Annual report ChariTrak Common Investment Fund

For the year ended 5 April 2019 Contents General Information

Manager, Registrar and Alternative Investment Fund Manager General Information 2 BlackRock Fund Managers Limited About the Fund 3 12 Throgmorton Avenue, EC2N 2DL

Trustee 3 Member of The Investment Association and authorised and regulated by the Financial Conduct Authority (“FCA”) pursuant to the requirements of The Alternative Investment Fund Managers Regulations 2013. Corporate Governance 3

Common Investment Fund 4 Directors of the Manager G D Bamping* C L Carter (resigned 17 May 2019) M B Cook (appointed 2 May 2018) Charity Trustees’ Investment Responsibilities 4 W I Cullen*­ R A Damm (resigned 31 December 2018) R A R Hayes A M Lawrence Fund Manager 4 L E Watkins (appointed 16 May 2018, resigned 1 March 2019) M T Zemek*

Significant Events 4 * Non-executive Director.

Investment Objective & Policy 5 Trustee* & Custodian The Bank of New York Mellon (International) Limited Performance Table 6 One Canada Square, London E14 5AL Investment Report 7 Authorised by the Prudential Regulation Authority and regulated by the FCA and the Prudential Performance Record 8 Regulation Authority. Distribution Tables 10 * On 18 June 2018 the Trustee changed from BNY Mellon Trust & Depositary (UK) Limited to The Bank of New York Mellon (International) Limited. Report on Remuneration 11 Investment Manager Portfolio Statement 17 BlackRock Advisors (UK) Limited 12 Throgmorton Avenue, London EC2N 2DL Statement of Total Return 34

Statement of Change in Net Assets Attributable to Unitholders 34 Authorised and regulated by the FCA.

Balance Sheet 35 Auditor Ernst & Young LLP Notes to Financial Statements 36 25 Churchill Place, Canary Wharf, London E14 5EY Statement of Manager’s and Trustee’s Responsibilities 52

Report of the Trustee 53

Independent Auditor’s Report 54

BlackRock’s proxy voting agent is ISS (Institutional Shareholder Services).

This Report relates to the packaged products of and is issued by: BlackRock Fund Managers Limited 12 Throgmorton Avenue, London EC2N 2DL Telephone: 020 7743 3000 Charities helpline: 0800 44 55 22 blackrock.co.uk

For your protection, telephone calls are usually recorded.

1 ChariTrak Common Investment Fund ChariTrak Common Investment Fund 2 About the Fund Common Investment Fund

ChariTrak Common Investment Fund (the “Fund”) is established by The Charity Commission for England The Fund is a Common Investment Fund established and registered with the Commission. Pursuant to the and Wales (the “Commission”) under section 24 of The Charities Act 1993. The Charities Act 1993 was Charities Act 2011 and the Fund’s governing document, the Scheme, charities established in England and superseded by The Charities Act 2011 on 14 March 2012. Wales, and charities established in Scotland and Northern Ireland pursuant to the Charities Act 2006 (as amended from time to time) may invest in the Fund. Subject to any restrictions in the terms of the Scheme, or The Fund was established on 11 August 1999 and its registered charity number is 1077125. The Fund is that may apply to an eligible charity, the trustees of any charity, large or small, may contribute the whole or any administered for the benefit of unitholders under a scheme order of the Commission dated 22 June 2000 (the part of their investment property to it at any time. The Fund should not be regarded as a short–term investment. “Scheme”), as subsequently varied or amended.

The Alternative Investment Fund Managers Regulations 2013 Charity Trustees’ Investment Responsibilities BlackRock Fund Managers Limited (the “Manager”) is authorised to manage and market the Fund, which is an alternative investment fund, in accordance with the “AIFMD”. The Commission requires trustees of charities to invest their assets only in investments authorised under the In this document, (other than in the section entitled ‘Report on Remuneration’), the term “AIFMD” means, governing document of their charity or the Trustee Act 2000 if applicable. Trustees are required to invest collectively, Directive 2011/61/EU, as supplemented by Commission Delegated Regulation (EU) No. 231/2013, prudently in order to achieve both income and/or capital growth. Furthermore, trustees are required to seek and as transposed by UK SI 2013/1773 and any other applicable national implementing measures in the regular professional advice regarding their investments. United Kingdom including, without limitation, the rules contained in the FCA handbook of rules and guidance, each as may be amended or updated from time to time. Fund Manager

Trustee As at 5 April 2019, the Fund Manager of the Fund is Kieran Doyle.

The Trustee of the Fund is The Bank of New York Mellon (International) Limited (the “Trustee”) and is a subsidiary of The Bank of New York Mellon Corporation. It is responsible for certain aspects of the management and Significant Events administration of the Fund and its property (as further detailed in the Scheme) except to the extent that such responsibilities are those of the Manager. Changes in the Directors of the Manager The Trustee acts as the depositary of the Fund and, in doing so, shall comply with the terms of the Scheme M B Cook was appointed as a Director effective 2 May 2018. L E Watkins was appointed as a Director and the provisions of the AIFMD. effective 16 May 2018, and resigned as a Director effective 1 March 2019. R A Damm resigned as a Director effective 31 December 2018. C L Carter resigned as a Director effective 17 May 2019.

Corporate Governance Changes to the Trustee On 18 June 2018 the Trustee changed from BNY Mellon Trust & Depositary (UK) Limited to The Bank of New York Mellon (International) Limited. The Manager is responsible for the management and administration of the Fund (as further detailed in the Scheme Particulars) except to the extent that such responsibilities are those of the Trustee. The Manager has delegated certain functions with respect to the portfolio management of the assets of the Fund, the performance of certain risk management functions, and the distribution of units to BlackRock Advisors (UK) Limited (the “Investment Manager”).

The Manager and Investment Manager meet quarterly to review the performance of the Fund and to discuss the investment policy and objectives. The Trustee attends these meetings at least annually and submits reports on a quarterly basis. Any matters for decision which are outside the powers delegated to the Manager are discussed by the Manager and the Trustee.

3 ChariTrak Common Investment Fund ChariTrak Common Investment Fund 4 Investment Objective & Policy Performance Table

The investment objective of the Fund is to provide tax-exempt charity investors in England, Wales, Scotland For the year For the three years For the five years and Northern Ireland with returns (income and capital growth) of the UK equity market in line with a fixed to 5.4.2019 to 31.3.2019† to 31.3.2019† benchmark, namely the FTSE All-Share Index (the “Benchmark Index”). TOTAL RETURN The Manager may invest the property of the Fund at its discretion in any kind of investment which it could (with net income reinvested) make if it were absolutely entitled to the property of the Fund. Class A Accumulation Units ChariTrak Common Investment Fund +7.6% +30.8% +33.0% The Fund aims to fully replicate the Benchmark Index, holding stocks in the same proportion as they appear in FTSE All-Share Index* +7.6% +30.7% +33.5% the Benchmark Index. However, the Fund may employ optimisation techniques in order to assist it in tracking its benchmark. All Fund figures quoted are based on bid-to-bid dealing prices (the price at which units are sold) and are calculated net of fees. Performance returns are cumulative. All returns are in Sterling. * Figures from Index Vendor. The Fund follows a risk-sensitive, index equity investment strategy, requiring it to hold a broadly diversified † Three and five year data is only available to 31 March 2019. range of stocks, in order to reduce the risk of poor stock selection. The Fund may also invest in collective investment schemes in accordance with the restrictions set out in the Scheme. All financial investments involve an element of risk. Therefore, the value of your investment and the income from it will vary and the return of your initial investment amount cannot be guaranteed. Changes in exchange The Fund may invest in securities that are, or could be, subject to stabilisation. Stabilisation is the process by rates may cause the value of an investment to fluctuate. Past performance is not a guide to future performance which the price of a security is temporarily supported during an issue to ensure that the introduction of the and should not be the sole factor of consideration when selecting a product. new security to the market occurs in an orderly fashion.

The Fund may invest in securities in which an issue or offer for sale was underwritten, managed or arranged by an associate of the Manager during the preceding twelve months.

The Manager may enter into contracts in respect of FTSE 100 futures in the following circumstances:

• As a way of managing risk in respect of new money entering the Fund before it is invested in the market. • As a way of managing risk in respect of money exiting the Fund via redemptions of units if the Manager decides it is in the interests of the Fund to sell in the market ahead of the settlement date for the redemption. • As a hedge for income monies received by the Fund prior to being distributed to unitholders. • As a way to efficiently manage constituent changes in the Benchmark Index, allowing the Manager some flexibility in the way that such constituent changes are effected. • For efficient portfolio management.

In all of the cases above, the total exposure to FTSE futures will be as nearly as possible equal to the cash amount being hedged so as to ensure that derivative transactions entered into by the Fund are always fully covered.

The Manager may borrow money temporarily for the use of the Fund (including, without limitation, for settlement purposes) on terms that the borrowing is to be repaid out of the property of the Fund, provided that the Manager shall not borrow for the purpose of making investments. Except with the prior approval of the Trustee, any borrowing shall not exceed 10% of the value of the property of the Fund on any business day.

The property of the Fund may include cash or near cash where this may reasonably be regarded as necessary in order to facilitate the cancellation of units, or to further the efficient management of the Fund, or otherwise to enable the Manager to discharge its functions under the Scheme.

5 ChariTrak Common Investment Fund ChariTrak Common Investment Fund 6 Investment Report Performance Record

Summary of Performance over the Year Comparative Table The Fund returned 7.6%* over the year to 5 April 2019, in line with its benchmark index, the FTSE All-Share A Income Units A Accumulation Units Index, which also returned 7.6%. Over the six-month period to 5 April 2019, the Fund returned 1.9%*, in line with its benchmark index, which also returned -1.9%. For the year For the year For the year For the year For the year For the year to 5.4.2019 to 5.4.2018 to 5.4.2017 to 5.4.2019 to 5.4.2018 to 5.4.2017 Market Review Pence per unit Pence per unit Pence per unit Pence per unit Pence per unit Pence per unit Stocks in the UK fell from the beginning of the period until the end of 2018, amid concerns about global trade Change in net assets per unit and an economic slowdown. However, as 2019 began, UK equities regained their losses, with optimism about Opening net asset value per unit 1,357 1,369 1,147 2,419 2,350 1,900 the US–China trade relationship and supportive policies from key central banks boosting investor sentiment. Return before operating charges 93.55 42.64 270.5 169.9 71.41 451.7 The pound’s weakness also helped to boost larger, multinational UK companies, as these generate most of Operating charges (1.52) (1.40) (1.15) (2.75) (2.44) (1.93) their revenues overseas, meaning that a depreciation in sterling makes them more competitive. Return after operating charges 92.03 41.24 269.4 167.1 68.97 449.8

The overall gain in markets came despite the concerns caused by Brexit. Prime Minister Theresa May agreed Distributions (55.60) (53.02) (47.18) (100.5) (92.21) (79.26) a deal with the European Union (EU), but this failed to secure approval in Parliament. The recurring possibility Retained distributions on of the UK leaving the EU without a deal affected sentiment towards UK stock markets and the country’s accumulation units N/A N/A N/A 100.5 92.21 79.26 economy over the period. Towards the end of the 12 months, the UK government requested a postponement Closing net asset value per unit 1,393 1,357 1,369 2,586 2,419 2,350 of the original 29 March exit date. Originally the delay was to extend to 12 April, or 22 May if the much- After direct transaction costs of (0.13) (0.11) (0.13) (0.24) (0.19) (0.21) debated Withdrawal Agreement was accepted in Parliament, but the Brexit process has since been delayed by a further six months, with a new deadline from the EU of 31 October 2019. Performance

Return after charges1 6.78% 3.01% 23.48% 6.91% 2.93% 23.67% The UK’s economic data was mixed. After having grown 0.6% in the third quarter of 2018, the economy pace of growth subsequently slowed, expanding by 0.2% in the fourth quarter. More positively, unemployment fell Other information to 3.9% over the three months to January, which was the lowest level since 1975. Inflation remained above the Closing net asset value (£000’s) 152,738 182,721 206,155 10,742 38,013 69,259 Bank of England’s 2% target for most of the period, before dropping to 1.8% in January 2019, a two-year low. Closing number of units 10,961,255 13,462,832 15,056,918 415,383 1,571,443 2,947,469 However, this figure had climbed to 1.9% by March 2019. The only interest-rate hike of the period took place 2 in August, when UK’s central bank raised rates by 0.25%, to 0.75%, in line with investors’ expectations. Operating charges 0.11% 0.10% 0.09% 0.11% 0.10% 0.09% Direct transaction costs3 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% April 2019 Prices Pence per unit Pence per unit Pence per unit Pence per unit Pence per unit Pence per unit

* Performance figures quoted are based on bid-to-bid dealing prices (the prices at which units are sold). Performance is calculated net of fees and reported for the Fund’s Class Highest offer unit price 1,494 1,469 1,398 2,662 2,584 2,377 A Accumulation Units. Lowest bid unit price 1,245 1,321 1,127 2,270 2,300 1,867

1 The return after charges figures are based on the net asset value reported for financial statements purposes and are not the same as the performance returns figures quoted in the Performance Table and the Investment Report which are based on bid-to-bid dealing prices (the price at which units are sold). 2 Operating charges are annualised and exclude portfolio trade-related costs, except costs paid to the custodian/trustee and entry/exit charges paid to an underlying collective investment scheme (if any). 3 Direct transaction costs are annualised and principally comprise commissions and taxes, attributable to the Fund’s purchase and sale of equity/debt instruments. See note 14 for further details.

7 ChariTrak Common Investment Fund ChariTrak Common Investment Fund 8 Performance Record continued Distribution Tables for the year ended 5 April 2019

Comparative Table Final Distribution in Pence per Unit For the period 12 January 2019 to 5 April 2019 X Income Units X Accumulation Units

For the year For the year For the year For the year For the year For the year A Income A Accumulation X Income X Accumulation to 5.4.2019 to 5.4.2018 to 5.4.2017 to 5.4.2019 to 5.4.2018 to 5.4.2017 Units Units Units Units

Pence per unit Pence per unit Pence per unit Pence per unit Pence per unit Pence per unit Distribution payable 5.6.2019 15.7961 28.9557 1.3011 1.5708

Change in net assets per unit Distribution paid 5.6.2018 14.0374 24.7553 1.1599 1.3448

Opening net asset value per unit 109.6 110.6 92.64 128.4 124.6 100.6 Third Interim Distribution in Pence per Unit Return before operating charges 7.53 3.40 21.85 9.04 3.83 24.03 For the period 13 October 2018 to 11 January 2019 Operating charges (0.01) (0.01) (0.01) (0.01) (0.01) (0.01)

Return after operating charges 7.52 3.39 21.84 9.03 3.82 24.02 A Income A Accumulation X Income X Accumulation Units Units Units Units Distributions (4.60) (4.40) (3.92) (5.48) (5.02) (4.32) Distribution paid 5.3.2019 8.3446 15.2158 0.7009 0.8405 Retained distributions on accumulation units N/A N/A N/A 5.48 5.02 4.32 Distribution paid 5.3.2018 7.9020 13.8625 0.6673 0.7693

Closing net asset value per unit 112.5 109.6 110.6 137.4 128.4 124.6 Second Interim Distribution in Pence per Unit After direct transaction costs of (0.01) (0.01) (0.01) (0.01) (0.01) (0.01) For the period 12 July 2018 to 12 October 2018

Performance A Income A Accumulation X Income X Accumulation Return after charges1 6.86% 3.07% 23.58% 7.03% 3.07% 23.88% Units Units Units Units Distribution paid 5.12.2018 15.7381 28.3517 1.3010 1.5413 Other information Distribution paid 5.12.2017 14.8272 25.7439 1.2267 1.3993 Closing net asset value (£000’s) 93,278 132,711 155,515 23,832 45,268 52,053 Closing number of units 82,901,854 121,093,863 140,664,940 17,340,427 35,250,875 41,770,908 First Interim Distribution in Pence per Unit Operating charges2 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% For the period 6 April 2018 to 11 July 2018

Direct transaction costs3 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% A Income A Accumulation X Income X Accumulation Units Units Units Units Prices Pence per unit Pence per unit Pence per unit Pence per unit Pence per unit Pence per unit Distribution paid 5.9.2018 15.7215 28.0189 1.3011 1.5245 Highest offer unit price 120.6 118.7 112.9 141.3 137.2 126.1 Distribution paid 5.9.2017 16.2489 27.8438 1.3428 1.5112 Lowest bid unit price 100.5 106.7 91.05 120.6 122.0 98.91

1 The return after charges figures are based on the net asset value reported for financial statements purposes and are not the same as the performance returns figures quoted in the Performance Table and the Investment Report which are based on bid-to-bid dealing prices (the price at which units are sold). 2 Operating charges are annualised and exclude portfolio trade-related costs, except costs paid to the custodian/trustee and entry/exit charges paid to an underlying collective investment scheme (if any). 3 Direct transaction costs are annualised and principally comprise commissions and taxes, attributable to the Fund’s purchase and sale of equity/debt instruments. See note 14 for further details.

9 ChariTrak Common Investment Fund ChariTrak Common Investment Fund 10 Report on Remuneration

The below disclosures are made in respect of the remuneration policies of the BlackRock group (“BlackRock”), (b) The Manager’s Board as they apply to BlackRock Fund Managers Limited (the “Manager”). The disclosures are made in accordance The Manager’s Board has the task of supervising and providing oversight of the AIFM Remuneration Policy as with the Alternative Investment Fund Managers Directive (the “AIFMD”), the European Commission Delegated it applies to the Manager and its Identified Staff. Regulation supplementing the AIFMD (the “Delegated Regulation”) and the “Guidelines on sound remuneration policies under the AIFMD” issued by the European Securities and Markets Authority. Decision-making process Remuneration decisions for employees are made once annually in January following the end of the The BlackRock AIFM Remuneration Policy (the “AIFM Remuneration Policy”) will apply to the EEA entities performance year. This timing allows full-year financial results to be considered along with other non- within the BlackRock group authorised as a manager of alternative investment funds in accordance with the financial goals and objectives. Although the framework for remuneration decision-making is tied to financial AIFMD, and will ensure compliance with the requirements of Annex II of the AIFMD. performance, significant discretion is used to determine individual variable remuneration based on achievement of strategic and operating results and other considerations such as management and leadership The Manager has adopted the AIFM Remuneration Policy, a summary of which is set out below. capabilities.

Remuneration Governance No set formulas are established and no fixed benchmarks are used in determining annual incentive awards. BlackRock’s remuneration governance in EMEA operates as a tiered structure which includes: (a) the In determining specific individual remuneration amounts, a number of factors are considered including non- Management Development and Compensation Committee (“MDCC”) (which is the global, independent financial goals and objectives and overall financial and investment performance. These results are viewed remuneration committee for BlackRock, Inc. and all of its subsidiaries, including the Manager); and (b) the in the aggregate without any specific weighting, and there is no direct correlation between any particular Manager’s board of directors (the “Manager’s Board”). These bodies are responsible for the determination performance measure and the resulting annual incentive award. The variable remuneration awarded to any of BlackRock’s remuneration policies. individual(s) for a particular performance year may also be zero.

(a) MDCC Annual incentive awards are paid from a bonus pool. The MDCC’s purposes include: The size of the projected bonus pool, including cash and equity awards, is reviewed throughout the year by • providing oversight of: the MDCC and the final total bonus pool is approved after year-end. As part of this review, the MDCC receives – BlackRock’s executive compensation programmes; actual and projected financial information over the course of the year as well as final year-end information. The financial information that the MDCC receives and considers includes the current year projected income – BlackRock’s employee benefit plans; and statement and other financial measures compared with prior year results and the current year budget. The – such other compensation plans as may be established by BlackRock from time to time for which the MDCC additionally reviews other metrics of BlackRock’s financial performance (e.g., net inflows of AUM and MDCC is deemed as administrator; investment performance) as well as information regarding market conditions and competitive compensation levels. • reviewing and discussing the compensation discussion and analysis included in the BlackRock, Inc. annual proxy statement with management and approving the MDCC’s report for inclusion in the proxy statement; The MDCC regularly considers management’s recommendation as to the percentage of preincentive • reviewing, assessing and making reports and recommendations to the BlackRock, Inc. board of directors operating income that will be accrued and reflected as a compensation expense throughout the year for the (the “BlackRock, Inc. Board”) as appropriate on BlackRock’s talent development and succession planning, cash portion of the total annual bonus pool (the “accrual rate”). The accrual rate of the cash portion of the with the emphasis on performance and succession at the highest management levels; and total annual bonus pool may be modified by the MDCC during the year based on its review of the financial information described above. The MDCC does not apply any particular weighting or formula to the information • in accordance with applicable UK and European regulations and guidance, to act as the Remuneration it considers when determining the size of the total bonus pool or the accruals made for the cash portion of the Committee for BlackRock’s EMEA regulated entities. total bonus pool. The MDCC directly retains its own independent compensation consultant, Semler Brossy Consulting Group Following the end of the performance year, the MDCC approves the final bonus pool amount. LLC, who has no relationship with BlackRock Inc. or the BlackRock, Inc. Board that would interfere with its ability to provide independent advice to the MDCC on compensation matters. As part of the year-end review process the Enterprise Risk and Regulatory Compliance departments report to the MDCC on any activities, incidents or events that warrant consideration in making compensation decisions. The BlackRock, Inc. Board has determined that all of the members of the MDCC are “independent” within the meaning of the listing standards of the New York Stock Exchange (NYSE), which requires each meet a Individuals are not involved in setting their own remuneration. “non-employee director” standard.

The MDCC held 10 meetings during 2018. The MDCC charter is available on BlackRock, Inc.’s website (www.blackrock.com).

11 ChariTrak Common Investment Fund ChariTrak Common Investment Fund 12 Report on Remuneration continued

Control functions When setting remuneration levels other factors are considered, as well as individual performance, which Each of the control functions (Enterprise Risk, Legal & Compliance, and Internal Audit) has its own organisational may include: structure which is independent of the business units. The head of each control function is either a member of the Global Executive Committee (“GEC”), the global management committee, or has a reporting obligation to • the performance of the Manager, the funds managed by the Manager and/or the relevant functional the board of directors of BlackRock Group Limited, the parent company of all of BlackRock’s EMEA regulated department; entities, including the Manager. • factors relevant to an employee individually; relationships with clients and colleagues; teamwork; skills; any conduct issues; and, subject to any applicable policy, the impact that any relevant leave of absence may Functional bonus pools are determined with reference to the performance of each individual function. The have on contribution to the business; remuneration of the senior members of control functions is directly overseen by the MDCC. • the management of risk within the risk profiles appropriate for BlackRock’s clients;

Link between pay and performance • strategic business needs, including intentions regarding retention; There is a clear and well-defined pay-for-performance philosophy and compensation programmes which are • market intelligence; and designed to meet the following key objectives as detailed below: • criticality to business.

• appropriately balance BlackRock’s financial results between shareholders and employees; A primary product tool is risk management and, while employees are compensated for strong performance • attract, retain and motivate employees capable of making significant contributions to the long-term success in their management of client assets, they are required to manage risk within the risk profiles appropriate of the business; for their clients. Therefore, employees are not rewarded for engaging in high-risk transactions outside of • align the interests of senior employees with those of shareholders by awarding BlackRock Inc.’s stock as a established parameters. Remuneration practices do not provide undue incentives for short-term planning or significant part of both annual and long-term incentive awards; short-term financial rewards, do not reward unreasonable risk and provide a reasonable balance between the many and substantial risks inherent within the business of investment management, risk management and • control fixed costs by ensuring that compensation expense varies with profitability; advisory services. • link a significant portion of an employee’s total compensation to the financial and operational performance of the business as well as its common stock performance; BlackRock operates a total compensation model for remuneration which includes a base salary, which is • discourage excessive risk-taking; and contractual, and a discretionary bonus scheme. • ensure that client interests are not negatively impacted by remuneration awarded on a short-term, mid-term and/or long-term basis. BlackRock operates an annual discretionary bonus scheme. Although all employees are eligible to be considered for a discretionary bonus, there is no contractual obligation to make any award to an employee Driving a high-performance culture is dependent on the ability to measure performance against objectives, under its discretionary bonus scheme. In exercising discretion to award a discretionary bonus, the factors values and behaviours in a clear and consistent way. Managers use a 5-point rating scale to provide an listed above (under the heading “Link between pay and performance”) may be taken into account in addition overall assessment of an employee’s performance, and employees also provide a self-evaluation. The overall, to any other matters which become relevant to the exercise of discretion in the course of the performance year. final rating is reconciled during each employee’s performance appraisal. Employees are assessed on the manner in which performance is attained as well as the absolute performance itself. Discretionary bonus awards for all employees, including executive officers, are subject to a guideline that determines the portion paid in cash and the portion paid in BlackRock, Inc. stock and subject to additional In keeping with the pay-for-performance philosophy, ratings are used to differentiate and reward individual vesting/clawback conditions. Stock awards are subject to further performance adjustment through variation performance – but don’t pre-determine compensation outcomes. Compensation decisions remain discretionary in BlackRock, Inc.’s share price over the vesting period. As total annual compensation increases, a greater and are made as part of the year-end compensation process. portion is deferred into stock. The MDCC adopted this approach in 2006 to substantially increase the retention value and shareholder alignment of the compensation package for eligible employees, including the executive officers. The portion deferred into stock vests into three equal instalments over the three years following grant.

13 ChariTrak Common Investment Fund ChariTrak Common Investment Fund 14 Report on Remuneration continued

Supplementary to the annual discretionary bonus as described above, equity awards from the “Partner Plan” Quantitative Remuneration Disclosure and “Targeted Equity Award Plan” are made to select senior leaders to provide greater linkage with future The Manager is required under the AIFMD to make quantitative disclosures of remuneration. These disclosures business results. The long-term incentive awards have been established individually to provide meaningful are made in line with BlackRock’s interpretation of currently available regulatory guidance on quantitative incentive for continued performance over a multi-year period recognising the scope of the individual’s role, remuneration disclosures. As market or regulatory practice develops BlackRock may consider it appropriate to business expertise and leadership skills. make changes to the way in which quantitative remuneration disclosures are calculated. Where such changes are made, this may result in disclosures in relation to a fund not being comparable to the disclosures made in Selected senior leaders are eligible to receive performance-adjusted equity-based awards from the “BlackRock the prior year, or in relation to other BlackRock fund disclosures in that same year. Performance Incentive Plan” (“BPIP”). Awards made from the BPIP have a three-year performance period based on a measurement of As Adjusted Operating Margin1 and Organic Revenue Growth2. Determination of Disclosures are provided in relation to (a) the staff of the Manager; (b) staff who are senior management; pay-out will be made based on the firm’s achievement relative to target financial results at the conclusion of and (c) staff who have the ability to materially affect the risk profile of the Fund, including individuals who, the performance period. The maximum number of shares that can be earned is 165% of the award in those although not directly employed by the Manager, are assigned by their employer to carry out services directly situations where both metrics achieve pre-determined financial targets. No shares will be earned where the for the Manager. firm’s financial performance in both of the above metrics is below a pre-determined performance threshold. These metrics have been selected as key measures of shareholder value which endure across market cycles. All individuals included in the aggregated figures disclosed are rewarded in line with BlackRock’s remuneration policy for their responsibilities across the relevant BlackRock business area. As all individuals A limited number of investment professionals have a portion of their annual discretionary bonus (as described have a number of areas of responsibilities, only the portion of remuneration for those individuals’ services above) awarded as deferred cash that notionally tracks investment in selected products managed by the attributable to the Fund is included in the aggregate figures disclosed. employee. The intention of these awards is to align investment professionals with the investment returns of the products they manage through the deferral of compensation into those products. Clients and external Members of staff and senior management of the Manager typically provide both AIFMD and non-AIFMD evaluators have increasingly viewed more favourably those products where key investors have “skin in the related services in respect of multiple funds, clients and functions of the Manager and across the broader game” through significant personal investments. BlackRock group. Therefore, the figures disclosed are a sum of each individual’s portion of remuneration attributable to the Manager according to an objective apportionment methodology which acknowledges the Identified Staff multiple-service nature of the Manager. Accordingly the figures are not representative of any individual’s The AIFM Remuneration Policy sets out the process that will be applied to identify staff as Identified Staff, actual remuneration or their remuneration structure. being categories of staff of the Manager, including senior management, risk takers, control functions and any employee receiving total remuneration that takes them into the same remuneration bracket as senior The amount of the total remuneration awarded by the Manager to its staff which has been attributed to the management and risk takers, whose professional activities have a material impact on the risk profiles of the Manager’s AIFMD-related business in respect of the Manager’s financial year ending 31 December 2018 is Manager or of the funds it manages. GBP 19.7 million. This figure is comprised of fixed remuneration of GBP 2.1 million and variable remuneration of GBP 17.6 million. There were a total of 52 beneficiaries of the remuneration described above. The list of Identified Staff will be subject to regular review, being formally reviewed in the event of, but not limited to: The amount of the aggregate remuneration awarded by the Manager, which has been attributed to the Manager’s AIFMD-related business in respect of the Manager’s financial year ending 31 December 2018, • organisational changes; to its senior management was GBP 1.0 million, and to members of its staff whose actions have a material • new business initiatives; impact on the risk profile of the Manager’s AIFMD-related business was GBP 18.7 million. • changes in significant influence function lists; • changes in role responsibilities; and • revised regulatory direction.

1 As Adjusted Operating Margin: As reported in BlackRock’s external filings, reflects adjusted Operating Income divided by Total Revenue net of distribution and servicing expenses and amortisation of deferred sales commissions. 2 Organic Revenue Growth: Equal to net new base fees plus net new Aladdin revenue generated in the year (in dollars).

15 ChariTrak Common Investment Fund ChariTrak Common Investment Fund 16 Portfolio Statement at 5 April 2019

Holding or Market % of Holding or Market % of Nominal Value Total Net Nominal Value Total Net Value Investment £000’s Assets Value Investment £000’s Assets

EQUITIES – 94.32%; 5.4.2018 94.84% Chemicals – 0.74%; 5.4.2018 0.73% 15,130 Croda International 772 0.28 Aerospace & Defence – 1.84%; 5.4.2018 1.87% 70,826 120 0.04 2,665 35 0.01 22,545 Johnson Matthey 755 0.27 386,963 BAE Systems 1,950 0.70 31,032 121 0.04 43,987 Chemring 63 0.02 10,591 Treatt 42 0.01 298,314 Cobham 339 0.12 10,083 235 0.08 89,553 472 0.17 7,908 Zotefoams 47 0.02 68,216 QinetiQ 208 0.07 200,357 Rolls-Royce 1,857 0.66 2,092 0.74 53,779 Senior 126 0.04 Construction & Materials – 2.18%; 5.4.2018 1.43% 8,457 134 0.05 83,590 220 0.08 5,184 1.84 16,932 Costain 60 0.02 98,994 CRH 2,503 0.89 Automobiles & Parts – 0.04%; 5.4.2018 0.33% 27,617 Ferguson 1,451 0.52 6,714 Lagonda 68 0.02 25,959 Forterra 77 0.03 30,516 TI Fluid Systems 65 0.02 15,959 Henry Boot 42 0.02 133 0.04 48,450 Ibstock 122 0.04 Banks – 10.19%; 5.4.2018 10.81% 7,885 Keller 51 0.02 5,482 Bank of Georgia 95 0.03 19,538 Kier 70 0.02 2,058,869 Barclays 3,351 1.20 167,388 Low & Bonar 22 0.01 152,879 CYBG 318 0.11 23,118 Marshalls 146 0.05 5,482 Georgia Capital 60 0.02 572,910 Melrose Industries 1,105 0.39 2,421,576 HSBC 15,815 5.64 3,980 Morgan Sindall 51 0.02 8,558,832 Lloyds Banking 5,324 1.90 16,089 Norcros 31 0.01 537,991 NatWest Markets 1,354 0.48 21,590 Polypipe 88 0.03 193,437 Northern Rock* – 0.00 18,665 49 0.02 29,324 OneSavings Bank 117 0.04 24,348 Volution 41 0.01 322,013 Standard Chartered 2,079 0.74 6,129 2.18 5,194 TBC Bank 83 0.03 Electricity – 0.59%; 5.4.2018 0.63% 28,596 10.19 30,718 ContourGlobal 58 0.02 Beverages – 3.53%; 5.4.2018 2.92% 49,955 Drax 190 0.07 9,380 A.G. Barr 76 0.03 122,280 SSE 1,413 0.50 29,368 279 0.10 1,661 0.59 23,159 Coca-Cola HBC 597 0.21

285,920 Diageo 8,921 3.18 15,907 Stock Spirits 35 0.01 9,908 3.53

17 ChariTrak Common Investment Fund ChariTrak Common Investment Fund 18 Portfolio Statement continued

Holding or Market % of Holding or Market % of Nominal Value Total Net Nominal Value Total Net Value Investment £000’s Assets Value Investment £000’s Assets

Electronic & Electrical Equipment – 0.57%; 5.4.2018 0.50% 68,982 TP ICAP 191 0.07 3,820 Dialight 17 0.01 27,827 Utilico Emerging Markets Trust Fund 60 0.02 45,011 Halma 796 0.28 55,167 VPC Specialty Lending Investments 40 0.01 29,847 Morgan Advanced Materials 77 0.03 30,213 XPS Pensions 40 0.01 4,895 50 0.02 8,766 3.14 4,325 Renishaw 180 0.06 14,354 386 0.14 Fixed Line Telecommunications – 0.88%; 5.4.2018 0.91% 15,932 TT Electronics 37 0.01 993,314 BT 2,223 0.79 10,105 Xaar 9 0.00 36,460 KCOM 26 0.01 1,870 XP Power 46 0.02 93,324 Talktalk Telecom 110 0.04 6,630 100 0.04 1,598 0.57 2,459 0.88 Financial Services – 3.14%; 5.4.2018 2.75% 115,831 3i 1,195 0.43 Food & Drug Retailers – 1.72%; 5.4.2018 1.51% 18,993 AJ Bell 65 0.02 12,353 226 0.08 42,403 Allied Minds 23 0.01 187,948 J Sainsbury 449 0.16 22,009 Amigo 47 0.02 55,257 Ocado 768 0.27 19,137 Arrow Global 38 0.01 1,169,605 Tesco 2,770 0.99 4,644 ASA International 20 0.01 268,336 Wm Morrison Supermarkets 612 0.22 49,994 Ashmore 228 0.08 4,825 1.72 33,407 111 0.04 Food Producers – 2.82%; 5.4.2018 2.69% 20,519 Charter Court Financial Services 70 0.02 41,396 Associated British Foods 1,031 0.37 4,851 City of London Investment 19 0.01 25,210 Bakkavor 32 0.01 18,947 Close Brothers 286 0.10 22,670 Carr’s Milling 34 0.01 30,599 Hargreaves Lansdown 629 0.22 6,302 Cranswick 179 0.06 44,052 IG 227 0.08 18,397 Dairy Crest 114 0.04 24,014 IntegraFin 85 0.03 27,429 Devro 51 0.02 29,652 International Personal Finance 59 0.02 55,200 112 0.04 75,709 364 0.13 7,394 Hilton Food 68 0.02 117,233 IP 114 0.04 113,028 39 0.01 61,167 John Laing 242 0.09 15,085 PureCircle 40 0.02 13,336 JTC 48 0.02 56,981 Tate & Lyle 417 0.15 50,565 192 0.07 131,675 Unilever 5,796 2.07 3,308 Liontrust 20 0.01 37,793 1,868 0.67 7,913 2.82 168,942 Man 240 0.09 Forestry & Paper – 0.28%; 5.4.2018 0.30% 11,214 Metro Bank 92 0.03 43,637 Mondi 789 0.28 29,307 Paragon 130 0.05 Gas, Water & Multiutilities – 2.06%; 5.4.2018 2.05% 13,512 Plus 500 103 0.04 694,222 768 0.27 31,477 Provident Financial 157 0.06 409,271 National Grid 3,416 1.22 226,966 Quilter 351 0.13 51,733 Pennon 379 0.14 6,664 150 0.05 27,540 Severn Trent 546 0.19 20,084 Real Estate Credit Investments 34 0.01 81,027 United Utilities 669 0.24 852 S&U 16 0.01 12,789 Schroders 369 0.13 5,778 2.06 297,366 Standard Life Aberdeen 843 0.30

19 ChariTrak Common Investment Fund ChariTrak Common Investment Fund 20 Portfolio Statement continued

Holding or Market % of Holding or Market % of Nominal Value Total Net Nominal Value Total Net Value Investment £000’s Assets Value Investment £000’s Assets

General Industrials – 0.67%; 5.4.2018 0.69% Household Goods & Home Construction – 3.19%; 5.4.2018 3.17% 174,246 Coats 140 0.05 119,522 736 0.26 147,703 DS Smith 513 0.18 15,236 479 0.17 48,723 RPC 385 0.14 13,930 Berkeley 526 0.19 46,967 Smiths 705 0.25 15,622 Bovis Homes 170 0.06 22,066 Vesuvius 139 0.05 54,710 176 0.06 1,882 0.67 27,165 104 0.04 11,118 Galliford Try 77 0.03 General Retailers – 1.70%; 5.4.2018 1.73% 9,330 Headlam 41 0.01 66,094 AA 55 0.02 23,193 McBride 23 0.01 48,792 AO World 48 0.02 7,165 MJ Gleeson 58 0.02 98,252 B&M European Value Retail 379 0.14 37,434 Persimmon 833 0.30 32,056 Card Factory 57 0.02 75,420 Reckitt Benckiser 4,814 1.72 63,569 Carpetright 9 0.00 31,451 Redrow 194 0.07 27,005 DFS Furniture 68 0.02 384,650 708 0.25 6,037 Dignity 43 0.02 8,939 3.19 119,552 172 0.06 10,983 Dunelm 98 0.03 Industrial Engineering – 0.92%; 5.4.2018 0.86% 30,870 Halfords 74 0.03 24,537 213 0.08 51,797 Inchcape 298 0.11 9,887 Hill & Smith 128 0.05 39,054 JD Sports Fashion 198 0.07 30,190 IMI 300 0.11 66,864 Just Eat 516 0.18 7,371 Porvair 39 0.01 250,358 Kingfisher 619 0.22 4,092 Rhi Magnesita 198 0.07 54,343 Lookers 49 0.02 107,922 327 0.12 189,750 Marks & Spencer 537 0.19 87,000 Severfield 57 0.02 21,866 N Brown 23 0.01 8,585 Spirax-Sarco Engineering 654 0.23 15,787 Next 894 0.32 16,346 Trifast 32 0.01 181,067 Pendragon 45 0.02 7,713 Vitec 87 0.03 57,528 93 0.03 31,639 Weir 534 0.19 131,397 Saga 87 0.03 2,569 0.92 28,032 Sports Direct International 79 0.03 29,664 39 0.01 Industrial Metals & Mining – 1.91%; 5.4.2018 0.13% 12,637 WH Smith 274 0.10 250,548 BHP 4,840 1.73 62,352 Evraz 405 0.14 4,754 1.70 33,689 94 0.03 Health Care Equipment & Services – 0.90%; 5.4.2018 0.98% 20,076 Kenmare Resources 39 0.01 7,486 Consort Medical 64 0.02 5,378 1.91 180,872 ConvaTec 247 0.09 40,693 131 0.05 Industrial Transportation – 0.32%; 5.4.2018 0.48% 9,676 NMC Health 244 0.09 125,116 BBA Aviation 321 0.11 104,195 Smith & Nephew 1,575 0.56 3,007 Clarkson 71 0.03 45,854 62 0.02 12,256 Clipper Logistics 32 0.01 29,505 UDG Healthcare 183 0.07 4,582 James Fisher & Sons 90 0.03 111,029 Royal Mail 282 0.10 2,506 0.90 45,683 Stobart 69 0.02 18,717 Wincanton 43 0.02 908 0.32

21 ChariTrak Common Investment Fund ChariTrak Common Investment Fund 22 Portfolio Statement continued

Holding or Market % of Holding or Market % of Nominal Value Total Net Nominal Value Total Net Value Investment £000’s Assets Value Investment £000’s Assets

Leisure Goods – 0.05%; 5.4.2018 0.05% 30,110 KAZ Minerals 210 0.07 3,362 106 0.04 45,263 Lonmin 36 0.01 46,477 Photo-Me 36 0.01 110,314 Petra Diamonds 19 0.01 142 0.05 309,627 Petropavlovsk 25 0.01 33,757 Polymetal International 282 0.10 Life Insurance – 3.91%; 5.4.2018 4.96% 133,499 Rio Tinto 6,223 2.22 466,673 Aviva 2,009 0.72 513,749 Sirius Minerals 108 0.04 26,222 Chesnara 100 0.04 14,853 5.29 33,650 Intermediate Capital 380 0.14 109,608 Just 71 0.02 Mobile Telecommunications – 1.73%; 5.4.2018 2.40% 704,704 Legal & General 2,018 0.72 58,202 Inmarsat 318 0.11 63,081 Phoenix 442 0.16 3,216,675 Vodafone 4,546 1.62 312,235 Prudential 5,246 1.87 4,864 1.73 64,506 St. James’s Place Capital 682 0.24 Non-Life Insurance – 1.04%; 5.4.2018 1.13% 10,948 3.91 23,577 Admiral 528 0.19 Media – 3.51%; 5.4.2018 3.41% 63,008 Beazley 335 0.12 4,043 101 0.04 161,744 Direct Line 550 0.20 48,086 178 0.06 35,919 Hastings 79 0.03 107,325 Auto Trader 569 0.20 34,183 536 0.19 19,849 Bloomsbury Publishing 44 0.02 24,384 Lancashire 159 0.06 43,696 Entertainment One 201 0.07 121,335 RSA Insurance 639 0.23 12,043 Euromoney Institutional Investor 155 0.05 22,577 Sabre Insurance 65 0.02 35,043 Gocompare.Com 27 0.01 2,891 1.04 56,534 Huntsworth 46 0.02 147,376 Informa 1,140 0.41 Oil & Gas Producers – 13.88%; 5.4.2018 12.79% 63,323 ITE 47 0.02 2,390,387 BP 13,589 4.84 434,386 ITV 584 0.21 64,735 104 0.04 64,856 Moneysupermarket.com 226 0.08 6,623 Oil & Gas 51 0.02 92,730 Pearson 777 0.28 256,022 Enquest 52 0.02 58,191 Reach 38 0.01 12,274 Nostrum Oil & Gas 11 0.00 227,667 RELX 3,804 1.36 66,897 Ophir Energy 38 0.01 103,577 536 0.19 94,322 Premier Oil 94 0.03 9,370 STV 35 0.01 536,940 Royal Dutch Shell class ‘A’ shares 13,292 4.74 19,738 Tarsus 61 0.02 451,660 Royal Dutch Shell class ‘B’ shares 11,278 4.02 145,947 WPP 1,268 0.45 47,743 SOCO International 33 0.01 171,868 420 0.15 9,837 3.51 38,962 13.88 Mining – 5.29%; 5.4.2018 6.40% 14,663 Acacia Mining 29 0.01 Oil Equipment, Services & Distribution – 0.24%; 5.4.2018 0.26% 119,167 Anglo American 2,603 0.93 35,670 Gulf Marine Services 5 0.00 43,658 Antofagasta 433 0.15 14,520 Hunting 93 0.03 130,001 117 0.04 81,583 John Wood 432 0.15 22,082 Fresnillo 195 0.07 32,055 Petrofac 166 0.06 1,359,050 Glencore 4,515 1.61 696 0.24 28,120 58 0.02

23 ChariTrak Common Investment Fund ChariTrak Common Investment Fund 24 Portfolio Statement continued

Holding or Market % of Holding or Market % of Nominal Value Total Net Nominal Value Total Net Value Investment £000’s Assets Value Investment £000’s Assets

Personal Goods – 0.39%; 5.4.2018 0.39% 11,543 371 0.13 48,571 Burberry 962 0.34 36,578 Ediston Property Investment 38 0.01 27,591 PZ Cussons 53 0.02 57,786 Empiric Student Property 53 0.02 7,649 SuperGroup 34 0.01 58,127 F&C Commercial Property Trust 70 0.03 3,146 Ted Baker 48 0.02 32,385 F&C UK Real Estate Investment Trust 29 0.01 1,097 0.39 34,720 259 0.09 89,423 306 0.11 Pharmaceuticals & Biotechnology – 7.30%; 5.4.2018 7.59% 32,890 Hansteen 32 0.01 158,101 AstraZeneca 9,714 3.46 116,871 Properties 122 0.04 47,254 BTG 394 0.14 83,749 Land Securities 764 0.27 12,406 325 0.12 70,826 LondonMetric Property 140 0.05 7,593 Genus 167 0.06 41,938 LXI REIT 54 0.02 587,220 GlaxoSmithKline 9,360 3.34 73,581 McCarthy & Stone 95 0.03 17,122 Hikma Pharmaceuticals 308 0.11 14,992 McKay Securities 35 0.01 86,094 85 0.03 28,958 NewRiver REIT 70 0.03 7,052 Oxford Biomedica 52 0.02 138,102 Primary Health Properties 177 0.06 22,328 PureTech Health 36 0.01 29,677 RDI REIT 46 0.02 57,267 Vectura 42 0.01 21,592 Regional REIT 23 0.01 20,483 7.30 21,165 129 0.05 128,966 877 0.31 Real Estate Investment & Services – 0.50%; 5.4.2018 0.44% 28,783 Shaftesbury 251 0.09 93,038 Capital & Counties Properties 230 0.08 63,586 Standard Life Investment Property Trust 57 0.02 22,574 CLS 54 0.02 30,939 Target Healthcare REIT 36 0.01 47,280 4 0.00 4,678 Town Centre Securities 10 0.00 850 Daejan 51 0.02 42,349 Triple Point Social Housing REIT 42 0.01 19,541 12 0.00 187,438 Tritax Big Box 277 0.10 69,481 Grainger Trust 169 0.06 69,720 UK Commercial Property Trust 61 0.02 24,013 Harworth 31 0.01 17,414 Workspace 170 0.06 12,932 Helical Bar 43 0.02 19,762 LSL Property Services 55 0.02 5,792 2.06 13,629 Phoenix Spree Deutschland 50 0.02 Software & Computer Services – 1.06%; 5.4.2018 0.84% 68,745 Raven Russia 28 0.01 18,953 Alfa Financial Software 27 0.01 15,770 148 0.05 47,126 Avast 134 0.05 35,853 Schroder Real Estate 21 0.01 7,982 AVEVA 263 0.09 106,642 68 0.02 7,855 84 0.03 24,261 St. Modwen Properties 97 0.04 10,216 FDM 94 0.03 20,206 U and I 36 0.01 17,554 Funding Circle 55 0.02 32,519 Unite 304 0.11 9,317 51 0.02 1,401 0.50 49,782 International 973 0.35 9,520 Microgen 36 0.01 Real Estate Investment Trusts – 2.06%; 5.4.2018 2.08% 25,711 NCC 39 0.01 291,049 Assura 166 0.06 129,066 Sage 916 0.33 19,283 Big Yellow 196 0.07 12,352 SDL 66 0.02 115,015 688 0.25 14,606 124 0.04 68,233 Capital & Regional 17 0.01 42,046 Sophos 134 0.05 90,726 81 0.03 43,686 Custodian REIT 50 0.02 2,996 1.06

25 ChariTrak Common Investment Fund ChariTrak Common Investment Fund 26 Portfolio Statement continued

Holding or Market % of Holding or Market % of Nominal Value Total Net Nominal Value Total Net Value Investment £000’s Assets Value Investment £000’s Assets

Support Services – 4.58%; 5.4.2018 4.81% Technology Hardware & Equipment – 0.05%; 5.4.2018 0.07% 30,559 253 0.09 40,826 Nanoco 19 0.01 57,001 Ashtead 1,158 0.41 72,265 Communications 104 0.04 57,037 289 0.10 123 0.05 97,547 BCA Marketplace 201 0.07 Tobacco – 4.11%; 5.4.2018 5.24% 11,581 25 0.01 275,021 British American Tobacco 8,579 3.06 39,979 Bunzl 1,014 0.36 114,715 Imperial Brands 2,943 1.05 206,077 253 0.09 11,522 4.11 17,511 Charles Taylor Consulting 39 0.01 Travel & Leisure – 4.43%; 5.4.2018 4.51% 41,155 Connect 16 0.01 24,491 38 0.01 11,674 DCC 809 0.29 19,568 Carnival 773 0.28 14,782 De La Rue 62 0.02 115,085 342 0.12 13,609 Diploma 212 0.08 190,891 Compass 3,483 1.24 10,581 DiscoverIE 41 0.01 56,563 Domino’s Pizza 140 0.05 55,023 337 0.12 30,132 easyJet 319 0.11 29,595 Equiniti 64 0.02 55,590 Enterprise Inns 115 0.04 31,672 130 0.05 152,247 FirstGroup 141 0.05 110,824 Experian 2,316 0.83 5,661 Fuller Smith & Turner class ‘A’ shares 64 0.02 191,493 G4S 352 0.13 4,710 Go-Ahead 90 0.03 26,821 Grafton 224 0.08 38,051 Greene King 253 0.09 161,508 Hays 246 0.09 65,715 GVC 386 0.14 30,830 337 0.12 16,397 Gym 36 0.01 67,588 Howden Joinery 349 0.12 19,510 Hollywood Bowl 42 0.02 19,213 Intertek 964 0.34 16,207 Hostelworld 34 0.01 83,475 IWG 218 0.08 21,554 InterContinental Hotels 1,030 0.37 5,006 John Menzies 23 0.01 188,781 International Consolidated Airlines 988 0.35 13,280 Mears 32 0.01 10,583 Jackpotjoy 73 0.03 28,552 38 0.01 7,633 JD Wetherspoon 102 0.04 19,668 Northgate 73 0.03 83,053 Marston’s 84 0.03 38,185 Pagegroup 187 0.07 87,942 Merlin Entertainments 301 0.11 9,237 PayPoint 81 0.03 13,241 Millennium & Copthorne Hotels 59 0.02 118,418 Renewi 30 0.01 27,900 Mitchells & Butlers 75 0.03 219,659 Rentokil Initial 799 0.28 52,029 210 0.08 6,548 Ricardo 42 0.01 14,031 On the Beach 58 0.02 11,734 Robert Walters 71 0.03 9,197 Paddy Power Betfair 577 0.21 16,565 RPS 31 0.01 38,841 172 0.06 16,743 Sanne 92 0.03 33,881 Rank 54 0.02 141,234 178 0.06 50,388 Restaurant 57 0.02 68,200 SIG 99 0.04 52,254 SSP 370 0.13 28,153 Smurfit Kappa 664 0.24 49,423 Stagecoach 68 0.02 51,368 Speedy Hire 28 0.01 156,023 Thomas Cook 37 0.01 8,742 SThree 25 0.01 49,719 TUI 372 0.13 29,363 406 0.14 21,838 Whitbread 1,098 0.39 4,750 Vp 47 0.02 108,179 William Hill 177 0.06 12,855 4.58 6,670 210 0.08 12,428 4.43

27 ChariTrak Common Investment Fund ChariTrak Common Investment Fund 28 Portfolio Statement continued

Holding or Market % of Holding or Market % of Nominal Value Total Net Nominal Value Total Net Value Investment £000’s Assets Value Investment £000’s Assets

COLLECTIVE INVESTMENT SCHEMES – 5.05%; 5.4.2018 4.53% 20,818 Ruffer Investment Red preference shares 44 0.02 18,584 Schroder Asia Pacific Fund 85 0.03 Equity Funds – 1.73%; 5.4.2018 1.54% 6,809 Schroder Asian Total Return Investment Company 25 0.01 65,644 184 0.07 4,289 Schroder Income Growth Fund 12 0.00 14,183 Aberdeen Asian Income Fund 30 0.01 19,090 Schroder Japan Growth Fund 35 0.01 44,971 Fund 65 0.02 24,614 Schroder Oriental Income Fund 63 0.02 41,590 Baillie Gifford Shin Nippon 75 0.03 3,921 Schroder UK Mid & Small Cap Fund 21 0.01 26,421 Baillie Gifford UK Growth Fund 48 0.02 115,262 Sequoia Economic Infrastructure Income Fund 130 0.05 55,017 BBGI 87 0.03 24,310 SQN Asset Finance Income 23 0.01 1,834 BH Global – GBP shares 27 0.01 51,166 SQN Asset Finance Income Fund 47 0.02 1,943 BH Macro Hedge Fund 45 0.02 36,154 Starwood European Real Estate Finance 38 0.01 39,057 Bluefield Solar Income Fund 52 0.02 11,562 Strategic Equity Capital 25 0.01 3,754 111 0.04 50,658 135 0.05 837 Capital Gearing 35 0.01 7,358 Third Point Offshore Investors 82 0.03 69,003 CQS New City High Yield Fund 40 0.01 34,594 TwentyFour Income Fund 40 0.01 35,996 CVC Credit Partners 38 0.01 28,336 TwentyFour Select Monthly Income Fund 26 0.01 32,477 Dexion Absolute GBP* – 0.00 24,685 Vietnam Enterprise Investments 108 0.04 7,246 F&C Global Small Companies 95 0.03 21,700 VinaCapital Vietnam Opportunity Fund 72 0.03 59,548 Foresight Solar Fund 69 0.02 53,557 Funding Circle SME Income Fund 46 0.02 4,822 1.73 41,375 GCP Asset Backed Income Fund 45 0.02 Fixed Income Funds – 0.02%; 5.4.2018 0.04% 121,398 Greencoat UK Wind 171 0.06 66,843 NB Global Floating Rate Income Fund 60 0.02 9,225 HarbourVest Global Private Equity Fund 133 0.05 3,654 Henderson Eurotrust 39 0.01 Investment Trusts – 3.25%; 5.4.2018 2.91% 10,101 Henderson Far East Income Fund 36 0.01 6,342 Aberdeen Asian Smaller Companies Investment Trust 66 0.02 36,089 Henderson International Income Trust 58 0.02 20,364 Aberdeen New Dawn Investment Trust 50 0.02 203,282 HICL Infrastructure 334 0.12 10,094 Aberdeen New India Investment Trust 47 0.02 26,338 Impax Environmental Markets 77 0.03 9,848 Aberforth Smaller Companies Investment Trust 123 0.04 2,567 International Biotechnology 16 0.01 34,097 Aberforth Split Level Income Trust 28 0.01 168,065 International Public Partnership 268 0.09 38,204 291 0.10 48,814 John Laing Environmental Assets 55 0.02 3,079 48 0.02 35,078 JP Morgan Global Convertibles Income Fund 31 0.01 12,481 Artemis Alpha Trust 35 0.01 8,418 JP Morgan Russian Securities 46 0.02 12,432 Baillie Gifford Japan Investment Trust 95 0.03 2,778 Jupiter US Smaller Companies 28 0.01 27,638 Baillie Gifford US Growth Trust 36 0.01 13,649 81 0.03 15,564 139 0.05 3,263 Lowland 44 0.02 46,110 BB Healthcare Trust 64 0.02 2,308 Montanaro European Smaller Companies Fund 21 0.01 32,504 Bioscience Investment Trust* – 0.00 6,914 NB Private Equity Partners Fund 76 0.03 6,308 Biotech Growth Trust 47 0.02 63,441 NextEnergy Solar Fund 76 0.03 28,993 BlackRock Frontiers Investment Trust** 39 0.01 8,475 P2P Global Investments 70 0.02 15,443 BlackRock Greater Europe Investment Trust** 54 0.02 5,703 Participations Fund 121 0.04 44,454 BlackRock Income Strategies Trust** 51 0.02 26,553 Pershing Square Holdings 358 0.13 5,564 BlackRock Latin American Investment Trust** 26 0.01 12,792 Polar Capital 28 0.01 11,905 BlackRock North American Income Trust** 21 0.01 2,892 Ranger Direct Lending 13 0.00 4,716 BlackRock Smaller Companies Trust** 65 0.02 146,672 Renewables Infrastructure 177 0.06 5,094 BlackRock Throgmorton Trust** 26 0.01 14,652 RIT Capital Partners 307 0.11 25,418 BlackRock World Mining Trust** 95 0.03 5,899 Riverstone Energy 55 0.02 12,708 British Empire Securities & General Investment Trust 93 0.03

29 ChariTrak Common Investment Fund ChariTrak Common Investment Fund 30 Portfolio Statement continued

Holding or Market % of Holding or Market % of Nominal Value Total Net Nominal Value Total Net Value Investment £000’s Assets Value Investment £000’s Assets

5,190 Brunner Investment Trust 40 0.01 13,429 JP Morgan European Investment Trust Growth Shares 37 0.01 18,690 CC Japan Income & Growth Trust 26 0.01 13,300 JP Morgan European Investment Trust Income Shares 20 0.01 21,570 City Merchants High Yield Trust 39 0.01 42,442 JP Morgan Global Emerging Markets Income Trust 56 0.02 38,170 City of London Investment Trust 161 0.06 11,943 JP Morgan Indian Investment Trust 87 0.03 59,358 Diverse Income Trust 55 0.02 17,254 JP Morgan Japanese Investment Trust 69 0.02 22,031 Dunedin Income Growth Investment Trust 58 0.02 10,748 JP Morgan Japanese Smaller Companies Investment Trust 40 0.01 16,066 Edinburgh Dragon Investment Trust 64 0.02 4,107 JP Morgan Mid Cap Investment Trust 44 0.02 22,221 Edinburgh Investment Trust 143 0.05 15,019 JP Morgan Overseas Investment Trust 48 0.02 37,595 Edinburgh Worldwide Investment Trust 70 0.02 13,490 JP Morgan Smaller Companies Investment Trust 28 0.01 5,432 Electra Investment Trust 18 0.01 11,346 Jupiter European Opportunities Trust 84 0.03 13,756 EP Global Opportunities Trust 43 0.02 2,116 Keystone Investment Trust 34 0.01 6,078 Euro Investment Trust 49 0.02 9,570 Majedie Investment Trust 25 0.01 16,260 F&C Capital & Income Investment Trust 52 0.02 15,386 Martin Currie Global Portfolio Investment Trust 42 0.02 66,766 F&C Investment Trust 469 0.17 2,663 Martin Currie Pacific Investment Trust 10 0.00 10,425 F&C Private Equity Trust 35 0.01 86,692 Mercantile Investment Trust 176 0.06 5,073 Fidelity Asian Values Investment Trust 22 0.01 14,090 Merchants Investment Trust 70 0.03 43,216 Fidelity China Special Situations Investment Trust 106 0.04 17,725 Middlefield Canadian Income Trust 16 0.01 43,673 Investment Trust 99 0.04 25,611 221 0.08 15,931 Fidelity Japanese Values Investment Trust 22 0.01 41,305 Montanaro UK Smaller Companies Investment Trust 45 0.02 18,662 Investment Trust 49 0.02 8,761 71 0.03 18,572 Finsbury Growth & Income Trust 157 0.06 14,822 Murray International Trust 174 0.06 2,763 Fundsmith Emerging Equities Trust 34 0.01 3,278 North American Income Trust 47 0.02 86,428 GCP Infrastructure Investments Fund 109 0.04 1,764 North Atlantic Smaller Companies Investment Trust 51 0.02 51,731 GCP Student Living 79 0.03 18,412 Pacific Assets Investment Trust 54 0.02 15,491 Genesis Emerging Markets Fund 114 0.04 5,712 Pacific Horizon Investment Trust 19 0.01 22,983 Govett Strategic Investment Trust* – 0.00 28,327 Perpetual Income & Growth Investment Trust 92 0.03 933 Hansa Trust 9 0.00 200 81 0.03 11,462 Henderson Diversified Income Trust 10 0.00 36,358 Polar Capital Global Financials Trust 47 0.02 1,989 Henderson European Investment Trust 23 0.01 16,027 Polar Capital Technology Trust 209 0.07 30,602 Henderson High Income Investment Trust 52 0.02 12,897 Princess Private Equity 106 0.04 7,321 Henderson Smaller Companies Investment Trust 62 0.02 16,775 Scottish American Investment Trust 65 0.02 12,024 Henderson Value Trust 32 0.01 7,376 Scottish Investment Trust 59 0.02 7,430 94 0.03 178,387 Scottish Mortgage Investment Trust 940 0.34 4,789 HG Capital Investment Trust 100 0.04 5,292 Scottish Oriental Smaller Companies Trust 52 0.02 8,346 ICG Enterprise Trust 70 0.03 11,178 Securities Trust of Scotland 19 0.01 5,388 Independent Investment Trust 30 0.01 8,536 Smithson Investment Trust 100 0.04 12,229 Invesco Asia Investment Trust 35 0.01 1,690 Standard Life Equity Income Trust 7 0.00 2,468 Invesco Income & Growth Investment Trust 7 0.00 11,612 Standard Life European Private Equity Trust 41 0.01 5,706 Invesco Perpetual UK Smaller Companies Investment Trust 28 0.01 8,969 Standard Life UK Smaller Companies Trust 41 0.01 24,112 JP Morgan American Investment Trust 107 0.04 7,370 Temple Bar Investment Trust 97 0.03 10,986 JP Morgan Asian Investment Trust 40 0.01 28,891 Templeton Emerging Markets Investment Trust 225 0.08 12,382 JP Morgan Chinese Investment Trust 36 0.01 4,915 TR European Growth Investment Trust 42 0.02 4,238 JP Morgan Claverhouse Investment Trust 31 0.01 38,611 TR Property Investment Trust 152 0.05 15,588 JP Morgan Emerging Markets Investment Trust 146 0.05 63,071 Troy Income & Growth Trust 50 0.02 16,235 JP Morgan Euro Smaller Companies Trust 58 0.02 13,203 Value & Income Investment Trust 33 0.01

31 ChariTrak Common Investment Fund ChariTrak Common Investment Fund 32 Portfolio Statement continued Statement of Total Return for the year ended 5 April 2019

Holding or Market % of For the year For the year Nominal Value Total Net to 5.4.2019 to 5.4.2018 Value Investment £000’s Assets Notes £000’s £000’s £000’s £000’s

19,923 210 0.07 Income 9,811 Witan Pacific Investment Trust 32 0.01 Net capital gains/(losses) 3 2,790 (1,836) 95,845 Woodford Patient Capital Trust 80 0.03 Revenue 4 14,600 18,114 6,091 Worldwide Healthcare Trust 167 0.06 Expenses 5 (250) (303) 9,137 3.25 Net revenue before taxation 14,350 17,811 Property Funds – 0.03%; 5.4.2018 0.03% Taxation 6 (121) (23) 5,035 ICG-Longbow Senior Secured UK Property Debt Investments 5 0.00 Net revenue after taxation 14,229 17,788 15,987 Macau Property Opportunities Fund 24 0.01 Total return before distributions 17,019 15,952 55,095 Picton Property Income Fund 50 0.02 Distributions 7 (14,229) (17,788) 79 0.03 Change in net assets Multi-Strategy Funds – 0.02%; 5.4.2018 0.01% attributable to unitholders 21,703 Highbridge Multistrategy Fund 46 0.02 from investment activities 2,790 (1,836) DERIVATIVES – 0.06%; 5.4.2018 0.01% Futures – 0.06%; 5.4.2018 0.01% 58 FTSE 100 Index June 2019 182 0.06 Statement of Change in Net Assets Attributable to Unitholders Forward Currency Contracts – 0.00%; 5.4.2018 0.00% for the year ended 5 April 2019 £384,123 UK sterling vs US dollar (3) 0.00 $503,000 US dollar vs UK sterling 6 0.00 For the year For the year 3 0.00 to 5.4.2019 to 5.4.2018 £000’s £000’s £000’s £000’s Portfolio of investments 278,986 99.43 Net other assets 1,604 0.57 Opening net assets attributable to unitholders 398,713 482,982 Total net assets 280,590 100.00 Amounts receivable on issue of units 7,870 30,306 Unless otherwise stated, all securities are either listed on a recognised exchange or traded on an eligible securities market. * Delisted investments fair valued at zero. Amounts payable on cancellation of units (131,358) (116,578) ** Managed by a related party. (123,488) (86,272) Stamp duty reserve tax – (4) Change in net assets attributable to unitholders from investment activities 2,790 (1,836) Retained distribution on accumulation units 2,575 3,843 Closing net assets attributable to unitholders 280,590 398,713

33 ChariTrak Common Investment Fund ChariTrak Common Investment Fund 34 Balance Sheet Notes to Financial Statements at 5 April 2019 for the year ended 5 April 2019

5.4.2019 5.4.2018 1. Accounting and Distribution Policies Notes £000’s £000’s Accounting Policies Assets: (a) The financial statements have been prepared in accordance with the Statement of Recommended Fixed assets Practice for Authorised Funds (the “SORP”) issued by the Investment Management Association (now known as the Investment Association) in May 2014 and amended in June 2017 as applicable to charity – Investment assets 278,989 396,225 common investment funds and Charities (Accounts & Reports) Regulations 2008. Current assets (b) Dividends on quoted ordinary shares and preference shares are recognised when the securities are – Debtors 8 2,271 2,689 quoted ex-dividend. Where such securities are not quoted, dividends are recognised when the right to – Cash and bank balances 9 2,200 3,146 receive payment is established. Total assets 283,460 402,060 All REIT dividend revenue is accounted for partly as revenue and partly as capital, depending on the Liabilities: underlying REIT distribution. Investment liabilities (3) – All distributions from Collective Investment Schemes (“CIS”) are recognised when the securities are Creditors quoted ex-dividend. All distributions from holdings in CIS are treated as revenue with the exception of the equalisation element, which is treated as capital. – Distribution payable (2,810) (3,294) All revenue is recognised as a gross amount that takes account of any withholding taxes but excludes any – Other creditors 10 (57) (53) other taxes such as attributable tax credits. Total liabilities (2,870) (3,347) Bank interest is recognised on an accruals basis. Net assets attributable to unitholders 280,590 398,713 The Fund receives Manager’s charge rebates from BlackRock related investments in the normal course of business. These are recognised on an accruals basis and are treated as revenue, unless it is the policy of the underlying fund to charge its fees to capital, in which case these rebates will be recognised as capital. W I Cullen (Director) A M Lawrence (Director) (c) Ordinary stock dividends are recognised wholly as revenue and are based on the market value of the BlackRock Fund Managers Limited shares on the date they are quoted ex-dividend. Where an enhancement is offered, the amount by which 28 May 2019 the market value of the shares (on the date they are quoted ex-dividend) exceeds the cash dividend is taken to capital. (d) The underlying circumstances behind both special dividends and share buy backs are reviewed on a case by case basis in determining whether the amount is revenue or capital in nature. Any tax treatment will follow the accounting treatment of the principal amount. (e) All expenses, except those relating to the purchase and sale of investments are charged against revenue. All expenses are recognised on an accruals basis. (f) The investments of the Fund have been valued at market value, defined as fair value, which is usually bid value at close of business on the last business day of the accounting period. In the case of an investment which is not quoted, listed or dealt in on a recognised market, or in respect of which a listed, traded or dealt price or quotation is not available at the time of valuation, the fair value of such investment shall be estimated with care and in good faith by a competent professional person, body, firm or corporation including the Manager’s pricing committee, and such fair value shall be determined on the basis of the probable realisation value of the investment. The Manager shall be entitled to adopt an alternative method of valuing any particular asset or liability if it considers that the methods of valuation set out above do not provide a fair valuation of a particular asset or liability. For derivatives (e.g. futures), market value is determined based on valuation pricing models which take into account relevant market inputs as well as the time values, liquidity and volatility factors underlying the positions. Amounts due to and from an individual counterparty which fall under a legally enforceable master netting agreement are netted.

35 ChariTrak Common Investment Fund ChariTrak Common Investment Fund 36 Notes to Financial Statements continued

Investments in dual priced CIS have been valued at market values, defined as fair value, which is usually The Manager has assigned a risk manager who has responsibility for the daily risk management process bid value at the closing valuation point of the underlying fund on the last business day of the accounting with assistance from key risk management personnel of the Investment Manager, including members of period. Investments in single priced CIS have been valued at market values, defined as fair value, which is the BlackRock Risk and Quantitative Analysis Group (“RQA Group”) which is a centralised group which usually the latest available price at the close of business on the last business day of the accounting period. performs an independent risk management function. The RQA Group independently identifies, measures (g) Any transactions in foreign currencies are translated into Sterling at the rates of exchange ruling on the and monitors investment risk. The RQA Group tracks the actual risk management practices being date of any such transaction. Assets and liabilities in foreign currencies are translated into Sterling at the deployed across the different funds. By breaking down the components of the process, the RQA Group exchange rates ruling at the close of business on the last business day of the accounting period. Revenue has the ability to determine if the appropriate risk management processes are in place for the Fund. This items in foreign currencies are translated into Sterling at the exchange rate when the revenue captures the risk management tools employed, how the levels of risk are controlled, ensuring risk/return is is received. considered in portfolio construction and reviewing outcomes. (h) Where appropriate, certain permitted financial instruments such as derivatives are used for efficient The principal risk exposure of the Fund is set out as follows: portfolio management. Where such financial instruments are used to protect or enhance revenue, the revenue and expenses derived therefrom are included in “Revenue” in the Statement of Total Return. a) Market risk Where such financial instruments are used to protect or enhance capital, the gains and losses derived Market risk arises mainly from uncertainty about future values of financial instruments influenced by other therefrom are included in “Net capital gains/(losses)” in the Statement of Total Return. price, currency and interest rate movements. It represents the potential loss the Fund may suffer through (i) Cash and bank balances consist of deposits held on call with banks and cash held with clearing brokers holding market positions in the face of market movements. The Fund is exposed to market risk by virtue of and counterparties. its investments in equities, investment funds, forward currency contracts and futures contracts. Distribution Policies A key metric the RQA Group use to measure market risk is Value-at-Risk (“VaR”) which encompasses price, currency and interest rate risk. VaR is a statistical risk measure that estimates the potential portfolio (j) The ordinary element of stock dividends is treated as revenue and forms part of the distribution. loss from adverse market movements in an ordinary market environment. VaR analysis reflects the (k) Special dividends and share buy backs recognised as revenue form part of the distribution. interdependencies between risk variables, unlike a traditional sensitivity analysis. (l) All of the net revenue available for distribution at the final accounting year end will be distributed to The VaR calculations are based on an adjusted historical simulation model with a confidence level of 99%, unitholders with the balance attributable to accumulation unitholders retained within the Fund. In order a holding period of one day and a historical observation period of not less than one year (250 days). A to conduct a controlled dividend flow to unitholders, interim distributions may be made at the Manager’s VaR number is defined at a specified probability and a specified time horizon. A 99% one day VaR means discretion, up to a maximum of the distributable revenue available for the period. Should expenses and that the expectation is that 99% of the time over a one day period the Fund will lose less than this number taxation together exceed revenue, there will be no distribution and the shortfall will be met from capital. in percentage terms. Therefore, higher VaR numbers indicate higher risk. 2. Financial Instruments and Risks It is noted that the use of the VaR methodology has limitations, namely that the use of historical market The Fund’s investment activities expose it to the various types of risk which are associated with the data as a basis for estimating future events does not encompass all possible scenarios, particularly those financial instruments and markets in which it invests. The following information is not intended to be a that are of an extreme nature and that the use of a specified confidence level (e.g. 99%) does not take comprehensive summary of all risks and investors should refer to the Scheme Particulars for a more into account losses that occur beyond this level. There is some probability that the loss could be greater detailed discussion of the risks inherent in investing in the Fund. than the VaR amounts. These limitations and the nature of the VaR measure mean that the Fund can Risk management framework neither guarantee that losses will not exceed the VaR amounts indicated, nor that losses in excess of the VaR amounts will not occur more frequently. The Manager has delegated the day-to-day administration of the investment programme to the Investment Manager. The Investment Manager is also responsible for ensuring that the Fund is managed within the The one day VaR as at 5 April 2019 and 5 April 2018 based on a 99% confidence level was 2.2% and terms of its investment guidelines and limits set out in the Scheme Particulars. The Manager reserves 1.5% respectively. to itself the investment performance, product risk monitoring and oversight and the responsibility for the monitoring and oversight of regulatory and operational risk for the Fund.

37 ChariTrak Common Investment Fund ChariTrak Common Investment Fund 38 Notes to Financial Statements continued i) Market risk arising from foreign currency risk Management of interest rate risk Exposure to foreign currency risk Interest rate risk exposure is managed by constantly monitoring the position for deviations outside a pre- Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will determined tolerance level and, when necessary, rebalancing back to the original desired parameters. fluctuate because of changes in foreign exchange rates. b) Counterparty credit risk Management of foreign currency risk Exposure to counterparty credit risk The net assets of the Fund are denominated mainly in Sterling, therefore the Balance Sheet and Statement Counterparty credit risk is the risk that one party to a financial instrument will cause a financial loss for the of Total Return are unlikely to be directly affected by currency movements. other party by failing to discharge an obligation. ii) Market risk arising from other price risk The Fund is exposed to counterparty credit risk from the parties with which it trades and will bear the risk Exposure to other price risk of settlement default. Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate Management of counterparty credit risk because of changes in market prices (other than those arising from interest rate risk or currency risk), Counterparty credit risk is monitored and managed by BlackRock’s RQA Counterparty & Concentration whether those changes are caused by factors specific to the individual financial instrument or its issuer, or Risk Team. The team is headed by BlackRock’s Chief Counterparty Credit Officer who reports directly to factors affecting similar financial instruments traded in the market. the Global Head of RQA. Credit authority resides with the Chief Counterparty Credit Officer and selected The Fund is exposed to other price risk arising from its investments. The exposure of the Fund to other team members to whom specific credit authority has been delegated. As such, counterparty approvals price risk is the market value of the investments held as shown in the portfolio statement of the Fund. may be granted by the Chief Counterparty Credit Officer or by identified RQA Credit Risk Officers who have been formally delegated authority by the Chief Counterparty Credit Officer as deemed appropriate. Management of other price risk The Investment Manager manages the Fund’s other price risk on a daily basis in accordance with the BlackRock’s RQA Counterparty & Concentration Risk Team completes a formal review of each new Fund’s investment objective. counterparty, monitors and reviews all approved counterparties on an ongoing basis and maintains an active oversight of counterparty exposures. By diversifying the portfolio, where this is appropriate and consistent with the Fund’s objectives, the risk that a price change of a particular investment will have a material impact on the Net Asset Value (“NAV”) The Manager maintains a list of approved counterparties. This list is regularly monitored and revised for of the Fund is minimised. The investment concentrations within the portfolio are disclosed in the portfolio changes based on the counterparty’s creditworthiness, market reputation and expectations of future statement by investment type. financial performance. Transactions will only be opened with financial intermediaries on the approved counterparties list. The other price risk inherent in holdings in CIS is monitored by the Investment Manager by understanding the investment objectives of the underlying funds as well as their internal control policies and regular risk i) Exchange Traded Financial Derivative Instruments and performance reporting. The Fund’s holdings in futures contracts expose the Fund to counterparty credit risk. iii) Market risk arising from interest rate risk Management of counterparty credit risk related to futures contracts Exposure to interest rate risk The exposure is limited by trading the contracts through a clearing house. The Fund’s exposure to Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate counterparty credit risk on contracts in which it currently has a gain position is reduced by such gains because of changes in market interest rates. received in cash from the counterparty under the daily mark-to market mechanism on exchange traded futures contracts (variation margin). The Fund’s exposure to credit risk on contracts in which it currently The Fund is exposed to interest rate risk on its cash and bank balances held at The Bank of New York has a loss position is equal to the amount of margin posted to the counterparty which has not been Mellon (International) Limited. Cash held on deposit at The Bank of New York Mellon (International) transferred to the exchange under the daily mark-to-market mechanism. The counterparty for futures Limited receives/incurs interest at the prevailing daily rate which may be negative depending on the contracts is Barclays. currency in which the cash is held. Margin is paid or received on futures to cover any exposure by the counterparty or the Fund to each The Fund also has indirect exposure to interest rate risk through its investments into CIS, whereby the other. Margin receivable from the Fund’s clearing brokers and various counterparties is included in “Cash value of the underlying asset may fluctuate as a result of a change in interest rates and through its and bank balances” on the Balance Sheet. Margin payable to the Fund’s clearing brokers and various investment in futures contracts, whereby the value of an underlying fund may fluctuate as a result of a counterparties is included in “Amounts held at futures clearing houses and brokers” on the Balance Sheet. change in interest rates through their investments in interest-bearing securities.

At 5 April 2019, and 5 April 2018, no interest bearing investments were held by the Fund, hence no interest rate risk exposure table has been presented.

39 ChariTrak Common Investment Fund ChariTrak Common Investment Fund 40 Notes to Financial Statements continued ii) Over-the-Counter (“OTC”) Financial Derivative Instruments (“FDIs”) iii) Trustee and Custodian The Fund’s holdings in forward currency contracts also expose the Fund to counterparty credit risk. The Fund’s Trustee and Custodian is The Bank of New York Mellon (International) Limited (the “Trustee” and “Custodian”). The Fund’s maximum exposure to counterparty credit risk from holding forward currency contracts will be equal to the notional amount of the currency and any net unrealised gains or losses as disclosed in the The Trustee is liable to the Fund for the loss of financial instruments of the Fund which are held in portfolio statement. custody as part of the Trustee’s safekeeping function. The liability of the Trustee will not be affected by the fact that it has entrusted the safekeeping function to the Custodian save where this liability is The carrying value of financial assets together with cash best represents the Fund’s gross maximum lawfully discharged to a delegate (any such discharge will be notified to unitholders) or where the loss exposure to counterparty credit risk at the reporting date, before including the effect of ISDA Master of financial instruments arises as a result of an external event beyond reasonable control as provided for Agreements and close-out netting, which would reduce the overall counterparty credit risk exposure. under AIFMD. The Trustee will not be indemnified out of the assets of the Fund for the loss of financial Cash held as security by the counterparty to derivative contracts is subject to the credit risk of the instruments where it is so liable. Substantially all of the investments other than FDIs of the Fund are held counterparty. by the Custodian at year end.

Management of counterparty credit risk related to OTC FDIs Investments are segregated from the assets of the Custodian, with ownership rights remaining with Forward currency contracts do not require variation margin and thus the counterparty credit risk is the Fund. Bankruptcy or insolvency of the Custodian may cause the Fund’s rights with respect to its monitored through the BlackRock RQA Counterparty & Concentration Risk Team which monitors the investments held by the Custodian to be delayed or limited. The maximum exposure to this risk is the creditworthiness of the counterparty. total amount of equity and bond investments disclosed in the portfolio statement.

The lowest credit rating of any one counterparty is A (5 April 2018: A+) (Standard & Poor’s rating). The Fund will be exposed to the credit risk of the Custodian, or any depositary used by the Trustee regarding cash balances held in accounts with same. In the event of insolvency or bankruptcy of the The following tables detail the number of counterparties the Fund is exposed to and the maximum Custodian or any depositary used by the Trustee, the Fund will be treated as a general creditor of the exposure (which is calculated on a net basis) to any one counterparty. Trustee.

5 April 2019 Management of counterparty credit risk related to the Trustee and Custodian To mitigate the Fund’s credit risk with respect to the Trustee, the Investment Manager of the Fund employs Total Forwards Exposure specific procedures to ensure that the Trustee employed is a reputable institution and that the associated Counterparty £000’s £000’s credit risk is acceptable to the Fund. The Fund only transacts with counterparties that are regulated entities subject to prudential supervision, or with high credit-ratings assigned by international credit-rating BNP Paribas Arbitrage SNC 6 6 agencies. State Street Global Advisors (3) (3) The long term credit rating of the parent company of the Trustee and Custodian, The Bank of New York 5 April 2018 Mellon Corporation, as at 5 April 2019 was A (5 April 2018: A) (Standard & Poor’s rating).

Total iv) Counterparties Forwards Exposure All transactions in listed securities are settled/paid for upon delivery using approved brokers. The risk of Counterparty £000’s £000’s default is considered minimal, as delivery of securities sold is only made once the broker has received Morgan Stanley & Co. International Plc –^ –^ payment. Payment is made on a purchase once the securities have been received by the broker. The trade will fail if either party fails to meet its obligation. ^ Amounts less than £500 are rounded to zero. Counterparty credit risk arising on transactions with brokers relates to transactions awaiting settlement. Risk relating to unsettled transactions is considered small due to the short settlement period involved and the high credit quality of the brokers used.

Management of counterparty credit risk related to counterparties The Manager monitors the credit rating and financial position of the brokers used to further mitigate this risk.

41 ChariTrak Common Investment Fund ChariTrak Common Investment Fund 42 Notes to Financial Statements continued c) Liquidity risk Level 3 – Valuation techniques using significant unobservable inputs Exposure to liquidity risk This category includes all instruments where the valuation techniques used include inputs not based on Liquidity risk is the risk that the Fund will encounter difficulties in meeting its obligations associated with market data and these inputs could have a significant impact on the instrument’s valuation. financial liabilities. This category also includes instruments that are valued based on quoted prices for similar instruments Liquidity risk to the Fund arises from the redemption requests of unitholders and the liquidity of the where significant entity determined adjustments or assumptions are required to reflect differences underlying investments the Fund is invested in. The Fund’s unitholders may redeem their units on the between the instruments and instruments for which there is no active market. close of any daily dealing deadline for cash equal to a proportionate share of the Fund’s NAV. The Fund is The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety therefore potentially exposed to the liquidity risk of meeting the unitholders’ redemptions and may need to is determined on the basis of the lowest level input that is significant to the fair value measurement in its sell assets at prevailing market prices to meet liquidity demands. entirety. For this purpose, the significance of an input is assessed against the fair value measurement in The Fund is also exposed to the liquidity risk of daily margin calls on derivatives. its entirety. If a fair value measurement uses observable inputs that require significant adjustment based on unobservable inputs, that measurement is a level 3 measurement. All non-derivative financial liabilities including distributions payable held by the Fund as at 5 April 2019 and 5 April 2018, based on contractual maturities, fall due within one to three months. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgement, considering factors specific to the asset or liability. The determination of what constitutes Management of liquidity risk ‘observable’ inputs requires significant judgement by the Investment Manager. The Investment Manager Liquidity risk is minimised by holding sufficient liquid investments which can be readily realised to meet considers observable inputs to be that market data that is readily available, regularly distributed or liquidity demands. updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market. This will therefore allow the Manager to protect the interests of continuing unitholders by allowing the Manager to match the sale of scheme property to the level of redemptions. This should reduce the The table below is an analysis of the Fund’s investment assets and investment liabilities measured at fair impact of dilution on the Fund. All unitholders who have sought to redeem units at any valuation point at value at the Balance Sheet date. which redemptions are deferred will be treated consistently and any redemption requests received in the meantime will not be processed until the redemption requests that have been deferred to the subsequent Level 1 Level 2 Level 3 Total valuation points have been processed. £000’s £000’s £000’s £000’s

The Fund’s liquidity risk is managed on a daily basis by the Investment Manager in accordance with 5 April 2019 established policies and procedures in place. The portfolio managers review daily forward looking cash Investment assets 278,983 6 – 278,989 reports which project cash obligations. These reports allow them to manage the Fund’s cash obligations. Investment liabilities – (3) – (3) d) Valuation of financial instruments 5 April 2018 The Fund classifies financial instruments measured at fair value using a fair value hierarchy. The fair value hierarchy has the following categories: Investment assets 396,225 – – 396,225 Investment liabilities – – – – Level 1 – Unadjusted quoted prices for identical instruments in active markets A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly Securities with a value less than £500 are not disclosed in the table above. These securities are identified available and those prices represent actual and regularly occurring market transactions on an arm’s on the portfolio statement. length basis. The Fund does not adjust the quoted price for these instruments.

Level 2 – Valuation techniques using observable inputs other than quoted prices in level 1 This category includes instruments valued using quoted prices in active markets for similar instruments; quoted prices for similar instruments in markets that are considered less than active; or other valuation techniques where all significant inputs are directly or indirectly observable from market data.

Valuation techniques used for non-standardised financial instruments such as OTC derivatives, include the use of comparable recent arm’s length transactions, reference to other instruments that are substantially the same, discounted cash flow analysis, option pricing models and other valuation techniques commonly used by market participants making the maximum use of market inputs and relying as little as possible on entity determined inputs.

43 ChariTrak Common Investment Fund ChariTrak Common Investment Fund 44 Notes to Financial Statements continued e) Leverage 4. Revenue The Fund may employ leverage and borrow cash in accordance with their stated investment policy or For the year For the year investment strategy. The Fund may employ leverage in their investment programmes through various to 5.4.2019 to 5.4.2018 means including the use of FDIs. £000’s £000’s The use of borrowings and leverage has associated risks and can, in certain circumstances, substantially Equity distributions on CIS holdings 20 13 increase the adverse impact to which the Fund’s investment portfolio may be subject. Interest distributions on CIS holdings 11 3 For the purposes of this disclosure, leverage is any method by which the Fund’s exposure is increased, Interest from UK bank deposits 17 3 whether through borrowing of cash or securities, or leverage embedded in derivative positions, or by any Interest on balances held at futures clearing houses and brokers 1 – other means. The AIFMD requires that each leverage ratio be expressed as the ratio between a Fund’s Manager’s charge rebates 1 1 exposure and its NAV and prescribes two required methodologies, the gross methodology and the Overseas dividends 2,004 1,518 commitment methodology, for calculating such exposure using the methodologies prescribed under the AIFMD, the leverage of the Fund are disclosed in the table below. Stock dividends – 984 UK dividends 12,271 15,271 Gross exposure Commitment exposure UK REIT dividends 275 321

Leverage as Leverage as Leverage as Leverage as Total revenue 14,600 18,114 Maximum limit at 5.4.2019 at 5.4.2018 Maximum limit at 5.4.2019 at 5.4.2018 1.1:1 1.0:1 1.0:1 1.1:1 1.0:1 1.0:1 5. Expenses

For the year For the year The maximum level of leverage which the Fund, or the Manager on the Fund’s behalf, is permitted to use to 5.4.2019 to 5.4.2018 as part of the Fund’s investment strategies is set out in the Scheme Particulars and in the above table. £000’s £000’s Payable to the Manager or associates of the Manager: 3. Net Capital Gains/(Losses) – Manager’s charge 211 254 For the year For the year 211 254 to 5.4.2019 to 5.4.2018 £000’s £000’s Other expenses: The net capital gains/(losses) comprise: – Audit fee 4 4 Gains/(losses) on non derivative securities 2,741 (2,025) – Trustee’s fees 35 45 Gains on derivative securities 32 171 39 49 Currency gains 15 14 Total expenses 250 303 Manager’s charge rebates 2 4 6. Taxation Net capital gains/(losses) 2,790 (1,836) Analysis of tax charge Net gains (excluding Manager’s charge rebates) listed above of £2,788,000 comprise net realised gains of £29,667,000 and net unrealised losses of £(26,879,000) (5 April 2018: £(1,840,000) comprising of net realised gains of £33,132,000 and net unrealised losses of £(34,972,000)). Certain realised gains and losses in the current year were unrealised in the prior year. For the year For the year to 5.4.2019 to 5.4.2018 £000’s £000’s Overseas tax 121 23 Total tax charge 121 23

45 ChariTrak Common Investment Fund ChariTrak Common Investment Fund 46 Notes to Financial Statements continued

7. Distributions 11. Contingent Assets and Liabilities There were no contingent assets or liabilities at the Balance Sheet date (5 April 2018: Nil). For the year For the year to 5.4.2019 to 5.4.2018 £000’s £000’s 12. Efficient Portfolio Management Techniques First distribution 4,396 5,778 The Fund may engage in derivative transactions for the purposes of efficient portfolio management. Second distribution 4,303 5,091 There were no securities on loan or related collateral outstanding at the Balance Sheet date (5 April 2018: Third distribution 1,880 2,599 Nil). Final distribution 3,203 4,157 13. Related Parties 13,782 17,625 Parties are considered to be related if one party has the ability to control the other party or exercise Amounts deducted on cancellation of units 521 267 significant influence over the other party in making financial or operational decisions. Amounts receivable on issue of units (74) (104) The following entities were related parties of the Fund during the year ended 5 April 2019: Distributions 14,229 17,788 Manager/Registrar: BlackRock Fund Managers Limited Details of the all distributions per unit are set out in the tables on page 10. Investment Manager: BlackRock Advisors (UK) Limited

8. Debtors The ultimate holding company of the Manager, Registrar and Investment Manager is BlackRock. PNC Financial Services Group Inc. (“PNC”) is a substantial shareholder in BlackRock Inc. PNC did not provide 5.4.2019 5.4.2018 any services to the Fund during the years ended 5 April 2019 and 5 April 2018. £000’s £000’s Accrued Manager’s charge rebates 1 1 The Manager acts as either principal or agent for the Trustee in respect of all transactions of units of the Fund. The aggregate monies received through creation and paid through cancellation of units are Accrued revenue 2,068 2,440 disclosed in the Statement of Change in Net Assets Attributable to Unitholders and note 7. Any amounts Overseas tax recoverable 202 178 due to or from the Manager at the year end are disclosed in notes 8 and 10. Management fees paid to Sales awaiting settlement – 70 the Manager are shown in note 5. The balances due at the year end in respect of these fees are shown in Total debtors 2,271 2,689 Note 10. Management fee rebates received from BlackRock Fund Managers Limited are shown in notes 3 and 4 with the balances due at year end in respect of these rebates shown in note 8.

9. Cash and Bank Balances The Investment Manager, in accordance with the Scheme Particulars, may enter into commission sharing arrangements with related parties (including, without limitation, brokers who are affiliated to the BlackRock 5.4.2019 5.4.2018 Group), which may result in the Fund benefiting from research or execution services which the Investment £000’s £000’s Manager believes are useful in the investment decision-making or trade execution process. Such research Amounts held at futures clearing houses and brokers 38 340 or execution services may include, without limitation and to the extent permitted by applicable law: Cash and bank balances 2,162 2,806 research reports on companies, industries and securities; and the provision of economic and financial Total cash and bank balances 2,200 3,146 information and analysis. Due to the bundled nature of these services and the application of such benefits across a number of BlackRock managed funds, it is not feasible to quantify the benefit to the Fund. The 10. Other Creditors Investment Manager may also enter into these arrangements with brokers who are not affiliated to the BlackRock Group. 5.4.2019 5.4.2018 £000’s £000’s Accrued Audit fee 4 4 Accrued Manager’s charge 43 41 Accrued Trustee’s fee 7 8 Purchases awaiting settlement 3 – Total other creditors 57 53

47 ChariTrak Common Investment Fund ChariTrak Common Investment Fund 48 Notes to Financial Statements continued

13. Related Parties continued 14. Portfolio Transaction Costs continued The Fund may invest in other CIS, which may or may not be operated and/or managed by an affiliate For the year ended 5 April 2018 of the Manager. As an investor in such other CIS, in addition to the fees, costs and expenses payable by a unitholder in the Funds, each unitholder may also indirectly bear a portion of the fees, costs and Direct Transaction Costs expenses of the underlying CIS, including management, investment management and administration and Transaction Value Commissions Taxes other expenses. However, in respect of investments made in any other investment fund whose manager Purchases (excluding derivatives) £000’s £000’s % £000’s % is an affiliate of the Manager, the Fund will invest, where possible, in classes of the underlying funds Equity instruments 30,320 5 0.02 4 0.01 which are not subject to any management charges. Alternatively, where this is not possible, the Manager Collective investment schemes 3,118 1 0.02 – – will rebate management charges to the Fund. The Fund will not be subject to any preliminary/initial sales Total purchases 33,438 6 4 fee in respect of investments made in any other investment fund whose manager is an affiliate of the Manager, although it may be subject to duties and charges in respect of subscriptions and redemptions Total purchases including in such investment funds. transaction costs 33,448

As at 5 April 2019 and 5 April 2018, none of the unitholders: Direct Transaction Costs (i) are funds managed by the BlackRock Group or are affiliates of BlackRock Inc. or Transaction Value Commissions Taxes (ii) are investors, other than those included in (i) above, who held 51% or more of the voting units in issue Sales (excluding derivatives) £000’s £000’s % £000’s % in the Fund and are as a result, considered to be related parties to the Funds. Equity instruments 110,778 20 0.02 1 0.00 Collective investment schemes 6,199 3 0.05 – – 14. Portfolio Transaction Costs Total sales 116,977 23 1 For the year ended 5 April 2019 Total sales net of transaction costs 116,953 Direct Transaction Costs

Transaction Value Commissions Taxes Derivative transaction costs 2 – Purchases (excluding derivatives) £000’s £000’s % £000’s % Total transaction costs 31 5 Equity instruments 12,592 2 0.02 1 0.01 Collective investment schemes 413 – – – – Total transaction costs Total purchases 13,005 2 1 as a % of average net assets 0.01% 0.00%

Total purchases including transaction costs 13,008 The above analysis covers any direct transaction costs suffered by the Fund during the year. However it is important to understand the nature of other transaction costs associated with different investment asset classes and instruments types. Direct Transaction Costs Separately identifiable direct transaction costs (commissions & taxes etc) are attributable to the Fund’s Transaction Value Commissions Taxes purchase and sale of equity shares. Additionally for equity shares there is a dealing spread cost Sales (excluding derivatives) £000’s £000’s % £000’s % (the difference between the buying and selling prices) which will be suffered on purchase and sale Equity instruments 127,710 26 0.02 1 0.00 transactions. Collective investment schemes 5,067 2 0.04 – – For the Fund’s investment in collective investment scheme holdings there will potentially be dealing spread Total sales 132,777 28 1 costs applicable to purchases and sales. However additionally there are indirect transaction costs suffered Total sales net of transaction in those underlying funds, throughout the holding period for the instruments, which are not separately costs 132,748 identifiable and do not form part of the analysis above.

Derivative transaction costs 2 –

Total transaction costs 32 2

Total transaction costs as a % of average net assets 0.01% 0.00%

49 ChariTrak Common Investment Fund ChariTrak Common Investment Fund 50 Notes to Financial Statements continued Statement of Manager’s and Trustee’s Responsibilities

14. Portfolio Transaction Costs continued The Manager is responsible for keeping such accounting records as are necessary to enable it to prepare During the year the Fund utilised derivative instruments including futures covering different underlying the financial statements for the Fund for each financial year. These financial statements must be prepared asset classes. The settlement values for opening and closing derivative positions are not comparable to in accordance with generally accepted accounting principles to give a true and fair view of the state of principal values for transactions in direct holding investments and therefore purchase and sale amounts affairs of the Fund at the year end and of the revenue for the year. The financial statements must comply for derivative transactions are not quantified in the analysis above. Transaction costs for derivatives with the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 (“the Regulations”), positions will be either suffered as direct costs or form part of the dealing spread for the instruments. the Scheme and, where relevant, should comply with the disclosure requirements of the current Statement Any direct costs are identified in the analysis above. of Recommended Practice for Authorised Funds issued by the Investment Management Association (subsequently The Investment Association). Dealing spread costs suffered by the Fund vary considerably for the different asset/instrument types depending on a number of factors including transaction value and market sentiment. The Manager’s duties and powers also include: instructing the Trustee on the cancellation of units; carrying At the Balance Sheet date the average portfolio dealing spread (difference between bid and offer prices out regular valuations of the Fund’s property and ensuring that units issued by the Fund are correctly priced; of all investments expressed as a percentage of the offer price value) was 0.10% (5 April 2018: 0.10%). maintaining daily records of units purchased by the Manager or sold on behalf of the Trustee; and appointing the auditor of the Fund. The Manager is responsible for managing the investments of the Fund. The Manager 15. Units in Issue has delegated certain functions with respect to the portfolio management of the assets of the Fund, the performance of certain risk management functions and the distribution of units to the Investment Manager, The movement in units in issue for the year ended 5 April 2019 is as follows: BlackRock Advisors (UK) Limited. In addition, the Manager is required to make available all of the Manager’s A Income A Accumulation X Income X Accumulation records relating to the Fund for inspection by the Trustee. Units Units Units Units Balance at the beginning of the year 13,462,832 1,571,443 121,093,863 35,250,875 Under the Scheme, the Trustee is responsible amongst other things for the custody and control of the property of the Fund, the collection of all income due to the Fund, and the claiming of any repayment of tax which may Issued during the year 548,569 3,229 50,011 – be due. The Trustee may create and cancel units in accordance with the instructions of the Manager (except Cancelled during the year (3,050,146) (1,159,289) (38,242,020) (17,910,448) where not permitted to by the Scheme Particulars). The Trustee will make distributions and allocations of Balance at the end of the year 10,961,255 415,383 82,901,854 17,340,427 income to unitholders as applicable.

Revenue is allocated each day pro rata to the capital value of assets attributable to each class and The Trustee acts as the depositary of the Fund and, in doing so, shall comply with the terms of the Scheme taxation is computed by reference to the net revenue after expenses attributable to each class. The and the provisions of the AIFMD. distribution per unit class is given in the distribution table. All unit classes have the same rights on winding up. The Trustee has delegated certain safekeeping functions to The Bank of New York Mellon (International) Limited. 16. Post Balance Sheet Events There have been no significant events subsequent to the year end, which, in the opinion of the Manager, The Trustee also has the duty of supervision and oversight of the Manager’s compliance with the Scheme may have had an impact on the financial statements for the year ended 5 April 2019. and the Scheme Particulars. In particular, the Trustee must be satisfied that the Manager is not exceeding his powers and that the Manager is maintaining adequate and proper records.

The Trustee is required to take all steps and execute all documents which are necessary to secure that purchases and sales of investments of the Fund are properly completed, and is required to exercise voting rights attaching to such investments as properly instructed by the Manager.

The Trustee is responsible for the appointment of the Registrar and for the supervision and oversight of the Registrar. The Trustee is responsible for supervision and oversight of any delegate which it appoints. The Trustee is responsible for the appointment and dismissal of persons engaged by the Trustee in connection with the Fund, for the making of an Annual Report on the discharge of its responsibilities for the management of the Fund. The Trustee is responsible for the winding up of the Fund.

51 ChariTrak Common Investment Fund ChariTrak Common Investment Fund 52 Statement of Manager’s and Trustee’s Responsibilities continued

Under the Regulations, the Trustee has a duty to enquire into the conduct of the Manager in the management of the Fund in each accounting year and to report thereon to unitholders. A copy of the Trustee’s report is set out below. Independent Auditor’s Report to the charity trustees of ChariTrak Common Investment Fund The Fund requires that annual reports, including audited financial statements, are sent to the Charity We have audited the financial statements of ChariTrak Common Investment Fund (“the Fund”) Commission and to all participants in the Fund. for the year ended 5 April 2019 which comprise the Statement of Total Return, the Statement of Change in Net Assets attributable to unitholders, Balance Sheet, Distribution Tables and the related notes 1 to 16, including a summary of significant accounting policies. The financial Report of the Trustee reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including FRS 102 “The Financial Reporting standard applicable in the UK and Republic of To the Unitholders of the ChariTrak Common Investment Fund Ireland”.

We confirm that in the Trustee’s opinion, the Manager has managed the Fund in all material respects in In our opinion the financial statements: accordance with the limitations imposed on the investment and borrowing powers of the Manager and Trustee by the Scheme and by the Scheme Particulars, and otherwise in accordance with the provisions of the • give a true and fair view of the state of the financial position of the Fund as at 5 April 2019 Scheme and the Scheme Particulars. and of the net revenue and the net gains on the scheme property of the Fund for the year then ended; • have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and • have been prepared in accordance with the requirements of the Charities Act 2011.

The Bank of New York Mellon London Basis for opinion (International) Limited 28 May 2019 We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report below. We are independent of the Fund in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

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

Conclusions relating to going concern We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

• the manager’s use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or • the manager has not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Fund’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

53 ChariTrak Common Investment Fund ChariTrak Common Investment Fund 54 Other information Auditor’s responsibilities for the audit of the financial statements The other information comprises the information included in the annual report, other than We have been appointed as auditor under section 144 of the Charities Act 2011 and report in the financial statements and our auditor’s report thereon. The manager is responsible for accordance with the Act and relevant regulations made or having effect thereunder. the other information. Our objectives are to obtain reasonable assurance about whether the financial statements as Our opinion on the financial statements does not cover the other information and we do not a whole are free from material misstatement, whether due to fraud or error, and to issue an express any form of assurance conclusion thereon. auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect In connection with our audit of the financial statements, our responsibility is to read the other a material misstatement when it exists. Misstatements can arise from fraud or error and are information and, in doing so, consider whether the other information is materially inconsistent considered material if, individually or in the aggregate, they could reasonably be expected to with the financial statements or our knowledge obtained in the audit or otherwise appears influence the economic decisions of users taken on the basis of these financial statements. to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the A further description of our responsibilities for the audit of the financial statements is located on financial statements or a material misstatement of the other information. If, based on the work the Financial Reporting Council’s website at https://www.frc.org.uk/auditorsresponsibilities. This |we have performed, we conclude that there is a material misstatement of the other information, description forms part of our auditor’s report. we are required to report that fact. Use of our report We have nothing to report in this regard. This report is made solely to the charity’s Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so Matters on which we are required to report by exception that we might state to the Fund’s charity trustees those matters we are required to state to them We have nothing to report in respect of the following matters where the Charities (Accounts and in an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not Reports) Regulations 2008 require us to report to you if, in our opinion: accept or assume responsibility to anyone other than the Fund and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed. • the information given in the Annual Report is inconsistent in any material respect with the financial statements; or • sufficient accounting records have not been kept; or • the financial statements are not in agreement with the accounting records and returns; or • we have not received all the information and explanations we require for our audit.

Responsibilities of Manager As explained more fully in the manager’s responsibilities statement set out on page 52 Ernst & Young LLP London and 53, the manager is responsible for the preparation of the financial statements and for Statutory Auditor 28 May 2019 being satisfied that they give a true and fair view, and for such internal control as the manager determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Ernst & Young LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006. In preparing the financial statements, the manager is responsible for assessing the Fund’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Fund or to cease operations, or has no realistic alternative but to do so.

55 ChariTrak Common Investment Fund ChariTrak Common Investment Fund 56 About us

BlackRock is a premier provider of asset management, risk management, and advisory services to institutional, intermediary, and individual clients worldwide. As of 31 March 2019, the fi rm manages £4.99 trillion across asset classes in separate accounts, mutual funds, other pooled investment vehicles, and the industry-leading iShares® exchange-traded funds.

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