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PHOENIX UNIT TRUST MANAGERS

MANAGER’S ANNUAL REPORTFor the year: 1 October 2018 to 30 September 2019

PUTM FAR EASTERN UNIT TRUST

Contents

Investment review* 2-3

Portfolio of investments* 4-6

Top ten purchases and sales 7

Statistical information* 8-11

Statements of total return & change in net assetsattributable to unitholders 12

Balance sheet 13

Notes to the financial statements 14-23

Distribution tables 24

Responsibilities of the manager and the trustee 25

Trustee’s report and directors’ statement 26

Independent auditor’s report 27-29

Corporate information* 30-32

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

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Dear Investor

Welcome to the PUTM Far Eastern Unit Trust annualreport for the 12 months to 30 September 2019.

Performance Review

Over the review period, the PUTM Far Eastern Unit Trustreturned 8.6% (Source: Standard Life Investments for 12months to 30/09/19). This is compared to its benchmarkindex, which returned 4.2 % (Source: Datastream, MSCIAsia Pacific ex-Japan, Net Return, GBP for 12 months to30/09/19).

In the table below, you can see how the Fund performedagainst its benchmark index, over the last five discreteone-year periods.

Investment review

Source: Fund performance is Standard Life Investments for to 30 September for each year. Benchmark Indexperformance is Datastream, MSCI Asia Pacific ex-Japan, Net Return, GBP to 30 September for each year.

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 Far Eastern Unit Trust 8.6 6.4 19.9 35.4 -9.4

Benchmark 4.2 5.2 17.2 38.2 -7.2

Sept 18-19 Sept 17-18 Sept 16-17 Sept 15-16 Sept 14-15% growth % growth % growth % growth % growth

3

Portfolio and Market Review

Despite periods of heightened volatility, the performanceof Asia-Pacific markets was ultimately positive over theyear.

A broad-based sell-off that started in October draggedAsian equities lower in the latter stages of 2018. Still-heightened US-China trade tensions, slowing globalgrowth and worsening political risks hampered markets.Policy tightening by the Federal Reserve also had animpact, as it raised rates for the fourth time, and forecastfurther hikes in 2019. However, Asian stocks reboundedin the first three months of 2019. A dovish shift by majorcentral banks and signs of easing US-China tradetensions were well received by investors. All marketsmoved higher, with China recording the most significantgains.

That said, a flaring of US-China trade tensions thentriggered a sell-off in May, but investor confidencesubsequently recovered as both sides agreed to resumetalks. More dovish signals from major central banks, dueto mounting worries about a global economic slowdown,also boosted sentiment.

Asia-Pacific stocks were again uneven as we movedthrough the final stages of the 12 months under review. Are-escalation of US-China trade tensions, along withmounting fears about global growth, dampened riskappetite. Fresh political uncertainty weighed on sentimentas well. Notably, Middle East tensions ratcheted higherafter attacks on Saudi oil facilities, which triggered oil-price volatility.

From a Fund perspective, Thai mobile operator AdvancedInfo Service aided returns, as it received an extension forpayment of its 900MHz spectrum license by taking partin the 700MHz auction. Not holding Chinese internetgiant Baidu also benefited performance. It releaseddisappointing results and forecast further weakness,given the tougher macro backdrop, stricter regulationsand intensifying competition. Additional positivesincluded China Resources Land, Anta Sports Productsand Kotak Mahindra Bank.

Conversely, Hong Kong developer Swire Properties washampered by the prolonged protests in the city.Elsewhere, Australian fruit and vegetable producer CostaGroup dragged on lower profits due to weaker tomato,berry and avocado pricing; and Syrah Resources retreatedwhen its third-quarter production update reflectedcontinued operational weakness. Positions in ChinaNational Petroleum, National Australia Bank and Hon HaiPrecision also disappointed.

Market Outlook and Fund Strategy

The outlook for Asian equities remains uncertain, giventhe manifold risks. US-China relations will continue toinfluence market direction. Political hotspots elsewhereinclude rising Middle East tensions, the Japan-Korea spatand domestic unrest in Hong Kong and Indonesia. Allthese compound fears about a global economicslowdown and add to the sense of unease. While theenvironment is tough, we see silver linings. Across theregion, policymakers have pulled fiscal and monetarypolicy levers to shore up growth, liquidity and businessconfidence. The quality of our holdings is another sourceof encouragement. Experienced management and solidfinancials should help them overcome current challenges,while their clear competitive advantages augur well forgrowth.

Investment review

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Portfolio of investments (unaudited)

Investments held at 30 September 2019 Market Percentage of value total net assets Holding Investment £ %

Australia (30/09/18 – 16.00%) 14.78 Consumer Goods 55,130 Bapcor 219,045 0.93 26,068 Treasury Wine Estates 264,659 1.13

Consumer Services 18,968 Aristocrat Leisure 315,407 1.34 6,218 Woolworths 126,599 0.54

Financials 25,089 Australia & New Zealand Banking Group 392,543 1.67 9,900 Commonwealth Bank of Australia 439,043 1.87 44,909 Goodman 346,764 1.48 24,422 Westpac Banking 396,984 1.69

Healthcare 3,140 Cochlear 358,426 1.52 4,790 CSL 613,961 2.61

Bermuda (30/09/18 – 0.80%) 0.71 Industrials 6,900 Jardine Strategic (Singapore registered) 167,586 0.71

Cayman Islands (30/09/18 – 15.93%) 16.86 Consumer Goods 57,700 Budweiser Brewing 167,809 0.71

Consumer Services 7,383 Alibaba Group Holding & ADR~ 995,602 4.24 2,759 Ctrip ADR~ 65,059 0.28 12,047 Huazhu Group 319,817 1.36

Financials 179,976 China Resources Land 612,062 2.60

Technology 4,700 Autohome ADR~ 329,162 1.40 506 NetEase ADR~ 107,184 0.46 39,931 Tencent Holdings 1,366,254 5.81

China (30/09/18 – 11.18%) 10.43 Financials 824,904 China Construction Bank 510,605 2.17 144,614 China Merchants Bank 558,527 2.38 88,479 Ping An Insurance 825,180 3.51

Industrials 59,000 Anhui Conch Cement 284,760 1.21 98,661 Weichai Power 115,593 0.49

Oil & Gas 325,250 China Petroleum & Chemical 157,149 0.67

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Hong Kong (30/09/18 – 10.86%) 10.28 Financials 88,606 AIA Group 679,833 2.89 104,759 Hang Lung Properties 193,339 0.82 10,438 Hong Kong Exchanges and Clearing 248,699 1.06 11,174 Sun Hung Kai Properties 130,569 0.55 95,500 Swire Properties 243,582 1.04

Oil & Gas 309,027 CNOOC 383,208 1.63

Technology 31,800 ASM Pacific Technology 315,534 1.34

Telecommunications 33,147 China Mobile (HK) 222,703 0.95

India (30/09/18 – 8.11%) 11.80 Consumer Goods 13,000 Hindustan Unilever 295,703 1.26 124,087 ITC 370,057 1.57

Financials 25,600 Housing Development Finance Corporation 580,868 2.47 16,900 Kotak Mahindra Bank 318,954 1.36 10,731 SBI Life Insurnace Company 104,240 0.44

Industrials 20,269 Larsen & Toubro 342,944 1.46 7,070 UltraTech Cement 352,253 1.50

Technology 17,000 Tata Consultancy Services 409,585 1.74

Indonesia (30/09/18 – 2.12%) 3.17 Consumer Goods 532,800 Astra International 200,600 0.85

Financials 205,500 Bank Central Asia 356,849 1.52 530,313 Bank Ratyat Indonesia 125,113 0.53

Industrials 291,746 AKR Corporindo 63,316 0.27

Malaysia (30/09/18 – 0.99%) 1.12 Financials 67,500 Public Bank 262,868 1.12

Papua New Guinea (30/09/18 – 0.64%) 0.53 Oil & Gas 30,794 Oil Search 123,535 0.53

Philippines (30/09/18 – 0.94%) 1.01 Industrials 17,200 Ayala 238,404 1.01

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Singapore (30/09/18 – 4.68%) 4.15 Financials 143,000 Capitaland 296,706 1.26 17,579 DBS Group 258,212 1.10 36,070 Overseas-Chinese Banking 229,822 0.98 12,584 United Overseas Bank 189,798 0.81

South Korea (30/09/18 – 10.33%) 9.72 Basic Materials 1,416 LG Chem 287,177 1.22

Financials 4,403 ING Life Insurance Korea 80,636 0.34 8,096 KB Financial 234,210 1.00

Industrials 25,100 Samsung Electronics 834,230 3.55 14,850 Samsung Electronics Pref 397,868 1.69 977 Samsung SDI 147,449 0.63

Technology 5,433 SK Hynix 302,183 1.29

Taiwan (30/09/18 – 8.84%) 7.31 Consumer Services 14,124 President Chain Store 107,017 0.46

Technology 191,540 Taiwan Semiconductor Manufacturing 1,361,057 5.79

Telecommunications 85,000 Taiwan Mobile 249,163 1.06

Thailand (30/09/18 – 3.47%) 3.13 Financials 52,119 Kasikornbank FB 217,432 0.92

Oil & Gas 197,250 PTT Public Company Limited 239,792 1.02

Telecommunications 48,002 Advanced Info Service 279,338 1.19

United Kingdom (30/09/18 – 3.13%) 2.93 Basic Materials 26,937 BHP Group 467,626 1.99 5,242 Rio Tinto 221,291 0.94

Portfolio of investments 23,019,543 97.93 Net other assets 486,967 2.07

Net assets 23,506,510 100.00

Unless otherwise stated, all investments are approved securities being either officiallylisted in a member state or traded on or under the rules of an eligible securities market.

~ADR – American Depositary Receipt

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Purchases Cost£

Commonwealth Bank of Australia 460,345Cochlear 358,676Hindustan Unilever 246,495Taiwan Mobile 230,157Housing Development Finance Corporation 183,622Tencent Holdings 166,531Budweiser Brewing 162,307Bank Ratyat Indonesia 123,991Alibaba Group Holding & ADR 118,964SBI Life Insurnace Company 97,915

Subtotal 2,149,003Other purchases 941,438

Total purchases for the year 3,090,441

Sales Proceeds£

Anta Sports Products 484,979National Australia Bank 335,985Voltas 264,569Hon Hai Precision Industry 261,345Weichai Power 229,408President Chain Store 202,202Australia & New Zealand Banking Group 188,427Aristocrat Leisure 166,400Ctrip ADR 158,469Sino Biopharmaceutical 153,009

Subtotal 2,444,793Other sales 2,370,463

Total sales for the year 4,815,256

Top ten purchases and salesFor the year ended 30 September 2019

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Statistical information

Comparative tables Income 30/09/19** 30/09/18 30/09/17Change in net assets per unit pence pence penceOpening net asset value per unit 532.23 515.98 442.86

Return before operating charges* 58.33 30.44 85.45Operating charges (5.08) (6.24) (6.18)

Return after operating charges* 53.25 24.20 79.27

Distributions on income units (0.79) (7.95) (6.15)

Termination price per unit 584.69 – –

Closing net asset value per unit – 532.23 515.98

*after direct transaction costs of: 0.25 0.62 1.17

PerformanceReturn after charges 10.01% 4.69% 17.90%

Other informationClosing net asset value (£000) – 4 3Closing number of units – 646 646Operating charges – 1.14% 1.27%Direct transaction costs 0.05% 0.11% 0.24%

Prices+

Highest unit price (pence) 620.50 601.78 570.48Lowest unit price (pence) 470.37 514.91 426.57

** Income class terminated on 22 July 2019.+High and low price disclosures are based on quoted unit prices. Therefore, the opening andclosing NAV prices may fall outside the high/low price threshold.

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Comparative tables Accumulation 30/09/19 30/09/18 30/09/17Change in net assets per unit pence pence penceOpening net asset value per unit 833.05 795.53 674.49

Return before operating charges* 70.39 47.14 130.42Operating charges (10.11) (9.62) (9.38)

Return after operating charges* 60.28 37.52 121.04

Distributions on accumulation units (12.45) (12.27) (9.39)

Retained distributions on accumulation units 12.45 12.27 9.39

Closing net asset value per unit 893.33 833.05 795.53

*after direct transaction costs of: 0.40 0.96 1.78

PerformanceReturn after charges 7.24% 4.72% 17.95%

Other informationClosing net asset value (£000) 23,507 23,967 25,014Closing number of units 2,631,344 2,877,059 3,144,345Operating charges 1.21% 1.14% 1.27%Direct transaction costs 0.05% 0.11% 0.24%

Prices+

Highest unit price (pence) 988.54 929.16 871.33Lowest unit price (pence) 736.34 795.06 650.01

+High and low price disclosures are based on quoted unit prices. Therefore, the opening andclosing NAV prices may fall outside the high/low price threshold.

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Investment objective

The Fund aims to provide capital growth by outperforming the MSCI AC Asia Pacific exJapan Index (“the Index”) before fees by 0.5% to 1.5% over any given 3 year period.

Investment policy

The Fund aims to achieve its objective by investing at least 70% of the portfolio inequities or equity related securities in far eastern markets excluding Japan that areconstituents of the Index. The Fund may invest up to 30% in developed Asiancompanies listed outside of the Index.

The Fund may also invest in convertible stocks, stock exchange listed warrants,depositary receipts, and any other such investments which entitle the holder tosubscribe for or convert into the equity of the company and/or where the share priceperformance is, in the opinion of the Investment Manager, influenced significantly bythe stock market performance of the company's ordinary shares. Not more than 10%in value of the property of any of the Schemes may consist of transferable securities,which are non-approved securities and/or unlisted securities. The Fund may invest incollective investment schemes, money-market instruments, deposits, cash and nearcash.

Derivatives will be used for efficient portfolio management only.

Investment Strategy

Although at least 70% of the Fund is invested in components of the Index, the Fund isactively managed. The Investment Adviser uses research techniques to selectindividual holdings. The research process is focused on finding high quality companiesat attractive valuations that can be held for the long term The Investment Adviserreferences the Index, which means that while the Fund is not required to match theweightings of the Index and does not concentrate on any particular sector, the Fund ismanaged within constraints, so that divergence from the Index is controlled. TheFund’s portfolio may, therefore, be similar to the components of the Index.

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fi

Risk and reward profileThe Risk and Reward Indicator table demonstrates where the Fund ranks in terms of itspotential risk and reward. The higher the rank the greater the potential reward but thegreater the risk of losing money. It is based on past data, may change over time andmay not be a reliable indication of the future risk profile of the Fund. The shaded area inthe 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 6 (30/09/18: 5) because funds of this type have experiencedhigh rises and falls in value in the past. Although this is a high risk ranking it is not thehighest. The above figure applies to the following unit class:

• Accumulation

Please note that even the lowest risk class can lose you money and that extreme marketcircumstances can mean you suffer severe losses in all cases. Please note the Fund’srisk category may change in the future. The indicator does not take into account thefollowing risks of investing in this Fund:

• Investing overseas can bring additional returns and spread risk to different markets.There are risks, however, that changes in currency rates will reduce the value of yourinvestment.

• 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.


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Annual financial statementsFor the year ended 30 September 2019

Statement of total return 30/09/19 30/09/18 Notes £ £ £ £

Income

Net capital gains 4 1,257,612 846,121 Revenue 5 649,705 707,748

Expenses 6 (265,794) (285,293)

Interest payable and similar charges (87) (271)

Net revenue before taxation 383,824 422,184

Taxation 7 (50,149) (64,956)

Net revenue after taxation 333,675 357,228

Total return before distributions 1,591,287 1,203,349

Distributions 8 (335,037) (362,416)

Change in net assets attributable to unitholdersfrom investment activities 1,256,250 840,933

Statement of change in net assets attributable to unitholders

30/09/19 30/09/18 £ £ £ £

Opening net assets attributable to unitholders 23,970,807 25,017,409

Amounts receivable on issue of units – 51,300

Amounts payable on cancellation of units (2,049,365) (2,293,121)

(2,049,365) (2,241,821)

Change in net assets attributable to unitholdersfrom investment activities 1,256,250 840,933

Retained distributions on accumulation units 328,818 354,286

Closing net assets attributable to unitholders 23,506,510 23,970,807

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Balance sheet 30/09/19 30/09/18 Notes £ £ £ £

Assets:Fixed assets:Investments 23,019,543 23,496,201

Current assets:Debtors 9 46,336 45,137Cash and bank balances 10 537,303 682,532

Total current assets 583,639 727,669

Total assets 23,603,182 24,223,870

Liabilities:

Creditors:Bank overdraft 11 – (224,249) Other creditors 12 (96,672) (28,766) Distribution payable – (48)

Total liabilities (96,672) (253,063)

Net assets attributableto unitholders 23,506,510 23,970,807

Annual financial statementsAs at 30 September 2019

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Notes to the financial statements

Note 1 Accounting policies(a) Basis of preparation

The financial statements have been prepared under the historical cost basis,as modified by the revaluation of investments and in compliance withFinancial Reporting Standard (FRS102) and in accordance with theStatement of Recommended Practice (SORP) for financial statements ofAuthorised Funds issued by The Investment Association in May 2014 andamended in June 2017. The financial statements have been prepared on agoing concern basis. Unless otherwise stated all accounting policies areconsistent with those of the prior year.

(b) Valuation of investmentsThe quoted investments of the Fund have been valued at bid dealing prices asat 12 noon on 30 September 2019, the last valuation point in the accountingyear, in accordance with the Trust Deed.

(c) Foreign exchangeTransactions in foreign currencies during the year are translated into Sterling(the functional currency of the Fund), at the rates of exchange ruling on thetransaction date. Amounts held in foreign currencies have been translated atthe rate of exchange ruling at 12 noon, 30 September 2019, the lastvaluation point in the accounting year.

(d) RevenueDividends receivable from equity investments are credited to revenue whenthey are first quoted ex-dividend. Interest receivable on bank deposits isaccounted for on an accruals basis.

(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 thereceipt of a special dividend results in a significant reduction in the capitalvalue of the holding, then the special dividend should be treated as capital innature so as to ensure the matching principle is applied to gains and losses.Otherwise, the special dividend should be treated as revenue.

(f) ExpensesExpenses are accounted for on an accruals basis. Expenses of the Fund arecharged against revenue, except for costs associated with the purchase andsale of 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 collectiveinvestment schemes are disclosed net of any related tax credit. Overseasdividends, unfranked distributions from UK collective investment schemes,and distributions from overseas collective investment schemes are disclosedgross of any tax suffered, the tax element being separately disclosed in thetaxation note.

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Note 1 Accounting policies (continued)(h) Deferred taxation

Deferred 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 assetsare recognised only to the extent that the Manager considers it is more likelythan not that there will be taxable profits from which underlying timingdifferences can be deducted.

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 bedistributed/accumulated to unitholders.

The Fund is not more than 60% invested in qualifying investments (asdefined by SI 2006/964, Reg 20) and will pay a dividend distribution.

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

(c) Apportionment to multiple unit classesWith the exception of the Manager’s periodic charge, the allocation ofrevenue and expenses to each unit class is based upon the proportion of theFund’s assets attributable to each unit class on the day the revenue is earnedor the expense is suffered. The Manager’s periodic charge is specific to eachunit class. Tax will be allocated between the unit classes according toincome. Consequently, the revenue available to distribute for each unit classwill differ.

Note 3 Risk management policiesThe risks arising from the Fund’s financial instruments are market price risk,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 offinancial instruments held. It represents the potential loss the Fund mightsuffer through holding market positions in the face of price movements. TheFund’s investment portfolio is exposed to market fluctuations which aremonitored by the Manager in pursuit of the investment objectives andpolicies. Adherence to investment guidelines and to investment andborrowing powers set out in the Trust Deed, the Prospectus and in theCollective Investment Schemes Sourcebook (“the Sourcebook”) mitigates therisk of excessive exposure to any particular type of security 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.

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Note 3 Risk management policies (continued)(c) Foreign currency risk

All of the Fund’s investment portfolio is invested in overseas securities andthe Balance sheet can be (significantly) affected by movements in foreignexchange rates. The Fund may be subject to short term exposure to exchangerate movements between placing the purchase or sale of securities andagreeing a related currency transaction albeit usually the two transactions areagreed 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 therisk that the counterparty will not deliver the investment (purchase) or cash(sale) after the Fund has fulfilled its responsibilities. The Fund only buys andsells investments through brokers which have been approved by the Manageras an acceptable counterparty. This list is reviewed annually.

(f) DerivativesDerivative 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 therisk profile of the Fund. Use of derivatives will not knowingly contravene anyrelevant investment objective or limits.

The Manager has used forward foreign currency contracts to hedge theportfolio where assets are denominated in foreign currency. The purpose ofundertaking these contracts is to protect the portfolio as far as possible from amovement in the value of exchange rates.

There were no derivatives held at the year end.

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

30/09/19 30/09/18 £ £

Gains on non-derivative securities 1,248,157 832,840Gains/(losses) on derivative contracts 814 (285)Currency (losses)/gains (12,108) 11,142Handling charges (11,706) (4,084)Capital special dividends 31,805 6,508Commission reimbursement 650 –

Net capital gains 1,257,612 846,121

Note 5 Revenue 30/09/19 30/09/18 £ £

UK dividends 43,007 26,298Overseas dividends 605,020 680,891Bank interest 556 559Liquidity interest 1,122 –

Total revenue 649,705 707,748

Note 6 Expenses 30/09/19 30/09/18 £ £(a) Payable to the Manager or associates of the Manager

and agents of either of them:Manager’s periodic charge 233,818 257,596

(b) Payable to the Trustee or associates of the Trustee and agents of either of them:Trustee’s fees 1,668 1,825

(c) Other expenses:Audit fee 7,260 6,780Safe custody charges 7,942 9,328Printing & stationery 445 1,902FCA fee 228 118Revenue collection expenses 177 28Professional fees 14,256 7,716

30,308 25,872

Total expenses 265,794 285,293

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Note 7 Taxation 30/09/19 30/09/18 £ £(a) Analysis of tax charge for the year

Overseas withholding tax 48,787 59,768Overseas capital gains tax 1,362 5,188

Total taxation (Note 7(b)) 50,149 64,956

(b) Factors affecting the tax charge for the year

The 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 383,824 422,184

Corporation tax at 20% (30/09/18: 20%) 76,765 84,437

Effects of:Revenue not subject to taxation (126,541) (138,341)Overseas withholding tax 48,787 59,768Excess management expenses unutilised 49,923 54,375Tax relief on overseas tax suffered (147) (471)Overseas capital gains tax 1,362 5,188

Total tax charge for the year (Note 7(a)) 50,149 64,956

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

(c) Provision for deferred taxationAt 30 September 2019 the Fund had a potential deferred tax asset of£571,418 (30/09/18: £521,495) in relation to surplus managementexpenses of £2,857,092 (30/09/18: £2,607,476). 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 the yearor the prior year.

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

30/09/19 30/09/18 £ £

Interim 33,649 27,729Final 295,174 326,608

328,823 354,337

Amounts deducted on cancellation of units 6,214 8,079

Net distribution for the year 335,037 362,416

Net revenue after taxation 333,675 357,228Capital tax balances 1,362 5,188

Net distribution for the year 335,037 362,416

Details of the distribution per unit are set out in the tables on page 24.


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Note 9 Debtors 30/09/19 30/09/18 £ £

Accrued income 46,336 45,073FCA fee prepaid – 64

Total debtors 46,336 45,137

Note 10 Cash and bank balances 30/09/19 30/09/18 £ £

Cash and bank balances 166,181 682,532Time deposits 371,122 –

Total cash and bank balances 537,303 682,532

Note 11 Bank overdraft 30/09/19 30/09/18 £ £

Bank overdraft – 224,249

Total bank overdraft – 224,249

Note 12 Other creditors 30/09/19 30/09/18 £ £

Purchases awaiting settlement 22,667 –Manager’s periodic charge payable 63,613 19,886Trustee’s fees payable 308 298Safe custody charges payable 1,484 1,544Audit fee payable 7,020 6,780FCA fee payable 59 –Handling charges payable 1,521 258

Total other creditors 96,672 28,766

Note 13 Reconciliation of units Income Accumulation

Opening units at 01/10/18 646 2,877,059Unit movements in year:Units cancelled (646) (245,715)

Closing units at 30/09/19 – 2,631,344

Note 14 Contingencies and commitmentsAt 30 September 2019 the Fund had no outstanding calls on partly paidshares, no potential underwriting commitments or any other contingentliabilities (30/09/18: £nil).

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Note 15 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 also partof the Phoenix Group, is a material unitholder in the Fund and therefore a relatedparty, holding 99.68% of the accumulation units at the year end (30/09/18:99.71%).

Manager’s periodic charge paid to the Manager, Phoenix Unit Trust ManagersLimited, (and registration fees paid to Standard Life Investments (Mutual Funds)Limited) or its associates are shown in Note 6(a) and details of the units issued andcancelled by the Manager are shown in the Statement of change in net assetsattributable to unitholders and Note 8. Any balances due to/from the Manager or itsassociates at 30 September 2019 in respect of these transactions are shown inNotes 9 and 11.

Note 16 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 of whichis to manage the currency and market risks arising from the Fund’s investmentactivities; and

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

There was no counterparty exposure held at the year end.

Currency exposureAn analysis of the monetary assets and liabilities at the year end is shown below: Net currency assets Net currency assets 30/09/19 30/09/18

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

Sterling 322,597 688,917 1,011,514 (252,999) 751,488 498,489Australian Dollar 7,431 3,596,966 3,604,397 17,405 3,988,370 4,005,775Hong Kong Dollar (3,795) 7,015,406 7,011,611 18,905 7,331,492 7,350,397 Indian Rupee – 2,774,604 2,774,604 1,073 1,944,896 1,945,969 Korean Won 1 2,283,753 2,283,754 1 2,475,201 2,475,202Singapore Dollar 10,072 974,538 984,610 – 1,123,004 1,123,004 Taiwan Dollar 10,183 1,717,237 1,727,420 558,486 2,118,168 2,676,654Indonesian Rupiah – 745,878 745,878 – 508,094 508,094 US Dollar 132,161 1,984,410 2,116,571 125,059 1,960,194 2,085,253Malaysian Ringgit – 262,868 262,868 – 238,339 238,339Other foreign currencies* 8,317 974,966 983,283 6,676 1,056,955 1,063,631

486,967 23,019,543 23,506,510 474,606 23,496,201 23,970,807

* foreign currencies included within ‘other foreign currencies’ above amounts to lessthan 5% (30/09/18: 5%) of the net asset value of the Fund.

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.

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Note 16 Financial instruments (continued)Interest profileAt the year end date, 2.29% (30/09/18: 1.91%) of the Fund’s net assets by valuewere interest bearing.

Interest rates earned/paid on deposits are earned/paid at a rate linked to LIBOR(London Interbank Offered Rate) or international equivalent.

Sensitivity analysisInterest rate risk sensitivityAs the majority of the Fund’s financial assets are non-interest bearing, the Fund is onlysubject to limited exposure to fair value interest rate risk due to fluctuations in levels ofmarket interest rates and therefore, no sensitivity analysis has been provided.

Foreign currency risk sensitivityA five percent increase in the value of the Fund’s foreign currency exposure wouldhave the effect of increasing the return and net assets by £1,124,749 (30/09/18: £1,174,809). A five percent decrease would have an equal and opposite effect.

Price risk sensitivityA five percent increase in the value of the Fund’s portfolio would have the effect ofincreasing the return and net assets by £1,175,326 (30/09/18: £1,198,540). A fivepercent decrease would have an equal and opposite effect.

Note 17 Fair value of investmentsThe fair value of the Fund’s investments has been determined using the hierarchy below.

This complies with the ‘Amendments to FRS102 – Fair value hierarchy disclosures’issued by the Financial Reporting Council in March 2016.

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

Level 2 Inputs other than quoted prices included within Level 1 that areobservable (i.e. developed using market data) for the asset or liability,either directly or indirectly.

Level 3 Inputs are unobservable (i.e. for which market data is unavailable) forthe asset or liability.

For the year ended 30/09/19Level 1 2 3 Total

Investment assets £ £ £ £Equities 23,019,543 – – 23,019,543

23,019,543 – – 23,019,543

For the year ended 30/09/18Level 1 2 3 Total

Investment assets £ £ £ £Equities 23,496,201 – – 23,496,201

23,496,201 – – 23,496,201

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Note 18 Portfolio transaction costs

For the year ended 30/09/19 Other TotalValue Commission Taxes expenses costs

Analysis of total purchases costs £ £ % £ % £ % £Equity transactions 3,077,648 2,907 0.09 550 0.02 1,004 0.03 3,082,109Corporate actions 8,332 – – – – – – 8,332

Total 3,085,980 2,907 550 1,004 3,090,441

Other TotalValue Commission Taxes expenses costs

Analysis of total sales costs £ £ % £ % £ % £Equity transactions 4,812,780 (1,714) (0.04) (1,434) (0.03) (3,256) (0.07) 4,806,376Corporate actions 8,880 – – – – – – 8,880

Total 4,821,660 (1,714) (1,434) (3,256) 4,815,256

Commission, taxes and other expenses as % of average net assets:Commission 0.02%Taxes 0.01%Other expenses 0.02%

For the year ended 30/09/18 Other TotalValue Commission Taxes expenses costs

Analysis of total purchases costs £ £ % £ % £ % £Equity transactions 7,255,878 5,216 0.07 3,827 0.05 1,826 0.03 7,266,747

Total 7,255,878 5,216 3,827 1,826 7,266,747

Other TotalValue Commission Taxes expenses costs

Analysis of total sales costs £ £ % £ % £ % £Equity transactions 8,865,602 (7,580) (0.09) (2,133) (0.02) (8,174) (0.09) 8,847,715

Total 8,865,602 (7,580) (2,133) (8,174) 8,847,715

Commission, taxes and other expenses as % of average net assets:Commission 0.05%Taxes 0.02%Other expenses 0.04%

Portfolio transaction costs are incurred by the Fund when buying and selling underlying investments. These costsvary 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 0.29% (30/09/18: 0.27%) being the differencebetween the respective bid and offer prices for the Fund’s investments.

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Note 19 Post Balance sheet eventsAs indicated in the accounting policies in Note 1(b), the investments have beenvalued at 12 noon business on 30 September 2019. Since that date the Fund’squoted bid price have risen from 893.33p to 932.14p for Accumulation units as at22 January 2020 (the latest applicable date before completion of the accounts), arise of 4.34% for Accumulation units.

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Interim distribution in pence per unitGroup 1: units purchased prior to 1 October 2018Group 2: units purchased 1 October 2018 to 31 March 2019 2019 2018 pence pence per unit per unit Net paid paid income Equalisation 31 May 31 MayIncome

Group 1 0.7875 — 0.7875 0.5987Group 2 0.7875 0.0000 0.7875 0.5987

Accumulation

Group 1 1.2291 — 1.2291 0.9175Group 2 1.2291 0.0000 1.2291 0.9175

Final distribution in pence per unitGroup 1: units purchased prior to 1 April 2019Group 2: units purchased 1 April 2019 to 30 September 2019 2019 2018 pence pence per unit per unit Net payable paid income Equalisation 30 Nov 30 NovIncome*

Group 1 n/a — n/a 11.3505Group 2 n/a n/a n/a 11.3505

Accumulation

Group 1 11.2176 — 11.2176 7.3552Group 2 11.2176 0.0000 11.2176 7.3552

* Income class terminated on 22 July 2019.

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 30 September 2019

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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 in 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 Far Eastern Unit Trust mustensure 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 the

Trust 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 the

UCITS 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.

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Trustee’s report and directors’ statement

Report of the Trustee to the Unitholders of the PUTM Far Eastern Unit Trust forthe period from 1 October 2018 to 30 September 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 ofthe price of the Trust’s units and the application of the Trust’s income inaccordance with the Regulations and the Scheme documents of the Trust; and

ii) has observed the investment and borrowing powers and restrictions applicableto the Trust in accordance with the Regulations and the Scheme documents ofthe Trust.

London HSBC Bank plc31 January 2020

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, Director31 January 2020 Andrew Moss, Director

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Independent auditor’s report to the unitholders of the PUTM Far Eastern Unit Trust

OpinionWe have audited the financial statements of the PUTM Far Eastern Unit Trust (“the Fund”) for the yearended 30 September 2019 which comprise the Statement of Total Return, the Statement of Change inNet Assets attributable to Unitholders, the Balance Sheet, the Distribution Tables and the related Notes1 to 19, including a summary of significant accounting policies. The financial reporting framework thathas been applied in their preparation is applicable law and United Kingdom Accounting Standards(United Kingdom Generally Accepted Accounting Practice) including FRS 102 ‘The Financial ReportingStandard 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 30 September 2019 and of thenet revenue 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.

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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 25, 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.

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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. Ouraudit work has been undertaken so that we might state to the unitholders of the Fund those matters weare 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 AuditorEdinburgh31 January 2020

Notes:

1. The maintenance and integrity of the Phoenix Unit Trust Managers Limited web site is theresponsibility of the Manager; the work carried out by the auditors does not involve consideration ofthese matters and, accordingly, the auditors accept no responsibility for any changes that may haveoccurred to the financial statements since they were initially presented on the web site.

2. Legislation in the United Kingdom governing the preparation and dissemination of financialstatements may differ from legislation in other jurisdictions.

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Corporate information (unaudited)

The information in this report is designed to enable unitholders to make an informed judgement on the activitiesof 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 & 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 be requestedfree of charge from the Manager.

This statement fulfils Phoenix Unit Trust Managers Limited’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 Limited, 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 support managementin the operation of their business through identification of minimum control standards and key controls. TheCommittee approves the list of UCITS Code Staff annually and identified UCITS Code Staff are annually notifiedof their status and the associated implications.

Further information on the Group Remuneration Policy can be found in the Group annual reports and accountswhich 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 profiles ofthe 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 The Directors are employed by fellow entities of the Group. The total compensation paid to the Directors of theManager is in respect of services to the Manager, irrespective of which entity within the Phoenix Group has paidthe compensation.

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

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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 Trust Managers Limited), 100% of those fees.

• For other individuals, pro–rated using the average AUM of PUTM Unit Trusts (as a proportion of the aggregate 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.

Assessment of Value

We are required to perform an annual assessment of the value for money for each unit class of PUTM FarEastern Unit Trust. This has been performed based on the information available as at 30 September 2019.

We have performed this review having regard to a wide range of factors. In doing so, we have madecomparison with the other unit classes of the relevant fund, with the unit classes and sub-funds within our fundranges and also with comparable unit classes and sub-funds in the rest of the market.

Broadly speaking, assessment of value requires consideration of a combination of factors, including the returnachieved, the price paid, the risk taken and the quality and range of services provided by the asset manager.This also needs to be considered in the context of the investment objectives and policy for the fund, the targetinvestor and the recommended holding period.

In considering cost, regard needs to be had to the total cost of investing, including any adviser charges,platform charges, adviser fees and the on-going annual management charge. Regard also needs to be had tothe degree of active management; as an investor, you would not be receiving value, if you were being chargedfees for active portfolio management, where in fact, the fund’s composition of performance is staying very closeto a benchmark. These factors also need to be considered in the context of the size of the portfolio and theability of larger funds to benefits from economies of scale. As regards performance, it is important thatperformance is considered over an appropriate timescale given the fund’s objectives, and should be measurednet of fees.

Based on our assessment of the value of each unit class, PUTM are comfortable that the fund meets therequired Assessment of Value criteria. No immediate action is required, however options to further improvevalue for investors are being considered. We will take appropriate action where required.

Further details on our Assessment of Value methodology can be found at the following link:https://www.phoenixunittrust.co.uk/report-and-accounts.aspx

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.

Depending on the fund, the value of your investment may change with currency movements.

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Investment AdviserIgnis Investment Services Limited1 George StreetEdinburgh, EH2 2LLRegistered in Scotland – No.SC101825Authorised and regulated by the Financial Conduct Authority.

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

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

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

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