Phoenix unit trust managers manager’s interim rePort/media/Files/P/Phoenix-UTM/documents/...Phoenix unit trust managers manager’s interim rePort For the half year: 1 september

Phoenix unit trust managers

manager’s interim rePortFor the half year: 1 september 2016 to 28 February 2017

Putm Bothwell Credit FinanCials sterling hedged Fund

Contents

investment review 2-3

Portfolio of investments 4-9

top ten purchases and sales 10

statistical information 11-13

statements of total return & change in unitholders’ funds 14

Balance sheet 15

distribution table 16

Corporate information 17-18

1

2

Dear Investor

welcome to the Putm Bothwell Credit Financials sterlinghedged Fund interim report for the six months to28 February 2017.

Performance Review

over the review period, the Putm Bothwell CreditFinancials sterling hedged Fund returned -0.2%.(source: hsBC, gross of amC, gBP, based on themovement in the Cancellation Price for six months to28/02/17). this was compared to a return of -0.1% byits benchmark index. (source: datastream, iBoxx £Corporate Financials, all maturities, total return for sixmonths to 28/02/17).

in the table below you can see how the Fund performedagainst its benchmark index.

investment review

source: Fund performance is hsBC, gross of amC, based upon the movement in the Cancellation Price to 28 Februaryfor each year. Benchmark index performance is datastream, iBoxx £ Corporate Financials, all maturities, total return to20 February 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 Bothwell Credit Financials SterlingHedged Fund 13.5 -2.1 10.9 6.4 16.9

Benchmark Index 13.5 -2.3 11.1 6.0 16.7

Feb 16-17 Feb 15-16 Feb 14-15 Feb 13-14 Feb 12-13% growth % growth % growth % growth % growth

3

Portfolio and Market Review

we were positioned defensively in the run up to the uselection and italian referendum. we had a bias to beslightly long duration at the start of the period which waschanged to slightly short in november post the uselection result. Financial spreads were slightly weaker atan index level for the first two months of the period andthen rallied strongly in december as investors shruggedoff concerns around the italian referendum result andpotential european Central Bank Qe tapering. overweightexposure to hsBC subordinated bonds and off-benchmark exposure to seB and uBs additional tier oneus-dollar bonds were positive. the underweight tostandard Charted tier two bonds was a negative. ouroverweight exposure to short-dated callable bank andinsurer bonds was negative in november. this sectorweakened as investor confidence was impacted as aresult of the surprise decision by standard Chartered notto call a us-dollar tier one bond. although this bond wasnot held in the Fund there was impact on performancedue to widening spreads in the market for callable bonds.we remained confident that the issuers of the Fund’scallable bonds will call on the call date, and these bondsbegan to retrace some of the spread widening duringdecember.

later in the period, the rally in credit spreads continuedwith financial spreads outperforming non-financialspreads. we invested in new issues in senior holdingcompany bonds from Barclays and senior operatingcompany debt from westPac. we also invested in newissues of lloyds of london and Close Brothers tier 2bonds, we subsequently sold these after strongperformance.

Cashflows into the Fund were invested into existingholdings and we increased exposure to the senior holdingcompany sector by increasing exposure to Credit suisse,Barclays and santander uK. we also participated in anattractively priced three year senior bank deal fromdeutsche Bank.

Market Outlook and Fund Strategy

we still exercise some caution around our exposure toFrench and italian names ahead of the upcomingelections in europe, with the Fund having limitedexposure to French banks and no italian exposure. thesmall amount of widening seen in French banks was notviewed as sufficient compensation to add risk in that areaeven though a le Pen victory is viewed as unlikely in theFrench election. any widening ahead of the election mayprovide a better opportunity to add risk.

investment review

4

Portfolio of investments

Investments held at 28 February 2017 market Percentage of value total net assets holding investment £000 %

United Kingdom (31/08/16 – 91.02%) 90.79 Government Bonds (31/08/16 – 3.91%) 2.64 £5,000,083 uK treasury 3.25% 22/01/2044 6,550 0.75 £3,764,244 uK treasury 4% 22/01/2060 6,542 0.75 £7,000,000 uK treasury 4.25% 07/03/2036 9,931 1.14

Corporate Bonds (31/08/16 – 87.11%) 88.15 £1,675,000 abbey national 4.125% 14/09/2017 1,705 0.20 £2,827,000 aBn-amro Bank 4.875% 16/01/2019 3,050 0.35 £2,517,000 aegon 6.625% 16/12/2039 3,811 0.44 £1,119,000 aig sunamerica 6.375% 05/10/2020 1,322 0.15 £7,800,000 american international group 5% 26/04/2023 9,049 1.04 £1,310,000 asiF iii (Jersey) 5% 18/12/2018 1,407 0.16 £2,193,000 aviva 5.125% Vrn 04/06/2050 2,267 0.26 £9,541,000 aviva 5.9021% Vrn Perpetual 10,135 1.16 £6,140,000 aviva 6.125% Vrn Perpetual 6,586 0.75£11,620,000 aviva 6.125% 14/11/2036 13,120 1.50 £3,980,000 aviva 6.625% Vrn 03/06/2041 4,511 0.52 £7,227,000 axa 5.625% Vrn 16/01/2054 7,580 0.87 £9,499,000 axa Vrn Perpetual 9,867 1.13£12,081,000 Bank of america 5.5% 04/12/2019 13,519 1.55 £1,850,000 Bank of america 6.125% 15/09/2021 2,218 0.25 £8,300,000 Bank of america 7% 31/07/2028 11,763 1.35 £4,400,000 Bank of america 7.75% 30/04/2018 4,749 0.54 £2,806,000 Bank of scotland 7.754% Vrn Perpetual 3,212 0.37 £1,930,000 Bank of scotland 9.375% 15/05/2021 2,506 0.29 £1,740,000 Bank of scotland 10.5% 16/02/2018 1,890 0.22 £7,474,000 Barclays Bank 5.75% 14/09/2026 9,011 1.03 £6,414,000 Barclays Bank 6.375% Vrn Perpetual 6,453 0.74 £991,000 Barclays Bank 6.75% Vrn 16/01/2023 1,028 0.12 £487,000 Barclays Bank 9.25% Vrn Perpetual 569 0.07£13,634,000 Barclays Bank 10% 21/05/2021 17,668 2.02 £3,600,000 Barclays 3.125% 17/01/2024 3,707 0.42 £9,520,000 Barclays 3.25% 12/02/2027 9,619 1.10 £6,000,000 BPCe 5.25% 16/04/2029 6,639 0.76 £5,129,000 Citigroup 4.5% 03/03/2031 5,836 0.67 £5,114,000 Citigroup 5.125% 12/12/2018 5,474 0.63 £5,804,000 Citigroup 5.15% 21/05/2026 7,132 0.82 £3,994,000 Citigroup 5.875% 01/07/2024 4,855 0.56 £5,756,000 Citigroup 6.5% 16/08/2030 8,218 0.94 £7,449,000 Citigroup 6.8% 25/06/2038 11,825 1.35 £1,596,000 Citigroup 7.625% 03/04/2018 1,714 0.20 £860,000 Commonwealth Bank australia 4.875% 19/12/2023 910 0.10

5



Government Bonds (continued) £8,000,000 Credit suisse 2.75% 08/08/2025 7,968 0.91 £2,985,000 Credit suisse 3% 27/05/2022 3,113 0.36 £2,277,000 Credit suisse 7% 05/10/2020 2,648 0.30 £3,680,000 Close Brothers 2.75% 19/10/2026 3,785 0.43 £3,000,000 Coventry Building society 5.875% 28/09/2022 3,674 0.42 £4,818,000 digital stout holdings 4.25% 17/01/2025 5,296 0.61 £7,610,000 direct line 9.25% Vrn 27/04/2042 9,491 1.09 £2,654,000 dnB Bank 4.25% 27/01/2020 2,916 0.33 £1,960,000 dnB Bank 6.0116% Vrn Perpetual 1,966 0.23 £7,644,000 ge Capital uK Funding 4.125% 28/09/2017 7,796 0.89 £5,098,000 ge Capital uK Funding 4.125% 13/09/2023 5,972 0.68 £3,368,000 ge Capital uK Funding 4.375% 31/07/2019 3,657 0.42 £1,528,000 ge Capital uK Funding 5.125% 24/05/2023 1,867 0.21 £4,536,000 ge Capital uK Funding 5.875% 04/11/2020 5,357 0.61 £2,459,000 ge Capital uK Funding 5.875% 18/01/2033 3,633 0.42 £928,000 ge Capital uK Funding 6.25% 05/05/2038 1,496 0.17 £276,000 ge Capital uK Funding 8% 14/01/2039 526 0.06 £6,772,000 general electric Capital 4.875% 18/09/2037 9,064 1.04 £8,071,000 general electric Capital 5.25% 07/12/2028 10,852 1.24 £3,286,000 general electric Capital 5.5% 07/06/2021 3,902 0.45 £1,255,000 general electric Capital 5.625% 16/09/2031 1,797 0.21 £1,694,000 general electric Capital 6.25% 15/12/2017 1,768 0.20 £521,000 general electric Capital 6.25% 29/09/2020 619 0.07 £6,503,000 global switch holdings 4.375% 13/12/2022 7,255 0.83 £6,914,000 goldman sachs 4.25% 29/01/2026 7,814 0.90 £641,000 goldman sachs 5.5% 12/10/2021 743 0.09 £454,000 goldman sachs 7.25% 10/04/2028 648 0.07 £7,888,000 hammerson 3.5% 27/10/2025 8,522 0.98 £375,000 hammerson 7.25% 21/04/2028 538 0.06 £4,209,000 hBos Capital Funding 6.461% Vrn Perpetual 4,454 0.51 £1,749,000 hsBC Bank 4.75% 24/03/2046 2,182 0.25 £1,263,000 hsBC Bank 5% 20/03/2023 1,308 0.15 £7,625,000 hsBC Bank 5.375% 04/11/2030 8,877 1.02 £3,723,000 hsBC Bank 5.375% 22/08/2033 4,749 0.54£10,834,000 hsBC Bank 5.75% 20/12/2027 13,120 1.50 £8,366,000 hsBC Bank 5.844% Vrn Perpetual 9,747 1.12 £3,223,000 hsBC Bank 5.862% Vrn Perpetual 3,471 0.40 £2,889,000 hsBC Bank 6.25% 30/01/2041 4,219 0.48 £4,466,000 hsBC holdings 6% 29/03/2040 5,714 0.65 £3,400,000 hsBC holdings 6.375% Vrn 18/10/2022 3,489 0.40 £403,000 hsBC holdings 6.5% 20/05/2024 522 0.06 £4,400,000 hsBC holdings 6.75% 11/09/2028 5,667 0.65 £3,650,000 hsBC holdings 7% 07/04/2038 5,152 0.59

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Government Bonds (continued) £880,000 ing Bank 5.375% 15/04/2021 1,035 0.12 £3,888,000 ing Bank Vrn 29/05/2023 4,134 0.47 £2,723,000 JPmorgan Chase & Co 1.875% 10/02/2020 2,802 0.32 £3,631,000 JPmorgan Chase & Co 3.5% 18/12/2026 4,095 0.47 £2,865,000 legal & general Finance 5.375% Vrn 27/10/2045 3,080 0.35 £4,818,000 legal & general Finance 5.5% Vrn 27/06/2064 4,919 0.56£11,585,000 legal & general Finance 5.875% Vrn Perpetual 12,260 1.40 £1,013,000 legal & general Finance 5.875% 11/12/2031 1,432 0.16 £937,000 legal & general Finance 5.875% 05/04/2033 1,329 0.15 £8,600,000 legal & general Finance 6.385% Vrn Perpetual 8,617 0.99 £1,576,000 lloyds tsB Bank 5.75% 09/07/2025 1,741 0.20 £8,816,000 lloyds tsB Bank 6.5% 17/09/2040 14,248 1.63 £3,652,000 lloyds tsB Bank 7.5% 15/04/2024 5,040 0.58 £6,786,000 lloyds tsB Bank 7.625% 22/04/2025 9,027 1.03 £4,197,000 lloyds tsB Bank 9.625% 06/04/2023 5,765 0.66 £3,500,000 london stock exchange 9.125% 18/10/2019 4,225 0.48 £5,425,000 metropolitan life global Funding 2.625% 05/12/2022 5,848 0.67 £5,584,000 metropolitan life global Funding 3.5% 30/09/2026 6,380 0.73 £1,850,000 motability operations group 3.625% 10/03/2036 2,149 0.25 £4,556,000 munich re Finance 7.625% Vrn 21/06/2028 4,913 0.56 £5,000,000 munich re group 6.625% Vrn 26/05/2042 5,925 0.68 £1,151,000 national australia Bank 5.125% 09/12/2021 1,363 0.16 £1,195,000 national australia Bank 7.125% Vrn 12/06/2023 1,279 0.15 £5,541,000 national Capital trust 5.62% Vrn Perpetual 5,798 0.66 £2,170,000 national westminster Bank 6.5% 07/09/2021 2,508 0.29 £3,014,000 nationwide Building society 2.25% 29/04/2022 3,152 0.36 £3,590,000 nationwide Building society 3.25% 20/01/2028 3,888 0.45 £733,000 nationwide Building society 5.625% 09/09/2019 820 0.09 £3,270,000 nationwide Building society 5.769% Perpetual 3,277 0.38 £344,000 nationwide Building society 8.625% 29/03/2018 371 0.04 £3,177,000 nordea Bank 2.125% 13/11/2019 3,295 0.38 £2,360,000 northern Powergrid Fund 7.25% 15/12/2020 3,068 0.35 £2,084,000 northern Powergrid Yorkshire 5.125% 04/05/2035 2,844 0.33 £2,385,000 northern rock asset management 6.375% 02/12/2019 2,707 0.31 £3,633,000 Pohjola Bank 2.5% 20/05/2022 3,834 0.44 £3,580,000 Provident Financial 8% 23/10/2019 4,127 0.47

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Government Bonds (continued) £4,313,000 Prudential 5% Vrn 20/07/2055 4,314 0.49 £8,100,000 Prudential 5.7% Vrn 19/12/2063 8,479 0.97 £5,547,000 Prudential 5.875% 11/05/2029 7,553 0.87 £2,331,000 Prudential 6.125% 19/12/2031 2,953 0.34 £613,000 Prudential 6.875% 20/01/2023 797 0.09 £577,000 rabobank Capital Funding trust 5.556% Vrn Perpetual 608 0.07 £3,367,000 rabobank nederland 3.25% 01/11/2017 3,426 0.39 £3,789,000 rabobank nederland 4% 19/09/2022 4,302 0.49 £5,691,000 rabobank nederland 4.625% 23/05/2029 6,305 0.72 £8,449,000 rabobank nederland 4.875% 10/01/2023 10,002 1.15 £4,330,000 rabobank nederland 5.25% 14/09/2027 5,029 0.58 €3,666,000 rabobank nederland 5.5% Vrn Perpetual 3,210 0.37 £1,720,000 rl Finance Bonds 6.125% 13/11/2028 1,876 0.22 £2,923,000 rmPa services 5.337% 30/09/2038 2,948 0.34 £5,309,000 royal Bank of scotland 6.625% 17/09/2018 5,763 0.66 £3,000,000 rsa insurance 5.125% Vrn 10/10/2045 3,214 0.37 £9,626,000 rsa insurance 6.701% Vrn Perpetual 9,735 1.12 £2,969,000 santander uK 1.875% 17/02/2020 3,032 0.35£13,440,000 santander uK 3.625% 14/01/2026 14,072 1.61 £3,596,000 santander uK 3.875% 15/10/2029 4,115 0.47 £2,007,000 scentre management 2.375% 08/04/2022 2,100 0.24 £869,000 scotland gas 4.875% 21/12/2034 1,148 0.13 £1,403,000 scottish amicable Finance 8.5% Perpetual 1,479 0.17 £3,649,000 scottish widows 7% 16/06/2043 4,287 0.49 £3,640,000 segro 5.5% 20/06/2018 3,854 0.44 £986,000 segro 5.625% 07/12/2020 1,148 0.13 £421,000 segro 6.75% 23/11/2021 526 0.06 £2,045,000 segro 6.75% 23/02/2024 2,700 0.31 £1,363,000 societe generale 5.4% 30/01/2018 1,416 0.16 £5,459,000 society of lloyds 7.421% Vrn Perpetual 5,549 0.64 £4,397,000 southern gas network 4.875% 21/12/2020 5,025 0.58 £1,279,000 southern gas network 4.875% 21/03/2029 1,646 0.19 £4,992,000 standard Chartered 4.375% 18/01/2038 5,578 0.64 £1,906,000 standard Chartered 5.375% Vrn Perpetual 1,914 0.22 £1,750,000 standard Chartered 7.75% 03/04/2018 1,875 0.21 £3,631,000 svenska handelsbanken 4% 18/01/2019 3,854 0.44 £4,663,000 swedbank 1.625% 15/04/2019 4,753 0.54 £1,411,000 uBs 6.625% 11/04/2018 1,503 0.17£13,160,000 wells Fargo & Co 2% 28/07/2025 13,016 1.49 £4,573,000 wells Fargo & Co 2.125% 22/04/2022 4,702 0.54 £3,316,000 wells Fargo & Co 3.5% 12/09/2029 3,682 0.42 £1,841,000 wells Fargo & Co 4.625% 02/11/2035 2,297 0.26

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Government Bonds (continued) £2,750,000 wells Fargo & Co 4.875% 29/11/2035 3,372 0.39 £3,561,000 welltower 4.5% 01/12/2034 4,106 0.47 £3,000,000 welltower 4.8% 20/11/2028 3,557 0.41 £5,800,000 westpac Banking 2.125% 02/05/2025 5,912 0.68 £6,420,000 westpac Banking 2.625% 14/12/2022 6,876 0.79 £1,540,000 Yorkshire Building society 4.125% Vrn 20/11/2024 1,583 0.18 £4,097,000 Zurich Finance 6.625% Vrn Perpetual 4,706 0.54

Australia (31/08/16 – 0.99%) 0.98 Corporate Bonds (31/08/16 – 0.99%) 0.98 £5,108,000 QBe insurance 6.115% Vrn 24/05/2042 5,604 0.64 £2,700,000 Vicinity Centres 3.375% 07/04/2026 2,958 0.34

Channel Islands (31/08/16 – 0.57%) Corporate Bonds (31/08/16 – 0.57%) 0.57 $6,110,000 uBs group Funding 4.125% 15/04/2026 5,010 0.57

France (31/08/16 – 0.13%) 0.00 Corporate Bonds (31/08/16 – 0.13%) 0.00

Germany (31/08/16 – 0.59%) 0.62 Corporate Bonds (31/08/16 – 0.59%) 0.62 £5,400,000 deutsche Bank 1.875% 28/02/2020 5,392 0.62

Ireland (31/08/16 – 0.59%) 0.00 Corporate Bonds (31/08/16 – 0.59%) 0.00

Netherlands (31/08/16 – 2.00%) 1.59 Corporate Bonds (31/08/16 – 2.00%) 1.59 £4,000,000 allianz Finance ii 4.5% 13/03/2043 5,375 0.61 €1,800,000 Cooperatieve rabobank 6.625% Vrn Perpetual 1,658 0.19 €2,895,000 swiss reinsurance 2.6% Vrn Perpetual 2,414 0.28 £4,100,000 swiss reinsurance 6.3024% Vrn Perpetual 4,428 0.51

Sweden (31/08/16 – 0.66%) 0.69 Corporate Bonds (31/08/16 – 0.66%) 0.69 $3,520,000 skandinaviska enskilda 5.75% Vrn Perpetual 2,877 0.33 $3,800,000 swedbank 5.5% Vrn Perpetual 3,114 0.36

United States (31/08/16 – 1.28%) 1.55 Corporate Bonds (31/08/16 – 1.07%) 1.32£10,830,000 Bank of america 2.3% 25/07/2025 10,875 1.24 £600,000 wachovia Bank 5.25% 01/05/2023 715 0.08

Corporate Fixed Interest (31/08/16 – 0.21%) 0.23 $2,438,000 hsBC holdings 6.375% Vrn Perpetual 1,987 0.23

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Money Market (31/08/16 – 0.15%) 0.06 538,771 standard life investments sterling liquidity Fund Class ‘0’ gBP~ 539 0.06

Forward Foreign Exchange Contracts (31/08/16 – 0.01%) (0.01)gBP 13,012,073 gBP Forward Currency Contract 17/03/2017 13,012 1.49(usd 16,273,503) usd Forward Currency Contract 17/03/2017 (13,071) (1.50)gBP 7,207,716 gBP Forward Currency Contract 17/03/2017 7,208 0.83(eur 8,458,122) eur Forward Currency Contract 17/03/2017 (7,225) (0.83)

Portfolio of investments^ 845,364 96.84 Net other assets 27,558 3.16

Net assets 872,922 100.00

all investments with the exception of the Forward Foreign exchange Contractsare listed on recognised stock exchanges and are “approved securities” withinthe meaning of the FCa rules unless otherwise stated.

the counterparties for the Forward Foreign exchange contracts are Citibankglobal markets and royal bank of Canada.

^ includes investment liabilities.

~siCaVs (open ended investment schemes registered outside the uK). Credit Ratings £000 % investment grade 801,572 94.87 non-investment grade 23,421 2.77 unrated 19,908 2.36

Total investment in bonds 844,901 100.00

10

Total purchases 167,546 Total sales 144,643

top ten purchases and salesFor the half year ended 28 February 2017

Purchases Cost £000standard life investments sterlingliquidity Fund Class ‘0’ gBP 93,376wells Fargo & Co 2% 28/07/2025 9,808Credit suisse 2.75% 08/08/2025 7,937santander uK 3.625% 14/01/2026 6,224westpac Banking 2.125% 02/05/2025 5,787deutsche Bank 1.875% 28/02/2020 5,385Bank of america 2.3% 25/07/2025 4,830Coventry Building society 5.875%28/09/2022 3,670Close Brothers 2.75% 19/10/2026 3,664Barclays 3.125% 17/01/2024 3,584

Sales Proceeds £000standard life investments sterlingliquidity Fund Class ‘0’ gBP 94,128ge Capital uK Funding 5.5%Vrn 15/09/2066 8,377uK treasury 3.25% 22/01/2044 6,966allianz 5.625% Vrn 17/10/2042 5,094aBn-amro 7.125% 06/07/2022 4,133ing Bank 3.875% 23/12/2016 3,953lloyds tsB Bank 10.75% 16/12/2021 3,729Close Brothers 4.25% 24/01/2027 3,495BuPa Finance 5% 25/04/2023 3,202aquarius & investments Zurich 4.25%Vrn 02/10/2043 2,724

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statistical information

Comparative tables Class ‘B’ Accumulation 28/02/17 31/08/16 31/08/15 31/08/14 pence pence pence penceChange in net assets per unitopening net asset value per unit 173.94 153.40 147.86 133.87

return before operating charges* (0.20) 20.59 5.56 14.01operating charges (0.03) (0.05) (0.02) (0.02)

return after operating charges* (0.23) 20.54 5.54 13.99

distributions on accumulation units (3.78) (7.43) (7.48) (7.34)retained distributions on accumulation units 3.78 7.43 7.48 7.34

Closing net asset value per unit 173.71 173.94 153.40 147.86

*after direct transaction costs of 0.00 0.00 0.00 0.00

Performancereturn after charges (0.13%) 13.39% 3.75% 10.45%

Other informationClosing net asset value (£000) 872,922 859,202 992,285 2,469,442Closing number of units 502,505,112 493,977,010 646,867,623 1,670,075,394operating charges 0.03% 0.03% 0.01% 0.01%direct transaction costs 0.00% 0.00% 0.00% 0.00%

Priceshighest unit price (pence) 175.28 176.25 159.62 148.91lowest unit price (pence) 165.40 151.77 146.13 133.26

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Investment objective

the Fund aims to maximise total returns by investing predominantly in corporatebonds issued by companies from the financial sector.

Investment policy

in order to meet the investment objective, the Fund will invest predominantly ininvestment grade fixed and floating rate corporate bonds, denominated in sterling andother currencies, issued by companies from the financial sector. the Fund has theability to invest up to 10% of its assets in bonds which have not been rated by aratings agency issued by way of private placements. it may also invest up to 20% insovereign and sovereign guaranteed bonds.

the Fund is not constrained by any index weightings but invests from a broad range ofinterest bearing bonds selected from issues denominated in currencies of g7 countries.

non-sterling exposure will be predominantly hedged back to sterling while non-sterlinginterest rate risk will also typically be hedged. the Fund may also invest in othertransferable securities, units in collective investment schemes and may hold up to20% of its assets in money market instruments, deposits, cash and near cash. theFund may, at the manager’s discretion, hold in excess of 20% of its assets in moneymarket instruments, deposits, cash or near cash on a temporary basis in exceptionalmarket circumstances, if deemed to be in the best interests of the unitholders.

the Fund may also invest in derivatives and forward transactions only for the purposeof efficient portfolio management, including the use of hedging techniques.

Revenue distribution and pricing

units of the Fund are available as Class ‘B’ accumulation units (where revenue isreinvested to enhance the unit price). there will be two potential distributions in eachaccounting year: an interim distribution as at the last day of February and a finaldistribution as at 31 august. at each distribution the net revenue after deduction ofexpenses, arising in the preceding six months from the investments of the Fund isapportioned amongst the unitholders. unitholders receive a tax voucher giving details ofthe distribution and the manager’s report no later than two months after these dates.


13

fi


Risk and reward profile

the 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 4 because funds of this type have experienced average rises andfalls in value in the past. the above figure applies to the following unit class:• Class ‘B’ 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 into accountthe following risks of investing in this Fund:

• Bonds are affected by changes in interest rates, inflation and any decline increditworthiness of the bond issuer.

• Bonds that produce a higher level of income usually also carry greater risk as suchbond issuers may have difficulty in paying their debts.

• although the investment manager will use currency trades to reduce exchange raterisk on investments not priced in sterling, this may not completely eliminate theFund’s exchange rate risk.

• the Fund may use derivatives to reduce risk or cost or to generate additional capitalor income at low risk, or to meet it's 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.

Directors’ statement

this report has been prepared in accordance with the requirements of the Collectiveinvestment schemes sourcebook as issued and amended by the Financial Conductauthority.

28 april 2017 Craig Baker, directorshamira mohammed, director

14

interim financial statements (unaudited)For the half year ended 28 February 2017

Statement of total return 28/02/17 29/02/16 £000 £000 £000 £000

income

net capital losses (19,738) (21,816) revenue 18,254 20,664

expenses (128) (112)

interest payable and similar charges – (1)

net revenue before taxation 18,126 20,551

taxation – –

net revenue after taxation 18,126 20,551

total deficit before distributions (1,612) (1,265)

distributions (18,148) (20,573)

Change in unitholders’ funds from investmentactivities (19,760) (21,838)

Statement of change in unitholders’ funds

28/02/17 29/02/16* £000 £000 £000 £000

opening net assets 859,202 992,285

amounts receivable on issue of units 87,311 11,816amounts payable on in-specie transfer** – (156,638)amounts payable on cancellation of units (72,818) (50,183)

14,493 (195,005)

Change in unitholders’ funds from investment activities (19,760) (21,838)

retained distributions on accumulation units 18,987 19,535

Closing net assets 872,922 794,977

*Please note that the comparative figures are for the comparative interim period. the brought forward netassets for the current period do not, therefore, equal the carried forward figures in the comparative.**represents the value of units cancelled by in-specie transfer of assets during the period.

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Balance sheet 28/02/17 31/08/16 £000 £000 £000 £000

Assets:Fixed assets:investments 845,440 841,911

Current assets:debtors 39,763 17,465Cash and bank balances 29 50

total current assets 39,792 17,515

total assets 885,232 859,426

Liabilities: investment liabilities (76) (2)

Creditors: Bank overdrafts (6) –other creditors (12,228) (222)

total creditors (12,234) (222)

total liabilities (12,310) (224)

net assets 872,922 859,202

unitholders’ funds 872,922 859,202

interim financial statements (unaudited)as at 28 February 2017

Notes to the interim financial statements

Accounting policiesthe interim financial statements have been prepared under the historical cost basis, asmodified by the valuation of investments and in compliance with Frs102 and inaccordance with the statement of recommended Practice (2014 sorP) for financialstatements of authorised Funds issued by the investment association in may 2014.unless otherwise stated all accounting policies applied are consistent with those of theannual report for the year ended 31 august 2016 and are described in those financialstatements.

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Interest distributions

Interim distribution in pence per unitgroup 1: units purchased prior to 1 september 2016group 2: units purchased 1 september 2016 to 28 February 2017 2017 2016 pence pence per unit per unit gross payable paid income equalisation 30 apr 30 apr

Class ‘B’ Accumulation

group 1 3.7785 — 3.7785 3.7566group 2 0.9306 2.8479 3.7785 3.7566

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 tableFor the half year ended 28 February 2017

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Corporate information

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

Phoenix unit trust mangers limted is part of the Phoenix group.

ignis investment services limited is part of the standard life investments group (standard life investments(holdings) limited) and its subsidiaries. unit prices appear daily on our website www.phoenixunittrust.co.uk

dealing: 0370 707 0073 administration: 0330 1233 703

Remuneration

the manager has adopted a remuneration policy, up-to-date details of which can be found onwww.phoenixunittrust.co.uk. these details describe how remuneration and benefits are calculated and identify thecommittee which oversees and controls the policy. a paper copy of these details can be requested free of chargefrom the manager. Following the implementation of uCits V in the uK on 18 march 2016, all authorised uCitsmanagers are required to comply with the uCits V remuneration Code from the start of their next accounting year.under the uCits V directive, the manager is required to disclose information relating to the remuneration paid toits staff for the financial year, split into fixed and variable remuneration. the manager’s Financial Year end is31 december, it is therefore anticipated that the manager's remuneration Policy and associated financialdisclosures will be made within the annual reports starting from 31 december 2017, following its first fullperformance period. Prior to this date, and in line with the FCa’s guidance on the uCits V remunerationdisclosures, the manager would be part way through its first performance period and the information availablewould not be relevant or provide a proper basis for comparison.

Risk

the price of units and the income 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.

18

Corporate information

ManagerPhoenix unit trust managers limited (Putm)1 wythall green way, wythall, Birmingham, B47 6wgtel: 0330 1233 703registered in england – no.03588031authorised and regulated by the Financial Conductauthority

DirectorsAndrew Moss Putm director, Chief executive

Phoenix life;Shamira Mohammed Putm director, Finance director

Phoenix life;Craig Baker Putm director, head of investment

management Phoenix life;Mike Urmston non executive director of Putm

Registrar and correspondence addressPhoenix unit trust managers limitedPo Box 12997ChelmsfordCm99 2enauthorised and regulated by the Financial Conductauthority

Investment Adviserignis investment services limited1 george streetedinburgh, eh2 2llregistered in scotland – no.sC101825authorised and regulated by the FinancialConduct authority

Trustee Citibank europe plcregistered office:Citigroup Centre,Canada square,Canary wharf, london e14 5lBauthorised by the Prudential regulation authority andregulated by the Financial Conduct authority and thePrudential regulation authority

Independent Auditor to the Fundernst & Young llPten george streetedinburgh eh2 2dZ

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.

19

notes

20

notes

B183.03.17

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 0330 1233 703.

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: 0330 1233 703Correspondence address: PO Box 12997 Chelmsford CM99 2ENVisit: phoenixunittrust.co.uk

Documents

Phoenix unit trust managers manager’s interim rePort/media/Files/P/Phoenix-UTM/documents/...Phoenix unit trust managers manager’s interim rePort For the half year: 1 september