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F_C Fund of Funds ICVC Annual Report and Audited Financial

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					F&C Fund of Funds ICVC
Annual Report and Audited Financial Statements
For the year ended:




31.01.2011
                                                                              F&C Fund of Funds ICVC

Contents
     Company Information*                                                                            2

     Statement of Authorised Corporate Director’s Responsibilities                                   5

     Certification of Financial Statements by Directors of the Authorised Corporate Director*        5

     Report of the Depositary                                                                        6

     Independent Auditors’ Report                                                                    7

Financial Statements of F&C Fund of Funds ICVC
     Aggregated Statement of Total Return                                                            9

     Aggregated Statement of Change in Net Assets Attributable to Shareholders                       9

     Aggregated Balance Sheet                                                                       10

     Aggregated Notes to the Financial Statements                                                   11

Reports and Financial Statements of each Sub-Fund
     Managed Growth Fund                                                                            19
     Multi Manager Balanced Fund                                                                    32
     Multi Manager Cautious Fund                                                                    47
     Multi Manager Distribution Fund                                                                63
     Multi Manager Growth Fund                                                                      79

 * The Authorised Corporate Director’s Report in accordance with the IMA SORP (2010) and the Collective
   Investment Schemes Sourcebook comprises those items denoted above along with the Fund Objective, Market
   Review, Activity, Outlook, Performance Summary, Portfolio Statement and Portfolio Movements of each sub-fund.




                                                                                                         Page 1
F&C Fund of Funds ICVC

Company Information                             Depositary
F&C Fund of Funds ICVC                          J.P.Morgan Trustee & Depositary
Exchange House                                  Company Limited
Primrose Street                                 Chaseside
London                                          Bournemouth
EC2A 2NY                                        Dorset
                                                BH7 7DA

Authorised Corporate Director                   Fund Accounting and Unit Pricing
F&C Fund Management Limited                     J.P.Morgan Europe Limited
Exchange House                                  3 Lochside View
Primrose Street                                 Edinburgh Park
London                                          Edinburgh
EC2A 2NY                                        EH12 9DH

Telephone:      0800 085 2752
Facsimile:     (0207) 600 4180
Regulated by the Financial Services Authority

Investment Advisor                              Administrator and Registrar

F&C Managers Limited                            International Financial Data Services (UK) Limited
Exchange House                                  IFDS House
Primrose Street                                 St Nicholas Lane
London                                          Basildon
EC2A 2NY                                        Essex
                                                SS15 5FS

Independent Auditor                             Legal Advisers
PricewaterhouseCoopers LLP                      Eversheds LLP
Erskine House                                   One Wood Street
68-73 Queen Street                              London
Edinburgh                                       EC2V 7WS
EH2 4NH




Page 2
                                                                                    F&C Fund of Funds ICVC

Company Information

F&C Fund Management Limited, the Authorised Corporate Director (ACD) of the Open-Ended Investment Company
(OEIC), is the sole director. The ACD has appointed F&C Managers Limited as the Investment Advisor to the
individual sub-funds of the OEIC.

F&C Fund of Funds ICVC is an investment company with variable capital under the Open-Ended Investment
Company Regulations 2001 (SI2001/1228). The Company is an umbrella company with 5 individual sub-funds and
each of the sub-funds is a UCITs scheme.

Financial Statements

These financial statements are for the year from 1 February 2010 to 31 January 2011.

Shareholders

Shares of the Company have no par value and the share capital of the Company will at all times equal the sum of the
net asset value of each of the sub-funds. Shareholders are not liable for the debts of the Company. The assets of
each sub-fund are treated as separate from those of every other sub-fund and are invested in accordance with the
investment objectives and policy of that sub-fund. However, a sub-fund is not a legal entity and consequently if the
assets attributable to any sub-fund were insufficient to meet the liabilities attributable to it, the shortfall might have to
be met out of the assets attributable to one or more other sub-funds of the Company.

Significant Events
On 24 November 2010 at separate Fund Extraordinary General Meetings Shareholders approved a scheme of
arrangement to merge sub-funds of the Company into sub-funds of Thames River Multi-Capital Funds ICVC as
follows:

    -   Multi Manager Balanced Fund to merge into Thames River Balanced Managed Fund
    -   Multi Manager Cautious Fund to merge into Thames River Cautious Managed Fund
    -   Multi Manager Distribution Fund to merge into Thames River Distribution Fund
    -   Multi Manager Growth Fund to merge into Thames River Equity Managed Fund

Dealing in the Funds was suspended on 9 December 2010 and the schemes of arrangement took effect on 10
December 2010 when all the shares in issue of the Funds were cancelled and their assets transferred to the Thames
River Multi-Capital Funds ICVC sub-funds as follows:

Closing Fund                                                                                                          £’000

Multi Manager Balanced Fund                                                                                          87,830

Multi Manager Cautious Fund                                                                                          80,100

Multi Manager Distribution Fund                                                                                     241,688

Multi Manager Growth Fund                                                                                           132,799


                                                                                                                    542,417


Shareholders received shares in the relevant Thames River Multi-Manager Funds ICVC sub-funds to the value of the
assets transferred.




                                                                                                                     Page 3
F&C Fund of Funds ICVC

Instrument of Incorporation and Prospectus

The Company was incorporated and authorised by the Financial Services Authority on 4 January 2002 under
registered number IC144. As at 31 January 2011 the OEIC comprised the following sub-funds:

Managed Growth Fund
Multi Manager Balanced Fund (closed 10 December 2010)
Multi Manager Cautious Fund (closed 10 December 2010)
Multi Manager Distribution Fund (closed 10 December 2010)
Multi Manager Growth Fund (closed 10 December 2010)

The ACD has received confirmation from Financial Services Authority that the termination of the closed Funds will not
affect the authorised status of the Company. The ACD intends to complete the termination of the closed Funds as
soon as practicable however the terminations were in progress at 31 January 2011.

Additional sub-funds may be added at the ACD’s discretion.

The investment objectives, investment policies and investment activity reports, for each sub fund are included in the
financial statements for that Fund.

Copies of the current prospectus, the latest annual report and any subsequent reports are available from the
Administrator.

Other Information

Managed Growth Fund offers both Accumulation and Income shares.




Page 4
                                                                               F&C Fund of Funds ICVC

Statement of Authorised Corporate Director’s responsibilities in relation to
the Regulations of the Company
The Open-Ended Investment Companies Regulations 2001 and the Collective Investment Schemes sourcebook, (“the
Regulations”) as issued and amended by the Financial Services Authority require the ACD to prepare financial
statements for each annual accounting period which give a true and fair view of the financial affairs of the Company
and of its net revenue/expense and the net gains/losses on the property of the Company for the period. In preparing
the financial statements the ACD is required to:

•   select suitable accounting policies and then apply them consistently;

•   comply with the requirements of the Statement of Recommended Practice for Financial Statements of Authorised
    Funds issued by the Investment Management Association in October 2010;

•   follow generally accepted accounting principles and applicable United Kingdom accounting standards;

•   keep proper accounting records, which enable it to demonstrate that the financial statements as prepared comply
    with the above requirements;

•   take reasonable steps for the prevention and detection of fraud and non-compliance with laws or regulations;

•   make judgements and estimates that are prudent and reasonable; and

•   prepare financial statements on a going concern basis unless it is inappropriate to presume that the Company will
    continue in operation.

The ACD is responsible for the management of the Company in accordance with its Prospectus and the Regulations.


Certification of Financial Statements by Directors of the Authorised Corporate
Director
This report contains the information required by the Statement of Recommended Practice (SORP), for Financial
Statements of Authorised Funds issued in October 2010, and COLL in the case of annual financial statements and
was approved for publication on 27 April 2011.




DIRECTOR

On behalf of F&C Fund Management Limited
Authorised Corporate Director
13 May 2011




                                                                                                              Page 5
F&C Fund of Funds ICVC

Report of the Depositary to the Shareholders of the
F&C Fund of Funds ICVC
The Depositary is responsible for the safekeeping of all of the property of the Company (other than tangible moveable
property) which is entrusted to it and for the collection of revenue that arises from that property.

It is the duty of the Depositary to take reasonable care to ensure that the Company is managed by the Authorised
Corporate Director in accordance with the Financial Services Authority’s Collective Investment Schemes sourcebook
(“the COLL sourcebook”), the Open-Ended Investment Companies Regulations 2001 (SI 2001/1228) (“the OEIC
Regulations”) and the Company’s Instrument of Incorporation and Prospectus, as appropriate, in relation to the pricing
of, and dealings in, shares in the Company; the application of revenue of the Company; and the investment and
borrowing powers of the Company.

Having carried out such procedures as we consider necessary to discharge our responsibilities as Depositary of the
Company, it is our opinion, based on the information available to us and the explanations provided, that in all material
respects the Authorised Corporate Director:

 (i).    has carried out the issue, sale, redemption and cancellation, and calculation of the price of the Company’s
         shares and the application of the Company’s revenue in accordance with the COLL sourcebook and, where
         applicable, the OEIC Regulations and the Company’s Instrument of Incorporation and Prospectus; and

(ii).    has observed the investment and borrowing powers and restrictions applicable to the Company.



J.P. Morgan Trustee and Depositary Company Limited
Bournemouth
24 February 2011




Page 6
                                                                                     F&C Fund of Funds ICVC

Independent Auditors’ report to the shareholders of
F&C Fund of Funds ICVC (“The Company”)
We have audited the financial statements of F&C Fund of Funds ICVC (“the Company”) for the year ended 31
January 2011 comprise the aggregated statement of total return, the aggregated statement of change in net assets
attributable to shareholders, the aggregated balance sheet and related notes and for each of the Company’s sub-
funds, the statement of total return, the statement of change in net assets attributable to shareholders, the balance
sheet, the related notes and the distribution tables. The financial reporting framework that has been applied in their
preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted
Accounting Practice) and the Statement of Recommended Practice ‘Financial Statements of Authorised Funds’ issued
by the Investment Management Association in October 2010 (the “Statement of Recommended Practice for
Authorised Funds”).

Respective responsibilities of director and auditors

As explained more fully in the Statement of Authorised Corporate Director’s Responsibilities the Authorised Corporate
Director is responsible for the preparation of the financial statements and for being satisfied that they give a true and
fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with
applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with
the Auditing Practices Board’s Ethical Standards for Auditors.

This report, including the opinions, has been prepared for and only for the Company’s shareholders as a body in
accordance with paragraph 4.5.12 of the Collective Investment Schemes sourcebook as required by paragraph 67(2)
of the Open-Ended Investment Companies Regulations 2001 and for no other purpose. We do not, in giving these
opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or
into whose hands it may come save where expressly agreed by our prior consent in writing.


Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give
reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or
error. This includes an assessment of: whether the accounting policies are appropriate to the Company’s
circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant
accounting estimates made by the Authorised Corporate Director; and the overall presentation of the financial
statements.

Opinion on financial statements
In our opinion the financial statements:

    •       give a true and fair view of the financial position of the Company and each of the sub-funds at 31 January
            2011 and of the net revenue and the net gains of the Company and each of the sub-funds for the year then
            ended; and

    •       have been properly prepared in accordance with the Statement of Recommended Practice for Authorised
            Funds, the Collective Investment Schemes sourcebook and the Instrument of Incorporation.


Opinion on other matters prescribed by the Collective Investment Schemes sourcebook


In our opinion:

        •     we have obtained all the information and explanations we consider necessary for the purposes of the audit;
              and

        •     the information given in the Authorised Corporate Director’s Report for the financial year for which the
              financial statements are prepared is consistent with the financial statements.


                                                                                                                    Page 7
F&C Fund of Funds ICVC
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Collective Investment Schemes sourcebook
requires us to report to you if, in our opinion:

      •   proper accounting records for the Company have not been kept; or

      •   the financial statements are not in agreement with the accounting records.



PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
Edinburgh
13 May 2011




The financial statements are published on the www.fandc.com website, which is a website maintained by F&C Fund
Management Limited (“F&C”). The maintenance and integrity of the website maintained by F&C or any of its
subsidiaries is, so far as it relates to the Company, the responsibility of F&C. The work carried out by the auditors
does not involve consideration of the maintenance and integrity of this website and accordingly, the auditors accept
no responsibility for any changes that have occurred to the financial statements since they were initially presented on
the website. Visitors to the website need to be aware that legislation in the United Kingdom governing the preparation
and dissemination of the financial statements may differ from legislation in their jurisdiction.




Page 8
                                                                                  F&C Fund of Funds ICVC

Aggregated Statement of Total Return
for the year ended 31 January 2011
                                                                               31/01/2011                    31/01/2010
                                                      Notes                         £’000                         £’000
Income
  Net capital gains                                      2                          64,551                      109,370
  Revenue                                                3           17,876                        24,223

Expenses                                                 4           (5,616)                      (5,945)

Finance costs: Interest                                  6              (19)                          (39)

Net revenue before taxation                                          12,241                        18,239

Taxation                                                 5           (1,429)                      (2,756)

Net revenue after taxation                                                          10,812                       15,483

Total return before distributions                                                   75,363                      124,853

Finance costs: Distributions                             6                        (13,337)                      (18,420)

Change in net assets attributable to
shareholders from investment activities                                             62,026                      106,433


Aggregated Statement of Change in Net Assets Attributable to Shareholders
for the year ended 31 January 2011
                                                                               31/01/2011                    31/01/2010
                                                                                    £’000                         £’000

Opening net assets attributable to shareholders                                    652,082                      628,516
Capital Property removed from the Company following termination2                         -                      (30,754)
Amounts transferred from F&C Managed Balanced Fund2                                      -                        30,930
Amounts transferred to Thames River Multi-Capital Funds ICVC1                    (542,417)                             -

Amounts receivable on issue of shares                                19,069                        12,684
Amounts payable on cancellation of shares                         (113,487)                     (107,144)
                                                                                  (94,418)                      (94,460)

Stamp duty reserve tax                                                                 (91)                        (108)

Change in net assets attributable to shareholders
from investment activities (see above)                                              62,026                      106,433

Retained distributions on accumulation shares                                        7,759                       11,523

Unclaimed distributions                                                                   -                            2

Amounts to be transferred to Thames River Multi-Capital Funds ICVC*                    (18)                             -

Closing net assets attributable to shareholders                                     84,923                      652,082


1. Transfer to Thames River Multi-Capital Funds ICVC comprises assets transferred on 10 December 2010 in accordance
with the scheme of arrangements approved by Shareholders on 24 November 2010 (further details on page 3).
2. The 2009 items reflect the adjustment to remove the Managed Balanced Fund from the financial statement as at 1
February 2009 following termination of the Fund and the receipt of its assets by Managed Growth Fund in accordance with a
scheme of arrangement on 26 June 2009.
Notes to the financial statements are on pages 11 to 18.

                                                                                                                 Page 9
F&C Fund of Funds ICVC

Aggregated Balance Sheet
as at 31 January 2011
                                                                     31/01/2011              31/01/2010
                                                     Notes                £’000                   £’000

ASSETS

Investment assets                                                       84,090                 641,249

Debtors                                                8     1,659                 16,732
Cash and bank balances                                       1,038                  9,461

Total other assets                                                       2,697                  26,193


Total assets                                                            86,787                 667,442



LIABILITIES

Creditors                                              9     (559)                (11,533)
Bank overdrafts                                              (631)                 (2,260)
Distribution payable on income shares                        (674)                 (1,567)

Total liabilities                                                       (1,864)                (15,360)


Net assets attributable to shareholders                                 84,923                 652,082



Notes to the financial statements are on pages 11 to 18.




Page 10
                                                                                   F&C Fund of Funds ICVC

Aggregated Notes to the Financial Statements
1. ACCOUNTING POLICIES

a) Basis of accounting
   The financial statements have been prepared under the historical cost basis, as modified by the revaluation of
   investments, and in accordance with the Statement of Recommended Practice (SORP) for Authorised Funds
   issued by the Investment Management Association (IMA) in October 2010, which supersedes the SORP issued
   by the IMA in November 2008. As a result of this change there is no longer a requirement to disclose the Portfolio
   turnover ratio and this has been removed accordingly.

b) Aggregation
   The aggregate financial statements represent the sum of the individual sub-funds within the Company. Further
   analysis of the distribution and net asset position can be found within the financial statements of the individual
   sub-funds.

c) Revenue recognition
   Dividends on equities are recognised when the security is quoted ex-dividend. Revenue from unquoted equity
   investments is recognised when the dividend is declared. Dividends received include any withholding taxes but
   exclude attributable tax credits.
   Distributions from collective investment schemes are recognised when the security is quoted ex-dividend.
   Equalisation on distributions received is deducted from the cost of the investment. Distributions on investments in
   accumulation shares are recognised gross in the revenue statement, with a transfer being made from the capital
   property to the revenue property of the Fund.
   Interest earned on interest-bearing securities is determined on an effective yield basis. Effective yield is a
   revenue calculation that reflects the amount of amortisation of any discount or premium on the purchase price
   over the remaining life of the security.
   The funds receive ACD fee rebates on their holdings of both internal and external collective investment schemes.
   This ACD fee rebate is accrued within the sub-funds on a daily basis in line with the agreements held, and is
   recognised within the sub-funds as either revenue or capital, in line with where the ACD fee was paid from within
   the underlying fund.
   Other revenue, including interest on bank balances, is accounted for on an accruals basis.

d) Interest on debt securities bought or sold
   Interest on debt securities bought or sold is excluded from the capital cost of securities, and is dealt with as part
   of the revenue of the fund.

e) Basis of valuation of investments
   The investments other than F&C Managed Funds have been valued at Market Value at 12pm on 31 January
   2011. Market value is defined by the SORP as fair value which generally is bid value of each security, excluding
   any accrued interest in the case of fixed and floating rate securities.
   Investments in single price authorised and recognised funds managed by the F&C group companies have been
   valued at single price as at 12pm on 31 January 2011.

f) Deferred taxation
   Deferred tax is provided on all timing differences that have originated but not reversed by the balance sheet date
   other than those differences regarded as permanent. Any liability to deferred tax is provided at the average rate
   of tax expected to apply. Deferred tax assets and liabilities are not discounted to reflect the time value of money.
   Deferred tax assets are recognised only to the extent that it is more likely than not that there will be taxable profits
   from which underlying timing differences can be deducted.

g) Current taxation
   The charge for taxation is based at the current rate on taxable revenue for the period less allowable expenses.
   UK dividend income is disclosed net of any related tax credit. Overseas dividends are disclosed gross of any
   foreign tax suffered, with the tax element being separately disclosed in the taxation note.




                                                                                                                 Page 11
F&C Fund of Funds ICVC
h) Distribution policy
   The income on distribution shares is distributed to shareholders annually on the last business day of 31 March
   however as Multi-Manager Balanced, Multi-Manager Cautious, Multi-Manager Distribution and Multi-Manager
   Growth merged with Thames River Multi-Capital Funds ICVC these funds all distributed to the shareholders on 9
   February 2011 instead. The Multi Manager Balanced Fund also distributed on 30 September. The Multi Manager
   Cautious Fund and Multi Manager Distribution Fund also distributed on 30 June, 30 September and 31
   December. The revenue on accumulation shares is retained and reinvested and is reflected in the value of the
   shares. It is the policy of the Funds to pay dividend distributions.

i) Authorised Corporate Director’s charge
   The ACD’s periodic charge is charged to the income property of the individual sub-funds. For the purposes of
   determining the distribution of Multi Manager Balanced, Multi Manager Cautious Fund and Multi Manager
   Distribution Fund, the ACD’s periodic charge is borne by the capital property of that sub-fund.

j) Other expenses
   Other expenses are recognised on an accruals basis and are charged to the revenue property of the individual
   sub-funds with the exception of the expenses, such as handling charges, which relate to the purchases and sales
   of investments. These are charged to capital.

k) Exchange rates
   Transactions in overseas currencies are translated to Sterling at the rates of exchange ruling on the day of any
   such transaction. Foreign currency balances are converted to Sterling at the exchange rates applicable at the end
   of the accounting period.

l) Stamp duty reserve tax (SDRT)
   SDRT arising from the redemption of shares in the individual sub-funds is borne by the capital property of the
   sub-funds and is reflected in the Statement of Change in Net Assets Attributable to Shareholders on an accruals
   basis.

m) Allocation of revenue and expenses to multiple share classes
   The allocation of revenue and expenses to each share class is based upon the proportion of the individual sub-
   fund’s assets attributable to each share class on the day the revenue is earned or the expense is suffered. The
   Authorised Corporate Director’s periodic charge, Registrar’s fee, Accounting & Administration fees and the
   Report & Accounts printing costs are specific expenses to each share class.

n) Derivative contracts
   Derivative contracts are shown in the portfolio statement at market value and the net gains/losses are reflected in
   Net capital gains/(losses). The margins paid on these contracts are included in the amounts held at derivative
   clearing houses and brokers.

o) Dilution adjustment
   Pricing by the company is on a swinging single priced basis. Using this methodology the sub-funds may apply a
   dilution adjustment, intended to cover certain dealing charges which could have a diluting effect on the
   performance of the sub-funds. This adjustment, where applied is included within the dealing price available to
   shareholders and is not disclosed separately in the financial statements.




Page 12
                                                                          F&C Fund of Funds ICVC
2. NET CAPITAL GAINS                                                        31/01/2011             31/01/2010
                                                                                 £’000                  £’000
  The net capital gains during the year comprise:

  Non-derivative securities                                                     64,022                110,764
  Derivative contracts                                                             (23)                (2,412)
  Currency (losses)/gains                                                          (10)                    186
  Rebate of capital management fees from underlying investments                    596                     864
  Transaction charges                                                              (34)                   (32)
  Net capital gains                                                             64,551                109,370

3. REVENUE

  Interest distributions                                                         5,736                  9,839
  Franked component of dividend distributions                                    5,713                  4,387
  Offshore investment companies                                                  3,351                  2,644
  Rebate of revenue management fees from underlying investments                  1,235                  1,219
  Interest on debt securities                                                    1,004                    941
  Overseas dividends                                                               374                    923
  Unfranked component of dividend distributions                                    365                  4,175
  Bank interest                                                                     98                     95
                                                                                17,876                 24,223

4. EXPENSES

  Payable to the Authorised Corporate Director, associates of the
  Authorised Corporate Director, and agents of either of them:
  Authorised Corporate Director's periodic charge                                4,950                  5,245

  Payable to the Depositary, associates of the Depositary
  and agents of either of them:
  Depositary's fee                                                                  76                     81
  Safe custody fees                                                                 11                     13
                                                                                    87                     94

  Other expenses:
  Registrar's fees                                                                 368                    370
  Accounting & administration fees                                                  95                    115
  Administration costs                                                              46                     50
  Audit fee                                                                         35                     39
  Price publication costs                                                           19                       9
  European Savings Directive fees                                                   10                     10
  Report & accounts printing costs                                                   6                     14
  VAT recovered*                                                                     -                     (1)
                                                                                   579                    606
  Total expenses (including VAT where appropriate)                               5,616                  5,945

 * This receipt relates to VAT recovered as a result of the European Court of Justice decision C-169/04 in May
   2006.




                                                                                                     Page 13
F&C Fund of Funds ICVC
5. TAXATION                                                                     31/01/2011              31/01/2010
                                                                                     £’000                   £’000
a) Analysis of charge in the year
   Corporation tax                                                                    1,404                   2,506
   Overseas tax suffered                                                                  45                      91
   Irrecoverable income tax                                                                4                    198
   Double taxation relief                                                                  -                     (4)
   Total current tax (note 5b)                                                        1,453                   2,791
   Deferred tax (note 5c)                                                               (24)                    (35)
   Total taxation                                                                     1,429                   2,756

b) Factors affecting current tax charge for year

   The tax assessed for the year is lower than the standard rate of corporation tax in the UK for an Open Ended
   Investment Company (OEIC) of 20%. The differences are explained below:

   Net revenue before taxation                                                       12,241                  18,239

   Corporation tax at 20% (2010: 20%)                                                 2,448                   3,648

   Effects of:
   Franked component of dividend distributions not subject to corporation tax       (1,143)                   (877)
   Overseas and offshore dividends not subject to corporation tax                     (268)                   (241)
   Irrecoverable income tax                                                               4                     198
   Irrecoverable overseas tax                                                            45                      87
   Movement in excess management expenses                                               189                   (187)
   Revenue taxable in different periods                                                  26                      22
   Capital taxable revenue not included in total revenue                                152                     141
   Current tax charge (note 5a)                                                       1,453                   2,791

   Open Ended Investment Companies are exempt from tax on capital gains. Therefore, any capital return is not
   included in the above reconciliation.

c) Factors that may affect future tax charges
   The makeup of the deferred tax liability and the disclosure of any potential unrecognised deferred tax assets are
   included within the individual sub-fund financial statements.


6. FINANCE COSTS

   Distributions and interest
   The distributions take account of revenue received on the issue of shares and revenue deducted on the
   cancellation of shares and comprise:

   Interim dividend distributions                                                    12,667                  11,405
   Final dividend distributions                                                         284                   6,470
                                                                                     12,951                  17,875
   Revenue deducted on cancellation of shares                                           456                     611
   Revenue received on issue of shares                                                  (70)                    (66)
   Net distribution for the period                                                   13,337                  18,420

   Details of the distribution per share are set out in the financial
   statements for each individual sub-fund.

   Interest                                                                              19                      39

   Total finance costs                                                               13,356                  18,459


Page 14
                                                                            F&C Fund of Funds ICVC
7. MOVEMENT BETWEEN NET REVENUE AND DISTRIBUTIONS                             31/01/2011             31/01/2010
                                                                                   £’000                  £’000

  Net revenue after taxation                                                      10,812                  15,483
  ACD fees paid from capital                                                       2,955                   3,456
  Undistributed revenue carried forward                                               40                      (1)
  Undistributed revenue brought forward                                                1                        -
  Tax on capital dividends not included as revenue                                    10                      23
  Tax relief thereon                                                               (481)                   (541)
                                                                                  13,337                  18,420

8. DEBTORS

  Amounts receivable for issue of shares                                             554                     306
  Accrued revenue                                                                    461                   1,924
  Income tax recoverable                                                             379                     524
  Accrued management fee rebates                                                     253                     890
  Amounts transferrable from Thames River                                             11                       -
  Prepaid expenses                                                                     1                       5
  Sales awaiting settlement                                                            -                  13,083
                                                                                   1,659                  16,732

9. CREDITORS

  Corporation tax payable                                                            182                      37
  Amounts payable for cancellation of shares                                         161                   1,071
  Accrued Authorised Corporate Director’s periodic charge                            110                     465
  Accrued expenses                                                                    77                     110
  Amounts due to Thames River                                                         29                       -
  Purchases awaiting settlement                                                        -                   9,826
  Deferred tax provision                                                               -                      24
                                                                                     559                  11,533

10. PORTFOLIO TRANSACTION COSTS

  The numerical disclosures for Portfolio transaction costs are shown within each individual sub-fund and can be
  found on the pages indicated below:
                                                                                                        Page
    Managed Growth Fund                                                                                  27
    Multi Manager Balanced Fund                                                                          41
    Multi Manager Cautious Fund                                                                          55
    Multi Manager Distribution Fund                                                                      72
    Multi Manager Growth Fund                                                                            86


11. RELATED PARTY DISCLOSURES

  F&C Fund Management Limited, as Authorised Corporate Director (ACD), is a related party, and acts as principal
  in respect of all transactions of shares in the Company. The aggregate monies received through issue, and paid
  on cancellation are disclosed in the Statement of Change in Net Assets Attributable to Shareholders. Any
  amounts due to, or from, F&C Fund Management Limited at the end of the accounting period are disclosed in
  notes 9 and 8.

  Amounts payable to F&C Fund Management Limited in respect of fund management are disclosed in note 4 and
  amounts due at the end of the period in note 9.

  The ACD is also the ACD or Manager for other authorized funds and those funds may invest in each other where
  this is within the investment objectives of the investing fund. Such transactions will be conducted on an arm’s

                                                                                                        Page 15
F&C Fund of Funds ICVC

   length basis within the regulations and the terms of the prospectus.

   Investments considered to be related parties have been identified in the portfolio statements of the individual sub-
   funds financial statements. Revenue from these investments has been disclosed within the notes to the individual
   sub-funds financial statements.

   All material interests held at the Balance Sheet date have been disclosed within the individual sub-funds financial
   statements.

12. EQUALISATION

   The quoted price of shares includes the value of securities and the revenue accrued up to that time, in respect of
   those securities.

   When buyers purchase shares, the price they pay includes a sum not only to equate with the value of the
   securities comprised within that share, but also an amount to equate with the revenue included.

   All shareholders in the same share class receive the same pence per share distribution, but those with Group 2
   shares have their distribution partially made up of a return of the sum equating to the revenue content in the
   purchase price of their shares. This sum represents the average amount of revenue included in all Group 2
   shares. It is deemed to be a return of capital, and as such is not liable to income tax. It must, however, be
   deducted from the cost of shares for capital gains tax purposes.

13. FINANCIAL INSTRUMENT RISKS

   In pursuing the investment objectives of the individual sub-funds the Company may hold a number of financial
   instruments which comprise:

   •   Equity shares, Collective Investment Schemes, equity related instruments, floating rate securities, fixed
       income securities and money market instruments which are held in accordance with the individual sub-fund’s
       investment objectives and policies;

   •   Cash, liquid resources and short-term debtors and creditors that arise directly from its operations;

   •   Shareholders’ funds which represent investors’ monies, which are invested on their behalf;

   •   Shares/units in collective investment schemes which are either a money market scheme or a scheme of a
       category that is equivalent to a money market scheme;

   •   Short-term borrowings used to finance investment activity; and

   •   Derivative transactions which the individual sub-funds may also enter into, principally forward foreign currency
       contracts, futures and options, the purpose of which is to manage the currency and market risks arising from
       the individual sub-fund’s investment activities and related financing.

   It is, and has been throughout the period under review, the Company’s policy that no trading in financial
   instruments shall be undertaken to make short-term speculative gains.

   The main risks arising from the Company’s financial instruments are market price, foreign currency, liquidity,
   interest rate, credit, and default risks. The ACD reviews policies for managing each of these risks and these are
   summarised below. These policies have remained unchanged since the beginning of the period to which these
   financial statements relate.




Page 16
                                                                               F&C Fund of Funds ICVC

Market price risk

Market price risk arises mainly from uncertainty about future prices of financial instruments held. It represents the
potential loss the Company might suffer through holding market positions in the face of price movements.

The ACD monitors on a daily basis the asset allocation of the portfolio in order to minimise the risk associated
with particular countries and industry sectors whilst continuing to follow the investment objective. An individual
fund manager has responsibility for monitoring the existing portfolio selected in accordance with the overall asset
allocation parameter and seeks to ensure that individual stocks also meet the risk reward profile that is
acceptable.

Foreign currency risk

The revenue and capital value of the Company’s investments can be significantly affected by currency translation
movements as some of the Company’s assets and revenue are denominated in currencies other than Sterling
which is the Company’s functional currency.

The ACD has identified three principal areas where foreign currency risk could impact the Company:

•   Movements in rates affect the value of investments;
•   Movements in rates affect short term timing differences; and
•   Movements in rates affect the revenue received.

Currency exposure is monitored closely and is considered to be part of the overall investment process. Currency
hedges via forward exchange contracts or futures will only be used in the event of a specific currency risk being
identified.

The Company may be subject to short-term exposure to exchange rate movements, for instance, where there is a
difference between the date an investment purchase or sale is entered into and the date when settlement of the
proceeds occurs. The ACD may elect to hedge against this risk.

The Company receives revenue in currencies other than Sterling and the Sterling values of this revenue can be
affected by movements in exchange rates. The ACD may elect to hedge against this risk.

Liquidity risk

The primary source of this risk to the fund is the liability to unitholders for any cancellation of units. This risk is
minimised by holding cash, readily realisable securities and access to overdraft facilities.

Interest rate risk

The individual funds invest predominately in collective investment schemes and investments which neither pay
interest nor have a maturity date. The individual funds may also invest in fixed or floating rate securities. Apart
from Multi Manager Distribution, interest rate risk exposure is restricted to interest receivable on bank deposits or
payable on bank overdraft positions which will be affected by fluctuations in interest rates.

The Multi Manager Distribution Fund has invested in floating rate securities. Any change to the interest rates
relevant for particular securities may result in either income increasing or decreasing or the ACD being unable to
secure similar returns on the expiry of contracts or the sale of securities. In addition, changes to prevailing rates
or changes in expectations of future rates may result in an increase or decrease in the value of the securities
held.

In general, if interest rates rise, the income potential of the individual sub-fund also rises, but the value of fixed
rate securities will decline. A decline in interest rates will generally have the opposite effect.




                                                                                                              Page 17
F&C Fund of Funds ICVC

   Credit risk

   The Multi Manager Distribution Fund has invested in bond holdings. If any individual company fails to perform
   well, the credit rating of the company may well fall and the bonds would fall in price. All investments are
   monitored internally and externally by a number of different agencies and assigned ratings, which often change
   over time. The Company closely monitors the ratings of the bonds within the portfolio.

   Default risk

   The Multi Manager Distribution Fund has invested in bond holdings which are at risk of default at any time. Bond
   defaults may be characterised by any missed or delayed payment of interest or principal, bankruptcy or breach of
   certain financial covenants that may render them financially distressed. This risk is minimised by regularly
   monitoring the bonds internally and externally through the ratings agencies.

   Other risks

   Certain transactions in securities that the Company enters into expose it to the risk that the counter-party will not
   deliver the investment (purchase) or cash (sale) after the Company has fulfilled its responsibilities.

   The Company mainly deals, however, on a “delivery versus payment” basis which reduces counter-party risk. The
   Company only buys and sells investments through brokers which have been approved by the ACD as an
   acceptable counter-party. In addition, limits are set as to the maximum exposure to any individual broker that may
   exist at any time; these limits are reviewed quarterly.

   The numerical disclosures required by FRS13 are shown within each individual sub-fund and can be found on the
   pages indicated below.
                                                                                                       Page
    Managed Growth Fund                                                                                 28
    Multi Manager Balanced Fund                                                                         42
    Multi Manager Cautious Fund                                                                         56
    Multi Manager Distribution Fund                                                                     73
    Multi Manager Growth Fund                                                                           87




Page 18
                                                                                    Managed Growth Fund

Authorised Corporate Director’s Investment Report
for the year ended 31 January 2011

Fund Objective
The Fund aims to achieve medium to long-term capital growth through investment in a selected portfolio of shares in
other authorised collective investment schemes. The portfolio will usually consist of shares in other F&C collective
investment schemes in the categories of securities funds, securities companies and money market schemes covering
a wide spread of domestic and international equity and fixed interest assets, including an element of currency
exposure.

Fund manager            Paul Niven
Fund size               £84.9 million
Launch date             30 July 2003
Initial launch date     29 January 1990

Market Review
Global equities posted good gains over the year as investors grew in confidence that the recovery of the developed
economies was sustainable. Markets were initially weak, however, as concerns flared that a new financial crisis would
tip the global economy back into recession. The fragile state of government finances in peripheral eurozone countries
– notably Greece, Spain and Portugal – led to fears that the contagion of possible sovereign debt default could radiate
across the region. However, markets recovered well as corporate earnings across the world showed resilience and
economic growth rates in the US, UK and Japan showed an encouraging trend. Corporate bonds also delivered
attractive returns, outperforming the government bond market as investors continued to seek more attractive yields in
a low interest rate environment. The high yield sector in particular was buoyed by expectations of a steady recovery in
the developed economies and therefore the prospect of lower default rates. There was, however, intermittent volatility
as risk appetite responded to the sovereign debt crisis in the eurozone.

Activity
Trading within the Fund during the period was largely tactical. The balance of the fixed income weighting remained
broadly consistent, the only difference being a slight move towards high yield within the Strategic Bond Fund. We
traded in an out of the Global Bond Fund over the course of the period for the purposes of diversification and risk
control. Within equities, Europe and UK stocks were traded off against each other depending on where we felt the
better value was to be found. Valuation and risk considerations also led us to trade emerging market equities. The
exposure to UK and US smaller companies remained constant over the period while a holding in active return
investments was re-introduced to help restrict volatility.

Outlook
Even though negative themes such as the eurozone financial crisis and monetary tightening in China have been
dominating fundamentals, we continue to see encouraging prospects for equities. Risk appetite globally should find
support from a surge of liquidity if the latest round of quantitative easing in the US prompts Japan and Europe to
follow suit. Moreover, the momentum of company profits growth should also boost stocks as the major economies
continue their recovery. Within fixed income, we expect the latest tranche of quantitative easing to support shorter-
dated government bonds but push up longer-dated yields as inflationary pressures build. Within the asset class we
retain our preference for credit over sovereign debt. Corporate bonds offer better return prospects though absolute
levels of yield are a concern. After widening in the wake of the euro sovereign crisis, credit spreads could tighten
significantly when monetary easing picks up again.

Performance Summary
Over the period under review, the F&C Managed Growth Fund returned 16.3%. This compared to an IMA Active
Managed sector median return of 16.9%. All returns are in sterling on a total return basis.



F&C Fund Management Limited
28 February 2011




                                                                                                              Page 19
Managed Growth Fund

Comparative Table
Net Asset Value Record
Date                     Share Class           Total Net Asset Value    Shares in Issue     Total Net Asset
                                                                                            Value per Share
                                                        (£)                                       (p)
31 January 2009          1 – Income                 1,930,854               1,290,768            149.6
                         1 – Accumulation          41,486,991              25,750,598            161.1
31 January 2010          1 – Income                 3,553,822               1,909,166            186.2
                         1 – Accumulation          78,680,164              39,083,741            201.3
31 January 2011          1 – Income                 3,772,123               1,749,315            215.6
                         1 – Accumulation          81,150,555              34,684,694            234.0

All share classes were issued at launch.

Performance Record
   Calendar Year        Share Class           Highest Share Price   Lowest Share Price    Distribution per
                                                                                               Share
                                                     (p)                    (p)                  (p)
          2006          1 – Income                 213.5                   180.1              0.9992
                        1 – Accumulation           225.1                   190.0              1.0925
          2007          1 – Income                 240.8                   211.3                     -
                        1 – Accumulation           253.9                   223.3                     -
          2008          1 – Income                 231.4                   140.8              1.4276
                        1 – Accumulation           244.1                   149.6              1.5793
          2009          1 – Income                 193.7                   132.2              2.0581
                        1 – Accumulation           208.6                   142.4              2.2501
          2010          1 – Income                 218.0                   182.3              0.7902
                        1 – Accumulation           235.7                   197.1              0.8131
          2011*         1 – Income                 219.9                   216.0              0.8191
                        1 – Accumulation           237.8                   233.4              0.7769

* To 31 January 2011.

Past performance is not necessarily a guide to future performance. The price of shares, and the revenue from
them, may go down as well as up.

Total Expense Ratio
Date                       Share Class               Total Expense Ratio
                                                             (%)
31 January 2010            1 – Income                        1.81
                           1 – Accumulation                  1.84
31 January 2011            1 – Income                        1.81
                           1 – Accumulation                  1.85




Page 20
                                                                                   Managed Growth Fund

Portfolio Statement
as at 31 January 2011
                                                                                                              Total
                                                                                              Market            Net
Investment                                                                    Holding          Value         Assets
                                                                                               £’000             %

Open Ended Investment Companies - 91.43% (31/01/2010 - 87.63%)
F&C Emerging Markets '3' (Accumulation)                                      5,673,123          6,445           7.59
F&C European Growth & Income '3' (Accumulation)                              1,411,262          8,277           9.75
F&C FTSE All-Share Tracker '4' (Income)                                      4,177,776         13,235          15.58
F&C Institutional European '4' (Income)                                        908,874          5,910           6.96
F&C North American '4' (Income)                                              2,031,285          4,347           5.12
F&C Pacific Growth '4' (Income)                                              1,062,848          2,920           3.44
F&C Progressive Growth '2' (Accumulation)                                    2,460,014          3,395           4.00
F&C South East Asian Equity '2' (Income)                                       305,342          5,108           6.01
F&C Strategic Bond '4' (Income)                                              5,636,179          5,935           6.99
F&C UK Equity Income '4' (Income)                                            4,564,435          3,820           4.50
F&C UK Growth & Income '3' (Accumulation)                                      532,846          3,942           4.64
F&C UK Opportunities '4' (Accumulation)                                      6,807,740          4,066           4.79
F&C UK Smaller Companies '4' (Accumulation)                                  2,609,541          6,986           8.22
F&C US Smaller Companies '1' (Income)                                          288,867          3,261           3.84
                                                                                               77,647          91.43

Offshore Investment Companies - 7.59% (31/01/2010 - 9.76%)
F&C Portfolios Fund Japanese Equity 'I'                                        540,926          6,443           7.59

Investment assets                                                                              84,090          99.02
Net other assets                                                                                  833           0.98
Total net assets                                                                               84,923         100.00

All investments are approved securities as defined in the Collective Investment Schemes sourcebook unless
otherwise stated.
The comparative percentage figures in brackets are as at 31 January 2010.

This portfolio statement consists entirely of investments which are considered investments in related parties as they
have the same ACD as the Fund.




                                                                                                             Page 21
Managed Growth Fund

Portfolio Movements
for the year ended 31 January 2011
Purchases                                                                                  Note                Cost
                                                                                                              £’000

F&C Institutional European '4' (Income)                                                                      19,222
F&C FTSE All-Share Tracker '4' (Income)                                                                      12,456
F&C Emerging Markets '3' (Accumulation)                                                                       8,833
F&C North American '4' (Income)                                                                               8,386
F&C Global Bond '4' (Income)                                                                                  6,053
F&C Strategic Bond '4' (Income)                                                                               4,067
F&C Portfolios Fund Japanese Equity 'I'                                                                       3,677
F&C European Growth & Income '3' (Accumulation)                                                               3,399
F&C Portfolios Fund Active Return 'I'                                                                         3,062
F&C UK Equity Income '4' (Income)                                                                             2,305

Other purchases                                                                                               7,702

Total for the year                                                                           9               79,162



Sales                                                                                      Note           Proceeds
                                                                                                              £’000

F&C Institutional European '4' (Income)                                                                      20,697
F&C North American '4' (Income)                                                                               8,693
F&C European Growth & Income '3' (Accumulation)                                                               8,433
F&C Emerging Markets '3' (Accumulation)                                                                       6,983
F&C Global Bond '4' (Income)                                                                                  6,473
F&C FTSE All-Share Tracker '4' (Income)                                                                       6,308
F&C Portfolios Fund Active Return 'I'                                                                         4,959
F&C Portfolios Fund Japanese Equity 'I'                                                                       4,251
F&C UK Equity Income '4' (Income)                                                                             2,735
F&C UK Growth & Income '3' (Accumulation)                                                                     2,557

Other sales                                                                                                  15,286

Total for the year                                                                           9               87,375

The holdings shown are entirely of investments which are considered investments in related parties as they have the
same ACD as the Fund.

Notes to the financial statements are on pages 25 to 29.




Page 22
                                                                                Managed Growth Fund

Statement of Total Return
for the year ended 31 January 2011
                                                                           31/01/2011                  31/01/2010
                                                     Notes                      £’000                       £’000

Income
  Net capital gains                                        1                   12,226                      15,320
  Revenue                                                  2      1,785                       1,643

Expenses                                                   3     (1,492)                     (1,208)

Finance costs: Interest                                    5         (2)                         (2)

Net revenue before taxation                                         291                         433

Taxation                                                   4           -                        (77)

Net revenue after taxation                                                        291                         356

Total return before distributions                                              12,517                      15,676

Finance costs: Distributions                               5                     (293)                      (358)

Change in net assets attributable to
shareholders from investment activities                                        12,224                      15,318


Statement of Change in Net Assets Attributable to Shareholders
for the year ended 31 January 2011
                                                                           31/01/2011                  31/01/2010
                                                                                £’000                       £’000

Opening net assets attributable to shareholders                                82,234                      43,418

Amounts transferred from F&C Managed Balanced Fund*                                  -                     30,930

Amounts receivable on issue of shares                              1,251                         433
Amounts payable on cancellation of shares                       (11,048)                     (8,179)
                                                                               (9,797)                     (7,746)

Stamp duty reserve tax                                                             (7)                         (6)

Change in net assets attributable to shareholders
from investment activities (see above)                                         12,224                      15,318

Retained distribution on accumulation shares                                      269                         318

Unclaimed distributions                                                              -                          2


Closing net assets attributable to shareholders                                84,923                      82,234



* The 2009 items reflect the adjustment to remove the Managed Balanced Fund from the financial statement as at 1
February 2009 following termination of the Fund and the receipt of its assets by Managed Growth Fund in accordance
with a scheme of arrangement on 26 June 2009.


Notes to the financial statements are on pages 25 to 29.
                                                                                                         Page 23
Managed Growth Fund

Balance Sheet
as at 31 January 2011
                                                                     31/01/2011             31/01/2010
                                                     Notes                £’000                  £’000

ASSETS

Investment assets                                                       84,090                 80,090

Debtors                                                7      826                  2,575
Cash and bank balances                                        447                  1,936

Total other assets                                                       1,273                  4,511


Total assets                                                            85,363                 84,601



LIABILITIES

Creditors                                              8     (318)                (2,222)
Bank overdrafts                                              (108)                  (130)
Distribution payable on income shares                         (14)                   (15)

Total liabilities                                                         (440)                (2,367)


Net assets attributable to shareholders                                 84,923                 82,234



Notes to the financial statements are on pages 25 to 29.




Page 24
                                                                     Managed Growth Fund

Notes to the Financial Statements
1. NET CAPITAL GAINS                                                31/01/2011   31/01/2010
                                                                         £’000        £’000
  The net capital gains during the year comprise:

  Non-derivative securities                                            12,220       15,325
  Currency losses                                                            -          (6)
  Rebate of capital management fees from underlying investments            11             7
  Transaction charges                                                      (5)          (6)
  Net capital gains                                                    12,226       15,320

2. REVENUE

  Franked component of dividend distributions                           1,133          525
  Interest distributions                                                  374          347
  Rebate of revenue management fees from underlying investments           221          172
  Offshore investment companies                                            48           37
  Bank interest                                                             6           11
  Unfranked component of dividend distributions                             3          551
                                                                        1,785        1,643

3. EXPENSES

  Payable to the Authorised Corporate Director, associates of the
  Authorised Corporate Director, and agents of either of them:
  Authorised Corporate Director's periodic charge                       1,251          992

  Payable to the Depositary, associates of the Depositary
  and agents of either of them:
  Depositary's fee                                                         12           10
  Safe custody fees                                                         2            1
                                                                           14           11

  Other expenses:
  Registrar's fees                                                        182          159
  Accounting & administration fees                                         21           22
  Administration costs                                                     10           10
  Audit fee                                                                 7            7
  Price publication costs                                                   3            2
  Report & accounts printing costs                                          2            3
  European Savings Directive fees                                           2            2
                                                                          227          205
  Total expenses (including VAT where appropriate)                      1,492        1,208




                                                                                   Page 25
Managed Growth Fund
4. TAXATION                                                                       31/01/2011               31/01/2010
                                                                                       £’000                    £’000
a) Analysis of charge in the year
   Irrecoverable income tax                                                                  -                      77
   Total taxation                                                                            -                      77

b) Factors affecting current tax charge for year
   The tax assessed for the year is lower than the standard rate of corporation tax in the UK for an Open Ended
   Investment Company (OEIC) of 20%. The differences are explained below:

   Net revenue before taxation                                                            291                      433

   Corporation tax at 20% (2010: 20%)                                                      58                       87

   Effects of:
   Franked component of dividend income not subject to corporation tax                  (227)                    (105)
   Offshore dividends not subject to corporation tax                                       (9)                       -
   Irrecoverable income tax                                                                  -                      77
   Capital taxable revenue not included in total revenue                                     2                       -
   Movement in excess management expenses                                                 174                       28
   Revenue taxable in different periods                                                      2                    (10)
   Current tax charge (note 4a)                                                              -                      77

   Open Ended Investment Companies are exempt from tax on capital gains. Therefore, any capital return is not
   included in the above reconciliation.

c) Factors that may affect future tax charges
   At the year end, after offset against accrued revenue taxable on receipt, there is a potential deferred tax asset of
   £691,672 (31/01/2010: £515,944) in relation to excess management expenses. It is unlikely the fund will generate
   sufficient taxable profits in the future to utilise these expenses and therefore no deferred tax asset has been
   recognised in the current year or the prior year.

5. FINANCE COSTS

   Distributions and interest
   The distributions take account of revenue received on the issue of shares and revenue deducted on the
   cancellation of shares and comprise:

   Final dividend distribution                                                            284                      333

   Revenue deducted on cancellation of shares                                              13                       26
   Revenue received on issue of shares                                                     (4)                      (1)
   Net distribution for the year                                                          293                      358

   Details of the distributions per share are set out in the distribution
   table on page 30.

   Interest                                                                                 2                        2

   Total finance costs                                                                    295                      360

6. MOVEMENT BETWEEN NET REVENUE AND DISTRIBUTIONS

   Net revenue after taxation                                                             291                      356
   Tax on capital fee rebates not distributed                                               2                        2
                                                                                          293                      358




Page 26
                                                                                  Managed Growth Fund
7. DEBTORS                                                                       31/01/2011        31/01/2010
                                                                                      £’000             £’000

   Amounts receivable for issue of shares                                               554               108
   Income tax recoverable                                                               162               161
   Accrued revenue                                                                       78                96
   Accrued management fee rebates                                                        31                61
   Prepaid expenses                                                                       1                 1
   Sales awaiting settlement                                                              -             2,148
                                                                                        826             2,575

8. CREDITORS

   Amounts payable for cancellation of shares                                           161                93
   Accrued Authorised Corporate Director’s periodic charge                              110               103
   Accrued expenses                                                                      47                30
   Purchases awaiting settlement                                                          -             1,996
                                                                                        318             2,222

9. PORTFOLIO TRANSACTION COSTS

   Analysis of total purchase costs

   Purchases in the year before transaction costs                                    79,162           150,987

   Commissions                                                                            -                 -
   Gross purchases total                                                             79,162           150,987

   Analysis of total sales costs

   Gross sales before transaction costs                                              87,375           127,488

   Commissions                                                                            -                 -
   Total sales net of transaction costs                                              87,375           127,488

10. CONTINGENT LIABILITIES

   There are no contingent liabilities or commitments outstanding as at the balance sheet date.

11. POST BALANCE SHEET EVENTS

   There were no material post balance sheet events which have a bearing on the understanding of the financial
   statements.




                                                                                                     Page 27
Managed Growth Fund
12. RELATED PARTY DISCLOSURE

   F&C Fund Management Limited, as Authorised Corporate Director (ACD), is a related party, and acts as principal
   in respect of all transactions of shares in the Company. The aggregate monies received through issue, and paid
   on cancellation, are disclosed in the Statement of Change in Net Assets Attributable to Shareholders. Any
   amounts due to, or from, F&C Fund Management Limited at the end of the accounting period are disclosed in
   notes 8 and 7 respectively.

   Amounts payable to F&C Fund Management Limited in respect of fund management are disclosed in note 3 and
   amounts due at the end of the year in note 8.

   The sub-funds invest in authorised funds which are managed by the ACD. Such transactions will be conducted
   on an arm’s length basis within the regulations and the terms of the prospectus.

   Investments considered to be related parties have been identified in the portfolio statement. The revenue from
   these investments was £1,779,609 (31/01/2010: £1,632,407).


13. SHAREHOLDERS’ FUNDS

   The Fund currently has one share class: Class 1 (Retail). The ACD charge on the share class is as follows:

      Class 1:                       1.50%

   The net asset value of the share class, the net asset value per share, and the number of shares in the share
   class are given in the comparative table on page 20. The distribution per share class is given in the distribution
   table on page 30.


14. FINANCIAL INSTRUMENTS

   The analyses and tables provided below refer to the narrative disclosure on ‘Financial Instrument Risks’ on page
   16.

   Currency exposures

   The Fund’s financial assets and liabilities are all denominated in Sterling. As a result, the Fund has no exposure
   to currency movements.

   Interest rate risk

   Interest rate risk profile of financial assets and financial liabilities

   The interest rate profile of the Fund’s financial assets at 31 January 2011 and 31 January 2010 was:

                                    Total            Floating rate         Fixed rate     Financial assets
          Currency                                 financial assets     interest assets      on which no
                                                                                           interest is paid
          31/01/2011               £’000                £’000                 £’000             £’000
          UK Sterling             85,363                  447                     -            84,916
          Total                   85,363                  447                     -            84,916
          31/01/2010               £’000                £’000                 £’000             £’000
          UK Sterling             84,601                1,936                     -            82,665
          Total                   84,601                1,936                     -            82,665

   The floating rate financial assets earn interest which is based on the London Inter Bank Offer Rate (LIBOR).

   Financial assets on which no interest is paid in both periods comprised collective investment schemes that have
   no maturity date and short term debtors and creditors.



Page 28
                                                                                  Managed Growth Fund
The interest rate profile of the Fund’s financial liabilities at 31 January 2011 and 31 January 2010 was:

                                    Total         Floating rate         Fixed rate            Financial
    Currency                                        financial            interest           liabilities on
                                                    liabilities         liabilities           which no
                                                                                          interest is paid
    31/01/2011                      £’000            £’000                £’000                 £’000
    UK Sterling                       440              108                    -                    332
    Total                             440              108                    -                    332
    31/01/2010                      £’000            £’000                £’000                 £’000
    UK Sterling                     2,367              130                    -                 2,237
    Total                           2,367              130                    -                 2,237

The floating rate financial liabilities include a Sterling denominated overdraft that in both periods bore interest
based on the London Inter Bank Offer Rate (LIBOR).

Maturity of financial liabilities

The financial liabilities of the Fund as at 31 January 2011 are payable either within one year or on demand, as
were the financial liabilities of the previous year ended 31 January 2010.

Fair values of financial assets and liabilities

There is no material difference between the value of the financial assets and liabilities, as shown in the balance
sheet and their fair value.




                                                                                                             Page 29
Managed Growth Fund

Distribution table
for the period from 1 February 2010 to 31 January 2011
                                                     Net revenue   Equalisation   Distribution   Distribution
                                                                                    payable          paid

                                                                                  31/03/2011     31/03/2010
                                                      pence per      pence per    pence per      pence per
                                                        share          share        share          share

31/01/2011   Group 1: Shares purchased prior to 1 February 2010.
             Group 2: Shares purchased from 1 February 2010 to 1 February 2011.

Class 1      Income

Group 1                                                0.8191            -          0.8191         0.7902
Group 2                                                0.6825         0.1366        0.8191         0.7902

Class 1      Accumulation

Group 1                                                0.7769            -          0.7769         0.8131
Group 2                                                0.2683         0.5086        0.7769         0.8131




Page 30
                                                                                      Managed Growth Fund
CORPORATE SHAREHOLDERS

   Dividend distribution

   A shareholder liable to UK corporation tax receives these income distributions and associated tax credits as
   franked investment income to the extent that the gross revenue from which the distributions are made is itself
   franked investment income.

   Where the gross revenue from which the distributions are made is not wholly franked investment income, part of
   the distributions are received as an annual payment from which income tax at the lower rate is deemed to have
   been deducted. A shareholder liable to UK corporation tax receives these distributions, excluding equalisation, as
   follows;

                    Date           Share Class                  Franked                 Unfranked
                                                              Investment               Investment
                                                                Income*                 Income**
                                                                   (%)                     (%)
                 31/01/2011        1 – Income                    100.00                    0.00
                                   1 – Accumulation              100.00                    0.00

 * Proportion of the total income distribution, excluding equalisation, together with the tax credit, which is received as
   franked investment income.

 ** Proportion of the total income distribution, excluding equalisation, which is deemed to be received as an annual
    payment after deduction of income tax at the lower rate and is liable to corporation tax. It is not franked
    investment income.




                                                                                                                 Page 31
Multi Manager Balanced Fund

Authorised Corporate Director’s Investment Report
for the year ended 31 January 2011

Fund Objective
This Fund aims to provide income from a lower risk portfolio of investments in regulated collective investment
schemes. The Fund will invest mainly in funds investing in the UK and will hold some assets in funds investing in UK
fixed interest securities. The Fund may also invest internationally for growth from a diversified portfolio.

Fund manager            Dean Cheeseman
Fund size               Nil
Launch date             19 September 2002
Initial launch date     1 February 1993

Market Review
Global equities traded higher in the period under review. Markets were boosted by signs of ongoing recovery in the
developed economies and by generally healthy company profits. This came despite the threat of a renewed financial
crisis in the eurozone. A forced €84 billion bail out of the Irish banking system and concerns that Spain may require
similar support led some commentators to question the future of the single currency project. Bonds made only modest
gains as investors focused on improving economic fundamentals and moved into riskier assets.

Activity
We invested in a certificate linked to BNP Vol Edge – a fund that looks to profit from market volatility. We
subsequently sold the holding after good performance. We were active in the overseas equity portion of the portfolio.
In the US we trimmed our S&P500 exchange traded fund to allow the purchase of a new position in the Robecco US
Premium Equities Fund. We sold our position in Threadneedle UK Equity Alpha Income and bought Aberdeen
Emerging Markets as we moved our emerging markets exposure back to neutral. Additions to iShares MSCI Europe
ex UK and iShares MSCI Japan reflected increased allocations to those regions. The significant gyrations of the
market over the period have required us to be quite tactical when investing the portfolio. We were initially positive on
the outlook for corporate profits and sold our some of our fixed income exposure – Fidelity Strategic Bond – early in
the period but we repurchased it to help protect the Fund against increasing volatility in the equity markets. To that
end we decided to hedge out some of the equity market exposure when protection became cheap and invested into a
certificate linked to BNP Vol Edge, although we later sold the holding post a significant fall in the market. In the US
we trimmed our S&P500 ETF to fund the purchase of a new position in the Robecco US Premium Equities Fund. Its
purchase sits well with our relatively upbeat assessment of the outlook for the US and its equity markets – a view that
means we are happy to introduce a fund with some small and mid cap exposure. We also added Aberdeen Emerging
Markets to the portfolio to increase the allocation to emerging market equities once we saw increased value in the
region. Towards the end of the period we reorganised the portfolio to reflect the preferred holdings of the Thames
River Capital fund into which it is being merged. Thematic positioning remained consistent, however, and we
continued to focus on assets that would stand to benefit from improving economic fundamentals.


Performance Summary
Over the period under review, the price of shares in the F&C Multi Manager Balanced Fund rose by 12.3%. By
comparison, the IMA Balanced Managed sector median was 12.2%. All returns in sterling and on a total return basis.



F&C Fund Management Limited
28 February 2011




Page 32
                                                                      Multi Manager Balanced Fund

Comparative Table
Net Asset Value Record
Date                         Share Class            Total Net Asset Value   Shares in Issue    Total Net Asset
                                                                                               Value per Share
                                                              (£)                                    (p)
31 January 2009              1 – Income                   7,766,840           6,424,603            120.9
                             1 – Accumulation            42,625,736          29,697,159            143.5
                             2 – Accumulation               903,767             734,711            123.0
                             4 – Accumulation            38,103,464          31,632,803            120.5
31 January 2010              1 – Income                   8,275,475           5,906,660            140.1
                             1 – Accumulation            38,594,254          22,625,174            170.6
                             2 – Accumulation               802,191             546,711            146.7
                             4 – Accumulation            40,902,129          28,255,390            144.8
31 January 2011*             1 – Income                           -                   -                  -
                             1 – Accumulation                     -                   -                  -
                             2 – Accumulation                     -                   -                  -
                             4 – Accumulation                     -                   -                  -

All share classes were issued at launch.
* The Fund closed on 9 December 2010.

Performance Record
   Calendar Year       Share Class              Highest Share Price   Lowest Share Price      Distribution per
                                                                                                   Share
                                                       (p)                   (p)                     (p)
        2006           1 – Income                    169.5                  151.2                 3.6189
                       1 – Accumulation              186.8                  164.7                 4.0416
                       2 – Accumulation              158.8                  139.7                 2.9443
                       4 – Accumulation              153.3                  134.4                 3.4117
        2007           1 – Income                    179.6                  160.0                 3.9518
                       1 – Accumulation              200.1                  180.2                 4.4774
                       2 – Accumulation              170.4                  153.6                 3.6381
                       4 – Accumulation              165.0                  148.9                 3.7411
        2008           1 – Income                    168.4                  113.6                 4.5742
                       1 – Accumulation              190.0                  132.2                 5.1722
                       2 – Accumulation              162.2                  113.2                 4.2733
                       4 – Accumulation              157.6                  110.7                 4.4856
        2009           1 – Income                    145.6                  111.0                 4.3167
                       1 – Accumulation              175.3                  132.0                 5.0787
                       2 – Accumulation              150.7                  113.2                 4.1789
                       4 – Accumulation              148.6                  110.9                 4.3176
        2010*          1 – Income                    160.0                  139.1                 3.9354
                       1 – Accumulation              196.6                  168.8                 4.8308
                       2 – Accumulation              169.6                  145.2                 3.4391
                       4 – Accumulation              168.4                  143.3                 4.3355
        2011*          1 – Income                        -                       -                       -
                       1 – Accumulation                  -                       -                       -
                       2 – Accumulation                  -                       -                       -
                       4 – Accumulation                  -                       -                       -

* The Fund closed on 9 December 2010.

Past performance is not necessarily a guide to future performance. The price of shares, and the revenue from
them, may go down as well as up.




                                                                                                        Page 33
Multi Manager Balanced Fund

Total Expense Ratio
Date                      Share Class                  Total Expense Ratio
                                                               (%)
31 January 2010           1 – Income                           2.31
                          1 – Accumulation                     2.32
                          2 – Accumulation                     1.88
                          4 – Accumulation                     0.94
31 January 2011*          1 – Income                             -
                          1 – Accumulation                       -
                          2 – Accumulation                       -
                          4 – Accumulation                       -

* The Fund closed on 9 December 2010. No Total Expense Ratio has been calculated for the financial year.




Page 34
                                                                      Multi Manager Balanced Fund

Portfolio Movements
for the year ended 31 January 2011
Purchases                                                                               Note                Cost
                                                                                                           £’000

Aberdeen Emerging Markets 'A' (Accumulation)                                                               5,574
Robeco US Premium Equities IE GBP (Income)                                                                 4,718
Jupiter Growth & Income (Income)                                                                           4,457
Aegon High Yield Bond 'B' (Income)                                                                         3,844
Old Mutual Corporate Bond 'B' (Income)                                                                     3,675
JPMorgan Global Consumer Trends 'C' (Accumulation)                                                         3,659
Old Mutual UK Dynamic Equity 'I' (Income)                                                                  3,548
Henderson Global Investors Strategic Bond 'I' (Accumulation)                                               3,436
Fidelity Sterling Bond (Income)                                                                            3,417
J O Hambro Continental UK Growth Institutional GBP (Income)                                                3,224

Other purchases                                                                                           33,935

Total for the year                                                                        9               73,487



Sales                                                                                   Note          Proceeds
                                                                                                          £’000

SPDR Trust S&P500                                                                                          9,905
BlackRock UK 'A' (Accumulation)                                                                            9,001
Fidelity Sterling Bond (Income)                                                                            6,232
Invesco Perpetual Corporate Bond (Income)                                                                  5,812
Neptune Income 'B' (Income)                                                                                5,030
PIMCO Global High Yield Bond Institutional GBP (Income)                                                    4,610
BlackRock UK Absolute Alpha 'P' (Accumulation)                                                             4,472
iShares Trust S&P500                                                                                       4,459
Jupiter Financial Opportunities (Income)                                                                   4,210
J O Hambro UK Opportunities Institutional (Accumulation)                                                   4,187

Other sales                                                                                              34,824

Total for the year                                                                        9              92,742

These amounts do not include any transactions related to the scheme of arrangement, details of which can be found
on page 3.

Notes to the financial statements are on pages 38 to 43.




                                                                                                        Page 35
Multi Manager Balanced Fund

Statement of Total Return
for the year ended 31 January 2011
                                                                          31/01/2011                 31/01/2010
                                                     Notes                     £’000                      £’000
Income
  Net capital gains                                        1                  11,244                     13,473
  Revenue                                                  2     1,772                      2,809

Expenses                                                   3      (609)                      (696)

Finance costs: Interest                                    5        (2)                        (8)

Net revenue before taxation                                      1,161                      2,105

Taxation                                                   4      (112)                      (302)

Net revenue after taxation                                                     1,049                      1,803

Total return before distributions                                             12,293                     15,276

Finance costs: Distributions                                                 (1,461)                     (2,289)

Change in net assets attributable to
shareholders from investment activities                                       10,832                     12,987


Statement of Change in Net Assets Attributable to Shareholders
for the year ended 31 January 2011
                                                                          31/01/2011                 31/01/2010
                                                                               £’000                      £’000

Opening net assets attributable to shareholders                               88,574                     89,400

Amounts transferred to Thames River Balanced Managed Fund                   (87,830)                           -

Amounts receivable on issue of shares                             2,494                      1,409
Amounts payable on cancellation of shares                      (15,345)                   (17,233)
                                                                            (12,851)                   (15,824)

Stamp duty reserve tax                                                            (8)                       (12)

Change in net assets attributable to shareholders
from investment activities (see above)                                        10,832                     12,987

Retained distributions on accumulation shares                                  1,288                      2,023

Amounts to be transferred to Thames River Balanced Managed Fund                   (5)                          -


Closing net assets attributable to shareholders                                     -                    88,574


On 24 November 2010 the Shareholders approved a scheme of arrangement to merge the Fund with the Thames
River Balanced Managed Fund.

The scheme of arrangement took effect on 10 December 2010 with the transfer of the assets and liabilities of the
Fund to the Thames River Balanced Managed Fund and the issue to Shareholders of shares in the Thames River
Balanced Fund. All the shares in issue of the Fund were cancelled.

Notes to the financial statements are on pages 38 to 43.
Page 36
                                                                Multi Manager Balanced Fund

Balance Sheet
as at 31 January 2011
                                                                     31/01/2011             31/01/2010
                                                     Notes                £’000                  £’000

ASSETS

Investment assets                                                             -                87,728

Debtors                                                7      212                  2,428
Cash and bank balances                                          -                    712

Total other assets                                                         212                  3,140


Total assets                                                               212                 90,868



LIABILITIES

Creditors                                              8      (17)                (1,881)
Bank overdrafts                                              (157)                  (321)
Distribution payable on income shares                         (38)                   (92)

Total liabilities                                                         (212)                (2,294)


Net assets attributable to shareholders                                       -                88,574



Notes to the financial statements are on pages 38 to 43.




                                                                                              Page 37
Multi Manager Balanced Fund

Notes to the Financial Statements
1. NET CAPITAL GAINS                                                 31/01/2011   31/01/2010
                                                                          £’000        £’000
   The net capital gains during the year comprise:

   Non-derivative securities                                            11,120       13,889
   Derivative contracts                                                       -       (505)
   Currency gains                                                           92           18
   Rebate of capital management fees from underlying investments            38           77
   Transaction charges                                                      (6)          (6)
   Net capital gains                                                    11,244       13,473

2. REVENUE

   Interest distributions                                                  612          881
   Offshore investment companies                                           424          366
   Franked component of dividend distributions                             423          618
   Rebate of revenue management fees from underlying investments           215          186
   Overseas dividends                                                       73          221
   Interest on debt securities                                              17            -
   Bank interest                                                            14           12
   Unfranked component of dividend distributions                            (6)         525
                                                                         1,772        2,809

3. EXPENSES

   Payable to the Authorised Corporate Director, associates of the
   Authorised Corporate Director, and agents of either of them:
   Authorised Corporate Director's periodic charge                         513          588

   Payable to the Depositary, associates of the Depositary
   and agents of either of them:
   Depositary's fee                                                         11           12
   Safe custody fees                                                         1            1
                                                                            12           13

   Other expenses:
   Registrar's fees                                                         44           49
   Accounting & administration fees                                         17           21
   Administration costs                                                      9           10
   Audit fee                                                                 7            8
   Price publication costs                                                   4            2
   European Savings Directive fees                                           2            2
   Report & accounts printing costs                                          1            3
                                                                            84           95
   Total expenses (including VAT where appropriate)                        609          696




Page 38
                                                                         Multi Manager Balanced Fund
4. TAXATION                                                                     31/01/2011              31/01/2010
                                                                                     £’000                   £’000
a) Analysis of charge in the year
   Corporation tax                                                                     126                        267
   Double taxation relief                                                                 -                        (4)
   Overseas tax suffered                                                                 11                        25
   Irrecoverable income tax                                                             (1)                          -
   Total current tax (note 4b)                                                         136                        288
   Deferred tax (note 4c)                                                              (24)                        14
   Total taxation                                                                      112                        302

b) Factors affecting current tax charge for year
   The tax assessed for the year is lower than the standard rate of corporation tax in the UK for an Open Ended
   Investment Company (OEIC) of 20%. The differences are explained below:

   Net revenue before taxation                                                        1,161                   2,105

   Corporation tax at 20% (2010: 20%)                                                   232                       421

   Effects of:
   Franked component of dividend income not subject to corporation tax                 (85)                   (123)
   Overseas and offshore dividends not subject to corporation tax                      (53)                    (32)
   Revenue taxable in different periods                                                  24                    (14)
   Capital taxable revenue not included in total revenue                                  8                      15
   Irrecoverable overseas tax                                                            11                      21
   Irrecoverable income tax                                                             (1)                       -
   Current tax charge (note 4a)                                                        136                      288

   Open Ended Investment Companies are exempt from tax on capital gains. Therefore, any capital return is not
   included in the above reconciliation.

c) Deferred tax
   Provision at start of year                                                            24                        10
   Deferred tax charge in profit and loss account for period (note 4a)                 (24)                        14
   Provision at end of year                                                               -                        24

   The provision for deferred taxation is made up as follows:
   Revenue taxable in different periods                                                    -                       24
                                                                                           -                       24




                                                                                                           Page 39
Multi Manager Balanced Fund
5. FINANCE COSTS                                                               31/01/2011             31/01/2010
                                                                                    £’000                  £’000
   Distributions and interest
   The distributions take account of revenue received on the issue of shares and revenue deducted on the
   cancellation of shares and comprise:

   Interim dividend distributions                                                   1,405                  1,230
   Final dividend distributions                                                          -                   998
                                                                                    1,405                  2,228
   Revenue deducted on cancellation of shares                                           69                    66
   Revenue received on issue of shares                                                (13)                    (5)
   Net distributions for the year                                                   1,461                  2,289

   Details of the distributions per share are set out in the distribution
   tables on pages 44 to 45.

   Interest                                                                              2                     8

   Total finance costs                                                              1,463                  2,297

6. MOVEMENT BETWEEN NET REVENUE AND DISTRIBUTIONS

   Net revenue after taxation                                                       1,049                  1,803
   ACD fees paid from capital                                                         513                    588
   Tax relief on net capital expenses                                                 (95)                 (102)
   Undistributed revenue carried forward                                               (6)                     -
                                                                                    1,461                  2,289

7. DEBTORS


   Accrued revenue                                                                    167                    259
   Income tax recoverable                                                              45                     41
   Sales awaiting settlement                                                            -                  2,107
   Accrued management fee rebates                                                       -                     20
   Prepaid expenses                                                                     -                      1
                                                                                      212                  2,428

8. CREDITORS

   Accrued expenses                                                                    12                     20
   Amounts due to Thames River Balanced Managed Fund                                    5                      -
   Purchases awaiting settlement                                                        -                  1,728
   Amounts payable for cancellation of shares                                           -                     59
   Accrued Authorised Corporate Director’s periodic charge                              -                     50
   Deferred tax provision                                                               -                     24
                                                                                       17                  1,881




Page 40
                                                                       Multi Manager Balanced Fund
9. PORTFOLIO TRANSACTION COSTS                                                   31/01/2011           31/01/2010
                                                                                      £’000                £’000
   Analysis of total purchase costs

   Purchases in the year before transaction costs                                    73,482                58,383

   Commissions                                                                            5                    25
   Gross purchases total                                                             73,487                58,408

   Analysis of total sales costs

   Gross sales before transaction costs                                              92,755                69,491

   Commissions                                                                          (13)                  (22)
   Total sales net of transaction costs                                              92,742                69,469


10. CONTINGENT LIABILITIES

   There are no contingent liabilities or commitments outstanding as at the balance sheet date.

11. POST BALANCE SHEET EVENTS

   There were no material post balance sheet events which have a bearing on the understanding of the financial
   statements.

12. RELATED PARTY DISCLOSURE

   F&C Fund Management Limited, as Authorised Corporate Director (ACD), is a related party, and acts as principal
   in respect of all transactions of shares in the Company. The aggregate monies received through issue, and paid
   on cancellation, are disclosed in the Statement of Change in Net Assets Attributable to Shareholders.

   Amounts payable to F&C Fund Management Limited in respect of fund management are disclosed in note 3 and
   amounts due at the end of the year in note 8.

   The ACD is also the ACD or Manager for other authorised funds and those funds may invest in each other where
   this is within the investment objectives of the investing fund. Such transactions will be conducted on an arm’s
   length basis within the regulations and the terms of the prospectus. No such transactions were entered into
   during the current year.




                                                                                                         Page 41
Multi Manager Balanced Fund
13. SHAREHOLDERS’ FUNDS

   The Fund had three share classes: Class 1 (Retail), Class 2 (Institutional), and Class 4 (Asset Manager). The
   ACD charge on each share class was as follows:

      Class 1:                       1.25%
      Class 2:                       0.65%
      Class 4:                       nil

   The distribution per share class is given in the distribution tables on page 44 to 45. All classes have the same
   rights on winding up.

14. FINANCIAL INSTRUMENTS

   The analyses and tables provided below refer to the narrative disclosure on ‘Financial Instrument Risks’ on page
   16.

   Currency exposures

   The Fund’s financial assets and liabilities are all denominated in Sterling. As a result the Fund has no exposure to
   currency movements.


              Currency                                Net foreign currency assets
                                                            as at 31/01/2011
                                       Monetary              Non-monetary
                                      exposures                Exposures                    Total
                                        £’000                     £’000                     £’000
              US Dollars                    -                          -                        -
              Currency                                Net foreign currency assets
                                                            as at 31/01/2010
                                       Monetary              Non-monetary
                                      exposures                exposures                   Total
                                        £’000                     £’000                    £’000
              US Dollars                    -                    11,674                   11,674


   Interest rate risk profile of financial assets and financial liabilities

   The interest rate profile of the Fund’s financial assets at 31 January 2011 and 31 January 2010 was:

                                    Total            Floating rate         Fixed rate      Financial assets
          Currency                                 financial assets     interest assets       on which no
                                                                                            interest is paid
          31/01/2011               £’000                £’000                 £’000              £’000
          UK Sterling                212                    -                     -                212
          Total                      212                    -                     -                212
          31/01/2010               £’000                £’000                 £’000              £’000
          UK Sterling             79,194                  712                     -             78,482
          US Dollar               11,674                    -                     -             11,674
          Total                   90,868                  712                     -             90,156

   The floating rate financial assets earn interest which is based on the London Inter Bank Offer Rate (LIBOR).

   Financial assets on which no interest is paid in both periods comprised equity collective investment schemes that
   have no maturity date and short term debtors and creditors.




Page 42
                                                                      Multi Manager Balanced Fund
The interest rate profile of the Fund’s financial liabilities at 31 January 2011 and 31 January 2010 was:

                                    Total         Floating rate         Fixed rate            Financial
    Currency                                        financial            interest           liabilities on
                                                    liabilities         liabilities           which no
                                                                                          interest is paid
    31/01/2011                      £’000            £’000                £’000                 £’000
    UK Sterling                       212              157                    -                      55
    Total                             212              157                    -                      55
    31/01/2010                      £’000            £’000                £’000                 £’000
    UK Sterling                     2,294              321                    -                 1,973
    Total                           2,294              321                    -                 1,973

The floating rate financial liabilities include a Sterling denominated overdraft that in both periods bore interest
based on the London Inter Bank Offer Rate (LIBOR).

Maturity of financial liabilities

The financial liabilities of the Fund as at 31 January 2011 are payable either within one year or on demand, as
were the financial liabilities of the previous year ended 31 January 2010.

Fair values of financial assets and liabilities

There is no material difference between the value of the financial assets and liabilities, as shown in the balance
sheet and their fair value.




                                                                                                             Page 43
Multi Manager Balanced Fund

Distribution table
for the period from 1 August 2010 to 9 December 2010
                                                      Net revenue    Equalisation    Distribution   Distribution
                                                                                       payable         paid*

                                                                                      09/02/2011     31/03/2010
                                                       pence per       pence per      pence per      pence per
                                                         share           share          share          share

09/12/2010   Group 1: Shares purchased prior to 1 August 2010.
             Group 2: Shares purchased from 1 August 2010 to 9 December 2010.

Class 1      Income

Group 1                                                  0.9070             -           0.9070         1.5550
Group 2                                                  0.4217          0.4853         0.9070         1.5550

Class 1      Accumulation

Group 1                                                  1.1650             -           1.1650         1.8731
Group 2                                                  0.1699          0.9951         1.1650         1.8731

Class 2      Accumulation

Group 1                                                  0.5489             -           0.5489         1.5173
Group 2                                                  0.5489          0.0000         0.5489         1.5173

Class 4      Accumulation

Group 1                                                   1.0469            -           1.0469          1.6757
Group 2                                                   0.5228         0.5241         1.0469          1.6757
These amounts do not include any transactions related to the scheme of arrangement, details of which can be found
on page 3.

* The Fund closed on 9 December 2010, the comparative relates to the period 1 August 2009 to 31 January 2010.




Page 44
                                                                    Multi Manager Balanced Fund

Distribution table
for the period from 1 February 2010 to 31 July 2010
                                                     Net revenue    Equalisation   Distribution   Distribution
                                                                                       paid           paid

                                                                                   30/09/2010     30/09/2009
                                                      pence per      pence per     pence per      pence per
                                                        share          share         share          share

31/07/2010   Group 1: Shares purchased prior to 1 February 2010.
             Group 2: Shares purchased from 1 February 2010 to 31 July 2010.

Class 1      Income

Group 1                                                 1.4734            -          1.4734         1.8229
Group 2                                                 0.8526         0.6208        1.4734         1.8229

Class 1      Accumulation

Group 1                                                 1.7927            -          1.7927         2.1862
Group 2                                                 0.8703         0.9224        1.7927         2.1862

Class 2      Accumulation

Group 1                                                 1.3729            -          1.3729         1.7839
Group 2                                                 1.3729         0.0000        1.3729         1.7839

Class 4      Accumulation

Group 1                                                 1.6129            -          1.6129         1.8814
Group 2                                                 1.6129         0.0000        1.6129         1.8814




                                                                                                      Page 45
Multi Manager Balanced Fund
CORPORATE SHAREHOLDERS

   Dividend distribution

   A shareholder liable to UK corporation tax receives these income distributions and associated tax credits as
   franked investment income to the extent that the gross revenue from which the distributions are made is itself
   franked investment income.

   Where the gross revenue from which the distributions are made is not wholly franked investment income, part of
   the distributions are received as an annual payment from which income tax at the lower rate is deemed to have
   been deducted. A shareholder liable to UK corporation tax receives these distributions, excluding equalisation, as
   follows;

                     Date           Share Class                  Franked                 Unfranked
                                                               Investment               Investment
                                                                 Income*                 Income**
                                                                    (%)                     (%)
                  09/12/2010        1 – Income                     76.56                   23.44
                                    1 – Accumulation               76.56                   23.44
                                    2 – Accumulation               76.56                   23.44
                                    4 – Accumulation               76.56                   23.44
                  31/07/2010        1 – Income                     66.66                   33.34
                                    1 – Accumulation               66.66                   33.34
                                    2 – Accumulation               66.66                   33.34
                                    4 – Accumulation               66.66                   33.34

  * Proportion of the total income distribution, excluding equalisation, together with the tax credit, which is received as
    franked investment income.

 ** Proportion of the total income distribution, excluding equalisation, which is deemed to be received as an annual
    payment after deduction of income tax at the lower rate and is liable to corporation tax. It is not franked
    investment income.




Page 46
                                                                          Multi Manager Cautious Fund

Authorised Corporate Director’s Investment Report
for the year ended 31 January 2011

Fund Objective
The Fund aims to provide an income with some potential for long-term capital growth through investment primarily in
collective investment schemes investing in equities and fixed-interest securities. Investment will usually be in
collective investment schemes operated by other fund managers. The Fund may also invest in collective schemes
managed by F&C and directly in equities, bonds, money market instruments, deposits, cash, warrants and investment
trusts.

Fund manager            Dean Cheeseman
Fund size               Nil
Launch date             9 February 2004

Market Review
Global equities traded higher in the period under review. Markets were boosted by signs of ongoing recovery in the
developed economies and by generally healthy company profits. This came despite the threat of a renewed financial
crisis in the eurozone. A forced €84 billion bail out of the Irish banking system and concerns that Spain may require
similar support led some commentators to question the future of the single currency project. Bonds made only modest
gains as investors focused on improving economic fundamentals and moved into riskier assets.

Activity
The fund invested European and Australian mortgage backed securities and we viewed it as an ideal complement to
existing fixed income holdings. We also added a new holding in Templeton Global Total Return as it invests globally
across the ratings spectrum and provided additional diversification to the portfolio. The purchase was partly funded by
a trimming of ‘absolute return’ exposure. In the US we sold down our S&P500 exchange traded fund to allow the
purchase of a new position in the Robecco US Premium Equities Fund. Later in the period we established a position
in Cazenove Strategic Bond – another fund exposed to corporate credit but with very little exposure to interest rates.
We also bought Aberdeen Emerging Markets, bringing our allocation to this asset class to neutral. We exited our
position in Celsius II Radar after the chief adviser on the product’s strategy was no longer associated with its
management. We sold Threadneedle UK Equity Alpha Income. Towards the end of the period we reorganised the
portfolio to reflect the preferred holdings of the Thames River Capital fund into which it is being merged. Thematic
positioning remained consistent, however, and we continued to focus on assets that would stand to benefit from
improving economic fundamentals.

Performance Summary
Over the period under review, the price of shares in the F&C Multi Manager Cautious Fund rose by 9.2%. This
compared to an IMA Cautious Managed sector median return of 8.2%. All returns in sterling and on a total return
basis.



F&C Fund Management Limited
28 February 2011




                                                                                                              Page 47
Multi Manager Cautious Fund

Comparative Table
Net Asset Value Record
Date                   Share Class         Total Net Asset Value   Shares in Issue      Total Net Asset Value
                                                                                              per Share
                                                   (£)                                            (p)
31 January 2009        1 – Income              8,522,473              22,547,350               37.80
                       1 – Accumulation       33,533,265              61,726,342               54.33
                       4 – Accumulation       42,949,696              74,880,291               57.36
31 January 2010        1 – Income              8,882,631              20,801,919               42.70
                       1 – Accumulation       35,077,259              55,055,300               63.71
                       4 – Accumulation       44,473,491              65,430,762               67.97
31 January 2011*       1 – Income                      -                       -                      -
                       1 – Accumulation                -                       -                      -
                       4 – Accumulation                -                       -                      -

All share classes were issued at launch.
* The Fund closed on 9 December 2010.

Performance Record
   Calendar Year       Share Class          Highest Share Price    Lowest Share Price      Distribution per
                                                                                                Share
                                                    (p)                   (p)                     (p)
       2006            1 – Income                 52.78                  49.23                 1.7523
                       1 – Accumulation           68.87                  62.71                 2.3783
                       4 – Accumulation           71.19                  64.22                 2.4563
       2007            1 – Income                 53.80                  49.36                 1.9827
                       1 – Accumulation           71.50                  66.89                 2.6955
                       4 – Accumulation           74.24                  69.63                 2.8287
       2008            1 – Income                 50.39                  37.19                 1.8913
                       1 – Accumulation           68.35                  52.10                 2.6400
                       4 – Accumulation           71.44                  54.89                 2.7762
       2009            1 – Income                 43.66                  35.78                 1.6362
                       1 – Accumulation           64.55                  51.39                 2.3927
                       4 – Accumulation           68.83                  54.35                 2.5250
       2010*           1 – Income                 46.61                  42.47                 1.4575
                       1 – Accumulation           70.85                  63.35                 2.2450
                       4 – Accumulation           76.22                  67.63                 2.4380
       2011*           1 – Income                     -                       -                       -
                       1 – Accumulation               -                       -                       -
                       4 – Accumulation               -                       -                       -

* The Fund closed on 9 December 2010.

Past performance is not necessarily a guide to future performance. The price of shares, and the revenue from
them, may go down as well as up.




Page 48
                                                                       Multi Manager Cautious Fund

Total Expense Ratio
Date                      Share Class                  Total Expense Ratio
                                                               (%)
31 January 2010           1 – Income                           2.18
                          1 – Accumulation                     2.10
                          4 – Accumulation                     0.80
31 January 2011*          1 – Income                             -
                          1 – Accumulation                       -
                          4 – Accumulation                       -

* The Fund closed on 9 December 2010. No Total Expense Ratio has been calculated for the financial year.




                                                                                                           Page 49
Multi Manager Cautious Fund

Portfolio Movements
for the year ended 31 January 2011
Purchases                                                                               Note                Cost
                                                                                                           £’000

Cazenove Strategic Bond 'X' (Income)                                                                       6,232
Cazenove European 'X' (Accumulation)                                                                       4,717
J O Hambro Continental European Institutional GBP (Income)                                                 4,448
Robeco US Premium Equities IE GBP (Income)                                                                 4,337
Schroder Asian Total Return 'C' (Income)                                                                   4,120
Franklin Templeton Global Total Return 'I' (Income)                                                        4,010
AEGON High Yield Bond 'B' (Income)                                                                         3,679
J O Hambro UK Growth Institutional GBP                                                                     3,275
River & Mercantile UK Equity Income 'B' (Income)                                                           3,195
Henderson Global Investors Strategic Bond 'I' (Accumulation)                                               3,062

Other purchases                                                                                           42,570

Total for the year                                                                        9               83,645



Sales                                                                                   Note          Proceeds
                                                                                                          £’000

SPDR Trust S&P500                                                                                          7,725
Invesco Perpetual Corporate Bond (Income)                                                                  6,235
Neptune Income 'B' (Income)                                                                                5,637
Fidelity Strategic Bond (Income)                                                                           5,495
Veritas Asian 'A' GBP (Income)                                                                             4,836
Cazenove European 'X' (Accumulation)                                                                       4,784
Fidelity US High Yield GBP                                                                                 4,403
Ignis Argonaut European Income 'I' (Income)                                                                4,224
M&G Strategic Corporate Bond 'A' (Income)                                                                  4,045
Threadneedle UK Equity Alpha Institutional (Income)                                                        4,006

Other sales                                                                                              48,829

Total for the year                                                                        9             100,219

These amounts do not include any transactions related to the scheme of arrangement, details of which can be found
on page 3.

Notes to the financial statements are on pages 53 to 57.




Page 50
                                                                     Multi Manager Cautious Fund

Statement of Total Return
for the year ended 31 January 2011
                                                                          31/01/2011                 31/01/2010
                                                     Notes                     £’000                      £’000

Income
  Net capital gains                                        1                   7,246                     11,437
  Revenue                                                  2     2,579                      3,985

Expenses                                                   3     (532)                       (606)

Finance costs: Interest                                    5        (3)                        (8)

Net revenue before taxation                                      2,044                      3,371

Taxation                                                   4     (295)                       (543)

Net revenue after taxation                                                     1,749                      2,828

Total return before distributions                                              8,995                     14,265

Finance costs: Distributions                               5                 (2,181)                     (3,287)

Change in net assets attributable to
shareholders from investment activities                                        6,814                     10,978


Statement of Change in Net Assets Attributable to Shareholders
for the year ended 31 January 2011
                                                                          31/01/2011                 31/01/2010
                                                                               £’000                      £’000

Opening net assets attributable to shareholders                               88,433                     85,005

Amounts transferred to Thames River Cautious Managed Fund                   (80,100)                           -

Amounts receivable on issue of shares                             3,626                      2,134
Amounts payable on cancellation of shares                      (20,688)                   (12,580)
                                                                            (17,062)                   (10,446)

Stamp duty reserve tax                                                          (15)                        (18)

Change in net assets attributable to shareholders
from investment activities (see above)                                         6,814                     10,978

Retained distributions on accumulation shares                                  1,925                      2,914

Amounts to be transferred from Thames River Cautious Managed Fund                  5                           -


Closing net assets attributable to shareholders                                     -                    88,433


On 24 November 2010 the Shareholders approved a scheme of arrangement to merge the Fund with the Thames
River Cautious Managed Fund.

The scheme of arrangement took effect on 10 December 2010 with the transfer of the assets and liabilities of the
Fund to the Thames River Cautious Managed Fund and the issue to Shareholders of shares in the Thames River
Cautious Managed Fund. All the shares in issue of the Fund were cancelled.

Notes to the financial statements are on pages 53 to 57.
                                                                                                       Page 51
Multi Manager Cautious Fund

Balance Sheet
as at 31 January 2011
                                                                    31/01/2011           31/01/2010
                                                     Notes               £’000                £’000

ASSETS

Investment assets                                                            -              87,452

Debtors                                                7     103                  531
Cash and bank balances                                         -                  822

Total other assets                                                        103                1,353


Total assets                                                              103               88,805



LIABILITIES

Creditors                                              8     (39)                (210)
Bank overdrafts                                              (39)                 (81)
Distribution payable on income shares                        (25)                 (81)

Total liabilities                                                        (103)                (372)


Net assets attributable to shareholders                                      -              88,433



Notes to the financial statements are on pages 53 to 57.




Page 52
                                                                    Multi Manager Cautious Fund

Notes to the Financial Statements
1. NET CAPITAL GAINS                                                     31/01/2011     31/01/2010
                                                                              £’000          £’000
  The net capital gains during the year comprise:

  Non-derivative securities                                                  7,115         11,571
  Derivative contracts                                                            -         (339)
  Currency gains                                                                31             61
  Rebate of capital management fees from underlying investments                108            150
  Transaction charges                                                           (8)            (6)
  Net capital gains                                                          7,246         11,437

2. REVENUE

  Interest distributions                                                     1,175          1,841
  Franked component of dividend distributions                                  596            546
  Offshore investment companies                                                595            415
  Rebate of revenue management fees from underlying investments                121            164
  Unfranked component of dividend distributions                                 52            690
  Overseas dividends                                                            22            315
  Bank interest                                                                 18             14
                                                                             2,579          3,985

3. EXPENSES

  Payable to the Authorised Corporate Director, associates of the
  Authorised Corporate Director, and agents of either of them:
  Authorised Corporate Director's periodic charge                              470            536

  Payable to the Depositary, associates of the Depositary
  and agents of either of them:
  Depositary's fee                                                              11             12
  Safe custody fees                                                              1              2
                                                                                12             14

  Other expenses:
  Accounting & administration fees                                              17             18
  Registrar's fees                                                              14             16
  Administration costs                                                           9             10
  Audit fee                                                                      7              8
  European Savings Directive fees                                                2              2
  Report & accounts printing costs                                               1              2
                                                                                50             56
  Total expenses (including VAT where appropriate)                             532            606




                                                                                          Page 53
Multi Manager Cautious Fund
4. TAXATION                                                                     31/01/2011              31/01/2010
                                                                                     £’000                   £’000
a) Analysis of charge in the year
   Corporation tax                                                                      292                       527
   Overseas tax suffered                                                                  3                        16
   Total taxation                                                                       295                       543

b) Factors affecting current tax charge for year
   The tax assessed for the year is lower than the standard rate of corporation tax in the UK for an Open Ended
   Investment Company (OEIC) of 20%. The differences are explained below:

   Net revenue before taxation                                                        2,044                   3,371

   Corporation tax at 20% (2010: 20%)                                                   409                       674

   Effects of:
   Franked component of dividend income not subject to corporation tax                (119)                   (109)
   Overseas and offshore dividends not subject to corporation tax                      (19)                    (68)
   Irrecoverable overseas tax                                                             3                      16
   Capital taxable revenue not included in total revenue                                 21                      30
   Current tax charge (note 4a)                                                         295                     543

   Open Ended Investment Companies are exempt from tax on capital gains. Therefore, any capital return is not
   included in the above reconciliation.

5. FINANCE COSTS

   Distributions and interest
   The distributions take account of revenue received on the issue of shares and revenue deducted on the
   cancellation of shares and comprise:

   Interim dividend distributions                                                     2,129                   2,409
   Final dividend distribution                                                             -                    825
                                                                                      2,129                   3,234
   Revenue deducted on cancellation of shares                                             63                      66
   Revenue received on issue of shares                                                  (11)                    (13)
   Net distributions for the year                                                     2,181                   3,287

   Details of the distributions per share are set out in the distribution
   tables on pages 58 to 61.

   Interest                                                                               3                         8

   Total finance costs                                                                2,184                   3,295

6. MOVEMENT BETWEEN NET REVENUE AND DISTRIBUTIONS

   Net revenue after taxation                                                         1,749                   2,828
   ACD fees paid from capital                                                           470                     536
   Tax relief on net capital expenses                                                   (72)                    (77)
   Undistributed expense carried forward                                                  34                       -
                                                                                      2,181                   3,287




Page 54
                                                                        Multi Manager Cautious Fund
7. DEBTORS                                                                       31/01/2011           31/01/2010
                                                                                      £’000                £’000

   Accrued revenue                                                                       75                   368
   Accrued management fee rebates                                                        23                   161
   Amounts transferrable from Thames River Cautious Managed Fund                          5                     -
   Amounts receivable for issue of shares                                                 -                     2
                                                                                        103                   531

8. CREDITORS

   Corporation tax payable                                                               35                     9
   Accrued expenses                                                                       4                    14
   Amounts payable for cancellation of shares                                             -                   142
   Accrued Authorised Corporate Director’s periodic charge                                -                    45
                                                                                         39                   210

9. PORTFOLIO TRANSACTION COSTS

   Analysis of total purchase costs

   Purchases in the year before transaction costs                                    83,625                62,180

   Commissions                                                                           20                    22
   Gross purchases total                                                             83,645                62,202

   Analysis of total sales costs

   Gross sales before transaction costs                                             100,230                65,921

   Commissions                                                                           (9)                  (31)
   Taxes                                                                                 (2)                     -
   Total sales costs                                                                    (11)                  (31)
   Total sales net of transaction costs                                             100,219                65,890

10. CONTINGENT LIABILITIES

   There are no contingent liabilities or commitments outstanding as at the balance sheet date.

11. POST BALANCE SHEET EVENTS

   There were no material post balance sheet events which have a bearing on the understanding of the financial
   statements.

12. RELATED PARTY DISCLOSURE

   F&C Fund Management Limited, as Authorised Corporate Director (ACD), is a related party, and acts as principal
   in respect of all transactions of shares in the Company. The aggregate monies received through issue, and paid
   on cancellation, are disclosed in the Statement of Change in Net Assets Attributable to Shareholders.

   Amounts payable to F&C Fund Management Limited in respect of fund management are disclosed in note 3 and
   amounts due at the end of the year in note 8.

   The ACD is also the ACD or Manager for other authorised funds and those funds may invest in each other where
   this is within the investment objectives of the investing fund. Such transactions will be conducted on an arm’s
   length basis within the regulations and the terms of the prospectus.

   Revenue from related party investments held during the year was £nil (31/01/2010: £19,848).




                                                                                                         Page 55
Multi Manager Cautious Fund
13. SHAREHOLDERS’ FUNDS

    The Fund had two share classes: Class 1 (Retail) and Class 4 (Asset Manager). The ACD charge on each share
    class was as follows:

        Class 1:                       1.25%
        Class 4:                       nil

    The distribution per share class is given in the distribution tables on pages 58 to 61. All classes have the same
    rights on winding up.

14. FINANCIAL INSTRUMENTS

    The analyses and tables provided below refer to the narrative disclosure on ‘Financial Instrument Risks’ on page
    16.

    Currency exposures

    The Fund’s financial assets and liabilities are all denominated in Sterling. As a result, the Fund has no exposure
    to currency movements.

              Currency                                  Net foreign currency assets
                                                              as at 31/01/2011
                                         Monetary              Non-monetary
                                        exposures                Exposures                   Total
                                          £’000                     £’000                    £’000
              US Dollars                      -                          -                       -
              Currency                                  Net foreign currency assets
                                                              as at 31/01/2010
                                         Monetary              Non-monetary
                                        exposures                exposures                   Total
                                          £’000                     £’000                    £’000
              US Dollars                      -                     7,067                    7,067

Interest rate risk profile of financial assets and financial liabilities

    The interest rate profile of the Fund’s financial assets at 31 January 2011 and 31 January 2010 was:

                                      Total           Floating rate           Fixed rate     Financial assets
          Currency                                  financial assets       interest assets      on which no
                                                                                              interest is paid
          31/01/2011                 £’000                £’000                £’000               £’000
          UK Sterling                  103                    -                    -                 103
          Total                        103                    -                    -                 103
          31/01/2010                 £’000                £’000                £’000               £’000
          UK Sterling               81,738                  822                    -              80,916
          US Dollars                 7,067                    -                    -               7,067
          Total                     88,805                  822                    -              87,983

    The floating rate financial assets earn interest which is based on the London Inter Bank Offer Rate (LIBOR).

    Financial assets on which no interest is paid in both periods comprised collective investment schemes that have
    no maturity date and short term debtors and creditors.




Page 56
                                                                       Multi Manager Cautious Fund
The interest rate profile of the Fund’s financial liabilities at 31 January 2011 and 31 January 2010 was:

                                    Total         Floating rate         Fixed rate            Financial
    Currency                                        financial            interest           liabilities on
                                                    liabilities         liabilities           which no
                                                                                          interest is paid
    31/01/2011                      £’000            £’000                £’000                 £’000
    UK Sterling                       103               39                    -                      64
    Total                             103               39                    -                      64
    31/01/2010                      £’000            £’000                £’000                 £’000
    UK Sterling                       372               81                    -                    291
    Total                             372               81                    -                    291

The floating rate financial liabilities include a Sterling denominated overdraft that in both periods bore interest
based on the London Inter Bank Offer Rate (LIBOR).

Maturity of financial liabilities

The financial liabilities of the Fund as at 31 January 2011 are payable either within one year or on demand, as
were the financial liabilities of the previous year ended 31 January 2010.

Fair values of financial assets and liabilities

There is no material difference between the value of the financial assets and liabilities, as shown in the balance
sheet and their fair value.




                                                                                                             Page 57
Multi Manager Cautious Fund

Distribution table
for the period from 1 November 2010 to 9 December 2010
                                                      Net revenue    Equalisation   Distribution   Distribution
                                                                                      payable         paid*

                                                                                     09/02/2011     31/03/2010
                                                       pence per      pence per      pence per      pence per
                                                         share          share          share          share

09/12/2010   Group 1: Shares purchased prior to 1 November 2010.
             Group 2: Shares purchased from 1 November 2010 to 9 December 2010.

Class 1      Income

Group 1                                                 0.1637             -           0.1637         0.3917
Group 2                                                 0.0422          0.1215         0.1637         0.3917

Class 1      Accumulation

Group 1                                                 0.2616             -           0.2616         0.5915
Group 2                                                 0.1102          0.1514         0.2616         0.5915

Class 4      Accumulation

Group 1                                                 0.2851             -           0.2851         0.6378
Group 2                                                 0.1179          0.1672         0.2851         0.6378


* The Fund closed on 9 December 2010, the comparative relates to the period 1 November 2009 to 31 January 2010.




Page 58
                                                                    Multi Manager Cautious Fund

Distribution table
for the period from 1 August 2010 to 31 October 2010

                                                    Net revenue    Equalisation   Distribution   Distribution
                                                                                      paid           paid

                                                                                  31/12/2010     31/12/2009
                                                     pence per      pence per     pence per      pence per
                                                       share          share         share          share

31/10/2010   Group 1: Shares purchased prior to 1 August 2010.
             Group 2: Shares purchased from 1 August 2010 to 31 October 2010.

Class 1      Income

Group 1                                                0.2351            -          0.2351         0.3181
Group 2                                                0.0540         0.1811        0.2351         0.3181

Class 1      Accumulation

Group 1                                                0.3706            -          0.3706         0.4773
Group 2                                                0.1010         0.2696        0.3706         0.4773

Class 4      Accumulation

Group 1                                                0.4050            -          0.4050         0.5154
Group 2                                                0.0050         0.4000        0.4050         0.5154




                                                                                                     Page 59
Multi Manager Cautious Fund

Distribution table
for the period from 1 May 2010 to 31 July 2010

                                                     Net revenue   Equalisation   Distribution   Distribution
                                                                                      paid           paid

                                                                                  30/09/2010     30/09/2009
                                                      pence per      pence per    pence per      pence per
                                                        share          share        share          share

31/07/2010   Group 1: Shares purchased prior to 1 May 2010.
             Group 2: Shares purchased from 1 May 2010 to 31 July 2010.

Class 1      Income

Group 1                                                0.4208            -          0.4208         0.4721
Group 2                                                0.2171         0.2037        0.4208         0.4721

Class 1      Accumulation

Group 1                                                0.6416            -          0.6416         0.6941
Group 2                                                0.3047         0.3369        0.6416         0.6941

Class 4      Accumulation

Group 1                                                0.6958            -          0.6958         0.7413
Group 2                                                0.6958         0.0000        0.6958         0.7413




Page 60
                                                                     Multi Manager Cautious Fund

Distribution table
for the period from 1 February 2010 to 30 April 2010
                                                     Net revenue    Equalisation   Distribution   Distribution
                                                                                       paid           paid

                                                                                   30/06/2010     30/06/2009
                                                      pence per       pence per    pence per      pence per
                                                        share           share        share          share

30/04/2010   Group 1: Shares purchased prior to 1 February 2010.
             Group 2: Shares purchased from 1 February 2010 to 30 April 2010.

Class 1      Income

Group 1                                                 0.2462            -          0.2462         0.3058
Group 2                                                 0.0954         0.1508        0.2462         0.3058

Class 1      Accumulation

Group 1                                                 0.3797            -          0.3797         0.4465
Group 2                                                 0.1631         0.2166        0.3797         0.4465

Class 4      Accumulation

Group 1                                                 0.4143            -          0.4143         0.4765
Group 2                                                 0.4143         0.0000        0.4143         0.4765




                                                                                                      Page 61
Multi Manager Cautious Fund
CORPORATE SHAREHOLDERS

   Dividend distribution

   A shareholder liable to UK corporation tax receives these income distributions and associated tax credits as
   franked investment income to the extent that the gross revenue from which the distributions are made is itself
   franked investment income.

   Where the gross revenue from which the distributions are made is not wholly franked investment income, part of
   the distributions are received as an annual payment from which income tax at the lower rate is deemed to have
   been deducted. A shareholder liable to UK corporation tax receives these distributions, excluding equalisation, as
   follows;

                     Date           Share Class                  Franked                 Unfranked
                                                               Investment               Investment
                                                                 Income*                 Income**
                                                                    (%)                     (%)
                  09/12/2010        1 – Income                     28.68                   71.32
                                    1 – Accumulation               28.68                   71.32
                                    4 – Accumulation               28.68                   71.32
                  31/10/2010        1 – Income                     11.36                   88.64
                                    1 – Accumulation               11.36                   88.64
                                    4 – Accumulation               11.36                   88.64
                  31/07/2010        1 – Income                     83.41                   16.59
                                    1 – Accumulation               83.41                   16.59
                                    4 – Accumulation               83.41                   16.59
                  30/04/2010        1 – Income                     28.59                   71.41
                                    1 – Accumulation               28.59                   71.41
                                    4 – Accumulation               28.59                   71.41

  * Proportion of the total income distribution, excluding equalisation, together with the tax credit, which is received as
    franked investment income.

 ** Proportion of the total income distribution, excluding equalisation, which is deemed to be received as an annual
    payment after deduction of income tax at the lower rate and is liable to corporation tax. It is not franked
    investment income.




Page 62
                                                                       Multi Manager Distribution Fund

Authorised Corporate Director’s Investment Report
for the year ended 31 January 2011

Fund Objective
The Fund aims to provide a higher income with some potential for long-term capital growth through investment
primarily in collective investment schemes investing in equities and fixed interest securities while a proportion of the
Fund may have exposure to property securities. Investment exposure will usually be obtained through collective
investment schemes operated by other fund managers. The Fund may also invest in collective schemes managed by
F&C and directly in equities, bonds, money market instruments, deposits, cash, warrants and investment trusts.

Fund manager             Dean Cheeseman
Fund size                Nil
Launch date              9 February 2004

Market Review
Markets were boosted by signs of ongoing recovery in the developed economies and by generally healthy company
profits. This came despite the threat of a renewed financial crisis in the eurozone. A forced €84 billion bail out of the
Irish banking system and concerns that Spain may require similar support led some commentators to question the
future of the single currency project. Bonds made only modest gains as investors focused on improving economic
fundamentals and moved into riskier assets. The woes in the eurozone periphery led to yields rising sharply in non-
core economies. Equities were more buoyant, however, as confidence improved.

Activity
We established a position in Cazenove Strategic Bond – a fund exposed to corporate credit but with very little
exposure to interest rates. Its purchase sat well with our prevailing preference for investment grade bonds over
sovereign debt and our concern about the path of interest rates. To that end we also introduced Monument Bond
Fund was a new addition. The fund invested European and Australian mortgage backed securities and we viewed it
as an ideal complement to existing fixed income holdings. We exited our position in Celsius II Radar after the chief
adviser on the product’s strategy was no longer associated with its management. Schroder Corporate Bond was sold
after disappointing performance and we disposed of L&G UK Property as we looked to reduce exposure to alternative
investments. Towards the end of the period we reorganised the portfolio to reflect both the preferred holdings of the
Thames River Capital fund into which it is being merged and a higher yield target. Thematic positioning remained
consistent, however, and we continued to focus on assets that would stand to benefit from improving economic
fundamentals.

Performance Summary
Over the period under review, the price of shares in the F&C Multi Manager Distribution Fund rose by 8.0%. By
comparison, the median return in the IMA Cautious Managed sector was 8.2%. All returns in sterling and on a total
return basis.



F&C Fund Management Limited
28 February 2011




                                                                                                                Page 63
Multi Manager Distribution Fund

Comparative Table
Net Asset Value Record
Date                     Share Class           Total Net Asset Value   Shares in Issue      Total Net Asset
                                                                                            Value per Share
                                                         (£)                                      (p)
31 January 2009          1 – Income                 69,697,964           192,940,359             36.12
                         1 – Accumulation          117,081,049           260,194,536             45.00
                         2 – Income*                   781,240             2,098,798             37.22
                         4 – Income                 77,807,782           203,597,071             38.22
31 January 2010          1 – Income                 75,259,736           174,515,359             43.12
                         1 – Accumulation          115,415,300           206,706,386             55.84
                         4 – Income                 77,952,006           169,150,540             46.08
31 January 2011**        1 – Income                          -                     -                  -
                         1 – Accumulation                    -                     -                  -
                         4 – Income                          -                     -                  -

All share classes were issued at launch.
* Share Class 2 Income closed on 2 October 2009.
** The Fund closed on 9 December 2010.

Performance Record
   Calendar Year      Share Class            Highest Share Price   Lowest Share Price    Distribution per
                                                                                              Share
                                                     (p)                  (p)                   (p)
          2006        1 – Income                   61.99                 58.61               2.5278
                      1 – Accumulation             68.92                 62.75               2.7274
                      2 – Income                   62.94                 59.33               2.1037
                      4 – Income                   63.93                 60.14               2.5923
          2007        1 – Income                   62.62                 54.13               2.5898
                      1 – Accumulation             71.22                 63.04               2.9356
                      2 – Income                   63.93                 55.44               2.5055
                      4 – Income                   65.13                 56.64               2.7162
          2008        1 – Income                   55.07                 37.40               2.5224
                      1 – Accumulation             64.14                 45.47               2.9969
                      2 – Income                   56.39                 38.48               2.3270
                      4 – Income                   57.65                 39.49               2.6623
          2009        1 – Income                   43.95                 35.25               1.6853
                      1 – Accumulation             56.40                 43.90               2.1042
                      2 – Income*                  46.89                 30.38               0.3228
                      4 – Income                   46.95                 37.34               1.7744
          2010 **     1 – Income                   46.21                 42.63               1.8514
                      1 – Accumulation             61.29                 55.56               2.4195
                      4 – Income                   49.77                 45.76               2.0069
          2011 **     1 – Income                       -                      -                     -
                      1 – Accumulation                 -                      -                     -
                      4 – Income                       -                      -                     -

* Share Class 2 Income closed on 2 October 2009.
** The Fund closed on 9 December 2010.

Past performance is not necessarily a guide to future performance. The price of shares, and the revenue from
them, may go down as well as up.




Page 64
                                                                   Multi Manager Distribution Fund

Total Expense Ratio
Date                      Share Class                  Total Expense Ratio
                                                               (%)
31 January 2010           1 – Income                           1.97
                          1 – Accumulation                     1.96
                          4 – Income                           0.67
31 January 2011*          1 – Income                             -
                          1 – Accumulation                       -
                          4 – Income                             -

* The Fund closed on 9 December 2010. No Total Expense Ratio has been calculated for the financial year.




                                                                                                           Page 65
Multi Manager Distribution Fund

Portfolio Movements
for the year ended 31 January 2011
Purchases                                                                               Note                Cost
                                                                                                           £’000

Cazenove Strategic Bond 'X' (Income)                                                                      18,454
PIMCO Global High Yield Bond Institutional GBP (Hedged) (Income)                                          17,908
Artemis High Income 'R' (Income)                                                                          17,812
†Traditional Thames River High (Income)                                                                   17,808
Legg Mason US High Yield Bond                                                                             16,167
Lazard Global Equity Fund (Income)                                                                        12,554
Aegon High Yield Bond (Income)                                                                            12,080
Investec Global Strategy (Income)                                                                         11,987
J O Hambro UK Equity Fund (Income)                                                                        10,989
Fidelity US High Yield Fund 'A' GBP (Income)                                                               8,999

Other purchases                                                                                           68,048

Total for the year                                                                        9             212,806



Sales                                                                                   Note          Proceeds
                                                                                                          £’000

Schroders UK Alpha Plus 'A' (Income)                                                                     19,426
Fidelity US High Yield Fund 'A' GBP (Income)                                                             18,451
Scottish Widows Investment Partnership Property Trust (Income)                                           15,476
Legal & General Dynamic Bond 'I' (Income)                                                                14,805
Invesco Perpetual Corporate Bond (Income)                                                                14,371
Barclays Bank FRN Index Linked 2012                                                                      13,470
Fidelity Sterling Bond (Income)                                                                          13,272
Invesco Perpetual High Income (Accumulation)                                                             13,150
Rensburg UK Equity Income (Income)                                                                       12,603
Threadneedle UK Equity Alpha Institutional (Income)                                                      12,444

Other sales                                                                                             103,811

Total for the year                                                                        9             251,279

† This holding is deemed to be an investment in a related party of the ACD.

These amounts do not include any transactions related to the scheme of arrangement, details of which can be found
on page 3.

Notes to the financial statements are on pages 69 to 73.




Page 66
                                                                   Multi Manager Distribution Fund

Statement of Total Return
for the year ended 31 January 2011
                                                                            31/01/2011                  31/01/2010
                                                     Notes                       £’000                       £’000
Income
  Net capital gains                                        1                    14,039                      48,880
  Revenue                                                  2      10,046                      12,718

Expenses                                                   3     (2,139)                     (2,528)

Finance costs: Interest                                    5          (5)                         (9)

Net revenue before taxation                                        7,902                      10,181

Taxation                                                   4       (986)                     (1,663)

Net revenue after taxation                                                       6,916                       8,518

Total return before distributions                                               20,955                      57,398

Finance costs: Distributions                               5                    (8,587)                   (10,487)

Change in net assets attributable to
shareholders from investment activities                                         12,368                      46,911


Statement of Change in Net Assets Attributable to Shareholders
for the year ended 31 January 2011
                                                                            31/01/2011                  31/01/2010
                                                                                 £’000                       £’000

Opening net assets attributable to shareholders                                268,627                    265,368

Amounts transferred to Thames River Distribution Fund                        (241,688)                            -

Amounts receivable on issue of shares                              9,829                       5,293
Amounts payable on cancellation of shares                       (52,568)                    (53,252)
                                                                              (42,739)                    (47,959)

Stamp duty reserve tax                                                             (46)                       (51)

Change in net assets attributable to shareholders
from investment activities (see above)                                          12,368                      46,911

Retained distributions on accumulation shares                                    3,502                       4,358

Amounts to be transferred to Thames River Distribution Fund                        (24)                           -


Closing net assets attributable to shareholders                                       -                   268,627


On 24 November 2010 the Shareholders approved a scheme of arrangement to merge the Fund with the Thames
River Distribution Fund.

The scheme of arrangement took effect on 10 December 2010 with the transfer of the assets and liabilities of the
Fund to the Thames River Distribution Fund and the issue to Shareholders of shares in the Thames River Distribution
Fund. All the shares in issue of the Fund were cancelled.

Notes to the financial statements are on pages 69 to 73.
                                                                                                          Page 67
Multi Manager Distribution Fund

Balance Sheet
as at 31 January 2011
                                                                     31/01/2011             31/01/2010
                                                     Notes                £’000                  £’000

ASSETS

Investment assets                                                             -               263,258

Debtors                                                7      187                  8,152
Cash and bank balances                                        591                  4,402

Total other assets                                                         778                 12,554


Total assets                                                               778                275,812



LIABILITIES

Creditors                                              8     (181)                (4,535)
Bank overdrafts                                                  -                (1,271)
Distribution payable on income shares                        (597)                (1,379)

Total liabilities                                                         (778)                (7,185)


Net assets attributable to shareholders                                       -               268,627



Notes to the financial statements are on pages 69 to 73.




Page 68
                                                                  Multi Manager Distribution Fund

Notes to the Financial Statements
1. NET CAPITAL GAINS                                                      31/01/2011     31/01/2010
                                                                               £’000          £’000
  The net capital gains during the year comprise:

  Non-derivative securities                                                  13,946         49,139
  Derivative contracts                                                             -         (772)
  Currency losses                                                             (299)             (2)
  Rebate of capital management fees from underlying investments                 402            524
  Transaction charges                                                           (10)            (9)
  Net capital gains                                                          14,039         48,880


2. REVENUE

  Interest distributions                                                      3,398          6,302
  Franked component of dividend distributions                                 2,885          1,968
  Offshore investment companies                                               2,116          1,350
  Interest on debt securities                                                   951            941
  Rebate of revenue management fees from underlying investments                 364            475
  Unfranked component of dividend distributions                                 290          1,649
  Bank interest                                                                  42             33
                                                                             10,046         12,718

3. EXPENSES

  Payable to the Authorised Corporate Director, associates of the
  Authorised Corporate Director, and agents of either of them:
  Authorised Corporate Director's periodic charge                             1,972          2,332

  Payable to the Depositary, associates of the Depositary
  and agents of either of them:
  Depositary's fee                                                               27             31
  Safe custody fees                                                               5              7
                                                                                 32             38

  Other expenses:
  Registrar's fees                                                               77             90
  Accounting & administration fees                                               31             42
  Administration costs                                                            9             10
  Price publication costs                                                         8              3
  Audit fee                                                                       7              8
  European Savings Directive fees                                                 2              2
  Report & accounts printing costs                                                1              3
                                                                                135            158
  Total expenses (including VAT where appropriate)                            2,139          2,528




                                                                                           Page 69
Multi Manager Distribution Fund
4. TAXATION                                                                  31/01/2011             31/01/2010
                                                                                  £’000                  £’000
a) Analysis of charge in the year
   Corporation tax                                                                  986                  1,712
   Total current tax (note 4b)                                                      986                  1,712
   Deferred tax (note 4c)                                                             -                    (49)
   Total taxation                                                                   986                  1,663

b) Factors affecting current tax charge for year
   The tax assessed for the year is lower than the standard rate of corporation tax in the UK for an Open Ended
   Investment Company (OEIC) of 20%. The differences are explained below:

   Net revenue before taxation                                                    7,902                 10,181

   Corporation tax at 20% (2010: 20%)                                             1,580                  2,036

   Effects of:
   Franked component of dividend income not subject to corporation tax            (577)                  (394)
   Offshore dividends not subject to corporation tax                               (97)                    (84)
   Revenue taxable in different periods                                               -                      49
   Capital taxable revenue not included in total revenue                             80                    105
   Current tax charge (note 4a)                                                     986                  1,712

   Open Ended Investment Companies are exempt from tax on capital gains. Therefore, any capital return is not
   included in the above reconciliation.

 c) Deferred tax
    Provision at start of year                                                         -                     49
    Deferred tax credit in profit and loss account for period (note 4a)                -                   (49)
    Provision at end of year                                                           -                      -




Page 70
                                                                       Multi Manager Distribution Fund
5. FINANCE COSTS                                                               31/01/2011            31/01/2010
                                                                                    £’000                 £’000
  Distributions and interest
  The distributions take account of revenue received on the issue of shares and revenue deducted on the
  cancellation of shares and comprise:

  Interim dividend distributions                                                   8,359                    7,766
  Final dividend distributions                                                          -                   2,404
                                                                                   8,359                   10,170
  Revenue deducted on cancellation of shares                                         268                      347
  Revenue received on issue of shares                                                (40)                     (30)
  Net distributions for the year                                                   8,587                   10,487

  Details of the distributions per share are set out in the distribution
  tables on pages 74 to 77.

  Interest                                                                              5                       9

  Total finance costs                                                               8,592                  10,496

6. MOVEMENT BETWEEN NET REVENUE AND DISTRIBUTIONS

  Net revenue after taxation                                                       6,916                    8,518
  ACD fees paid from capital                                                       1,972                    2,332
  Tax relief on net capital expenses                                               (314)                    (362)
  Undistributed revenue brought forward                                                1                         -
  Undistributed revenue carried forward                                               12                       (1)
                                                                                   8,587                   10,487

7. DEBTORS

  Accrued management fee rebates                                                     187                      488
  Sales awaiting settlement                                                            -                    6,401
  Accrued revenue                                                                      -                    1,065
  Amounts receivable for issue of shares                                               -                      196
  Prepaid expenses                                                                     -                        2
                                                                                     187                    8,152

8. CREDITORS

  Corporation tax payable                                                            147                       28
  Amounts due to Thames River Distribution Fund                                       24                        -
  Accrued expenses                                                                    10                       26
  Purchases awaiting settlement                                                        -                    3,649
  Amounts payable for cancellation of shares                                           -                      635
  Accrued Authorised Corporate Director’s periodic charge                              -                      197
                                                                                     181                    4,535




                                                                                                          Page 71
Multi Manager Distribution Fund
9. PORTFOLIO TRANSACTION COSTS                                                   31/01/2011             31/01/2010
                                                                                      £’000                  £’000
   Analysis of total purchase costs

   Purchases in the year before transaction costs                                   212,780                154,754

   Commissions                                                                           26                     56
   Gross purchases total                                                            212,806                154,810

   Analysis of total sales costs

   Gross sales before transaction costs                                             251,291                190,976

   Commissions                                                                          (12)                   (62)
   Total sales net of transaction costs                                             251,279                190,914

10. CONTINGENT LIABILITIES

   There are no contingent liabilities or commitments outstanding as at the balance sheet date.

11. POST BALANCE SHEET EVENTS

   There were no material post balance sheet events which have a bearing on the understanding of the financial
   statements.

12. RELATED PARTY DISCLOSURE

   F&C Fund Management Limited, as Authorised Corporate Director (ACD), is a related party, and acts as principal
   in respect of all transactions of shares in the Company. The aggregate monies received through issue, and paid
   on cancellation, are disclosed in the Statement of Change in Net Assets Attributable to Shareholders.

   Amounts payable to F&C Fund Management Limited in respect of fund management are disclosed in note 3 and
   amounts due at the end of the year in note 8.

   The ACD is also the ACD or Manager for other authorised funds and those funds may invest in each other where
   this is within the investment objectives of the investing fund. Such transactions will be conducted on an arm’s
   length basis within the regulations and the terms of the prospectus. No such transactions were entered into
   during the current year.


13. SHAREHOLDERS’ FUNDS

   The Fund had three share classes: Class 1 (Retail), Class 2 (Institutional) and Class 4 (Asset Manager). The
   ACD charge on each share class was as follows:

      Class 1                         1.25%
      Class 2:                        0.65%
      Class 4:                        nil


   The distribution per share class is given in the distribution tables on pages 74 to 77. All classes have the same
   rights on winding up.




Page 72
                                                                        Multi Manager Distribution Fund
14. FINANCIAL INSTRUMENTS

   The analyses and tables provided below refer to the narrative disclosure on ‘Financial Instrument Risks’ on page
   16.

   Currency exposures

   The Fund’s financial assets and liabilities are all denominated in Sterling. As a result, the Fund has no exposure
   to currency movements.

   Interest rate risk

   Interest rate risk profile of financial assets and financial liabilities

   The interest rate profile of the Fund’s financial assets at 31 January 2011 and 31 January 2010 was:

                                       Total           Floating rate        Fixed rate      Financial assets
       Currency                                      financial assets    interest assets       on which no
                                                                                             interest is paid
       31/01/2011                  £’000                 £’000                  £’000             £’000
       UK Sterling                   778                   591                      -               187
       Total                         778                   591                      -               187
       31/01/2010                  £’000                 £’000                  £’000             £’000
       UK Sterling               275,812                18,609                      -           257,203
       Total                     275,812                18,609                      -           257,203

   The floating rate financial assets earn interest which is based on the London Inter Bank Offer Rate (LIBOR).

   Financial assets on which no interest is paid in both periods comprised collective investment schemes that have
   no maturity date and short term debtors and creditors.

   The interest rate profile of the Fund’s financial liabilities at 31 January 2011 and 31 January 2010 was:

                                       Total          Floating rate           Fixed rate         Financial
       Currency                                         financial              interest        liabilities on
                                                        liabilities           liabilities        which no
                                                                                             interest is paid
       31/01/2011                      £’000             £’000                  £’000              £’000
       UK Sterling                       778                 -                      -                 778
       Total                             778                 -                      -                 778
       31/01/2010                      £’000             £’000                  £’000              £’000
       UK Sterling                     7,185             1,271                      -              5,914
       Total                           7,185             1,271                      -              5,914

   The floating rate financial liabilities include a Sterling denominated overdraft that in the previous period bore
   interest based on the London Inter Bank Offer Rate (LIBOR).

   Maturity of financial liabilities

   The financial liabilities of the Fund as at 31 January 2011 are payable either within one year or on demand, as
   were the financial liabilities of the previous year ended 31 January 2010.

   Fair values of financial assets and liabilities

   There is no material difference between the value of the financial assets and liabilities, as shown in the balance
   sheet and their fair value.




                                                                                                                Page 73
Multi Manager Distribution Fund

Distribution table
for the period from 1 November 2010 to 9 December 2010
                                                      Net revenue    Equalisation   Distribution   Distribution
                                                                                      payable         paid*

                                                                                     09/02/2011     31/03/2010
                                                       pence per      pence per      pence per      pence per
                                                         share          share          share          share

09/12/2010   Group 1: Shares purchased prior to 1 November 2010.
             Group 2: Shares purchased from 1 November 2010 to 9 December 2010.

Class 1      Income

Group 1                                                 0.1927             -           0.1927         0.3870
Group 2                                                 0.0352          0.1575         0.1927         0.3870

Class 1      Accumulation

Group 1                                                 0.2581             -           0.2581         0.4958
Group 2                                                 0.0553          0.2028         0.2581         0.4958

Class 4      Income

Group 1                                                 0.2102             -           0.2102         0.4158
Group 2                                                 0.2102          0.0000         0.2102         0.4158


* The Fund closed on 9 December 2010, the comparative relates to the period 1 November 2009 to 31 January 2010.




Page 74
                                                                 Multi Manager Distribution Fund

Distribution table
for the period from 1 August 2010 to 31 October 2010
                                                    Net revenue    Equalisation   Distribution   Distribution
                                                                                      paid           paid

                                                                                  31/12/2010     31/12/2009
                                                     pence per      pence per     pence per      pence per
                                                       share          share         share          share

31/10/2010   Group 1: Shares purchased prior to 1 August 2010.
             Group 2: Shares purchased from 1 August 2010 to 31 October 2010.

Class 1      Income

Group 1                                                0.4225            -          0.4225         0.3536
Group 2                                                0.1377         0.2848        0.4225         0.3536

Class 1      Accumulation

Group 1                                                0.5614            -          0.5614         0.4531
Group 2                                                0.1387         0.4227        0.5614         0.4531

Class 4      Income

Group 1                                                0.4610            -          0.4610         0.3825
Group 2                                                0.0000         0.4610        0.4610         0.3825




                                                                                                     Page 75
Multi Manager Distribution Fund

Distribution table
for the period from 1 May 2010 to 31 July 2010
                                                     Net revenue   Equalisation   Distribution   Distribution
                                                                                      paid           paid

                                                                                  30/09/2010     30/09/2009
                                                      pence per      pence per    pence per      pence per
                                                        share          share        share          share

31/07/2010   Group 1: Shares purchased prior to 1 May 2010.
             Group 2: Shares purchased from 1 May 2010 to 31 July 2010.

Class 1      Income

Group 1                                                0.5022            -          0.5022         0.5008
Group 2                                                0.2115         0.2907        0.5022         0.5008

Class 1      Accumulation

Group 1                                                0.6557            -          0.6557         0.6281
Group 2                                                0.3396         0.3161        0.6557         0.6281

Class 4      Income

Group 1                                                0.5440            -          0.5440         0.5354
Group 2                                                0.5440         0.0000        0.5440         0.5354




Page 76
                                                                  Multi Manager Distribution Fund

Distribution table
for the period from 1 February 2010 to 30 April 2010
                                                     Net revenue    Equalisation   Distribution   Distribution
                                                                                       paid           paid

                                                                                   30/06/2010     30/06/2009
                                                      pence per       pence per    pence per      pence per
                                                        share           share        share          share

30/04/2010   Group 1: Shares purchased prior to 1 February 2010.
             Group 2: Shares purchased from 1 February 2010 to 30 April 2010.

Class 1      Income

Group 1                                                 0.3470            -          0.3470         0.3244
Group 2                                                 0.1462         0.2008        0.3470         0.3244

Class 1      Accumulation

Group 1                                                 0.4485            -          0.4485         0.4022
Group 2                                                 0.2035         0.2450        0.4485         0.4022

Class 4      Income

Group 1                                                 0.3759            -          0.3759         0.3451
Group 2                                                 0.0766         0.2993        0.3759         0.3451




                                                                                                      Page 77
Multi Manager Distribution Fund
CORPORATE SHAREHOLDERS

   Dividend distribution

   A shareholder liable to UK corporation tax receives these income distributions and associated tax credits as
   franked investment income to the extent that the gross revenue from which the distributions are made is itself
   franked investment income.

   Where the gross revenue from which the distributions are made is not wholly franked investment income, part of
   the distributions are received as an annual payment from which income tax at the lower rate is deemed to have
   been deducted. A shareholder liable to UK corporation tax receives these distributions, excluding equalisation, as
   follows;

                     Date           Share Class                  Franked                 Unfranked
                                                               Investment               Investment
                                                                 Income*                 Income**
                                                                    (%)                     (%)
                  09/12/2010        1 – Income                     81.12                   18.88
                                    1 – Accumulation               81.12                   18.88
                                    4 – Income                     81.12                   18.88
                  31/10/2010        1 – Income                     29.14                   70.86
                                    1 – Accumulation               29.14                   70.86
                                    4 – Income                     29.14                   70.86
                  31/07/2010        1 – Income                     73.38                   26.62
                                    1 – Accumulation               73.38                   26.62
                                    4 – Income                     73.38                   26.62
                  30/04/2010        1 – Income                     30.93                   69.07
                                    1 – Accumulation               30.93                   69.07
                                    4 – Income                     30.93                   69.07

  * Proportion of the total income distribution, excluding equalisation, together with the tax credit, which is received as
    franked investment income.

 ** Proportion of the total income distribution, excluding equalisation, which is deemed to be received as an annual
    payment after deduction of income tax at the lower rate and is liable to corporation tax. It is not franked
    investment income.




Page 78
                                                                            Multi Manager Growth Fund

Authorised Corporate Director’s Investment Report
for the year ended 31 January 2011

Fund Objective
The Fund aims to achieve medium to long-term capital growth through investment in a selected portfolio of shares in
other authorised collective investment schemes. The portfolio will usually consist of shares in other F&C collective
investment schemes in the categories of securities funds, securities companies and money market schemes covering
a wide spread of domestic and international equity and fixed interest assets, including an element of currency
exposure.

Funds manager           Dean Cheeseman
Fund size               Nil
Launch date             19 September 2002
Initial launch date     1 February 1993

Market Review
Global equities traded higher in the period under review. Markets were boosted by signs of ongoing recovery in the
developed economies and by generally healthy company profits. This came despite the threat of a renewed financial
crisis in the eurozone. A forced €84 billion bail out of the Irish banking system and concerns that Spain may require
similar support led some commentators to question the future of the single currency project. Bonds made only modest
gains as investors focused on improving economic fundamentals and moved into riskier assets.

Activity
We decided to hedge out some of the equity market exposure when protection became cheap and invested into a
certificate linked to BNP Vol Edge, although we later sold the holding post a significant fall in the market. In the US
we trimmed our S&P500 ETF to fund the purchase of a new position in the Robecco US Premium Equities Fund. Its
purchase sits well with our relatively upbeat assessment of the outlook for the US and its equity markets – a view that
means we are happy to introduce a fund with some small and mid cap exposure. Towards the end of the period we
reorganised the portfolio to reflect the preferred holdings of the Thames River Capital fund into which it is being
merged. The Fund moved from a mixed asset class strategy to a managed equity strategy. Thematic positioning
remained consistent, however, and we continued to focus on assets that would stand to benefit from improving
economic fundamentals.

Performance Summary
Over the period under review, the price of shares in the F&C Multi Manager Growth Fund rose by 17.2%. This
compared to an IMA Active Managed median return of 14.7%. All returns in sterling and on a total return basis.



F&C Fund Management Limited
28 February 2011




                                                                                                              Page 79
Multi Manager Growth Fund

Comparative Table
Net Asset Value Record
Date                  Share Class             Total Net Asset Value     Shares in Issue       Total Net Asset
                                                                                              Value per Share
                                                       (£)                                          (p)
31 January 2009       1 – Accumulation            61,197,475               33,459,071              182.9
                      4 – Accumulation            53,373,932               27,090,671              197.0
31 January 2010       1 – Accumulation            66,661,865               30,373,731              219.5
                      4 – Accumulation            57,552,353               24,178,054              238.0
31 January 2011*      1 – Accumulation                     -                        -                   -
                      4 – Accumulation                     -                        -                   -

All share classes were issued at launch
* The Fund closed on 9 December 2010.

Performance Record
   Calendar Year      Share Class             Highest Share Price     Lowest Share Price      Distribution per
                                                                                                   Share
                                                       (p)                    (p)                    (p)
          2006        1 – Accumulation               235.4                   202.4                0.2916
                      4 – Accumulation               249.1                   212.8                2.9201
          2007        1 – Accumulation               256.7                   228.3                0.4894
                      4 – Accumulation               273.7                   243.4                3.7093
          2008        1 – Accumulation               248.1                   164.9                1.6853
                      4 – Accumulation               265.4                   177.7                4.4491
          2009        1 – Accumulation               227.9                   164.3                3.9191
                      4 – Accumulation               247.1                   177.1                5.6263
          2010*       1 – Accumulation               257.2                   217.2                3.1289
                      4 – Accumulation               281.9                   235.7                7.5020
          2011*       1 – Accumulation                   -                        -                      -
                      4 – Accumulation                   -                        -                      -

* The Fund closed on 9 December 2010.

Past performance is not necessarily a guide to future performance. The price of shares, and the revenue from
them, may go down as well as up.

Total Expense Ratio
Date                      Share Class                  Total Expense Ratio
                                                               (%)
31 January 2010           1 – Accumulation                     2.27
                          4 – Accumulation                     0.92
31 January 2011*          1 – Accumulation                       -
                          4 – Accumulation                       -

* The Fund closed on 9 December 2010. No Total Expense Ratio has been calculated for the financial year.




Page 80
                                                                              Multi Manager Growth Fund

Portfolio Movements
for the year ended 31 January 2011
Purchases                                                                               Note                Cost
                                                                                                           £’000

Invesco Perpetual Corporate Bond (Income)                                                                 11,665
Robeco US Premium Equities IE GBP (Income)                                                                 7,657
Aberdeen Emerging Markets 'A' (Accumulation)                                                               7,501
Jupiter Growth & Income (Income)                                                                           7,191
JP Morgan Global (Accumulation)                                                                            6,544
Old Mutual UK Dynamic Equity ‘I’ (Income)                                                                  6,375
BlackRock UK Absolute Alpha 'P' (Accumulation)                                                             6,135
Jupiter Financial Opportunities (Income)                                                                   5,187
Legg Mason Capital Management Opportunities Premier 'A' GBP (Income)                                       4,680
Neptune Investment Management European Opportunities Fund 'B' (Income)                                     4,436

Other purchases                                                                                           44,060

Total for the year                                                                        9             111,431



Sales                                                                                   Note          Proceeds
                                                                                                          £’000

Invesco Perpetual Corporate Bond (Income)                                                                17,691
iShares Trust S&P500                                                                                     14,288
BlackRock UK 'A' (Accumulation)                                                                          10,078
Jupiter Financial Opportunities (Income)                                                                  9,542
† Nevsky Capital Global Emerging Markets GBP (Income)                                                     9,188
BlackRock UK Absolute Alpha 'P' (Accumulation)                                                            8,485
Cazenove European Class 'X' (Accumulation)                                                                8,251
BNP Paribas Index Linked                                                                                  7,457
Neptune Income 'B' (Income)                                                                               7,014
J O Hambro Continental European Institutional GBP (Income)                                                5,627

Other sales                                                                                              11,739

Total for the year                                                                        9             109,360

† This holding is deemed to be an investment in a related party of the ACD.

These amounts do not include any transactions related to the scheme of arrangement, details of which can be found
on page 3.

Notes to the financial statements are on pages 84 to 88.




                                                                                                        Page 81
Multi Manager Growth Fund

Statement of Total Return
for the year ended 31 January 2011
                                                                          31/01/2011                 31/01/2010
                                                     Notes                     £’000                      £’000
Income
  Net capital gains                                        1                  19,796                     20,260
  Revenue                                                  2      1,694                     3,068

Expenses                                                   3      (844)                      (907)

Finance costs: Interest                                    5        (7)                       (12)

Net revenue before taxation                                        843                      2,149

Taxation                                                   4       (36)                      (171)

Net revenue after taxation                                                       807                      1,978

Total return before distributions                                             20,603                     22,238

Finance costs: Distributions                               5                   (815)                     (1,999)

Change in net assets attributable to
shareholders from investment activities                                       19,788                     20,239


Statement of Change in Net Assets Attributable to Shareholders
for the year ended 31 January 2011
                                                                          31/01/2011                 31/01/2010
                                                                               £’000                      £’000

Opening net assets attributable to shareholders                              124,214                    114,571

Amounts transferred to Thames River Equity Managed Fund                    (132,799)                           -

Amounts receivable on issue of shares                             1,869                      3,415
Amounts payable on cancellation of shares                      (13,838)                   (15,900)
                                                                            (11,969)                   (12,485)

Stamp duty reserve tax                                                          (15)                        (21)

Change in net assets attributable to shareholders
from investment activities (see above)                                        19,788                     20,239

Retained distributions on accumulation shares                                    775                      1,910

Amounts to be transferred from Thames River Equity Managed Fund                    6                           -


Closing net assets attributable to shareholders                                     -                   124,214


On 24 November 2010 the Shareholders approved a scheme of arrangement to merge the Fund with the Thames
River Equity Managed Fund.

The scheme of arrangement took effect on 10 December 2010 with the transfer of the assets and liabilities of the
Fund to the Thames River Equity Managed Fund and the issue to Shareholders of shares in the Thames River Equity
Managed Fund. All the shares in issue of the Fund were cancelled.

Notes to the financial statements are on pages 84 to 88.
Page 82
                                                                     Multi Manager Growth Fund

Balance Sheet
as at 31 January 2011
                                                                     31/01/2011             31/01/2010
                                                     Notes                £’000                  £’000

ASSETS

Investment assets                                                             -               122,721

Debtors                                                7      331                  3,046
Cash and bank balances                                          -                  1,589

Total other assets                                                         331                  4,635


Total assets                                                               331                127,356



LIABILITIES

Creditors                                              8       (4)                (2,685)
Bank overdrafts                                              (327)                  (457)

Total liabilities                                                         (331)                (3,142)


Net assets attributable to shareholders                                       -               124,214



Notes to the financial statements are on pages 84 to 88.




                                                                                              Page 83
Multi Manager Growth Fund

Notes to the Financial Statements
1. NET CAPITAL GAINS                                                         31/01/2011             31/01/2010
                                                                                  £’000                  £’000
   The net capital gains during the year comprise:

   Non-derivative securities                                                     19,621                 20,840
   Derivative contracts                                                             (23)                 (796)
   Currency gains                                                                   166                    115
   Rebate of capital management fees from underlying investments                      37                   106
   Transaction charges                                                               (5)                    (5)
   Net capital gains                                                             19,796                 20,260

2. REVENUE

   Franked component of dividend distributions                                      676                    730
   Rebate of revenue management fees from underlying investments                    314                    222
   Overseas dividends                                                               279                    387
   Interest distributions                                                           177                    468
   Offshore investment companies                                                    168                    476
   Interest on debt securities                                                       36                      -
   Unfranked component of dividend distributions                                     26                    760
   Bank interest                                                                     18                     25
                                                                                  1,694                  3,068

3. EXPENSES

   Payable to the Authorised Corporate Director, associates of the
   Authorised Corporate Director, and agents of either of them:
   Authorised Corporate Director's periodic charge                                  744                    797


   Payable to the Depositary, associates of the Depositary
   and agents of either of them:
   Depositary's fee                                                                  15                     16
   Safe custody fees                                                                  2                      2
                                                                                     17                     18

   Other expenses:
   Registrar's fees                                                                  51                     56
   Administration costs                                                               9                     10
   Accounting & administration fees                                                   9                     12
   Audit fee                                                                          7                       8
   Price publication costs                                                            4                       2
   European Savings Directive fees                                                    2                       2
   Report & accounts printing costs                                                   1                       3
   VAT recovered*                                                                     -                     (1)
                                                                                     83                     92
   Total expenses (including VAT where appropriate)                                 844                    907

  * This receipt relates to VAT recovered as a result of the European Court of Justice decision C-169/04 in May
    2006.




Page 84
                                                                            Multi Manager Growth Fund
4. TAXATION                                                                       31/01/2011               31/01/2010
                                                                                       £’000                    £’000
a) Analysis of charge in the year
   Overseas tax suffered                                                                   31                       50
   Irrecoverable income tax                                                                 5                      121
   Total taxation                                                                          36                      171

b) Factors affecting current tax charge for year
   The tax assessed for the year is lower than the standard rate of corporation tax in the UK for an Open Ended
   Investment Company (OEIC) of 20%. The differences are explained below:

   Net revenue before taxation                                                            843                    2,149

   Corporation tax at 20% (2010: 20%)                                                     169                      430

   Effects of:
   Franked component of dividend income not subject to corporation tax                  (135)                    (146)
   Overseas and offshore dividends not subject to corporation tax                        (90)                     (57)
   Irrecoverable income tax                                                                 5                      121
   Irrecoverable overseas tax                                                              31                       50
   Movement in excess expenses                                                             15                    (215)
   Revenue taxable in different periods                                                     -                     (33)
   Capital taxable revenue not included in total revenue                                   41                       21
   Current tax charge (note 4a)                                                            36                      171

   Open Ended Investment Companies are exempt from tax on capital gains. Therefore, any capital return is not
   included in the above reconciliation.

c) Factors that may affect future tax charges
   At the year end, after offset against accrued revenue taxable on receipt, there is a potential deferred tax asset of
   £406,673 (2010: £358,196) in relation to excess management expenses. It is unlikely that the Fund will generate
   sufficient taxable profits in the future to utilise these amounts and, therefore, no deferred tax asset has been
   recognised in the year or the prior year.


5. FINANCE COSTS

   Distributions and interest
   The distributions take account of revenue received on the issue of shares and revenue deducted on the
   cancellation of shares and comprise:

   Interim dividend distribution                                                          774                        -
   Final dividend distribution                                                              -                    1,910

   Revenue deducted on cancellation of shares                                              43                      106
   Revenue received on issue of shares                                                     (2)                     (17)
   Net distributions for the year                                                         815                    1,999

   Details of the distributions per share are set out in the distribution
   table on page 89.

   Interest                                                                                 7                       12

   Total finance costs                                                                    822                    2,011




                                                                                                              Page 85
Multi Manager Growth Fund
6. MOVEMENT BETWEEN NET REVENUE AND DISTRIBUTIONS                                31/01/2011        31/01/2010
                                                                                      £’000             £’000

   Net revenue after taxation                                                           807             1,978
   Tax on capital fee rebates not distributed                                             8                21
                                                                                        815             1,999

7. DEBTORS

   Income tax recoverable                                                               172               322
   Accrued revenue                                                                      141               136
   Accrued management fee rebates                                                        12               160
   Amounts transferable from Thames River Equity Managed Fund                             6                 -
   Sales awaiting settlement                                                              -             2,427
   Prepaid Expenses                                                                       -                 1
                                                                                        331             3,046

8. CREDITORS

   Accrued expenses                                                                        4               20
   Purchases awaiting settlement                                                           -            2,453
   Amounts payable for cancellation of shares                                              -              142
   Accrued Authorised Corporate Director’s periodic charge                                 -               70
                                                                                           4            2,685
9. PORTFOLIO TRANSACTION COSTS

   Analysis of total purchase costs

   Purchases in the year before transaction costs                                   111,417            94,694

   Commissions                                                                           14                52
   Gross purchases total                                                            111,431            94,746

   Analysis of total sales costs

   Gross sales before transaction costs                                             109,383            98,003

   Commissions                                                                          (23)              (31)
   Total sales net of transaction costs                                             109,360            97,972

10. CONTINGENT LIABILITIES

   There are no contingent liabilities or commitments outstanding as at the balance sheet date.

11. POST BALANCE SHEET EVENTS

   There were no material post balance sheet events which have a bearing on the understanding of the financial
   statements.




Page 86
                                                                              Multi Manager Growth Fund
12. RELATED PARTY DISCLOSURE

   F&C Fund Management Limited, as Authorised Corporate Director (ACD), is a related party, and acts as principal
   in respect of all transactions of shares in the Company. The aggregate monies received through issue, and paid
   on cancellation, are disclosed in the Statement of Change in Net Assets Attributable to Shareholders.

   Amounts payable to F&C Fund Management Limited in respect of fund management are disclosed in note 3 and
   amounts due at the end of the year in note 8.

   The ACD is also the ACD or Manager for other authorised funds and those funds may invest in each other where
   this is within the investment objectives of the investing fund. Such transactions will be conducted on an arm’s
   length basis within the regulations and the terms of the prospectus. No such transactions were entered into
   during the current year.

13. SHAREHOLDERS’ FUNDS

   The Fund had two share classes: Class 1 (Retail) and Class 4 (Asset Manager). The ACD charge on each share
   class was as follows:

      Class 1:                       1.25%
      Class 4:                       nil

   The distribution per share class is given in the distribution table on page 89. All classes have the same rights on
   winding up.

14. FINANCIAL INSTRUMENTS

   The analyses and tables provided below refer to the narrative disclosure on ‘Financial Instrument Risks’ on page
   16.

   Currency exposures

   The Fund’s financial assets and liabilities are all denominated in Sterling. As a result, the Fund has no exposure
   to currency movements.

   Interest rate risk profile of financial assets and financial liabilities

   The interest rate profile of the Fund’s financial assets at 31 January 2011 and 31 January 2010 was:

                                    Total            Floating rate         Fixed rate     Financial assets
       Currency                                    financial assets     interest assets      on which no
                                                                                           interest is paid
       31/01/2011                  £’000                £’000                 £’000             £’000
       UK Sterling                   331                    -                     -               331
       Total                         331                    -                     -               331
       31/01/2010                  £’000                £’000                 £’000             £’000
       UK Sterling               127,356                1,589                     -           125,767
       Total                     127,356                1,589                     -           125,767

   The floating rate financial assets earn interest which is based on the London Inter Bank Offer Rate (LIBOR).

   Financial assets on which no interest is paid in both periods comprised equity shares and collective investment
   schemes that have no maturity date and short term debtors and creditors.




                                                                                                              Page 87
Multi Manager Growth Fund
   The interest rate profile of the Fund’s financial liabilities at 31 January 2011 and 31 January 2010 was:

                                       Total         Floating rate         Fixed rate            Financial
          Currency                                     financial            interest           liabilities on
                                                       liabilities         liabilities           which no
                                                                                             interest is paid
          31/01/2011                   £’000            £’000                £’000                 £’000
          UK Sterling                    331              327                    -                       4
          Total                          331              327                    -                       4
          31/01/2010                   £’000            £’000                £’000                 £’000
          UK Sterling                  3,142              457                    -                 2,685
          Total                        3,142              457                    -                 2,685

   The floating rate financial liabilities include a Sterling denominated overdraft that in both periods bore interest
   based on the London Inter Bank Offer Rate (LIBOR).

   Maturity of financial liabilities

   The financial liabilities of the Fund as at 31 January 2011 are payable either within one year or on demand, as
   were the financial liabilities of the previous year ended 31 January 2010.

   Fair values of financial assets and liabilities

   There is no material difference between the value of the financial assets and liabilities, as shown in the balance
   sheet and their fair value.




Page 88
                                                                        Multi Manager Growth Fund

Distribution table
for the period from 1 February 2010 to 9 December 2010
                                                      Net revenue    Equalisation    Distribution   Distribution
                                                                                       payable         paid*

                                                                                      09/02/2011     31/03/2010
                                                       pence per       pence per      pence per      pence per
                                                         share           share          share          share

09/12/2010   Group 1: Shares purchased prior to 1 February 2010.
             Group 2: Shares purchased from 1 February 2010 to 9 December 2010.

Class 1      Accumulation

Group 1                                                  0.4007             -           0.4007         2.7282
Group 2                                                  0.1511          0.2496         0.4007         2.7282

Class 4      Accumulation

Group 1                                                  3.0309             -           3.0309         4.4711
Group 2                                                  3.0309          0.0000         3.0309         4.4711

* The Fund closed on 9 December 2010, the comparative relates to the period 1 February 2009 to 31 January 2010.




                                                                                                        Page 89
Multi Manager Growth Fund
CORPORATE SHAREHOLDERS

   Dividend distribution

   A shareholder liable to UK corporation tax receives this income distribution and associated tax credits as franked
   investment income to the extent that the gross revenue from which the distribution are made is itself franked
   investment income.

   Where the gross revenue from which the distributions are made is not wholly franked investment income, part of
   the distributions is received as an annual payment from which income tax at the lower rate is deemed to have
   been deducted. A shareholder liable to UK corporation tax receives this distribution, excluding equalisation, as
   follows;

                     Date           Share Class                  Franked                 Unfranked
                                                               Investment               Investment
                                                                 Income*                 Income**
                                                                    (%)                     (%)
                  09/12/2010        1 – Accumulation              100.00                    0.00
                                    4 – Accumulation              100.00                    0.00

  * Proportion of the total income distribution, excluding equalisation, together with the tax credit, which is received as
    franked investment income.

 ** Proportion of the total income distribution, excluding equalisation, which is deemed to be received as an annual
    payment after deduction of income tax at the lower rate and is liable to corporation tax. It is not franked
    investment income.




Page 90

				
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