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22226 007 08.2020

Family Asset TrustManager’s Interim Report and Accounts

For the period 1st January 2020 to 30th June 2020.

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Contents

Page

Management and Professional Services 3

Manager’s Report 4 - 7

Portfolio Statement 8 - 15

Statement of Manager’s Responsibilities 16

Statement of Total Return 17

Statement of Change in Unitholders’ Funds 17

Balance Sheet 18

Notes to the Financial Statements 19 - 26

General Information 27

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Management and Professional Services Manager and Registrar Family Investment Management Limited 16 West Street Brighton BN1 2RE Tel: 01273 724570 Fax: 01273 736958 Executive Directors: S.T. Nyahasha

J. Islam (appointed 1st January 2020)

P.J. Herz

N.C. Audhlam-Gardiner (appointed 1st January 2020)

S.C. Markey (resigned 31st December 2019) Non-Executive Directors: S.J. Colsell (appointed 27th August 2019)

S.A.H. Williams (appointed 27th August 2019) Registered in England No. 1915516 The Manager is authorised and regulated by the Financial Conduct Authority. The Manager is a member of the Investment Association. This report is issued and approved by the Manager. Investment Advisor State Street Global Advisors Limited 20 Churchill Place Canary Wharf London E14 5HJ Authorised and regulated by the Financial Conduct Authority. Trustee State Street Trustees Limited 20 Churchill Place Canary Wharf London E14 5HJ Authorised and regulated by the Financial Conduct Authority. Auditor KPMG LLP 15 Canada Square London E14 5GL OneFamily is a trading name for Family Investment Management Limited, which is a wholly owned subsidiary of Family Assurance Friendly Society Limited, a Friendly Society incorporated in England and Wales under the Friendly Societies Act 1992, Registration Number 939F.

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Manager’s Report

Investment Objective and Policy

The investment objective of the Family Asset Trust is to achieve long-term growth over a ten-year period by tracking the Financial Times Stock Exchange (‘FTSE’) 350 excluding Investment Trusts Total Return Share Index (‘the Index’). The Index represents the 350 largest companies by market capitalisation quoted on the London Stock Exchange excluding any Investment Trusts. It is expected that the associated tracking error will be 0.2%, although this cannot be guaranteed. The Index forms the target benchmark of the Trust as it matches the Trust’s investment objective.

The Trust aims to achieve its growth by re-investing any income arising from the investments the Trust holds and through any capital appreciation (increase in value) of the assets held.

Although the objective of the Trust is to achieve long-term growth, due to volatility of the markets this may not be achieved over the short term. The Trust aims to achieve a growth over an investment period of ten years and therefore investors in the Trust should expect to be invested for at least this length of time. There is no guarantee that growth will be achieved over this period, or over any specific time period.

To achieve its objective the policy of the Trust is to hold shares in the companies that make up the Index and can also use derivatives such as FTSE 100 Index-linked futures to help replicate the performance of companies within the Index that also appear in the FTSE 100. Derivatives are used for efficient portfolio management, by avoiding the need to undertake daily trading and thereby reducing the cost of transactions to be borne by the Trust, and to otherwise reduce risk and to generate additional growth.

The Trust may not consist of the exact composition and weighting of the Index in circumstances where the Manager has determined that this is expedient for reasons of poor liquidity or excessive cost to the Trust.

Where appropriate the Trust may use Transferable Securities, Approved Money Market Instruments, and units in Collective Investment Schemes, although these are not currently used under the existing investment strategy.

Generally, the Trust will remain fully invested subject to the holding of cash or near cash to enable the pursuit of the Trust’s investment objective or to assist in the redemption of units or the efficient management of the trust.

The value of the Index can fall as well as rise and since the Trust aims to track the performance of the Index, the value of your investments may also fall as well as rise. As a result, your capital is at risk and you may not receive back the amount you have invested.

Trust Performance

This report covers the period from 1st January 2020 to 30th June 2020. During this period, the Family Asset Trust recorded a gross of fees return of (17.6%) compared to the FTSE 350 excluding Investment Trusts Total Return Share Index of (18.3%). The net of fees return is shown in the table below.

The Trust outperformed its benchmark for the reporting period. The income recieved, cash drag and difference in stock weightings were the major contributors to the outperformance.

01/01/2020 – 30/06/2020

Family Asset Trust* (18.1%)

Source: Benchmark returns sourced from State Street Global Advisors (SSGA). Trust returns sourced from OneFamily (Unit price returns calculated on the basis bid to bid net of tax on dividend)

* Trust performance is based on price movement calculated using a nominal price at close, which will include all charges

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Manager’s Report

Market Background

In the UK, before the onset of COVID-19, the UK formally left the European Union and entered a transition period but the announcement that there would be no extension to the transition period beyond the end of 2020, sparked some concern. The UK economy and financial market suffered the most during the reporting period as the pandemic led to social distancing measures, temporary lock-downs, quarantines and mobility restriction. The government began a phased re-opening as daily new cases started to decrease. In June, UK moved to Stage 2 of re-opening outdoor retail and primary schools with other non-essential retailers. The positive sentiment over the re-opening helped financial markets in a strong initial recovery in second quarter.

Activity

Below is the market capitalisation split of the Trust.

Index Family Asset Trust Benchmark

June 2020 % June 2020 %

FTSE 350 Ex Investment Trusts TR Share Index 97.8% 100%

Cash 2.2% —

Outlook

The impressive coordination of policy response by Bank of England and the government, so swiftly delivered by UK authorities, was helpful during the outbreak of COVID-19. However, this policy support will not be enough as no amount of policy stimulus can compensate for the lack of underlying economic activity. Although the number of coronavirus cases has started to rise as phased reopening for businesses happen, the economy looks set to return to growth in 2021 following this year’s steep decline. Risks remain in respect of mulitiple wave outbreaks.

State Street Global Advisors 14th August 2020

Other Information

Investors will be aware of the coronavirus (COVID-19) outbreak and that the outlook for many capital markets has been volatile since March 2020. As a result, the NAV of the Trust has fluctuated since the half period-end. Whilst the impact of COVID-19 was reflected in Trust operations and global markets at period-end, the continued efforts to mitigate the pandemic through global lockdowns and government interventions have resulted in prolonged market uncertainty.

The Board has considered the resilience of the OneFamily Group and of the Family Asset Trust to withstand the impact of the virus, and have concluded that both are well placed to do so and that both continue as a going concern.

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Manager’s Report - continued

Ongoing Charges Figure (OCF)

At period ended OCF % June 2020* 1.09

* Annualised

December 2019 1.03

The OCF is a measure of the Trust’s ongoing charges. Apart from the initial charge, all other expenses are included in the OCF. The OCF is an accepted standard for the comparison of cost for authorised trusts, recognised throughout Europe.

Following Britain’s exit from the European Union it is anticipated that we will continue to use the OCF as a measure of the Trust’s ongoing charges.

Trust Tracking Error

At period ended Ex-Ante Tracking Error % Ex-Post Tracking Error %* June 2020 0.04 0.33

* Annualised For index-tracking UCITS (Undertakings for Collective Investment in Transferable Securities), the tracking error is usually defined as the volatility of the difference between the return of the index-tracking UCITS’ portfolio and the return of the benchmark or index. The tracking error helps measure the quality of the replication.

Ex-ante tracking error is calculated using a forecasting model Ex-post tracking error is calculated using historical returns

Authorised Status

The Family Asset Trust is an Authorised Unit Trust Scheme under section 243 of the Financial Services & Markets Act 2000 and is categorised as a UCITS Scheme under the FCA’s Collective Investment Scheme Sourcebook (COLL). The unitholders are not liable for the debts of the Trust.

Comparative Tables

Trust size Valuation Net Asset No. of Units Net Asset Value At period ended Basis Value (£) in issue Per Unit (pence)

June 2018 Bid 59,549,566 17,648,089.65 337.43 June 2019 Bid 56,071,750 16,701,092.21 335.74 December 2019 Bid 56,901,966 16,223,317.15 350.74 June 2020 Bid 46,048,222 16,031,544.34 287.24

Unit price range and income history Annual Income Unit Prices (Net Allocations) Accounting Highest Lowest Per Year Buying Selling Unit (pence) (pence) (pence)

2015 301.7 245.9 7.2946 2016 314.9 230.2 8.1979 2017 350.5 297.8 9.3219 2018 366.7 294.6 9.7952 2019 375.8 295.7 12.0749 2020* 375.3 229.5 —

* to the 30th June only

Past performance should not be seen as an indication of future performance.

Investors are reminded that the price of units and the income from them is not guaranteed and may go down as well as up.

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Risk and Reward Profile

Lower risk Higher risk

Typically lower rewards Typically higher rewards

The risk and reward profile is designed to give you a guide to the Trust’s level of risk and potential for growth. The higher the number, the greater the potential for growth, but the greater the risk. The Trust has a category of six; this is due to the fact that the risk and reward profile is based on volatility of price movement over a five-year period. Therefore the more the price moves during that period the higher the risk and reward profile will be. The risk and reward profile is a measure of the Trust’s past volatility in returns, and is therefore not an indicator of future performance.

1 2 3 4

6 5 7

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Portfolio Statement

The sector percentage figures give current percentage first followed by the percentage at the previous Annual Accounting date (December 2019). All investments held are listed on Official Exchanges.

As at 30th June 2020 Market Holding Value % of total Investments £'000 net assets UK - Equities (94.50%; 91.15%) Basic Materials Chemicals (0.71%; 0.73%) Croda International 3,081 162 0.35 Johnson Matthey 4,808 101 0.22 Synthomer 8,861 24 0.05 Victrex 2,094 41 0.09 328 0.71 Forest Products & Paper (0.74%; 0.68%) Mondi 11,934 180 0.39 Smurfit Kappa Group 6,019 162 0.35 342 0.74 Iron & Steel (0.12%; 0.12%) Evraz 14,472 42 0.09 Ferrexpo 7,337 12 0.03 54 0.12 Mining (7.76%; 6.59%) Anglo American 31,132 582 1.26 Antofagasta 8,669 81 0.18 BHP Group 53,389 883 1.92 Centamin 27,745 51 0.11 Fresnillo 4,541 38 0.08 Glencore 278,132 476 1.04 Hochschild Mining 6,540 13 0.03 KAZ Minerals 5,422 27 0.06 Petropavlovsk 74,227 19 0.04 Polymetal International 8,664 140 0.30 Rio Tinto 27,741 1,262 2.74 3,572 7.76 Communications Advertising (0.48%; 0.64%) Ascential 10,107 29 0.06 WPP 30,672 194 0.42 223 0.48 Internet (0.74%; 0.85%) Auto Trader Group 23,288 122 0.27 Moneysupermarket.com Group 13,512 44 0.10 Rightmove 21,380 117 0.25 Trainline 12,895 56 0.12 339 0.74 Media (0.90%; 1.04%) Euromoney Institutional Investor 2,404 19 0.04 Future 2,235 28 0.06 Informa 38,085 179 0.39 ITV 94,675 71 0.15 Pearson 20,683 119 0.26 416 0.90 Telecommunications (2.66%, 2.61%) Airtel Africa 28,486 18 0.04 BT Group 225,046 257 0.56 Spirent Communications 15,194 36 0.08 TalkTalk Telecom Group 15,929 14 0.03 Telecom Plus 1,357 19 0.04 Vodafone Group 682,718 880 1.91 1,224 2.66

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Portfolio Statement - continued

As at 30th June 2020 Market Holding Value % of total Investments £'000 net assets Cyclical Consumer Goods Airlines (0.21%; 0.24%) easyJet 5,802 39 0.09 Wizz Air Holdings 1,679 56 0.12 95 0.21 Apparel (0.35%; 0.40%) Burberry Group 10,199 163 0.35 Auto Manufacturers (0.01%; 0.01%) Aston Martin Lagonda Global Holdings 7,580 4 0.01 Auto Parts & Equipment (0.02%; 0.02%) TI Fluid Systems 5,336 10 0.02 Distribution & Wholesale (1.63%, 1.42%) Bunzl 8,634 187 0.41 Diploma 2,863 51 0.11 Ferguson 5,824 385 0.84 Inchcape 10,703 53 0.11 Travis Perkins 6,731 76 0.16 752 1.63 Entertainment (1.11%; 0.75%) 888 Holdings 7,378 13 0.03 Cineworld Group 25,242 15 0.03 Flutter Entertainment 3,053 324 0.70 Gamesys Group 1,995 17 0.04 GVC Holdings 14,583 108 0.23 Rank Group 4,816 7 0.02 William Hill 25,821 29 0.06 513 1.11 Food Service (1.08%; 1.31%) Compass Group 44,812 498 1.08 Home Builders (1.66%; 1.73%) Barratt Developments 25,883 128 0.28 Bellway 3,121 79 0.17 Bovis Homes Group 5,403 38 0.08 Countryside Properties 11,410 38 0.08 Crest Nicholson Holdings 6,864 14 0.03 Persimmon 8,137 186 0.41 Redrow 5,366 23 0.05 Taylor Wimpey 89,925 128 0.28 The Berkeley Group Holdings 3,110 130 0.28 764 1.66 Home Furnishings (0.18%; 0.18%) Howden Joinery Group 15,381 85 0.18 Leisure Time (0.07%; 0.24%) Carnival 3,093 30 0.07 Lodging (0.61%; 0.69%) InterContinental Hotels Group 4,670 166 0.36 Whitbread 5,095 113 0.25 279 0.61

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As at 30th June 2020 Market Holding Value % of total Investments £'000 net assets Retail (1.38%; 1.60%) AO World 7,493 11 0.02 Dixons Carphone 26,509 24 0.05 Domino's Pizza Group 12,376 38 0.08 Dunelm Group 2,614 31 0.07 Frasers Group 4,643 14 0.03 Grafton Group 5,821 38 0.08 J.D. Wetherspoon 1,901 19 0.04 JD Sports Fashion 9,771 61 0.13 Kingfisher 53,759 119 0.26 Marks & Spencer Group 50,606 50 0.11 Mitchells & Butler 4,474 8 0.02 Next 3,143 154 0.34 Pets at Home Group 12,360 30 0.07 Watches of Switzerland 3,572 10 0.02 WH Smith 2,606 28 0.06 635 1.38 Storage & Warehousing (0.08%; 0.07%) Safestore Holdings 5,181 38 0.08 Textiles (0.05%; 0.05%) Coats Group 37,932 21 0.05 Toys, Games & Hobbies (0.16%; 0.08%) Games Workshop Group 912 73 0.16 Energy Energy-Alternate Sources (0.09%; 0.08%) John Laing Group 12,177 42 0.09 Oil & Gas (6.36%; 8.31%) BP 507,110 1,558 3.38 Cairn Energy 15,065 18 0.04 DCC 2,415 162 0.35 Energean Oil & Gas 2,061 13 0.03 Petrofac 6,726 12 0.03 Royal Dutch Shell 'B' 94,443 1,156 2.51 Vivo Energy 10,368 8 0.02 2,927 6.36 Oil & Gas Services (0.07%; 0.15%) John Wood Group 17,116 33 0.07 Financial Banks (7.73%; 10.16%) Bank of Georgia Group 1,015 11 0.02 Barclays 441,305 505 1.10 HSBC Holdings 518,382 1,961 4.26 Investec 16,463 27 0.06 Lloyds Banking Group 1,795,240 560 1.22 Paragon Banking Group 6,555 23 0.05 Royal Bank of Scotland Group 119,400 145 0.31 Standard Chartered 65,889 290 0.63 TBC Bank Group 919 8 0.02 Virgin Money UK 31,824 29 0.06 3,559 7.73

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As at 30th June 2020 Market Holding Value % of total Investments £'000 net assets Diversified Financial Services (3.88%; 3.26%) AJ Bell 7,987 31 0.07 Ashmore Group 9,811 41 0.09 Brewin Dolphin Holdings 6,974 18 0.04 Close Brothers Group 3,788 42 0.09 Hargreaves Lansdown 9,178 150 0.32 IG Group Holdings 8,910 73 0.16 IntegraFin Holdings 4,953 23 0.05 Jupiter Fund Management 11,095 28 0.06 Liontrust Asset Management 1,450 19 0.04 London Stock Exchange Group 7,953 664 1.44 Man Group 38,508 50 0.11 Network International Holdings 11,176 49 0.11 Ninety One 8,231 17 0.04 OneSavings Bank 9,375 25 0.05 PayPoint 1,889 11 0.02 Provident Financial 5,993 10 0.02 Quilter 47,221 66 0.14 Rathbone Brothers 1,395 20 0.04 Sanne Group 3,297 21 0.05 Schroders 2,897 85 0.19 St James's Place 13,799 132 0.29 Standard Life Aberdeen 59,509 159 0.35 TP ICAP 14,450 51 0.11 1,785 3.88 Insurance (4.66%; 4.68%) Admiral Group 5,296 122 0.26 Aviva 97,437 267 0.58 Beazley 15,325 63 0.14 Direct Line Insurance Group 36,553 99 0.22 Hastings Group Holdings 7,925 15 0.03 Hiscox 8,478 67 0.15 Just Group 33,324 17 0.04 Lancashire Holdings 5,397 44 0.09 Legal & General Group 151,998 336 0.73 M&G 65,749 110 0.24 Phoenix Group Holdings 13,542 87 0.19 Prudential 65,853 802 1.74 RSA Insurance Group 24,602 101 0.22 Sabre Insurance Group 5,787 15 0.03 2,145 4.66 Investment Companies (0.31%; 0.52%) Melrose Industries 123,527 141 0.31 Private Equity (0.67%; 0.69%) 3i Group 24,451 204 0.44 Intermediate Capital Group 7,016 90 0.20 IP Group 23,269 15 0.03 309 0.67 Real Estate (0.22%; 0.29%) Capital & Counties Properties 19,156 28 0.06 CLS Holdings 4,530 8 0.02 Grainger 16,590 48 0.10 St. Modwen Properties 4,954 17 0.04 101 0.22

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As at 30th June 2020 Market Holding Value % of total Investments £'000 net assets REITS (2.29%; 2.28%) Assura 61,873 49 0.10 Big Yellow Group 3,940 40 0.09 Civitas Social Housing 17,317 19 0.04 Derwent London 2,670 74 0.16 GCP Student Living 13,188 16 0.03 Great Portland Estates 6,295 40 0.09 Hammerson 20,808 17 0.04 Land Securities Group 18,081 100 0.22 LondonMetric Property 23,263 49 0.11 LXI REIT 13,077 15 0.03 Primary Health Properties 29,370 46 0.10 Segro 30,510 273 0.59 Shaftesbury 6,128 32 0.07 Sirius Real Estate 24,264 18 0.04 The British Land Company 24,627 95 0.21 The UNITE Group 8,509 80 0.17 Tritax Big Box REIT 42,252 61 0.13 UK Commercial Property REIT 15,480 9 0.02 Workspace Group 3,397 22 0.05 1,055 2.29 Industrial Aerospace & Defence (1.43%; 1.77%) Avon Rubber 700 22 0.05 BAE Systems 82,189 397 0.86 Chemring Group 7,140 17 0.04 Meggitt 20,584 61 0.13 Rolls-Royce Holdings 43,980 126 0.27 Ultra Electronics Holdings 1,839 37 0.08 660 1.43 Building Materials (1.35%; 1.24%) CRH 20,032 551 1.20 Ibstock 8,785 16 0.04 Marshalls 4,837 30 0.06 Polypipe Group 5,354 23 0.05 620 1.35 Electronics (1.05%; 0.84%) Electrocomponents 11,283 76 0.16 Halma 9,418 217 0.47 Oxford Instruments 1,359 19 0.04 Renishaw 810 33 0.07 Rotork 22,442 63 0.14 Spectris 3,103 78 0.17 486 1.05 Engineering & Construction (0.47%; 0.39%) Balfour Beatty 18,167 47 0.10 Helios Towers 10,950 16 0.04 HomeServe 6,753 88 0.19 Morgan Sindall Group 1,302 16 0.04 Signature Aviation 20,700 48 0.10 215 0.47 Environmental Control (0.02%; nil) Biffa 4,654 9 0.02

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As at 30th June 2020 Market Holding Value % of total Investments £'000 net assets Machinery-Diversified (0.56%; 0.47%) Spirax-Sarco Engineering 1,867 186 0.41 The Weir Group 6,611 71 0.15 257 0.56 Metal Fabricate & Hardware (0.07%; 0.08%) Bodycote 4,971 31 0.07 Miscellaneous Manufacturers (0.57%; 0.60%) Hill & Smith Holdings 1,788 22 0.05 IMI 6,710 62 0.14 Morgan Advanced Materials 6,392 16 0.03 Smiths Group 10,037 141 0.31 Vesuvius 5,256 20 0.04 261 0.57 Packaging & Containers (0.27%; 0.26%) DS Smith 31,221 103 0.22 Essentra 7,305 21 0.05 124 0.27 Transportation (0.24%; 0.40%) Clarkson 735 16 0.03 FirstGroup 29,198 15 0.03 James Fisher & Sons 1,005 14 0.03 National Express Group 9,274 17 0.04 Royal Mail 22,761 41 0.09 The Go-Ahead Group 1,053 9 0.02 112 0.24 Non-Cyclical Consumer Goods Agriculture (4.85%; 4.10%) British American Tobacco 58,199 1,807 3.92 Genus 1,584 56 0.12 Imperial Brands 24,058 370 0.81 2,233 4.85 Beverages (3.58%; 3.45%) A.G. Barr 2,380 11 0.02 Britvic 6,695 51 0.11 C&C Group 7,792 18 0.04 Diageo 58,495 1,569 3.41 1,649 3.58 Biotechnology (0.05%; nil) Oxford BioMedica 1,568 11 0.03 PureTech Health 3,929 10 0.02 21 0.05 Commercial Services (5.78%; 4.88%) 4imprint Group 813 20 0.04 Aggreko 6,005 27 0.06 Ashtead Group 11,283 306 0.66 Babcock International Group 12,430 39 0.08 Calisen 4,975 9 0.02 Capita 42,572 19 0.04 Equiniti Group 8,554 12 0.03 Experian 22,825 643 1.40 G4S 38,577 44 0.10 Hays 38,650 46 0.10 Intertek Group 4,143 225 0.49 IWG 17,800 47 0.10 PageGroup 8,183 31 0.07 QinetiQ Group 14,185 42 0.09 RELX 47,431 887 1.93

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As at 30th June 2020 Market Holding Value % of total Investments £'000 net assets Commercial Services - continued Rentokil Initial 46,072 235 0.51 Savills 3,362 28 0.06 2,660 5.78 Cosmetics & Personal Care (2.64%; 2.10%) PZ Cussons 4,375 8 0.02 Unilever 27,760 1,209 2.62 1,217 2.64 Food (3.03%; 2.67%) Associated British Foods 8,926 171 0.37 Cranswick 1,248 45 0.10 Greencore Group 11,450 14 0.03 Greggs 2,402 39 0.09 Hilton Food Group 1,615 20 0.04 J. Sainsbury 42,026 88 0.19 Ocado Group 11,387 231 0.50 SSP Group 14,841 38 0.08 Tate & Lyle 11,817 79 0.17 Tesco 248,372 567 1.23 WM Morrison Supermarkets 55,214 105 0.23 1,397 3.03 Healthcare-Products (0.90%; 0.83%) ConvaTec Group 37,191 73 0.16 Smith & Nephew 22,751 342 0.74 415 0.90 Healthcare-Services (0.16%; 0.23%) Mediclinic International 10,209 27 0.06 UDG Healthcare 6,480 47 0.10 74 0.16 Household Products & Wares (2.58%; 1.69%) Reckitt Benckiser Group 16,012 1,190 2.58 Pharmaceuticals (10.94%; 8.47%) AstraZeneca 33,465 2,818 6.12 Dechra Pharmaceuticals 2,518 72 0.15 GlaxoSmithKline 125,963 2,061 4.48 Hikma Pharmaceuticals 4,026 89 0.19 5,040 10.94 Technology Computers (0.46%; 0.42%) Avast 13,180 70 0.15 Computacenter 1,678 28 0.06 FDM Group Holdings 2,284 20 0.05 Kainos Group 1,414 11 0.02 Serco Group 34,413 52 0.11 Softcat 2,995 33 0.07 214 0.46 Software (0.67%; 0.71%) AVEVA Group 1,587 65 0.14 Micro Focus International 8,666 37 0.08 Playtech 7,983 22 0.05 The Sage Group 27,523 185 0.40 309 0.67

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As at 30th June 2020 Market Holding Value % of total Investments £'000 net assets Utilities Electric (0.86%; 0.71%) ContourGlobal 3,181 6 0.01 Drax Group 10,502 27 0.06 SSE 26,579 363 0.79 396 0.86 Gas (2.05%; 1.65%) Centrica 146,126 56 0.12 National Grid 89,674 886 1.93 942 2.05 Water (0.93%; 0.72%) Pennon Group 10,838 121 0.26 Severn Trent 6,298 156 0.34 United Utilities Group 16,798 153 0.33 430 0.93 Total UK Equities 43,517 94.50 Overseas - Equities (4.29%; 5.22%) B&M European Value Retail 21,832 87 0.19 Coca-Cola Hellenic Bottling Company 4,644 94 0.20 International Consolidated Airlines Group 37,158 83 0.18 Just Eat Takeaway.com 3,048 257 0.56 Plus500 2,420 32 0.07 PPHE Hotel Group 840 9 0.02 RHI Magnesita 567 14 0.03 Royal Dutch Shell 'A' 104,383 1,343 2.92 TUI 11,021 42 0.09 XP Power 379 13 0.03 1,974 4.29 Total Overseas Equities 1,974 4.29 Investment Trusts (0.02%; 0.05%) Closed-end Funds (0.02%; 0.05%) BMO Commercial Property Trust 12,487 8 0.02 Total Investment Trusts 8 0.02 Investment Assets 45,499 98.81 Portfolio of Investments 45,499 98.81 Net Other Assets 549 1.19 Total Net Assets at 30th June 2020 46,048 100.00

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Statement of Manager’s Responsibilities

In relation to the Report and Accounts of the Trust The Collective Investment Schemes sourcebook published by the Financial Conduct Authority, (“the COLL Rules”) require the Manager to prepare financial statements for each annual accounting period which give a true and fair view of the financial position of the Trust and of the net income and net gains or losses on the property of the Trust for the period.

In preparing the financial statements the Manager is responsible for:

(a) Selecting suitable accounting policies and then applying them consistently;

(b) Making judgements and estimates that are reasonable and prudent;

(c) Following UK accounting standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland;

(d) Complying with the disclosure requirements of the Statement of Recommended Practice for UK Authorised Funds issued by the Investment Management Association in May 2014;

(e) Keeping proper accounting records which enable it to demonstrate that the financial statements as prepared comply with the above requirements;

(f) Assessing the Trust’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern;

(g) Using the going concern basis of accounting unless they either intend to liquidate the Trust or to cease operations, or have no realistic alternative but to do so;

(h) Such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; and

(i) Taking reasonable steps for the prevention and detection of fraud and irregularities. The Manager confirms that all requirements have been met in preparing the financial statements.

The Manager is responsible for the management of the Trust in accordance with its Trust Deed, Full Prospectus and the COLL rules.

The Manager is responsible for the maintenance and integrity of the OneFamily website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

In pursuing its investment objective set out on page 4 the Trust holds a number of financial instruments. These comprise:

Equity and non-equity shares. These are held in accordance with the Trust’s investment objective and policies;

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

Unitholders’ funds which represent investors’ monies which are invested on their behalf.

It is, and has been throughout the period under review, the Trust’s policy that no trading in financial instruments, other than on the Trust’s account, shall be undertaken (December 2019: Same).

Director’s Statement This Report is signed in accordance with the requirements of the Collective Investment Schemes Sourcebook.

Teddy Nyahasha Jim Islam 28th August 2020 Director Director

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Statement of Total Return

For the period 1st January 2020 to 30th June 2020

June June 2020 2019

Note £’000 £’000 £’000 £’000 Income Net capital (losses)/gains 3 (10,696) 5,148 Revenue 4 753 1,435 Expenses 5 (264) (284) Net revenue before taxation 489 1,151 Taxation 6 (7) (11) Net revenue after taxation for the period 482 1,140 Total return before distribution (10,214) 6,288 Finance costs: Distributions 7 — — Change in unitholders’ funds from investment activities (10,214) 6,288

Statement of Change in Unitholders’ Funds

For the period 1st January 2020 to 30th June 2020

June June 2020 2019 £’000 £’000 £’000 £’000 Opening Net Assets 56,902 51,554 Movement due to sale and repurchase of units: Amounts receivable on issue of units 193 214 Less: Amounts payable on cancellation of units (833) (1,984) (640) (1,770) Change in unitholders’ funds from investment activities (see above) (10,214) 6,288 Retained distribution on accumulation units — — Closing Net Assets 46,048 56,072 Opening Units 16,223,317.15 17,240,638.06

Units issued 63,387.82 65,881.37

Units cancelled (255,160.63) (605,427.22)

Closing Units 16,031,544.34 16,701,092.21

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Balance Sheet

As at 30th June 2020 June December June 2020 2019 2019 Note £’000 £’000 £’000 £’000 £’000 £’000 Assets Investment Assets 45,499 54,863 54,844 Debtors 8 120 301 458 Cash and bank balances 9 510 1,957 971 Total Other Assets 630 2,258 1,429 Total Assets 46,129 57,121 56,273 Liabilities Investment Liabilities — — — Creditors 10 81 219 201 Total Liabilities 81 219 201 Net Assets 46,048 56,902 56,072 Unitholders’ Funds 46,048 56,902 56,072

The accompanying notes form part of the financial statements.

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Notes to the Financial Statements

1. Accounting Policies

(a) Basis of Accounting The financial statements have been prepared under the historical cost convention, as modified by the revaluation of investments, and in accordance with the Statement of Recommended Practice for Authorised Funds issued by the Investment Association in May 2014 (AF SORP 2014) and Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. No changes have been made to accounting policies or to the accounting estimates used in applying these policies. The property of the Trust is stated as at close of business on the 30th June 2020, being the last business day of the financial period. The difference between the valuation at the close of business and that at the pricing point is disclosed in Note 12. The difference between these valuations is not considered to be significant.

(b) Revenue Dividends on equities are recognised when the security is quoted ex-dividend, and are shown net of any attributable tax credits. Interest on cash balances and other income are accounted for on an accruals basis. Underwriting commission is recognised when the issue takes place.

(c) Valuation All investments are valued at their fair value as at close of business on the 30th June 2020, being the last business day of the financial period. Listed investments have been valued at bid value as at close of business on the Balance Sheet date, and are shown net of any accrued interest which is included in the Balance Sheet as a debtor. Any unlisted, delisted, suspended or unapproved securities have been valued at the Manager’s best estimate.

(d) Taxation Current tax is provided for on the revenue liable to corporation tax less deductible expenses.

Deferred tax is provided for on all timing differences that have originated but not reversed by the Balance Sheet date. 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.

(e) Foreign Currencies The functional currency of the Trust is Great British Pounds (GBP).

Assets and liabilities have been translated into sterling at the exchange rate prevailing at the valuation point. Non-Sterling receipts and payments are translated at the rates applicable on the date of settlement. Any gains or losses arising from holding assets or liabilities denominated in currencies other than sterling are recognised as capital or income depending on the nature of the underlying item.

(f) Dividend Policy The net income of the Trust is regarded as the amount available for distribution; no adjustment is made in respect of either management expenses or stock dividends. Management expenses, to the extent that it is permitted, are charged against income.

(g) Special Dividends These were recognised as either income or capital depending upon the nature and circumstances of the dividend receivable.

(h) Treatment of Stock Dividends The Trust may elect to take up stock paid in lieu of a cash dividend. These stocks are recorded in the accounts at a value equal to the dividend cash equivalent. These dividends have been recognised as income and form part of the distribution. In the case of enhanced stock dividends, the amount by which such dividends exceed the cash dividends is treated as capital and does not form part of the distribution.

(i) Treatment of stocklending Stocklending income is recognised on an accruals basis net of associated costs. The Trust has not undertaken any Securities Financing Transactions during the accounting period in that it has not engaged in stock lending or stock borrowing, or the lending or borrowing of other financial instruments, a repurchase or reverse repurchase transaction, or a buy-sell back or sell-buy back transaction.

(j) Treatment of expenses All expenses, except for those relating to the purchases and sales of investments are charged initially against income.

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Notes to the Financial Statements - continued 2. Distribution Policy

All revenue received by the Trust less accrued income, revenue expenses and taxation is allocated to unit holders and accumulated. Distributions are made in accordance with the COLL Sourcebook. June June

2020 2019 £’000 £’000 3. Net Capital (Losses)/Gains on Investments

The net (losses)/gains on investments during the period comprise: (Losses)/gains on investments (10,686) 5,088 (Losses)/gains on futures (10) 60 Net (losses)/gains on investments (10,696) 5,148

4. Revenue UK dividends 682 1,323 UK property income distribution 9 18 Overseas dividends 57 93 Foreign currency gains 5 1 753 1,435 5. Expenses Payable to the Manager, associates of the Manager and agents of either of them: Manager’s periodic charge 245 270 245 270 Payable to the Trustee, associates of the Trustee and agents of either of them: Trustee fees 5 5 Custody transaction charges 2 3 Custodian charges 1 2 8 10 Other expenses

Audit fee (including VAT) 11 4 11 4 Total Expenses 264 284

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Notes to the Financial Statements - continued June June

2020 2019 £’000 £’000 6. Taxation

a.) Analysis of charge in the period Current tax: UK corporation tax on net income — — Adjustment in respect of prior periods — — — — Foreign tax 7 11 Total current tax (note b) 7 11 Deferred tax (note c) — — Total Taxation 7 11 Corporation tax has been provided at a rate of 20% (December 2019: 20%) b.) Factors affecting total tax charge for the period The tax assessed for the period is different than the standard rate of corporation tax in the UK for an Authorised Unit Trust (20%). The differences are explained below. Net income before tax 489 1,151 Tax at standard rate of 20% 98 230 Non taxable income* (148) (283) Overseas withholding tax suffered 7 11 Expenses not deductible for tax purposes — 1 Creation of tax losses 50 52 Current tax charge for period (note a) 7 11 c.) Provision for deferred tax Provision at start of period — — Deferred tax charge in statement of total return for period (note a) — — Provision at end of period — —

* As an Authorised Unit Trust these items are not subject to Corporation Tax. The Trust is exempt from Capital Gains Tax. The Trust has not recognised a deferred tax asset of £6,086k (December 2019: £6,036k), which has arisen as a result of having unutilised management expenses. These expenses will only be utilised if the tax treatment of capital gains or the Trust’s investment profile changes.

7. Finance Costs Distributions

Distributions are accumulated on an annual basis at the year end accounting date.

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Notes to the Financial Statements - continued June December June 2020 2019 2019 £’000 £’000 £’000 8. Debtors

Sales awaiting settlement — 136 187 Accrued income – UK dividends 98 144 252 Accrued income – overseas dividends 1 — 1 UK property income distributions 1 4 5 Foreign gain 1 — — Overseas tax recoverable 19 17 13

120 301 458 9. Cash and Bank Balances

Cash and bank balances 509 1,957 970 Futures margin balances 1 — 1 Total cash and bank balances 510 1,957 971

10. Creditors Purchases awaiting settlement — — 18 Amount due for cancellation of units 8 141 114 Accrued expenses 70 76 66 Foreign loss — 1 — Other creditors 3 1 3

81 219 201 11. Related Party Transactions

The Manager of Family Asset Trust, Family Investment Management Limited, is a wholly owned subsidiary of Family Assurance Friendly Society Limited (“the Society”), being the ultimate controlling party. The Society and Family Asset Trust are deemed to be related parties. In addition, State Street Trustees Limited, as Trustee, is also regarded as a related party.

All unit creations and cancellations, and all balances due as at 30th June 2020 in respect of creations and cancellations, as disclosed in the Balance Sheet, are executed with the Manager (December 2019: Same).

Total Management charges and Trustee fees incurred during the period are disclosed in note 5.

All bank balances are with the Trustee as at 30th June 2020 and are disclosed in the Balance Sheet.

Family Equity Plan Limited, being a subsidiary of the Society, is deemed to be a related party of Family Asset Trust.

As at 30th June 2020, their holdings in Family Asset Trust were:

£ Units Unit purchases Unit sales (millions) (millions) during period during period (millions) (millions) Society 27.164 9.457 — 0.057 Family Equity Plan Ltd 9.984 3.476 — 0.076 37.148 12.933 — 0.133

As at 30th June 2020 there was no outstanding balance payable to Family Equity Plan. There was an outstanding balance of £8,025 payable to the Society.

As at 31st December 2019, their holdings in Family Asset Trust were:

£ Units Unit purchases Unit sales (millions) (millions) during year during year (millions) (millions) Society 33.369 9.514 — 0.608 Family Equity Plan Ltd 12.458 3.552 — 0.201 45.827 13.066 — 0.809

As at 31st December 2019 there were no outstanding balances payable to Family Equity Plan Ltd. There was an outstanding balance of £141,440 payable to the Society.

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Notes to the Financial Statements - continued 12. Risk Management Financial Instruments are valued at fair value in accordance with Financial Reporting

Standard 102, chapters 11 and 12, as disclosed in note 1(c).

Management of risk

The principal risks arising from the Trust’s financial instruments are market price and credit risks. The Manager reviews (and agrees with the Trustee) policies for managing each of these risks. These policies have remained unchanged since the beginning of the period to which these financial statements relate, and the preceding period. Brexit

Following Brexit it is expected that the portfolio will continue to be managed as it currently is, albeit paying close attention to the markets as always. No changes have been made in anticipation of / mitigation of risks arising due to Brexit.

Fair values of financial instruments

All of the financial assets of the Trust are held at fair value. Financial liabilities and equity instruments The units of the Trust are puttable equity instruments and the main liability of the Trust is

that due to the unitholders. Puttable means that the unitholder can sell at their discretion the units they hold, back to the Trust for cash for the price quoted that day.

- At the Balance Sheet date the liability to redeem units to the unitholders was

£ 46,048,222 (December 2019; £56,901,966)

The fair value of the Trust is derived from the cancellation price (net of commission) of the units as at the pricing point of 10.00am on 30th June 2020, which is the lowest redeemable value of the Trust.

The book value of the Trust is derived from the closing bid price of the units as at 30th June 2020.

Set out below is a comparison by category of book values and fair values of the Trust’s

financial liabilities and equity instruments. Book Value Fair Value (fair value at close) (at pricing point) £ £ Primary financial liabilities and equity instruments held or issued to finance the Trust’s operations: Liability to redeem units Jun 2020 46,048,222 45,949,559 Dec 2019 56,901,966 56,915,124

Valuation of financial instruments carried at fair value

Fair values are determined using the following fair value hierarchy that reflects the significance of the inputs in measuring fair value:

Level 1 The unadjusted quoted price in an active market for identical assets or liabilities that the entity can access at the measurement date.

Level 2 Inputs other than quoted prices included within Level 1 that are observable (ie developed using market data) for the asset or liability, either directly or indirectly. The Trust currently has no assets of Level 2.

Level 3 Inputs are unobservable (i.e. for which market data is unavailable) for the asset or liability. The Trust currently has no assets of Level 3.

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Notes to the Financial Statements - continued Valuation of financial instruments carried at fair value - continued The table below summarises the fair values of the Trust’s financial assets that are accounted for at fair value, analysed by the valuation methodology used by the Group to derive the financial instruments fair value: June 2020 Level 1 Level 2 Level 3 Total £'000 £'000 £'000 £'000 Equities 45,491 — — 45,491 Investment Trusts 8 — — 8

Total 45,499 — — 45,499 December 2019 Level 1 Level 2 Level 3 Total £'000 £'000 £'000 £'000 Equities 54,835 — — 54,835 Investment Trusts 28 — — 28

Total 54,863 — — 54,863 Credit risk

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

The Trust only buys and sells investments through brokers, which have been approved by the Investment Advisor as an acceptable counter-party. The Manager undertakes periodic visits to the Investment Advisor to confirm that delegated functions are being performed in accordance with Financial Conduct Authority’s rules. Currency rate risk

The Trust invests in foreign equities, which are priced in local currency. The local value is converted to sterling at the prevailing exchange rate for valuation purposes. The Trust is exposed to the possibility of sharp currency movements, which can affect the value of the portfolio on a daily basis.

The Trust may be subject to short term exposure to exchange rate movement, for instance where there is a difference between the date when the investment purchase or sale is entered into and the date when settlement of the proceeds occurs. When the Trust enters into such a transaction which will involve the buying and selling of foreign currency in order to complete, a forward contract is entered into at the same time as the initial transaction in order to eliminate exchange rate risk.

The Trust receives income in currencies other than sterling and movements in exchange rates can affect the sterling values of this income. The Trust converts all receipts of income into sterling on or near the date of receipt. However it does not hedge or otherwise seek to avoid rate movement risk on income accrued but not received.

The Trust currently invests predominantly in UK equities; therefore no additional disclosure has been shown. Derivative risk

The Manager may employ derivatives solely for the purposes of Efficient Portfolio Management with the aim of reducing the risk profile of the Trust. The derivative exposure to the Trust obtained through efficient portfolio management techniques as at 30th June 2020 was 0.0% (December 2019; 0.0%).

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Notes to the Financial Statements - continued

Liquidity risk

The Trust’s assets comprise mainly of readily realisable securities, which can be readily sold. The main liability of the Trust is the redemption of any units that investors wish to sell.

Market price risk

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

The Investment Advisor meets monthly (or more often if appropriate) to consider the asset allocation of the portfolio in order to minimise the risk associated with particular countries or 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 described above and seeks to ensure that the individual stocks also meet the risk reward profile that is acceptable.

The Trust closely follows the FTSE 350, and as such is almost solely invested in high quality UK equities. Any movement in equity prices will have a direct and linear impact on the value of assets in the Trust and consequently the unit price.

Sensitivity to the most relevant risk has been assessed through tracking error; therefore no additional disclosure has been shown.

13. Portfolio Transaction Costs

The Trust incurs broker charges and transfer taxes as a necessary part of buying and selling the Trust’s underlying investments in order to achieve the investment objective. Broker commission and transfer taxes are paid by the Trust on each transaction. In addition, there is a dealing spread between the buying and selling prices of the underlying investments.

Purchases before transaction costs Commissions Taxes Total £'000 £'000 £'000 £'000

June 2020 Ordinary Shares 2,631 1 12 2,644 Corporate Actions 254 — — 254 Total 2,886 — 12 2,898

Transaction cost % of purchases total 0.00% 0.46%

Transaction cost % of average NAV 0.00% 0.02% Purchases before transaction costs Commissions Taxes Total £'000 £'000 £'000 £'000

December 2019

Ordinary Shares 2,901 1 13 2,915 Corporate Actions 1,053 — — 1,053 Total 3,954 1 13 3,968

Transaction cost % of purchases total 0.03% 0.45%

Transaction cost % of average NAV 0.00% 0.02%

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Notes to the Financial Statements - continued 13. Portfolio Transaction Costs - continued

Sales before transaction costs Commissions Taxes Total £'000 £'000 £'000 £'000

June 2020 Ordinary Shares 1,322 — — 1,322

Corporate Actions 254 — — 254

Total 1,576 — — 1,576 Transaction cost % of sales total 0.00% 0.00%

Transaction cost % of average NAV 0.00% 0.00%

Sales before

transaction costs Commissions Taxes Total £'000 £'000 £'000 £'000

December 2019

Ordinary Shares 3,610 (1) — 3,609 Corporate Actions 1,053 — — 1,053 Total 4,663 (1) — 4,662

Transaction cost % of sales total 0.03% —

Transaction cost % of average NAV 0.00% —

Average portfolio dealing spread at 30th June 2020 is 0.15%, (December 2019; 0.24%).

14. Contingent Liabilities

As at 30th June 2020 there are no contingent liabilities. (December 2019; none) 15. Non-Eligible Markets

As at 30th June 2020 there were no securities held that trade on non-eligible markets (December 2019; none).

16. Unit Classes

The Trust only issues accumulation units. The annual management charge for these units is 1% of the Trust’s Net Asset Value, calculated monthly.

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General Information

Launch: The Trust was launched on 24th January 1991 at an initial offer price of 50p. Distributions: The annual accounting year ends on 31st December with an interim accounting date on the 30th June. It is the policy of the Manager to only distribute income following the annual accounting date. Income is paid net of Income Tax, and distribution certificates are distributed on the last day of February. Reports: Manager’s reports for the Family Asset Trust are published every six months on the last day of February and 31st August. Prices: There are two prices quoted for the Trust, a selling price and a buying price. The selling price is the price at which you can sell your units back to the Manager and the buying price is the price at which you can buy units from the Manager. Prices are calculated as at 10.00am on each business day. Prices and the estimated yield generated by the Trust are published on the Investment Association and Financial Express website www.fundlistings.com. Prices are also available on www.onefamily.com, or by contacting our Customer Services Team on 0344 8 920 920 (telephone calls may be recorded or monitored). Units: The Family Asset Trust only issues accumulation units. Accumulation units ensure that any distribution is added to the value of the investment. Buying and selling units: The Manager can receive written requests to buy or sell units during normal business hours. The units will be bought and sold following the next price calculation. Cancellation rights: Investors entering into a contract to purchase units will have the right to cancel said purchase within 14 days of receipt of the cancellation notice. Please note that, for lump sum investments, clients who exercise their right to cancel may be charged for any market loss (shortfall) incurred. Prospectus: The Full Prospectus for the Family Asset Trust is available on request from the Manager. Yield: The historical yield of the Trust is quoted on the Investment Association and Financial Express website www.fundlistings.com. The yield shown reflects the distributions paid or declared by the Trust over the past twelve months, as a percentage of the unit price of the Trust. It does not include any initial sum paid in order to invest in the Trust and investors may be subject to tax on distributions. Other Authorised Funds managed by Family Investment Management Limited: The Full Prospectuses and latest Report and Accounts for any of the Authorised Funds managed by Family Investment Management Limited are available upon request. Assessment of Value The assessment of value for the Family Asset Trust is available on the OneFamily website (www.onefamily.com) in the Financial Reports section. This report is updated annually.

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Managed by Family Investment Management Limited

16 West Street Brighton

East Sussex BN1 2RE Tel: 01273 724570 Fax: 01273 736958

Member of the Investment Association Authorised and regulated by the Financial Conduct Authority

The Family Asset Trust is not in any way sponsored, endorsed, sold or promoted by FTSE International Limited (FTSE), the London Stock Exchange Plc (the Exchange) or The Financial Times Limited (FT). Neither FTSE, the Exchange nor the FT provide any indication or guarantee (including any warranty or representation) of the results that may be obtained from the indices and/or the figures at which the indices stand at any particular time on any particular day. The indices are compiled and calculated by FTSE. Neither FTSE, the Exchange nor the FT will be liable to any person for any error in the indices or be under any obligation to advise anyone of any such error. FTSE® is a trade mark of the Exchange and the FT and is used by FTSE under licence. OneFamily is a trading name of Family Investment Management Limited (Co. No. 1915516). Registered in England & Wales at 16-17 West Street, Brighton, BN1 2RL, United Kingdom. Family Investment Management Limited is authorised and regulated by the Financial Conduct Authority.

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