The document reports on the top performing countries and stocks in the Orchard Funds PLC Equity Income & Total Return Fund in June 2015. The United States was the top performing country, contributing 52.39% to the fund. Express Scripts, Las Vegas Sands, and Gilead Sciences were among the top performing stocks in the fund, with positions held through 2015 and 2016 generating expected annualized returns of 11.93%, 27.85%, and 8.2% respectively if commitments expire worthless. Rolls Royce was the biggest detractor from the fund in June.

1. June 2015
Top Movers Top 5 Countries
United States 52.39%
United Kingdom 16.85%
France 9.42%
Switzerland 2.82%
Jersey 2.79%
-20.00
-15.00
-10.00
-5.00
0.00
5.00
10.00
Las Vegas
Sands
Express Scripts Gilead Mastercard LyondellBasel Caterpillar Rolls Royce
Contribution by Basis Points
Launch Date
14 January 2003
Fund Facts
Fund Manager
Richard Harwood
(since inception)
Fund Structure
UCITS IV
Domicile
Dublin
Currencies
GBP, USD, EUR, CHF
Administrator
CACEIS Ireland Ltd
Min Subscription
50,000 for individuals,
10,000 for platforms and
designated bodies
Fund AUM
£69.9m
Express Scripts, + 4.13 bps
Express Scripts is the largest pharmacy benefit manager in the U.S., facilitating healthcare
plan benefit payers with the fulfilment of member prescriptions. A flurry of mergers and
acquisitions rumours in the health insurance sector has buoyed Express Scripts this month,
even though it has not been one of the named companies involved, it would be a direct
beneficiary if various deals were completed. The Affordable Care Act better known as
Obamacare also continues to provide a tailwind as the newly insured patients begin to drive
prescription volumes. The fund currently has a commitment to buy Express Scripts shares in
September 2015 which, if it expires worthless, will generate a 11.93% annualised return.
Las Vegas Sands, + 7.38 bps
Las Vegas Sands owns and operates casino resorts in the United States, Macau and
Singapore with 85% of its revenues being generated in Asia. On the final day of the month,
visa restrictions on mainland Chinese visitors to Macau were relaxed allowing them to stay up
to seven days from the previous five days and high frequency visitors now being able to visit
twice in 30 days instead of twice in 60 days. This may be the first sign that the authorities are
looking to conclude their crackdown on corruption and support demand, which would pave
the way for visitor numbers and gaming revenues to expand in the near and medium term.
The Fund retains a position in the shares of Las Vegas Sands with a commitment to sell them
in January 2016. If the shares are called away at this point, the position will have generated
an annualised return of 27.85%.
Orchard Wealth Management Ltd is licensed to conduct investment business by
the Jersey Financial Services Commission. Orchard Funds Plc has the status of a
recognised scheme under Section 264 of FSMA 2000 of the United Kingdom. Past
performance is no guide to the future. Investments can go down as well as up and
investors may not get back the whole amount they invested. For full disclosure of
the risk warnings please visit our website. www.orchardwealthmanagement.com
Orchard Funds PLC
Equity Income & Total Return
6% Targeted Annual Yield
Gilead, + 4.08 bps
Gilead Sciences is a U.S. based global biopharmaceutical company that discovers, develops
and commercialises drugs treating a variety of diseases including Hepatitis C, HIV/AIDS, liver
disease, cardiovascular and respiratory conditions. This is the second month in a row that
Gilead has appeared in this report, with this months growth being based on a continuation of
the good earnings report for the prior period and market participants upgrading the
prospects for the company and its underlying drugs. The fund currently has a commitment to
buy Gilead shares in January 2016 which, if it expires worthless, will generate a 8.2%
annualised return.

2. June 2015
Launch Date
14 January 2003
Fund Facts
Fund Manager
Richard Harwood
(since inception)
Fund Structure
UCITS IV
Domicile
Dublin
Currencies
GBP, USD, EUR, CHF
Administrator
CACEIS Ireland Ltd
Fund AUM
£69.9mRolls Royce, - 18.44 bps
Mastercard, + 3.19 bps
Mastercard is the second largest payments network in the world and in June, became the first
payment network to provide tokenisation services to private label credit card issuers, enabling
merchants to take advantage of the latest digital payment innovations. In the U.S. BJ’s
Wholesale Club, Kohl’s and JCPenney will be among the first retailers to bring mobile
payments to their store branded credit cardholders enabling customers to pay how ever they
want and on the device of their choice. Further partnerships with Synchrony Financial and Citi
Retail Services, two of the largest private label credit card issuers, should also strengthen
Mastercard’s position in this market. The Fund retains a position in the shares of Mastercard
with a commitment to sell them in January 2016. If the shares are called away at this point,
the position will have generated an annualised return of 12.43%.
Dividend Policy
Distribution
Dealing Days
Daily
Orchard Wealth Management Ltd is licensed to conduct investment business by
the Jersey Financial Services Commission. Orchard Funds Plc has the status of a
recognised scheme under Section 264 of FSMA 2000 of the United Kingdom. Past
performance is no guide to the future. Investments can go down as well as up and
investors may not get back the whole amount they invested. For full disclosure of
the risk warnings please visit our website. www.orchardwealthmanagement.com
Orchard Funds PLC
Equity Income & Total Return
6% Targeted Annual Yield
Rolls Royce is a UK based engineering company and one of the world's leading suppliers of
jet engines to civil, defence, marine and energy applications. The orders from the Paris Air
Show came in shy of the levels achieved at the Farnborough Air Show in 2014 as bookings
slowed due to customers being wary of the long backlogs for popular models and lower oil
prices meaning airlines can continue to fly their older aircraft profitably. As we have stated
before in the past, the Orchard strategy is about long term investing and with the 20 year
prediction for aircraft demand in excess of 30,000 new planes, Rolls Royce is in prime
position to reap the rewards of this expansion in fleet sizes. The fund currently has a
commitment to buy Rolls Royce shares in September 2015 which, if it expires worthless, will
generate a 10.07% annualised return.
LyondellBasel, + 1.13 bps
Caterpillar, + 0.55 bps
Caterpillar is the world’s largest manufacturer of heavy construction and mining equipment.
June saw Caterpillar raise its quarterly dividend by 10% to $0.77 and comes exactly one year
since the last dividend increase which was also a 10% improvement. The adjustment pushes
Caterpillar’s dividend yield up to 3.48% which puts it higher than the payout you would
receive from its competitors, Deere & Company and Joy Global. The Fund retains a position
in the shares of Caterpillar with a commitment to sell them in July 2015. If the shares are
called away at this point, the position will have generated an annualised return of 31.90%.
Min Subscription
50,000 for individuals,
10,000 for platforms and
designated bodies
LyondellBasel is a U.S. based manufacturer of plastics, chemicals and fuel products for a
diverse array of industries from personal care products to medical applications and
automotive components. U.S. plastic prices increased 18% throughout the second quarter of
2015 yet the cost of the industry’s primary petrochemical inputs were little changed. The
typical one quarter lag between increasing product spreads and reported margins leaves a
positive outlook for LyondellBasel as we head into the beginning of the second quarter
earnings announcements in the U.S. The fund currently has a commitment to buy
LyondellBasel shares in September 2015 which, if it expires worthless, will generate a
11.32% annualised return.