PHOENIX UNIT TRUST MANAGERS MANAGER S INTERIM REPORT PUTM BOTHWELL EUROPE FUND. For the half year: 16 April 2017 to 15 October 2017

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1 PHOENIX UNIT TRUST MANAGERS MANAGER S INTERIM REPORT For the half year: 16 April 2017 to 15 October 2017 PUTM BOTHWELL EUROPE FUND

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3 Contents Investment review 2-3 Portfolio of investments 4-7 Top ten purchases and sales 8 Statistical information 9-12 Statements of total return & change in net assets attributable to unitholders 13 Balance sheet 14 Distribution table 15 Appendix Corporate information

4 Investment review Dear Investor Welcome to the PUTM Bothwell Europe Fund interim report for the six months to 15 October Performance Review Over the review period, the PUTM Bothwell Europe Fund increased 11.7%. (Source: HSBC, Gross of AMC, GBP, based upon the movement in the Cancellation Price, GBP for six months to 15/10/17) This is compared with an increase of 11.8% by its benchmark index. (Source: Datastream, MSCI Europe ex UK, net dividends reinvested, in sterling for six months to 15/10/17). In the table below, you can see how the Fund performed against its benchmark index over the last five discrete one-year periods. Standardised Past Performance Oct Oct Oct Oct Oct % growth % growth % growth % growth % growth PUTM Bothwell Europe Fund Benchmark Index Source: Fund performance is HSBC, Gross of AMC, GBP, based upon the movement in the Cancellation Price to 15 October for each year. Benchmark Index performance is Datastream, MSCI Europe ex UK, net dividends reinvested, in sterling to 15 October for each year. The Benchmark Index changed from the FTSE Europe ex UK, Total Return, to the MSCI Europe ex UK, net dividends reinvested on 30/04/11. Past performance is not a guide to future performance. The value of units and the income from them can go down as well as up and is not guaranteed. You may not get back the full amount invested. Please note that all past performance figures are calculated without taking the initial charge into account. 2

5 Investment review Portfolio and Market Review The market continued on its upward trajectory throughout the review period. Stronger data has been steadily developing, and this is now feeding through to the real economy in terms of physical activity, such as industrial production. This implies a degree of synchronised upturn among the major economies not witnessed for many years all of which has provided a supportive backdrop for equities. Central banks are responding, with a more hawkish stance from the US Federal Reserve and the European Central Bank ending its easing bias. In saying that, political disintegration remains a risk. Looking at the Fund s performance and offshore oil services firm TechnipFMC was impacted by the falling oil price, which dampened market enthusiasm for capitalexpenditure-related stocks. Jewellery manufacturer and retailer Pandora also disappointed when the market grew concerned about the company s core product offerings. This was due to weak mall traffic in the US. Elsewhere, Fresenius declined when its acquisition of Akorn in the US was poorly received. The company also flagged a slightly weak third-quarter outlook in its Spanish hospital business (Helios). Despite an operational error relating to pilot holiday scheduling that saw the company cancel nearly one million passenger flights, the Fund s holding in Ryanair still added value during the period. The airline enjoyed an early rebound in pricing following Brexit-induced weakness. The Fund s performance was also supported by its exposure to Wirecard, whose CEO reassured investors that the company could exceed its mid-term goals given improvements in near-term growth. ASML was helpful when it reported robust numbers amid a growing acceptance of its EUV technology this is now set to be the gold standard in the manufacture of semiconductor lithography machines. In terms of activity, we purchased shares in E.On, as it exited its traditional cyclical generation business and redeployed capital into highly rated regulated assets in Germany and Sweden. Finally, we removed Syngenta and used the money to start a position in German chemical group BASF, which should be a beneficiary of the improving global demand outlook. Market Outlook and Fund Strategy Monetary-policy tightening will remain the key driver of markets in both Europe and the US. To this end, we are wary of interest-rate-exposed defensives such as utilities and consumer staples and positive on banks and insurance, which are more positively correlated with interest rates. We also recognise that a domestic recovery is emerging in Europe and, as such, prefer construction groups like St Gobain and Prysmian. Banking stocks should also benefit here. Lastly, we remain cautious of traditional auto stocks but see growth in car electrification. To this end, the Fund has a holding in Infineon (a dominant player in power semiconductors) and Umicore (a leader in battery technology). 3

6 Portfolio of investments Investments held at 15 October 2017 Market Percentage of value total net assets Holding Investment 000 % Europe (15/04/ %) Oil & Gas Producers (15/04/ %) ,517 Galp Energia 11, ,921 Lundin Petroleum 7, ,120 Total 7, Chemicals (15/04/ %) ,458 Akzo Nobel 11, ,330 BASF 20, ,550 Bayer 26, ,029 Umicore 6, Aerospace & Defence (15/04/ %) ,437 Airbus Group 14, ,054 Thales 6, Construction & Materials (15/04/ %) ,576 Actividades de Construcción y Servicios 8, ,809 Assa Abloy B 12, ,538 CRH 17, ,261 Saint Gobain 10, General Industrials (15/04/ %) ,953 Siemens 24, ,276 ThyssenKrupp 12, Electronic & Electrical Equipment (15/04/ %) ,756 Koninklijke Philips 8, ,833 Prysmian SPA 9, Industrial Transport (15/04/ %) ,276 A P Moller Maersk B 13, ,941 Deutsche Post 10, ,659 DSV B 6, Support Services (15/04/ %) ,175 Randstad 14, ,133 Securitas B 9, ,649 Wirecard 11, Automobiles & Parts (15/04/ %) ,458 Michelin 12, ,650 Renault 13, Beverages (15/04/ %) ,542 Anheuser-Busch InBev 3, Food Producers (15/04/ %) ,971 Glanbia 7, ,256 Kerry Group 15, ,242 Nestle R 41,

7 Portfolio of investments Investments held at 15 October 2017 Market Percentage of value total net assets Holding Investment 000 % Personal Goods (15/04/ %) ,087 Essity B 10, ,310 LVMH 12, ,288 Pandora 9, ,662 SCA B 3, Tobacco (15/04/ %) ,171 Scandinavian Tobacco 6, Healthcare Equipment & Services (15/04/ %) ,964 AMBU B 4, ,984 Essilor International 9, ,234 Fresenius 17, ,718 Orpea 8, Pharmaceuticals & Biotechnology (15/04/ %) ,116 Merck KGaA 11, ,404 Novartis R 7, ,399 Novo Nordisk B 11, ,728 Roche Holding 33, ,781 Sanofi 11, Food & Drug Retailers (15/04/ %) General Retailers (15/04/ %) ,200 Inditex 15, ,555 Kering 15, Travel & Leisure (15/04/ %) ,102 Paddy Power 8, ,200,071 Ryanair 18, ,736 TUI 4, Fixed Line Telecom (15/04/ %) ,109,931 Orange 13, Mobile Telecom (15/04/ %) ,692 Deutsche Telekom 9, Electricity (15/04/ %) ,671,294 Enel 16, Gas, Water & Multiutilities (15/04/ %) ,410,678 E.On 12, Banks (15/04/ %) ,222,618 Allied Irish Banks 5, ,977,997 Banca Intesa Sanpaolo 5, ,671,216 Banco Santander 23, ,946,954 Bankinter 13, ,570,265 Credit Suisse 18,

8 Portfolio of investments Investments held at 15 October 2017 Market Percentage of value total net assets Holding Investment 000 % Banks (continued) 844,992 Danske Bank 25, ,965 ING Groep 11, ,685 Julius Baer Group 10, ,992,313 Nordea 19, ,398 Société Générale 5, ,149,783 Swedbank 22, Non-Life Insurance (15/04/ %) ,325 Allianz 7, ,987 ASR Nederland 10, ,089,100 AXA 24, ,160 Zurich Insurance Group 19, Financial Services (15/04/ %) ,628 Amundi SA 20, ,123 Intrum Justitia 6, ,886 Investor AB 7, ,760 Partners Group 10, Technology Hardware & Equipment (15/04/ %) ,542 ASML 23, ,584 Infineon Technologies 9, ,549,231 Nokia 11, Internet Software & Services (15/04/ %) ,928 Rocket Internet 5, ,067 SAP 19, ,085 Scout24 8, Real Estate & Investment Services (15/04/ %) ,353,050 Hibernia REIT 7, Immofinanz* 0.00 Alternative Energy (15/04/ %) ,466 Vestas Windsystems 9, Oil Equipment & Services (15/04/ %) 6

9 Portfolio of investments Investments held at 15 October 2017 Market Percentage of value total net assets Holding Investment 000 % Money Markets (15/04/ %) ,000 Standard Life Investments Sterling Liquidity Fund Class 0 GBP~ Portfolio of investments 1,012, Net other assets 6, Net assets 1,019, All investments are listed on recognised stock exchanges and are approved securities within the meaning of the FCA rules unless otherwise stated. ~ SICAVs (open ended investment schemes registered outside the UK). * This stock has nil value. 7

10 Top ten purchases and sales For the half year ended 15 October 2017 Purchases Cost 000 Standard Life Investments Sterling Liquidity Fund Class 0 GBP 109,971 Bayer 24,750 Credit Suisse 17,292 Randstad 14,427 BASF 12,878 Michelin 11,724 E.On 11,620 LVMH 11,287 ASR 9,995 Lundin Petroleum 8,465 Sales Proceeds 000 Standard Life Investments Sterling Liquidity Fund Class 0 GBP 109,386 Adecco 12,968 Koninklijke Ahold 12,756 Koninklijke KPN 12,686 Deutsche Telekom 12,440 ING Groep 12,347 Euronext 11,093 Iberdrola 11,091 Covestro 10,579 LafargeHolcim 9,730 Total purchases 319,032 Total sales 395,640 8

11 Statistical information Comparative tables Change in net assets per unit Class A Accumulation 15/10/17 15/04/17 15/04/16 15/04/15 pence pence pence pence Opening net asset value per unit Return before operating charges* (5.66) Operating charges (1.55) (2.60) (2.32) (2.27) Return after operating charges* (7.98) Distributions on accumulation units (1.59) (2.69) (1.62) (1.83) Retained distributions on accumulation units Closing net asset value per unit *after direct transaction costs of: Performance Return after charges 10.83% 20.50% (4.89%) 11.38% Other information Closing net asset value ( 000) 88,730 85,679 78,496 90,122 Closing number of units 42,825,934 45,829,824 50,596,333 55,247,398 Operating charges 1.54% 1.54% 1.53% 1.53% Direct transaction costs 0.07% 0.14% 0.12% 0.21% Prices + Highest unit price (pence) Lowest unit price (pence) High and Low price disclosures are based on quoted unit prices. Therefore, the opening and closing NAV prices may fall outside the high / low price threshold. 9

12 Statistical information Comparative tables Change in net assets per unit Class B Accumulation 15/10/17 15/04/17 15/04/16 15/04/15 pence pence pence pence Opening net asset value per unit Return before operating charges* (5.96) Operating charges (0.04) (0.07) (0.06) (0.04) Return after operating charges* (6.02) Distributions on accumulation units (3.40) (5.67) (4.20) (4.29) Retained distributions on accumulation units Closing net asset value per unit *after direct transaction costs of: Performance Return after charges 11.64% 22.28% (3.44%) 13.07% Other information Closing net asset value ( 000) 930, , , ,728 Closing number of units 403,766, ,890, ,704, ,585,501 Operating charges 0.04% 0.04% 0.03% 0.03% Direct transaction costs 0.07% 0.14% 0.12% 0.21% Prices + Highest unit price (pence) Lowest unit price (pence) High and Low price disclosures are based on quoted unit prices. Therefore, the opening and closing NAV prices may fall outside the high / low price threshold. 10

13 Statistical information Investment objective The Fund aims to achieve above average capital growth by investing predominantly in shares in companies incorporated in Europe. Investment policy The Fund will be actively managed with its investments spread across the region with a focus on companies with above average growth prospects. The Fund may also invest in companies that are headquartered or quoted outwith Europe which derive a significant part of their business from Europe and whose securities are listed or traded on an eligible securities or derivatives exchange. The Fund may invest in emerging European markets. The Fund can invest up to 15% in other regions. The Fund is not constrained by any index weightings and does not concentrate on any particular country or sector but invests from a broad range of stocks without regard to market capitalisation. The Fund may also invest in other transferable securities, units in collective investment schemes, money market instruments, deposits, cash and near cash. Revenue distribution and pricing Units of the Fund are available as either Class A or B Accumulation units (where revenue is reinvested to enhance the unit price). There will be two potential distributions in each accounting year: an interim distribution as at 15 October and a final distribution as at 15 April. At each distribution the net revenue after deduction of expenses, arising in the preceding six months from the investments of the Fund is apportioned amongst the unitholders. Unitholders receive a tax voucher giving details of the distribution and the Manager s Report no later than two months after these dates. 11

14 Statistical information Risk and reward profile The Risk and Reward Indicator table demonstrates where the Fund ranks in terms of its potential risk and reward. The higher the rank the greater the potential reward but the greater the risk of losing money. It is based on past data, may change over time and may not be a reliable indication of the future risk profile of the Fund. The shaded area in the table below shows the Fund s ranking on the Risk and Reward Indicator. fi Typically lower rewards, Typically higher rewards, lower risk higher risk fi This Fund is ranked at 5 because funds of this type have experienced medium to high rises and falls in value in the past. Although this is a high risk it is not the highest. The above figure applies to the following unit class: Class A Accumulation Class B Accumulation Please note that even the lowest risk class can lose you money and that extreme market circumstances can mean you suffer severe losses in all cases. Please note the Fund s risk category may change in the future. The indicator does not take into account the following risks of investing in this Fund: Investing overseas can bring additional returns and spread risk to different markets. There are risks, however, that changes in currency rates will reduce the value of your investment. Emerging markets or less developed countries may face more political, economic or structural challenges than developed countries. This means that your money is at greater risk. The Fund may use derivatives to reduce risk or cost or to generate additional capital or income at low risk, or to meet its investment objective. For more information on the Risk and Reward profiles of our Funds, please refer to the most up to date relevant fund and Unit Class Key Investor Information Documents (KIIDs). These are available online at Directors statement This report has been prepared in accordance with the requirements of the Collective Investment Schemes Sourcebook as issued and amended by the Financial Conduct Authority. 30 November 2017 Craig Baker, Director Andy Moss, Director 12

15 Interim financial statements (unaudited) For the half year ended 15 October 2017 Statement of total return Income 15/10/17 15/10/ Net capital gains 96, ,755 Revenue 16,788 20,592 Expenses (839) (789) Interest payable and similar charges (4) (2) Net revenue before taxation 15,945 19,801 Taxation (517) (1,198) Net revenue after taxation 15,428 18,603 Total return before distributions 112, ,358 Distributions (15,494) (18,669) Change in net assets attributable to unitholders from investment activities 96, ,689 Statement of change in net assets attributable to unitholders 15/10/17 15/10/16* Opening net assets attributable to unitholders 997, ,500 Amounts receivable on issue of units 6,842 31,408 Amounts payable on cancellation of units (96,553) (54,995) (89,711) (23,587) Change in net assets attributable to unitholders from investment activities 96, ,689 Retained distributions on accumulation units 14,429 18,368 Closing net assets attributable to unitholders 1,019,146 1,056,970 *Please note that the comparative figures are for the comparative interim period. The brought forward net assets for the current period do not, therefore equal the carried forward figure in the comparative. 13

16 Interim financial statements (unaudited) As at 15 October 2017 Balance sheet 15/10/17 15/04/ Assets Fixed assets: Investments 1,012, ,735 Current assets: Debtors 11,971 14,800 Cash and bank balances 119 2,954 Total current assets 12,090 17,754 Total assets 1,025,086 1,010,489 Liabilities: Investment liabilities (11) Creditors: Bank overdraft (777) Other creditors (5,940) (11,963) Total creditors (5,940) (12,740) Total liabilities (5,940) (12,751) Net assets attributable to unitholders 1,019, ,738 Notes to the interim financial statements Accounting policies The interim financial statements have been prepared under the historical cost basis, as modified by the valuation of investments and in compliance with FRS102 and in accordance with the Statement of Recommended Practice (2014 SORP) for financial statements of Authorised Funds issued by The Investment Association in May Unless otherwise stated all accounting policies applied are consistent with those of the Annual Report for the year ended 15 April 2017 and are described in those financial statements. 14

17 Distribution table For the half year ended 15 October 2017 Dividend distribution Interim distribution in pence per unit Group 1: units purchased prior to 16 April 2017 Group 2: units purchased between 16 April 2017 to 15 October pence pence per unit per unit Net payable paid income Equalisation 15 Dec 15 Dec Class A Accumulation Group Group Class B Accumulation Group Group Equalisation This applies only to units purchased during the distribution period (Group 2 units). It is the average amount of revenue included in the purchase price of all Group 2 units and is refunded to the holders of these units as a return of capital. Being capital it is not liable to income tax but must be deducted from the cost of the units for capital gains tax purposes. 15

18 Appendix The Fund carried out stock lending activities for the purpose of efficient portfolio management and in order to generate income. Revenue earned from these activities is shown in the Statement of Total Return. Global Data Amount of securities and commodities on loan % of total lendable assets* Securities 1.77 Amount of assets engaged in each type of SFT Amount of assets % of AUM 17,931, * Total lendable assets excludes cash and cash equivalents. It also excludes other monetary amounts such as net debtors and creditors which are not deemed lendable assets. Concentration Data All collateral issuers (across all SFT) Collateral Fair value Issuer Holding 000 French Republic Government 2.75% 25/10/2027 9,565,800 10,500 United Kingdom Gilt Index Linked 0.375% 22/03/2062 Index Linked 724,978 1,887 United States Treasury 3.125% 15/11/2041 7,687,700 6,262 United States Treasury 4.375% 15/11/ , All counterparties Gross volume of outstanding transactions Fair value Counterparty 000 Merrill Lynch 6,137 Morgan Stanley 9,998 UBS 1,796 Aggregate Data Type and quality of collateral Fair value Type Quality* 000 Bonds Investment grade 18,834 18,834 * Quality of collateral has been interpreted as pertaining to bond instruments, which have been assessed and reported in accordance with whether they are considered investment grade, below investment grade or not-rated. 16

19 Appendix Maturity tenor of collateral Fair value Maturity 000 Rolling Maturity 18,834 18,834 Currency of collateral Fair value Currency 000 Sterling 18,834 18,834 Maturity tenor of SFTs Fair value Maturity 000 Rolling Maturity 17,931 17,931 Country in which counterparties are established Counterparty All counterparties are UK based Return and cost Gross return Cost % of overall Net return returns 000 Fund

20 Corporate information The information in this report is designed to enable unitholders to make an informed judgement on the activities of the Fund during the period it covers and the results of those activities at the end of the period. Phoenix Unit Trust Managers Limited is part of the Phoenix Group. Ignis Investment Services Limited is part of the Standard Life Aberdeen plc group and its subsidiaries. Unit prices appear daily on our website Dealing: Administration: Remuneration The Manager has adopted a remuneration policy, up-to-date details of which can be found on These details describe how remuneration and benefits are calculated and identify the committee which oversees and controls the policy. A paper copy of these details can be requested free of charge from the Manager. Following the implementation of UCITS V in the UK on 18 March 2016, all authorised UCITS Managers are required to comply with the UCITS V Remuneration Code from the start of their next accounting year. Under the UCITS V Directive, the Manager is required to disclose information relating to the remuneration paid to its staff for the financial year, split into fixed and variable remuneration. The Manager s Financial Year end is 31 December, it is therefore anticipated that the Manager s Remuneration Policy and associated financial disclosures will be made within the Annual Reports starting from 31 December 2017, following its first full performance period. Prior to this date, and in line with the FCA s guidance on the UCITS V remuneration disclosures, the Manager would be part way through its first performance period and the information available would not be relevant or provide a proper basis for comparison. Risks The price of units and the income from them can go down as well as up and investors may not get back the amount they invested, particularly in the case of early withdrawal. Tax levels and reliefs are those currently applicable and may change. The value of any tax relief depends on personal circumstances. Management charges on some funds are charged to capital and therefore a reduction in capital may occur. Depending on the fund, the value of your investment may change with currency movements. 18

21 Corporate information Manager Phoenix Unit Trust Managers Limited (PUTM) 1 Wythall Green Way Wythall Birmingham B47 6WG Tel: Registered in England No Authorised and regulated by the Financial Conduct Authority. Directors Andrew Moss PUTM Director, Chief Executive Phoenix Life; Shamira Mohammed PUTM Director, Finance Director Phoenix Life (resigned 13 June 2017); Craig Baker PUTM Director, Head of Investment Management Phoenix Life; Mike Urmston Non Executive Director of PUTM Registrar and correspondence address Phoenix Unit Trust Managers Limited PO Box Chelmsford CM99 2EN Authorised and regulated by the Financial Conduct Authority. Investment Adviser Ignis Investment Services Limited 1 George Street Edinburgh EH2 2LL Registered in Scotland No.SC Authorised and regulated by the Financial Conduct Authority. Trustee HSBC Bank plc 1-2 Lochside Way Edinburgh Park Edinburgh EH12 9DT Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Independent Auditor to the Fund Ernst & Young LLP Atria One 144 Morrison Street Edinburgh EH3 8EX Authorised status This Fund is an Authorised Unit Trust scheme under section 243 of the Financial Services & Markets Act 2000 and is categorised under the Collective Investment Schemes Sourcebook as a UCITS fund. 19

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24 Contact: Client Services Call: Correspondence Address: PO Box Chelmsford CM99 2EN Visit: phoenixunittrust.co.uk Telephone calls may be monitored and/or recorded for the purposes of security, internal training, accurate account operation, internal customer monitoring and to improve the quality of service. Please note the Key Investor Information Document (KIID), the supplementary Information Document (SID) and the full prospectus are available free of charge. These are available by contacting Client Services on Phoenix Unit Trust Managers Limited does not accept liability for any claims or losses of any nature arising directly or indirectly from use of the data or material in this report. The information supplied is not intended to constitute investment, tax, legal or other advice. Phoenix Unit Trust Managers Limited* is a Phoenix Group Company. Registered in England No Registered office: 1 Wythall Green Way, Wythall, Birmingham B47 6WG. *Authorised and regulated by the Financial Conduct Authority. B