Quilter Investors Portfolio OEIC

Interim Report and Financial Statements (unaudited) For the period from 1 January 2020 to 30 June 2020

Contents Page

Company Information 3

Authorised Corporate Director's report 4

Statement of the Authorised Corporate Director’s responsibilities 5

Quilter Investors Diversified Portfolio 6

Investment Manager's review 6 Performance record 7 Portfolio Statement 9 Statement of total return 13 Statement of change in net assets attributable to shareholders 13 Balance sheet 14 Notes to the financial statements 15 Distribution table 16

Quilter Investors Portfolio OEIC

Company Information

Authorised Corporate Director (“ACD”) and Alternative Investment Fund Manager (“AIFM”) Directors of the ACD and AIFM Quilter Investors Limited D Bowden (appointed 9 March 2020) Millennium Bridge House P Simpson 2 Lambeth Hill S Fromson – Non-Executive Director (appointed 1 August 2020) London J Little – Non-Executive Director EC4V 4AJ R Skelt – Non-Executive Director (appointed 1 March 2020) C Turner – Non-Executive Director (resigned 14 May 2020) Authorised and regulated by the Financial Conduct Authority.

Depositary Citibank Europe plc, UK Branch Citigroup Centre Canada Square Canary Wharf London E14 5LB Authorised by the Central Bank of Ireland and the Prudential Regulation Authority and subject to limited regulation by the Financial Conduct Authority and the Prudential Regulation Authority.

Legal Adviser Macfarlanes LLP 20 Cursitor Street London EC4A 1LT

Independent Auditor PricewaterhouseCoopers LLP 141 Bothwell Street Glasgow G2 7EQ

Administrator Citibank Europe plc 1, North Wall Quay Dublin 1 Ireland

Authorised by the Central Bank of Ireland (Central Bank) under the Investment Intermediaries Act 1995.

Registrar SS&C Financial Services International Limited & SS&C Financial Services Europe Limited (formerly DST Financial Services International Limited & DST Financial Services Europe Limited, respectively) SS&C House Saint Nicholas Lane Basildon Essex SS15 5FS

The register of shareholders can be inspected at the above address.

Quilter Investors Limited, a member of the Quilter plc Group of companies, is authorised and regulated by the Financial Conduct Authority. FCA Register number 208543. Registered Office: Millennium Bridge House, 2 Lambeth Hill, London, EC4V 4AJ, United Kingdom. Registered Number: 4227837 England. www.quilterinvestors.com 3 Quilter Investors Portfolio OEIC

Quilter Investors Portfolio OEIC

Authorised Corporate Director’s report

Directors’ report The Directors present the report and financial statements for Quilter Investors Portfolio OEIC (the “Company”) for the period from 1 January 2020 to 30 June 2020.

Authorised status

The Company is an Open-Ended Investment Company incorporated as an Investment Company with Variable Capital (“ICVC”) under Regulation 12 (authorisation) of the Open-Ended Investment Companies Regulations 2001 (SI 2001/1228) (the “OEIC Regulations”). It is incorporated in England and Wales and authorised by the Financial Conduct Authority under the OEIC Regulations and the Financial Conduct Authority’s Collective Investment Schemes Sourcebook (“the COLL Sourcebook”). The Company is a non-UCITS retail scheme for the purposes of the COLL Sourcebook and an umbrella scheme. The Company is also an Alternative Investment Fund for the purposes of the Alternative Investment Fund Managers Directive 2011/61/EU (“AIFMD”). Liability The Company is under the “Protected cell” regime. As such each sub-fund has a specific portfolio of securities to which that sub-fund’s assets and liabilities are attributable. So far as investors are concerned each sub-fund will be treated as a separate entity. The assets of a sub-fund shall not be used or made available to discharge (directly or indirectly) the liabilities of, or claims against, any other person or body, including the Company and any other sub-fund and shall not be available for any such purpose.

Director changes

Richard Skelt appointed as a Non-Executive Director of the ACD effective 1 March 2020.

Dean Bowden appointed as a Director of the ACD effective 9 March 2020.

Catherine Turner resigned as a Non-Executive Director of the ACD effective 14 May 2020.

Sarah Fromson appointed as a Non-Executive Director of the ACD effective 1 August 2020. Company changes During the period, the Company changed from a single standalone fund to an umbrella structure with effect from 11 March 2020. On this date the Company was renamed from Quilter Investors Diversified Portfolio to Quilter Investors Portfolio OEIC.

Significant event At this time, COVID-19 has been recognised by the World Health Organisation as a global pandemic, therefore this will impact global supply chains, global market growth and employee availability over the next few years. The Company may be adversely impacted by falls in equity market levels, adverse investor sentiment affecting revenue and increased operational risks depending on the extent of employment availability. The length and severity of the impact from COVID-19 remains a clear risk, although the Company would not expect this to materially change the underlying long-term prospects and going concern basis of the Company.

Assessment of value The COLL Sourcebook requires the ACD to conduct an “assessment of value” at least annually for the sub-fund in the Company which includes, amongst other things, (i) an assessment of whether the payments out of scheme property set out in the prospectus are justified in the context of the overall value delivered to shareholders; (ii) an assessment of the range and quality of services provided to shareholders; (iii) an assessment of performance over an appropriate timescale and (iv) an assessment of comparable market rates for the services provided by the ACD. The ACD's assessment of value of the sub-fund in the Company as at 31 March 2020 has been published and is available on the ACD's website at https://www.quilterinvestors.com/siteassets/documents/legal/assessment-of-value-report-2020-for-multi-asset-portfolio-solutions.pdf..

Additional information The Company’s Registrar, DST, changed its name to SS&C with effect from 31 March 2020, as detailed in the Company Information section on page 3. PricewaterhouseCoopers LLP replaced KPMG LLP as Auditor of the Company with effect from 11 May 2020. These financial statements have been prepared in accordance with the Statement of Recommended Practice (SORP) for Authorised Funds issued by the Investment Management Association in May 2014. The Company is an umbrella scheme which complies with the COLL Sourcebook and as at 30 June 2020 had one sub-fund (listed below). Additional sub-funds may be launched in the future.

Sub-fund name Launch date Quilter Investors Diversified Portfolio 13 February 2003 In accordance with the requirements of the Financial Services and Market Act 2000, we hereby certify these financial statements on behalf of the ACD.

P Simpson D Bowden For and on behalf of Quilter Investors Limited For and on behalf of Quilter Investor Limited Director Director

28 August 2020 28 August 2020

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Authorised Corporate Director’s Report (continued)

The purpose of this report is to provide details of the progress of the Company, and the sub-fund contained within. The report provides details of the performance and the portfolio of the sub-fund. Net asset value of sub-fund 30 June 2020 31 December 2019 Net asset Net asset value of Shares Net asset value of Shares Net asset

sub-fund by in value pence sub-fund by in value pence share class issue per share share class issue per share Quilter Investors Portfolio OEIC - Accumulation 'A' £48,918,513 49,561,464 98.70 £56,778,623 53,273,663 106.58 - Accumulation 'R' £421,436,764 71,518,063 589.27 £473,214,949 74,592,134 634.40

Securities Financing Transactions Regulation Disclosure The Company does not currently undertake securities financing transactions (as defined in Article 3 of Regulation (EU) 2015/2365) or use total return swaps. Statement of the Authorised Corporate Director’s responsibilities The COLL Sourcebook requires the ACD to prepare financial statements for each annual and semi-annual accounting period which give a true and fair view of the financial position of the Company and of the net revenue and net capital gains or losses on the property of the Company for the period. In preparing the financial statements the ACD is responsible for: • selecting suitable accounting policies and then applying them consistently;

• making judgements and estimates that are reasonable and prudent;

• following UK accounting standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland;

• complying with the disclosure requirements of the SORP for UK Authorised Funds issued by the Investment Management Association in May 2014 and as amended in 2017;

• keeping proper accounting records which enable it to demonstrate that the financial statements as prepared comply with the above requirements;

• assessing the Company and its sub-fund’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern;

• using the going concern basis of accounting unless they either intend to liquidate the Company or its sub-funds or to cease operations, or have no realistic alternative but to do so;

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

• taking reasonable steps for the prevention and detection of fraud and irregularities.

The ACD is responsible for the management of the Company in accordance with its Instrument of Incorporation, the Prospectus and the COLL Sourcebook.

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Quilter Investors Diversified Portfolio

Quilter Investors Diversified Portfolio In early 2020, the sub-fund gradually reduced investment risk in the portfolio. Further risk reductions were made during the early phase of the market sell-off in late Launch date 13 February 2003 February and early March, a period when investors exited equity markets in such IA Sector Mixed Investment 20-60% Shares numbers that stock prices fell rapidly. In the equity portfolio, overall exposure to Europe (including the UK), the US and, to a lesser extent, Japan and emerging Investment Manager Quilter Investors Limited markets were all reduced. Net asset value £470,355,277 The fixed-income holdings had been more biased towards corporate bonds on the grounds that yields were more attractive for the level of investment risk required. Objective However, corporate bonds of all kinds struggled due to the increased risk of corporate default (companies that cannot pay the income on the bonds) wrought by The sub-fund aims to provide capital growth by outperforming the annual rate of the the coronavirus outbreak. The sub-fund’s exposure to emerging-market bonds also UK Consumer Price Index (CPI) by 4%, net of charges, over rolling seven year suffered significant losses, with the Ashmore Emerging Market Short Duration Debt periods. Fund among the worst performers. Although the sub-fund aims to achieve a positive return over rolling seven year Elsewhere, the significant rally in US Treasuries helped to drive strong performance periods, capital invested is, in fact, at risk and there is no guarantee that a positive from the PIMCO Income Fund. The portfolio’s alternatives holdings were beneficial in return will be generated over that time period or any other time period. the first half of the period, helping to reduce the overall level of losses in the portfolio. The Merian Systematic Positive Skew Fund, which benefits from market volatility, Policy was of particular note here. The sub-fund will invest through collective investment schemes (which may include Risk and Reward Profile those that are managed or operated by the ACD or an associate of the ACD) in order to give exposure to a diversified portfolio of asset classes. It is expected that exposure will vary between equities (between 20% and 60%), investment grade and/or sub-investment grade bonds, property, commodities, currency and derivatives. The sub-fund may also invest directly in equities, fixed income securities, cash, near cash, money market instruments and deposits. The sub-fund may use derivative instruments for investment purposes or Efficient Portfolio Management. The use of derivatives for the purpose of investment may The calculated risk and reward category, as shown above, uses a method of affect the risk profile of the sub-fund although this is not the ACD’s intention. The use calculation derived from EU rules. It is based on the rate at which the returns of the of derivatives for Efficient Portfolio Management is unlikely to affect the risk profile of sub-fund have moved up and down in the past (i.e. volatility) and is not a guide to the the sub-fund. future risk and reward category of the sub-fund. The category shown is not a target or guarantee and may shift over time. Even the lowest category 1 does not mean a Investment Manager’s review risk-free investment. The seven-category scale is nonlinear, for example, 2 is not twice as risky as 1. Market review Sub-funds in category 5 have in the past shown moderately high volatility. With a The period began with the world looking on as China fought to contain a regional sub-fund of category 5, you have a moderately high risk of losing money but your coronavirus outbreak and ended with the number of coronavirus cases worldwide chance for gains is also moderately high. topping 10 million. Stock markets were volatile in the first half of the period as a Investment risk - the performance aim is not a guarantee, may not be achieved and result of the pandemic and subsequent containment measures, prompting central a capital loss may occur. Sub-funds which have a higher performance aim generally banks to issue huge stimulus packages. take more risk to achieve this and so have a greater potential for the returns to be Countries around the world went into lockdown in March as the death toll from the significantly different than expected. global pandemic rose. The UK economy shrunk by a record 20.4% in April, during Strategy risk - as the sub-fund invests in other collective investment schemes, the first full month of lockdown. The FTSE All-Share index was the worst hit major which themselves invest in assets such as bonds, company shares, cash and equity market over the six-month period. The UK officially left the European Union at currencies, it will be subject to the collective risks of these other sub-funds. This may the end of January and in June the government said it would not seek an extension include emerging markets risk and sub-investment grade credit risk. to the 31 December 2020 Brexit transition deadline. Emerging markets risk - less developed countries may face more political, Global equity markets rallied in the second half of the period, as lockdowns began to economic or structural challenges than developed countries. ease. By the end of the period, European economies had begun to reopen but this failed to lift the MSCI Europe ex UK index, which still ended the period in negative Credit risk - the issuer of a bond or a similar investment within the sub-fund may not territory. The UK government began lifting some of the strictest social distancing and pay income or repay capital to the sub-fund when due. Bonds which are rated below lockdown measures in June in a bid to kickstart an economic recovery. The investment grade are considered to have a higher risk exposure with respect to European Central Bank confirmed it would leave interest rates unchanged but meeting their payment obligations. announced an expansion in both the size and duration of its Pandemic Emergency Purchase Programme. It grew by €600bn to €1.35trn. In the latter part of the period, Interest rate risk - investments in bonds are affected by interest rates and inflation the Bank of England also expanded its quantitative easing program by a further trends which may affect the value of the sub-fund. £100bn, bringing the current round of stimulus to £300bn. Currency risk - the sub-fund is denominated in British Pounds but may hold assets In the US, the Federal Reserve announced it will leave near-zero interest rates denominated in, or with exposure to, other currencies. The value of your shares may unchanged through to 2022 and it cut its estimate for US GDP this year to -6.5%. rise and fall as a result of exchange rate movements between these currencies. Consequently, US Treasuries outperformed US high-yield bond issues, despite the Derivative risk - the sub-fund uses derivatives to generate returns and/or to reduce huge rebound enjoyed by the latter in the second half of the period. China became costs and the overall risk of the sub-fund. Using derivatives can involve a higher the first country to emerge from lockdown, but by the end of the period a spike in level of risk. A small movement in the price of an underlying investment may result in coronavirus cases near Beijing prompted it to reinstate a lockdown in the area. a disproportionately large movement in the price of the derivative investment. Emerging market economies, including Brazil and India, failed to halt the spread of Derivatives also involve counterparty risk where the institutions acting as coronavirus, weighing on emerging market equities. counterparty to derivatives may not meet their contractual obligations. Performance review Capital erosion risk - the sub-fund takes its charges from the income of the sub- As the impact of the coronavirus pandemic became apparent, the broad fund in the first instance. The impact of sub-fund charges may be material on the diversification within the portfolio helped relative performance, although the sub- value of any income you receive from your investment. There is potential for capital fund’s equity holdings suffered severe losses. Its relatively small weighting to UK erosion if insufficient income is generated by the sub-fund to cover these charges. equities proved to be most costly, with the UK Equity 2 Fund, managed by Ninety- Capital erosion may have the effect of reducing the level of income generated. One, among those that struggled most. For a more detailed explanation of risks, please refer to the "Risks" section of the Prospectus. 6 Quilter Investors Portfolio OEIC

Quilter Investors Diversified Portfolio

Performance Record

Comparative Tables 1 January 2020 to 1 January 2019 to 1 January 2018 to Accumulation 'A' 30 June 2020 31 December 2019 31 December 2018 p/share p/share p/share Change in net assets per share Opening net asset value per share 106.58 94.52 104.71 Return before operating charges* (7.01) 13.91 (8.40) Operating charges** (0.87) (1.85) (1.79) Return after operating charges* (7.88) 12.06 (10.19) Distributions (0.24) (1.21) (1.02) Retained distributions 0.24 1.21 1.02 Closing net asset value per shares 98.70 106.58 94.52 * after direct transaction costs of*** 0.01 0.01 0.01 Performance Return after charges (7.39)% 12.76% (9.73)% Other information Closing net asset value (£) 48,918,513 56,778,623 58,999,227 Closing number of shares 49,561,464 53,273,663 62,417,000 Operating charges**** 1.76% 1.80% 1.76% Direct transaction costs*** 0.02% 0.01% 0.01% Prices pence per share pence per share pence per share Highest share price 108.1 107.1 105.7 Lowest share price 87.16 94.51 93.93

1 January 2020 to 1 January 2019 to 1 January 2018 to Accumulation 'R' 30 June 2020 31 December 2019 31 December 2018 p/share p/ share p/share Change in net assets per share Opening net asset value per share 634.40 559.27 615.81 Return before operating charges* (42.16) 81.54 (50.48) Operating charges** (2.97) (6.41) (6.06) Return after operating charges* (45.13) 75.13 (56.54) Distributions (3.19) (10.85) (9.62) Retained distributions 3.19 10.85 9.62 Closing net asset value per share 589.27 634.40 559.27 * after direct transaction costs of*** 0.06 0.04 0.08 Performance Return after charges (7.11)% 13.43% (9.18)% Other information Closing net asset value (£) 421,436,764 473,214,949 474,708,030 Closing number of shares 71,518,063 74,592,134 84,879,863 Operating charges**** 1.01% 1.05% 1.01% Direct transaction costs*** 0.02% 0.01% 0.01% Prices pence per share pence per share pence per share Highest share price 643.4 637.6 621.5 Lowest share price 500.0 559.2 555.7

** The operating charges include all costs borne by the sub-fund, except for direct transaction costs. They include the operating charges of any collective investment schemes in which the sub-fund invests. *** The direct transaction costs are made up of fees and commissions paid to agents, advisers, brokers and dealers, levies by regulatory agencies and securities exchanges as well as transfer taxes and duties. They do not include any difference between the quoted bid and offer prices or internal administrative or holding costs. These costs arise as a result of transactions undertaken both for efficient portfolio management and the meeting of the sub-fund’s objectives. These costs exclude any effect of dilution adjustments used to offset the costs. **** The operating charges percentage is the ratio of the sub-fund's ongoing charges (including the ongoing charges of any collective investment schemes in which the sub-fund invests but excluding interest on borrowings) to the average net assets of the sub-fund. This includes a synthetic element of 0.36% (31.12.2019 - 0.40%) (31.12.2018 - 0.36%) to incorporate the OCF of the underlying sub-funds.

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Performance

6 months to 1 year to 3 years to 5 years to 30 June 2020 30 June 2020 30 June 2020 30 June 2020 Quilter Investors Diversified Portfolio* (7.46)% (4.96)% (3.66)% (1.45)% UK Consumer Price Index (CPI) + 4% (benchmark) 1.90% 4.49% 17.86% 31.34% IA Mixed Investment 20-60% Shares (sector average) (11.47)% (7.14)% (3.66)% 6.60% Quartile ranking 4 4 4 4 * Accumulation 'A' shares Data Source – Factset. Figures are calculated on a total return and single price basis, with net income reinvested into the sub-fund.

Percentage of Portfolio allocation Major holdings portfolio

Overseas Equities 40.57% Quilter Investors Global Dynamic Equity Fund - A Accumulation 24.86% United Kingdom Equities 17.80% Wellington Global Credit Plus - G Distributing (GBP) Hedged 5.00% Overseas Bonds 17.46% Quilter Investors Bond 2 Fund - A Accumulation 4.02% United Kingdom Bonds 9.96% Quilter Investors Bond 3 Fund - A Income 3.64% Overseas Alternative Investment Instruments 8.15% Quilter Investors Equity 2 Fund - A Accumulation 3.54% United Kingdom Property 1.07% Quilter Investors Bond 1 Fund - A Income 3.43% Overseas Private Equity 0.41% Wellington Durable Enterprises Fund - T Accumulation (USD) 3.19% Derivatives 0.19% AQR Global Aggregate Bond UCITS Fund 2.98% Quilter Investors Equity 1 Fund - A Accumulation 2.91% Net other assets 4.39% Merian UK Alpha Fund - R Accumulation 2.62%

Total 100.00% Number of holdings 86

Asset allocation Total Purchases and Sales for the period Equities 58.37% 2020 2019 Bonds 27.42% £'000 £'000 Alternative Investment Instruments 8.15% Total purchases for the 6 month period to 30 June 88,703 56,804 Property 1.07% Total sales for the 6 month period to 30 June 125,012 105,280 Private Equity 0.41% Derivatives 0.19%

Net other assets 4.39%

Total 100.00%

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Quilter Investors Diversified Portfolio

Portfolio statement as at 30 June 2020

Market Percentage of Value total net assets Holding Investment £'000 %

United Kingdom 28.38% (31 December 2019 29.55%)

United Kingdom Bonds 9.96% (31 December 2019 8.38%) 17,16,999 BioPharma Credit Fund 1,366 0.29 416 BlackRock Institutional Sterling Liquidity Fund - Premier Accumulation 44 0.01 3,66,48,964 Quilter Investors Bond 1 Fund - A Income 16,125 3.43 1,88,00,270 Quilter Investors Bond 2 Fund - A Accumulation 18,913 4.02 50,66,284 Quilter Investors Corporate Bond Fund - U2 Accumulation 5,897 1.25 1,70,974 Vanguard UK Gilt UCITS ETF 4,528 0.96 46,873 9.96

United Kingdom Equities 17.80% (31 December 2019 19.63%) 29,59,943 Assura 2,359 0.50 2,81,995 Finsbury Growth & Income Trust 2,355 0.50 9,50,463 HICL Infrastructure 1,631 0.35 20,67,280 Hipgnosis Songs 2,388 0.51 14,30,331 International Public Partnerships 2,406 0.51 24,854 iShares UK Equity Index Fund - L Accumulation 50 0.01 1,06,37,217 Liontrust UK Growth Fund 10,280 2.19 88,90,250 Merian UK Alpha Fund - R Accumulation 12,340 2.62 16,732 Merian UK Specialist Equity Fund - F Accumulation 228 0.05 4,13,245 Merian UK Specialist Equity Fund - R Accumulation 5,556 1.18 92,49,279 Quilter Investors Equity 1 Fund - A Accumulation 13,698 2.91 1,37,04,959 Quilter Investors Equity 2 Fund - A Accumulation 16,651 3.54 43,15,569 Quilter Investors UK Equity Opportunities Fund - U2 Accumulation 4,531 0.96 10,37,374 Renewables Infrastructure 1,309 0.28 25,92,644 Unicorn Outstanding British Companies - Institutional Accumulation 7,920 1.69 83,702 17.80

United Kingdom Property 1.07% (31 December 2019 0.98%) 21,84,333 Janus Henderson UK Property PAIF - A Accumulation 5,018 1.07 5,018 1.07

Sterling Denominated Forward Exchange Contracts (0.51)% (31 December 2019 0.66%) £1,628,348 Sterling v Australian Dollar Forward Exchange Contract (185) (0.04) £6,513,698 Sterling v Euro Forward Exchange Contract (258) (0.05) £7,426,698 Sterling v Japanese Yen Forward Exchange Contract (121) (0.03) £6,582,273 Sterling v New Zealand Dollar Forward Exchange Contract (515) (0.11) £103,263 Sterling v US Dollar Forward Exchange Contract (1) - £64,099 Sterling v US Dollar Forward Exchange Contract (1) - £157,763 Sterling v US Dollar Forward Exchange Contract (5) - £39,085,314 Sterling v US Dollar Forward Exchange Contract (405) (0.09) £26,264,745 Sterling v US Dollar Forward Exchange Contract (912) (0.19) (2,403) (0.51)

Sterling Denominated Futures Contracts 0.00% (31 December 2019 (0.10)%) (33) FTSE 100 Index Futures September 2020 8 - 8 -

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Portfolio statement (continued) as at 30 June 2020

Market Percentage of Value total net assets Holding Investment £'000 %

Sterling Denominated Options Contracts 0.06% (31 December 2019 0.00%) 300 Call UK Treasury Index December 2020 Merrill Lynch 122 0.03 202 Put UK Treasury Index June 2021 Merrill Lynch 1,033 0.22 (202) Put UK Treasury Index June 2021 Merrill Lynch (336) (0.07) (300) Put UK Treasury Index December 2020 Merrill Lynch (542) (0.12) 277 0.06

Overseas 67.23% (31 December 2019 66.39%)

Overseas Alternative Investment Instruments 8.15% (31 December 2019 7.89%) 12,296 CZ Absolute Alpha UCITS Fund - B Accumulation 12,276 2.61 3,07,831 Merian Systematic Positive Skew Fund - X Accumulation (USD) 2,894 0.62 82,969 Montlake Mygale Event Driven UCITS Fund - Institutional A Founder (GBP) 9,548 2.03 8,72,074 Neuberger Berman Macro Opportunities FX Fund - X Accumulation 6,873 1.46 15,98,787 Sequoia Economic Infrastructure Income Fund 1,666 0.35 51,642 Trium European Equity Market Neutral Fund 5,059 1.08 38,316 8.15

Overseas Bonds 17.46% (31 December 2019 23.52%) 1,26,182 AQR Global Aggregate Bond UCITS Fund 14,021 2.98 47,286 Ashmore Emerging Markets Short Duration Fund - Institutional Accumulation (USD) 4,189 0.89 41,36,658 Fair Oaks Income Fund 1,450 0.31 NZ$7,590,000 New Zealand Local Government Funding Agency Bond 2.75% 15/04/2025 4,330 0.92 NZ$5,880,000 New Zealand Local Government Funding Agency Bond 4.5% 15/04/2027 3,770 0.80 261 PIMCO GIS Dynamic Bond Fund - Institutional Accumulation (GBP) Hedged 3 - 1,20,607 PIMCO Income Fund - I Income (USD) 1,124 0.24 64,00,875 Quilter Investors Absolute Return Bond Fund - U2 Accumulation 6,555 1.39 5,64,02,903 Quilter Investors Bond 3 Fund - A Income 17,113 3.64 50,73,834 Quilter Investors High Yield Bond Fund - A Accumulation (GBP) 4,836 1.03 20,21,049 Wellington Global Credit Plus - G Distributing (GBP) Hedged 23,533 5.00 11,839 Wells Fargo US Short Term High Yield Bond Fund - I Accumulation (USD) 1,204 0.26 82,128 17.46

Overseas Equities 40.57% (31 December 2019 35.02%) 17,64,124 Baillie Gifford Japanese Income Growth Fund - B Income 2,387 0.51 71,891 BNY Mellon US Equity Income Fund - F Accumulation 66 0.01 19,01,144 Fidelity Asia Pacific Opportunities Fund - W Accumulation 4,317 0.92 24,61,951 Hermes Asia (ex Japan) Equity Fund - F Accumulation 6,025 1.28 18,020 iShares Continental European Equity Index Fund - L Accumulation 47 0.01 14,66,647 iShares Emerging Markets Equity Index Fund - L Accumulation 2,458 0.52 26,889 iShares Japan Equity Index Fund - L Accumulation 64 0.01 16,345 iShares North American Equity Index Fund - L Accumulation 70 0.01 55,556 Lumyna - Sandbar Global Equity Market Neutral UCITS Fund 4,904 1.04 1,46,824 Merian Global Emerging Markets Fund - U2 Accumulation (GBP) 2,390 0.51 1,26,509 Merian Global Equity Income Fund - R Income 1,767 0.38 38,89,379 Quilter Investors Emerging Markets Equity Growth Fund - U2 Accumulation 8,327 1.77 21,67,660 Quilter Investors Europe (ex UK) Equity Fund - U2 Income 3,512 0.75 8,96,73,720 Quilter Investors Global Dynamic Equity Fund - A Accumulation 116,935 24.86 2,83,328 Quilter Investors Global Equity Growth Fund 622 0.13 3,431 Quilter Investors Japanese Equity Fund - A Accumulation 6 - 24,10,352 Quilter Investors US Equity Growth Fund - U2 Accumulation 4,409 0.94 3,88,016 Sands Capital - Emerging Markets Growth Fund - A Accumulation (USD) 4,892 1.04 4,02,622 Sands Capital Global Leaders Fund 6,063 1.29

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Portfolio statement (continued) as at 30 June 2020

Market Percentage of Value total net assets Holding Investment £'000 %

Overseas Equities (continued) 6,21,739 Schroder Oriental Income Fund 1,414 0.30 1,66,559 Schroder US Mid Cap Fund 215 0.05 2,51,312 Skyline Usonian Japan Value Fund 2,431 0.52 23,570 SPARX Japan Sustainable Equity Fund - E Accumulation 2,489 0.53 16,40,273 Wellington Durable Enterprises Fund - T Accumulation (USD) 15,002 3.19 190,812 40.57

Overseas Private Equity 0.41% (31 December 2019 0.42%) 1,23,284 HarbourVest Global Private Equity 1,938 0.41 1,938 0.41

Australian Dollar Denominated Futures Contracts 0.00% (31 December 2019 0.00%) (30) SPI 200 Index Futures September 2020 7 - 7 -

Euro Denominated Forward Exchange Contracts 0.04% (31 December 2019 0.01%) €4,625,000 Euro v Sterling Forward Exchange Contract 99 0.02 €2,100,000 Euro v Sterling Forward Exchange Contract 75 0.02 €1,030,000 Euro v Sterling Forward Exchange Contract 19 - €1,400,000 Euro v Sterling Forward Exchange Contract 12 - 205 0.04

Euro Denominated Futures Contracts (0.01)% (31 December 2019 0.00%) (287) DJ Euro Stoxx 50 Futures September 2020 (51) (0.01) (51) (0.01)

Euro Credit Default Swap (0.05)% (31 December 2019 0.00%) €5,150,000 Buy Protection on ITRAXX-XOVERS33V1 5 Years 18/06/2025 Goldman Sachs (217) (0.05) (217) (0.05)

Japanese Yen Denominated Futures Contracts 0.08% (31 December 2019 0.00%) (74) TOPIX Index Futures September 2020 381 0.08 381 0.08

US Dollar Denominated Forward Exchange Contracts 0.08% (31 December 2019 (0.45)%) $8,350,000 US Dollar v Sterling Forward Exchange Contract 90 0.02 $3,971,155 US Dollar v Sterling Forward Exchange Contract 65 0.02 $3,175,000 US Dollar v Sterling Forward Exchange Contract 62 0.01 $7,150,000 US Dollar v Sterling Forward Exchange Contract 60 0.01 $4,600,000 US Dollar v Sterling Forward Exchange Contract 49 0.01 $5,860,000 US Dollar v Sterling Forward Exchange Contract 19 0.01 $1,400,000 US Dollar v Sterling Forward Exchange Contract 16 - $132,304 US Dollar v Sterling Forward Exchange Contract 4 - $115,981 US Dollar v Sterling Forward Exchange Contract 2 - $93,934 US Dollar v Sterling Forward Exchange Contract 1 - 368 0.08

US Dollar Denominated Futures Contracts 0.04% (31 December 2019 (0.02)%) (190) E-mini S&P 500 Futures September 2020 136 0.03 187 US 10 Year Treasury Note Futures September 2020 76 0.01 212 0.04

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Quilter Investors Diversified Portfolio

Portfolio statement (continued) as at 30 June 2020

Market Percentage of Value total net assets Holding Investment £'000 %

US Dollar Denominated Options Contracts 0.44% (31 December 2019 0.00%) 394 Call S&P 500 Index Futures July 2020 Merrill Lynch 77 0.02 3,800 Call US 10 Year Treasury Note Futures August 2020 Merrill Lynch 726 0.15 (3,800) Call US 10 Year Treasury Note Futures August 2020 Merrill Lynch (629) (0.13) 100 Put S&P 500 Index Futures December 2020 Merrill Lynch 2,097 0.45 (100) Put S&P 500 Index Futures December 2020 Merrill Lynch (1,067) (0.23) 50 S&P 500 Index Futures June 2021 Merrill Lynch 1,181 0.25 (50) S&P 500 Index Futures June 2021 Merrill Lynch (383) (0.08) 32 S&P 500 Index Futures September 2020 Merrill Lynch 71 0.02 (32) S&P 500 Index Futures September 2020 Merrill Lynch (24) (0.01) 2,049 0.44

US Dollar Credit Default Swap 0.02% (31 December 2019 0.00%) $6,412,500 Buy Protection on CDS CDX-NAHYS34V1 5 Years 20/06/2025 Goldman Sachs 76 0.02 76 0.02

Investment assets* 449,699 95.61

Net other assets 20,656 4.39

Total net assets 470,355 100.00 * Including investment liabilities. All investments (excluding OTC derivatives) are approved securities being either officially listed in a member state or traded on or under the rules of an eligible securities market or collective investment schemes permitted under COLL Sourcebook.

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Quilter Investors Diversified Portfolio

Statement of total return for the period from 1 January 2020 to 30 June 2020 01.01.20 to 01.01.20 to 01.01.19 to 01.01.19 to 30.06.20 30.06.20 30.06.19 30.06.19 Note £'000 £'000 £'000 £'000

Income Net capital (losses)/gains (39,801) 48,930 Revenue 4,425 6,339 Expenses (1,748) (1,971) Interest payable and similar charges (99) (7) Net revenue before taxation 2,578 4,361 Taxation (332) (586) Net revenue after taxation 2,246 3,775 Total return before distributions (37,555) 52,705 Distributions 2 (2,490) (4,117) Change in net assets attributable to shareholders from investment activities (40,045) 48,588

Statement of change in net assets attributable to shareholders for the period from 1 January 2020 to 30 June 2020 01.01.20 to 01.01.20 to 01.01.19 to 01.01.19 to 30.06.20 30.06.20 30.06.19 30.06.19 £'000 £'000 £'000 £'000 Opening net assets attributable to shareholders 529,994* 533,707

Amounts received on issue of shares 13,367 13,985 Amounts paid on cancellation of shares (35,413) (52,988) (22,046) (39,003) Dilution adjustment 53 81 Change in net assets attributable to shareholders from investment activities (40,045) 48,588 Retained distribution on accumulation shares 2,399 3,944

Closing net assets attributable to shareholders 470,355 547,317*

* Section 3.30 of the SORP issued by the Investment Management Association in May 2014 requires comparative figures for the above statement. For interim financial statements this will result in the closing comparative net assets not being equal to net assets at the start of the current period.

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Quilter Investors Diversified Portfolio

Balance sheet as at 30 June 2020 30.06.20 31.12.19 £'000 £'000 Assets Fixed assets Investments 455,351 512,382 Current assets Debtors 2,826 2,803 Cash and bank balances 36,200 22,961 Total assets 494,377 538,146

Liabilities Investment liabilities (5,652) (3,891) Creditors Bank overdrafts (17,194) (2,905) Other creditors (1,176) (1,356) Total liabilities (24,022) (8,152)

Net assets attributable to shareholders 470,355 529,994

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Quilter Investors Diversified Portfolio

Notes to the financial statements for the period from 1 January 2020 to 30 June 2020

1 Accounting policies The financial statements have been prepared under the historical cost basis, as modified by the revaluation of investments, and in accordance with the Statement of Recommended Practice (SORP) for Authorised Funds, issued by the Investment Management Association in May 2014 and as amended in 2017. The accounting policies applied are consistent with those disclosed within the annual Financial Statements for the year ended 31 December 2019.

2 Distributions The distributions take account of revenue received on the issue of shares and revenue deducted on the cancellation of shares, and comprise: 01.01.20 to 01.01.19 to 30.06.20 30.06.19 £'000 £'000

Interim – Accumulation shares (30 June) 2,399 3,944 2,399 3,944 Revenue deducted on cancellation of shares 155 243 Revenue received on issue of shares (64) (70) Distributions 2,490 4,117

Reconciliation of distributions: Net revenue after taxation 2,246 3,775 Equalisation on Collective Investment Schemes 159 221 Equalisation on conversion 3 - Tax effect of fee rebates taken to capital 82 121 Distributions 2,490 4,117

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Quilter Investors Diversified Portfolio

Distribution table

Interim distribution

Group 1: Shares purchased prior to 1 January 2020 Group 2: Shares purchased from 1 January 2020 to 30 June 2020

Distribution Distribution Revenue Equalisation payable 31.08.20 paid 31.08.19 pence per share pence per share* pence per share pence per share Accumulation 'A' Shares Group 1 0.2387 - 0.2387 0.4851

Group 2 0.0000 0.2387 0.2387 0.4851

Accumulation 'R' Shares Group 1 3.1892 - 3.1892 4.6352

Group 2 0.4044 2.7848 3.1892 4.6352

* Equalisation only applies to shares purchased during the period (Group 2 shares). It is the average amount of revenue included in the purchase price of all Group 2 shares and is refunded to holders as a return of capital. Being capital, it is not liable to income tax but must be deducted from the cost of shares for capital gains tax purposes.

16 Quilter Investors Portfolio OEIC