dividends Increase/(decrease) in net assets attributable to holders of redeemable participating shares from continuing operations

12

There were no gains/losses in the period other than the increase/(decrease) in net assets attributable to holders of redeemable participating shares.

The accompanying notes form an integral part of these financial statements 27

Guinness Asset Management Funds plc

Statement of comprehensive income (unaudited) (continued) For the financial period ended 30 June 2018 Guinness Global Innovators Fund USD

Guinness Best of China Fund USD

Guinness Emerging Markets Equity Income Fund USD

Guinness Global Equity Fund USD

Guinness US Equity Fund USD

Guinness Best of Asia Fund USD

Total Company USD

1,610,194 654 -

47,192 -

5,349 -

3,072 -

1,704 -

5,082 -

17,928,594 2,784 38,469

3

(1,052,659) 558,189

(293,003) (245,811)

(23,800) (18,451)

(10,771) (7,699)

(1,862) (158)

(20,274) (15,192)

1,760,636 19,730,483

5 7

875,604 447,124 1,322,728

15,950 7,602 23,552

1,094 847 354 2,295

456 607 1,063

349 616 965

783 768 1,551

4,800,003 2,662,541 354 7,462,898

(764,539)

(269,363)

(20,746)

(8,762)

(1,123)

(16,743)

12,267,585

1,655 1,655

348 348

89 134 223

16 16

-

4 4

5,852,261 10,846 5,863,107

277,568

1,559

381

346

435

233

2,649,044

(1,043,762)

(271,270)

(21,350)

(9,124)

(1,558)

(16,980)

3,755,434

Note Investment income Dividend Income Interest income Other Income Net gain/(loss) on financial assets at fair value through profit or loss and foreign exchange Total investment income/(expense) Expenses Investment manager fees Investment manager administration fees CGT - Provision Total operating expenses Net income/(expense) Finance costs Dividend distribution Interest expense Total finance costs Taxation Withholding tax on dividends Increase/(decrease) in net assets attributable to holders of redeemable participating shares from continuing operations

12

There were no gains/losses in the period other than the increase/(decrease) in net assets attributable to holders of redeemable participating shares.

The accompanying notes form an integral part of these financial statements 28

Guinness Asset Management Funds plc

Statement of comprehensive income (unaudited) (continued) For the financial period ended 30 June 2017 Guinness Global Energy Fund USD

Guinness Alternative Energy Fund USD

Guinness Global Money Managers Fund USD

Guinness Global Equity Income Fund USD

Guinness Asian Equity Income Fund USD

Guinness European Equity Income Fund USD

4,475,851 -

120,695 15 4,495

132,728 -

6,997,936 -

877,802 -

384,994 -

3

(54,393,545) (49,917,694)

677,092 802,297

1,039,318 1,172,046

33,537,370 40,535,306

6,941,010 7,818,812

1,186,332 1,571,326

5 7

1,490,183 764,259 2,254,442

39,036 19,137 58,173

34,453 15,247 49,700

1,393,215 872,952 2,266,167

122,349 108,381 230,730

14,793 23,888 38,681

(52,172,136)

744,124

1,122,346

38,269,139

7,588,082

1,532,645

82,328 5,644 87,972

265 265

81 81

3,388,668 2,500 3,391,168

682,633 512 683,145

546 1,376 1,922

772,971

10,330

17,895

1,161,027

64,479

67,337

(53,033,079)

733,529

1,104,370

33,716,944

6,840,458

1,463,386

Note Investment income Dividend Income Interest income Other income Net (loss)/gain on financial assets at fair value through profit or loss and foreign exchange Total investment (expense)/income Expenses Investment manager fees Investment manager administration fees Total operating expenses Net (expense)/income Finance costs Dividend distribution Interest expense Total finance costs Taxation Withholding tax on dividends (Decrease)/increase in net assets attributable to holders of redeemable participating shares from continuing operations

12

There were no gains/losses in the financial period other than the (decrease)/increase in net assets attributable to holders of redeemable participating shares.

The accompanying notes form an integral part of these financial statements 29

Guinness Asset Management Funds plc

Statement of comprehensive income (unaudited) (continued) For the financial period ended 30 June 2017

Guinness Global Innovators Fund USD

Guinness Best of China Fund USD

Guinness Emerging Markets Equity Income Fund USD

Guinness Global Equity Fund USD

Guinness US Equity Fund USD

Total Company USD

875,202 -

10,911 -

3,149 -

2,842 -

1,538 -

13,883,648 15 4,495

3

12,752,885 13,628,087

164,289 175,200

36,923 40,072

24,439 27,281

25,366 26,904

1,991,479 15,879,637

5 7

403,233 222,401 625,634

3,066 1,768 4,834

879 574 1,453

314 540 854

305 539 844

3,501,826 2,029,686 5,531,512

13,002,453

170,366

38,619

26,427

26,060

10,348,125

832 832

32 32

-

-

-

4,154,175 11,242 4,165,417

170,646

646

273

356

364

2,266,324

12,830,975

169,688

38,346

26,071

25,696

3,916,384

Note Investment income Dividend Income Interest income Other Income Net (loss)/gain on financial assets at fair value through profit or loss and foreign exchange Total investment (expense)/ income Expenses Investment manager fees Investment manager administration fees Total operating expenses Net income Finance costs Dividend distribution Interest expense Total finance costs Taxation Withholding tax on dividends (Decrease)/increase in net assets attributable to holders of redeemable participating shares from continuing operations

12

There were no gains/losses in the financial period other than the (decrease)/increase in net assets attributable to holders of redeemable participating shares.

The accompanying notes form an integral part of these financial statements 30

Guinness Asset Management Funds plc

Statement of changes in net assets attributable to holders of redeemable participating shares (unaudited) For the financial period ended 30 June 2018

Guinness Global Energy Fund USD

Guinness Alternative Energy Fund USD

Guinness Global Money Managers Fund USD

283,210,499

11,777,428

10,057,057

476,908,167

97,354,395

21,058,836

Increase/(decrease) in net assets attributable to holders of redeemable participating shares from continuing operations

26,352,030

(720,936)

(513,531)

(9,917,796)

(9,948,461)

(131,828)

Issue of redeemable participating shares

74,055,140

5,725,964

1,381,509

121,631,596

40,323,155

3,700,118

Redemption of redeemable participating shares

(83,769,709)

(3,308,886)

(1,978,331)

(66,365,148)

(10,657,230)

(19,081,028)

Net assets attributable to holders of redeemable participating shares at the end of the financial period

299,847,960

13,473,570

8,946,704

522,256,819

117,071,859

5,546,098

Net assets attributable to holders of redeemable participating shares at the start of the financial period

Guinness Global Equity Income Fund USD

Guinness Asian Equity Income Fund USD

Guinness European Equity Income Fund USD

Guinness Global Innovators Fund USD

Guinness Best of China Fund USD

Guinness Emerging Markets Equity Income Fund USD

Guinness Global Equity Fund USD

Guinness US Equity Fund USD

Guinness Best of Asia Fund USD

Total Company USD

Net assets attributable to holders of redeemable participating shares at the start of the financial period

160,020,112

1,843,739

304,075

248,235

249,346

300,653

1,063,332,542

Increase/(decrease) in net assets attributable to holders of redeemable participating shares from continuing operations

(1,043,762)

(271,270)

(21,350)

(9,124)

(1,558)

(16,980)

3,755,434

Issue of redeemable participating shares

63,239,536

3,396,145

658,028

75,151

-

19,223

314,205,565

Redemption of redeemable participating shares

(17,626,137)

(881,554)

(590,795)

(77,187)

-

(565)

(204,336,570)

Net assets attributable to holders of redeemable participating shares at the end of the financial period

204,589,749

4,087,060

349,958

237,075

247,788

302,331

1,176,956,971

The accompanying notes form an integral part of these financial statements 31

Guinness Asset Management Funds plc

Statement of changes in net assets attributable to holders of redeemable participating shares (unaudited) (continued) For the financial period ended 30 June 2017

Guinness Global Energy Fund USD

Guinness Alternative Energy Fund USD

Guinness Global Money Managers Fund USD

Net assets attributable to holders of redeemable participating shares at the start of the financial period

324,459,561

7,065,592

5,816,755

307,773,627

36,723,975

162,298

(Decrease)increase in net assets attributable to holders of redeemable participating shares from continuing operations

(53,033,079)

733,529

1,104,370

33,716,944

6,840,458

1,463,386

Issue of redeemable participating shares

114,064,034

1,798,580

987,034

151,387,543

20,799,442

14,933,437

Redemption of redeemable participating shares

(90,088,817)

(1,092,402)

(1,297,548)

(68,290,979)

(6,158,582)

(829,526)

Net assets attributable to holders of redeemable participating shares at the end of the financial period

295,401,699

8,505,299

6,610,611

424,587,135

58,205,293

15,729,595

Guinness Global Equity Income Fund USD

Guinness Asian Equity Income Fund USD

Guinness European Equity Income Fund USD

Guinness Global Innovators Fund USD

Guinness Best of China Fund USD

Guinness Emerging Markets Equity Income Fund USD

Guinness Global Equity Fund USD

Guinness US Equity Fund USD

Total Company USD

Net assets attributable to holders of redeemable participating shares at the start of the financial period

77,126,980

605,654

210,825

209,573

206,683

760,361,523

(Decrease)/increase in net assets attributable to holders of redeemable participating shares from continuing operations

12,830,975

169,688

38,346

26,071

25,696

3,916,384

Issue of redeemable participating shares

33,399,569

531,646

8,234

5,971

63

337,915,553

Redemption of redeemable participating shares

(19,507,608)

(449,425)

-

(11,500)

(5,500)

(187,731,887)

Net assets attributable to holders of redeemable participating shares at the end of the financial period

103,849,916

857,563

257,405

230,115

226,942

914,461,573

The accompanying notes form an integral part of these financial statements 32

Guinness Asset Management Funds plc

Statement of cashflows (unaudited) For the financial period ended 30 June 2018 Guinness Global Energy Fund USD Cash flow from operating activities Increase/(Decrease) in net assets attributable to holders of redeemable participating shares from continuing operations Adjustment for: Other income Interest Income Distributions to holders of redeemable shares Dividend income Withholding taxes Interest expense Net operating cash flow before change in operating assets and liabilities

Guinness Alternative Energy Fund USD

Guinness Global Money Managers Fund USD

Guinness Global Equity Income Fund USD

Guinness Asian Equity Income Fund USD

Guinness European Equity Income Fund USD

26,352,030

(720,936)

(513,531)

(9,917,796)

(9,948,461)

(131,828)

(629) 63,273 (3,649,272) 616,631 2,516

(11,055) (58) (174,684) 11,346 169

(264,159) 35,631 55

(359) (1,443) 4,427,236 (9,626,557) 1,512,489 688

(26,098) 1,304,059 (2,109,203) 107,344 3,527

(957) 57,604 (432,126) 85,081 1,734

23,384,549

(895,218)

(742,004)

(13,605,742)

(10,668,832)

(420,492)

(12,423,204) 750,223 11,711,568

(1,214,158) 6,622 (2,102,754)

789,693 (3,775) 43,914

(38,688,715) 3,468,056 (48,826,401)

(18,407,913) 49,982 (29,026,763)

15,138,362 (64,837) 14,653,033

2,782,869 629 (2,516) 14,492,550

110,784 58 11,055 (169) (1,981,026)

235,568 (55) 279,427

7,325,150 1,443 359 (688) (41,500,137)

1,903,576 26,098 (3,527) (27,100,616)

341,114 957 (1,734) 14,993,370

(63,273) 63,780,944 (83,769,709) (20,052,038)

5,772,464 (3,308,886) 2,463,578

1,566,656 (1,978,331) (411,675)

(4,427,236) 120,371,454 (66,365,148) 49,579,070

(1,304,059) 40,600,243 (10,657,230) 28,638,954

(57,604) 3,719,640 (19,081,028) (15,418,992)

(5,559,488)

482,552

(132,248)

8,078,933

1,538,338

(425,622)

3,943,194

395,275

197,539

7,932,871

1,647,819

633,263

Cash and cash equivalents at the end of the financial period

(1,616,294)

877,827

65,291

16,011,804

3,186,157

207,641

Breakdown of cash and cash equivalents Cash and cash equivalents Bank overdraft

40,533 (1,656,827)

877,827 -

65,291 -

16,011,804 -

3,186,157 -

207,641 -

Net (increase)/ decrease in financial assets at fair value through profit or loss Net increase/(decrease) in other payables Cash from/(used in) operations Dividend received Interest received Other income received Interest paid Net cash from/(used in) operating activities Cash flows from financing activities Distributions paid to holders of redeemable shares Issue of redeemable participating shares Redemption of participating shares Net cash (used in)/from financing activities Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at the start of the financial period

The accompanying notes form an integral part of these financial statements 33

Guinness Asset Management Funds plc

Statement of cashflows (unaudited) (continued) For the financial period ended 30 June 2018

Guinness Global Innovators Fund USD

Guinness Best of China Fund USD

Guinness Emerging Markets Equity Income Fund USD

(1,043,762)

(271,270)

(21,350)

(654) (1,610,194) 277,568 1,655

(47,192) 1,559 348

(2,375,387)

Net (increase)/ decrease in financial assets at fair value through profit or loss Net increase/(decrease) in other payables Cash from/(used in) operations

Guinness US Equity Fund USD

Guinness Best of Asia Fund USD

(9,124)

(1,558)

(16,980)

89 (5,349) 381 134

(3,072) 346 16

(1,704) 435 -

(5,082) 233 4

3,755,434 (38,469) (2,784) 5,852,261 (17,928,594) 2,649,044 10,846

(316,555)

(26,095)

(11,834)

(2,827)

(21,825)

(5,702,262)

(43,167,759) (187,757) (45,730,903)

(2,182,036) 97,483 (2,401,108)

(48,034) 273 (73,856)

10,784 46 (1,004)

1,862 2 (963)

5,729 (265,574) (281,670)

(100,185,389) 3,850,744 (102,036,907)

Dividend received Interest received Other income received Interest paid Net cash from/(used in) operating activities

1,329,242 654 (1,655) (44,402,662)

35,180 (348) (2,366,276)

4,689 (134) (69,301)

2,524 (16) 1,504

1,267 304

4,055 (4) (277,619)

14,076,018 2,784 38,469 (10,846) (87,930,482)

Cash flows from financing activities Distributions paid to holders of redeemable shares Issue of redeemable participating shares Redemption of participating shares Net cash (used in)/from financing activities

64,005,953 (17,626,137) 46,379,816

3,235,324 (881,554) 2,353,770

(89) 658,028 (590,795) 67,144

75,151 (77,187) (2,036)

-

19,223 (565) 18,658

(5,852,261) 303,805,080 (204,336,570) 93,616,249

Net (decrease)/increase in cash and cash equivalents

1,977,154

(12,506)

(2,157)

(532)

304

(258,961)

5,685,767 -

Cash and cash equivalents at the start of the financial period

4,615,290

34,336

1,334

3,300

2,810

264,166

19,671,197

Cash and cash equivalents at the end of the financial period

6,592,444

21,830

(823)

2,768

3,114

5,205

25,356,964

Breakdown of cash and cash equivalents Cash and cash equivalents Bank overdraft

6,592,444 -

21,830 -

(823)

2,768 -

3,114 -

5,205 -

27,014,614 (1,657,650)

Cash flow from operating activities Increase/(decrease)in net assets attributable to holders of redeemable participating shares from continuing operations Adjustment for: Other income Interest Income Distributions to holders of redeemable shares Dividend income Withholding taxes Interest expense Net operating cash flow before change in operating assets and liabilities

Guinness Global Equity Fund USD

The accompanying notes form an integral part of these financial statements 34

Total Company USD

Guinness Asset Management Funds plc

Statement of cashflows (unaudited) (continued) For the financial period ended 30 June 2017 Guinness Global Energy Fund USD Cash flow from operating activities (Decrease)/increase in net assets attributable to holders of redeemable participating shares from continuing operations Adjustment for: Other income Interest Income Distributions to holders of redeemable shares Dividend income Withholding taxes Interest expense Net operating cash flow before change in operating assets and liabilities

Guinness Alternative Energy Fund USD

Guinness Global Money Managers Fund USD

Guinness Global Equity Income Fund USD

Guinness Asian Equity Income Fund USD

Guinness European Equity Income Fund USD

(53,033,079)

733,529

1,104,370

33,716,944

6,840,458

1,463,386

82,328 (4,475,851) 772,971 5,644

4,495 (15) (120,695) 10,330 265

(132,728) 17,895 81

3,388,668 (6,997,936) 1,161,027 2,500

682,633 (877,802) 64,479 512

546 (384,994) 67,337 1,376

(56,647,987)

627,909

989,618

31,271,203

6,710,280

1,147,651

Net decrease/(increase) in financial assets at fair value through profit or loss Net increase in other receivables Net (decrease)/increase in other payables Cash (used in)/from operations

23,023,281 (9,998) (33,634,704)

(1,370,766) (15,343) (1,365) (759,565)

(878,631) (137,245) 211,057 184,799

(118,924,911) 9,536,196 (78,117,512)

(21,213,323) 15,378 (14,487,665)

(15,216,782) 10,284 (14,058,847)

Dividend received Interest received Other income received Interest paid Net cash (used in)/from operating activities

3,377,230 (5,644) (30,263,118)

88,178 15 (4,495) (265) (676,132)

111,357 (81) 296,075

5,478,041 (2,500) (72,641,971)

618,091 (512) (13,870,086)

308,402 (1,376) (13,751,821)

Cash flows from financing activities Distributions paid to holders of redeemable shares Issue of redeemable participating shares Redemption of participating shares Net cash from/(used in) financing activities

(82,328) 116,417,396 (89,762,071) 26,572,997

1,793,296 (1,179,777) 613,519

973,085 (1,319,032) (345,947)

(3,388,668) 152,767,868 (68,565,026) 80,814,174

(682,633) 20,862,317 (6,135,639) 14,044,045

(546) 14,988,998 (861,610) 14,126,842

(3,690,121)

(62,613)

(49,872)

8,172,203

173,959

375,021

Cash and cash equivalents at the start of the financial period

5,390,622

188,908

138,006

8,466,480

474,206

507

Cash and cash equivalents at the end of the financial period

1,700,501

126,295

88,134

16,638,683

648,165

375,528

Breakdown of cash and cash equivalents Cash and cash equivalents Bank overdraft

1,700,501 -

126,295 -

88,134 -

16,638,683 -

648,165 -

375,528 -

Net (decrease)/increase in cash and cash equivalents

The accompanying notes form an integral part of these financial statements 35

Guinness Asset Management Funds plc

Statement of cashflows (unaudited) (continued) For the financial period ended 30 June 2017 Guinness Global Innovators Fund USD

Guinness Best of China Fund USD

Guinness Emerging Markets Equity Income Fund USD

12,830,975

169,688

38,346

(875,202) 170,646 832

(10,911) 646 32

12,127,251

Net decrease/(increase) in financial assets at fair value through profit or loss Net increase in other receivables Net (decrease)/increase in other payables Cash (used in)/from operations

Guinness US Equity Fund USD

Total Company USD

26,071

25,696

3,916,384

(3,149) 273 -

(2,842) 356 -

(1,538) 364 -

4,495 (15) 4,154,175 (13,883,648) 2,266,324 11,242

159,455

35,470

23,585

24,522

(3,531,043)

(23,380,413) 33,640 (11,219,522)

(242,196) 413 (82,328)

(51,845) 210 (16,165)

(22,641) 109 1,053

(23,619) 104 1,007

(158,301,846) (152,588) 9,796,028 (152,189,449)

Dividend received Interest received Other income received Interest paid Net cash (used in)/from operating activities

711,788 (832) (10,508,566)

5,589 (32) (76,771)

2,542 (13,623)

2,351 3,404

1,129 2,136

10,704,698 15 (4,495) (11,242) (141,500,473)

Cash flows from financing activities Distributions paid to holders of redeemable shares Issue of redeemable participating shares Redemption of participating shares Net cash from/(used in) financing activities

33,049,974 (19,665,997) 13,383,977

523,385 (436,425) 86,960

8,234 8,234

5,971 (11,500) (5,529)

63 (5,500) (5,437)

(4,154,175) 340,174,229 (186,726,219) 149,293,835

2,875,411

10,189

(5,389)

(2,125)

(3,301)

7,793,362

732,653

5,707

7,456

5,355

5,711

15,415,611

Cash and cash equivalents at the end of the financial period

3,608,064

15,896

2,067

3,230

2,410

23,208,973

Breakdown of cash and cash equivalents Cash and cash equivalents Bank overdraft

3,608,064 -

15,896 -

3,000 933

3,230 -

2,410 -

23,209,906 933

Cash flow from operating activities (Decrease)/increase in net assets attributable to holders of redeemable participating shares from continuing operations Adjustment for: Other income Interest income Distributions to holders of redeemable shares Dividend income Withholding taxes Interest expense Net operating cash flow before change in operating assets and liabilities

Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at the start of the financial period

The accompanying notes form an integral part of these financial statements 36

Guinness Global Equity Fund USD

Guinness Asset Management Funds plc

Notes to the financial statements For the financial period ended 30 June 2018 1.

General information

Guinness Asset Management Funds plc (the “Company”) is an open-ended investment company with variable capital incorporated in Ireland on 12 December 2007 under the Irish Companies Acts and the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 2011 (as amended) (the “UCITS Regulations”) with registration number 450670. The Company is organised in the form of an umbrella fund. Each sub-fund has a distinct portfolio of investments. At the reporting date there are twelve active sub-funds. 2.

Significant accounting policies

(a) Basis of preparation The interim report and condensed unaudited financial statements of the Company for the reporting period ended 30 June 2018 have been prepared in accordance with IAS 34 “Interim financial reporting” and Irish statute comprising the Companies Act 2014, 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 Regulations”). The financial statements have been prepared under the historical cost convention, except for financial assets and liabilities classified at fair value through profit or loss that have been measured at fair value. The interim report and condensed unaudited financial statements do not contain all of the information and disclosures required in the full annual financial statements and should be read in conjunction with the audited financial statements for the financial year ended 31 December 2017, which have been prepared in accordance with International Financial Reporting Standards (“IFRS”), the Companies Act 2014, the UCITS Regulations and the Central Bank Regulations. The preparation of financial statements in accordance with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the financial period. Actual results could differ from those estimates and these differences could be material.

(b)

Changes to accounting policies

In the current financial period the Company has adopted IFRS 9 Financial Instruments. Comparative figures for the financial year ended 31 December 2017 have not been restated. Therefore, financial instruments in the comparative period are still accounted for in accordance with IAS 39 Financial Instruments: Recognition and Measurement. The Company has assessed the classification of financial instruments as at the date of initial application and has applied such classification retrospectively. Based on that assessment all financial assets previously held at fair value continue to be measured at fair value.

37

Guinness Asset Management Funds plc

Notes to the financial statements (continued) For the financial period ended 30 June 2018 3.

Financial assets at fair value through profit or loss

(i)

Net gains and losses of financial assets at fair value through profit or loss and foreign exchange

For the financial period ended 30 June 2018 Guinness Global Energy Fund USD

Guinness Alternative Energy Fund USD

Guinness Global Money Managers Fund USD

Guinness Global Equity Income Fund USD

Guinness Asian Equity Income Fund USD

Guinness European Equity Income Fund USD

(713,578)

374,859

44,746

12,783,384

1,406,143

1,647,776

Change in unrealised gain/(loss) on financial assets at fair value through profit or loss and foreign exchange

26,048,080

(1,179,600)

(704,364)

(23,101,447)

(11,460,418)

(1,982,576)

Net gain/(loss) on financial assets at fair value through profit or loss and foreign exchange

25,334,502

(804,741)

(659,618)

(10,318,063)

(10,054,275)

(334,800)

Net realised (loss)/gain on financial assets at fair value through profit or loss and foreign exchange

Guinness Global Innovators Fund USD

Guinness Best of China Fund USD

Guinness Emerging Markets Equity Income Fund USD

Guinness Global Equity Fund USD

Guinness US Equity Fund USD

Guinness Best of Asia Fund USD

Total Company USD

(52,313)

(17,345)

29,980

99

-

1,522

15,505,273

Change in unrealised gain/(loss) on financial assets at fair value through profit or loss and foreign exchange

(1,000,346)

(275,658)

(53,780)

(10,870)

(1,862)

(21,796)

(13,744,637)

Net gain/(loss) on financial assets at fair value through profit or loss and foreign exchange

(1,052,659)

(293,003)

(23,800)

(10,771)

(1,862)

(20,274)

1,760,636

Net realised (loss)/gain on financial assets at fair value through profit or loss and foreign exchange

38

Guinness Asset Management Funds plc

Notes to the financial statements (continued) For the financial period ended 30 June 2018 3.

Financial assets at fair value through profit or loss (continued)

(i)

Net gains and losses of financial assets at fair value through profit or loss and foreign exchange (continued)

For the financial period ended 30 June 2017 Guinness Global Energy Fund USD

Guinness Alternative Energy Fund USD

Guinness Global Money Managers Fund USD

Guinness Global Equity Income Fund USD

Guinness Asian Equity Income Fund USD

Guinness European Equity Income Fund USD

Net realised (loss)/gain on financial assets at fair value through profit or loss and foreign exchange

(4,098,908)

(252,135)

52,986

876,126

(174,304)

93,244

Change in unrealised gain/(loss) on financial assets at fair value through profit or loss and foreign exchange

(50,294,637)

929,227

986,332

32,661,244

7,115,314

1,093,088

Net (loss)/gain on financial assets at fair value through profit or loss and foreign exchange

(54,393,545)

677,092

1,039,318

33,537,370

6,941,010

1,186,332

Guinness Global Innovators Fund USD

Guinness Best of China Fund USD

Guinness Emerging Markets Equity Income Fund USD

Guinness Global Equity Fund USD

Guinness US Equity Fund USD

Total Company USD

769,223

24,461

1,459

250

188

(2,707,410)

Change in unrealised gain/(loss) on financial assets at fair value through profit or loss and foreign exchange

11,983,662

139,828

35,464

24,189

25,178

4,698,889

Net (loss)/gain on financial assets at fair value through profit or loss and foreign exchange

12,752,885

164,289

36,923

24,439

25,366

1,991,479

Net realised (loss)/gain on financial assets at fair value through profit or loss and foreign exchange

39

Guinness Asset Management Funds plc

Notes to the financial statements (continued) For the financial period ended 30 June 2018 3.

Financial assets at fair value through profit or loss (continued)

(ii)

Fair value of financial instruments

IFRS 13 – Fair Value Measurement establishes a fair value hierarchy for inputs used in measuring fair value that classifies investments according to how observable the inputs are. Observable inputs are those that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs reflect the Company’s assumptions, made in good faith, about the inputs market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique: Level 1 – Inputs reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date; Level 2 – Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly, including inputs in markets that are not considered to be active; and Level 3 – Inputs that are not observable. Inputs are used in applying the various valuation techniques and broadly refer to the assumptions that market participants use to make valuation decisions, including assumptions about risk. Inputs may include price information, volatility statistics, specific and broad credit data, liquidity statistics, and other factors. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Observable data is considered to be market data which is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market. The categorisation of a financial instrument within the hierarchy is based upon the pricing transparency of the instrument and does not necessarily correspond to the perceived risk of that instrument by the Investment Manager. There were no transfers between any levels during the financial period ended 30 June 2018 and 31 December 2017. The following table provides an analysis of financial assets that are measured at fair value, grouped into levels 1 to 3 at the reporting date: As at 30 June 2018 Level 1 USD

Level 2 USD

Level 3 USD

Total USD

Guinness Global Energy Fund Held for trading - Equities Financial assets at fair value through profit or loss

295,009,161 295,009,161

-

-

295,009,161 295,009,161

Guinness Alternative Energy Fund Held for trading - Equities Financial assets at fair value through profit or loss

12,539,002 12,539,002

-

-

12,539,002 12,539,002

Guinness Global Money Managers Fund Held for trading - Equities Financial assets at fair value through profit or loss

8,885,001 8,885,001

-

-

8,885,001 8,885,001

Guinness Global Equity Income Fund Held for trading - Equities Financial assets at fair value through profit or loss

506,599,760 506,599,760

-

-

506,599,760 506,599,760

Guinness Asian Equity Income Fund Held for trading - Equities Financial assets at fair value through profit or loss

113,213,006 113,213,006

-

-

113,213,006 113,213,006

Guinness European Equity Income Fund Held for trading - Equities Financial assets at fair value through profit or loss

5,323,251 5,323,251

-

-

5,323,251 5,323,251

Guinness Global Innovators Fund Held for trading - Equities Financial assets at fair value through profit or loss

196,816,467 196,816,467

-

-

196,816,467 196,816,467

Guinness Best of China Fund Held for trading - Equities Financial assets at fair value through profit or loss

3,993,122 3,993,122

-

-

3,993,122 3,993,122

Guinness Emerging Markets Equity Income Fund Held for trading - Equities Financial assets at fair value through profit or loss

350,358 350,358

-

-

350,358 350,358

40

Guinness Asset Management Funds plc

Notes to the financial statements (continued) For the financial period ended 30 June 2018 3.

Financial assets at fair value through profit or loss (continued)

(ii)

Fair value of financial instruments (continued)

The following table provides an analysis of financial assets that are measured at fair value, grouped into levels 1 to 3 at the reporting date (continued): As at 30 June 2018 (continued) Level 1 USD

Level 2 USD

Level 3 USD

Total USD

Guinness Global Equity Fund Held for trading - Equities Financial assets at fair value through profit or loss

234,252 234,252

-

-

234,252 234,252

Guinness US Equity Fund Held for trading - Equities Financial assets at fair value through profit or loss

244,709 244,709

-

-

244,709 244,709

Guinness Best of Asia Fund Held for trading - Equities Financial assets at fair value through profit or loss

296,579 296,579

-

-

296,579 296,579

Level 1 USD

Level 2 USD

Level 3 USD

Total USD

Guinness Global Energy Fund Held for trading - Equities Financial assets at fair value through profit or loss

282,585,957 282,585,957

-

-

282,585,957 282,585,957

Guinness Alternative Energy Fund Held for trading - Equities Financial assets at fair value through profit or loss

11,324,844 11,324,844

-

-

11,324,844 11,324,844

Guinness Global Money Managers Fund Held for trading - Equities Financial assets at fair value through profit or loss

9,674,694 9,674,694

-

-

9,674,694 9,674,694

Guinness Global Equity Income Fund Held for trading - Equities Financial assets at fair value through profit or loss

467,911,045 467,911,045

-

-

467,911,045 467,911,045

Guinness Asian Equity Income Fund Held for trading - Equities Financial assets at fair value through profit or loss

94,805,093 94,805,093

-

-

94,805,093 94,805,093

Guinness European Equity Income Fund Held for trading - Equities Financial assets at fair value through profit or loss

20,461,613 20,461,613

-

-

20,461,613 20,461,613

Guinness Global Innovators Fund Held for trading - Equities Financial assets at fair value through profit or loss

153,648,708 153,648,708

-

-

153,648,708 153,648,708

Guinness Best of China Fund Held for trading - Equities Financial assets at fair value through profit or loss

1,811,086 1,811,086

-

-

1,811,086 1,811,086

Guinness Emerging Markets Equity Income Fund Held for trading - Equities Financial assets at fair value through profit or loss

302,324 302,324

-

-

302,324 302,324

As at 31 December 2017

41

Guinness Asset Management Funds plc

Notes to the financial statements (continued) For the financial period ended 30 June 2018 3.

Financial assets at fair value through profit or loss (continued)

(iii)

Fair value of financial instruments (continued)

The following table provides an analysis of financial assets that are measured at fair value, grouped into levels 1 to 3 at the reporting date (continued): As at 31 December 2017 (continued) Level 1 USD

Level 2 USD

Level 3 USD

Total USD

Guinness Global Equity Fund Held for trading - Equities Financial assets at fair value through profit or loss

245,036 245,036

-

-

245,036 245,036

Guinness US Equity Fund Held for trading - Equities Financial assets at fair value through profit or loss

246,571 246,571

-

-

246,571 246,571

302,308

-

-

302,308

302,308

-

-

302,308

Guinness Best of Asia Fund Held for trading - Equities Financial assets at fair value through profit or loss

All other assets and liabilities held by the sub-funds at the reporting dates 30 June 2018 and 31 December 2017 are carried at amortised cost; their carrying values are a reasonable approximation of fair value. Cash and cash equivalents have been classified at level 1, due to the liquid nature of the asset. All other assets and liabilities held, outside of those discussed above, have been classified at level 2.

42

Guinness Asset Management Funds plc

Notes to the financial statements (continued) For the financial period ended 30 June 2018 4.

Cash and cash equivalents and bank overdraft

Cash and cash equivalents and bank overdrafts represents the cash balances and bank overdrafts held at JP Morgan Bank (Ireland) plc (the “Depositary”) and the investor money collection account held at Bank of New York Mellon – London Branch (“BNYM”). As at 30 June 2018

J.P. Morgan Bank (Ireland) plc J.P. Morgan Bank (Ireland) plc J.P. Morgan Bank (Ireland) plc J.P. Morgan Bank (Ireland) plc BNYM – London Branch BNYM – London Branch BNYM – London Branch Total

Credit Rating (S&P) AAAAAAAAAA-

Local Currency EUR KRW TWD USD USD EUR GBP

Guinness Global Energy Fund USD (1,656,827) 40,030 503 (1,616,294)

Guinness Alternative Energy Fund USD 849,068 28,759 877,827

Guinness Global Money Managers Fund USD 65,291 65,291

Guinness Global Equity Income Fund USD 15,695,454 92,419 24,168 199,763 16,011,804

Guinness Asian Equity Income Fund USD 1 3,112,578 11,676 61,902 3,186,157

Guinness European Equity Income Fund USD 207,641 207,641

As at 30 June 2018 (continued)

J.P. Morgan Bank (Ireland) plc J.P. Morgan Bank (Ireland) plc J.P. Morgan Bank (Ireland) plc J.P. Morgan Bank (Ireland) plc BNYM – London Branch BNYM – London Branch BNYM – London Branch Total

Credit Rating (S&P) AAAAAAAAAA-

Local Currency EUR KRW TWD USD USD EUR GBP

Guinness Global Innovators Fund USD 5,355,418 283,294 708,748 244,984 6,592,444

Guinness Best of China Fund USD 6,923 13,587 1,320 21,830

43

Guinness Emerging Markets Equity Income Fund USD (823) (823)

Guinness Global Equity Fund USD 2,768 2,768

Guinness US Equity Fund USD 3,114 3,114

Guinness Best of Asia Fund USD 5,205 5,205

Total Company USD 207,641 1 6,923 23,444,833 415,743 744,592 537,231 25,356,964

Guinness Asset Management Funds plc

Notes to the financial statements (continued) For the financial period ended 30 June 2018 4.

Cash and cash equivalents and bank overdraft (continued)

Cash and cash equivalents and bank overdrafts represents the cash balances and bank overdrafts held at the Depositary and the investor money collection account held at BNYM. As at 31 December 2017

J.P. Morgan Bank (Ireland) plc J.P. Morgan Bank (Ireland) plc J.P. Morgan Bank (Ireland) plc J.P. Morgan Bank (Ireland) plc BNYM – London Branch BNYM – London Branch BNYM – London Branch Total

Credit Rating (S&P) AAAAAAAAAA-

Local Currency EUR GBP USD TWD USD EUR GBP

Guinness Global Energy Fund USD 3,165,452 773,179 4,207 356 3,943,194

Guinness Alternative Energy Fund USD 395,004 271 395,275

Guinness Global Money Managers Fund USD 197,539 197,539

Guinness Global Equity Income Fund USD 7,875,809 20,414 36,648 7,932,871

Guinness Asian Equity Income Fund USD 1,570,035 77,784 1,647,819

Guinness European Equity Income Fund USD 631,910 1,353 633,263

As at 31 December 2017 (continued)

J.P. Morgan Bank (Ireland) plc J.P. Morgan Bank (Ireland) plc J.P. Morgan Bank (Ireland) plc J.P. Morgan Bank (Ireland) plc BNYM – London Branch BNYM – London Branch BNYM – London Branch Total

Credit Rating (S&P) AAAAAAAAAA-

Local Currency EUR GBP USD TWD USD EUR GBP

Guinness Global Innovators Fund USD 4,492,119 3,578 119,593 4,615,290

Guinness Best of China Fund USD 27,572 6,764 34,336

44

Guinness Emerging Markets Equity Income Fund USD 1,334 1,334

Guinness Global Equity Fund USD 3,300 3,300

Guinness US Equity Fund USD 2,810 2,810

Guinness Best of Asia Fund USD 227,320 36,846 264,166

Total Company USD 631,910 17,958,294 36,846 793,593 7,785 242,769 19,671,197

Guinness Asset Management Funds plc

Notes to the financial statements (continued) For the financial period ended 30 June 2018 5.

Investment manager fee

Guinness Asset Management Limited (the “Investment Manager”) is entitled to receive out of the assets of each sub-fund the following fees subject to a maximum fee of 2% of the NAV: Class A shares Class B shares Class C shares Class C EUR accumulation shares Class C EUR distribution shares Class C GBP accumulation shares Class C USD accumulation shares Class D shares Class D EUR accumulation shares Class E shares Class O GBP accumulation shares Class O EUR accumulation shares Class O USD accumulation shares Class X shares Class X EUR accumulation shares

1.00% of the NAV 1.50% of the NAV 1.50% of the NAV 1.50% of the NAV 1.50% of the NAV 1.50% of the NAV 1.50% of the NAV 1.00% of the NAV 1.00% of the NAV 0.75% of the NAV 0.75% of the NAV 0.75% of the NAV 0.75% of the NAV 0.75% of the NAV 0.75% of the NAV

Class X EUR distribution shares Class X GBP accumulation shares Class X GBP distribution shares Class X USD accumulation shares Class X USD distribution shares Class Y EUR accumulation shares Class Y EUR distribution shares Class Y GBP accumulation shares Class Y GBP distribution shares Class Y USD accumulation shares Class Y USD distribution shares Class Z EUR accumulation shares Class Z GBP accumulation shares Class Z GBP distribution shares Class Z USD accumulation shares

0.75% of the NAV 0.75% of the NAV 0.75% of the NAV 0.75% of the NAV 0.75% of the NAV 0.50% of the NAV 0.50% of the NAV 0.50% of the NAV 0.50% of the NAV 0.50% of the NAV 0.50% of the NAV 0.25% of the NAV 0.25% of the NAV 0.25% of the NAV 0.25% of the NAV

The Investment Manager will be entitled to be reimbursed by the company for any reasonable out of pocket expenses incurred by it and any valued added tax (“VAT”) on fees and expenses payable to or by it. Total investment manager fees accrued at the reporting date and charged during the year are disclosed in the statement of financial position and the statement of comprehensive income respectively. 6.

Global Distributor’s fee

Link Fund Manager Solutions (Ireland) Limited (the “Manager”), pays Guinness Asset Management Limited (the “Global Distributor”) a fee out of the assets of the relevant sub-fund of up to 5% on subscription proceeds in respect of Class B Shares or Class C Shares on each sub-fund. This fee may be waived in whole or in part at the discretion of the Global Distributor. No distribution fee was charged for the financial period ended 30 June 2018 (2017: nil). 7.

Other fees and expenses

The Manager pays to the Investment Manager, out of the assets of each sub-fund, an annual administrative fee. The Investment Manager is responsible for paying the administrative expenses of the Company, including establishment costs, fees and expenses payable to the Manager and Link Fund Administrators (Ireland) Limited (the “Administrator”), the Depositary, independent auditor, directors’ fees and general administrative expenses. All administrative expenses of the Company were paid by the Investment Manager out of the investment manager and administration fee. Details of the investment manager administration fee are as follows: • Up to 0.59% of the NAV of each sub-fund on the first $500 million • Up to 0.35% of the NAV of each sub-fund on amounts in excess of $500 million The total investment manager administration fees accrued at the reporting date and charged during the year are disclosed in the statement of financial position and the statement of comprehensive income respectively. Administrative expenses The below provides details of administrative expenses for the financial period ended 30 June 2018. It should be noted that the below fees were paid by the Investment Manager from the investment manager administration fee during the financial period. (i)

Directors’ fees

Aggregate directors’ fees charged during the financial period ended 30 June 2018 amounted to €36,500 (financial year ended 31 December 2017: €69,000). (ii)

Management and administration fees

Where combined assets in the umbrella are greater than €495m, the Manager is entitled to receive out of the assets of the Company a fee as detailed below: - For assets up to €495m - For assets between €495-€750m - For assets over €750m

10 basis points per annum 8 basis points per annum 2.5 basis points per annum

The Administrator was paid by the Manager out of the fees which the Manager earned. The Administrator is also entitled to be repaid out of the assets of the Company, all of its reasonable out of pocket expenses incurred on behalf of the Company which shall include, inter alia, legal fees, courier’s fees and telecommunication costs and expenses.

45

Guinness Asset Management Funds plc

Notes to the financial statements (continued) For the financial period ended 30 June 2018 8.

Exchange rates

The following exchange rates were used to convert assets and liabilities in foreign currencies into the base currency of the Company at the reporting date: 30 June 2018 31 December 2017 Exchange rate to USD Exchange rate to USD Australian Dollar 1.353454 1.278527 Brazilian Real 3.847400 3.317100 Canadian Dollar 1.315450 1.252950 Columbian Peso 2,936.990000 2,984.500000 Danish Krone 6.381500 6.200400 Euro 0.856494 0.832778 Hong Kong Dollar 7.845450 7.817300 Indian Rupee 68.515000 63.827500 Japanese Yen 110.765000 112.650000 Mexican Peso 19.655750 19.565500 Malaysian Ringgit 4.039500 4.047000 Norwegian Krone 8.150400 8.179350 Pound Sterling 0.757431 0.739235 Singapore Dollar 1.363500 1.336400 South African Rand 13.706250 12.380000 South Korean Won 1,114.500000 1,070.550000 Swedish Krona 8.946000 8.187500 Swiss Franc 0.992950 0.974500 Taiwan Dollar 30.488500 29.758500 Thai Baht 33.130000 32.590000 9.

Share capital

Authorised The authorised share capital of the Company is 500,000,000,000 shares of no par value and 2 redeemable non-participating shares of Euro 1.00 each. Subscriber shares There are two non-participating shares currently in issue which were taken by the subscribers to the Company and are held by the Investment Manager. The subscriber shares do not form part of the NAV of the Company and are thus disclosed in the financial statements by way of this note only. Redeemable participating shares Redeemable participating shares carry the right to a proportionate share in the assets of the sub-funds and the holders of redeemable participating shares are entitled to attend and vote on all meetings of the Company and the relevant sub-fund. Shares are redeemable by holders of the relevant share class at the respective NAV. Shareholders may redeem their shares with effect from any dealing day at the NAV per share calculated on or with respect to the relevant dealing day in accordance with the procedures specified in the relevant supplements.

46

Guinness Asset Management Funds plc

Notes to the financial statements (continued) For the financial period ended 30 June 2018 9.

Share capital (continued)

The following table details the share transactions during the financial period ended 30 June 2018:

Guinness Alternative Energy Fund

Guinness Global Money Managers Fund

Guinness Global Equity Income Fund

Guinness Asian Equity Income Fund

Guinness European Equity Income Fund

4,846,922.19 429,459.58 (394,557.04) 4,881,824.73

64,054.67 64,054.67

47.74 47.74

111,468.51 (29,074.55) 82,393.96

-

-

Class B shares: Opening balance Shares issued Shares redeemed Closing balance

6,025,597.78 2,237,326.78 (2,089,445.12) 6,173,479.44

296,880.53 152,245.16 (25,437.83) 423,687.86

45,562.79 9,750.99 (16,147.73) 39,166.05

860,926.56 194,660.83 (132,207.83) 923,379.56

-

-

Class C shares: Opening balance Shares issued Shares redeemed Closing balance

1,018,376.04 155,214.98 (196,663.31) 976,927.71

389,085.00 60,022.05 (54,708.05) 394,399.00

168,757.15 27,127.75 (43,987.63) 151,897.27

3,524,739.70 516,959.70 (556,907.48) 3,484,791.92

-

-

Class C EUR accumulation shares: Opening balance Shares issued Shares redeemed Closing balance

954,845.57 160,823.02 (644,986.29) 470,682.30

22,622.84 16,931.15 (6,031.57) 33,522.42

11,286.29 5,881.08 (900.59) 16,266.78

474,443.39 159,420.40 (115,611.69) 518,252.10

44,607.84 43,734.21 (2,025.48) 86,316.57

17,553.96 19,216.32 (68.96) 36,701.32

Class C EUR distribution shares: Opening balance Shares issued Shares redeemed Closing balance

-

-

-

366,893.24 66,144.37 (85,923.03) 347,114.58

-

-

Class C GBP accumulation shares: Opening balance Shares issued Shares redeemed Closing balance

-

-

-

2,763,225.50 620,001.35 (388,688.58) 2,994,538.27

519,338.14 262,616.74 (80,596.74) 701,358.14

142,666.78 82,588.10 (33,431.93) 191,822.95

Class C USD accumulation shares: Opening balance Shares issued Shares redeemed Closing balance

-

-

-

1,163,933.71 582,668.18 (193,452.47) 1,553,149.42

267,578.19 409,009.92 (261,810.15) 414,777.96

31,695.22 12,817.79 (5,211.15) 39,301.86

Guinness Global Energy Fund Class A shares: Opening balance Shares issued Shares redeemed Closing balance

47

Guinness Asset Management Funds plc

Notes to the financial statements (continued) For the financial period ended 30 June 2018 9.

Share capital (continued)

The following table details the share transactions during the financial period ended 30 June 2018 (continued): Guinness Global Innovators Fund

Guinness Best of China Fund

Guinness Emerging Markets Equity Income Fund

Guinness Global Equity Fund

Guinness US Equity Fund

Guinness Best of Asia Fund

Class A shares: Opening balance Shares issued Shares redeemed Closing balance

-

-

-

-

-

-

Class B shares: Opening balance Shares issued Shares redeemed Closing balance

-

-

-

-

-

-

Class C shares: Opening balance Shares issued Shares redeemed Closing balance

-

-

-

-

-

-

417,442.04 244,844.46 (45,231.48) 617,055.02

464.56 591.55 1,056.11

-

100.00 100.00

100.00 100.00

-

-

-

-

-

-

-

Class C GBP accumulation shares: Opening balance Shares issued Shares redeemed Closing balance

1,843,634.83 905,654.65 (232,959.70) 2,516,329.78

31,123.22 59,854.68 (951.37) 90,026.53

-

100.00 100.00

100.00 100.00

100.00 100.00

Class C USD accumulation shares: Opening balance Shares issued Shares redeemed Closing balance

1,513,341.55 725,482.80 (200,437.73) 2,038,386.62

12,761.52 59,034.11 (10,936.94) 60,858.69

100.00 2,257.82 2,357.82

100.00 3,624.48 3,724.48

100.00 100.00

-

Class C EUR accumulation shares: Opening balance Shares issued Shares redeemed Closing balance Class C EUR distribution shares: Opening balance Shares issued Shares redeemed Closing balance

48

Guinness Asset Management Funds plc

Notes to the financial statements (continued) For the financial period ended 30 June 2018 9.

Share capital (continued)

The following table details the share transactions during the financial period ended 30 June 2018 (continued):

Guinness Alternative Energy Fund

Guinness Global Money Managers Fund

Guinness Global Equity Income Fund

Guinness Asian Equity Income Fund

Guinness European Equity Income Fund

2,177,478.35 579,412.83 (544,166.86) 2,212,724.32

230.60 230.60

40,063.23 (4,450.00) 35,613.23

1,685,914.61 176,348.08 (97,268.56) 1,764,994.13

-

-

-

-

-

100.00 48,350.12 48,450.12

-

-

13,732,267.94 3,623,679.40 (4,785,807.63) 12,570,139.71

754,150.75 (543,055.64) 211,095.11

79,860.81 (434.00) 79,426.81

2,055,251.78 20,347.59 (687,014.00) 1,388,585.37

-

-

Class O EUR accumulation shares: Opening balance Shares issued Shares redeemed Closing balance

-

-

-

100.00 100.00

-

-

Class O GBP accumulation shares: Opening balance Shares issued Shares redeemed Closing balance

-

-

-

100.00 100.00

-

-

Class O USD accumulation shares: Opening balance Shares issued Shares redeemed Closing balance

-

-

-

100.00 100.00

-

-

1,587,932.30 448,369.19 (263,221.31) 1,773,080.18

343,742.85 81,349.74 (47,775.04) 377,317.55

45,723.09 8,775.35 (6,742.52) 47,755.92

-

-

-

Class D shares: Opening balance Shares issued Shares redeemed Closing balance Class D EUR accumulation shares: Opening balance Shares issued Shares redeemed Closing balance Class E shares: Opening balance Shares issued Shares redeemed Closing balance

Class X shares: Opening balance Shares issued Shares redeemed Closing balance

Guinness Global Energy Fund

49

Guinness Asset Management Funds plc

Notes to the financial statements (continued) For the financial period ended 30 June 2018 9.

Share capital (continued)

The following table details the share transactions during the financial period ended 30 June 2018 (continued): Guinness Global Innovators Fund

Guinness Best of China Fund

Guinness Emerging Markets Equity Income Fund

Guinness Global Equity Fund

Guinness US Equity Fund

Guinness Best of Asia Fund

Class D shares: Opening balance Shares issued Shares redeemed Closing balance

-

-

-

-

-

-

Class D EUR accumulation shares: Opening balance Shares issued Shares redeemed Closing balance

-

-

-

-

-

-

Class E shares: Opening balance Shares issued Shares redeemed Closing balance

-

-

-

-

-

-

Class O EUR accumulation shares: Opening balance Shares issued Shares redeemed Closing balance

100.00 100.00

-

-

-

-

-

Class O GBP accumulation shares: Opening balance Shares issued Shares redeemed Closing balance

100.00 100.00

-

-

-

-

-

Class O USD accumulation shares: Opening balance Shares issued Shares redeemed Closing balance

100.00 100.00

-

-

-

-

-

-

-

-

-

-

-

Class X shares: Opening balance Shares issued Shares redeemed Closing balance

50

Guinness Asset Management Funds plc

Notes to the financial statements (continued) For the financial period ended 30 June 2018 9.

Share capital (continued)

The following table details the share transactions during the financial period ended 30 June 2018 (continued):

Guinness Alternative Energy Fund

Guinness Global Money Managers Fund

Guinness Global Equity Income Fund

Guinness Asian Equity Income Fund

Guinness European Equity Income Fund

100.00 100.00

-

-

-

440.71 440.71

100.00 1,220.96 1,320.96

Class X EUR distribution shares: Opening balance Shares issued Shares redeemed Closing balance

-

-

-

3,818.66 3,818.66

552,223.51 114,561.44 (120,479.00) 546,305.95

3,582.64 0.36 3,583.00

Class X GBP accumulation shares: Opening balance Shares issued Shares redeemed Closing balance

-

-

-

-

167,841.92 35,514.90 (21,095.69) 182,261.13

15,230.22 4,664.90 (4,695.30) 15,199.82

Class X GBP distribution shares: Opening balance Shares issued Shares redeemed Closing balance

-

-

-

326,918.08 128,759.75 (17,893.79) 437,784.04

14,529.70 5,762.52 (1,144.93) 19,147.29

9,043.81 3,672.02 (5,204.85) 7,510.98

Class X USD accumulation shares: Opening balance Shares issued Shares redeemed Closing balance

-

-

-

-

2,888.88 2,888.88

100.00 100.00

809,117.69 59,498.83 (74,048.41) 794,568.11

-

-

-

115.91 2.17 118.08

111.89 0.35 112.24

-

-

-

125,068.39 29,687.48 (48,392.27) 106,363.60

700,100.00 399,628.00 1,099,728.00

100.00 100.00

Class X EUR accumulation shares: Opening balance Shares issued Shares redeemed Closing balance

Class X USD distribution shares: Opening balance Shares issued Shares redeemed Closing balance Class Y EUR accumulation shares: Opening balance Shares issued Shares redeemed Closing balance

Guinness Global Energy Fund

51

Guinness Asset Management Funds plc

Notes to the financial statements (continued) For the financial period ended 30 June 2018 9.

Share capital (continued)

The following table details the share transactions during the financial period ended 30 June 2018 (continued):

Class X EUR accumulation shares: Opening balance Shares issued Shares redeemed Closing balance Class X EUR distribution shares: Opening balance Shares issued Shares redeemed Closing balance Class X GBP accumulation shares: Opening balance Shares issued Shares redeemed Closing balance Class X GBP distribution shares: Opening balance Shares issued Shares redeemed Closing balance Class X USD accumulation shares: Opening balance Shares issued Shares redeemed Closing balance Class X USD distribution shares: Opening balance Shares issued Shares redeemed Closing balance Class Y EUR accumulation shares: Opening balance Shares issued Shares redeemed Closing balance

Guinness Global Innovators Fund

Guinness Best of China Fund

Guinness Emerging Markets Equity Income Fund

Guinness Global Equity Fund

Guinness US Equity Fund

Guinness Best of Asia Fund

2,004,553.07 370,024.87 (243,147.91) 2,131,430.03

100.00 100.00

-

100.00 100.00

100.00 100.00

-

-

-

-

-

-

-

125,504.03 56,195.74 (172.79) 181,526.98

4,134.99 4,073.32 (1,018.24) 7,190.07

-

553.03 2,262.67 (213.01) 2,602.69

105.00 105.00

-

-

-

-

-

-

-

44,939.23 36,820.95 (5,035.05) 76,725.13

89.82 20,255.06 (20,307.18) 37.70

-

100.00 100.00

100.00 100.00

-

-

-

-

-

-

-

832,813.71 291,153.93 (49,251.81) 1,074,715.83

-

100.00 100.00

-

-

100.00 100.00

52

Guinness Asset Management Funds plc

Notes to the financial statements (continued) For the financial period ended 30 June 2018 9.

Share capital (continued)

The following table details the share transactions during the financial period ended 30 June 2018 (continued):

Guinness Alternative Energy Fund

Guinness Global Money Managers Fund

Guinness Global Equity Income Fund

Guinness Asian Equity Income Fund

Guinness European Equity Income Fund

-

-

-

698,123.62 329,943.33 (39,308.94) 988,758.01

100.76 1.96 102.72

100.00 100.00

Class Y GBP accumulation shares: Opening balance Shares issued Shares redeemed Closing balance

-

-

-

630,001.62 218,279.17 (74,672.20) 773,608.59

90,147.88 283,056.08 (20,202.15) 353,001.81

100.00 100.00

Class Y GBP distribution shares: Opening balance Shares issued Shares redeemed Closing balance

-

-

-

6,715,578.12 3,812,408.71 (936,851.49) 9,591,135.34

558,240.82 607,768.10 (41,514.91) 1,124,494.01

100.00 100.00

Class Y USD accumulation shares: Opening balance Shares issued Shares redeemed Closing balance

-

-

-

153,426.19 12,011.52 (96,250.35) 69,187.36

56,150.00 114,650.00 (3,750.00) 167,050.00

100.00 100.00

Class Y USD distribution shares: Opening balance Shares issued Shares redeemed Closing balance

-

-

-

234,394.99 17,986.93 (16,539.72) 235,842.20

100.71 1.88 102.59

100.00 100.00

Class Z EUR accumulation shares: Opening balance Shares issued Shares redeemed Closing balance

-

100.00 100.00

-

-

-

-

Class Z GBP accumulation shares: Opening balance Shares issued Shares redeemed Closing balance

-

-

-

-

-

-

Guinness Global Energy Fund Class Y EUR distribution shares: Opening balance Shares issued Shares redeemed Closing balance

53

Guinness Asset Management Funds plc

Notes to the financial statements (continued) For the financial period ended 30 June 2018 9.

Share capital (continued)

The following table details the share transactions during the financial period ended 30 June 2018 (continued): Guinness Global Innovators Fund

Guinness Best of China Fund

Guinness Emerging Markets Equity Income Fund

Guinness Global Equity Fund

Guinness US Equity Fund

Guinness Best of Asia Fund

-

-

101.18 1.41 102.59

-

-

-

408,571.63 388,171.26 (106,767.20) 689,975.69

-

538.55 2,662.76 3,201.31

-

-

100.00 100.00

-

-

107.38 892.55 (888.29) 111.64

-

-

-

663,202.23 410,227.94 (637.01) 1,072,793.16

-

20,543.27 14,535.31 (31,585.07) 3,493.51

-

-

29,500.00 491.03 29,991.03

-

-

101.10 1.35 102.45

-

-

-

Class Z EUR accumulation shares: Opening balance Shares issued Shares redeemed Closing balance

78,625.74 35,515.05 (20,500.00) 93,640.79

-

-

100.00 100.00

100.00 100.00

-

Class Z GBP accumulation shares: Opening balance Shares issued Shares redeemed Closing balance

870,620.62 16,910.93 (43,150.80) 844,380.75

34,902.37 26,991.01 (14,097.07) 47,796.31

-

100.00 100.00

100.00 100.00

100.00 1,056.07 (41.45) 1,114.62

Class Y EUR distribution shares: Opening balance Shares issued Shares redeemed Closing balance Class Y GBP accumulation shares: Opening balance Shares issued Shares redeemed Closing balance Class Y GBP distribution shares: Opening balance Shares issued Shares redeemed Closing balance Class Y USD accumulation shares: Opening balance Shares issued Shares redeemed Closing balance Class Y USD distribution shares: Opening balance Shares issued Shares redeemed Closing balance

54

Guinness Asset Management Funds plc

Notes to the financial statements (continued) For the financial period ended 30 June 2018 9.

Share capital (continued)

The following table details the share transactions during the financial period ended 30 June 2018 (continued):

Guinness Alternative Energy Fund

Guinness Global Money Managers Fund

Guinness Global Equity Income Fund

Guinness Asian Equity Income Fund

Guinness European Equity Income Fund

-

3,453.13 3,453.13

-

3,895,365.21 144,735.60 (270,952.02) 3,769,148.79

2,079,138.80 230,521.75 (75,897.02) 2,233,763.53

958,859.63 84,626.17 (1,003,437.12) 40,048.68

-

315,195.74 315,195.74

-

-

-

-

Guinness Global Energy Fund Class Z GBP distribution shares: Opening balance Shares issued Shares redeemed Closing balance Class Z USD accumulation shares: Opening balance Shares issued Shares redeemed Closing balance

55

Guinness Asset Management Funds plc

Notes to the financial statements (continued) For the financial period ended 30 June 2018 9.

Share capital (continued)

The following table details the share transactions during the financial period ended 30 June 2018 (continued):

Class Z GBP distribution shares: Opening balance Shares issued Shares redeemed Closing balance Class Z USD accumulation shares: Opening balance Shares issued Shares redeemed Closing balance

Guinness Global Innovators Fund

Guinness Best of China Fund

Guinness Emerging Markets Equity Income Fund

Guinness Global Equity Fund

Guinness US Equity Fund

Guinness Best of Asia Fund

-

-

101.14 21,840.94 (8,126.15) 13,815.93

-

-

-

191,621.71 1,773.83 (400.00) 192,995.54

-

-

19,020.96 (6,262.51) 12,758.45

19,589.67 19,589.67

-

56

Guinness Asset Management Funds plc

Notes to the financial statements (continued) For the financial period ended 30 June 2018 9.

Share capital (continued)

The following table details the share transactions during the financial period ended 31 December 2017:

Guinness Alternative Energy Fund

Guinness Global Money Managers Fund

Guinness Global Equity Income Fund

Guinness Asian Equity Income Fund

Guinness European Equity Income Fund

3,938,698.27 3,322,462.72 (2,414,238.80) 4,846,922.19

69,782.58 2,461.07 (8,188.98) 64,054.67

47.74 47.74

118,343.65 4,605.18 (11,480.32) 111,468.51

-

-

Class B shares: Opening balance Shares issued Shares redeemed Closing balance

4,690,817.29 3,240,593.68 (1,905,813.19) 6,025,597.78

321,980.12 64,218.30 (89,317.89) 296,880.53

26,056.71 33,444.56 (13,938.48) 45,562.79

503,826.06 609,853.16 (252,752.66) 860,926.56

-

-

Class C shares: Opening balance Shares issued Shares redeemed Closing balance

1,130,286.92 379,340.88 (491,251.76) 1,018,376.04

306,693.33 198,278.29 (115,886.62) 389,085.00

77,578.39 124,847.70 (33,668.94) 168,757.15

1,982,782.28 2,128,700.72 (586,743.30) 3,524,739.70

-

-

Class C EUR accumulation shares: Opening balance Shares issued Shares redeemed Closing balance

877,765.22 364,266.82 (287,186.47) 954,845.57

9,124.41 13,498.43 22,622.84

5,155.37 10,771.78 (4,640.86) 11,286.29

229,484.89 301,694.47 (56,735.97) 474,443.39

11,412.63 40,179.82 (6,984.61) 44,607.84

100.00 21,195.36 (3,741.40) 17,553.96

Class C EUR distribution shares: Opening balance Shares issued Shares redeemed Closing balance

-

-

-

407,935.22 (41,041.98) 366,893.24

-

-

Class C GBP accumulation shares: Opening balance Shares issued Shares redeemed Closing balance

-

-

-

1,543,296.62 1,794,634.39 (574,705.51) 2,763,225.50

297,621.88 373,249.54 (151,533.28) 519,338.14

100.00 158,873.32 (16,306.54) 142,666.78

Class C USD accumulation shares Opening balance Shares issued Shares redeemed Closing balance

-

-

-

882,171.32 782,899.92 (501,137.53) 1,163,933.71

140,071.29 195,208.70 (67,701.80) 267,578.19

100.00 31,695.22 (100.00) 31,695.22

Guinness Global Energy Fund Class A shares: Opening balance Shares issued Shares redeemed Closing balance

57

Guinness Asset Management Funds plc

Notes to the financial statements (continued) For the financial period ended 30 June 2018 9.

Share capital (continued)

The following table details the share transactions during the financial period ended 31 December 2017 (continued): Guinness Global Innovators Fund

Guinness Best of China Fund

Guinness Emerging Markets Equity Income Fund

Guinness Global Equity Fund

Guinness US Equity Fund

Guinness Best of Asia Fund

Class A shares: Opening balance Shares issued Shares redeemed Closing balance

-

-

-

-

-

-

Class B shares: Opening balance Shares issued Shares redeemed Closing balance

-

-

-

-

-

-

Class C shares: Opening balance Shares issued Shares redeemed Closing balance

-

-

-

-

-

-

176,421.03 479,010.99 (237,989.98) 417,442.04

100.00 364.56 464.56

-

100.00 100.00

100.00 100.00

-

-

-

-

-

-

-

Class C GBP accumulation shares: Opening balance Shares issued Shares redeemed Closing balance

951,016.02 1,353,737.35 (461,118.54) 1,843,634.83

7,376.66 31,925.24 (8,178.68) 31,123.22

-

100.00 100.00

100.00 100.00

100.00 100.00

Class C USD accumulation shares Opening balance Shares issued Shares redeemed Closing balance

802,597.76 1,045,863.69 (335,119.90) 1,513,341.55

100.00 12,761.52 (100.00) 12,761.52

100.00 100.00

100.00 100.00

100.00 100.00

-

Class C EUR accumulation shares: Opening balance Shares issued Shares redeemed Closing balance Class C EUR distribution shares: Opening balance Shares issued Shares redeemed Closing balance

58

Guinness Asset Management Funds plc

Notes to the financial statements (continued) For the financial period ended 30 June 2018 9.

Share capital (continued)

The following table details the share transactions during the financial period ended 31 December 2017 (continued): Guinness Global Energy Fund

Guinness Alternative Energy Fund

Guinness Global Money Managers Fund

Guinness Global Equity Income Fund

Guinness Asian Equity Income Fund

Guinness European Equity Income Fund

1,741,188.23 1,601,720.15 (1,165,430.03) 2,177,478.35

230.60 230.60

67,625.06 (27,561.83) 40,063.23

2,278,334.71 1,325,219.82 (1,917,639.92) 1,685,914.61

-

-

-

-

-

100.00 100.00

-

-

Class E shares: Opening balance Shares issued Shares redeemed Closing balance

18,689,341.34 11,235,227.09 (16,192,300.49) 13,732,267.94

810,585.34 (56,434.59) 754,150.75

80,980.81 (1,120.00) 79,860.81

727,319.15 1,328,682.63 (750.00) 2,055,251.78

-

-

Class X shares: Opening balance Shares issued Shares redeemed Closing balance

2,520,623.58 515,758.54 (1,448,449.82) 1,587,932.30

169,419.69 237,181.41 (62,858.25) 343,742.85

50,373.29 24,333.47 (28,983.67) 45,723.09

-

-

-

Class X EUR accumulation shares: Opening balance Shares issued Shares redeemed Closing balance

-

-

-

-

100.00 340.71 440.71

100.00 100.00

Class X EUR distribution shares: Opening balance Shares issued Shares redeemed Closing balance

-

-

-

-

393,777.29 214,006.74 (55,560.52) 552,223.51

108.34 3,474.30 3,582.64

Class X GBP accumulation shares: Opening balance Shares issued Shares redeemed Closing balance

-

-

-

-

80,916.24 121,685.73 (34,760.05) 167,841.92

3,452.37 22,143.82 (10,365.97) 15,230.22

Class D shares: Opening balance Shares issued Shares redeemed Closing balance Class D EUR accumulation shares: Opening balance Shares issued Shares redeemed Closing balance

59

Guinness Asset Management Funds plc

Notes to the financial statements (continued) For the financial period ended 30 June 2018 9.

Share capital (continued)

The following table details the share transactions during the financial period ended 31 December 2017 (continued): Guinness Global Innovators Fund

Guinness Best of China Fund

Guinness Emerging Markets Equity Income Fund

Guinness Global Equity Fund

Guinness US Equity Fund

Guinness Best of Asia Fund

Class D shares: Opening balance Shares issued Shares redeemed Closing balance

-

-

-

-

-

-

Class D EUR accumulation shares: Opening balance Shares issued Shares redeemed Closing balance

-

-

-

-

-

-

Class E shares: Opening balance Shares issued Shares redeemed Closing balance

-

-

-

-

-

-

Class X shares: Opening balance Shares issued Shares redeemed Closing balance

-

-

-

-

-

-

1,816,428.74 501,207.47 (313,083.14) 2,004,553.07

100.00 100.00

100.00 100.00

100.00 100.00

100.00 100.00

-

-

-

100.00 1.18 101.18

-

-

-

11,091.38 123,235.79 (8,823.14) 125,504.03

100.00 5,020.12 (985.13) 4,134.99

100.00 438.55 538.55

100.00 453.03 553.03

100.00 5.00 105.00

-

Class X EUR accumulation shares: Opening balance Shares issued Shares redeemed Closing balance Class X EUR distribution shares: Opening balance Shares issued Shares redeemed Closing balance Class X GBP accumulation shares: Opening balance Shares issued Shares redeemed Closing balance

60

Guinness Asset Management Funds plc

Notes to the financial statements (continued) For the financial period ended 30 June 2018 9.

Share capital (continued)

The following table details the share transactions during the financial period ended 31 December 2017 (continued): Guinness Global Energy Fund

Guinness Alternative Energy Fund

Guinness Global Money Managers Fund

Guinness Global Equity Income Fund

Guinness Asian Equity Income Fund

Guinness European Equity Income Fund

Class X GBP distribution shares: Opening balance Shares issued Shares redeemed Closing balance

-

-

-

169,787.74 184,283.55 (27,153.21) 326,918.08

17,168.89 34,295.86 (36,935.05) 14,529.70

780.28 10,487.10 (2,223.57) 9,043.81

Class X USD accumulation shares: Opening balance Shares issued Shares redeemed Closing balance

-

-

-

-

2,888.88 2,888.88

100.00 100.00

1,264,636.84 499,746.00 (955,265.15) 809,117.69

-

-

-

111.38 4.53 115.91

108.50 3.39 111.89

Class Y EUR accumulation shares: Opening balance Shares issued Shares redeemed Closing balance

-

-

-

150,497.41 91,386.22 (116,815.24) 125,068.39

700,100.00 700,100.00

-

Class Y EUR distribution shares: Opening balance Shares issued Shares redeemed Closing balance

-

-

-

104.62 1,037,711.98 (339,692.98) 698,123.62

100.76 100.76

-

Class Y GBP accumulation shares: Opening balance Shares issued Shares redeemed Closing balance

-

-

-

323,863.32 431,477.92 (125,339.62) 630,001.62

96,493.96 (6,346.08) 90,147.88

-

Class Y GBP distribution shares: Opening balance Shares issued Shares redeemed Closing balance

-

-

-

4,619,102.16 3,365,859.34 (1,269,383.38) 6,715,578.12

581,511.83 (23,271.01) 558,240.82

-

Class X USD distribution shares: Opening balance Shares issued Shares redeemed Closing balance

61

Guinness Asset Management Funds plc

Notes to the financial statements (continued) For the financial period ended 30 June 2018 9.

Share capital (continued)

The following table details the share transactions during the financial period ended 31 December 2017 (continued):

Class X GBP distribution shares: Opening balance Shares issued Shares redeemed Closing balance Class X USD accumulation shares: Opening balance Shares issued Shares redeemed Closing balance Class X USD distribution shares: Opening balance Shares issued Shares redeemed Closing balance Class Y EUR accumulation shares: Opening balance Shares issued Shares redeemed Closing balance Class Y EUR distribution shares: Opening balance Shares issued Shares redeemed Closing balance Class Y GBP accumulation shares: Opening balance Shares issued Shares redeemed Closing balance Class Y GBP distribution shares: Opening balance Shares issued Shares redeemed Closing balance

Guinness Global Innovators Fund

Guinness Best of China Fund

Guinness Emerging Markets Equity Income Fund

Guinness Global Equity Fund

Guinness US Equity Fund

Guinness Best of Asia Fund

-

-

100.00 7.38 107.38

-

-

-

4,783.47 43,348.80 (3,193.04) 44,939.23

26,244.00 20,377.56 (46,531.74) 89.82

20,100.00 443.27 20,543.27

100.00 100.00

100.00 100.00

-

-

-

100.00 1.10 101.10

-

-

-

810,100.00 533,813.71 (511,100.00) 832,813.71

-

-

-

-

100.00 100.00

-

-

-

-

-

-

68,545.35 441,249.44 (101,223.16) 408,571.63

-

-

-

-

100.00 100.00

-

-

-

-

-

-

62

Guinness Asset Management Funds plc

Notes to the financial statements (continued) For the financial period ended 30 June 2018 9.

Share capital (continued)

The following table details the share transactions during the financial period ended 31 December 2017 (continued):

Guinness Alternative Energy Fund

Guinness Global Money Managers Fund

Guinness Global Equity Income Fund

Guinness Asian Equity Income Fund

Guinness European Equity Income Fund

-

-

-

118,365.94 71,530.09 (36,469.84) 153,426.19

56,150.00 56,150.00

-

Class Y USD distribution shares: Opening balance Shares issued Shares redeemed Closing balance

-

-

-

111,512.51 139,198.56 (16,316.08) 234,394.99

100.71 100.71

-

Class Z EUR accumulation shares: Opening balance Shares issued Shares redeemed Closing balance

-

-

-

-

-

-

Class Z GBP accumulation shares: Opening balance Shares issued Shares redeemed Closing balance

-

-

-

-

-

-

Class Z GBP distribution shares: Opening balance Shares issued Shares redeemed Closing balance

-

-

-

4,696,832.49 440,401.54 (1,241,868.82) 3,895,365.21

1,334,822.93 930,994.96 (186,679.09) 2,079,138.80

5,624.47 1,027,476.05 (74,240.89) 958,859.63

Class Z USD accumulation shares: Opening balance Shares issued Shares redeemed Closing balance

-

-

-

-

-

-

Guinness Global Energy Fund Class Y USD accumulation shares: Opening balance Shares issued Shares redeemed Closing balance

63

Guinness Asset Management Funds plc

Notes to the financial statements (continued) For the financial period ended 30 June 2018 9.

Share capital (continued)

The following table details the share transactions during the financial period ended 31 December 2017: Guinness Global Innovators Fund

Guinness Best of China Fund

Guinness Emerging Markets Equity Income Fund

Guinness Global Equity Fund

Guinness US Equity Fund

Guinness Best of Asia Fund

100.00 663,202.23 (100.00) 663,202.23

-

-

-

-

29,500.00 29,500.00

-

-

-

-

-

-

Class Z EUR accumulation shares: Opening balance Shares issued Shares redeemed Closing balance

974.33 77,751.41 (100.00) 78,625.74

-

-

100.00 100.00

100.00 100.00

-

Class Z GBP accumulation shares: Opening balance Shares issued Shares redeemed Closing balance

816,578.35 223,830.48 (169,788.21) 870,620.62

13,866.88 30,362.19 (9,326.70) 34,902.37

-

100.00 100.00

100.00 100.00

100.00 100.00

-

-

100.00 1.14 101.14

-

-

-

266,284.82 56,336.04 (130,999.15) 191,621.71

-

-

20,100.00 (1,079.04) 19,020.96

20,100.00 (510.33) 19,589.67

-

Class Y USD accumulation shares: Opening balance Shares issued Shares redeemed Closing balance Class Y USD distribution shares: Opening balance Shares issued Shares redeemed Closing balance

Class Z GBP distribution shares: Opening balance Shares issued Shares redeemed Closing balance Class Z USD accumulation shares: Opening balance Shares issued Shares redeemed Closing balance

64

Guinness Asset Management Funds plc

Notes to the financial statements (continued) For the financial period ended 30 June 2018 10. Net asset values Net asset value per share Guinness Global Energy Fund Class A shares Class B shares Class C EUR accumulation shares Class C shares Class D shares Class E shares Class X EUR accumulation shares Class X shares Class X USD distribution shares

Currency

30 June 2018

31 December 2017

USD USD EUR GBP EUR USD EUR GBP USD

$8.9556 $8.6097 € 9.3085 £12.0046 € 11.5900 $9.5336 € 10.3195 £11.2284 $7.9420

$8.1236 $7.8292 € 8.2304 £10.6542 € 10.2221 $8.6372 £9.9281 $7.2719

Guinness Alternative Energy Fund Class A shares Class B shares Class C EUR accumulation shares Class C shares Class D shares Class E shares Class X shares Class Z EUR accumulation shares Class Z GBP accumulation shares Class Z USD accumulation shares

USD USD EUR GBP EUR USD GBP EUR GBP USD

$2.5309 $2.4009 € 8.3370 £4.1983 € 4.0531 $3.3453 £12.0484 € 10.2306 £10.2059 € 9.5968

$2.6516 $2.5217 € 8.5139 £4.3035 € 4.1291 $3.5005 £12.3044

Guinness Global Money Managers Fund Class A shares Class B shares Class C EUR accumulation shares Class C shares Class D shares Class E shares Class X shares

USD USD EUR GBP EUR USD GBP

$18.3161 $17.4580 € 13.1701 £20.7748 € 20.8981 $18.5361 £23.8619

$19.3708 $18.5138 € 13.5796 £21.5020 € 21.4949 $19.5840 £24.6050

Guinness Global Equity Income Fund Class A shares Class B shares Class C EUR accumulation shares Class C EUR distribution shares Class C GBP accumulation shares Class C shares Class C USD accumulation shares Class D EUR accumulation shares Class D shares Class E shares Class O EUR accumulation shares Class O GBP accumulation shares Class O USD accumulation shares Class X EUR distribution shares Class X shares GBP distribution shares Class Y EUR accumulation shares Class Y EUR distribution shares Class Y GBP accumulation shares Class Y GBP distribution shares Class Y USD accumulation shares Class Y USD distribution shares Class Z GBP distribution shares

USD USD EUR EUR GBP GBP USD EUR EUR USD EUR GBP USD EUR GBP EUR EUR GBP GBP USD USD GBP

$14.3266 $13.8203 € 14.4252 € 10.3254 £13.4987 £16.3684 $11.9258 € 10.6811 € 16.4810 $14.6095 € 9.9357 £9.9966 $9.7802 € 10.3862 £17.0297 € 11.1818 € 10.2734 £13.9524 £12.8328 $12.3277 $11.3316 £18.0730

$14.6392 $14.1573 € 14.2079 € 10.2871 £13.3455 £16.3703 $12.0807 € 10.4949 € 16.3787 $14.9094 £16.9677 € 10.9587 € 10.1841 £13.7255 £12.7701 $12.4259 $11.5498 £17.9622

Guinness Asian Equity Income Fund Class C EUR accumulation shares Class C GBP accumulation shares Class C USD accumulation shares Class X EUR accumulation shares Class X EUR distribution shares Class X GBP accumulation shares Class X GBP distribution shares Class X USD accumulation shares Class X USD distribution shares Class Y EUR accumulation shares Class Y EUR distribution shares Class Y GBP accumulation shares Class Y GBP distribution shares Class Y USD accumulation shares Class Y USD distribution shares Class Z GBP distribution shares

EUR GBP USD EUR EUR GBP GBP USD USD EUR EUR GBP GBP USD USD GBP

€16.6217 £14.4463 $12.7612 €17.2116 €14.6015 £18.2180 £15.4633 $14.6979 $12.4505 €10.3734 €10.0909 £10.8587 £10.5765 $11.0854 $10.7917 £15.8181

€17.4078 £15.1864 $13.7452 €17.9580 €15.5351 £19.0800 £16.5152 $15.7722 $13.6144 €10.8099 €10.7261 £11.3581 £11.2821 $11.8806 $11.7952 £16.8523

65

-

Guinness Asset Management Funds plc

Notes to the financial statements (continued) For the financial period ended 30 June 2018 10.

Net asset values (continued)

Net asset value per share (continued)

Currency

30 June 2018

31 December 2017

Guinness European Equity Income Fund Class C EUR accumulation shares Class C GBP accumulation shares Class C USD accumulation shares Class X EUR accumulation shares Class X EUR distribution shares Class X GBP accumulation shares Class X GBP distribution shares Class X USD accumulation shares Class X USD distribution shares Class Y EUR accumulation shares Class Y EUR distribution shares Class Y GBP accumulation shares Class Y GBP distribution shares Class Y USD accumulation shares Class Y USD distribution shares Class Z GBP distribution shares

EUR GBP USD EUR EUR GBP GBP USD USD EUR EUR GBP GBP USD USD GBP

€12.9560 £13.2421 $11.7195 €13.4204 €11.9423 £14.2405 £12.6838 $11.5071 $10.2447 €9.5517 €9.5517 £9.5021 £9.5019 $9.0957 $9.0957 £12.9671

€13.2717 £13.6176 $12.3469 €13.6958 €12.2275 £14.5876 £13.0365 $12.0801 $10.7902 £13.2935

Guinness Global Innovators Fund Class C EUR accumulation shares Class C GBP accumulation shares Class C USD accumulation shares Class O EUR accumulation shares Class O GBP accumulation shares Class O USD accumulation shares Class X EUR accumulation shares Class X GBP accumulation shares Class X USD accumulation shares Class Y EUR accumulation shares Class Y GBP accumulation shares Class Y USD accumulation shares Class Z EUR accumulation shares Class Z GBP accumulation shares Class Z USD accumulation shares

EUR GBP USD EUR GBP USD EUR GBP USD EUR GBP USD EUR GBP USD

€14.2996 £16.1475 $13.3257 €9.8756 £9.9364 $9.7218 €14.6909 £16.5974 $13.6973 €14.8158 £16.7495 $13.8596 €16.9033 £14.9625 $13.9491

€13.9186 £15.7765 $13.3401 €14.2461 £16.1555 $13.6609 €14.3494 £16.2833 $13.8056 €14.4731 £16.4123 $13.8774

Guinness Best of China Fund Class C EUR accumulation shares Class C GBP accumulation shares Class C USD accumulation shares Class X EUR accumulation shares Class X GBP accumulation shares Class X USD accumulation shares Class Z GBP accumulation shares

EUR GBP USD EUR GBP USD GBP

€13.5005 £16.4639 $14.4540 €13.7790 £16.7850 $14.7111 £16.9944

€13.9034 £17.0189 $15.3106 €14.1356 £17.2860 $15.5224 £17.4584

Guinness Emerging Markets Equity Income Fund Class C USD accumulation shares Class Y EUR accumulation shares Class Y EUR distribution shares Class Y GBP accumulation shares Class Y GBP distribution shares Class Y USD accumulation shares Class Y USD distribution shares Class Z GBP distribution shares

USD EUR EUR GBP GBP USD USD GBP

$12.9122 € 11.6901 € 11.3907 £12.1138 £11.8067 $13.0531 $12.7268 £11.8933

$13.8176 € 12.1106 € 11.9667 £12.5969 £12.4539 $13.9069 $13.7479 £12.5175

Guinness Global Equity Fund Class C EUR accumulation shares Class C GBP accumulation shares Class C USD accumulation shares Class X EUR accumulation shares Class X GBP accumulation shares Class X USD accumulation shares Class Z EUR accumulation shares Class Z GBP accumulation shares Class Z USD accumulation shares

EUR GBP USD EUR GBP USD EUR GBP USD

€10.2805 £10.7559 $11.4761 €10.3723 £10.8819 $11.6132 €10.4477 £10.9623 $11.7006

€10.4222 £10.9549 $11.9786 €10.4907 £11.0415 $12.0765 €10.5387 £11.0956 $12.1345

66

Guinness Asset Management Funds plc

Notes to the financial statements (continued) For the financial period ended 30 June 2018 10.

Net asset values (continued)

Net asset value per share (continued)

Currency

30 June 2018

31 December 2017

Guinness US Equity Fund Class C EUR accumulation shares Class C GBP accumulation shares Class C USD accumulation shares Class X EUR accumulation shares Class X GBP accumulation shares Class X USD accumulation shares Class Z EUR accumulation shares Class Z GBP accumulation shares Class Z USD accumulation shares

EUR GBP USD EUR GBP USD EUR GBP USD

€10.6093 £11.1461 $11.8761 €10.7321 £11.2575 $12.0170 €10.8075 £11.3414 $12.1041

€10.4439 £11.0032 $12.0279 €10.5300 £11.0797 $12.1249 €10.5761 £11.1357 $12.1785

Guinness Best of Asia Fund Class C GBP Accumulation Class Y EUR Accumulation Class Y GBP Accumulation Class Y USD Accumulation Class Z GBP Accumulation

GBP EUR GBP USD GBP

£9.6105 €9.6913 £9.6517 $9.4840 £9.6644

£9.9484 €10.0143 £9.9558 $9.9485 £9.9483

67

Guinness Asset Management Funds plc

Notes to the financial statements (continued) For the financial period ended 30 June 2018 11.

Net asset value reconciliation

The published NAV is adjusted for subscriptions receivable and redemptions payable which have a value date of the last NAV of each sub-fund in the accounting period. As at 30 June 2018

Net asset value per financial statements Subscriptions receivable1 Redemptions payable1 Published net asset value

Guinness Global Energy Fund USD 299,847,960 (74,918) 5,184 299,778,226

Guinness Alternative Energy Fund USD 13,473,570 (3,907) 13,469,663

Guinness Global Money Managers Fund USD 8,946,704 (706) 8,945,998

Guinness Global Equity Income Fund USD 522,256,819 (1,189,829) 214,244 521,281,234

Guinness Asian Equity Income Fund USD 117,071,859 (191,466) 23,791 116,904,184

Guinness Global Innovators Fund USD 204,589,749 (592,886) 33,123 204,029,986

Guinness Best of China Fund USD 4,087,060 (660) 309 4,086,709

Guinness Emerging Markets Equity Income Fund USD 349,958 349,958

Guinness Global Equity Fund USD 237,075 237,075

Guinness US Equity Fund USD 247,788 247,788

Guinness Global Energy Fund USD 283,210,499 8,312 283,218,811

Guinness Alternative Energy Fund USD 11,777,428 (1,154) 334 11,776,608

Guinness Global Money Managers Fund USD 10,057,057 10,057,057

Guinness Global Equity Income Fund USD 476,908,167 (149,395) 102,704 476,861,476

Guinness Asian Equity Income Fund USD 97,354,395 (40,251) 465 97,314,609

Guinness Global Innovators Fund USD 160,020,112 (398,859) 94,240 159,715,493

Guinness Best of China Fund USD 1,843,739 (2,029) 58,000 1,899,710

Guinness Emerging Markets Equity Income Fund USD 304,075 304,075

Guinness Global Equity Fund USD 248,235 248,235

Guinness US Equity Fund USD 249,346 249,346

Guinness European Equity Income Fund USD 5,546,098 (4,951) 3,225 5,544,372

As at 30 June 2018 (continued)

Net asset value per financial statements Subscriptions receivable1 Redemptions payable1 Published net asset value

Guinness Best of Asia Fund USD 302,331 302,331

As at 31 December 2017

Net asset value per financial statements Subscriptions receivable1 Redemptions payable1 Published net asset value

Guinness European Equity Income Fund USD 21,058,836 1,054 21,059,890

As at 31 December 2017 (continued)

Net asset value per financial statements Subscriptions receivable1 Redemptions payable1 Published net asset value 1

Subscriptions and redemptions effective 29 June 2018 and 31 December 2017

68

Guinness Best of Asia Fund USD 300,653 300,653

Guinness Asset Management Funds plc

Notes to the financial statements (continued) For the financial period ended 30 June 2018 12. Distribution All share classes of the Company have obtained “Reporting Fund Status” under the United Kingdom Offshore Funds (Tax) Regulations 2009 for the purpose of United Kingdom taxation. Dividends may be paid out of the net investment income as declared by the Directors. Otherwise all income and gains of the sub-funds will be accumulated within the sub-funds. Where the amount of any distribution payable to an individual shareholder would be less than US$100 the Directors in their sole discretion may determine that such amount shall not be distributed but shall be retained and reinvested within and for the benefit of the sub-fund. Income equalisation is applied to all share classes of the Guinness Global Equity Income Fund, class X USD distribution shares on the Guinness Global Energy Fund, and to distributing share classes of Guinness Asian Equity Income Fund and Guinness European Equity Income Fund. The following distributions were declared during the financial period ended 30 June 2018: Guinness Global Energy Fund

Class Class X USD distribution

Currency

Distribution per share

USD

$0.0782

Final distribution paid (base)

Final distribution paid (local)

Income received on subscriptions

Income deducted on redemptions

Net distribution charge

Ex -date

$63,273 $63,273

$63,273

($26,738)

$14,635

$51,170

02 January 2018

Guinness Global Equity Income Fund

Class Class A Class B Class C GBP distribution Class C EUR distribution Class D EUR distribution Class E Class X GBP distribution Class Y EUR distribution Class Y GBP distribution Class Y USD distribution Class Z GBP distribution

Currency USD USD

Distribution per share $0.1622 $0.1570

Final distribution paid (base) $18,080 $135,165

Final distribution paid (local) $18,080 $135,165

Income received on subscriptions ($258) ($15,807)

Income deducted on redemptions $908 $13,330

Net distribution charge $18,730 $132,688

Ex -date 02 January 2018 02 January 2018

GBP

£0.1864

$892,190

£657,011

(£55,742)

£32,988

£634,257

02 January 2018

EUR

€ 0.1165

$51,484

€ 42,761

(€ 5,726)

€ 250

€ 37,285

02 January 2018

EUR USD

€ 0.1853 $0.1651

$376,286 $339,322

€ 312,400 $339,322

(€ 21,299) ($51,539)

€ 1,821 $5

€ 292,922 $287,788

02 January 2018 02 January 2018

GBP

£0.1929

$85,636

£63,063

(£3,111)

£1,939

£61,891

02 January 2018

EUR

€ 0.1151

$96,786

€ 80,354

(€ 9,910)

€ 9,933

€ 80,377

02 January 2018

GBP

£0.1451

$1,323,229

£974,430

(£64,595)

£101,370

£1,011,205

02 January 2018

USD

$0.1278

$29,956

$29,956

($3,070)

$225

$27,111

02 January 2018

GBP

£0.2040

$1,079,102 $4,427,236

£794,655

(£14,708)

£59,011

£838,958

02 January 2018

69

Guinness Asset Management Funds plc

Notes to the financial statements (continued) For the financial period ended 30 June 2018 12.

Distribution (continued)

The following distributions were declared during the financial period ended 30 June 2018 (continued): Guinness Asian Equity Income Fund

Class Class X GBP distribution Class X EUR distribution Class X USD distribution Class Z GBP distribution Class Y EUR distribution Class Y GBP distribution Class Y USD distribution

Currency

Distribution per share

Final distribution paid (base)

Final distribution paid (local)

Income received on subscriptions

Income deducted on redemptions

Net distribution charge

Ex -date

GBP

£0.3231

$6,375

£4,695

(£696)

£544

£4,543

02 January 2018

EUR

€ 0.3023

$201,076

€ 166,937

(€ 8,507)

€ 783

€ 159,213

02 January 2018

USD

$0.2592

$30

$30

-

-

$30

02 January 2018

GBP

£0.3292

$929,453

£684,452

(£53,913)

£10,848

£641,387

02 January 2018

EUR

€ 0.2084

$25

€ 21

-

-

€ 21

02 January 2018

GBP

£0.2204

$167,077

£123,036

(£70,134)

£4,287

£57,189

02 January 2018

USD

$0.2244

$23 $1,304,059

$23

-

-

$23

02 January 2018

Guinness European Equity Income Fund

Class Class X GBP distribution Class X EUR distribution Class X USD distribution Class Z GBP distribution

Currency

Distribution per share

Final distribution paid (base)

Final distribution paid (local)

Income received on subscriptions

Income deducted on redemptions

Net distribution charge

GBP

£0.0429

$527

£388

(£236)

£16

£168

02 January 2018

EUR

€ 0.0400

$173

€ 143

-

-

€ 143

02 January 2018

USD

$0.0347

$4

$4

-

-

$4

02 January 2018

GBP

£0.0437

$56,900 $57,604

£41,902

(£5,400)

£918

£37,420

02 January 2018

Ex -date

Guinness Emerging Markets Equity Income Fund

Class Class X GBP distribution Class X EUR distribution Class X USD distribution Class Z GBP distribution

Currency

Distribution per share

Final distribution paid (base)

Final distribution paid (local)

Income received on subscriptions

Income deducted on redemptions

Net distribution charge

GBP

£0.1750

$26

£19

-

-

£19

02 January 2018

EUR

€ 0.1674

$20

€ 17

-

-

€ 17

02 January 2018

USD

$0.1885

$19

$19

-

-

$19

02 January 2018

GBP

£0.1758

$24

£18

-

-

£18

02 January 2018

Ex -date

$89 The following distributions were declared during the financial period ended 30 June 2017: Guinness Global Energy Fund

Class Class X USD distribution

Currency

Distribution per share

USD

$0.0651

Final distribution paid (base)

Final distribution paid (local)

Income received on subscriptions

Income deducted on redemptions

Net distribution charge

Ex -date

$82,328 $82,328

$82,328

($7,005)

$181,922

$257,245

03 January 2017

70

Guinness Asset Management Funds plc

Notes to the financial statements (continued) For the financial period ended 30 June 2018 12.

Distribution (continued)

The following distributions were declared during the financial period ended 30 June 2017 (continued): Guinness Global Equity Income Fund

Class Class A Class B Class C Class D Class E Class X GBP distribution Class Y EUR distribution Class Y GBP distribution Class Y USD distribution Class Z GBP distribution

Currency USD USD GBP EUR USD

Distribution per share $0.1687 $0.1642 £0.2012 €0.2067 $0.1713

Final distribution paid (base) $19,966 $82,729 $488,336 $489,017 $124,591

Final distribution paid (local) $19,966 $82,729 £398,936 €470,932 $124,591

Income received on subscriptions ($692) ($17,643) (£133,082) (€37,182) ($40,338)

Income deducted on redemptions $765 $4,587 £13,335 €1,351 -

Net distribution charge $20,039 $69,673 £279,189 €435,101 $84,253

Ex -date 03 January 2017 03 January 2017 03 January 2017 03 January 2017 03 January 2017

GBP

£0.2066

$42,940

£35,078

(£10,210)

£559

£25,427

03 January 2017

EUR

€0.1280

$15

€13

-

-

€13

03 January 2017

GBP

£0.1550

$876,405

£715,961

(£275,695)

£7,253

£447,519

03 January 2017

USD

$0.1323

$14,754

$14,754

($4,898)

-

$9,856

03 January 2017

GBP

£0.2174

$1,249,915 $3,388,688

£1,021,091

(£30,177)

£44,714

£1,035,628

03 January 2017

Currency

Distribution per share

Final distribution paid (base)

Final distribution paid (local)

Income received on subscriptions

Income deducted on redemptions

Net distribution charge

Ex -date

GBP

£0.3290

$6,914

£5,649

(£3,659)

£1,463

£3,453

03 January 2017

EUR

€0.3198

$130,767

€125,930

(€15,643)

-

€110,287

03 January 2017

USD

$0.2565

$29

$29

-

-

$29

03 January 2017

GBP

£0.3335

$544,923 $682,633

£445,163

(£33,126)

£67,126

£479,163

03 January 2017

Currency

Distribution per share

Final distribution paid (base)

Final distribution paid (local)

Income received on subscriptions

Income deducted on redemptions

Net distribution charge

Ex -date

GBP

£0.0672

$64

£52

(£30)

£43

£65

03 January 2017

EUR

€0.0652

$7

€7

-

-

€7

03 January 2017

USD

$0.0524

$6

$6

-

-

$6

03 January 2017

GBP

£0.0681

$469 $546

£383

(£86)

£170

£467

03 January 2017

Guinness Asian Equity Income Fund

Class Class X GBP distribution Class X EUR distribution Class X USD distribution Class Z GBP distribution

Guinness European Equity Income Fund

Class Class X GBP distribution Class X EUR distribution Class X USD distribution Class Z GBP distribution

12.

Transactions involving connected persons

Chapter 10 of the Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) (Undertakings for Collective Investment in Transferable Securities) Regulations, 2015 (the “Central Bank Regulations”) headed ‘Transactions involving Connected Persons’ states in regulation 41 that a responsible person shall ensure that any transaction between a UCITS and the management company or depositary to a UCITS; and the delegates or sub-delegates of such a management company or depositary (excluding any non-group company subcustodians appointed by a depositary); and any associated or group company of such a management company, depositary, delegate or sub-delegate (“connected persons”) is conducted at arm’s length and is in the best interests of the unitholders of the UCITS. The Manager is satisfied that there are arrangements (evidenced by written procedures) in place, to ensure that the obligations set out in regulation 41 of the Central Bank Regulations are applied to all transactions with connected persons; and the Board of Directors is satisfied that transactions with connected persons entered into during the financial period complied with the obligations set out in this paragraph.

71

Guinness Asset Management Funds plc

Notes to the financial statements (continued) For the financial period ended 30 June 2018 13.

Related party disclosures

In accordance with IAS 24 ‘Related Party Disclosures’ the related parties of the Company and the required disclosures relating to material transactions with parties are outlined below. Manager The Manager is considered a related party to the Company as it is considered to have significant influence over the Company in its role as manager. The Manager receives fees as set out in note 7. Investment Manager The Investment Manager was appointed by the Manager on behalf of the Company to provide investment management and advisory services to the Company. Directors, Edward Guinness and Andrew E Martin Smith are employees of the Investment Manager. Each sub-fund pays the Investment Manager fees at the rates set out in note 5. The Company also pays an administrative fee to the Investment Manager and out of this fee the Investment Manager is responsible for paying the administrative expenses of the Company, to include establishment costs, fees and expenses payable to the Manager and Administrator, the Depositary, independent auditor, directors' fees and general administrative expenses. Each sub-fund pays the Investment Manager an administration fee at the rates set out in note 7. Details of fees charged are outlined below:

Investment manager fees Investment manager administration fees Total

30 June 2018 USD

30 June 2017 USD

4,800,003 2,662,541 7,462,544

3,501,826 2,029,686 5,531,512

Distributor Guinness Asset Management Limited was appointed by the Manager on behalf of the Company to promote and market the sale of shares and to use all reasonable endeavours to procure subscribers for shares. The Manager pays the Global Distributor a fee out of the assets of the relevant subfund, as per note 6. This fee may be waived in whole or in part at the discretion of the Global Distributor. No fee was charged for the financial period (2017: nil). Directors The Directors are also considered to be related parties. The Company pays the Directors remuneration for acting as Directors of the Company. Aggregate directors’ fees charged during the financial period ended 30 June 2018 amounted to €36,500 (financial year ended 31 December 2017: €69,000). Share transactions The below table provides details of shares held by related parties: As at 30 June 2018 Related Party Edward Guinness Edward Guinness Andrew E. Martin Smith Andrew E. Martin Smith Jennifer Martin Smith Jennifer Martin Smith

Related Party Type Director Director Director Director Spouse of Director Spouse of Director

Sub-fund Guinness Alternative Energy Fund Guinness Alternative Energy Fund Guinness Global Money Managers Fund Guinness Global Equity Income Fund Guinness Global Money Managers Fund Guinness Global Equity Income Fund

Class Class B Class C Class E Class Z Class E Class Z

Shares 2,347.12 1,900.79 7,709.80 4,558.36 3,083.92 4,445.94

As at 31 December 2017 Related Party Edward Guinness Edward Guinness Andrew E. Martin Smith Andrew E. Martin Smith Jennifer Martin Smith Jennifer Martin Smith

Related Party Type Director Director Director Director Spouse of Director Spouse of Director

Sub-fund Guinness Alternative Energy Fund Guinness Alternative Energy Fund Guinness Global Money Managers Fund Guinness Global Equity Income Fund Guinness Global Money Managers Fund Guinness Global Equity Income Fund

Class Class B Class C Class E Class Z Class E Class Z

Shares 2,347.12 1,900.79 7,709.80 4,558.36 3,083.92 4,445.94

The Investment Manager held the following shares in the Company as detailed below: As at 30 June 2018

Class B shares Class X USD accumulation shares Class Z USD accumulation shares Class Y USD accumulation shares

Guinness Alternative Energy Fund USD 108,834.83 -

Guinness Emerging Markets Equity Income Fund USD 3,442.33

Guinness Global Equity Fund USD 12,658.45 -

Guinness US Equity Fund USD 19,489.67 -

Guinness Alternative Energy Fund USD 108,834.83 -

Guinness Emerging Markets Equity Income Fund USD 20,000.00 -

Guinness Global Equity Fund USD 18,920.96

Guinness US Equity Fund USD 19,489.67

As at 31 December 2017

Class B shares Class X USD accumulation shares Class Z USD accumulation shares

72

Guinness Asset Management Funds plc

Notes to the financial statements (continued) For the financial period ended 30 June 2018 14.

Related party disclosures (continued)

Shares transactions (continued) Guinness Capital Management Limited (an associated company of the Investment Manager) held the following shares in the Company as detailed below: As at 30 June 2018

Class A shares Class C EUR accumulation shares Class C GBP accumulation shares Class C USD accumulation shares Class D EUR accumulation shares Class D shares Class E shares Class O EUR Accumulation Class O GBP Accumulation Class O USD Accumulation Class X EUR accumulation shares Class X EUR distribution shares Class X GBP accumulation shares Class X shares Class X USD distribution shares Class Y EUR accumulation shares Class Y EUR distribution shares Class Y GBP accumulation shares Class Y GBP distribution shares Class Y USD accumulation shares Class Y USD distribution shares Class Z EUR accumulation shares Class Z GBP accumulation shares Class Z GBP distribution shares Class Z USD accumulation shares

Guinness Global Energy Fund USD 116,722.20 100 -

Guinness Alternative Energy Fund USD 230.6 302.52 100 100 100

Guinness Global Money Managers Fund USD 47.74 100 4,827.22 -

Guinness Global Equity Income Fund USD 100 100 100 100 100 -

Guinness Asian Equity Income Fund USD 100 118.08 100 102.72 100 102.59 -

73

Guinness European Equity Income Fund USD 100 112.28 112.24 100 100 100 100 100 100 -

Guinness Global Innovators Fund USD 100 100 100 -

Guinness Best of China Fund USD 100 100 100 100 -

Guinness Emerging Markets Equity Income Fund USD 100 100 102.59 100 102.56 51.18 102.45 102.56 -

Guinness Global Equity Fund USD 100 100 100 100 100 100 100 100

Guinness US Equity Fund USD 100 100 100 100 100 100 100 100

Guinness Best of Asia Fund USD 100 100 100 29,991.03 100 -

Guinness Asset Management Funds plc

Notes to the financial statements (continued) For the financial period ended 30 June 2018 14.

Related party disclosures (continued)

Shares transactions (continued) Guinness Capital Management Limited (an associated company of the Investment Manager) held the following shares in the Company as detailed below (continued): As at 31 December 2017

Class A shares Class C EUR accumulation shares Class C GBP accumulation shares Class C USD accumulation shares Class D shares Class D EUR accumulation shares Class E shares Class X shares Class X EUR accumulation shares Class X EUR distribution shares Class X GBP accumulation shares Class X GBP distribution shares Class X USD accumulation shares Class X USD distribution shares Class Y EUR accumulation shares Class Y EUR distribution shares Class Y GBP accumulation shares Class Y USD accumulation shares Class Y USD distribution shares Class Z EUR accumulation shares Class Z GBP accumulation shares Class Z GBP distribution shares Class Z USD accumulation shares

Guinness Global Energy Fund USD 116,722.20 -

Guinness Alternative Energy Fund USD 230.60 302.52 -

Guinness Global Money Managers Fund USD 47.74 100.00 4,827.22 -

Guinness Global Equity Income Fund USD 100.00 -

Guinness Asian Equity Income Fund USD 100.00 90.98 115.91 100.00 100.76 100.00 100.71 -

Guinness European Equity Income Fund USD 100.00 111.92 100.00 111.89 -

Guinness Global Innovators Fund USD -

Guinness Best of China Fund USD 100.00

100.00 100.00 89.82 100.00 -

Guinness Emerging Markets Equity Income Fund USD 100.00 100.00 101.18 100.00 101.14 543.27 101.10 101.14 -

Guinness Global Equity Fund USD 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

At the reporting dates 30 June 2018 and 31 December 2017, the two non-participating shares taken by the subscribers to the Company were held by the Investment Manager.

74

Guinness US Equity Fund USD 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

Guinness Best of Asia Fund USD 100.00 100.00 100.00 29,500.00 100.00 -

Guinness Asset Management Funds plc

Notes to the financial statements (continued) For the financial period ended 30 June 2018 15.

Soft commission arrangements

During the financial period ended 30 June 2018 there were no soft commission arrangements in place. During the financial year ended 31 December 2017, the Investment Manager continued to have a commission sharing arrangement (CSA) in place with Bloomberg Tradebook on the following terms: CSA pool based on the following commission rates: US: 10bps split 6bps for research and 4bps for execution Europe/Canada: 15bps split 10bps for research and 5bps for execution Asia/Hong Kong: 20bps split 13bps for research and 7bps for execution. The CSA pool is used to purchase specialist research in the Energy sector, including £18,060 to Evaluate Energy, $10,000 to Heikkinen Energy and $5,000 to Cornerstone Analytics. The CSA was terminated at year ended 31 December 2017. 16.

Fund Asset regime

The Company operates under a Fund Asset Model, whereby umbrella cash accounts designated in different currencies at umbrella level are held in the name of the Company. The umbrella cash accounts are used to collect subscription monies from investors and pay out redemption monies and also dividends (where applicable) to shareholders. The balances held in the accounts are reconciled on a daily basis and monies are not intended to be held in the accounts for long periods. The monies held in the umbrella cash accounts are considered an asset of the Company and are disclosed in the statement of financial position within cash and cash equivalents. 17.

Efficient portfolio management

No efficient portfolio management techniques were used during the financial period (2017 nil). 18.

Capital management

The redeemable shares issued by the Company provide an investor with the right to require redemption for cash at a value proportionate to the investor’s shares in the sub-fund’s net assets at each redemption date and are classified as liabilities. The sub-fund’s objectives in managing the redeemable shares are to ensure a stable base to maximise returns to all investors and to manage liquidity risk arising from redemptions. 19.

Changes to prospectus

Effective 12 January 2018, the Prospectus was updated to provide for the ability to pay research costs out of the assets of the relevant sub-funds. As a result, the administrative fee payable to the Investment Manager has been increased by a maximum of 0.10% of the Net Asset Value of the relevant sub-fund to provide for the payment of research costs, which research costs will be subject to a maximum charge of 0.10% of the Net Asset Value of the relevant sub-fund. Other general changes included the acquisition of Capita Financial Managers (Ireland) Limited and Capita Financial Administrators (Ireland) Limited by Link Group, and disclosures relating to efficient portfolio management and risk factors in respect of collateral management. 20.

Significant events during the period

The following share classes launched during the financial period ended 30 June 2018: Sub-fund Guinness European Equity Income Fund Guinness European Equity Income Fund Guinness European Equity Income Fund Guinness European Equity Income Fund Guinness European Equity Income Fund Guinness European Equity Income Fund Guinness Alternative Energy Fund Guinness Alternative Energy Fund Guinness Alternative Energy Fund Guinness Global Equity Income Fund Guinness Global Equity Income Fund Guinness Global Equity Income Fund Guinness Global Equity Income Fund Guinness Global Innovators Fund Guinness Global Innovators Fund Guinness Global Innovators Fund Guinness Global Energy Fund

Share class Class Y EUR accumulation Class Y EUR distribution Class Y GBP accumulation Class Y GBP distribution Class Y USD accumulation Class Y USD distribution Class Z EUR accumulation Class Z GBP accumulation Class Z USD accumulation Class X EUR distribution Class O EUR accumulation Class O GBP accumulation Class O USD accumulation Class O EUR accumulation Class O GBP accumulation Class O USD accumulation Class X EUR accumulation

75

Launch date 15 January 2018 15 January 2018 15 January 2018 15 January 2018 15 January 2018 15 January 2018 16 February 2018 16 February 2018 16 February 2018 05 March 2018 15 May 2018 15 May 2018 15 May 2018 15 May 2018 15 May 2018 15 May 2018 25 May 2018

Guinness Asset Management Funds plc

Notes to the financial statements (continued) For the financial period ended 30 June 2018 21.

Events after the reporting date

The following distributions were declared after the reporting date: Guinness Global Equity Income Fund

Class Class A Class B Class C Class D Class E Class X GBP distribution Class Y EUR distribution Class Y GBP distribution Class Y USD distribution Class C EUR distribution Class X EUR distribution Class Z GBP distribution

Currency USD USD GBP EUR USD

Distribution per share $0.2393 $0.2311 £0.2626 € 0.2656 $0.2439

Final distribution paid (base) $19,717 $213,393 $1,201,124 $ 544,093 $338,676

Final distribution paid (local) $19,717 $213,393 £915,106 €468,782 $338,676

Income received on subscriptions ($16,731) (£47,406) (€11,538) ($4,109)

Income deducted on redemptions $2,132 $8,069 £56,882 € 2,087 $46,993

Net distribution charge $21,849 $204,731 £924,582 €459,331 $381,560

Ex -date 02-Jul-18 02-Jul-18 02-Jul-18 02-Jul-18 02-Jul-18

GBP

£0.2729

$156,812

£119,471

(£18,089)

£2,427

£103,809

02-Jul-18

EUR

£0.1654

$189,814

£163,541

(£10,238)

£437

£153,740

02-Jul-18

GBP

£0.2055

$2,587,010

£1,970,978

(£478,952)

£81,139

£1,573,165

02-Jul-18

USD

$0.1891

$44,598

$44,598

($625)

$1,464

$45,437

02-Jul-18

EUR

€ 0.1666

$67,120

€57,829

(€2,741)

€ 6,342

€61,430

02-Jul-18

EUR

€ 0.0436

$193

€166

-

-

€166

02-Jul-18

GBP

£0.2895

$1,432,215 $6,794,765

£1,091,169

(£15,604)

£20,251

£1,095,816

02-Jul-18

Currency

Distribution per share

Final distribution paid (base)

Final distribution paid (local)

Income received on subscriptions

Income deducted on redemptions

Net distribution charge

Ex -date

GBP

£0.2683

$6,743

£5,137

(£378)

£146

£4,905

02-Jul-18

EUR

€0.2547

$161,498

€139,144

(€9,288)

€9,268

€139,124

02-Jul-18

USD

$0.2251

$27

$27

-

-

$27

02-Jul-18

GBP

£0.2742

$803,935

£612,498

(£12,142)

£8,784

£609,140

02-Jul-18

EUR

€0.1757

$21

€18

-

-

€18

02-Jul-18

GBP

£0.1834

$270,690

£206,232

(£36,337)

£3,758

£173,653

02-Jul-18

USD

$0.1950

$20 $1,242,934

$20

-

-

$20

02-Jul-18

Guinness Asian Equity Income Fund

Class Class X GBP distribution Class X EUR distribution Class X USD distribution Class Z GBP distribution Class Y EUR distribution Class Y GBP distribution Class Y USD distribution

Guinness Emerging Markets Equity Income Fund

Class Class Y GBP distribution Class Y EUR distribution Class Y USD distribution Class Z GBP distribution

Currency GBP EUR USD GBP

Distribution per share

Final distribution paid (base)

Final distribution paid (local)

Income received on subscriptions

Income deducted on redemptions

Net distribution charge

Ex -date

£0.1654

$24

£18

(£87)

£114

£45

02-Jul-18

€ 0.1603

$19

€ 16

-

-

€ 16

02-Jul-18

$0.1857

$19

$19

-

-

$19

02-Jul-18

£0.1665

$3,019 $3,081

£2,300

(£2,349)

£929

£880

02-Jul-18

76

Guinness Asset Management Funds plc

Notes to the financial statements (continued) For the financial period ended 30 June 2018 21.

Events after the reporting date (continued)

Guinness European Equity Income Fund

Class Class X GBP distribution Class X EUR distribution Class X USD distribution Class Z GBP distribution Class Y GBP distribution Class Y EUR distribution Class Y USD distribution

22.

Currency GBP EUR USD GBP GBP EUR USD

Distribution per share

Final distribution paid (base)

Final distribution paid (local)

Income received on subscriptions

Income deducted on redemptions

Net distribution charge

Ex -date

£0.3740

$3,687

£2,809

(£1,344)

£111

£1,576

02-Jul-18

€ 0.3537

$1,471

€ 1,267

-

-

€ 1,267

02-Jul-18

$0.3147

$35

$35

-

-

$35

02-Jul-18

£0.3816

$20,059

£15,283

(£6,625)

£138,906

£147,564

02-Jul-18

£0.2797

$37

£28

-

-

£28

02-Jul-18

€ 0.2827

$33

€ 28

-

-

€ 28

02-Jul-18

$0.2786

$28 $25,350

$28

-

-

$28

02-Jul-18

Approval of financial statements

The unaudited financial statements were approved for issue by the Board of Directors on 22 August 2018.

77

Guinness Asset Management Funds plc

Schedule of investments As at 30 June 2018 Currency

Nominal holdings

Fair value in USD

% of NAV

USD USD CAD HKD USD GBP GBP USD USD USD USD GBP USD AUD GBP GBP USD

148,000 244,407 310,231 6,476,000 250,376 3,881,218 883,366 344,075 293,525 391,200 126,750 129,200 437,390 5,249,999 1,487,900 1,560,183 95,947

10,841,000 11,426,027 11,190,437 11,176,547 11,006,529 1,813,961 344,048 10,408,269 10,355,562 5,073,864 10,606,440 86,141 5,362,401 872,767 1,893,684 5,046,593 10,633,806 118,138,076

3.62% 3.81% 3.73% 3.73% 3.67% 0.60% 0.11% 3.47% 3.45% 1.69% 3.54% 0.03% 1.79% 0.29% 0.63% 1.68% 3.55% 39.39%

Integrated Oil & Gas BP PLC Chevron Corp ConocoPhillips Eni SpA Gazprom PJSC Imperial Oil Ltd OMV AG PetroChina Co Ltd Royal Dutch Shell PLC Statoil ASA Suncor Energy Inc TOTAL SA

GBP USD USD EUR USD CAD EUR HKD EUR NOK CAD EUR

1,395,771 84,300 152,800 577,915 2,451,502 322,266 176,395 14,694,679 308,000 405,185 264,762 174,203

10,656,731 10,658,049 10,637,936 10,732,493 10,789,060 10,705,861 10,002,995 11,181,925 10,705,457 10,758,004 10,768,001 10,619,034 128,215,546

3.55% 3.55% 3.55% 3.58% 3.60% 3.57% 3.34% 3.73% 3.57% 3.59% 3.59% 3.54% 42.76%

Oil Equipment & Services Cluff Natural Resources PLC Halliburton Co Helix Energy Solutions Group Inc Schlumberger Ltd Shandong Molong Petroleum Machinery Co Ltd Unit Corp

GBP USD USD USD HKD USD

23,303,370 228,786 660,295 158,700 814,400 205,823

646,092 10,309,097 5,500,257 10,637,661 135,985 5,260,836 32,489,929

0.22% 3.44% 1.83% 3.55% 0.05% 1.75% 10.84%

Pipelines Enbridge Inc

USD

333,200

11,891,908 11,891,908

3.97% 3.97%

Renewable Energy Equipment JA Solar Holdings Co Ltd SunPower Corp

USD USD

320,008 168,500

2,179,254 1,292,395 3,471,649

0.73% 0.43% 1.16%

Specialty Finance Reabold Resources PLC

GBP

90,000,000

802,053 802,053

0.27% 0.27%

Total equities

295,009,161

98.39%

Total financial assets at fair value through profit or loss

295,009,161

98.39%

4,838,799

1.61%

299,847,960

100.00%

Guinness Global Energy Fund Financial assets at fair value through profit or loss Equities Exploration & Production Anadarko Petroleum Corp Apache Corp Canadian Natural Resources Ltd CNOOC Ltd Devon Energy Corp EnQuest PLC JKX Oil & Gas PLC Newfield Exploration Co Noble Energy Inc Oasis Petroleum Inc Occidental Petroleum Corp Ophir Energy PLC QEP Resources Inc Sino Gas & Energy Holdings Ltd Soco International PLC Tullow Oil PLC Valero Energy Corp

Cash and cash equivalents and other net assets Net assets attributable to holders of redeemable participating shares

Analysis of total assets Transferable securities listed on an official stock exchange Other current assets

% of total assets 96.39% 3.61% 100.00%

78

Guinness Asset Management Funds plc

Schedule of investments (continued) As at 30 June 2018 Currency

Nominal holdings

Fair value in USD

% of NAV

HKD

4,200

486,654 486,654

3.61% 3.61%

BRL

50,600

462,678 462,678

3.43% 3.43%

Efficiency Boer Power Holdings Ltd Johnson Controls International plc Kingspan Group PLC LG Chem Ltd Nibe Industrier AB Prysmian SpA Ricardo PLC Schneider Electric SE Wasion Group Holdings Ltd

HKD USD EUR KRW SEK EUR GBP EUR HKD

1,401,000 14,877 11,360 1610 50,721 18,750 39,170 5,940 854,000

203,575 497,636 568,733 481,772 545,083 466,947 496,457 495,316 463,713 4,219,233

1.51% 3.69% 4.22% 3.58% 4.05% 3.47% 3.68% 3.68% 3.44% 31.32%

Electronic Equipment Sensata Technologies Holding PLC

HKD

9,900

471,042 471,042

3.50% 3.50%

Geothermal Ormat Technologies Inc

USD

9,820

522,326 522,326

3.88% 3.88%

Hydro Iniziative Bresciane - Inbre - SpA

EUR

10,856

271,243 271,243

2.01% 2.01%

Renewable Energy Equipment Vestas Wind Systems A/S

HKD

8,015

496,110 496,110

3.68% 3.68%

Solar Canadian Solar Inc China Singyes Solar Technologies Holdings Ltd First Solar Inc Good Energy Group PLC JinkoSolar Holding Co Ltd SunPower Corp Xinyi Solar Holdings Ltd

USD HKD USD GBP USD USD HKD

30,800 1,352,400 7,500 60,759 28,190 56,677 1,222,000

376,992 413,712 394,950 115,513 388,176 434,713 375,379 2,499,435

2.80% 3.07% 2.93% 0.86% 2.88% 3.23% 2.79% 18.56%

Specialty Chemicals Daqo New Energy Corp

HKD

7,900

280,766 280,766

2.08% 2.08%

Wind China Datang Corp Renewable Power Co Ltd China Longyuan Power Group Corp Ltd China Suntien Green Energy Corp Ltd Concord New Energy Group Ltd Huaneng Renewables Corp Ltd TPI Composites Inc

HKD HKD HKD HKD HKD USD

2,651,000 582,000 1,532,000 10,890,000 1,255,000 19,500

452,790 468,837 441,315 478,883 417,510 570,180 2,829,515

3.36% 3.48% 3.28% 3.55% 3.10% 4.22% 20.99%

Total equities

12,539,002

93.06%

Total financial assets at fair value through profit or loss

12,539,002

93.06%

934,568

6.94%

13,473,570

100.00%

Guinness Alternative Energy Fund Financial assets at fair value through profit or loss Equities Building Materials & Fixtures Acuity Brands Inc Biofuels Cosan SA Industria e Comercio

Cash and cash equivalents and other net assets Net assets attributable to holders of redeemable participating shares Analysis of total assets Transferable securities listed on an official stock exchange Other current assets

% of total assets 92.84% 7.16% 100.00%

79

Guinness Asset Management Funds plc

Schedule of investments (continued) As at 30 June 2018 Currency

Nominal holdings

Fair value in USD

% of NAV

USD USD USD USD EUR EUR USD USD GBP CAD ZAR USD CHF USD USD USD GBP USD GBP USD GBP GBP GBP USD USD HKD

1,790 13,940 2,050 3,000 16,751 10,070 660 11,340 72,180 15,600 50,920 8,040 22,720 3,000 10,920 9,323 51,060 18,200 50,850 23,200 54,318 9,330 69,347 3,710 3,600 351,000

266,119 397,987 286,754 113,850 259,237 250,899 329,366 364,808 338,490 280,230 216,627 257,682 313,474 80,280 290,035 286,496 300,658 452,270 429,663 44,776 517,771 319,528 245,369 345,364 417,924 277,384 7,683,039

2.97% 4.45% 3.21% 1.27% 2.90% 2.80% 3.68% 4.08% 3.78% 3.13% 2.42% 2.88% 3.50% 0.90% 3.24% 3.20% 3.36% 5.06% 4.80% 0.50% 5.81% 3.57% 2.74% 3.86% 4.67% 3.10% 85.88%

Banks Vontobel Holding AG

CHF

5,890

426,794 426,794

4.77% 4.77%

Investment Banking & Brokerage Raymond James Financial Inc

USD

4,130

369,016 369,016

4.12% 4.12%

Specialised Finance Nasdaq Inc

USD

4,450

406,152 406,152

4.54% 4.54%

Total equities

8,885,001

99.31%

Total financial assets at fair value through profit or loss

8,885,001

99.31%

61,703

0.69%

8,946,704

100.00%

Guinness Global Money Managers Fund Financial assets at fair value through profit or loss Equities Asset Managers Affiliated Managers Group Inc AllianceBernstein Holding LP Ameriprise Financial Inc Associated Capital Group Inc Azimut Holding SpA Banca Generali SpA BlackRock Inc Blackstone Group LP/The Brewin Dolphin Holdings PLC CI Financial Corp Coronation Fund Managers Ltd Franklin Resources Inc GAM Holding AG GAMCO Investors Inc Invesco Ltd Janus Henderson Group PLC Jupiter Fund Management PLC KKR & Co LP Liontrust Asset Management PLC Och-Ziff Capital Management Group LLC Polar Capital Holdings PLC Rathbone Brothers PLC River & Mercantile Group PLC State Street Corp T Rowe Price Group Inc Value Partners Group Ltd

Cash and cash equivalents and other net assets Net assets attributable to holders of redeemable participating shares Analysis of total assets Transferable securities listed on an official stock exchange Other current assets

% of total assets 99.17% 0.83% 100.00%

80

Guinness Asset Management Funds plc

Schedule of investments (continued) As at 30 June 2018 Currency

Nominal holdings

Fair value in USD

% of NAV

GBP USD

1,750,740 112,400

14,950,245 14,053,372 29,003,617

2.86% 2.69% 5.55%

Broadline Retailers Wal-Mart Stores Inc

USD

168,690

14,448,299 14,448,299

2.77% 2.77%

Business Training Employment Agency Randstad Holding NV

EUR

236,300

13,910,484 13,910,484

2.66% 2.66%

Clothing & Accessories VF Corp

USD

178,120

14,520,342 14,520,342

2.78% 2.78%

Electrical Components & Equipment Eaton Corp PLC Schneider Electric SE

USD EUR

182,460 151,710

13,637,060 12,650,559 26,287,619

2.61% 2.42% 5.03%

Footwear ANTA Sports Products Ltd

HKD

2,857,000

15,130,853 15,130,853

2.90% 2.90%

Healthcare Providers Sonic Healthcare Ltd

AUD

780,135

14,139,167 14,139,167

2.71% 2.71%

Household Products Procter & Gamble Co/The Reckitt Benckiser Group PLC

USD GBP

190,690 185,310

14,885,261 15,264,075 30,149,336

2.85% 2.92% 5.77%

Industrial Machinery Illinois Tool Works Inc

USD

95,660

13,252,736 13,252,736

2.54% 2.54%

Integrated Oil & Gas Royal Dutch Shell PLC

EUR

429,600

14,932,028 14,932,028

2.86% 2.86%

Investment Services Deutsche Boerse AG CME Group Inc NEX Group PLC

EUR USD GBP

112,750 86,790 1,038,231

15,026,857 14,226,617 14,091,063 43,344,537

2.88% 2.72% 2.70% 8.30%

Life Insurance Aflac Inc

USD

305,680

13,150,354 13,150,354

2.52% 2.52%

Media Agencies WPP PLC

GBP

1,073,590

16,909,686 16,909,686

3.24% 3.24%

Mobile Telecommunications Vodacom Group Ltd

ZAR

1,544,460

13,836,333 13,836,333

2.65% 2.65%

Packaged Foods & Meats Danone SA

EUR

186,210

13,668,540 13,668,540

2.62% 2.62%

Personal Products Hengan International Group Co Ltd Unilever PLC

HKD GBP

1,581,500 259,700

15,219,427 14,373,081 29,592,508

2.91% 2.75% 5.66%

Pharmaceuticals AbbVie Inc Johnson & Johnson Merck & Co Inc Novo Nordisk A/S Roche Holding AG

USD USD USD DKK CHF

145,660 119,150 231,880 298,500 65,420

13,495,399 14,457,661 14,075,116 13,845,648 14,530,823 70,404,647

2.59% 2.77% 2.70% 2.65% 2.78% 13.49%

Property & Casualty Insurance Arthur J Gallagher & Co

USD

204,180

13,328,870 13,328,870

2.55% 2.55%

Guinness Global Equity Income Fund Financial assets at fair value through profit or loss Equities Aerospace & Defense BAE Systems PLC United Technologies Corp

81

Guinness Asset Management Funds plc

Schedule of investments (continued) As at 30 June 2018 Currency

Nominal holdings

Fair value in USD

% of NAV

TWD

2,000,000

14,202,076 14,202,076

2.72% 2.72%

Software CA Inc Microsoft Corp

USD USD

398,600 139,950

14,210,090 13,800,470 28,010,560

2.72% 2.64% 5.36%

Telecommunications Equipment Cisco Systems Inc

USD

323,170

13,906,005 13,906,005

2.66% 2.66%

Tobacco British American Tobacco PLC Imperial Brands PLC Japan Tobacco Inc

GBP GBP JPY

349,300 373,310 676,400

17,662,574 13,908,595 18,899,994 50,471,163

3.38% 2.66% 3.62% 9.66%

Total equities

506,599,760

97.00%

Total financial assets at fair value through profit or loss

506,599,760

97.00%

15,657,059

3.00%

522,256,819

100.00%

Guinness Global Equity Income Fund (continued) Financial assets at fair value through profit or loss (continued) Equities (continued) Semiconductors Taiwan Semiconductor Manufacturing Co Ltd

Cash and cash equivalents and other net assets Net assets attributable to holders of redeemable participating shares Analysis of total assets Transferable securities listed on an official stock exchange Other current assets

% of total assets 96.15% 3.85% 100.00%

82

Guinness Asset Management Funds plc

Schedule of investments (continued) As at 30 June 2018 Currency

Nominal holdings

Fair value in USD

% of NAV

HKD

752,000

3,110,389 3,110,389

2.66% 2.66%

Asset Managers Janus Henderson Group PLC

AUD

100,011

3,076,911 3,076,911

2.63% 2.63%

Auto Parts Hanon Systems

KRW

327,690

3,116,657 3,116,657

2.66% 2.66%

Banks BOC Hong Kong Holdings Ltd China Construction Bank Corp Public Bank Bhd China Merchants Bank Co Ltd China Minsheng Banking Corp Ltd DBS Group Holdings Ltd Industrial & Commercial Bank of China Ltd Tisco Financial Group PCL

HKD HKD MYR HKD HKD SGD HKD THB

641,000 2,995,000 520,100 752,000 4,248,960 144,163 3,678,000 1,237,600

3,018,941 2,767,687 3,007,683 2,774,908 3,038,279 2,813,478 2,751,896 3,137,893 23,310,765

2.58% 2.36% 2.57% 2.37% 2.60% 2.40% 2.35% 2.68% 19.91%

Clothing & Accessories China Lilang Ltd Li & Fung Ltd Pacific Textiles Holdings Ltd

HKD HKD HKD

2,505,000 8,824,000 3,290,000

3,595,243 3,239,218 2,797,073 9,631,534

3.06% 2.77% 2.39% 8.22%

Commercial Vehicles & Trucks Yangzijiang Shipbuilding Holdings Ltd

SGD

4,481,000

2,974,188 2,974,188

2.54% 2.54%

Computer Hardware Asustek Computer Inc

TWD

362,000

3,306,722 3,306,722

2.82% 2.82%

Electrical Components & Equipment AAC Technologies Holdings Inc Delta Electronics Thailand PCL Hon Hai Precision Industry Co Ltd

HKD THB TWD

233,500 1,741,300 1,106,500

3,288,753 3,074,737 3,019,525 9,383,015

2.81% 2.63% 2.58% 8.02%

Exploration & Production PTT PCL

THB

1,991,000

2,884,636 2,884,636

2.46% 2.46%

Health Care Providers Sonic Healthcare Ltd

AUD

177,964

3,225,420 3,225,420

2.76% 2.76%

Industrial & Office REITs Ascendas Real Estate Investment Trust

SGD

1,607,200

3,111,850 3,111,850

2.66% 2.66%

Industrial Machinery Catcher Technology Co Ltd

TWD

273,600

3,060,092 3,060,092

2.61% 2.61%

Life Insurance Aflac Inc

USD

69,800

3,002,796 3,002,796

2.56% 2.56%

Medical Supplies St Shine Optical Co Ltd

TWD

122,040

2,793,969 2,793,969

2.39% 2.39%

Mobile Telecommunications China Mobile Ltd

HKD

346,000

3,073,909 3,073,909

2.63% 2.63%

Recreational Products Largan Precision Co Ltd

TWD

30,000

4,418,059 4,418,059

3.77% 3.77%

Retail REITs Link REIT

HKD

380,500

3,474,986 3,474,986

2.97% 2.97%

Semiconductors Novatek Microelectronics Corp QUALCOMM Inc Taiwan Semiconductor Manufacturing Co Ltd

TWD USD TWD

751,300 58,690 435,000

3,388,286 3,293,683 3,088,952 9,770,921

2.89% 2.81% 2.64% 8.34%

Specialty Retailers JB Hi-Fi Ltd

AUD

182,866

3,042,691 3,042,691

2.60% 2.60%

Guinness Asian Equity Income Fund Financial assets at fair value through profit or loss Equities Apparel Retailers Luk Fook Holdings International Ltd

83

Guinness Asset Management Funds plc

Schedule of investments (continued) As at 30 June 2018 Currency

Nominal holdings

Fair value in USD

% of NAV

AUD

184,400

3,719,461 3,719,461

3.18% 3.18%

Tobacco KT&G Corp

KRW

34,070

3,270,965 3,270,965

2.79% 2.79%

Electrical Components & Equipment Elite Material Co Ltd

TWD

1,210,000

3,167,030 3,167,030

2.71% 2.71%

Retail REITs CapitaLand Mall Trust

SGD

2,164,500

3,286,040 3,286,040

2.81% 2.81%

Total equities

113,213,006

96.70%

Total financial assets at fair value through profit or loss

113,213,006

96.70%

3,858,853

3.30%

117,071,859

100.00%

Guinness Asian Equity Income Fund (continued) Financial assets at fair value through profit or loss (continued) Equities (continued) Travel & Tourism Corporate Travel Management Ltd

Cash and cash equivalents and other net assets Net assets attributable to holders of redeemable participating shares Analysis of total assets Transferable securities listed on an official stock exchange Other current assets

% of total assets 96.50% 3.50% 100.00%

84

Guinness Asset Management Funds plc

Schedule of investments (continued) As at 30 June 2018 Currency

Nominal holdings

SEK

Asset Managers Azimut Holding SpA

Fair value in USD

% of NAV

11,032

164,629 164,629

2.97% 2.97%

EUR

11,360

175,806 175,806

3.17% 3.17%

Brewers Heineken NV

EUR

1,876

188,412 188,412

3.40% 3.40%

Broadcasting & Entertainment Metropole Television SA Modern Times Group MTG AB

EUR SEK

8,341 4,538

166,821 190,123 356,944

3.01% 3.43% 6.44%

Business Training Employment Agency Adecco Group AG

CHF

2,944

174,218 174,218

3.14% 3.14%

Clothing & Accessories HUGO BOSS AG

EUR

1,954

177,401 177,401

3.20% 3.20%

Commercial Vehicles & Trucks Konecranes OYJ

EUR

4,506

185,923 185,923

3.35% 3.35%

Computer Services Tieto OYJ

EUR

5,060

164,001 164,001

2.96% 2.96%

Delivery Services Deutsche Post AG

EUR

4,693

153,256 153,256

2.76% 2.76%

Diversified Industrials Siemens AG

EUR

1,446

191,147 191,147

3.45% 3.45%

Electrical Components & Equipment Schneider Electric SE

EUR

2,036

169,775 169,775

3.06% 3.06%

Farming Salmar ASA

NOK

3,756

157,514 157,514

2.84% 2.84%

Food Products Danone SA Nestle SA

EUR CHF

2,446 2,377

179,546 184,089 363,635

3.24% 3.32% 6.56%

Food Retailers & Wholesalers Axfood AB

SEK

10,277

197,935 197,935

3.57% 3.57%

Full Line Insurance Helvetia Holding AG Mapfre SA

CHF EUR

310 52,720

176,862 159,115 335,977

3.19% 2.87% 6.06%

Industrial Machinery ABB Ltd ANDRITZ AG

CHF EUR

7,809 3,725

170,737 197,711 368,448

3.08% 3.54% 6.62%

Investment Services Deutsche Boerse AG

EUR

1,443

192,317 192,317

3.47% 3.47%

Media Agencies Publicis Groupe SA

EUR

2,540

174,791 174,791

3.15% 3.15%

Mobile Telecommunications Freenet AG

EUR

6,476

171,560 171,560

3.09% 3.09%

Oil Equipment & Services Tecnicas Reunidas SA

EUR

5,797

186,737 186,737

3.37% 3.37%

Personal Products Unilever NV

EUR

3,158

176,189 176,189

3.18% 3.18%

Guinness European Equity Income Fund Financial assets at fair value through profit or loss Equities Apparel Retailers Hennes & Mauritz AB

85

Guinness Asset Management Funds plc

Schedule of investments (continued) As at 30 June 2018 Guinness European Equity Income Fund (continued)

Fair value in USD

% of NAV

Equities (continued) Pharmaceuticals Novartis AG Novo Nordisk A/S Roche Holding AG Sanofi

CHF DKK CHF EUR

2,380 3,907 833 2,429

180,438 181,223 185,023 194,691 741,375

3.25% 3.27% 3.34% 3.51% 13.37%

Real Estate Holding & Development JM AB

SEK

8,681

155,261 155,261

2.80% 2.80%

Total equities

5,323,251

95.98%

Total financial assets at fair value through profit or loss

5,323,251

95.98%

222,847

4.02%

5,546,098

100.00%

Cash and cash equivalents and other net assets Net assets attributable to holders of redeemable participating shares

% of total assets 95.62% 4.38% 100.00%

Analysis of total assets Transferable securities listed on an official stock exchange Other current assets

86

Guinness Asset Management Funds plc

Schedule of investments (continued) As at 30 June 2018 Currency

Nominal holdings

USD

Broadcasting & Entertainment Comcast Corp

Fair value in USD

% of NAV

20,170

6,767,237 6,767,237

3.31% 3.31%

USD

182,200

5,977,982 5,977,982

2.92% 2.92%

Computer Services Cognizant Technology Solutions Corp

USD

86,660

6,845,273 6,845,273

3.35% 3.35%

Consumer Electronics Samsung Electronics Co Ltd

USD

6,370

6,656,650 6,656,650

3.25% 3.25%

Diversified Industrials Danaher Corp Eaton Corp PLC Siemens AG

USD USD EUR

68,360 87,500 49,570

6,745,765 6,539,750 6,552,662 19,838,177

3.30% 3.20% 3.20% 9.70%

Electrical Components & Equipment AAC Technologies Holdings Inc Schneider Electric SE

HKD EUR

456,000 81,450

6,422,576 6,791,827 13,214,403

3.14% 3.32% 6.46%

Electronic Equipment Roper Technologies Inc

USD

24,590

6,784,627 6,784,627

3.32% 3.32%

Financial Administration PayPal Holdings Inc

USD

80,850

6,732,380 6,732,380

3.29% 3.29%

Footwear ANTA Sports Products Ltd NIKE Inc

HKD USD

1,185,000 92,910

6,275,834 7,403,069 13,678,903

3.07% 3.62% 6.69%

Industrial Machinery Catcher Technology Co Ltd FANUC Corp

TWD JPY

595,000 32,240

6,654,804 6,404,922 13,059,726

3.25% 3.13% 6.38%

Internet Alphabet Inc Baidu Inc Facebook Inc

USD USD USD

5,750 26,340 37,660

6,492,842 6,400,620 7,318,091 20,211,553

3.17% 3.13% 3.58% 9.88%

Investment Services Intercontinental Exchange Inc

USD

89,500

6,582,725 6,582,725

3.22% 3.22%

Pharmaceuticals Shire PLC

GBP

112,190

6,317,276 6,317,276

3.09% 3.09%

Semiconductors Applied Materials Inc KLA-Tencor Corp Lam Research Corp Infineon Technologies AG NVIDIA Corp

USD USD USD EUR USD

140,930 59,730 39,110 236,840 27,330

6,509,557 6,124,117 6,760,164 6,036,490 6,474,476 31,904,804

3.18% 2.99% 3.30% 2.95% 3.15% 15.57%

Software Check Point Software Technologies Ltd SAP SE

USD EUR

66,930 57,500

6,537,722 6,642,925 13,180,647

3.20% 3.25% 6.45%

Specialized Consumer Services New Oriental Education & Technology Group Inc

USD

67,010

6,343,167 6,343,167

3.10% 3.10%

Telecommunications Equipment Cisco Systems Inc

USD

152,210

6,549,596 6,549,596

3.20% 3.20%

Tires Continental AG

EUR

27,030

6,171,341 6,171,341

3.02% 3.02%

Total equities

196,816,467

96.20%

Total financial assets at fair value through profit or loss

196,816,467

96.20%

Guinness Global Innovators Fund Financial assets at fair value through profit or loss Equities Aerospace Boeing Co/The

87

Guinness Asset Management Funds plc

Schedule of investments (continued) As at 30 June 2018 Guinness Global Innovators Fund (continued) Cash and cash equivalents and other net assets Net assets attributable to holders of redeemable participating shares Analysis of total assets Transferable securities listed on an official stock exchange Other current assets

Fair value in USD

% of NAV

7,773,282

3.80%

204,589,749

100.00% % of total assets 95.98% 4.02% 100.00%

88

Guinness Asset Management Funds plc

Schedule of investments (continued) As at 30 June 2018 Currency

Nominal holdings

Fair value in USD

% of NAV

HKD

31,000

128,221 128,221

3.14% 3.14%

Asset Managers Noah Holdings Ltd

USD

2,100

109,515 109,515

2.68% 2.68%

Automobiles Geely Automobile Holdings Ltd

HKD

49,000

127,099 127,099

3.11% 3.11%

Banks BOC Hong Kong Holdings Ltd China Construction Bank Corp China Merchants Bank Co Ltd

HKD HKD HKD

25,000 130,000 34,000

117,743 120,133 125,461 363,337

2.88% 2.94% 3.07% 8.89%

Building Materials & Fixtures Anhui Conch Cement Co Ltd

HKD

20,500

117,584 117,584

2.88% 2.88%

Clothing & Accessories China Lilang Ltd Li & Fung Ltd Pacific Textiles Holdings Ltd

HKD HKD HKD

83,000 324,000 145,000

119,124 118,938 123,275 361,337

2.91% 2.91% 3.02% 8.84%

Commercial Vehicles & Trucks Yangzijiang Shipbuilding Holdings Ltd

SGD

180,800

120,003 120,003

2.94% 2.94%

Durable Household Products Haier Electronics Group Co Ltd

HKD

37,000

126,628 126,628

3.10% 3.10%

Electrical Components & Equipment AAC Technologies Holdings Inc Elite Material Co Ltd Hollysys Automation Technologies Ltd

HKD TWD USD

9,500 45,000 5,310

133,804 117,782 117,563 369,149

3.27% 2.88% 2.88% 9.03%

Industrial Machinery Catcher Technology Co Ltd China Lesso Group Holdings Ltd Haitian International Holdings Ltd Tongda Group Holdings Ltd

TWD HKD HKD HKD

10,500 202,000 51,000 560,000

117,438 128,222 120,391 113,493 479,544

2.87% 3.14% 2.95% 2.78% 11.74%

Internet Baidu Inc Autohome Inc NetEase Inc Tencent Holdings Ltd

USD USD USD HKD

460 1,220 465 2,500

111,780 123,220 117,492 125,487 477,979

2.73% 3.01% 2.88% 3.07% 11.69%

Life Insurance Ping An Insurance Group Co of China Ltd

HKD

13,500

124,238 124,238

3.04% 3.04%

Medical Supplies St Shine Optical Co Ltd

TWD

5,609

128,412 128,412

3.14% 3.14%

Pharmaceuticals China Medical System Holdings Ltd Sino Biopharmaceutical Ltd

HKD HKD

54,000 84,000

107,925 128,910 236,835

2.64% 3.15% 5.79%

Real Estate Holding & Development China Overseas Land & Investment Ltd

HKD

38,000

125,206 125,206

3.06% 3.06%

Semiconductors Novatek Microelectronics Corp QUALCOMM Inc Taiwan Semiconductor Manufacturing Co Ltd

TWD USD TWD

26,000 2,060 17,000

117,257 115,607 120,718 353,582

2.87% 2.83% 2.95% 8.65%

Specialized Consumer Services New Oriental Education & Technology Group Inc

USD

1,290

122,111 122,111

2.99% 2.99%

Telecommunications Equipment VTech Holdings Ltd

HKD

10,600

122,342 122,342

2.99% 2.99%

3,993,122

97.70%

Guinness Best of China Fund Financial assets at fair value through profit or loss Equities Apparel Retailers Luk Fook Holdings International Ltd

Total equities

89

Guinness Asset Management Funds plc

Schedule of investments (continued) As at 30 June 2018 Guinness Best of China Fund (continued) Total financial assets at fair value through profit or loss Cash and cash equivalents and other net assets Net assets attributable to holders of redeemable participating shares

Fair value in USD

% of NAV

3,993,122

97.70%

93,938

2.30%

4,087,060

100.00% % of total assets 94.04% 5.96% 100.00%

Analysis of total assets Transferable securities listed on an official stock exchange Other current assets

90

Guinness Asset Management Funds plc

Schedule of investments (continued) As at 30 June 2018 Currency

Nominal holdings

Fair value in USD

% of NAV

ZAR

1,574

8,871 8,871

2.53% 2.53%

Auto Parts Bajaj Auto Ltd Hanon Systems

INR KRW

250 1,044

10,254 9,929 20,183

2.93% 2.84% 5.77%

Banks Banco Davivienda SA China Construction Bank Corp China Minsheng Banking Corp Ltd Credicorp Ltd Tisco Financial Group PCL

COP HKD HKD USD THB

867 10,000 13,200 50 3,900

10,922 9,241 9,439 11,256 9,888 50,746

3.12% 2.64% 2.70% 3.22% 2.83% 14.51%

Clothing & Accessories China Lilang Ltd Shenzhou International Group Holdings Ltd

HKD HKD

7,000 900

10,047 11,110 21,157

2.87% 3.17% 6.04%

Computer Services Infosys Ltd Tata Consultancy Services Ltd

USD INR

570 410

11,075 11,057 22,132

3.16% 3.16% 6.32%

Consumer Finance Indiabulls Housing Finance Ltd

INR

600

10,005 10,005

2.86% 2.86%

Electrical Components & Equipment AAC Technologies Holdings Inc Elite Material Co Ltd Hon Hai Precision Industry Co Ltd

HKD TWD TWD

600 3,600 3,500

8,451 9,423 9,551 27,425

2.41% 2.69% 2.73% 7.83%

Food Products Grape King Bio Ltd SPAR Group Ltd/The

TWD ZAR

1,000 691

7,544 9,348 16,892

2.16% 2.67% 4.83%

Full Line Insurance Porto Seguro SA

BRL

900

9,516 9,516

2.72% 2.72%

Industrial Machinery Catcher Technology Co Ltd Haitian International Holdings Ltd

TWD HKD

900 4,000

10,066 9,442 19,508

2.88% 2.70% 5.58%

Internet NetEase Inc

USD

40

10,107 10,107

2.89% 2.89%

Investment Services B3 SA - Brasil Bolsa Balcao JSE Ltd

BRL ZAR

1,900 720

10,099 8,516 18,615

2.89% 2.43% 5.32%

Life Insurance Ping An Insurance Group Co of China Ltd

HKD

1,000

9,203 9,203

2.63% 2.63%

Medical Supplies St Shine Optical Co Ltd

TWD

400

9,158 9,158

2.62% 2.62%

Personal Products Unilever PLC

GBP

193

10,682 10,682

3.05% 3.05%

Pharmaceuticals China Medical System Holdings Ltd

HKD

4,000

7,994 7,994

2.28% 2.28%

Semiconductors Broadcom Inc Novatek Microelectronics Corp QUALCOMM Inc Taiwan Semiconductor Manufacturing Co Ltd

USD TWD USD TWD

40 2,000 180 1,000

9,706 9,020 10,102 7,101 35,929

2.77% 2.58% 2.89% 2.03% 10.27%

Soft Drinks Coca-Cola Femsa SAB de CV

MXN

1,800

10,299 10,299

2.94% 2.94%

Guinness Emerging Markets Equity Income Fund Financial assets at fair value through profit or loss Equities Apparel Retailers Truworths International Ltd

91

Guinness Asset Management Funds plc

Schedule of investments (continued) As at 30 June 2018 Guinness Emerging Markets Equity Income Fund (continued)

Fair value in USD

% of NAV

Tobacco British American Tobacco PLC KT&G Corp

GBP KRW

210 113

10,619 10,849 21,468

3.03% 3.10% 6.13%

Toys JUMBO SA

EUR

635

10,468 10,468

2.99% 2.99%

Total equities

350,358

100.11%

Total financial assets at fair value through profit or loss

350,358

100.11%

(400)

(0.11%)

349,958

100.00%

Cash and cash equivalents and other net liabilities Net assets attributable to holders of redeemable participating shares Analysis of total assets Transferable securities listed on an official stock exchange Other current assets

% of total assets 99.72% 0.28% 100.00%

92

Guinness Asset Management Funds plc

Schedule of investments (continued) As at 30 June 2018 Currency

Nominal holdings

Fair value in USD

% of NAV

USD USD

35 178

5,203 5,470 10,673

2.19% 2.31% 4.50%

Auto Parts LKQ Corp

USD

160

5,104 5,104

2.15% 2.15%

Business Support Services Genpact Ltd Securitas AB

USD SEK

213 334

6,162 5,505 11,667

2.60% 2.32% 4.92%

Business Training Employment Agency Randstad Holding NV

EUR

95

5,592 5,592

2.36% 2.36%

Clothing & Accessories VF Corp

USD

94

7,663 7,663

3.23% 3.23%

Diversified Industrials Carlisle Cos Inc

USD

46

4,982 4,982

2.10% 2.10%

Drug Retailers Cardinal Health Inc

USD

70

3,418 3,418

1.44% 1.44%

Durable Household Products Stanley Black & Decker Inc

USD

44

5,844 5,844

2.47% 2.47%

Electrical Components & Equipment AAC Technologies Holdings Inc

HKD

500

7,042 7,042

2.97% 2.97%

Financial Administration Deluxe Corp Euronet Worldwide Inc

USD USD

70 69

4,635 5,780 10,415

1.96% 2.44% 4.40%

Food Products Aryzta AG Kerry Group PLC Hain Celestial Group Inc/The JM Smucker Co/The

CHF EUR USD USD

119 74 129 40

1,785 7,728 3,844 4,299 17,656

0.75% 3.26% 1.62% 1.81% 7.44%

Food Retailers & Wholesalers Axfood AB

SEK

337

6,491 6,491

2.74% 2.74%

Health Care Providers Envision Healthcare Corp MEDNAX Inc Sonic Healthcare Ltd

USD USD AUD

79 78 338

3,477 3,376 6,126 12,979

1.47% 1.42% 2.58% 5.47%

Industrial Machinery Ingersoll-Rand PLC

USD

66

5,922 5,922

2.50% 2.50%

Investment Services Deutsche Boerse AG

EUR

62

8,263 8,263

3.49% 3.49%

Media Agencies Publicis Groupe SA

EUR

75

5,161 5,161

2.18% 2.18%

Medical Equipment Sonova Holding AG Varian Medical Systems Inc William Demant Holding A/S

CHF USD DKK

43 57 299

7,702 6,482 12,032 26,216

3.25% 2.73% 5.08% 11.06%

Mobile Telecommunications Freenet AG

EUR

187

4,954 4,954

2.09% 2.09%

Property & Casualty Insurance Arthur J Gallagher & Co

USD

99

6,463 6,463

2.73% 2.73%

Restaurants & Bars Sodexo SA

EUR

46

4,598 4,598

1.94% 1.94%

Guinness Global Equity Fund Financial assets at fair value through profit or loss Equities Asset Managers Affiliated Managers Group Inc Janus Henderson Group PLC

93

Guinness Asset Management Funds plc

Schedule of investments (continued) As at 30 June 2018 Currency

Nominal holdings

Fair value in USD

% of NAV

USD USD USD SEK

85 60 56 145

5,626 5,861 5,871 8,096 25,454

2.37% 2.47% 2.48% 3.41% 10.73%

Specialty Chemicals FMC Corp FUCHS PETROLUB SE Innospec Inc

USD EUR USD

90 135 73

8,029 6,385 5,588 20,002

3.38% 2.69% 2.36% 8.43%

Specialty Retailers IHS Markit Ltd JB Hi-Fi Ltd

USD AUD

145 251

7,481 4,176 11,657

3.16% 1.76% 4.92%

Telecommunications Equipment F5 Networks Inc

USD

35

6,036 6,036

2.55% 2.55%

Total equities

234,252

98.81%

Total financial assets at fair value through profit or loss

234,252

98.81%

2,823

1.19%

237,075

100.00%

Guinness Global Equity Fund (continued) Financial assets at fair value through profit or loss (continued) Equities (continued) Software Amdocs Ltd Check Point Software Technologies Ltd Citrix Systems Inc Hexagon AB

Cash and cash equivalents and other net assets Net assets attributable to holders of redeemable participating shares Analysis of total assets Transferable securities listed on an official stock exchange Other current assets

% of total assets 98.73% 1.27% 100.00%

94

Guinness Asset Management Funds plc

Schedule of investments (continued) As at 30 June 2018 Currency

Nominal holdings

Fair value in USD

% of NAV

USD USD USD

40 184 75

5,947 4,887 8,707 19,541

2.40% 1.97% 3.51% 7.88%

Auto Parts LKQ Corp

USD

183

5,838 5,838

2.36% 2.36%

Biotechnology Biogen Inc

USD

20

5,805 5,805

2.34% 2.34%

Clothing & Accessories PVH Corp VF Corp

USD USD

63 107

9,432 8,723 18,155

3.81% 3.52% 7.33%

Computer Hardware Apple Inc

USD

50

9,256 9,256

3.74% 3.74%

Computer Services Cognizant Technology Solutions Corp

USD

104

8,215 8,215

3.32% 3.32%

Diversified Industrials Carlisle Cos Inc Eaton Corp PLC Honeywell International Inc

USD USD USD

52 85 50

5,632 6,353 7,203 19,188

2.27% 2.56% 2.91% 7.74%

Drug Retailers Cardinal Health Inc CVS Health Corp

USD USD

80 73

3,906 4,698 8,604

1.58% 1.90% 3.48%

Durable Household Products Stanley Black & Decker Inc

USD

50

6,641 6,641

2.68% 2.68%

Food Products Hain Celestial Group Inc/The JM Smucker Co/The Mondelez International Inc

USD USD USD

148 45 132

4,410 4,837 5,412 14,659

1.78% 1.95% 2.18% 5.91%

Footwear NIKE Inc

USD

113

9,004 9,004

3.63% 3.63%

Health Care Providers Anthem Inc Cigna Corp

USD USD

40 43

9,521 7,308 16,829

3.84% 2.95% 6.79%

Industrial Machinery Ingersoll-Rand PLC

USD

76

6,819 6,819

2.75% 2.72%

Internet Alphabet Inc

USD

7

7,904 7,904

3.19% 3.19%

Medical Equipment Medtronic PLC Thermo Fisher Scientific Inc

USD USD

81 41

6,934 8,493 15,427

2.80% 3.43% 6.23%

Pharmaceuticals Johnson & Johnson

USD

51

6,188 6,188

2.50% 2.50%

Property & Casualty Insurance Arthur J Gallagher & Co

USD

113

7,377 7,377

2.98% 2.98%

Real Estate Services Jones Lang LaSalle Inc

USD

57

9,461 9,461

3.82% 3.82%

Software Amdocs Ltd CA Inc Check Point Software Technologies Ltd Citrix Systems Inc

USD USD USD USD

97 178 68 64

6,420 6,346 6,642 6,710 26,118

2.59% 2.56% 2.68% 2.71% 10.54%

Guinness US Equity Fund Financial assets at fair value through profit or loss Equities Asset Managers Affiliated Managers Group Inc Invesco Ltd T Rowe Price Group Inc

95

Guinness Asset Management Funds plc

Schedule of investments (continued) As at 30 June 2018 Currency

Nominal holdings

Fair value in USD

% of NAV

USD

166

8,564 8,564

3.46% 3.46%

USD USD

191 40

8,219 6,897 15,116

3.34% 2.78% 6.12%

Total equities

244,709

98.76%

Total financial assets at fair value through profit or loss

244,709

98.76%

3,079

1.24%

247,788

100.00%

Guinness US Equity Fund (continued) Financial assets at fair value through profit or loss (continued) Equities (continued) Specialty Finance IHS Markit Ltd Telecommunications Equipment Cisco Systems Inc F5 Networks Inc

Cash and cash equivalents and other net assets Net assets attributable to holders of redeemable participating shares Analysis of total assets Transferable securities listed on an official stock exchange Other current assets

% of total assets 98.70% 1.30% 100.00%

96

Guinness Asset Management Funds plc

Schedule of investments (continued) As at 30 June 2018 Currency

Nominal holdings

Fair value in USD

% of NAV

USD

200

10,430 10,430

3.45% 3.45%

Auto Parts Hanon Systems

KRW

930

8,845 8,845

2.93% 2.93%

Automobiles Bajaj Auto Ltd Geely Automobile Holdings Ltd

INR HKD

220 3,000

9,024 7,782 16,806

2.98% 2.57% 5.55%

Banks BOC Hong Kong Holdings Ltd China Merchants Bank Co Ltd DBS Group Holdings Ltd Tisco Financial Group PCL

HKD HKD SGD THB

2,000 2,500 400 3,300

9,419 9,225 7,806 8,367 34,817

3.12% 3.05% 2.58% 2.77% 11.52%

Clothing & Accessories Li & Fung Ltd

HKD

18,000

6,608 6,608

2.19% 2.19%

Commercial Vehicles & Trucks Yangzijiang Shipbuilding Holdings Ltd

SGD

10,400

6,903 6,903

2.28% 2.28%

Computer Services Infosys Ltd Tata Consultancy Services Ltd

INR INR

560 440

10,684 11,866 22,550

3.53% 3.92% 7.45%

Consumer Finance Indiabulls Housing Finance Ltd

INR

480

8,004 8,004

2.65% 2.65%

Durable Household Products Haier Electronics Group Co Ltd

HKD

3,000

10,267 10,267

3.40% 3.40%

Electrical Components & Equipment AAC Technologies Holdings Inc Elite Material Co Ltd Venture Corp Ltd

HKD TWD SGD

500 3,000 500

7,042 7,852 6,542 21,436

2.33% 2.60% 2.16% 7.09%

Financial Administration Link Administration Holdings Ltd

AUD

1,771

9,591 9,591

3.17% 3.17%

Food Products Dali Foods Group Co Ltd

HKD

11,500

8,868 8,868

2.93% 2.93%

Health Care Providers Sonic Healthcare Ltd

AUD

500

9,062 9,062

3.00% 3.00%

Industrial Machinery Haitian International Holdings Ltd

HKD

3,000

7,082 7,082

2.34% 2.34%

Internet Autohome Inc Baidu Inc NetEase Inc

USD USD USD

110 40 36

11,110 9,720 9,096 29,926

3.67% 3.22% 3.01% 9.90%

Life Insurance Ping An Insurance Group Co of China Ltd

HKD

1,000

9,203 9,203

3.04% 3.04%

Medical Supplies St Shine Optical Co Ltd

TWD

400

9,158 9,158

3.03% 3.03%

Personal Products LG Household & Health Care Ltd

KRW

8

10,021 10,021

3.31% 3.31%

Pharmaceuticals China Medical System Holdings Ltd

HKD

4,000

7,994 7,994

2.64% 2.64%

Recreational Products Largan Precision Co Ltd

TWD

90

13,254 13,254

4.38% 4.38%

Guinness Best of Asia Fund Financial assets at fair value through profit or loss Equities Asset Managers Noah Holdings Ltd

97

Guinness Asset Management Funds plc

Schedule of investments (continued) As at 30 June 2018 Currency

Nominal holdings

Fair value in USD

% of NAV

USD USD TWD

170 40 1,000

7,852 9,706 7,101 24,659

2.60% 3.21% 2.35% 8.16%

AUD

550

11,095 11,095

3.69% 3.69%

Total equities

296,579

98.10%

Total financial assets at fair value through profit or loss

296,579

98.10%

5,752

1.90%

302,331

100.00%

Guinness Best of Asia Fund (continued) Financial assets at fair value through profit or loss (continued) Equities (continued) Semiconductors Applied Materials Inc Broadcom Inc Taiwan Semiconductor Manufacturing Co Ltd Travel & Tourism Corporate Travel Management Ltd

Cash and cash equivalents and other net assets Net assets attributable to holders of redeemable participating shares Analysis of total assets Transferable securities listed on an official stock exchange Other current assets

% of total assets 98.02% 1.98% 100.00%

98

Guinness Asset Management Funds plc

Statement of significant portfolio movements For the financial period ended 30 June 2018 The Central Bank Regulations requires all material changes that have occurred in the disposition of the assets of the UCITS to be documented in the report. A material change is defined as the aggregate purchases of a security exceeding 1 per cent of the total value of purchases for the financial period or aggregate disposals greater than 1 per cent of the total value of sales for the financial period. Guinness Global Energy Fund Purchases Anadarko Petroleum Corp Gazprom PJSC Enbridge Inc OMV AG Schlumberger Ltd TOTAL SA Halliburton Co PetroChina Co Ltd Royal Dutch Shell PLC Newfield Exploration Co Statoil ASA Canadian Natural Resources Ltd Apache Corp Eni SpA Chevron Corp BP PLC CNOOC Ltd Noble Energy Inc Devon Energy Corp Valero Energy Corp Helix Energy Solutions Group Inc

Cost USD 10,458,695 3,637,947 2,624,919 2,335,682 2,061,493 1,944,355 1,866,549 1,866,445 1,863,519 1,492,780 1,446,905 1,328,308 1,307,919 1,220,812 1,176,736 1,166,000 1,047,272 944,300 779,160 759,708 636,211

Sales Hess Corp Statoil ASA Noble Energy Inc Gazprom PJSC Valero Energy Corp Schlumberger Ltd TOTAL SA Tullow Oil PLC Halliburton Co ConocoPhillips Oasis Petroleum Inc CNOOC Ltd Royal Dutch Shell PLC Eni SpA Occidental Petroleum Corp Newfield Exploration Co PetroChina Co Ltd BP PLC Unit Corp Devon Energy Corp Apache Corp OMV AG QEP Resources Inc Helix Energy Solutions Group Inc Suncor Energy Inc Chevron Corp Canadian Natural Resources Ltd

Proceeds USD 13,614,947 3,066,102 2,753,132 2,435,028 2,282,923 2,112,244 1,980,178 1,893,452 1,810,865 1,786,543 1,721,966 1,701,627 1,618,896 1,535,467 1,331,156 1,326,322 1,292,872 1,266,304 1,184,861 1,180,057 1,098,363 1,096,445 1,062,803 999,032 897,532 854,678 684,211

99

Guinness Asset Management Funds plc

Statement of significant portfolio movements (continued) For the financial period ended 30 June 2018 The Central Bank Regulations requires all material changes that have occurred in the disposition of the assets of the UCITS to be documented in the report. A material change is defined as the aggregate purchases of a security exceeding 1 per cent of the total value of purchases for the financial period or aggregate disposals greater than 1 per cent of the total value of sales for the financial period. Guinness Alternative Energy Fund Cost USD 579,799 571,323 425,599 278,180 232,095 228,832 208,898 205,525 190,324 157,167 148,035 129,415 128,298 127,125 126,267 121,633 121,189 113,991 101,606 79,719 78,603 55,880 54,943

Purchases Acuity Brands Inc Vestas Wind Systems A/S Daqo New Energy Corp JinkoSolar Holding Co Ltd Cosan SA Industria e Comercio Prysmian SpA LG Chem Ltd Ormat Technologies Inc Johnson Controls International plc Canadian Solar Inc Schneider Electric SE Sensata Technologies Holding PLC Ricardo PLC Nibe Industrier AB Xinyi Solar Holdings Ltd First Solar Inc Concord New Energy Group Ltd China Singyes Solar Technologies Holdings Ltd Kingspan Group PLC SunPower Corp China Datang Corp Renewable Power Co Ltd Huaneng Renewables Corp Ltd Wasion Group Holdings Ltd

Proceeds USD 618,520 410,134 381,064 378,388 238,579 210,333 74,888 65,466 42,996 42,486 42,437 41,419 29,481 13,517*

Sales Tianneng Power International Ltd Senvion SA Boralex Inc JA Solar Holdings Co Ltd Mytrah Energy Ltd China Datang Corp Renewable Power Co Ltd Ricardo PLC Daqo New Energy Corp China Suntien Green Energy Corp Ltd TPI Composites Inc Cosan SA Industria e Comercio Xinyi Solar Holdings Ltd Huaneng Renewables Corp Ltd Iniziative Bresciane - Inbre - SpA

*Total value of disposal is less than 1 per cent of the total value of sales for the financial period; however the Central Bank Regulations require a minimum of 20 purchases and sales to be disclosed. Due to trading volumes the above details all sales during the financial period.

100

Guinness Asset Management Funds plc

Statement of significant portfolio movements (continued) For the financial period ended 30 June 2018 The Central Bank Regulations requires all material changes that have occurred in the disposition of the assets of the UCITS to be documented in the report. A material change is defined as the aggregate purchases of a security exceeding 1 per cent of the total value of purchases for the financial period or aggregate disposals greater than 1 per cent of the total value of sales for the financial period. Guinness Global Money Managers Fund Purchases Invesco Ltd Jupiter Fund Management PLC Rathbone Brothers PLC

Cost USD 64,169 63,310 61,285

Sales Coronation Fund Managers Ltd Rathbone Brothers PLC Azimut Holding SpA BlackRock Inc

Proceeds USD 101,804 86,342 59,928 54,433

The Central Bank Regulations require a minimum of 20 purchases and sales to be presented, however due to trading volumes, the above details all purchases and sales during the financial period.

101

Guinness Asset Management Funds plc

Statement of significant portfolio movements (continued) For the financial period ended 30 June 2018 The Central Bank Regulations requires all material changes that have occurred in the disposition of the assets of the UCITS to be documented in the report. A material change is defined as the aggregate purchases of a security exceeding 1 per cent of the total value of purchases for the financial period or aggregate disposals greater than 1 per cent of the total value of sales for the financial period. Guinness Global Equity Income Fund Purchases Taiwan Semiconductor Manufacturing Co Ltd British American Tobacco PLC Vodacom Group Ltd Japan Tobacco Inc WPP PLC Procter & Gamble Co/The Roche Holding AG Johnson & Johnson Imperial Brands PLC Hengan International Group Co Ltd Wal-Mart Stores Inc AbbVie Inc Merck & Co Inc Reckitt Benckiser Group PLC Danone SA Novo Nordisk A/S Sonic Healthcare Ltd Randstad Holding NV General Dynamics Corp Unilever PLC United Technologies Corp Royal Dutch Shell PLC BAE Systems PLC Illinois Tool Works Inc Eaton Corp PLC CA Inc

Cost USD 14,870,467 8,121,109 6,654,022 5,919,831 5,614,552 4,458,352 4,396,893 3,556,671 3,332,203 3,291,461 3,000,601 2,962,666 2,906,558 2,780,682 2,397,648 2,273,186 2,257,603 2,140,315 2,106,844 2,098,392 1,930,133 1,456,164 1,431,068 1,333,533 1,214,388 1,119,850

Sales General Dynamics Corp NEX Group PLC CME Group Inc Vodacom Group Ltd Microsoft Corp British American Tobacco PLC Royal Dutch Shell PLC AbbVie Inc ANTA Sports Products Ltd Hengan International Group Co Ltd Cisco Systems Inc

Proceeds USD 13,061,169 6,145,439 4,482,783 4,152,317 3,023,979 2,952,091 2,664,784 2,281,288 2,172,124 2,086,940 1,998,560

The Central Bank Regulations require a minimum of 20 purchases and sales to be presented, however due to trading volumes, the above details all sales during the financial period.

102

Guinness Asset Management Funds plc

Statement of significant portfolio movements (continued) For the financial period ended 30 June 2018 The Central Bank Regulations requires all material changes that have occurred in the disposition of the assets of the UCITS to be documented in the report. A material change is defined as the aggregate purchases of a security exceeding 1 per cent of the total value of purchases for the financial period or aggregate disposals greater than 1 per cent of the total value of sales for the financial period. Guinness Asian Equity Income Fund Purchases Corporate Travel Management Ltd Public Bank Bhd Yangzijiang Shipbuilding Holdings Ltd China Lilang Ltd AAC Technologies Holdings Inc Delta Electronics Thailand PCL Largan Precision Co Ltd Elite Material Co Ltd Li & Fung Ltd Luk Fook Holdings International Ltd Hanon Systems KT&G Corp QUALCOMM Inc Janus Henderson Group PLC Hon Hai Precision Industry Co Ltd LPN Development PCL China Mobile Ltd China Minsheng Banking Corp Ltd St Shine Optical Co Ltd Pacific Textiles Holdings Ltd Link REIT Asustek Computer Inc Tisco Financial Group PCL Taiwan Semiconductor Manufacturing Co Ltd CapitaLand Mall Trust Ascendas Real Estate Investment Trust JB Hi-Fi Ltd BOC Hong Kong Holdings Ltd Aflac Inc Sonic Healthcare Ltd Relo Group Inc

Cost USD 3,325,865 3,200,672 2,083,779 1,776,035 1,698,350 1,608,013 1,450,222 1,310,830 1,294,849 1,266,503 1,251,075 1,115,548 1,113,946 1,074,632 997,173 988,439 962,576 956,443 906,415 878,378 851,552 802,654 753,066 708,885 695,276 675,138 661,065 585,152 457,678 424,920 383,416

Sales LPN Development PCL China Lilang Ltd Relo Group Inc Luk Fook Holdings International Ltd

Proceeds USD 2,945,411 2,833,695 2,785,281 779,224

The Central Bank Regulations require a minimum of 20 purchases and sales to be presented, however due to trading volumes, the above details all sales during the financial period.

103

Guinness Asset Management Funds plc

Statement of significant portfolio movements (continued) For the financial period ended 30 June 2018 The Central Bank Regulations requires all material changes that have occurred in the disposition of the assets of the UCITS to be documented in the report. A material change is defined as the aggregate purchases of a security exceeding 1 per cent of the total value of purchases for the financial period or aggregate disposals greater than 1 per cent of the total value of sales for the financial period. Guinness European Equity Income Fund Cost USD 273,058 181,474 150,966 149,691 149,610 118,129 115,097 113,209 112,335 98,298 96,594 94,122 91,066 89,204 86,037 83,841 79,624 71,360 69,561 66,019 48,429 31,940 31,657

Purchases Hennes & Mauritz AB Sanofi Freenet AG Deutsche Post AG Salmar ASA JM AB Danone SA Novo Nordisk A/S ABB Ltd Adecco Group AG Siemens AG Heineken NV Roche Holding AG Novartis AG Mapfre SA Konecranes OYJ Nestle SA Schneider Electric SE Unilever NV Axfood AB Azimut Holding SpA Metropole Television SA ANDRITZ AG

Proceeds USD 1,106,925 649,315 630,084 604,553 599,196 590,615 588,296 586,559 582,119 581,756 573,273 567,906 566,113 554,130 551,438 550,375 541,317 532,622 530,195 529,973 528,751 526,995 521,586 521,281 512,307 508,192 506,106 497,454 492,851 490,517

Sales Salmar ASA Deutsche Boerse AG Heineken NV Schneider Electric SE HUGO BOSS AG Deutsche Post AG Azimut Holding SpA Mapfre SA Sanofi Danone SA Helvetia Holding AG Publicis Groupe SA Tieto OYJ Siemens AG Metropole Television SA Unilever NV ABB Ltd Modern Times Group MTG AB ANDRITZ AG Konecranes OYJ Novo Nordisk A/S Novartis AG JM AB Tecnicas Reunidas SA Axfood AB Adecco Group AG Hennes & Mauritz AB Freenet AG Roche Holding AG Nestle SA

104

Guinness Asset Management Funds plc

Statement of significant portfolio movements (continued) For the financial period ended 30 June 2018 The Central Bank Regulations requires all material changes that have occurred in the disposition of the assets of the UCITS to be documented in the report. A material change is defined as the aggregate purchases of a security exceeding 1 per cent of the total value of purchases for the financial period or aggregate disposals greater than 1 per cent of the total value of sales for the financial period. Guinness Global Innovators Fund Purchases Lam Research Corp KLA-Tencor Corp Baidu Inc AAC Technologies Holdings Inc FANUC Corp Samsung Electronics Co Ltd Applied Materials Inc Continental AG Check Point Software Technologies Ltd Schneider Electric SE Comcast Corp Siemens AG Eaton Corp PLC Catcher Technology Co Ltd SAP SE Facebook Inc Danaher Corp Roper Technologies Inc Infineon Technologies AG Intercontinental Exchange Inc Cognizant Technology Solutions Corp Shire PLC Alphabet Inc New Oriental Education & Technology Group Inc PayPal Holdings Inc Boeing Co/The Cisco Systems Inc ANTA Sports Products Ltd

Cost USD 7,912,785 6,765,335 6,454,479 2,638,123 2,339,223 2,200,878 2,164,916 2,012,181 1,792,453 1,719,108 1,663,249 1,641,028 1,571,322 1,354,496 1,346,566 1,338,698 1,306,523 1,275,287 1,204,680 1,128,797 1,061,054 968,888 942,678 930,691 879,967 796,252 726,117 613,977

Sales Intel Corp WisdomTree Investments Inc VeriFone Systems Inc ANTA Sports Products Ltd Shire PLC

Proceeds USD 5,161,313 3,560,144 3,168,821 1,028,063 438,237

The Central Bank Regulations require a minimum of 20 purchases and sales to be presented, however due to trading volumes, the above details all sales during the financial period.

105

Guinness Asset Management Funds plc

Statement of significant portfolio movements (continued) For the financial period ended 30 June 2018 The Central Bank Regulations requires all material changes that have occurred in the disposition of the assets of the UCITS to be documented in the report. A material change is defined as the aggregate purchases of a security exceeding 1 per cent of the total value of purchases for the financial period or aggregate disposals greater than 1 per cent of the total value of sales for the financial period. Guinness Best of China Fund Cost USD 118,977 118,642 109,255 105,155 104,098 104,018 101,690 92,186 91,727 89,325 86,699 86,606 85,533 85,239 84,822 82,436 79,528 79,231 78,866 78,453 73,955 71,575 70,659 70,076 69,486 68,786 66,720 62,366 62,221 58,578 55,414 50,913 50,612 49,620 44,777 43,156

Purchases Autohome Inc Yangzijiang Shipbuilding Holdings Ltd Baidu Inc Li & Fung Ltd AAC Technologies Holdings Inc St Shine Optical Co Ltd Noah Holdings Ltd Hollysys Automation Technologies Ltd Geely Automobile Holdings Ltd Haitian International Holdings Ltd Ping An Insurance Group Co of China Ltd Pacific Textiles Holdings Ltd NetEase Inc VTech Holdings Ltd Elite Material Co Ltd China Merchants Bank Co Ltd Tencent Holdings Ltd China Lesso Group Holdings Ltd Tongda Group Holdings Ltd Taiwan Semiconductor Manufacturing Co Ltd QUALCOMM Inc Luk Fook Holdings International Ltd China Construction Bank Corp BOC Hong Kong Holdings Ltd China Overseas Land & Investment Ltd New Oriental Education & Technology Group Inc China Medical System Holdings Ltd Catcher Technology Co Ltd Anhui Conch Cement Co Ltd Haier Electronics Group Co Ltd China Lilang Ltd PICC Property & Casualty Co Ltd Novatek Microelectronics Corp Lenovo Group Ltd Sino Biopharmaceutical Ltd Hon Hai Precision Industry Co Ltd

Cost USD 97,307 92,446 87,628 24,893 22,678 11,439 1,738*

Sales PICC Property & Casualty Co Ltd Lenovo Group Ltd Hon Hai Precision Industry Co Ltd China Lilang Ltd Hollysys Automation Technologies Ltd Anhui Conch Cement Co Ltd Tongda Hong Tai Holdings Ltd

*Total value of disposal is less than 1 per cent of the total value of sales for the financial period; however the Central Bank Regulations require a minimum of 20 purchases and sales to be disclosed. Due to trading volumes the above details all sales during the financial period.

106

Guinness Asset Management Funds plc

Statement of significant portfolio movements (continued) For the financial period ended 30 June 2018 The Central Bank Regulations requires all material changes that have occurred in the disposition of the assets of the UCITS to be documented in the report. A material change is defined as the aggregate purchases of a security exceeding 1 per cent of the total value of purchases for the financial period or aggregate disposals greater than 1 per cent of the total value of sales for the financial period. Guinness Emerging Markets Equity Income Fund Purchases China Minsheng Banking Corp Ltd China Lilang Ltd Coca-Cola Femsa SAB de CV Elite Material Co Ltd British American Tobacco PLC Hon Hai Precision Industry Co Ltd Grape King Bio Ltd KT&G Corp Taiwan Semiconductor Manufacturing Co Ltd Bajaj Auto Ltd Indiabulls Housing Finance Ltd Broadcom Inc AAC Technologies Holdings Inc QUALCOMM Inc China Construction Bank Corp Unilever PLC B3 SA - Brasil Bolsa Balcao Truworths International Ltd Hanon Systems Catcher Technology Co Ltd Infosys Ltd SPAR Group Ltd/The St Shine Optical Co Ltd Haitian International Holdings Ltd NetEase Inc Banco Davivienda SA JSE Ltd Ping An Insurance Group Co of China Ltd Porto Seguro SA JUMBO SA China Medical System Holdings Ltd Tata Consultancy Services Ltd Novatek Microelectronics Corp Credicorp Ltd Tisco Financial Group PCL

Cost USD 15,174 9,605 9,309 9,077 8,465 8,171 7,949 7,938 7,715 7,617 7,418 7,232 7,026 6,650 6,319 6,153 6,092 6,044 5,827 5,824 5,785 5,628 5,389 5,348 5,330 5,276 5,221 5,035 4,848 4,742 4,733 4,640 4,585 4,502 4,407

Sales China Lilang Ltd Hollysys Automation Technologies Ltd Grape King Bio Ltd Taiwan Semiconductor Manufacturing Co Ltd JSE Ltd AAC Technologies Holdings Inc Broadcom Inc Ping An Insurance Group Co of China Ltd Novatek Microelectronics Corp Banco Davivienda SA China Medical System Holdings Ltd Infosys Ltd Elite Material Co Ltd Truworths International Ltd QUALCOMM Inc China Construction Bank Corp Hon Hai Precision Industry Co Ltd Bajaj Auto Ltd Tata Consultancy Services Ltd China Minsheng Banking Corp Ltd Shenzhou International Group Holdings Ltd Hanon Systems KT&G Corp Catcher Technology Co Ltd Indiabulls Housing Finance Ltd Tisco Financial Group PCL British American Tobacco PLC Coca-Cola Femsa SAB de CV

Proceeds USD 14,669 8,297 7,855 7,688 7,432 6,592 5,268 5,017 4,914 4,804 4,673 4,496 4,406 4,297 4,187 4,181 3,920 3,864 3,861 3,844 3,690 3,641 3,633 3,575 3,557 3,510 3,442 3,433

107

Guinness Asset Management Funds plc

Statement of significant portfolio movements (continued) For the financial period ended 30 June 2018 Guinness Emerging Markets Equity Income Fund (continued) Proceeds USD 3,293 2,894 2,774 2,654 2,640 2,396 2,311 2,191 2,136

Sales (continued) Unilever PLC JUMBO SA St Shine Optical Co Ltd SPAR Group Ltd/The Haitian International Holdings Ltd NetEase Inc Credicorp Ltd Porto Seguro SA B3 SA - Brasil Bolsa Balcao

108

Guinness Asset Management Funds plc

Statement of significant portfolio movements (continued) For the financial period ended 30 June 2018 The Central Bank Regulations requires all material changes that have occurred in the disposition of the assets of the UCITS to be documented in the report. A material change is defined as the aggregate purchases of a security exceeding 1 per cent of the total value of purchases for the financial period or aggregate disposals greater than 1 per cent of the total value of sales for the financial period. Guinness Global Equity Fund Cost USD 83.00

Purchases Sonic Healthcare Ltd

Proceeds USD

Sales

-

-

The Central Bank Regulations require a minimum of 20 purchases and sales to be presented, however due to trading volumes, the above details all purchases during the financial period. There were no sales recorded during the financial period.

109

Guinness Asset Management Funds plc

Statement of significant portfolio movements (continued) For the financial period ended 30 June 2018 The Central Bank Regulations requires all material changes that have occurred in the disposition of the assets of the UCITS to be documented in the report. A material change is defined as the aggregate purchases of a security exceeding 1 per cent of the total value of purchases for the financial period or aggregate disposals greater than 1 per cent of the total value of sales for the financial period. Guinness US Equity Fund Cost USD -

Purchases -

Proceeds USD

Sales

The Central Bank Regulations require a minimum of 20 purchases and sales to be presented, however due to trading volumes; there were no purchases or sales during the financial period.

110

Guinness Asset Management Funds plc

Statement of significant portfolio movements (continued) For the financial period ended 30 June 2018 The Central Bank Regulations requires all material changes that have occurred in the disposition of the assets of the UCITS to be documented in the report. A material change is defined as the aggregate purchases of a security exceeding 1 per cent of the total value of purchases for the year or aggregate disposals greater than 1 per cent of the total value of sales for the year. Guinness Best of Asia Fund Cost USD 2,900 2,739 2,569 2,413 2,205 2,170 2,162 2,102 1,682 1,261 1,013

Purchases St Shine Optical Co Ltd NetEase Inc Broadcom Ltd Largan Precision Co Ltd Bajaj Auto Ltd Link Administration Holdings Ltd Hanon Systems Yangzijiang Shipbuilding Holdings Ltd Venture Corp Ltd Dali Foods Group Co Ltd Li & Fung Ltd

Proceeds USD 4,358 2,516 2,254

Sales Venture Corp Ltd Autohome Inc DBS Group Holdings Ltd

The Central Bank Regulations require a minimum of 20 purchases and sales to be presented, however due to trading volumes, the above details all of the purchases and sales during the financial period.

111

Guinness Asset Management Funds plc

Appendix 1 – Fund performance and Total Expense Ratio Launch date

Price 30 June 2018

Performance to period ended 30 June 2018

Performance cumulative since launch

Total expense ratio (TER) annualised

USD USD GBP EUR EUR USD GBP USD EUR

28.03.08 28.03.08 02.09.08 29.11.13 02.09.08 02.09.08 15.02.12 29.11.13 25.05.18

$8.9556 $8.6097 £12.0046 €9.3085 €11.5900 $9.5336 £11.2284 $7.9420 €10.3195

10.24% 9.97% 12.68% 13.10% 13.38% 10.38% 13.10% 10.38% 3.19%

-9.35% -13.83% 20.05% -6.92% 16.01% -4.50% 12.28% -17.37% 3.19%

1.49% 1.99% 1.99% 1.99% 1.49% 1.24% 1.24% 1.24% 1.24%

Guinness Alternative Energy Fund Class A USD Class B USD Class C GBP Class C EUR accumulation EUR Class D EUR Class E USD Class X GBP Class Z GBP accumulation GBP Class Z EUR accumulation EUR Class Z USD accumulation USD

19.12.07 19.12.07 02.09.08 29.11.13 02.09.08 02.09.08 15.02.12 16.02.18 16.02.18 16.02.18

$2.5309 $2.4009 £4.1983 €8.3370 €4.0531 $3.3453 £12.0484 £10.2059 €10.2306 $9.5968

-4.55% -4.79% -2.44% -2.08% -1.84% -4.43% -2.08% 2.06% 2.31% -4.03%

-74.69% -75.99% -58.02% -16.63% -59.47% -66.55% 20.48% 2.06% 2.31% -4.03%

1.49% 1.99% 1.99% 1.99% 1.49% 1.24% 1.24% 0.74% 0.74% 0.74%

Guinness Global Money Managers Fund Class A USD Class B USD Class C GBP Class C EUR accumulation EUR Class D EUR Class E USD Class X GBP

31.12.10 31.12.10 31.12.10 29.11.13 31.12.10 31.12.10 15.02.12

$18.3161 $17.4580 £20.7748 €13.1701 €20.8981 $18.5361 £23.8619

-5.44% -5.70% -3.38% -3.02% -2.78% -5.35% -3.02%

83.16% 74.58% 107.75% 31.70% 108.98% 85.36% 138.62%

1.49% 1.99% 1.99% 1.99% 1.49% 1.24% 1.24%

Guinness Global Equity Income Fund Class A USD Class B USD Class C GBP Class C EUR accumulation EUR Class C EUR distribution EUR Class C GBP accumulation GBP Class C USD accumulation USD Class D EUR Class D EUR accumulation EUR Class E USD Class X GBP distribution GBP Class Y EUR accumulation EUR Class Y EUR distribution EUR Class Y GBP accumulation GBP Class Y GBP distribution GBP Class Y USD accumulation USD Class Y USD distribution USD Class Z GBP distribution GBP Class X EUR distribution EUR Class O EUR accumulation EUR Class O GBP accumulation GBP Class O USD accumulation USD

31.12.10 31.12.10 31.12.10 29.11.13 20.01.17 11.03.15 11.03.15 31.12.10 20.01.17 31.12.10 15.02.12 11.03.15 11.03.15 11.03.15 11.03.15 11.03.15 11.03.15 30.12.11 05.03.18 15.05.18 15.05.18 15.05.18

$14.3266 $13.8203 £16.3684 €14.4252 €10.3254 £13.4987 $11.9258 €16.4810 €10.6811 $14.6095 £17.0297 €11.1818 €10.2734 £13.9524 £12.8328 $12.3277 $11.3316 £18.0730 €10.3862 €9.9357 £9.9966 $9.7802

-1.04% -1.28% 1.15% 1.53% 1.53% 1.15% -1.28% 1.78% 1.77% -0.91% 1.53% 2.04% 2.04% 1.65% 1.65% -0.79% -0.79% 1.78% 3.86% -0.64% -0.03% -2.20%

78.71% 72.53% 104.25% 44.25% 6.06% 34.99% 19.26% 8.27% 6.81% 82.17% 104.15% 11.82% 11.86% 39.52% 39.52% 23.28% 24.32% 117.27% 3.86% -0.64% -0.03% -2.20%

1.49% 1.99% 1.99% 1.99% 1.99% 1.99% 1.99% 1.49% 1.49% 1.24% 1.24% 0.99% 0.99% 0.99% 0.99% 0.99% 0.99% 0.74% 1.24% 1.24% 1.24% 1.24%

Guinness Asian Equity Income Fund Class C EUR accumulation EUR Class C GBP accumulation GBP Class C USD accumulation USD Class X EUR accumulation EUR Class X EUR distribution EUR Class X GBP accumulation GBP Class X GBP distribution GBP Class X USD accumulation USD Class X USD distribution USD Class Y EUR accumulation EUR Class Y EUR distribution EUR Class Y GBP accumulation GBP Class Y GBP distribution GBP Class Y USD accumulation USD Class Y USD distribution USD Class Z GBP distribution GBP

19.12.13 11.03.15 11.03.15 19.12.13 19.12.13 19.12.13 19.12.13 19.12.13 19.12.13 08.05.17 08.05.17 08.05.17 08.05.17 08.05.17 08.05.17 19.12.13

€16.6217 £14.4463 $12.7612 €17.2116 €14.6015 £18.2180 £15.4633 $14.6979 $12.4505 €10.3734 €10.0909 £10.8587 £10.5765 $11.0854 $10.7917 £15.8181

-4.52% -4.87% -7.16% -4.16% -4.16% -4.52% -4.51% -6.81% -6.79% -4.04% -2.43% -4.40% -4.40% -6.69% -6.75% -4.28%

66.22% 44.46% 27.61% 72.12% 72.07% 82.18% 82.17% 46.98% 47.09% 2.87% 4.58% 8.16% 8.24% 10.34% 10.28% 86.31%

1.99% 1.99% 1.99% 1.24% 1.24% 1.24% 1.24% 1.24% 1.24% 0.99% 0.99% 0.99% 0.99% 0.99% 0.99% 0.74%

Class Guinness Global Energy Fund Class A Class B Class C Class C EUR accumulation Class D Class E Class X Class X USD distribution Class X EUR accumulation

Currency

112

Guinness Asset Management Funds plc

Appendix 1 – Fund performance and Total Expense Ratio (continued) Price 30 June 2018

Performance to period ended 30 June 2018

Performance cumulative since launch

Total expense ratio (TER) annualised

19.12.13 11.03.15 11.03.15 19.12.13 19.12.13 19.12.13 19.12.13 19.12.13 19.12.13 15.01.18 15.01.18 15.01.18 15.01.18 15.01.18 15.01.18 19.12.13

€12.9560 £13.2421 $11.7195 €13.4204 €11.9423 £14.2405 £12.6838 $11.5071 $10.2447 €9.5517 €9.5517 £9.5021 £9.5019 $9.0957 $9.0957 £12.9671

-2.38% -2.76% -5.08% -2.01% -2.01% -2.38% -2.38% -4.74% -4.75% -4.48% -4.48% -4.98% -4.98% -9.04% -9.04% -2.13%

29.56% 32.42% 17.20% 34.20% 34.19% 42.41% 42.42% 15.07% 15.06% -4.48% -4.48% -4.98% -4.98% -9.04% -9.04% 45.58%

1.99% 1.99% 1.99% 1.24% 1.24% 1.24% 1.24% 1.24% 1.24% 0.99% 0.99% 0.99% 0.99% 0.99% 0.99% 0.74%

EUR GBP USD EUR GBP USD EUR GBP USD EUR GBP USD EUR GBP USD

31.10.14 31.10.14 31.10.14 31.10.14 31.10.14 31.10.14 31.10.14 31.10.14 31.10.14 31.10.14 31.10.14 31.10.14 15.05.18 15.05.18 15.05.18

€14.2996 £16.1475 $13.3257 €14.6909 £16.5974 $13.6973 €14.8158 £16.7495 $13.8596 €14.9625 £16.9033 $13.9491 €9.8756 £9.9364 $9.7218

2.74% 2.35% -0.11% 3.12% 2.74% 0.27% 3.25% 2.86% 0.39% 3.38% 2.99% 0.52% 100.00% 100.00% 100.00%

43.00% 61.47% 33.26% 46.91% 65.97% 36.97% 48.16% 67.49% 38.60% 49.63% 69.03% 39.49% -1.24% -0.64% -2.78%

1.99% 1.99% 1.99% 1.24% 1.24% 1.24% 0.99% 0.99% 0.99% 0.74% 0.74% 0.74% 1.24% 1.24% 1.24%

EUR GBP USD EUR GBP USD GBP

15.12.15 15.12.15 15.12.15 15.12.15 15.12.15 15.12.15 15.12.15

€13.5005 £16.4639 $14.4540 €13.7790 £16.7850 $14.7111 £16.9944

-2.90% -3.26% -5.59% -2.52% -2.90% -5.23% -2.66%

35.01% 64.64% 44.54% 37.79% 67.85% 47.11% 69.94%

1.99% 1.99% 1.99% 1.24% 1.24% 1.24% 0.74%

Guinness Emerging Markets Equity Income Fund Class C USD accumulation USD Class X GBP accumulation GBP Class X GBP distribution GBP Class X EUR accumulation EUR Class X EUR distribution EUR Class X USD accumulation USD Class X USD distribution USD Class Z GBP distribution GBP

23.12.16 23.12.16 23.12.16 23.12.16 23.12.16 23.12.16 23.12.16 23.12.16

$12.9122 £12.1138 £11.8067 €11.6901 €11.3907 $13.0531 $12.7268 £11.8933

-6.55% -3.84% -3.85% -3.47% -3.47% -6.14% -6.15% -3.64%

29.12% 21.14% 21.15% 16.90% 16.91% 30.53% 30.50% 22.04%

1.99% 0.99% 0.99% 0.99% 0.99% 0.99% 0.99% 0.74%

Guinness Global Equity Fund Class C GBP accumulation Class C EUR accumulation Class C USD accumulation Class X GBP accumulation Class X EUR accumulation Class X USD accumulation Class Z GBP accumulation Class Z EUR accumulation Class Z USD accumulation

21.12.16 21.12.16 21.12.16 21.12.16 21.12.16 21.12.16 21.12.16 21.12.16 21.12.16

€10.7559 £10.2805 $11.4761 €10.8819 £10.3723 $11.6132 €10.9623 £10.4477 $11.7006

-1.82% -1.36% -4.20% -1.45% -1.13% -3.84% -1.20% -0.86% -3.58%

7.56% 2.81% 14.76% 8.82% 3.72% 16.13% 9.62% 4.48% 17.01%

1.99% 1.99% 1.99% 1.24% 1.24% 1.24% 0.74% 0.74% 0.74%

Class Currency Guinness European Equity Income Fund Class C EUR accumulation EUR Class C GBP accumulation GBP Class C USD accumulation USD Class X EUR accumulation EUR Class X EUR distribution EUR Class X GBP accumulation GBP Class X GBP distribution GBP Class X USD accumulation USD Class X USD distribution USD Class Y EUR accumulation shares EUR Class Y EUR distribution shares EUR Class Y GBP accumulation shares GBP Class Y GBP distribution shares GBP Class Y USD accumulation shares USD Class Y USD distribution shares USD Class Z GBP distribution GBP Guinness Global Innovators Fund Class C EUR accumulation Class C GBP accumulation Class C USD accumulation Class X EUR accumulation Class X GBP accumulation Class X USD accumulation Class Y EUR accumulation Class Y GBP accumulation Class Y USD accumulation Class Z EUR accumulation Class Z GBP accumulation Class Z USD accumulation Class O EUR accumulation shares Class O GBP accumulation shares Class O USD accumulation shares Guinness Best of China Fund Class C EUR accumulation Class C GBP accumulation Class C USD accumulation Class X EUR accumulation Class X GBP accumulation Class X USD accumulation Class Z GBP accumulation

GBP EUR USD GBP EUR USD GBP EUR USD

Launch date

113

Guinness Asset Management Funds plc

Appendix 1 – Fund performance and Total Expense Ratio (continued)

Class Guinness US Equity Fund Class C GBP accumulation Class C EUR accumulation Class C USD accumulation Class X GBP accumulation Class X EUR accumulation Class X USD accumulation Class Z GBP accumulation Class Z EUR accumulation Class Z USD accumulation Guinness Best of Asia Fund Class C GBP accumulation Class Y GBP accumulation Class Y EUR accumulation Class Y USD accumulation Class Z GBP accumulation

Currency

Launch date

Price 30 June 2018

Performance to period ended 30 June 2018

Performance cumulative since launch

Total expense ratio (TER) annualised

GBP EUR USD GBP EUR USD GBP EUR USD

21.12.16 21.12.16 21.12.16 21.12.16 21.12.16 21.12.16 21.12.16 21.12.16 21.12.16

£11.1461 €10.6093 $11.8761 £11.2575 €10.7321 $12.0170 £11.3414 €10.8075 $12.1041

1.30% 1.58% -1.26% 1.60% 1.92% -0.89% 1.85% 2.19% -0.61%

11.46% 6.09% 18.76% 12.58% 7.32% 20.17% 13.41% 8.07% 21.04%

1.99% 1.99% 1.99% 1.24% 1.24% 1.24% 0.74% 0.74% 0.74%

GBP GBP EUR USD GBP

28.12.17 28.12.17 28.12.17 28.12.17 28.12.17

£9.6105 £9.6517 €9.6913 $9.4840 $9.6644

-3.40% -2.98% -2.66% -5.30% -2.86%

-3.90% -3.48% -3.09% -5.16% -3.36%

1.99% 0.99% 0.99% 0.99% 0.74%

114

Guinness Asset Management Funds plc

Appendix 2 – Portfolio Turnover Ratio (PTR) PTR for 6 months to 30 June 2018 -23% -16% -30% -10% -3% -20% -6% -34% -244% -61% 0% 4%

UCITS calculation Guinness Global Energy Fund Guinness Alternative Energy Fund Guinness Global Money Managers Fund Guinness Global Equity Income Fund Guinness Asian Equity Income Fund Guinness European Equity Income Fund Guinness Global Innovators Fund Guinness Best of China Fund Guinness Emerging Markets Equity Income Fund Guinness Global Equity Fund Guinness US Equity Fund Guinness Best of Asia Fund

PTR for 12 months to 31 December 2017 -71% 11% -52% -23% -27% -32% -36% -165% 53% -7% -2% 1%

PTR is calculated as follows: ((purchases + sales) – (subscriptions + redemptions)) / average fund size PTR for 6 months to 30 June 2018 16% 18% 2% 9% 8% 16% 7% 13% 48% 0% 0% 3%

SEC calculation Guinness Global Energy Fund Guinness Alternative Energy Fund Guinness Global Money Managers Fund Guinness Global Equity Income Fund Guinness Asian Equity Income Fund Guinness European Equity Income Fund Guinness Global Innovators Fund Guinness Best of China Fund Guinness Emerging Markets Equity Income Fund Guinness Global Equity Fund Guinness US Equity Fund Guinness Best of Asia Fund PTR is calculated as follows: (lower of purchases or sales) / average fund size

115

PTR for 12 months to 31 December 2017 24% 29% 9% 19% 4% 0% 17% 16% 24% 0% 0% 0%