phoenix unit trust managers manager’s annualreport/media/files/p/phoenix-utm/... · statement of...

PHOENIX UNIT TRUST MANAGERS

MANAGER’S ANNUAL REPORTFor the year: 1 February 2018 to 31 January 2019

PUTM BOTHWELL NORTH AMERICA FUND

Contents

Investment review* 2-3

Portfolio of investments* 4-22

Top ten purchases and sales 23

Statistical information* 24-27

Statement of total return & change in net assets attributable to unitholders 28

Balance sheet 29

Notes to the financial statements 30-40

Distribution tables 41-42

Responsibilities of the manager and the trustee 43

Trustee’s report and directors’ statement 44

Independent auditor’s report 45-47

Appendix 48-49

Corporate information* 50-52

*These collectively comprise the Authorised Fund Manager’s Report.

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2

Dear Investor

Welcome to the PUTM Bothwell North America Fundreport for 12 months to 31st January 2019.

Performance Review

Over the review period the PUTM Bothwell NorthAmerica Fund returned 5.04%. (Source: BNP IRP, Grossof AMC, GBP. This is compared to its benchmark indexreturn of 5.04%. (Source: FTSE Custom AW Dev NorthAmerica Index).

In the table below, you can see how the Fund performedagainst its benchmark index over the last five discrete oneyear periods.

Investment review

Source: Fund performance is gross of AMC, GBP, based upon end of day pricing. Benchmark Index performance isFTSE Custom AW Dev North America Index.

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 backthe full amount invested.

Please note that all past performance figures are calculated without taking the initial charge into account.

Standardised Past Performance

PUTM Bothwell NorthAmerica Fund 5.0 6.8 7.5 31.5 3.2 21.7

Benchmark Index 5.0 6.6 4.6 35.3 5.2 25.0

Jan 18-19 Aug 17-Jan 18 Jan 17-31 Jul 17 Jan 16-17 Jan 15-16 Jan 14-15% growth % growth % growth % growth % growth % growth(Janus (Janus (ASI)

Henderson) Henderson)

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Portfolio and Market Review

Janus Henderson assumed responsibility for the PUTMBothwell North American Fund on the 1st August 2017and transitioned it from a formerly active strategy to apassive strategy, tracking the FTSE North American index.Following a period to allow for this transition,performance was measured from 22nd August 2017.

North American stocks rose by 5.35% in sterling termsover the year under review (as measured by the FTSENorth America index) but fell 2.55% in local currency.Sterling returns were boosted by the pound’s weaknessagainst the US dollar. The market remained in an uptrenduntil October (the S&P 500, Nasdaq and Dow Jones setnew all-time highs) but global markets began to fall onfears of slowing earnings growth, the continuing tradedisputes and tightening monetary policy. The final monthof the year proved to be the worst December for returnssince the Great Depression. The US Federal Reserveraised interest rates four times during the period, to2.5%, and guided to two further rate hikes in 2019.However, the central bank re-evaluated the scene in thenew year, determining that “the case for raising rates hasweakened somewhat”. This boosted sentiment andplayed a part in domestic markets enjoying their mostupbeat January in over 30 years. US GDP growth wanedin the third quarter, falling back to 3.4% annualisedgrowth, down from 4.2% in the second quarter, althoughthe third-quarter figure was still ahead of consensusgrowth- potential estimates.

Market Outlook and Fund Strategy

The final quarter of 2018 gave way to a more risk-off andvolatile environment as ongoing monetary tightening andliquidity withdrawal by central bankers conflicted withweakness in some of the lead economic indicatorsglobally. This volatility in markets has produced a moreconciliatory and dovish tone from the US Federal Reserveas we enter 2019 and markets responded positively inJanuary. If equity markets can discern a more gradualpath and lower peak to US interest rates, this couldprovide continued support for equities if it is seen asreducing the risk of propagating economic contractionthrough policy error. Political risk remains elevated,however, with markets looking for solutions to the globaltrade issues. Against this backdrop, additional attentionwill be paid to the robustness of corporate earnings. Forconsumers, wages finally are rising and the economyremains in relatively good shape. In contrast, manycompanies could be facing a very different environmentfrom the past decade, during which earnings growth wasoften achieved through financial engineering, andproductivity increased through global outsourcing. Risinginterest rates, trade barriers and elevated debt levels oncorporate balance sheets could make it harder for certaincompanies to generate growth.

Investment review

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Portfolio of investments (unaudited)

Investments held at 31 January 2019 Market Percentage of value total net assets Holding Investment £000 %

United States (31/01/18 – 90.06%) 90.63 Aerospace & Defence (31/01/18 – 2.38%) 2.26 42,375 Boeing 12,414 0.83 20,483 General Dynamics 2,664 0.18 3,550 Huntington Ingalls Industries 557 0.04 6,174 L-3 Communications 924 0.06 19,074 Lockheed Martin 4,200 0.28 12,777 Northrop Grumman 2,677 0.18 22,234 Raytheon 2,787 0.19 19,040 Textron 770 0.05 3,813 TransDigm Group 1,133 0.07 63,243 United Technologies 5,677 0.38

Automobiles & Parts (31/01/18 – 0.91%) 0.79 7,206 Autoliv 437 0.03 17,021 BorgWarner 529 0.03 301,765 Ford Motor 2,019 0.14 5,816 Garrett Motion 71 0.00 101,221 General Motors 3,000 0.20 26,355 Gentex 424 0.03 11,428 Genuine Parts 867 0.06 20,862 Goodyear Tire & Rubber 336 0.02 14,033 Harley-Davidson 393 0.03 5,862 Lear 686 0.05 24,656 LKQ 491 0.03 10,900 Tesla Motors 2,542 0.17

Banks (31/01/18 – 6.45%) 5.58 722,450 Bank of America 15,625 1.05 73,416 Bank of New York Mellon 2,920 0.19 57,614 BB&T Financial 2,136 0.14 197,041 Citigroup 9,655 0.65 36,928 Citizens Financial Group 952 0.06 14,004 Comerica 838 0.06 6,161 Commerce Bancshares 280 0.02 52,491 Fifth Third Bancorp 1,070 0.07 12,164 First Republic Bank 893 0.06 86,513 Huntingdon Bancshares 870 0.06 259,765 JP Morgan Chase & Co 20,438 1.37 82,360 KeyCorp 1,031 0.07 11,407 M&T Bank 1,426 0.09 42,266 New York Community Bancorp 373 0.01 31,251 Peoples United Financial 389 0.03 36,348 PNC Financial Services 3,389 0.23 85,421 Regions Financial 984 0.07 34,919 SunTrust Banks 1,577 0.11

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Banks (cont’d) 4,029 SVB Financial 715 0.05 119,286 US Bancorp 4,638 0.31 336,601 Wells Fargo 12,510 0.84 16,195 Zions Bancorporation 586 0.04

Beverages (31/01/18 – 1.74%) 1.65 17,688 Brown-Forman B 635 0.04 299,161 Coca-Cola 10,984 0.74 11,722 Constellation Brands 1,547 0.10 13,639 Molson Coors Brewing 690 0.05 31,001 Monster Beverage 1,349 0.09 110,655 PepsiCo 9,478 0.63

Chemicals (31/01/18 – 1.58%) 1.28 17,780 Air Products & Chemicals 2,221 0.15 8,589 Albemarle 527 0.03 5,592 Ashland Global Holdings 323 0.02 7,151 Avery Dennison 568 0.04 10,303 Celanese A 750 0.05 18,814 CF Industries 624 0.04 181,799 Dow-Dupont 7,437 0.50 11,232 Eastman Chemicals 688 0.05 20,448 Ecolab 2,460 0.16 10,483 FMC 636 0.04 6,281 International Flavours & Fragrances 677 0.05 19,408 PPG Industries 1,556 0.10 28,571 The Mosaic Company 701 0.05

Construction & Materials (31/01/18 – 0.47%) 0.39 3,730 Acuity Brands 343 0.02 11,961 Fluor New 333 0.02 12,752 Fortune Brands Home & Security 439 0.03 10,291 Jacobs Engineering Group 507 0.03 4,915 Martin Marietta Materials 660 0.05 25,417 Masco 626 0.04 6,805 Sherwin-Williams 2,180 0.15 10,280 Vulcan Materials 794 0.05

Electricity (31/01/18 – 1.86%) 2.22 56,631 AES 705 0.05 18,883 Alliant Energy 638 0.04 40,099 American Electric Power 2,412 0.16 25,535 CMS Energy 1,013 0.07 26,267 Consolidation Edison 1,551 0.10 61,240 Dominion Energy 3,270 0.22 14,063 DTE Energy 1,259 0.08

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Electricty (cont’d) 25,669 Edison International 1,111 0.07 14,340 Entergy 972 0.06 27,878 Eversource Energy 1,472 0.10 77,395 Exelon 2,810 0.19 38,192 FirstEnergy 1,138 0.08 36,180 NextEra Energy 4,922 0.33 25,329 NRG Energy 788 0.05 40,995 PG&E 404 0.03 9,093 Pinnacle West Capital 609 0.04 55,495 PPL 1,321 0.09 42,095 Public Service Enterprise Group 1,745 0.12 80,694 Southern 2,980 0.20 26,254 Vistra Energy 501 0.03 39,497 Xcel Energy 1,572 0.11

Electronic & Electrical Equipment (31/01/18 – 0.74%) 0.74 24,630 Agilent Technologies 1,424 0.09 18,086 Ametek 1,002 0.07 22,687 Amphenol 1,516 0.10 7,418 Arrow Electronics 428 0.03 48,517 Emerson Electric 2,415 0.16 2,726 IPG Photonics Corporation 276 0.02 15,084 Keysight Technologies 849 0.06 1,956 Mettler Toledo International 949 0.06 7,646 Roper Technologies 1,646 0.11 19,823 Trimble Navigation 567 0.04

Financial Services (31/01/18 – 4.89%) 4.95 4,593 Affiliated Managers 366 0.02 39,036 Ally Financial 773 0.05 52,278 American Express 4,081 0.27 10,930 Ameriprise Financial 1,052 0.07 22,536 Ameritrade Holding 958 0.06 9,844 BlackRock 3,106 0.21 37,358 Capital One Financial 2,288 0.15 9,786 CBOE Global Holdings 687 0.05 26,685 Chicago Mercantile Exchange 3,696 0.25 12,054 CIT Group 423 0.03 26,552 Discover Financial Services 1,362 0.09 9,314 Equifax 758 0.05 21,932 E-Trade Financial 778 0.05 23,582 Frank Resources 530 0.04 27,585 Goldman Sachs Group 4,152 0.28 45,989 IntercontinentalExchange 2,684 0.18 71,416 Mastercard 11,468 0.77

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Financial Services (cont’d) 13,601 Moody’s 1,639 0.11 104,017 Morgan Stanley 3,345 0.22 6,566 MSCI 850 0.06 9,315 NASDAQ 623 0.04 16,387 Northern Trust 1,102 0.07 10,342 Raymond James Financial 633 0.04 18,891 S&P Global 2,751 0.18 95,290 Schwab (Charles) 3,387 0.23 11,000 SEI Investments 397 0.03 21,508 Square 1,166 0.08 30,333 State Street 1,635 0.11 57,905 Synchrony Financial 1,322 0.09 16,844 T Rowe Price Group 1,197 0.08 137,921 Visa 14,150 0.95 39,833 Western Union 552 0.04

Fixed Line Telecommunications (31/01/18 – 1.77%) 1.83 565,192 AT&T 12,907 0.87 76,649 CenturyLink 892 0.06 321,648 Verizon Communications 13,456 0.90

Food & Drug Retailers (31/01/18 – 1.04%) 1.03 12,453 AmerisourceBergen 789 0.05 25,075 Cardinal Health 952 0.06 100,941 CVS Health 5,030 0.34 13,189 Keurig Dr Pepper 273 0.02 65,912 Kroger 1,419 0.10 15,479 McKesson HBOC 1,506 0.10 36,829 Sysco 1,787 0.12 66,244 Walgreens Boots Alliance 3,638 0.24

Food Producers (31/01/18 – 1.33%) 1.07 45,300 Archer Daniels Midland 1,547 0.10 14,422 Campbell Soup 388 0.03 28,856 ConAgra Foods 475 0.03 48,644 General Mills 1,643 0.11 10,767 Hershey 868 0.06 21,382 Hormel Foods 688 0.05 5,772 Ingredion 434 0.03 9,279 JM Smucker 740 0.05 20,937 Kellogg 939 0.06 45,148 Kraft Heinz 1,649 0.11 11,406 Lamb Weston Holdings 626 0.04 9,112 McCormick 857 0.06 116,270 Mondelez International 4,090 0.27 21,707 Tyson Foods 1,022 0.07

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Forestry & Paper (31/01/18 – 0.09%) 0.08 32,802 International Paper 1,183 0.08

Gas, Water & Multiutilities (31/01/18 – 0.67%) 0.77 19,429 Ameren 1,024 0.07 15,664 American Water Works 1,140 0.08 34,743 CenterPoint Energy 816 0.06 56,372 Duke Energy 3,768 0.25 27,182 Nisource 563 0.04 20,494 Sempra Energy 1,822 0.12 24,853 WEC Energy Group 1,381 0.09 20,940 Evergy 912 0.06

General Industrials (31/01/18 – 2.32%) 1.98 44,516 3M Co 6,780 0.45 27,230 Ball 1,082 0.07 48,833 Danaher 4,117 0.28 33,417 Eaton 1,936 0.13 23,701 Fortive 1,351 0.09 674,841 General Electric 5,222 0.35 58,163 Honeywell International 6,352 0.43 7,325 Packaging Coporation of America 525 0.04 10,049 Parker-Hannifin 1,259 0.08 11,957 Sealed Air 359 0.02 19,708 WestRock Company 610 0.04

General Retailers (31/01/18 – 6.52%) 7.47 5,729 Advance Auto Parts 694 0.05 31,906 Amazon.com 41,688 2.79 2,035 Autozone 1,310 0.09 20,403 Best Buy 919 0.06 14,597 Carmax 652 0.04 12,602 Copart 485 0.03 34,008 Costco Wholesale 5,547 0.37 20,564 Dollar General 1,804 0.12 17,953 Dollar Tree 1,321 0.09 11,156 Foot Locker 474 0.03 19,272 Gap 373 0.03 17,260 H&R Block 309 0.02 89,275 Home Depot 12,457 0.83 13,869 Kohl’s 724 0.05 19,152 Limited Brands 405 0.03 63,120 Lowe’s Companies 4,615 0.31 24,755 Macy’s 495 0.03 2,905 MercadoLibre 804 0.05 32,577 NetFlix 8,408 0.56 9,426 Nordstrom 333 0.02

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General Retailers (cont’d) 6,224 O’Reilly Automotive 1,631 0.11 93,142 PayPal Holdings 6,284 0.42 32,657 Quarte Retail 539 0.04 13,382 Rollins 379 0.03 28,244 Ross Stores 1,978 0.13 21,784 Tapestry 641 0.04 41,639 Target 2,310 0.16 8,451 Tiffany & Co. 570 0.04 96,322 TJX 3,635 0.24 10,508 Tractor Supply Company 682 0.05 4,530 Ulta Beauty 1,005 0.07 111,069 Wal-Mart Stores 8,112 0.54

Healthcare Equipment & Services (31/01/18 – 4.11%) 4.62 3,028 Abiomed 808 0.05 6,250 Align Technology 1,183 0.08 19,769 Anthem 4,555 0.31 40,513 Baxter International 2,232 0.15 20,944 Becton Dickinson 3,971 0.27 105,459 Boston Scientific 3,056 0.20 15,786 Centene 1,567 0.10 9,862 DaVita 421 0.03 17,790 Dentsply Sirona 567 0.04 16,352 Edwards Lifesciences 2,118 0.14 22,214 HCA Holdings 2,354 0.16 22,014 Hologic 743 0.05 11,034 Humana 2,592 0.17 6,715 Idexx Laboratories 1,086 0.07 8,971 Intuitive Surgical 3,571 0.24 8,637 Laboratory Corporation of America Holdings 915 0.06 10,719 Quest Diagnostics 712 0.05 11,031 ResMed 798 0.05 12,392 Schein Henry 732 0.05 26,992 Stryker 3,644 0.24 3,268 Teleflex 679 0.05 3,639 The Cooper Companies 771 0.05 31,332 Thermo Fisher Scientific 5,849 0.39 74,145 UnitedHealth Group 15,223 1.02 7,046 Universal Health Services 710 0.05 7,282 Varian Medical Systems 731 0.05 5,945 Waters 1,045 0.07 15,975 Zimmer Biomet Holdings 1,329 0.09 28,838 Half Moon 4,381 0.29 3,264 Well Care 686 0.05

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Household Goods (31/01/18 – 1.48%) 1.57 20,191 Church & Dwight 991 0.07 9,770 Clorox 1,102 0.07 29,502 D.R.Horton 862 0.06 26,768 Jefferies Financial Group 424 0.03 10,823 Leggett & Platt 337 0.02 19,666 Lennar 709 0.05 4,728 Mohawk Industries 463 0.03 38,017 Newell Brands 613 0.04 256 NVR 518 0.03 194,130 Procter & Gamble 14,240 0.95 24,752 Pulte Group 523 0.04 4,751 Snap-on 600 0.04 11,867 Stanley Black & Decker 1,140 0.08 12,290 Toll Brothers 345 0.02 5,657 Whirlpool 572 0.04

Industrial Engineering (31/01/18 – 1.20%) 1.13 45,821 Caterpillar 4,635 0.31 11,761 Cummins 1,315 0.09 24,331 Deere & Company 3,034 0.20 12,217 Dover 815 0.05 11,878 Flowserve 397 0.03 26,740 Illinois Tool Works 2,790 0.19 26,574 Paccar 1,324 0.09 10,008 Rockwell Automation 1,289 0.09 7,104 Wabtec 373 0.02 15,530 Xylem 841 0.06

Industrial Metals (31/01/18 – 0.23%) 0.22 30,843 Arconic 441 0.03 126,121 Freeport McMoRan Copper 1,116 0.08 27,127 Nucor 1,262 0.08 14,694 Steel Dynamics 409 0.03

Industrial Transportation (31/01/18 – 1.51%) 1.57 10,448 CH Robinson Worldwide 689 0.05 65,043 CSX 3,249 0.22 14,326 Expeditors International Washington 755 0.05 19,333 Fedex 2,610 0.17 7,025 J.B. Hunt Transport Services 572 0.04 8,333 Kansas City Southern 670 0.04 21,766 Norfolk Southern 2,775 0.18 4,605 Old Dominion Freight Line 476 0.03 57,753 Union Pacific 6,982 0.47 54,071 United Parcel Services 4,330 0.29 8,987 XPO Logistics 415 0.03

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Leisure Goods (31/01/18 – 0.45%) 0.37 59,927 Activision 2,152 0.15 24,260 Electronic Arts 1,701 0.11 8,749 Hasbro 602 0.04 4,788 Polaris Industries 305 0.02 9,723 Take Two Interactive 780 0.05

Life Insurance (31/01/18 – 0.78%) 0.69 61,216 Aflac 2,231 0.15 5,381 Assurant 394 0.03 17,057 Lincoln National 758 0.05 67,540 Metlife 2,345 0.16 21,058 Principal Financial Group 801 0.05 31,814 Prudential Financial 2,227 0.15 9,801 Torchmark 624 0.04 18,632 Unum Group 492 0.03 12,380 Voya Financial 437 0.03

Media (31/01/18 – 2.75%) 2.36 25,038 CBS 941 0.06 13,616 Charter Communications A 3,425 0.23 357,482 Comcast 9,933 0.66 38,350 Discovery Communications 776 0.05 17,380 Dish Network 405 0.03 3,948 Dun & Bradstreet 434 0.03 32,532 Interpublic Group of Companies 562 0.04 9,735 Liberty Broadband 629 0.04 42,686 Liberty Global 764 0.05 20,957 Liberty Siriusxm Group 636 0.04 41,176 News 401 0.03 16,762 Omnicom 992 0.07 95,177 Sirius XM Holdings 422 0.03 82,253 Twenty-First Century Fox ‘A’ 3,078 0.21 36,965 Twenty-First Century Fox ‘B’ 1,378 0.09 27,957 Viacom 625 0.04 116,497 Walt Disney 9,874 0.66

Mining (31/01/18 – 0.12%) 0.09 16,581 Alcoa Upstream Corporation 374 0.02 38,274 Newmont Mining 993 0.07

Mobile Telecommunications (31/01/18 – 0.07%) 0.08 22,384 T-Mobile US 1,185 0.08

Non-Life Insurance (31/01/18 – 2.76%) 2.78 68,888 AIG 2,264 0.15 1,282 Alleghany 618 0.04 26,463 Allstate 1,768 0.12

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Non-Life Insurance (cont’d) 30,738 Arch Capital Group 686 0.05 33 Berkshire Hathaway 7,752 0.52 101,199 Berkshire Hathaway B 15,858 1.06 13,786 Brown & Brown 285 0.02 12,625 Cincinnati Financial 778 0.05 14,699 Gallagher (Arthur J) 834 0.05 30,414 Hartford Financial Services 1,084 0.07 22,963 Loews 836 0.06 1,106 Markel 883 0.06 38,905 Marsh & McLennan 2,608 0.17 26,368 Old Republic International 404 0.03 45,513 Progressive 2,327 0.16 21,883 Travelers 2,088 0.14 8,399 W.R. Berkley 491 0.03

Oil & Gas Producers (31/01/18 – 4.59%) 4.26 40,157 Anadarko Petroleum 1,444 0.10 26,317 Antero Resources Corporation 201 0.01 30,249 Apache 754 0.05 36,240 Cabot Oil & Gas 687 0.05 16,235 Cheniere Energy 809 0.05 149,123 Chevron 12,987 0.87 7,362 Cimarex Energy 422 0.03 16,171 Concho Resources 1,473 0.10 92,590 Conoco Phillips 4,764 0.32 42,434 Devon Energy 860 0.06 12,814 Diamondback Energy 1,005 0.07 46,446 EOG Resources 3,502 0.23 23,832 EQT 352 0.02 329,292 Exxon Mobil 18,341 1.23 22,245 Hess 914 0.06 14,789 HollyFrontier 633 0.04 67,788 Marathon Oil Company 813 0.05 51,209 Marathon Petroleum 2,580 0.17 13,558 Murphy Oil 282 0.02 14,869 Newfield Exploration 207 0.01 41,653 Noble Energy 707 0.05 61,558 Occidental Petroleum 3,124 0.21 34,352 Phillips 66 2,492 0.17 13,286 Pioneer Natural Resources 1,437 0.10 16,725 Targa Resources 547 0.04 33,388 Valero Energy 2,228 0.15

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Oil Equipment & Services (31/01/18 – 0.90%) 0.86 33,747 Baker Hughes 604 0.04 19,065 Equitrans Midstream 301 0.02 30,889 Oneok 1,508 0.10 67,878 Halliburton 1,618 0.11 9,184 Helmerich & Payne 391 0.02 147,328 Kinder Morgan 2,026 0.14 30,608 National-Oilwell 686 0.05 109,781 Schlumberger 3,690 0.25 98,209 Williams Companies 2,011 0.13

Personal Goods (31/01/18 – 1.16%) 1.15 65,352 Colgate-Palmolive 3,213 0.22 37,555 Coty 222 0.01 16,734 Estee Lauder 1,735 0.12 29,652 Hanesbrands 338 0.02 26,781 Kimberly-Clark 2,268 0.15 7,640 Lululemon Athletica 858 0.06 98,084 Nike B 6,104 0.41 6,129 PVH Corporation 508 0.03 4,685 Ralph Lauren 414 0.03 24,231 VF 1,550 0.10

Pharmaceuticals & Biotechnology (31/01/18 – 7.03%) 7.35 132,891 Abbott Laboratories 7,371 0.49 118,680 AbbVie 7,244 0.48 16,883 Alexion Pharmaceuticals 1,578 0.11 6,585 Alnylam Pharmaceuticals 418 0.03 50,564 Amgen 7,187 0.48 15,712 Biogen IDEC 3,984 0.27 13,618 BioMarin Pharmaceutical 1,016 0.07 128,570 Bristol Myers Squibb 4,826 0.32 54,705 Celgene 3,677 0.25 73,696 Eli Lilly 6,713 0.45 101,120 Gilead Sciences 5,379 0.36 11,794 Illumina 2,508 0.17 12,991 Incyte 796 0.05 13,147 IQVIA Holdings 1,288 0.09 208,492 Johnson & Johnson 21,246 1.42 207,450 Merck & Co 11,739 0.79 41,672 Mylan 948 0.06 448,819 Pfizer 14,487 0.97 6,033 Regeneron Pharmaceuticals 1,966 0.13 20,291 Vertex Pharmaceuticals 2,944 0.20 37,074 Zoetis 2,428 0.16

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Real Estate & Investment Services (31/01/18 – 0.50%) 0.54 12,434 Boston Properties 1,246 0.08 23,396 CBRE Group 814 0.06 32,437 Crown Castle Real Estate Investment Trust 2,885 0.19 9,396 SBA Communications 1,304 0.09 29,977 Welltower 1,767 0.12

Real Estate Investment Trusts (31/01/18 – 2.05%) 2.36 30,019 AGNC Investment Corporation Real Estate Investment Trust 408 0.03 9,171 Alexandria Real Estate 918 0.06 33,828 American Tower 4,451 0.30 87,842 Annaly Mortgage Management 697 0.05 10,870 AvalonBay Communities 1,593 0.11 15,774 Digital Realty 1,299 0.09 28,395 Duke Realty 631 0.04 6,396 Equinix Real Estate Investment Trust 1,915 0.13 28,390 Equity Residential 1,565 0.10 5,122 Essex Property Real Estate Investment Trust 1,056 0.07 9,811 Extra Space Storage 735 0.05 6,027 Federal Realty Investment Trust 607 0.04 36,944 Health Care Property Investors 886 0.06 65,042 Host Marriott 893 0.06 23,899 Invitation Homes Real Estate Investment Trust 408 0.03 21,417 Iron Mountain Real Estate Investment Trust 606 0.04 34,610 Kimco Realty 447 0.03 12,741 Liberty Property Trust 456 0.03 12,838 Macerich 451 0.03 8,989 Mid-America Apartment Communities 692 0.05 13,777 Park Hotels & Resort 315 0.02 43,067 Prologis 2,265 0.15 12,090 Public Storage 1,953 0.13 21,079 Realty Income 1,100 0.07 12,271 Regency Centers 606 0.04 23,803 Simon Property Group 3,295 0.22 6,199 SL Green Realty 435 0.03 21,388 UDR 712 0.05 28,136 Ventas 1,379 0.09 81,587 Vereit Real Estate Investment Trust 501 0.03 13,927 Vornado Realty Trust 740 0.05 63,373 Weyerhaeuser 1,264 0.08

Software & Computer Services (31/01/18 – 10.70%) 12.04 38,088 Adobe 7,175 0.48 13,630 Akamai Technologies 675 0.05

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Software & Computer Services (cont’d) 23,304 Alphabet ‘A’ 19,949 1.34 24,164 Alphabet ‘C’ 20,500 1.37 6,781 Ansys 847 0.06 16,811 Autodesk 1,881 0.13 3,687 Booking 5,137 0.34 20,457 Cadence Design Systems 747 0.05 11,266 CDK Global 419 0.03 12,272 CDW 777 0.05 22,313 Cerner 931 0.06 9,764 Citrix Systems 761 0.05 46,915 CognizantTechnology Solutions 2,484 0.17 21,918 DXC Technology Company 1,068 0.07 74,228 eBay 1,898 0.13 187,414 Facebook 23,740 1.59 6,755 Gartner 698 0.05 10,795 Godaddy 563 0.04 121,733 Hewlett-Packard 1,442 0.10 5,591 InterActiveCorp 898 0.06 71,882 International Business Machines 7,344 0.49 18,501 Intuit 3,035 0.20 595,604 Microsoft 47,274 3.16 202,738 Oracle 7,741 0.52 6,975 Palo Alto Networks 1,139 0.08 7,361 PTC 474 0.03 13,571 Red Hat 1,834 0.12 57,828 Salesforce.com 6,677 0.45 13,504 ServiceNow 2,259 0.15 11,037 Splunk 1,047 0.07 12,739 SS&C Technologies 498 0.03 48,098 Symantec 768 0.05 11,977 Synopsys 850 0.06 55,060 Twitter 1,404 0.09 7,890 VeriSign 1,015 0.07 5,506 VMware 632 0.04 22,238 Wordplay 1,410 0.09 11,233 Workday 1,550 0.10 11,973 Zillow 319 0.02

Support Services (31/01/18 – 1.48%) 1.64 3,882 Alliance Data Systems 524 0.03 17,863 Aramark Holdings 447 0.03 34,498 Automatic Data Processing 3,667 0.25 9,335 Broadridge Financial Solutions 715 0.05 6,945 Cintas 990 0.07

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Support Services (cont’d) 2,660 Costar Group 790 0.05 21,993 Fastenal 1,011 0.07 24,557 Fidelity National Information 1,951 0.13 30,351 Fiserv 1,913 0.13 6,776 FleetCor Technologies 1,039 0.07 20,701 FNFV Group 569 0.04 11,998 Global Payments 1,024 0.07 3,596 Grainger W.W. 807 0.05 5,591 Manpower Group 336 0.02 24,304 Paychex 1,308 0.09 18,349 Republic Services 1,070 0.07 10,152 Robert Half International 497 0.03 15,278 Total Systems Services 1,041 0.07 12,269 Transunion 567 0.04 6,685 United Rentals 636 0.04 13,246 Verisk Analytics 1,182 0.08 32,971 Waste Management 2,398 0.16

Technology Hardware & Equipment (31/01/18 – 8.00%) 8.06 69,755 Advanced Micro Devices 1,295 0.09 27,950 Analog Devices 2,100 0.14 372,432 Apple 47,075 3.15 78,514 Applied Materials 2,331 0.16 4,402 Arista Networks 719 0.05 32,425 Broadcom 6,608 0.44 358,176 Cisco Systems 12,865 0.86 64,589 Corning 1,634 0.11 5,256 F5 Networks 643 0.04 9,324 Harris 1,086 0.07 125,407 HP 2,100 0.14 361,383 Intel 12,942 0.87 29,877 Juniper Networks 589 0.04 12,205 KLA Tencor 988 0.07 12,204 LAM Research 1,573 0.11 21,953 Maxim Integrated Products 906 0.06 19,338 MicrochipTechnology 1,182 0.08 92,822 Micron Technology 2,696 0.18 12,289 Motorola Solutions 1,092 0.07 21,414 NetApp 1,038 0.07 45,110 Nvidia 4,929 0.33 9,943 Qorvo 494 0.03 95,667 Qualcomm 3,600 0.24 14,314 Skyworks Solutions 795 0.05

17



Technology Hardware & Equipment (cont’d) 76,493 Texas Instruments 5,855 0.39 22,199 Western Digital 759 0.05 19,173 Xerox 411 0.03 19,988 Xilinx 1,701 0.11 11,714 Dell Technologies 433 0.03

Tobacco (31/01/18 – 1.14%) 0.84 146,412 Altria Group 5,495 0.37 121,739 Philip Morris International 7,102 0.47

Travel & Leisure (31/01/18 – 2.29%) 1.96 33,582 Carnival 1,469 0.10 1,979 Chipotle Mexican Grill 797 0.05 9,779 Darden Restaurants 780 0.05 15,119 Delta Airlines 568 0.04 3,202 Domino’s Pizza 691 0.05 9,356 Expedia 848 0.06 23,573 Hilton Worldwide 1,335 0.09 29,169 Las Vegas Sands 1,294 0.09 22,547 Marriott International 1,962 0.13 60,828 McDonald’s 8,285 0.55 39,667 MGM Resorts International 888 0.06 11,990 Southwest Airlines 517 0.03 95,101 Starbucks 4,850 0.32 10,191 TripAdvisor 445 0.03 5,915 United Continental 392 0.03 2,546 Vail Resorts 364 0.02 8,155 Wyndham Hotels & Resorts 304 0.02 8,975 Wynn Resorts 839 0.06 26,584 Yum! Brands 1,899 0.13 28,277 Yum! China 784 0.05

Bermuda (31/01/18 – 0.34%) 0.27 Financial Services (31/01/18 – 0.12%) 0.11 29,466 IHS Markit 1,163 0.08 32,746 Invesco 454 0.03

Food Producers (31/01/18 – 0.04%) 0.03 11,087 Bunge 464 0.03

Industrial Transportation (31/01/18 – 0.04%) 0.04 15,760 Norwegian Cruise Line 616 0.04

Non-Life Insurance (31/01/18 – 0.10%) 0.06 3,240 Everest Re Group 539 0.04 2,951 RenaissanceRe Holdings 310 0.02

18



Technology Hardware & Equipment (31/01/18 – 0.04%) 0.03 31,786 MarvellTechnology Group 448 0.03

Virgin Islands (31/01/18 – 0.00%) 0.03 Other Equities (31/01/18 – 0.00%) 0.03 12,465 Capri 403 0.03

Canada (31/01/18 – 5.06%) 4.95 Automobiles & Parts (31/01/18 – 0.07%) 0.07 25,877 Magna International 1,039 0.07

Banks (31/01/18 – 1.62%) 1.52 48,503 Bank of Montreal 2,696 0.18 95,169 Bank of Nova Scotia 4,116 0.28 35,993 Canadian Imperial Bank 2,319 0.15 23,553 National Bank Of Canada 839 0.06 113,230 Royal Bank of Canada 6,544 0.44 144,290 Toronto Dominion Bank 6,173 0.41

Chemicals (31/01/18 – 0.14%) 0.13 50,061 Nutrien 1,969 0.13

Construction & Materials (31/01/18 – 0.03%) 0.02 18,305 Snc-Lavalin Group 387 0.02

Electricity (31/01/18 – 0.07%) 0.06 34,204 Fortis 926 0.06

Financial Services (31/01/18 – 0.17%) 0.15 67,641 Brookfield Asset 2,211 0.15

Fixed Line Telecommunications (31/01/18 – 0.09%) 0.08 23,445 BCE 774 0.05 16,514 Telus 439 0.03

Food & Drug Retailers (31/01/18 – 0.17%) 0.17 33,880 Alimentation Couche-Tard 1,395 0.09 17,002 Loblaw 625 0.04 19,198 Metro 530 0.04

Food Producers (31/01/18 – 0.03%) 0.03 18,513 Saputo Group 412 0.03

Gas, Water & Multiutilities (31/01/18 – 0.07%) General Retailers (31/01/18 – 0.09%) 0.07 5,464 Canadian Tire 472 0.03 26,844 Dollarama 549 0.04

Industrial Metals (31/01/18 – 0.06%) 0.05 38,455 Teck Resources 712 0.05



Industrial Transportation (31/01/18 – 0.32%) 0.37 59,447 Canadian National Railway 3,770 0.25 11,109 Canadian Pacific Rail 1,728 0.12

Life Insurance (31/01/18 – 0.37%) 0.32 24,705 Great West Lifeco 402 0.03 165,780 Manulife Financial Corporation 2,022 0.14 34,873 Power Corporation of Canada 524 0.03 23,955 Power Financial 373 0.02 52,441 Sun Life Financial 1,438 0.10

Media (31/01/18 – 0.09%) 0.10 36,104 Shaw Communications 556 0.04 23,130 Thomson Reuters 918 0.06

Mining (31/01/18 – 0.25%) 0.28 18,421 Agnico Eagle Mines 609 0.04 136,716 Barrick Gold 1,386 0.09 16,816 Franco Nevada 988 0.07 68,468 Goldcorp 581 0.04 35,933 Silver Wheaton 575 0.04

Mobile Telecommunications (31/01/18 – 0.06%) 0.07 27,689 Rogers Communications 1,134 0.07

Non-Life Insurance (31/01/18 – 0.10%) 0.10 2,230 Fairfax Financial Holdings 802 0.05 11,468 Intact Financial 686 0.05

Oil & Gas Producers (31/01/18 – 0.54%) 0.43 95,140 Canadian Natural Resources 1,940 0.13 79,059 Cenovus Energy 467 0.03 77,971 Encana 406 0.03 22,466 Imperial Oil 483 0.03 125,679 Suncor Energy 3,079 0.21

Oil Equipment & Services (31/01/18 – 0.41%) 0.54 160,296 Enbridge 4,454 0.30 41,900 Pembina Pipeline 1,131 0.07 24,156 Inter Pipeline 295 0.02 68,674 TransCanada 2,217 0.15

Pharmaceuticals & Biotechnology (31/01/18 – 0.02%) 0.03 26,709 Bausch Health 497 0.03

Real Estate Investment Trusts (31/01/18 – 0.03%) 0.03 31,543 Riocan Real Estate Investment Trust 455 0.03

Software & Computer Services (31/01/18 – 0.10%) 0.19 19,947 CGI 999 0.07 1,621 Constellation Software 919 0.06 6,956 Shopify 891 0.06

19

20



Support Services (31/01/18 – 0.07%) 0.09 20,701 Waste Connections 1,306 0.09

Technology Hardware & Equipment (31/01/18 – 0.03%)

Travel & Leisure (31/01/18 – 0.06%) 0.05 17,702 Restaurant Brands International 841 0.05

Cayman Islands (31/01/18 – 0.00%) 0.03 Food Producers (31/01/18 – 0.00%) 0.03 9,784 Herbalife Nutrition 444 0.03

Channel Islands (31/01/18 – 0.18%) 0.13 Automobiles & Parts (31/01/18 – 0.11%) 0.08 19,887 Aptiv 1,197 0.08

Financial Services (31/01/18 – 0.03%) 0.02 15,869 Janus Henderson Group 263 0.02

Software & Computer Services (31/01/18 – 0.04%) 0.03 12,256 Amdocs 521 0.03

Ireland (31/01/18 – 1.65%) 1.93 Automobiles & Parts (31/01/18 – 0.02%)

Chemicals (31/01/18 – 0.00%) 0.37 43,652 Linde 5,410 0.37

Construction & Materials (31/01/18 – 0.00%) 0.02 13,452 Nvent Eleactric 254 0.02

Electronic & Electrical Equipment (31/01/18 – 0.04%) 0.04 8,192 Allegion 535 0.04

General Retailers (31/01/18 – 0.14%) 0.12 71,424 Johnson Controls International 1,833 0.12

Healthcare Equipment & Services (31/01/18 – 0.45%) 0.47 103,966 Medtronic 7,002 0.47

Industrial Engineering (31/01/18 – 0.14%) 0.12 18,766 Ingersoll-Rand 1,427 0.09 13,452 Pentair 421 0.03

Non-Life Insurance (31/01/18 – 0.08%) 0.08 9,921 Willis Towers Watson 1,228 0.08

Pharmaceuticals & Biotechnology (31/01/18 – 0.36%) 0.27 11,861 Alkermes 296 0.02 26,810 Allergan 2,934 0.20 4,722 Jazz Pharmaceuticals 452 0.03 10,959 Perrigo 387 0.02

21



Support Services (31/01/18 – 0.36%) 0.39 50,546 Accenture 5,900 0.39

Technology Hardware & Equipment (31/01/18 – 0.06%) 0.05 22,970 SeagateTechnology 773 0.05

Israel (31/01/18 – 0.05%) 0.06 Software & Computer Services (31/01/18 – 0.05%) 0.06 9,711 Check Point Software Technologies 826 0.06

Liberia (31/01/18 – 0.08%) 0.08 Travel & Leisure (31/01/18 – 0.08%) 0.08 13,052 Royal Caribbean Cruises 1,191 0.08

Netherlands (31/01/18 – 0.45%) 0.29 Automobiles & Parts (31/01/18 – 0.04%) Chemicals (31/01/18 – 0.14%) 0.11 24,720 Lyondell Basell Industries 1,633 0.11

Electronic & Electrical Equipment (31/01/18 – 0.04%) Industrial Transportation (31/01/18 – 0.03%) 0.03 10,474 Aercap 376 0.03

Oil Equipment & Services (31/01/18 – 0.00%) Software & Computer Services (31/01/18 – 0.04%) 0.03 19,858 Yandex 507 0.03

Technology Hardware & Equipment (31/01/18 – 0.16%) 0.12 26,313 NXP Semiconductors 1,741 0.12

Singapore (31/01/18 – 0.42%) Electronic & Electrical Equipment (31/01/18 – 0.04%)

Technology Hardware & Equipment (31/01/18 – 0.38%)

Switzerland (31/01/18 – 0.43%) 0.38 Electronic & Electrical Equipment (31/01/18 – 0.13%) 0.11 26,728 TE Connectivity 1,644 0.11

Non-Life Insurance (31/01/18 – 0.27%) 0.24 35,443 Chubb 3,584 0.24

Technology Hardware & Equipment (31/01/18 – 0.03%) 0.03 9,645 Garmin 507 0.03

United Kingdom (31/01/18 – 0.23%) 0.27 Beverages (31/01/18 – 0.03%) 0.03 13,415 Coca-Cola European Partners 485 0.03


Electronic & Electrical Equipment (31/01/18 – 0.00%) 0.03 14,052 Sensata Technologies Holding 507 0.03

Media (31/01/18 – 0.07%) 0.06 16,203 Liberty Global 300 0.02 28,966 Nielsen Holdings 565 0.04

Non-Life Insurance (31/01/18 – 0.13%) 0.15 18,184 Aon 2,170 0.15

Futures (31/01/18 – 0.06%) 0.05 Canada (31/01/18 – 0.00%) 0.00 7 MSE S & P TSX 60 Index Futures March 2019 43 0.00

United States (31/01/18 – 0.06%) 0.05 144 CME S & P E Mini Index Futures March 2019 715 0.05

Contracts For Difference – (31/01/18 – 0.00%) 0.00

United States (31/01/18 – 0.00%) 0.00 Dell Technologies Contract for difference Notional Value – £552,689 (51) 0.00 Portfolio of investments^ 1,480,227 99.10 Net other assets 13,466 0.90

Net assets 1,493,693 100.00

Unless otherwise stated, all investments are approved securities being eitherofficially listed in a member state or traded on or under the rules of aneligible securities market.

The counterparty for the futures is UBS.

The counterparty for the Contract for difference is UBS.

^Includes investment liabilities.

22


Top ten purchases and salesFor the year ended 31 January 2019

23

Purchases Cost£000

Apple 5,326Microsoft 5,197Amazon.com 5,139Facebook 3,236Praxair 3,047Alphabet ‘C’ 2,764JP Morgan Chase & Co 2,290AT&T 2,240Exxon Mobil 2,169Johnson & Johnson 1,946

Subtotal 33,354Other purchases 156,837

Total purchases for the year 190,191

Sales Proceeds£000

Apple 7,957AT&T 3,702Microsoft 3,426Monsanto 3,338Amazon.com 3,139CVS Health 3,072JP Morgan Chase & Co 2,406Halfmoon 2,021Cisco Systems 1,956Bank of America 1,915

Subtotal 32,932Other sales 118,878

Total sales for the year 151,810

24

Statistical information

Comparative tables Class ‘A’ Accumulation Class ‘B’ Accumulation 31/01/19 31/01/18 31/01/17 31/01/19 31/01/18 31/01/17 pence pence pence pence pence penceChange in net assets per unitOpening net asset value per unit 304.35 274.38 212.25 341.45 303.42 231.18

Return before operating charges* 15.03 34.27 65.88 16.88 38.20 72.32Operating charges (4.42) (4.30) (3.75) (0.27) (0.17) (0.08)

Return after operating charges* 10.61 29.97 62.13 16.61 38.03 72.24Distributions on accumulation units (1.05) (0.05) 0.00 (5.90) (4.67) (3.46)

Retained distributions onaccumulation units 1.05 0.05 0.00 5.90 4.67 3.46

Closing net asset value per unit 314.96 304.35 274.38 358.06 341.45 303.42

* after direct transaction costs of:^ 0.01 0.16 0.14 0.01 0.17 0.15

PerformanceReturn after charges 3.49% 10.92% 29.27% 4.86% 12.53% 31.25%

Other informationClosing net asset value (£000) 112,095 107,121 104,760 1,075,004 1,000,912 1,378,273Closing number of units 35,590,462 35,196,333 38,180,252 300,229,145 293,138,161 454,244,630Operating charges 1.40% 1.40% 1.53% 0.08% 0.08% 0.03%Direct transaction costs 0.00% 0.05% 0.06% 0.00% 0.05% 0.06%

Prices+

Highest unit price (pence) 373.01 339.06 306.58 390.46 351.96 313.99Lowest unit price (pence) 280.69 273.47 192.81 315.39 302.40 210.12

^The direct transaction costs includes commission on futures.+High and low price disclosures are based on quoted unit prices. Therefore, the opening and closing NAV prices may fall outsidethe high/low price threshold.

25


Comparative tables Class ‘C’ Accumulation Class ‘D’ Accumulation 31/01/19 31/01/18** 31/01/19 31/01/18** pence pence pence penceChange in net assets per unitOpening net asset value per unit 106.58 100.00 101.11 100.00

Return before operating charges* 5.28 6.62 5.00 1.13Operating charges (0.09) (0.04) (0.17) (0.02)

Return after operating charges* 5.19 6.58 4.83 1.11Distributions on accumulation units (1.84) (0.76) (1.66) (0.10)

Retained distributions onaccumulation units 1.84 0.76 1.66 0.10

Closing net asset value per unit 111.77 106.58 105.94 101.11

* after direct transaction costs of:^ – 0.06 – 0.05

PerformanceReturn after charges 4.87% 6.58% 4.78% 1.11%

Other informationClosing net asset value (£000) 306,462 293,107 132 143Closing number of units 274,200,559 275,021,641 124,666 141,916Operating charges 0.08% 0.08% 0.16% 0.16%Direct transaction costs 0.00% 0.05% 0.00% 0.05%

Prices+

Highest unit price (pence) 121.96 109.94 124.87 112.59Lowest unit price (pence) 98.52 98.52 93.44 100.54

^The direct transaction costs includes commission on futures.+High and low price disclosures are based on quoted unit prices. Therefore, the opening and closing NAV prices may fall outsidethe high/low price threshold.

** Class ‘C’ Accumulation launched on 2 August 2017 and Class ‘D’ Accumulation launched on 7 December 2017.

26

Investment objective

The Fund aims to provide a combination of capital growth and income, delivering anoverall return in line with the FTSE North America Index, before management fees andexpenses.

Investment policy

In order to meet the investment objective, the Fund will invest almost exclusively inthe shares of companies that make up the reference index, the FTSE North AmericaIndex, in approximate proportion to their weightings in that index.

The FTSE North America Index is a market-capitalisation weighted index whichrepresents the performance of North American large and mid-cap companies. TheFund will seek to invest in a broad selection of companies from the reference index inproportions that the manager expects will match the performance of the referenceindex as a whole. From time to time the fund may acquire, or hold securities that arenot index constituents on a temporary basis, as a result of corporate actions.

The Fund may also invest in ordinary and preferred equity securities, exchange tradedfunds, depositary receipts, rights, warrants, futures, swaps, cash, and currencyforwards, for investment purposes and for efficient portfolio management.

Revenue distribution and pricing

Units of the Fund are available as Class ‘A’ Accumulation, ‘B’ Accumulation, ‘C’Accumulation or ‘D’ Accumulation units (where revenue is reinvested to enhance theunit price). There will be two potential distributions in each accounting year: an interimdistribution as at 31 July and a final distribution at 31 January.

At each distribution the net revenue after deduction of expenses, from the investments ofthe Fund is apportioned amongst the unitholders. Unitholders receive a tax vouchergiving details of the distribution and the Manager’s Report no later than two months afterthese dates.


fi

27

Risk and reward profile

The Risk and Reward Indicator table demonstrates where the Fund ranks in terms ofits potential risk and reward. The higher the rank the greater the potential reward butthe greater the risk of losing money. It is based on past data, may change over timeand may not be a reliable indication of the future risk profile of the Fund. The shadedarea in the table below shows the Fund’s ranking on the Risk and Reward Indicator.

Typically lower rewards, Typically higher rewards, lower risk higher risk fi

1 2 3 4 5 6 7

This Fund is ranked at 5 (31/01/18: 5) because funds of this type have experiencedmedium to high rises and falls in value in the past. Although this is a high risk rankingit is not the highest. The above figure applies to the following unit classes:

• Class ‘A’ Accumulation• Class ‘B’ Accumulation• Class ‘C’ Accumulation• Class ‘D’ Accumulation

Please note that even the lowest risk class can lose you money and that extrememarket circumstances can mean you suffer severe losses in all cases. Please note theFund’s risk category may change in the future. The indicator does not take intoaccount 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 ofyour investment.

• The Fund may use derivatives to reduce risk or cost or to generate additional capitalor 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 themost up to date relevant fund and Unit Class Key Investor Information Documents(KIIDs). These are available online at www.phoenixunittrust.co.uk.


28

Annual financial statementsFor the year ended 31 January 2019

Statement of total return 31/01/19 31/01/18 Notes £000 £000 £000 £000

Income

Net capital gains 4 58,340 150,696 Revenue 5 30,483 24,177

Expenses 6 (2,603) (2,274)

Net revenue before taxation 27,880 21,903

Taxation 7 (4,270) (3,063)

Net revenue after taxation 23,610 18,840

Total return before distributions 81,950 169,536

Distributions 8 (23,705) (18,929)

Change in net assets attributable to unitholdersfrom investment activities 58,245 150,607

Statement of change in net assets attributable to unitholders 31/01/19 31/01/18 £000 £000 £000 £000

Opening net assets attributable to unitholders 1,401,283 1,483,033

Amounts receivable on issue of units 207,139 17,889

Amounts receivable onin-specie transfer* – 30,749

Amounts payable on cancellation of units (196,831) (299,138)

10,308 (250,500)

Change in net assets attributable to unitholders from investment activities 58,245 150,607

Retained distributions on accumulation units 23,857 18,143

Closing net assets attributable to unitholders 1,493,693 1,401,283

*Represents the value of units issued by in-specie transfer of assets during the year.

Balance sheet 31/01/19 31/01/18 Notes £000 £000 £000 £000

Assets:Fixed assets:Investment assets 1,480,278 1,387,460

Current assets:Debtors 9 4,761 947Cash and bank balances 10 9,408 14,731

Total current assets 14,169 15,678

Total assets 1,494,447 1,403,138

Liabilities:Investment liabilities (51) (14)

Creditors:Other creditors 11 (703) (1,841)

Total creditors (703) (1,841)

Total liabilities (754) (1,855)

Net assets attributable to unitholders 1,493,693 1,401,283

29

Annual financial statementsAs at 31 January 2019

30

Notes to the financial statements

Note 1 Accounting policies(a) Basis of preparation

The financial statements have been prepared under the historical cost basis, asmodified by the revaluation of investments and in compliance with FinancialReporting Standard (FRS102) and in accordance with the Statement ofRecommended Practice (SORP) for financial statements of Authorised Fundsissued by The Investment Association in May 2014 (and amended in June2017). The financial statements have been prepared on a going concern basis.Unless otherwise stated all accounting policies are consistent with those of theprior year.

(b) Valuation of investmentsThe quoted investments of the Fund have been valued at bid dealing prices asat close of business on 31 January 2019, the last valuation point in theaccounting year, in accordance with the Trust Deed.Investments in collective investment schemes have been valued at bid price fordual priced funds or the single price for single priced funds. Where theseinvestments are managed by the Manager or an associate of the Manager, theholdings have been valued at the cancellation price for dual priced funds or thesingle price for single priced funds. This price is the last available publishedprice at the year end. Derivatives are valued as at close of business on 31January 2019, the last valuation point of the accounting year. Exchange tradedderivatives are priced at fair value, which is deemed to be the bid price.

(c) Foreign exchangeTransactions in foreign currencies during the year are translated into Sterling (thefunctional currency of the Fund), at the rates of exchange ruling on thetransaction date. Amounts held in foreign currencies have been translated at therate of exchange ruling at close of business, 31 January 2019, the lastvaluation point in the accounting year.

(d) RevenueDividends receivable from equity investments are credited to revenue when theyare first quoted ex-dividend. Interest receivable on bank deposits is accountedfor on an accruals basis.Any commission arising from stocklending is recognised on an accruals basisand is disclosed net of fees. Income from US REITs is initially recognised asrevenue on an ex-dividend basis. An adjustment is made to reallocate aproportion of this income to capital, based on the available REIT information.Interest received from or paid to the Fund from over-the-counter derivativesdesigned to protect income is treated as revenue. Interest received from or paidto the Fund from over-the-counter derivatives designed to protect capital istreated as capital.

(e) Special dividendsSpecial dividends are treated either as revenue or repayments of capitaldepending on the facts of each particular case. It is likely that where the receiptof a special dividend results in a significant reduction in the capital value of theholding, then the special dividend should be treated as capital in nature so as toensure the matching principle is applied to gains and losses. Otherwise, thespecial dividend should be treated as revenue.

31


Note 1 Accounting policies (continued)

(f) ExpensesExpenses are accounted for on an accruals basis. Expenses of the Fund arecharged against revenue, except for costs associated with the purchase and saleof investments, which are charged to capital.

(g) TaxationThe charge for taxation is based on taxable income for the year less allowableexpenses. UK dividends and franked distributions from UK collective investmentschemes are disclosed net of any related tax credit. Overseas dividends,unfranked distributions from UK collective investment schemes, anddistributions from overseas collective investment schemes are disclosed gross ofany tax suffered, the tax element being separately disclosed in the taxation note.

(h) Deferred taxationDeferred tax is provided at current rates of corporation tax on all timingdifferences which have originated but not reversed by the Balance sheet date.Deferred tax is not recognised on permanent differences. Deferred tax assets arerecognised only to the extent that the Manager considers it is more likely than notthat there will be taxable profits from which underlying timing differences can bededucted.

Note 2 Distribution policies(a) Basis of distribution

Revenue produced by the Fund’s investments accumulates during eachaccounting period. If, at the end of each accounting period, revenue exceedsexpenses, the net revenue of the Fund is available to be distributed/accumulatedto unitholders.The Fund is not more than 60% invested in qualifying investments (as definedby SI 2006/964, Reg 20) and will pay a dividend distribution.

(b) Unclaimed distributionsDistributions remaining unclaimed after six years are paid into the Fund as partof the capital property.

(c) Apportionment to multiple unit classesWith the exception of the Manager’s periodic charge, the allocation of revenueand expenses to each unit class is based upon the proportion of the Fund’sassets attributable to each unit class on the day the revenue is earned or theexpense is suffered. The Manager’s periodic charge is specific to each unit class.Tax will be allocated between the unit classes according to income.Consequently, the revenue available to distribute for each unit class will differ.

(d) Special dividendsIt is the policy of the Fund, where applicable, to distribute special dividendswhich have been treated as revenue.

(e) ExpensesIn determining the net revenue available for distribution, charges in relation to thesafe custody of investments are ultimately borne by capital.

32

Note 3 Risk management policiesThe main risks arising from the Fund’s financial instruments are market pricerisk, interest rate risk, foreign currency risk, liquidity risk and counterparty risk.The Manager’s policies for managing these risks are summarised below andhave been applied throughout the year.

(a) Market price riskMarket price risk arises mainly from uncertainty about future prices of financialinstruments held. It represents the potential loss the Fund might suffer throughholding market positions in the face of price movements. The Fund’s investmentportfolio is exposed to market fluctuations which are monitored by the Managerin pursuit of the investment objectives and policies. Adherence to investmentguidelines and to investment and borrowing powers set out in the Trust Deed, theProspectus and in the Collective Investment Schemes Sourcebook (“theSourcebook”) mitigates the risk of excessive exposure to any particular type ofsecurity or issuer.

(b) Interest rate riskThe majority of the Fund’s financial assets are equity shares and otherinvestments which neither pay interest nor have a maturity date.Interest receivable on bank deposits or payable on bank overdraft positionswill be affected by fluctuations in interest rates.

(c) Foreign currency riskA substantial portion of the Fund’s investment portfolio is invested in overseassecurities and the Balance sheet can be significantly affected by movements inforeign exchange rates. The Fund may be subject to short term exposure toexchange rate movements between placing the purchase or sale of securitiesand agreeing a related currency transaction albeit usually the two transactionsare agreed at the same time.Any such currency transactions must be used in accordance with theinvestment objective of the Fund and must be deemed by the InvestmentManager to be economically appropriate. Regular production of portfolio riskreports highlight concentrations of risk, including currency risk, for the Fund.

(d) Liquidity riskThe Fund’s assets are comprised of mainly readily realisable securities. Ifinsufficient cash is available to finance unitholder redemptions then securitiesheld by the Fund may need to be sold. The risk of low market liquidity,through reduced trading volumes, may affect the ability of the Fund to tradefinancial instruments at values previously indicated by financial brokers. Fromtime to time, liquidity may also be affected by stock specific or economicevents. To manage these risks the Manager performs market research in orderto achieve the best price for any transactions entered into on behalf of theFund. All stocks are valued daily but those stocks identified as being lessliquid are reviewed on a regular basis for pricing accuracy.

(e) Counterparty riskCertain transactions in securities that the Fund enters into expose it to the riskthat the counterparty will not deliver the investment (purchase) or cash (sale)after the Fund has fulfilled its responsibilities. The Fund only buys and sellsinvestments through brokers which have been approved by the Manager as anacceptable counterparty. This list is reviewed annually.


33


Note 3 Risk management policies (continued)(f) Derivatives

Derivative transactions may be used by the Fund for the purposes of meetingits investment objectives and also for hedging. In doing so the Manager maymake use of a variety of derivative instruments in accordance with theSourcebook. The use of derivatives for investment purposes means that thenet asset value of the Fund may at times have high volatility, althoughderivatives will not be used with the intention of raising the risk profile of theFund. Where derivatives are used for hedging this will not compromise the riskprofile of the Fund. Use of derivatives will not knowingly contravene anyrelevant investment objective or limits.The Manager has used exchange traded futures to hedge the value of thoseassets denominated in foreign currency.The derivative counterparty is shown at the bottom of the Portfolio ofInvestments on page 22.

Note 4 Net capital gainsThe net capital gains during the year comprise:

31/01/19 31/01/18 £000 £000

Gains on non-derivative securities 54,360 148,892Gains on derivative contracts 1,533 2,669Currency gains/(losses) 1,770 (889)Capital special dividends 384 55US REITS 277 –Handling charges (15) (31)Research commission reimbursement 31 –

Net capital gains 58,340 150,696

Note 5 Revenue 31/01/19 31/01/18 £000 £000

UK dividends 142 64Overseas dividends 28,937 22,946Stocklending commission 41 4US REITs 1,267 1,112Bank interest 82 20Liquidity interest 14 31

Total revenue 30,483 24,177

34


Note 6 Expenses 31/01/19 31/01/18 £000 £000(a) Payable to the Manager or associates of the Manager

and agents of either of them:Manager’s periodic charge 2,441 2,095

2,441 2,095

(b) Payable to the Trustee or associates of the Trustee and agents of either of them:Trustee’s fees 54 70

(c) Other expenses:Audit fee 7 7Safe custody charges 95 86Printing & stationery 2 2Legal fee – 14Professional fee 4 –

108 109

Total expenses 2,603 2,274

Note 7 Taxation 31/01/19 31/01/18 £000 £000

(a) Analysis of tax charge for the year

Overseas withholding tax 4,270 3,063

Total current taxation (Note 7 (b)) 4,270 3,063

(b) Factors affecting the tax charge for the yearThe tax assessed for the year is lower than that calculated when the standardrate of corporation tax for Authorised Unit Trusts is applied to total revenuereturn. The differences are explained below:

Net revenue before taxation 27,880 21,903

Corporation tax at 20% (31/01/18: 20%) 5,576 4,381

Effects of:Revenue not subject to taxation (5,804) (4,584)Current period expenses not utilised 267 239Overseas withholding tax 4,270 3,063Tax relief on overseas tax suffered (39) (36)

Total tax charge for the year (Note 7(a)) 4,270 3,063

Authorised Unit Trusts are exempt from tax on capital gains in the UK.

(c) Provision for deferred taxationAt 31 January 2019 the Fund had a potential deferred tax asset of£2,767,111 (31/01/18: £2,500,282) in relation to surplus managementexpenses of £13,835,556 (31/01/18: £12,501,412). It is unlikely that theFund will generate sufficient taxable profits in the future to utilise theseexpenses and, therefore, no deferred tax asset has been recognised in theyear or the prior year.

35


Note 8 DistributionsThe distributions take account of amounts added on the issue of units andamounts deducted on the cancellation of units and comprise:

31/01/19 31/01/18 £000 £000

Interim 11,620 8,868Final 12,237 9,275

23,857 18,143

Amounts deducted on cancellation of units 788 1,060Amounts added on issue of units (940) (274)

Net distribution for the year 23,705 18,929

Net revenue after taxation 23,610 18,840Equalisation on conversion of units – 3Expenses taken to capital 95 86

Net distribution for the year 23,705 18,929

Details of the distribution per unit are set out in the tables on pages 41 and 42.

Note 9 Debtors 31/01/19 31/01/18 £000 £000

Creations awaiting settlement 3,397 –Accrued income 1,364 947

Total debtors 4,761 947

Note 10 Cash and bank balances 31/01/19 31/01/18 £000 £000

Cash and bank balances 9,380 14,668Amounts held at futures clearing houses 28 63

Total cash and bank balances 9,408 14,731

Note 11 Other creditors 31/01/19 31/01/18 £000 £000

Cancellations awaiting settlement 267 1,586Manager’s periodic charge payable 407 215Trustee’s fees payable 13 22Safe custody charges payable 8 7Audit fee payable 7 7Handling charges payable 1 4

Total other creditors 703 1,841

36


Note 12 Reconciliation of units Class ‘A’ Class ‘B’ Class ‘C’ Class ‘D’ Accumulation Accumulation Accumulation Accumulation

Opening units issued at 01/02/18 35,196,333 293,138,161 275,021,641 141,916

Unit movements in year:Units issued 3,918,685 46,565,107 33,240,329 –Units cancelled (3,524,556) (39,474,123) (34,061,411) (17,250)

Closing units at 31/01/19 35,590,462 300,229,145 274,200,559 124,666

Note 13 Contingencies and commitmentsAt 31 January 2019 the Fund had no outstanding calls on partly paid shares, no potentialunderwriting commitments or any other contingent liabilities (31/01/18 : £nil).

Note 14 StocklendingThe total value of securities on loan at the Balance sheet date was £949,440 (31/01/18:£5,127,494). Collateral was held in the following form:

31/01/19 31/01/18£000 £000

Government bonds 993 5,460Overseas Equities 5 –

998 5,460

The gross earnings and fees paid for the year were £49,529 (31/01/18: £5,363) and £8,915(31/01/18: £966) respectively.

The counterparties for the securities on loan are shown in the appendix on pages 48 and 49.

Note 15 Unitholders’ fundsThere are four unit classes in issue within the Fund. These are Class ‘A’ Accumulation, Class ‘B’Accumulation, Class ‘C’ Accumulation and Class ‘D’ Accumulation. The manager’s periodiccharge in respect of Class ‘A’, Class ‘B’, Class ‘C’ and Class ‘D’ is expressed as an annualpercentage of the value of the property of the Fund attributable to each unit class and is currently1.390% (31/01/18: 1.390%) in respect of Class ‘A’ units, 0.065% (31/01/18: 0.065%) inrespect of Class ‘B’, 0.065% (31/01/18: 0.065%) in respect of Class ‘C’ and 0.15% (31/01/18:0.15%) in respect of Class ‘D’ units. Consequently, the level of net revenue attributable to eachunit class will differ. Should it be necessary to wind-up the Fund, each unit class will have thesame rights as regards to the distribution of the property of the Fund.

37


Note 16 Related party transactionsThe Manager is a related party to the Fund by virtue of its controlling influence.

The Manager is part of the Phoenix Group. Phoenix Life Limited which is alsopart of the Phoenix Group, is a material unitholder in the Fund and therefore arelated party, holding the following percentage of the units at the year end:

Class ‘A’ Class ‘B’ Class ‘C’ Class ‘D’ % % % %

As at 31st January 2019: 100.00 99.25 100.00 –

As at 31st January 2018: 100.00 99.10 100.00 –

Manager’s periodic charge paid to the Manager, Phoenix Unit Trust ManagersLimited, or its associates, is shown in Note 6(a) and details of the units issuedand cancelled by the Manager are shown in the Statement of change in netassets attributable to unitholders and Note 8.

Any balances due to/from the Manager or its associates at 31 January 2019 inrespect of these transactions are shown in Notes 9 and 11.

Note 17 Financial instrumentsIn accordance with the investment objective, the Fund holds certain financialinstruments. These comprise :• securities held in accordance with the investment objective and policies;• derivative transactions which the Fund may also enter into, the purpose ofwhich is to manage the currency and market risks arising from the Fund’sinvestment activities; and

• cash and short term debtors and creditors arising directly from operations.

Counterparty exposureThe economic exposure of future derivative contracts is equal to the marketvalue. The value of exposure and the related counterparty is disclosed in thePortfolio of investments. At 31 January 2019, the Fund has no counterpartyexposure on each Contract for Difference, as they are investment liabilities.

Currency exposureAn analysis of the monetary assets and liabilities at the year end is shownbelow:

Net currency assets Net currency assets 31/01/19 31/01/18

Currency Monetary Non- Total Monetary Non- Total exposure monetary exposure exposure monetary exposure exposure exposure £000 £000 £000 £000 £000 £000

Sterling 42 – 42 (1,489) – (1,489) Euro – – – 1 – 1 Canadian Dollar 733 73,150 73,883 854 70,869 71,723 US Dollar 12,691 1,407,077 1,419,768 14,471 1,316,577 1,331,048

13,466 1,480,227 1,493,693 13,837 1,387,446 1,401,283

Income received in other currencies is converted to Sterling on or near the date ofreceipt. The Fund does not hedge or otherwise seek to avoid, movement risk onaccrued income.

38


Note 17 Financial instruments (continued)Interest profileAt the year end date, 0.63% (31/01/18: 1.05%) of the Fund’s net assets byvalue were interest bearing.Interest rates earned/paid on deposits are earned/paid at a rate linked toLIBOR (London Interbank Offered Rate) or international equivalent.

Sensitivity analysisInterest rate risk sensitivityAs the majority of the Fund’s financial assets are non-interest bearing, theFund is only subject to limited exposure to fair value interest rate risk due tofluctuations in levels of market interest rates and therefore, no sensitivityanalysis has been provided.

Foreign currency risk sensitivityA five percent increase in the value of the Fund’s foreign currency exposurewould have the effect of increasing the return and net assets by £74,684,650(31/01/18: £70,062,650). A five percent decrease would have an equal andopposite effect.

Price risk sensitivityA five percent increase in the value of the Fund’s portfolio would have theeffect of increasing the return and net assets by £74,684,650 (31/01/18:£69,372,300). A five percent decrease would have an equal and oppositeeffect.

Note 18 Fair value of investmentsThe fair value of the Fund’s investments has been determinedusing the hierarchy below. This complies with the ‘Amendments toFRS102 – Fair value hierarchy disclosures’ issued by the FinancialReporting Council in March 2016.Level 1 The unadjusted quoted price in an active market

for identical assets or liabilities that the entity canaccess at the measurement date.

Level 2 Inputs other than quoted prices included withinLevel 1 that are observable (i.e. developed usingmarket data) for the asset or liability, eitherdirectly or indirectly.

Level 3 Inputs are unobservable (i.e. for which marketdata is unavailable) for the asset or liability.

For the year ended 31/01/19Level 1 2 3 Total

Investment assets £000 £000 £000 £000Equities 1,479,520 – – 1,479,520Derivatives 758 – – 758

1,480,278 – – 1,480,278

Investment liabilities £000 £000 £000 £000Derivatives – (51) – (51)

– (51) – (51)

39


Note 18 Fair value of investments (continued)

For the year ended 31/01/18Level 1 2 3 Total

Investment assets £000 £000 £000 £000Equities 1,386,670 – – 1,386,670Derivatives 790 – – 790

1,387,460 – – 1,387,460

Investment liabilities £000 £000 £000 £000Derivatives (14) – – (14)

(14) – – (14)

Note 19 Portfolio transaction costsFor the year ended 31/01/19

Other TotalValue Commission Taxes expenses costs

Analysis of total purchases costs £000 £000 % £000 % £000 % £000

Equity transactions 189,294 28 0.01 – – – – 189,322Corporate actions 869 – – – – – – 869

Total 190,163 28 – – 190,191


Analysis of total sales costs £000 £000 % £000 % £000 % £000

Equity transactions 134,616 11 0.01 – – 2 – 134,603Corporate actions 17,207 – – – – – – 17,207

Total 151,823 11 – 2 151,810

Commission and taxes as % of average net assets:Commission 0.00%Taxes 0.00%Other expenses 0.00%

Note 19 Portfolio transaction costs (continued)For the year ended 31/01/18


Analysis of total purchases costs £000 £000 % £000 % £000 % £000

Equity transactions 1,188,136 373 0.03 – – – – 1,188,509Money markets 220,509 – – – – – – 220,509Corporate actions 216 – – – – – – 216In-specie transactions 30,724 – – – – – – 30,724

Total 1,439,585 373 – – 1,439,958


Analysis of total sales costs £000 £000 % £000 % £000 % £000

Equity transactions 1,442,171 446 0.03 – – – – 1,441,725Money markets 244,799 – – – – – – 244,799Corporate actions 2,514 – – – – – – 2,514

Total 1,689,484 446 – – 1,689,038

Commission and taxes as % of average net assets:Commission 0.05%Taxes 0.00%Other expenses 0.00%

Portfolio transaction costs are incurred by the Fund when buying and selling underlying investments. Thesecosts vary depending on the class of investment, country of exchange and method of execution.

These costs can be classified as either direct or indirect transaction costs:

Direct transaction costs: Broker commissions, fees and taxes.

Indirect transaction costs: “Dealing spread” – the difference between buying and selling prices of the underlyinginvestments.

At the Balance sheet date the portfolio dealing spread was 0.04% (31/01/18: 0.03%) being the differencebetween the respective bid and offer prices for the Fund’s investments.

Note 20 Post Balance sheet eventsAs indicated in the accounting policies in Note 1(b), the investments have been valued at close of business on31 January 2019. Since that date the Fund’s quoted bid price(s) have risen from 314.96p to 334.50p forClass ‘A’ units, from 358.06p to 381.02p for Class ‘B’ units, from 111.77p to 119.02p for Class ‘C’ units andfrom 105.94p to 112.78p for Class ‘D’ units as at 3rd April 2019 (the latest applicable date before completionof the accounts), a rise of 6.20%, 6.41%, 6.49% and 6.46% for Class ‘A’, ‘B’, ‘C’ and ‘D’ units respectively.

40


41

Interim distribution in pence per unitGroup 1: units purchased prior to 1 February 2018Group 2: units purchased 1 February 2018 to 31 July 2018 2018 2017 pence pence per unit per unit Net paid paid income Equalisation 30 Sept 30 Sept

Class ‘A’ Accumulation

Group 1 0.4630 — 0.4630 0.0000Group 2 0.1490 0.3140 0.4630 0.0000

Class ‘B’ Accumulation

Group 1 2.7811 — 2.7811 2.2297Group 2 1.3140 1.4671 2.7811 2.2297

Class ‘C’ Accumulation*

Group 1 0.8688 — 0.8688 N/AGroup 2 0.3224 0.5464 0.8688 N/A

Class ‘D’ Accumulation*

Group 1 0.7809 — 0.7809 N/AGroup 2 0.7809 0.0000 0.7809 N/A

Distribution tablesFor the year ended 31 January 2019

42

Final distribution in pence per unitGroup 1: units purchased prior to 1 August 2018Group 2: units purchased 1 August 2018 to 31 January 2019 2019 2018 pence pence per unit per unit Net payable paid income Equalisation 31 Mar 31 Mar

Class ‘A’ Accumulation

Group 1 0.5838 — 0.5838 0.0498Group 2 0.0000 0.5838 0.5838 0.0498

Class ‘B’ Accumulation

Group 1 3.1168 — 3.1168 2.4450Group 2 0.6897 2.4271 3.1168 2.4450

Class ‘C’ Accumulation*

Group 1 0.9740 — 0.9740 0.7599Group 2 0.2047 0.7693 0.9740 0.7599

Class ‘D’ Accumulation*

Group 1 0.8761 — 0.8761 0.1011Group 2 0.8761 0.0000 0.8761 0.1011

* Class ‘C’ Accumulation launched on 2 August 2017 and Class ‘D’ Accumulationlaunched on 7 December 2017.

EqualisationThis applies only to units purchased during the distribution period (Group 2 units). Itis the average amount of revenue included in the purchase price of all Group 2 unitsand is refunded to the holders of these units as a return of capital. Being capital it isnot liable to income tax but must be deducted from the cost of the units for capitalgains tax purposes.

Distribution tablesFor the year ended 31 January 2019

43

Responsibilities of the manager and the trusteea) The Manager of the Fund is required by the Financial Conduct Authority’s Collective

Investment Schemes Sourcebook (‘the Sourcebook’) to prepare financial statementsfor each annual accounting period which give a true and fair view of the financialposition of the Fund at the end of that period and the net revenue or expense andthe net gains or losses on the property of the Fund for the period then ended.

In preparing these financial statements, the Manager is required to:• select suitable accounting policies and then apply them consistently;• make judgements and estimates that are prudent and reasonable;• state whether applicable accounting standards have been followed subject to

any material departure disclosed and explained in the financial statements; and• prepare the financial statements on the basis that the Fund will continue in

operation unless it is inappropriate to presume this.

The Manager is also required to manage the Fund in accordance with the TrustDeed, the Prospectus and the Sourcebook, maintain proper financial records toenable them to ensure that the financial statements comply with the Statement ofRecommended Practice for Authorised Funds as issued by the IA in May 2014(amended June 2017) and the Sourcebook and take reasonable steps for theprevention and detection of fraud and other irregularities.

b) The Depositary in its capacity as Trustee of the PUTM Bothwell North America Fundmust ensure that the Trust is managed in accordance with the Financial ConductAuthority’s Collective Investment Schemes Sourcebook, the Financial Services andMarkets Act 2000, as amended, (together ‘the Regulations’), the Trust Deed andProspectus (together ‘the Scheme documents’) as detailed below.

The Depositary must in the context of its role act honestly, fairly, professionally,independently and in the interests of the Trust and its investors.

The Depositary is responsible for the safekeeping of all custodial assets andmaintaining a record of all other assets of the Trust in accordance with theRegulations.

The Depositary must ensure that:

• the Trust’s cash flows are properly monitored and that cash of the Trust isbooked in cash accounts in accordance with the Regulations;

• the sale, issue, repurchase, redemption and cancellation of units are carried outin accordance with the Regulations;

• the value of units of the Trust are calculated in accordance with the Regulations;

• any consideration relating to transactions in the Trust’s assets is remitted to theTrust within the usual time limits;

• the Trust’s income is applied in accordance with the Regulations; and

• the instructions of the Authorised Fund Manager (‘the AFM’), which is theUCITS Management Company, are carried out (unless they conflict with theRegulations).

The Depositary also has a duty to take reasonable care to ensure that the Trust ismanaged in accordance with the Regulations and the Scheme documents of theTrust in relation to the investment and borrowing powers applicable to the Trust.

44

Trustee’s report and directors’ statement

Report of the Trustee to the Unitholders of the PUTM Bothwell North AmericaFund for the period from 1 February 2018 to 31 January 2019Having carried out such procedures as we considered necessary to discharge ourresponsibilities as Depositary of the Trust, it is our opinion, based on the informationavailable to us and the explanations provided, that, in all material respects the Trust,acting through the AFM:

(i) has carried out the issue, sale, redemption and cancellation, and calculation of theprice of the Trust’s units and the application of the Trust’s income in accordance with theRegulations and the Scheme documents of the Trust; and

(ii) has observed the investment and borrowing powers and restrictions applicable to theTrust in accordance with the Regulations and the Scheme documents of the Trust.

London HSBC Bank plc11 April 2019

Directors’ statementIn accordance with the requirements of the Collective Investment Schemes Sourcebookas issued and amended by the Financial Conduct Authority, we hereby certify the reporton behalf of the Directors of Phoenix Unit Trust Managers Limited.

Birmingham Craig Baker, Director11 April 2019 Andrew Moss, Director

45

OpinionWe have audited the financial statements of the PUTM Bothwell North America Fund (“the Fund”) forthe year ended 31 January 2019 which comprise the Statement of Total Return, the Statement ofChange in Net Assets attributable to Unitholders, the Balance Sheet, the Distribution Tables and therelated Notes 1 to 20, including a summary of significant accounting policies. The financial reportingframework that has been applied in their preparation is applicable law and United Kingdom AccountingStandards (United Kingdom Generally Accepted Accounting Practice) including FRS 102 ‘The FinancialReporting Standard applicable to the UK and Republic of Ireland’.

In our opinion, the financial statements:

• give a true and fair view of the financial position of the Fund as at 31 January 2019 and of the netrevenue and the net capital gains on the scheme property of the Fund for the year then ended; and

• have been properly prepared in accordance with United Kingdom Generally Accepted AccountingPractice including FRS 102 ‘The Financial Reporting Standard applicable to the UK and Republicof Ireland’.

Basis for opinionWe conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) andapplicable law. Our responsibilities under those standards are further described in the Auditor’sresponsibilities for the audit of the financial statements section of our report below. We are independentof the Fund in accordance with the ethical requirements that are relevant to our audit of the financialstatements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethicalresponsibilities in accordance with these requirements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis forour opinion.

Conclusions relating to going concernWe have nothing to report in respect of the following matters in relation to which the ISAs (UK) requireus to report to you where:

• the Manager’s use of the going concern basis of accounting in the preparation of the financialstatements is not appropriate; or

• the Manager has not disclosed in the financial statements any identified material uncertainties thatmay cast significant doubt about the Fund’s ability to continue to adopt the going concern basis ofaccounting for a period of at least twelve months from the date when the financial statements areauthorised for issue.

Independent auditor’s report to the unitholders of the PUTM Bothwell North America Fund

46


Other informationThe other information comprises the information included in the annual report, other than the financialstatements and our auditor’s report thereon. The Manager is responsible for the other information.

Our opinion on the financial statements does not cover the other information and, except to the extentotherwise explicitly stated in this report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the otherinformation and, in doing so, consider whether the other information is materially inconsistent with thefinancial statements or our knowledge obtained in the audit or otherwise appears to be materiallymisstated. If we identify such material inconsistencies or apparent material misstatements, we arerequired to determine whether there is a material misstatement in the financial statements or a materialmisstatement of the other information. If, based on the work we have performed, we conclude thatthere is a material misstatement of the other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the rules of the Collective Investment SchemesSourcebook of the Financial Conduct AuthorityIn our opinion:

• the financial statements have been properly prepared in accordance with the Statement ofRecommended Practice relating to Authorised Funds, the rules of the Collective InvestmentSchemes Sourcebook of the Financial Conduct Authority and the Trust Deed;

• the information given in the Manager’s Report for the financial year for which the financialstatements are prepared is consistent with the financial statements; and

• there is nothing to indicate that proper accounting records have not been kept or that the financialstatements are not in agreement with those records.

Matters on which we are required to report by exceptionWe have nothing to report in respect of the following matter in relation to which the CollectiveInvestment Schemes Sourcebook of the Financial Conduct Authority rules requires us to report to you if,in our opinion:

• we have not received all the information and explanations which, to the best of our knowledge andbelief, are necessary for the purposes of our audit.

Responsibilities of the ManagerAs explained more fully in the Manager’s responsibilities statement set out on page 43, the Manager isresponsible for the preparation of the financial statements and for being satisfied that they give a trueand fair view, and for such internal control as the Manager determines is necessary to enable thepreparation of financial statements that are free from material misstatement, whether due to fraud orerror.

In preparing the financial statements, the Manager is responsible for assessing the Fund’s ability tocontinue as a going concern, disclosing, as applicable, matters related to going concern and using thegoing concern basis of accounting unless the Manager either intends to liquidate the Fund or to ceaseoperations, or has no realistic alternative but to do so.

47

Auditor’s responsibilities for the audit of the financial statementsOur objectives are to obtain reasonable assurance about whether the financial statements as a wholeare free from material misstatement, whether due to fraud or error, and to issue an auditor’s report thatincludes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that anaudit conducted in accordance with ISAs (UK) will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material if, individually or in theaggregate, they could reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on theFinancial Reporting Council’s website at https://www.frc.org.uk/auditorsresponsibilities. This descriptionforms part of our auditor’s report.

Use of our reportThis report is made solely to the unitholders of the Fund, as a body, pursuant to Paragraph 4.5.12 ofthe rules of the Collective Investment Schemes Sourcebook of the Financial Conduct Authority.

Our audit work has been undertaken so that we might state to the unitholders of the Fund those matterswe are required to state to them in an auditor’s report and for no other purpose. To the fullest extentpermitted by law, we do not accept or assume responsibility to anyone other than the Fund and theunitholders of the Fund as a body, for our audit work, for this report, or for the opinions we haveformed.

Ernst & Young LLPStatutory AuditorEdinburgh11 April 2019

Notes:

1. The maintenance and integrity of the Phoenix Unit Trusts web site is the responsibility of theManager; the work carried out by the auditors does not involve consideration of these matters and,accordingly, the auditors accept no responsibility for any changes that may have occurred to the


Appendix (Unaudited)

The Fund carried out stocklending activities for the purpose of efficient portfolio management andin order to generate income.

Revenue earned from these activities is shown in the Statement of Total Return.

Global DataAmount of securities and commodities on loan % of total lendable assets*

Securities 0.06

Amount of assets engaged in each type of SFT

Amount of assets % of AUM

949,440 0.06

* Total lendable assets excludes cash and cash equivalents. It also excludes other monetary amounts such asnet debtors and creditors which are not deemed ‘lendable assets’.

Concentration DataAll collateral issuers (across all SFT) Collateral Fair valueIssuer Holding £’000

US Treasury 3% 15/08/2048 1,295,500 993Duke Realty 32 1Extra Space Storage 9 1Mid-America Apartment Communities 8 1UDR 19 1Vornado Realty Trust 12 1SL Green Realty 6 –Kimco Realty 30 –Macerich 8 –

All counterparties Gross volume of outstanding transactions Fair valueCounterparty £’000

Citigroup Global Markets Limited 949

48

Appendix (Unaudited)

Aggregate DataType and quality of collateral Fair valueType Quality* £’000

Bonds Investment grade 993Equities Investment grade 5

998

* Quality of collateral has been interpreted as pertaining to bond instruments, which have been assessed andreported in accordance with whether they are considered investment grade, below investment grade or not-rated.

Maturity tenor of collateral Fair valueMaturity £’000

Rolling Maturity 998

998

Currency of collateral Fair valueCurrency £’000

US Dollar 998

998

Maturity tenor of SFTs Fair valueMaturity £’000

Rolling Maturity 949

949

Country in which counterparties are established

Counterparty

All counterparties are UK based

Return and cost Gross return Cost % of overall Net return £’000 £’000 returns £’000

Fund 50 9 82 41

50 9 41 The gross earnings were split by the lending agent as follows: – 82% to the Lender (PUTM Bothwell North America Fund)– 8% to the Manager Phoenix Unit Trust Managers Limited– 10% retained by the Lending Agent (eSec)

49

50

Corporate information

The information in this report is designed to enable unitholders to make an informed judgement on theactivities of the Fund during the period it covers and the results of those activities at the end of the year.

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 www.phoenixunittrust.co.uk.

Administration & Dealing: 0345 584 2803 (between the hours of 9am to 5pm).

Remuneration

The Manager has adopted a remuneration policy, up-to-date details of which can be found onwww.phoenixunittrust.co.uk. This statement describes how remuneration and benefits are calculated andidentifies the committee which oversees and controls this policy. A paper copy of these details can berequested free of charge from the Manager.

This statement fulfils Phoenix Unit Trust Managers Ltd’s (‘the Manager’) obligations as an authorised UCITSManager in respect of compliance with the UCITS V Remuneration Code and contains relevant remunerationdisclosures.

PUTM Unit Trusts are managed by Phoenix Unit Trust Managers Ltd, which is a subsidiary of Phoenix LifeLimited, part of The Phoenix Group plc (‘the Group’).

The Remuneration Committee (‘the Committee’) of the Group has established a Remuneration Policy whichapplies to all entities of the Group. The guiding principles of this policy ensure sound and effective riskmanagement so as not to encourage risk-taking outside of the Group’s risk appetite, and supportmanagement in the operation of their business through identification of minimum control standards and keycontrols. The Committee approves the list of UCITS Code Staff annually and identified UCITS Code Staff areannually notified of their status and the associated implications.

Further information on the Group Remuneration Policy can be found in the Group annual reports andaccounts which can be found on www.phoenixgroup.com.

The below table provides detail of remuneration provided, split between fixed and variable remuneration, forUCITS Code Staff (defined as all staff whose professional activities have material impact on the risk profilesof the fund it manages).

As at 31 December 2018 Headcount Total remuneration

Phoenix Unit Trust Managers 2 39,675.21of whichFixed Remuneration 2 30,603.21Variable Remuneration 1 9,072.00Carried Interest n/a

Highest paid Director’s Remuneration 24,675.21

51


The Directors are employed by fellow entities of the Group. The total compensation paid to the Directors ofthe Manager is in respect of services to the Manager, irrespective of which entity within the Phoenix Grouphas paid the compensation.

Please note that due to the employment structure and resourcing practices of the Group, the staff indicatedin this table may also provide services to other companies in the Group.

The table states the actual number of employees who are fully or partly involved in the activities of theManager, no attempt has been made to apportion the time spent specifically in support of each fund as thisdata is not captured as part of the Manager’s normal processes.

The remuneration disclosed is the total remuneration for the year and has been apportioned between theprovisions of services to the Manager and not the fund.

Total remuneration can include any of the following:

– Fixed pay and annual/long term incentive bonuses.

– Where fixed pay is directly attributable to PUTM Unit Trusts (for example, fees for Phoenix Unit TrustManagers Ltd), 100% of those fees.

– For other individuals, pro-rated using the average AUM of PUTM Unit Trusts (as a proportion of theaggregate average AUM of The Phoenix Group plc) as proxy.

Senior Management includes – PUTM Board and PUTM Executive Committees.

Other Code Staff includes all other UCITS Code Staff not covered by the above.

Risks

The price of units and the revenue from them can go down as well as up and investors may not get back theamount they invested, particularly in the case of early withdrawal. Tax levels and reliefs are those currentlyapplicable 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.

52


Investment AdviserHenderson Global Investors Limited 201 Bishopsgate London EC2M 3AE Authorised and regulated by the FinancialConduct Authority.

Trustee HSBC Bank plc1-2 Lochside WayEdinburgh ParkEdinburgh EH12 9DTAuthorised by the Prudential Regulation Authorityand regulated by the Financial Conduct Authority andthe Prudential Regulation Authority.

Independent AuditorErnst & Young LLPAtria One144 Morrison StreetEdinburgh EH3 8EX

Authorised statusThis Fund is an Authorised Unit Trust scheme undersection 243 of the Financial Services & Markets Act2000 and is categorised under the CollectiveInvestment Schemes Sourcebook as a UCITS fund.

ManagerPhoenix Unit Trust Managers Limited (PUTM)1 Wythall Green WayWythallBirmingham B47 6WGTel: 0345 584 2803Registered in England – No.03588031Authorised and regulated by the Financial Conduct Authority.

DirectorsAndrew Moss PUTM Director, Chief Executive

Phoenix Life;

Craig Baker PUTM Director, Head of InvestmentManagement Phoenix Life;

Mike Urmston Non Executive Director of PUTM;

Nick Poyntz-Wright Non Executive Director of PUTM(appointed 6 July 2018).

Registrar and correspondence addressPhoenix Unit Trust Managers LimitedFloor 1, 1 Grand Canal SquareGrand Canal HarbourDublin 2IrelandAuthorised and regulated by the Financial Conduct Authority.

B596.01.19

Telephone calls may be monitored and/or recorded for the purposes of security, internal training, accurate accountoperation, internal customer monitoring and to improve the quality of service.

Please note the Key Investor Information Document (KIID), the supplementary Information Document (SID) and thefull prospectus are available free of charge. These are available by contacting Client Services on 0345 584 2803.

Phoenix Unit Trust Managers Limited does not accept liability for any claims or losses of any nature arising directlyor indirectly from use of the data or material in this report. The information supplied is not intended to constituteinvestment, tax, legal or other advice.

Phoenix Unit Trust Managers Limited* is a Phoenix Group Company. Registered in England No 3588031.Registered office: 1 Wythall Green Way, Wythall, Birmingham B47 6WG.*Authorised and regulated by the Financial Conduct Authority.

Contact: Client ServicesCall: 0345 584 2803Correspondence Address: Floor 1, 1 Grand Canal Square, Grand Canal Harbour, Dublin 2, IrelandVisit: phoenixunittrust.co.uk