Aberdeen Standard ACS I

Interim Long Report (unaudited) For the period from 12 November 2020 to 31 May 2021 02 Aberdeen Standard ACS I

Contents

Report of the Authorised Contractual Scheme Manager 03 Authorised Contractual Scheme Manager’s Statement 06 Notes to the Financial Statements of Aberdeen Standard ACS I 07 ASI Sustainable Index UK Equity Fund 12 ASI Sustainable Index World Equity Fund 24 Securities Financing Transactions Disclosure 50 Further Information 51 Aberdeen Standard ACS I 03

Report of the Authorised Contractual Scheme Manager

Aberdeen Standard ACS I (the “Scheme”) is an authorised contractual scheme in co-ownership form, constituted as a non-UCITS retail scheme. The Scheme is registered and authorised in the United Kingdom by the Financial Conduct Authority (the "FCA") with effect from 23 October 2020. The Scheme is organised as an umbrella authorised contractual scheme comprising of 2 separate funds.

Appointments Authorised Contractual Scheme Manager Aberdeen Standard Fund Managers Limited

Registered office Correspondence address Bow Bells House Sunderland 1 Bread Street SR43 4DZ London EC4M 9HH

Investment Manager Aberdeen Asset Managers Limited

Registered office Correspondence address 10 Queen’s Terrace Bow Bells House Aberdeen 1 Bread Street AB10 1XL London EC4M 9HH

Depositary Northern Trust Global Services SE, acting through its UK Branch

Registered office Correspondence address 10, rue du Château d’Eau 50 Bank Street L-3364 Leudelange Canary Wharf Grand-Duché de Luxembourg London E14 5NT

Registrar Northern Trust Global Services SE, acting through its UK Branch

Registered office Correspondence address 5 at 10, rue du Château d’Eau 50 Bank Street L-3364 Leudelange Canary Wharf Grand-Duché de Luxembourg London E14 5NT

Independent auditor KPMG LLP St Vincent Plaza 319 St Vincent Street Glasgow G2 5AS

Note: The Authorised Contractual Scheme Manager (the ACS Manager), Aberdeen Asset Managers Limited, Aberdeen Standard Investments (Asia) Limited, and Aberdeen Asset Management Inc are wholly owned subsidiaries of abrdn plc, and are accordingly associates.

The Investment Manager has responsibility for and full discretion in making all investment decisions in relation to each fund subject to, and in accordance with, the investment objectives and policies of the funds as varied from time to time, the provisions of the ACS Deed and any directions or instructions given from time to time by the ACS Manager. All fees charged by the Investment Manager will be borne by the ACS Manager.

The ACS Manager and Alternative Investment Fund Manager of the Scheme is Aberdeen Standard Fund Managers Limited, a private Company limited by shares which was incorporated in England and Wales on 7 November 1962. Its ultimate holding company is abrdn plc, which is incorporated in Scotland.

04 Aberdeen Standard ACS I

Financial details and Fund Managers’ reviews of the individual funds for the period ended 31 May 2021 are given in the following pages of this report.

Each fund has an individual investment objective and policy and each differs in regard to the extent to which they concentrate on achieving income or capital growth. There may be funds added to the umbrella of Aberdeen Standard ACS I (with consent of the FCA and the Depositary) in the future.

The funds are valued on a mid-price basis and dealt at a single price regardless of whether a purchase or sale is being affected. The daily price for each fund appears on the Aberdeen Standard Investments website at www.aberdeenstandard.com.

The funds are segregated portfolios of assets and, accordingly, the assets of a fund belong exclusively to that fund and shall not be used to discharge directly or indirectly the liabilities of, or claims against, any other person or body, including the Scheme, or any other fund, and shall not be available for any such purpose.

Unitholders are not liable for the debts of the Scheme.

All fees charged by the Investment Manager will be borne by the ACS Manager.

Significant event

Aberdeen Standard Investments continues to monitor the global impact of COVID-19. The following are regularly reviewed to ensure fair treatment of investors:

• Market liquidity across each asset class and fund; • Asset class bid-offer spread monitoring; • Review of fund level dilution rate appropriateness; • Review of daily subscriptions / redemptions to anticipate any potential concerns to meet redemption proceeds; • Any requirement to gate or defer redemptions; • Any requirement to suspend the / a fund(s); and • Any fair value price adjustments at a fund level.

Developments and prospectus updates since 12 November 2020

• On 12 November 2020, the ASI Sustainable Index UK Equity Fund and ASI Sustainable Index World Equity Fund were launched; • On 31 May 2021, Gary Marshall resigned as a director of Aberdeen Standard Fund Managers Limited; • On 31 May 2021, Allison Donaldson resigned as a director of Aberdeen Standard Fund Managers Limited; • On 31 May 2021, Robert McKillop was appointed as a director of Aberdeen Standard Fund Managers Limited; • On 31 May 2021, Claire Marshall was appointed as a director of Aberdeen Standard Fund Managers Limited; • The list of funds managed by the ACS Manager was updated, where appropriate; • Performance and dilution figures were refreshed, where appropriate; • The list of sub-custodians was refreshed, where appropriate; and • The list of eligible markets was refreshed, where appropriate.

Assessment of Value

In 2017, the FCA published the final Asset Management Market Study. This introduced (among other reforms) new governance rules with the aim of enhancing duty of care and ensuring the industry acts in investors’ best interests. The rules were outlined in the FCA policy statement PS18/8 and came into effect from 30 September 2019. As a result, the ACS Manager is required to perform a detailed assessment on whether funds are “providing value to investors”. The resulting findings will be published within 4 months of the fund year-end date and can be found on the ‘Fund Centre’ pages on the Aberdeen Standard Investments website at www.aberdeenstandard.com.

Crossholding information

There were no cross holdings between funds in Aberdeen Standard ACS I as at 31 May 2021.

Market Review

Global equity markets rose over the six-month review period, with most major world indices seeing strong growth. The Covid-19 pandemic’s impact continued to be felt by economies around the world, with new variants of the virus adding further uncertainty and leading to the reimposition of lockdowns. However, markets had largely adapted to this constrained environment, and many markets were also underpinned by ongoing government and central bank support. Investor sentiment also improved on the back of largely successful vaccine rollouts.

The review period started off well, as vaccine rollouts began in countries across the world. Then, the discovery of a new, highly contagious Covid-19 strain in the UK negatively affected global stocks. However, optimism concerning the vaccine rollouts that were already underway and the last-minute Brexit agreement on Christmas Eve offset the bad news. Although momentum stalled in January and February 2021, amid concerns of rising inflation, stock markets resumed their upward momentum, and recoveries continued apace Aberdeen Standard ACS I 05

in April. This was despite an alarming rise in Covid-19 cases in India and renewed outbreaks in many other geographies. From mid-May, investor focus shifted to corporate earnings announcements, which were generally better than expected.

Global government and corporate bonds mostly fell over the review period. Improving sentiment concerning the economic recovery and ongoing government and central bank support resulted in expectations of rising inflation and pushed down bond prices. The first quarter of 2021 saw global government bonds fall sharply, with UK government bonds (gilts) enduring their worst quarter in over 20 years. Government bond markets then stabilised but were unable to offset earlier losses. Corporate bonds fared better than government bonds, but still fell over the period. High-yield debt generally performed better than investment-grade issues.

According to the MSCI monthly index, UK commercial property returned 5.2% over the six months to the end of May. Although all sectors rose, the market remains polarised, with offices the weakest at 0.5%, while industrials returned 12.3%. The UK property market saw capital growth of 2.4%. However, this was entirely driven by a 9.8% rise in industrials, with all other sectors seeing capital decline. Overall, retail capital values are now starting to rise but are fully driven by retail warehousing and supermarkets. Meanwhile, offices are continuing their downward trend for the time being, amid low visibility around the impact of Covid-19 on future office occupation. There is now also more diversity in terms of investment volumes. While industrials are still dominant and account for more deals than any other sector, they only represented around 30% of volumes over May.

Update on our investment outlook

The ramp up of Covid-19 vaccine rollouts and positive economic data releases added fuel to an expected sharp economic rebound in 2021. With a recovery in sight, investors moved into cyclical companies at the expense of growth companies in late 2020, which continued into 2021. Low policy rates and extra fiscal expenditure are supportive for equities. Meanwhile, low bond yields have underpinned equity valuations that look stretched. A rise in long-term rates on inflation worries will likely cause spikes in market volatility. Weak corporate earnings, policy mistakes or vaccine setbacks, particularly around their effectiveness regarding new variants of the virus, could also cause sharp sell-offs.

Within fixed income, on the corporate bond side, increasing vaccine dissemination, along with promises of further US fiscal stimulus, is driving sentiment. However, less favourably, the expected strong economic rebound is stoking some inflation fears, putting upward pressure on core government bond yields. Most notably, the 10-year US Treasury yield has risen sharply from lows seen in August 2020. Since bond prices move in the opposite direction, continued yield rises would be unwelcome for both government and corporate bonds.

In UK commercial real estate, industrials are likely to be the best-performing sector in 2021 for a fifth successive year. Meanwhile, the recent drop in retail footfall is likely to be short term, in our view. The reopening of indoor hospitality should provide a boost to struggling high streets and shopping centres. Elsewhere, we expect strong performance from the industrial sector over the next 12 months. 06 Aberdeen Standard ACS I

Authorised Contractual Scheme Manager’s Statement

In accordance with the requirements of the COLL sourcebook as issued and amended by the Financial Conduct Authority, we hereby certify the report on behalf of Aberdeen Standard Fund Managers Limited, the Authorised Contractual Scheme Manager.

Aron Mitchell Claire Marshall Director Director Aberdeen Standard Fund Managers Limited Aberdeen Standard Fund Managers Limited 26 July 2021 26 July 2021 Aberdeen Standard ACS I 07

Notes to the Financial Statements of Aberdeen Standard ACS I

1. Accounting policies

(a) Basis of preparation The financial statements have been prepared on a historical cost basis, as modified by the revaluation of investments, and in accordance with the Statement of Recommended Practice (SORP) for Financial Statements of Authorised Funds issued by the Investment Management Association in May 2014 (IMA SORP 2014), FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland.

The financial statements have been prepared on a going concern basis.

The ACS Manager has undertaken a detailed assessment of the fund’s ability to meet its liabilities as they fall due, including liquidity, declines in global capital markets and investor redemption levels. Based on this assessment, the fund continues to be open for trading and the ACS Manager is satisfied the fund has adequate financial resources to continue in operation and accordingly it is appropriate to adopt the going concern basis in preparing the financial statements.

(b) Valuation of investments Listed investments have been valued at fair value as at the close of business on the reporting date. The SORP defines fair value as the market value of each security, in an active market, this is generally the quoted bid price.

Unlisted, unapproved, illiquid or suspended securities are valued at the ACS Manager’s best estimate of the amount that would be received from an immediate transfer at arm’s length. The ACS Manager has appointed a FVP committee to review valuations.

Collective Investment Schemes are valued by reference to their net asset value. Dual priced funds have been valued at the cancellation price. Single priced funds have been valued using the single price.

Any open positions in derivative contracts or forward foreign currency transactions at the period end are included in the Balance Sheet at their mark to market value.

(c) Foreign Exchange Assets and liabilities denominated in foreign currencies are translated into Sterling at the prevailing exchange rates as at the close of business on the reporting date.

Foreign currency transactions are translated at the rates of exchange ruling on the date of such transactions. Exchange differences on such transactions follow the same treatment as the principal amounts.

(d) Dilution In certain circumstances (as detailed in the Prospectus) the ACS Manager may apply a dilution adjustment on the issue or cancellation of units, which is applied to the capital of the fund on an accruals basis. The adjustment is intended to protect existing investors from the costs of buying or selling underlying investments as a result of large inflows or outflows from the fund.

(e) Revenue Overseas dividends are grossed up at the appropriate rate of withholding tax and the tax consequences are shown within the tax charge.

Revenue from collective investment schemes is recognised when the investments are quoted ex dividend.

Accumulation distributions from shares held in collective investment schemes are reflected as revenue and form part of the distribution.

Equalisation received from distributions or accumulations on units or shares in underlying investments is treated as capital and deducted from the cost of the investment.

Revenue from offshore funds is recognised when income is reported by the offshore fund operator.

Interest on bank deposits is recognised on an accruals basis.

Interest from short-term deposits is recognised on an accruals basis.

Interest on debt securities is recognised on an accruals basis. 08 Aberdeen Standard ACS I

Interest from debt securities is recognised as revenue using the effective interest method. The purchase price of the asset, the yield expectation and scheduling of payments, are all part of this calculation. Callable bonds are calculated on a yield to worst expectation generally, which may not match other calculations. Convertible bonds are excluded from a true effective interest calculation owing to the unavailability of option values for the conversion rate.

Stock dividends are recognised as revenue when they are quoted ex dividend. In the case of enhanced stock dividends, the value of the enhancement is recognised as capital.

Special dividends may be treated as repayments of capital or as revenue dependent on the facts of the particular case. Where receipt of a special dividend results in a significant reduction in the capital value of the holding, then the special dividend will be recognised as capital so as to ensure that the matching principle is applied to gains and losses. Otherwise, the special dividends are recognised as revenue.

Underwriting commission is taken to revenue and recognised when the issue takes place, except where the fund or Trust is required to take up all or some of the shares underwritten in which case an appropriate proportion of the commission received is deducted from the cost of the relevant shares.

Distributions from Brazilian corporations may take the form of interest on capital as an alternative to making dividend distributions. Interest on capital distributions are recognised on an accruals basis.

Management fee rebates from collective investment schemes are recognised as revenue or capital on a consistent basis to how the underlying scheme accounts for the management fee. Where such rebates are revenue in nature, the income forms part of the distribution.

For dividends received from US Real Estate Investment Trusts ("REITs"), on receipt of the capital/revenue split from the REITs, the allocation of the dividend is adjusted within the financial statements.

(f) Expenses The underlying funds may have a number of different unit classes. Each unit class may suffer a different ACS Manager’s fixed fee.

The ACS Manager has implemented a “fixed fee”. The fixed fee is intended to be an all-encompassing expense subject to certain limited exceptions. Therefore, the ACS Manager’s fixed fee will, unless specified otherwise, cover all costs and expenses connected with the management and operating activities of the relevant fund, including: investment management and advisory fees, administration, registration, transfer agency, custody fees, depositary fees and other operating expenses, but exclude such non-recurring and extraordinary or exceptional costs and expenses (if any) as may arise from time to time such as, without limitation: material litigation and withholding taxes deducted from interest and dividend payments to the relevant fund, and stamp duties or other documentary transfer taxes, or similar duties and brokerage fees (excluding costs for research) arising on the purchase or sale of securities by the relevant fund.

All expenses other than those relating to the purchase and sale of investments are included in expenses in the statement of total return.

The ACS Manager’s fixed fee is charged to the revenue property of the respective funds.

Where fees are payable from capital, these will not form part of the distribution as described in the distribution accounting policy.

(g) Taxation The Scheme is constituted as an Authorised Contractual Scheme taking the form of a co-ownership scheme. As a consequence of being so constituted, the funds of the Scheme may be treated as tax transparent for the purposes of revenue and/or gains by relevant taxing jurisdictions where unitholders are subject to taxation and/or from which any underlying revenue or gains arising to the fund are derived. Depending on the jurisdictions concerned, this treatment may apply notwithstanding that the revenue and gains of the fund may not be distributed to unitholders. Such tax transparency cannot, however, be guaranteed.

(h) Distributions The revenue from the funds’ investments accumulates during each accounting period. If revenue exceeds expenses during the period, the net revenue of the funds is available for distribution (or re-investment) at unit class level to the unitholders in accordance with the ACS Regulations. If expenses exceed revenue during the period, the net revenue shortfall may be funded from capital.

Gains and losses on non-derivative investments and currencies, whether realised or unrealised, are taken to capital and are not available for distribution. For derivative investments, where positions are undertaken to enhance capital return, the gains and losses are taken to capital, otherwise where they generate revenue, the amounts are included as revenue or expense and affect distributions.

(i) Equalisation Equalisation appears within the fund reports as part of the distribution. This represents the net revenue in the funds unit price Aberdeen Standard ACS I 09

attached to the issue and cancellation of units. It will form part of any distributions at the period end attributable to unitholders.

(j) Derivatives Funds with strategies that permit it, can make use of derivatives. Derivatives can be used to reduce risk or cost, or to generate additional capital or income consistent with the risk profile of the fund (often referred to as "Efficient Portfolio Management"). Some strategies may permit use of derivatives with a higher or lower frequency or for investment purposes. The accounting for each derivative is applied consistently in line with the derivative type; the valuation policy and market convention. Market convention for derivatives is often based on total return; however where a fund strategy or derivative type is defined with revenue in mind the accounting treatment can have a revenue element, forming part of the distribution, highlighted in the distribution policy. The Statement of Total Return captures all realised and unrealised gains regardless of nature. The Portfolio Statement will show the individual derivative contracts as net position in line with the valuation policy.

There are three broad transaction types: derivatives create a future asset or liability recognised as unrealised profit or loss until the date of maturity where cash is exchanged; swaps realise amounts of profit or loss in line with an agreed schedule until maturity; options recognise a premium paid or received, with the right or obligation to buy "call" or sell "put" an asset, exercised when the option owner is in the money. These transaction types break into three broad strategies.

Funds with strategies spanning multiple currencies can make use of the following transactions in line with their policy: forward currency exchange contracts (a derivative of the exchange rate); cross currency swaps; currency options and other currency derivatives. These transactions relate to the future expectations of foreign exchange rates. The future expectation is based on the current interest rates projected to a forward date. Currency derivatives exchange one currency for another currency at a future date.

Funds with strategies in debt instruments (bonds) can make use of the following transactions in line with their policy: bond future contracts (a derivative of the bond market or asset); credit default swaps; interest rate swaps; overnight index swaps; inflation swaps; interest rate options; swaptions; total return bond swaps and other bond related derivatives. These transactions relate to the future expectations on debt assets. The future expectations can be based on an individual asset or a market. Bond derivatives can relate to the future credit expectations; interest rate expectations; inflation expectations or a combination of these.

Funds with strategies in equity instruments (shares) can make use of the following transactions in line with their policy: equity future contracts (a derivative of the equity market or asset); variance swaps (differences in volatility between two assets); equity options; total return equity swaps and other equity related derivatives. These transactions relate to the future expectations on equity assets. The future expectations can be based on an individual asset or a market. Equity derivatives relate to the future expectations in equity markets. Equity markets are subject to the variables found in bond markets, however there is not an explicit relationship to derive a price.

(k) Collateral and margin Funds undertaking derivative transactions, stock lending or (reverse) repurchase and sale transactions exchange investment assets based on legal agreements. In line with collective investment scheme rules and ASI policy collateral or margin must be exchanged to limit the exposure to investors should an agreement fail. Collateral is exchanged at an agreement level on a net basis following ASI policy at a counterparty level within a fund. Collateral is monitored and where required exchanged daily, it is recognised on a receipts basis in the report and accounts, which may be subject to timing differences. Collateral is bilateral in nature exchanged between the two counterparties in a transaction. Margin is similar to collateral limiting the risk for investors. The main difference is the exchange of initial margin, required before a contract is opened. Once opened the exchange of variation margin is monitored and where required exchanged daily. It is also recognised on a receipts basis. Both collateral and margin do not affect the valuation of the asset they are protecting or the fund unless re-hypothecated (used to buy) into another investment asset. All funds do not re-hypothecate but may use liquidity collective investments to manage cash effectively.

(l) Stock lending Any income arising from stock lending is treated as revenue on a receipts basis and is disclosed in the notes to the Financial Statements net of directly attributable fees. The value of the collateral must always exceed the value of the stock on loan. The accepted collateral include cash, equities, certain types of bonds and money market instruments as agreed with the Depositary.

2. Risk management policies Generic risks that the Aberdeen Standard Investments (ASI) range are exposed to and the risk management techniques employed are disclosed below. Numerical disclosures and specific risks, where relevant, are disclosed within the financial statements.

The Financial Conduct Authority (FCA) Collective Investment Schemes Sourcebook (COLL) and FCA Funds Sourcebook (FUND) rules require the Management Company to establish, implement and maintain an adequate and documented Risk Management Process (RMP) for identifying the risks they manage, or might be, exposed to. The RMP must comprise of such procedures as are necessary to enable ASI to assess the exposure of each fund it manages to market risk, liquidity risk, counterparty risk, operational risk and all other risks that might be material.

ASI functionally and hierarchically separates the functions of risk management from the operating units and portfolio management functions, to ensure independence and avoid any potential or actual conflicts of interest. The risk management function has the necessary authority, access to all relevant information, staff and regular contact with senior management and the Board of Directors of the Company. The management of investment risk within ASI is organised across distinct functions aligned to the well- 10 Aberdeen Standard ACS I

established ‘three lines of defence’ model.

1. Risk ownership, management and control. 2. Oversight of risk, compliance and conduct frameworks. 3. Independent assurance, challenge and advice.

The risk management process involves monitoring funds on a regular and systematic basis to identify, measure and monitor risk and where necessary escalate appropriately, including to the relevant Board, any concerns and proposed mitigating actions.

The risk team, in line with client expectations and the investment process, develops the risk profiles for the funds in order to set appropriate risk limits. Regulatory limits as well as those agreed, are strictly enforced to ensure that ASI does not inadvertently (or deliberately) breach them and add additional risk exposure. In addition, there is an early warnings system of potential changes in the portfolio risk monitoring triggers. Where possible, these are coded into the front office dealing system, in a pre-trade capacity, preventing exposures or breaching limits before the trade is actually executed.

Risk Definitions & Risk Management Processes

i) Market Risk is the risk that economic, market or idiosyncratic events cause a change in the market value of Client assets. Market Risk can be broadly separated into two types:

(1) Systematic risk stems from any factor that causes a change in the valuation of groups of assets. These factors may emerge from a number of sources, including but not limited to economic conditions, political events or actions, the actions of central banks or policy makers, industry events or, indeed, investor behaviour and risk appetite.

(2) Specific or Idiosyncratic Risk, which is the part of risk directly associated with a particular asset, outside the realms of, and not captured by Systematic Risk. In other words, it is the component of risk that is peculiar to a specific asset, and may manifest itself in various guises, for example: corporate actions, fraud or bankruptcy.

Portfolios are subject to many sub-categories of market risk. Many of these risks are interlinked and not mutually exclusive. Examples of these types of investment risk include: Country risk; Sector risk; Asset-class risk; Inflation/deflation risk; Interest rate risk; Currency risk; Derivatives risk; Concentration risk; and Default risk. Factors that cause changes in market risks include: future perceived prospects (i.e. changes in perception regarding the future economic position of countries, companies, sectors, etc.); shifts in demand and supply of products and services; political turmoil, changes in interest rate/inflation/taxation policies; major natural disasters; recessions; and terrorist attacks.

There are several ways in which to review and measure investment risk. The risk team recognises that each method is different and has its own unique insights and limits, and applies the following measurements for each fund, where relevant:

• Leverage: has the effect of gearing a fund’s expected performance by allowing it to gain greater exposure to underlying investment opportunities (gains and losses). The higher the leverage the greater the risk (potential loss).

• Value-at-Risk (VaR) and Conditional VaR (CVaR): VaR measures with a degree of confidence the maximum the fund could expect to lose in any given time frame. Assuming a normal (Gaussian) distribution, this is a function of the volatility of the fund’s returns. The higher the volatility, the higher the VaR, the greater the risk. CVaR calculates the expected tail loss, under the assumption that the VaR has been reached.

• Volatility, Tracking Error (TE): Volatility measures the size of variation in returns that a fund is likely to expect. The higher the volatility the higher the risk. TE measures the expected magnitude of divergence of returns between the fund and benchmark over a given time.

• Risk Decomposition: Volatility, tracking error and VaR may be broken down to show contribution from market related factors (“Systematic” Risk) and instrument specific (Idiosyncratic Risk). This is not a different measure as such, but is intended to highlight the sources of volatility and VaR.

• Concentration Risk: By grouping the portfolio into various different exposures (e.g. country, sector, issuer, asset, etc.), we are able to see where, if any, concentration risk exists.

• Stress Tests and Scenario Analysis: This captures how much the current portfolio will make or lose if certain market conditions occur.

• Back Testing: This process helps to assess the adequacy of the VaR model and is carried out in line with UCITS regulatory requirements (FCA COLL 6.12). Excessive levels of overshoots and the reasons behind them are reported to the Board.

To generate these risk analytics the risk team relies on third party calculation engines, such as APT, Bloomberg PORT+, RiskMetrics, UBS Delta and Axioma. Once the data has been processed, it is analysed by the risk team, generally reviewing absolute and relative risks, change on month and internal peer analysis. Any issues or concerns that are raised through the analysis prompt further Aberdeen Standard ACS I 11

investigation and escalation if required. Breaches of hard limits are also escalated immediately. All client mandated and regulatory risk limits are monitored on a daily basis.

Stress tests are intended to highlight those areas in which a portfolio would be exposed to risk if the current economic conditions were likely to change. An economic event may be a simple change in the direction of interest rates or return expectations, or may take the form of a more extreme market event such as one caused through military conflict. The stress test itself is intended to highlight any weakness in the current portfolio construction that might deliver unnecessary systematic exposure if the market were to move abruptly.

Stress testing is performed on a regular basis using relevant historical and hypothetical scenarios. ii) Liquidity Risk is defined as the risk that a portfolio may need to raise cash or reduce derivative positions on a timely basis either in reaction to market events or to meet client redemption requests and may be obliged to sell long term assets at a price lower than their market value. Liquidity is also an important consideration in the management of portfolios: Portfolio Managers need to pay attention to market liquidity when sizing, entering and exiting trading positions.

Measuring liquidity risk is subject to three main dimensions:

• Asset Liquidity Risk – how quickly can assets be sold.

• Liability Risk - managing redemptions as well as all other obligations arising from the liabilities side of the balance sheet.

• Contingency Arrangements or Liquidity Buffers – utilising credit facilities etc.

Liquidity Risk Management Framework ASI has a liquidity risk management framework in place applicable to the funds and set out in accordance with its overall Risk Management Process, relative to the size, scope and complexity of the funds. Liquidity assessment and liquidity stress testing is typically performed monthly, monitoring both the asset and liability sides. Asset side stressed scenarios are considered based on the nature of different asset classes and their liquidity risks to demonstrate the effects of a market stress on the ability to sell- down a fund. Liability side analysis includes stress scenarios on the investor profile as well as liabilities on the balance sheet. Any particular concerns noted or liquidity risk limit breaches are escalated to the relevant Committees and Boards, if material. iii) Counterparty credit risk is the risk of loss resulting from the fact that the counterparty to a transaction may default on its obligations prior to the final settlement of the transaction’s cash flow. Credit risk falls into both market risk and specific risk categories. Credit risk is the risk that an underlying issuer may be unable (or unwilling) to make a payment or to fulfil their contractual obligations. This may materialise as an actual default or, or to a lesser extent, by a weakening in a counterparty’s credit quality. The actual default will result in an immediate loss whereas, the lower credit quality will more likely lead to mark-to-market adjustment.

Transactions involving derivatives are only entered into with counterparties having an appropriate internal credit rating that has been validated by the credit research team and approved by the relevant credit committee. Appropriate counterparty exposure limits will be set and agreed by these committees and the existing credit exposures will be assessed against these limits. iv) Operational risk can be defined as the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. Operational risk also includes the breakdown of processes to comply with laws, regulations or directives.

Operational Risk Management An Operational Risk Management Framework is in place to identify, manage and monitor appropriate operational risks, including professional liability risks, to which the Management Company and the funds are or could be reasonably exposed. The operational risk management activities are performed independently as part of one of the functions of the Risk Division.

The Group’s Risk Management Framework is based upon the Basel II definition of operational risk which is “the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events”.

The Group’s management of operational risk is therefore aimed at identifying risks in existing processes and improving existing controls to reduce their likelihood of failure and the impact of losses. The Group has developed a framework that embodies continuous improvement to internal controls and ensures that the management of risk is embedded in the culture of the Group.

The identification, management, monitoring and resolution of events, risks and controls are facilitated via the Group's risk management system, Shield. The system is designed to facilitate the convergence of governance, risk and compliance programmes and automate a comprehensive review and assessment of operational risks. 12 ASI Sustainable Index UK Equity Fund

ASI Sustainable Index UK Equity Fund

For the period from 12 November 2020 to 31 May 2021

Investment Objective: prospectus of this sustainable approach, including details of the To generate growth over the long term (5 years or more) by MSCI methodology, under “Fund Benchmark”). tracking the return of the MSCI United Kingdom IMI Select ESG Climate Solutions Target Index (the “Index”). Derivatives and Techniques • The fund may use derivatives to reduce risk, reduce cost and/ Performance Target: To match the return of the Index (before or generate additional income or growth consistent with the charges). The Performance Target is the level of performance risk profile of the fund (often referred to as “Efficient Portfolio that the management team hopes to achieve for the fund. There Management”). is however no certainty or promise that they will achieve the Performance Target. • Where derivatives are used, this would typically be to maintain allocations to company shares while meeting cash inflows or The Manager believes this is an appropriate target for the fund outflows. Where these are large relative to the size of the fund, based on the investment policy of the fund and the constituents of derivative usage may be significant for limited periods of time. the Index. • Derivative usage in the fund otherwise is expected to be very Investment Policy limited. Portfolio Securities • The fund will invest at least 90% in equities (company shares) • The fund may use derivatives which do not comply with the and equity related securities (such as depositary receipts) of sustainable approach applied by the Index. companies that make up the Index. Performance Review • The fund will typically invest directly but may also invest indirectly when deemed appropriate in order to meet its The ASI Sustainable Index UK Equity Fund returned 15.50% objective. (B1 Accumulation units) over the review period. This was compared with a return of 15.12% for its Index. (Source: Lipper for the period • Indirect investment may be achieved via derivatives. ending to 31 May 2021).

• The fund may also invest in other funds (including those In terms of activity and composition, the fund continues to mirror managed by Aberdeen Standard Investments), money-market the MSCI United Kingdom IMI Select ESG Climate Solutions Target instruments, and cash. Index. In order to maintain exposure in line with the Index, the fund periodically rebalances. Management Process • The fund uses passive management techniques (including The fund continues to meet the specified sustainability goals with indexation and sampling) to achieve the fund’s objective. reference to carbon, ESG (environmental, social and governance) and green revenues. In terms of sector, the sustainability • The management team use their discretion (specifically when outcomes of the Index result in greater exposure to industrials and using sampling techniques) in deciding which investments are financials and lower exposure to energy and materials than the to be included in the portfolio. The number of investments may Parent Index, MSCI UK IMI Index. vary. Market Review • They anticipate that deviation from the performance of the Index ("tracking error") will be in the region of 0.0 - 0.5% per The six-month review period was a strong one for global equities, year. Factors likely to affect the ability of the fund to achieve this including UK stocks. The pandemic continued to put strain on tracking error are transaction costs, small illiquid components, the economy, as investors grappled with the economic fallout. dividend reinvestment, fund expenses such as annual However, markets had largely adapted to this constrained management charges, significant inflows/ outflows and cash environment, and were also underpinned by ongoing government management. and central bank support. Investor sentiment also improved on the back of a highly successful domestic vaccine rollout. By the end of • The tracking error may be affected if the times at which the the review period, almost 40 million people in the UK had received fund and the Index are priced are different. their first vaccine dose, with over 25 million being fully vaccinated.

• The Index is composed of a subset of equity securities within The review period started off well, as vaccine rollouts began in the MSCI UK IMI Index (the “Parent Index”). Unlike the Parent countries across the world. However, the discovery of a new, highly Index, the Index incorporates a sustainable approach by contagious coronavirus strain in the UK led to the introduction applying higher weights to constituent companies with stronger of new lockdown tiers, which negatively affected UK equities. Environmental, Social and Governance (ESG) scores, lower By the end of December, more than three quarters of England’s carbon footprints (as measured by the MSCI carbon intensity population was under the most severe restrictions. But markets score) and a higher exposure to clean technology solutions. were optimistic over the COVID-19 vaccines, and also reacted In addition, the Index excludes companies which are involved positively to the late Brexit deal on Christmas Eve. This positive in certain controversial activities (see further details in the momentum took a brief pause in January 2021, and UK equities ASI Sustainable Index UK Equity Fund 13

dipped slightly, before picking up again in February and thereafter. Supportive government policy, with Chancellor Rishi Sunak pledging an additional £65 billion in emergency support measures for workers and businesses, drove markets upwards. Easing lockdown restrictions, positive earnings results and an impressive vaccine rollout also benefited UK equities.

In UK economic news, although fourth-quarter GDP numbers were revised upwards to 1.3% quarter-on-quarter, first-quarter 2021 numbers showed a 1.5% quarterly decline thanks to nationwide lockdowns. Still, the Bank of England raised its 2021 GDP growth forecast to 7.25%, and noted that rising inflation numbers were most likely temporary.

Outlook

The economic outlook in both the short term and long term is particularly uncertain at the moment. A strong rebound in global economic activity is expected as the vaccine rollout progresses, economies open up more fully and fiscal and monetary stimulus continue to support growth. While higher inflation is expected, this reflects base effects, distortions introduced by the pandemic and bottleneck price pressures as the service sector reopens. Sustained inflation is unlikely, so major central banks will likely maintain accommodative policy stances over the next few years. This central economic backdrop is supportive for equities and other risk assets, albeit much of this is reflected in current valuations.

Quantitative Investments Team June 2021

14 ASI Sustainable Index UK Equity Fund

Risk and reward profile

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

Risk and reward indicator table as at 31 May 2021.

The fund is rated as 5 because of the extent to which the following risk factors apply:

• A concentrated portfolio may be more volatile and less liquid than a more broadly diversified one. The fund’s investments are concentrated in a particular country or sector.

• The use of derivatives carries the risk of reduced liquidity, substantial loss and increased volatility in adverse market conditions, such as a failure amongst market participants. The use of derivatives may result in the fund being leveraged (where market exposure and thus the potential for loss by the fund exceeds the amount it has invested) and in these market conditions the effect of leverage will be to magnify losses.

• The fund invests in equity and equity related securities. These are sensitive to variations in the stock markets which can be volatile and change substantially in short periods of time.

All investment involves risk. This fund offers no guarantee against loss or that the fund’s objective will be attained.

The price of assets and the income from them may go down as well as up and cannot be guaranteed; an investor may receive back less than their original investment.

Inflation reduces the buying power of your investment and income.

The value of assets held in the fund may rise and fall as a result of exchange rate fluctuations.

The fund could lose money if an entity (counterparty) with which it does business becomes unwilling or unable to honour its obligations to the fund.

In extreme market conditions some securities may become hard to value or sell at a desired price. This could affect the fund’s ability to meet redemptions in a timely manner.

The fund could lose money as the result of a failure or delay in operational processes and systems including but not limited to third party providers failing or going into administration. ASI Sustainable Index UK Equity Fund 15

Comparative Tables B1 Class AccumulationA 31 May 2021

Closing net asset value (£'000) 2,177

Closing number of units 1,896,377

Closing net asset value per unit (pence) 114.80

Change in net asset value per unit 14.80%

Operating charges 0.15%

B2 Class AccumulationB 31 May 2021

Closing net asset value (£'000) 363

Closing number of units 325,210

Closing net asset value per unit (pence) 111.71

Change in net asset value per unit 11.71%

Operating charges 0.15%

X5 Class AccumulationC 31 May 2021

Closing net asset value (£'000) 11,497

Closing number of units 10,000,000

Closing net asset value per unit (pence) 114.97

Change in net asset value per unit 14.97%

Operating charges 0.08%

The closing net asset value (£’000) divided by the closing number of units may not calculate to the closing net asset value per unit (p) due to rounding differences. The published closing net asset value per unit (p) is based on unrounded values and represents the actual price. Operating charges are expenses associated with the maintenance and administration of the fund on a day to day basis that are actually borne by the unit class. A B1 Class Accumulation unit class was launched on 25 November 2020. B B2 Class Accumulation unit class was launched on 28 January 2021. C X5 Class Accumulation unit class was launched on 12 November 2020. 16 ASI Sustainable Index UK Equity Fund

Portfolio Statement As at 31 May 2021 Market Percentage Value of total Holding Investment £'000 net assets Exchange Traded Funds 238 1.70

34,250 iShares Core FTSE 100 UCITS ETF 238 1.70

Equities 13,622 97.04

UK Equities 13,358 95.16

Basic Materials 1,204 8.57

14,952 Antofagasta 231 1.64 19,483 Centamin 21 0.15 2,817 Central Asia Metals+ 8 0.05 2,039 Croda International 142 1.01 12,383 Glencore 40 0.28 5,443 Hochschild Mining 11 0.08 4,817 Johnson Matthey 147 1.05 1,440 Mondi 27 0.20 9,510 Rio Tinto 577 4.11

Communications 769 5.48

2,750 Airtel Africa 2 0.02 420 Ascential 1 0.01 449 ASOS+ 22 0.16 575 Auto Trader 3 0.02 81,547 BT 143 1.02 273 Future 8 0.06 12,880 Informa 70 0.50 57,359 ITV 74 0.52 4,503 Pearson 37 0.26 1,434 Reach 3 0.02 1,964 Rightmove 12 0.08 2,519 Trainline 7 0.05 202,495 Vodafone 260 1.85 13,046 WPP 127 0.91

Consumer, Cyclical 1,612 11.48

5,145 888 21 0.15 1,375 AO World 4 0.02 111 Aston Martin Lagonda Global 2 0.02 9,546 Barratt Developments 72 0.51 1,066 Bellway 38 0.27 2,216 Berkeley 104 0.74 3,994 boohoo+ 13 0.09 ASI Sustainable Index UK Equity Fund 17

Market Percentage Value of total Holding Investment £‘000 net assets 2,450 Bunzl 56 0.40 4,184 Burberry 89 0.64 2,478 Cineworld 2 0.02 12,340 Compass 199 1.41 912 Countryside Properties 5 0.03 4,258 Crest Nicholson 19 0.14 15,719 Dixons Carphone 21 0.15 471 Dunelm 7 0.05 3,893 Entain 64 0.46 2,285 Ferguson 219 1.56 147 Frasers 1 0.01 54 Games Workshop 6 0.05 420 Gamesys 8 0.05 2,854 Halfords 11 0.08 8,424 Howden Joinery 67 0.48 5,930 Inchcape 46 0.33 698 InterContinental Hotels 34 0.24 610 J D Wetherspoon 8 0.06 2,008 JD Sports Fashion 19 0.13 21,806 Kingfisher 79 0.56 2,236 Mitchells & Butlers 7 0.05 1,012 Next 83 0.59 944 On the Beach 4 0.03 1,329 Persimmon 42 0.30 4,136 Pets at Home 19 0.13 1,886 Restaurant 2 0.02 44,204 SIG 27 0.19 27,661 Taylor Wimpey 47 0.34 3,327 Travis Perkins 55 0.39 3,077 Vistry 41 0.29 1,264 WH Smith 22 0.15 1,546 Whitbread 49 0.35

Consumer, Non-cyclical 4,493 32.01

452 Abcam+ 6 0.05 2,916 Ashtead 150 1.07 3,042 Associated British Foods 71 0.50 8,876 AstraZeneca 714 5.09 4,432 Britvic 40 0.29 48,134 Capita 19 0.14 12,266 ConvaTec 29 0.21 938 Cranswick 37 0.26 296 CVS+ 6 0.05 942 Dechra Pharmaceuticals 39 0.28 20,104 Diageo 684 4.88 4,686 Experian 127 0.90 18 ASI Sustainable Index UK Equity Fund

Market Percentage Value of total Holding Investment £‘000 net assets 311 Fevertree Drinks+ 8 0.06 36,066 GlaxoSmithKline 485 3.45 479 Greggs 12 0.08 26,014 Hays 45 0.32 453 Hikma Pharmaceuticals 11 0.08 705 Hotel Chocolat+ 3 0.02 1,060 Indivior 2 0.01 1,276 Intertek 69 0.49 4,660 IWG 17 0.12 48,983 J Sainsbury 130 0.93 42,296 Marks & Spencer 70 0.50 2,202 Marston's 2 0.01 10,688 Mediclinic International 35 0.25 18,239 Mitie 12 0.09 2,713 Ocado 51 0.36 12,744 Premier Foods 13 0.10 3,950 QinetiQ 14 0.10 5,126 Reckitt Benckiser 326 2.32 14,693 Redde Northgate 57 0.40 16,199 RELX 298 2.12 12,581 Rentokil Initial 60 0.42 1,034 Savills 12 0.09 4,599 Smith & Nephew 71 0.50 10,516 Spire Healthcare 26 0.18 3,649 SSP 11 0.08 15,210 Unilever 643 4.58 49,904 Wm Morrison Supermarkets 88 0.63

Energy 798 5.69

168,429 BP 516 3.67 26,767 Cairn Energy 43 0.31 2,787 Energean 21 0.15 8,367 Hunting 22 0.16 4,556 ITM Power+ 18 0.13 17,568 John Laing 71 0.50 33,983 John Wood 83 0.59 18,352 Petrofac 24 0.18

Financial 3,270 23.30

10,799 3i 134 0.96 22,411 abrdn 62 0.44 1,026 Admiral 30 0.21 4,729 Ashmore 19 0.13 52,439 Aviva 216 1.54 898 Bank of Georgia 12 0.08 ASI Sustainable Index UK Equity Fund 19

Market Percentage Value of total Holding Investment £‘000 net assets 104,331 Barclays 191 1.36 1,353 Big Yellow REIT 18 0.13 2,670 BMO Commercial Property Trust REIT 2 0.02 6,846 Brewin Dolphin 23 0.17 14,458 British Land REIT 74 0.53 2,857 Close Brothers 47 0.33 927 Derwent London REIT 32 0.23 10,221 Direct Line Insurance 30 0.22 1,016 Funding Circle 2 0.01 8,526 Grainger 24 0.17 2,023 Great Portland Estates REIT 15 0.10 58,671 Hammerson REIT 23 0.17 4,028 Helical 18 0.13 2,052 Hiscox 16 0.11 120,464 HSBC 548 3.91 707 Intermediate Capital 15 0.11 22,458 Investec 70 0.50 13,492 Jupiter Fund Management 37 0.27 6,400 Just 7 0.05 5,056 Land Securities REIT 36 0.25 67,709 Legal & General 192 1.37 484,177 Lloyds Banking 242 1.72 2,091 London Stock Exchange 158 1.13 14,914 M&G 36 0.26 15,764 Melrose Industries 27 0.19 31,505 Natwest 65 0.46 2,064 Network International 8 0.06 6,943 Phoenix 51 0.36 17,436 Prudential 262 1.86 10,902 RSA Insurance 75 0.53 1,958 Schroders 70 0.50 17,936 Segro REIT 187 1.33 992 Shaftesbury REIT 6 0.04 8,996 Sirius Real Estate 9 0.07 3,510 St James's Place 49 0.35 20,692 Standard Chartered 105 0.75 1,956 UNITE REIT 22 0.16 494 Workspace REIT 5 0.03

Industrial 612 4.36

14,114 Balfour Beatty 44 0.31 289 Diploma 8 0.06 2,047 DS Smith 9 0.06 252 Halma 7 0.05 753 Hill & Smith 11 0.08 1,772 HomeServe 17 0.12 20 ASI Sustainable Index UK Equity Fund

Market Percentage Value of total Holding Investment £‘000 net assets 2,811 IMI 47 0.33 519 Keller 4 0.03 4,514 Marshalls 33 0.24 10,699 Meggitt 54 0.39 1,534 Morgan Sindall 34 0.24 2,932 National Express 9 0.06 53,085 Rolls-Royce 57 0.40 5,523 Rotork 19 0.13 6,238 Royal Mail 36 0.26 4,655 Senior 7 0.05 8,006 Signature Aviation 32 0.23 3,706 Smiths 57 0.41 298 Spectris 10 0.07 551 Spirax-Sarco Engineering 70 0.50 465 Ultra Electronics 10 0.07 4,479 Watkin Jones+ 10 0.07 1,432 Weir 27 0.20

Technology 134 0.95

1,987 Avast 9 0.07 187 Blue Prism+ 2 0.01 79 Computacenter 2 0.01 1,783 GB+ 17 0.12 6,574 Micro Focus International 34 0.24 2,534 NCC 8 0.05 271 Playtech 1 0.01 9,336 Sage 61 0.44

Utilities 466 3.32

37,831 Centrica 21 0.15 28,820 National Grid 271 1.93 2,887 Pennon 30 0.22 564 Severn Trent 14 0.10 4,023 SSE 62 0.44 6,927 United Utilities 68 0.48

Continental Europe Equities 264 1.88

Ireland 174 1.24

5,152 C&C 12 0.09 1,343 C&C Rights 1 0.00 1,421 DCC 85 0.61 2,110 Grafton 25 0.18 19,547 Greencore 28 0.20 ASI Sustainable Index UK Equity Fund 21

Market Percentage Value of total Holding Investment £‘000 net assets 2,162 UDG Healthcare 23 0.16

Switzerland 90 0.64

3,520 Coca-Cola HBC 90 0.64

Derivatives 6 0.04

Futures 6 0.04

4 FTSE 100 Index Future 18/06/2021 6 0.04

Total investment assets and liabilities 13,866 98.78

Net other assets 171 1.22

Total net assets 14,037 100.00

All investments (excluding OTC derivatives) are listed on recognised stock exchanges and are approved securities, regulated collective investment schemes or approved derivatives within the meaning of the FCA rules. There are no comparative figures shown as the Fund launched on 12 November 2020. + AIM listed. 22 ASI Sustainable Index UK Equity Fund

Statement of total return For the period from 12 November 2020 to 31 May 2021 12 November 2020 to 31 May 2021 £'000 £'000 Income:

Net capital gains 1,419

Revenue 199

Expenses (5)

Net revenue before taxation 194

Taxation –

Net revenue after taxation 194

Total return before distributions 1,613

Equalisation 18

Change in net assets attributable to unitholders from investment activities 1,631

Statement of change in net assets attributable to unitholders For the period from 12 November 2020 to 31 May 2021 12 November 2020 to 31 May 2021 £'000 £'000 Opening net assets attributable to unitholders – Amounts receivable on the issue of units 14,367 Amounts payable on the cancellation of units (1,961) 12,406 Change in net assets attributable to unitholders from investment activities (see above) 1,631

Closing net assets attributable to unitholders 14,037

Note: The fund launched on 12 November 2020, therefore no comparatives have been presented. ASI Sustainable Index UK Equity Fund 23

Balance sheet As at 31 May 2021 31 May 2021 £'000 £'000

Assets:

Fixed assets:

Investment assets 13,866

Current assets:

Debtors 942

Cash and bank balances 98

1,040

Total assets 14,906 Liabilities:

Creditors (869)

(869)

Total liabilities (869)

Net assets attributable to unitholders 14,037

Note: The fund launched on 12 November 2020, therefore no comparatives have been presented.

Since the period end, markets and operations have continued to be disrupted by the effects of the COVID-19 pandemic. Since the period end, the NAV per unit of B1 Class Accumulation unit class has decreased by 2.96% (to 19 July 2021). Contingency plans at the Manager and key service suppliers have proven effective in mitigating the effects on management of the portfolio and on all supporting operations. 24 ASI Sustainable Index World Equity Fund

ASI Sustainable Index World Equity Fund

For the period from 12 November 2020 to 31 May 2021

Investment Objective: prospectus for this sustainable approach, including details of To generate growth over the long term (5 years or more) by the MSCI methodology, under “Fund Benchmark”). tracking the return of the MSCI World Select ESG Climate Solutions Target Index (the “Index”). Derivatives and Techniques • The fund may use derivatives to reduce risk, reduce cost and/ Performance Target: To match the return of the Index (before or generate additional income or growth consistent with the charges). The Performance Target is the level of performance risk profile of the fund (often referred to as “Efficient Portfolio that the management team hopes to achieve for the fund. There Management”). is however no certainty or promise that they will achieve the Performance Target. • Where derivatives are used, this would typically be to maintain allocations to company shares while meeting cash inflows or The Manager believes this is an appropriate target for the fund outflows. Where these are large relative to the size of the fund, based on the investment policy of the fund and the constituents of derivative usage may be significant for limited periods of time. the Index. • Derivative usage in the fund otherwise is expected to be very Investment Policy limited. Portfolio Securities • The fund will invest at least 90% in equities (company shares) • The fund may use derivatives which do not comply with the and equity related securities (such as depositary receipts) of sustainable approach applied by the Index. companies that make up the Index. Performance Review • The fund will typically invest directly but may also invest indirectly when deemed appropriate in order to meet its The ASI Sustainable Index World Equity fund returned 9.60% objective. (B1 Accumulation units) over the review period. This was compared with a return of 9.24% for its Index. (Source: Lipper for the period • Indirect investment may be achieved via derivatives. ending to 31 May 2021).

• The fund may also invest in other funds (including those In terms of activity and composition, the fund continues to mirror managed by Aberdeen Standard Investments), money-market the MSCI World Select ESG Climate Solutions Target Index. In order instruments, and cash. to maintain exposure in line with the Index, the fund periodically rebalances. Management Process • The fund uses passive management techniques (including The fund continues to meet its specified sustainability goals with indexation and sampling) to achieve the fund’s objective. reference to carbon, ESG (environmental, social and governance) and green revenues. In terms of sector allocation, the sustainability • The management team use their discretion (specifically when outcomes of the Index result in greater exposure to information using sampling techniques) in deciding which investments are technology and industrials and lower exposure to consumer to be included in the portfolio. The number of investments may discretionary and communication services than the Parent Index, vary. MSCI World Index.

• They anticipate that deviation from the performance of the Market Review Index ("tracking error") will be in the region of 0.0 - 0.5% per year. Factors likely to affect the ability of the fund to achieve this Global equity markets rose over the last six months, with most tracking error are transaction costs, small illiquid components, major world indices seeing double-digit growth. The pandemic dividend reinvestment, fund expenses such as annual continued to put strain on economies around the world, and new management charges, significant inflows/ outflows and cash variants of the virus added further uncertainty and led to the management. reimposition of lockdowns. However, markets had largely adapted to this constrained environment, and many markets were also • The tracking error may be affected if the times at which the underpinned by ongoing government and central bank support. fund and the Index are priced are different. Investor sentiment also improved on the back of largely successful vaccine rollouts. Chinese equities notably lagged the rest of the • The Index is composed of a subset of equity securities within world, amid slower domestic vaccine progress and increasing the MSCI World Index (the “Parent Index”). Unlike the Parent regulatory scrutiny in the technology sector, but still saw positive Index, the Index incorporates a sustainable approach by performance. applying higher weights to constituent companies with stronger Environmental, Social and Governance (ESG) scores, lower The review period started off well, as vaccine rollouts began in carbon footprints (as measured by the MSCI carbon intensity countries across the world. Then, the discovery of a new, highly score) and a higher exposure to clean technology solutions. contagious COVID-19 strain in the UK negatively affected global In addition, the Index excludes companies which are involved stocks. However, optimism concerning the vaccine rollouts offset in certain controversial activities (see further details in the the bad news. With the UK and European Union finally reaching ASI Sustainable Index World Equity Fund 25

a last-minute Brexit agreement, equity markets rebounded at the end of December 2020. Momentum stalled again in January and February 2021, amid concerns that the extraordinary level of government spending that has supported the economy would lead to rising inflation. As a result, global bond markets experienced a marked sell-off, spurring worries that this could impact the fragile global recovery. This also negatively affected equities. However, stock markets resumed their upward momentum, and recoveries continued apace in April. This was despite an alarming rise in COVID-19 cases in India and renewed outbreaks, particularly in Asia. From mid-May, investor focus shifted to corporate earnings announcements, which were generally better than expected. While some travel-related areas remain challenged, worldwide vaccine rollouts continue to accelerate. This has allowed businesses to reopen and the recovery to broaden out, as reflected in the better hiring data and upward earnings revisions.

Outlook

The ramp up of COVID-19 vaccine rollouts and positive economic data releases added fuel to an expected sharp economic rebound in 2021. With a recovery in sight, investors moved into cyclical companies at the expense of growth companies in late 2020, which has continued into 2021 to-date. Low policy rates and extra fiscal expenditure are supportive for equities. Meanwhile, low bond yields have underpinned equity valuations that look stretched. A rise in long-term rates on inflation worries will likely cause spikes in market volatility. Weak corporate earnings, policy mistakes or vaccine setbacks, particularly around their effectiveness regarding new variants of the virus, could also cause sharp sell-offs.

Quantitative Investments Team June 2021

26 ASI Sustainable Index World Equity Fund

Risk and reward profile

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

Risk and reward indicator table as at 31 May 2021.

The fund is rated as 5 because of the extent to which the following risk factors apply:

• The fund may not perform fully in line with the index which it is tracking because of factors which may include transaction costs, timing and holding mismatching, or in the event of extreme market disruption.

• The fund invests in equity and equity related securities. These are sensitive to variations in the stock markets which can be volatile and change substantially in short periods of time.

• The fund may invest in companies with Variable Interest Entity (VIE) structures in order to gain exposure to industries with foreign ownership restrictions. There is a risk that investments in these structures may be adversely affected by changes in the legal and regulatory framework.

• Investing in China A shares involves special considerations and risks, including greater price volatility, a less developed regulatory and legal framework, exchange rate risk/controls, settlement, tax, quota, liquidity and regulatory risks.

• The use of derivatives carries the risk of reduced liquidity, substantial loss and increased volatility in adverse market conditions, such as a failure amongst market participants. The use of derivatives may result in the fund being leveraged (where market exposure and thus the potential for loss by the fund exceeds the amount it has invested) and in these market conditions the effect of leverage will be to magnify losses.

• The use of derivatives carries the risk of reduced liquidity, substantial loss and increased volatility in adverse market conditions, such as a failure amongst market participants. The use of derivatives may result in the fund being leveraged (where market exposure and thus the potential for loss by the fund exceeds the amount it has invested) and in these market conditions the effect of leverage will be to magnify losses.

All investment involves risk. This fund offers no guarantee against loss or that the fund’s objective will be attained.

The price of assets and the income from them may go down as well as up and cannot be guaranteed; an investor may receive back less than their original investment.

Inflation reduces the buying power of your investment and income.

The value of assets held in the fund may rise and fall as a result of exchange rate fluctuations.

The fund could lose money if an entity (counterparty) with which it does business becomes unwilling or unable to honour its obligations to the fund.

In extreme market conditions some securities may become hard to value or sell at a desired price. This could affect the fund’s ability to meet redemptions in a timely manner.

The fund could lose money as the result of a failure or delay in operational processes and systems including but not limited to third party providers failing or going into administration. ASI Sustainable Index World Equity Fund 27

Comparative Tables B1 Class AccumulationA 31 May 2021

Closing net asset value (£'000) 4,131

Closing number of units 3,786,347

Closing net asset value per unit (pence) 109.11

Change in net asset value per unit 9.11%

Operating charges 0.15%

X5 Class AccumulationB 31 May 2021

Closing net asset value (£'000) 32,915

Closing number of units 30,000,000

Closing net asset value per unit (pence) 109.72

Change in net asset value per unit 9.72%

Operating charges 0.08%

The closing net asset value (£’000) divided by the closing number of units may not calculate to the closing net asset value per unit (p) due to rounding differences. The published closing net asset value per unit (p) is based on unrounded values and represents the actual price. Operating charges are expenses associated with the maintenance and administration of the fund on a day to day basis that are actually borne by the unit class. A B1 Class Accumulation unit class was launched on 25 November 2020. B X5 Class Accumulation unit class was launched on 12 November 2020. 28 ASI Sustainable Index World Equity Fund

Portfolio Statement As at 31 May 2021 Market Percentage Value of total Holding Investment £'000 net assets

Equities 36,257 97.87

UK Equities 1,582 4.27

Basic Materials 197 0.53

2,390 Antofagasta 37 0.10 624 Croda International 43 0.12 1,635 Johnson Matthey 50 0.13 1,194 Mondi 23 0.06 726 Rio Tinto 44 0.12

Communications 104 0.28

10,644 BT 19 0.05 1,881 Informa 10 0.03 31,450 Vodafone 40 0.11 3,562 WPP 35 0.09

Consumer, Cyclical 204 0.55

1,602 Barratt Developments 12 0.03 644 Berkeley 30 0.08 1,142 Burberry 24 0.06 1,101 Compass 18 0.05 366 Entain 6 0.02 524 Ferguson 50 0.13 295 InterContinental Hotels 15 0.04 9,997 Kingfisher 36 0.10 72 Next 6 0.02 227 Whitbread 7 0.02

Consumer, Non-cyclical 532 1.44

267 Associated British Foods 6 0.02 1,354 AstraZeneca 109 0.29 601 Coca-Cola Europacific Partners 26 0.07 3,727 Diageo 127 0.34 3,838 GlaxoSmithKline 51 0.14 143 Intertek 8 0.02 15,035 J Sainsbury 40 0.11 472 Reckitt Benckiser 30 0.08 4,142 RELX 76 0.21 805 Rentokil Initial 4 0.01 1,016 Unilever 43 0.12 ASI Sustainable Index World Equity Fund 29

Market Percentage Value of total Holding Investment £‘000 net assets 6,841 Wm Morrison Supermarkets 12 0.03

Energy 82 0.22

26,848 BP 82 0.22

Financial 340 0.92

1,286 3i 16 0.04 7,506 Aviva 31 0.08 5,017 British Land REIT 26 0.07 9,952 HSBC 45 0.12 727 Land Securities REIT 5 0.02 10,701 Legal & General 30 0.08 65,568 Lloyds Banking 33 0.09 251 London Stock Exchange 19 0.05 2,450 Natwest 5 0.01 1,846 Prudential 28 0.08 877 Schroders 31 0.09 4,747 Segro REIT 50 0.13 4,224 Standard Chartered 21 0.06

Industrial 20 0.05

9,173 Rolls-Royce 10 0.02 640 Smiths 10 0.03

Utilities 103 0.28

6,010 National Grid 56 0.15 2,392 SSE 37 0.10 963 United Utilities 10 0.03

Asian Equities 3,024 8.16

Japan 2,563 6.92

1,900 Aeon 36 0.10 200 Ajinomoto 3 0.01 3,000 Asahi Kasei 23 0.06 3,100 Astellas Pharma 36 0.10 1,100 Azbil 31 0.08 300 Central Japan Railway 31 0.08 1,100 Chugai Pharmaceutical 30 0.08 400 CyberAgent 6 0.02 400 Dai Nippon Printing 6 0.02 600 Dai-ichi Life 9 0.02 30 ASI Sustainable Index World Equity Fund

Market Percentage Value of total Holding Investment £‘000 net assets 1,600 Daiichi Sankyo 26 0.07 300 Daikin Industries 42 0.11 800 Daiwa House Industry 16 0.04 800 Denso 39 0.10 1,700 East Japan Railway 84 0.23 700 Eisai 33 0.09 3,400 ENEOS 10 0.03 100 Fast Retailing 57 0.15 400 Fujitsu 46 0.12 1,300 Hankyu Hanshin 28 0.08 600 Hitachi 22 0.06 100 Hitachi Construction Machinery 2 0.01 600 Hitachi Metals 8 0.02 1,700 Honda Motor 37 0.10 900 Ibiden 29 0.08 6,000 Inpex 29 0.08 5,000 ITOCHU 104 0.28 500 Kansai Paint 9 0.03 500 Kao 22 0.06 4,400 KDDI 105 0.28 400 Keio 17 0.05 100 Keyence 35 0.09 100 Kikkoman 5 0.01 300 Kintetsu 7 0.02 800 Kirin 11 0.03 1,700 Komatsu 35 0.09 1,300 Kubota 21 0.06 100 Kyowa Kirin 2 0.01 800 Marubeni 5 0.01 100 Mercari 3 0.01 300 Mitsubishi Estate 3 0.01 200 Mitsubishi Heavy Industries 4 0.01 900 Mitsui Fudosan 15 0.04 100 Miura 3 0.01 2,700 Mizuho Financial 29 0.08 1,400 MS&AD Insurance 30 0.08 200 Murata Manufacturing 11 0.03 300 Nabtesco 10 0.03 400 NEC 13 0.04 100 Nintendo 44 0.12 300 Nippon Express 17 0.05 3 Nippon Prologis REIT 7 0.02 1,300 Nippon Telegraph & Telephone 24 0.07 400 Nitto Denko 22 0.06 5,400 Nomura 21 0.06 14 Nomura Real Estate Master Fund REIT 16 0.04 500 Nomura Research Institute 11 0.03 ASI Sustainable Index World Equity Fund 31

Market Percentage Value of total Holding Investment £‘000 net assets 1,800 Obayashi 11 0.03 800 Odakyu Electric Railway 15 0.04 1,300 Omron 72 0.19 300 Ono Pharmaceutical 5 0.01 200 Oriental Land 21 0.06 1,600 ORIX 20 0.05 5,500 Panasonic 44 0.12 1,200 Recruit 43 0.12 7,700 Resona 23 0.06 3,300 Sekisui Chemical 40 0.11 2,000 Sekisui House 29 0.08 1,500 SG 24 0.06 300 Shimadzu 7 0.02 2,200 Shimizu 13 0.03 400 Shionogi 14 0.04 100 Shiseido 5 0.01 300 SoftBank 3 0.01 1,100 SoftBank Group 58 0.16 200 Sohgo Security Services 6 0.02 1,200 Sompo 34 0.09 1,900 Sony 132 0.36 900 Stanley Electric 19 0.05 12,900 Sumitomo Chemical 50 0.13 400 Sumitomo Dainippon Pharma 5 0.01 800 Sumitomo Metal Mining 25 0.07 1,400 Sumitomo Mitsui Financial 36 0.10 1,900 Sumitomo Mitsui Trust 46 0.12 400 Sysmex 29 0.08 800 T&D 8 0.02 100 Taisei 2 0.01 1,500 Takeda Pharmaceutical 36 0.10 800 Tokio Marine 27 0.07 300 Tokyo Century 12 0.03 100 Tokyo Electron 31 0.08 1,100 Tokyo Gas 15 0.04 3,600 Tokyu 34 0.09 2,600 Toray Industries 12 0.03 100 TOTO 4 0.01 1,100 Toyota Motor 64 0.17 1,200 West Japan Railway 48 0.13 300 Yamaha 13 0.03 600 Yamaha Motor 12 0.03 300 Yaskawa Electric 10 0.03 1,100 Yokogawa Electric 12 0.03 4,300 Z 14 0.04 32 ASI Sustainable Index World Equity Fund

Market Percentage Value of total Holding Investment £‘000 net assets

Hong Kong 315 0.85

8,600 AIA 77 0.21 14,500 BOC Hong Kong 37 0.10 2,700 Hang Seng Bank 40 0.11 1,500 Hong Kong Exchanges & Clearing 66 0.18 1,248 Melco Resorts & Entertainment ADR 15 0.04 13,500 MTR 53 0.14 1,000 Swire Pacific 5 0.01 10,600 Swire Properties 22 0.06

Singapore 146 0.39

8,100 CapitaLand 16 0.04 21,300 CapitaLand Integrated Commercial Trust REIT 24 0.06 3,700 City Developments 15 0.04 2,500 DBS 40 0.11 13,200 Keppel 37 0.10 11,400 Singapore Telecommunications 14 0.04

Continental Europe Equities 6,696 18.08

Italy 220 0.59

1,771 Assicurazioni Generali 26 0.07 7,008 Enel 48 0.13 306 Eni 3 0.01 59,257 Intesa Sanpaolo 123 0.33 3,701 Terna Rete Elettrica Nazionale 20 0.05

Finland 141 0.38

421 Kesko 10 0.03 1,285 Neste 60 0.16 6,666 Nokia 24 0.06 979 UPM-Kymmene 26 0.07 2,189 WartsilaAbp 21 0.06

Sweden 401 1.08

456 Assa Abloy 10 0.03 479 Atlas Copco 'A' 21 0.05 214 Atlas Copco 'B' 8 0.02 2,265 Boliden 64 0.17 1,335 Essity 33 0.09 85 Evolution 11 0.03 ASI Sustainable Index World Equity Fund 33

Market Percentage Value of total Holding Investment £‘000 net assets 1,122 H & M Hennes & Mauritz 20 0.05 413 ICA Gruppen 14 0.04 1,804 Lundin Energy 44 0.12 1,197 Sandvik 22 0.06 1,936 Skandinaviska Enskilda Banken 17 0.05 3,056 Svenska Cellulosa AB 36 0.10 1,721 Svenska Handelsbanken 14 0.04 650 Swedbank 8 0.02 2,633 Tele2 25 0.07 1,319 Telefonaktiebolaget LM Ericsson 12 0.03 13,692 Telia Co 42 0.11

Germany 941 2.54

234 adidas 60 0.16 730 Allianz 135 0.36 892 BASF 51 0.14 227 Bayerische Motoren Werke 17 0.05 146 Bayerische Motoren Werke (Preference shares) 9 0.02 72 Brenntag 5 0.01 2,304 Commerzbank 13 0.04 574 Deutsche Bank 6 0.02 405 Deutsche Boerse 47 0.13 1,185 Deutsche Post 57 0.15 2,577 E.ON 22 0.06 222 Henkel 15 0.04 1,033 Infineon Technologies 29 0.08 574 Merck KGaA 73 0.20 290 MTU Aero Engines 53 0.14 273 Muenchener Rueckversicherungs-Gesellschaftin Muenchen 55 0.15 450 Puma 36 0.10 1,493 SAP 146 0.39 905 Siemens 103 0.28 165 TeamViewer 5 0.01 1,850 Telefonica Deutschland 4 0.01

Ireland 787 2.12

896 Accenture 178 0.48 336 Allegion 33 0.09 996 CRH 37 0.10 432 DCC 26 0.07 389 Eaton 40 0.11 133 Flutter Entertainment 18 0.04 168 Horizon Therapeutics 11 0.03 91 Jazz Pharmaceuticals 11 0.03 34 ASI Sustainable Index World Equity Fund

Market Percentage Value of total Holding Investment £‘000 net assets 3,421 Johnson Controls International 160 0.43 193 Kerry 18 0.05 158 Kingspan 11 0.03 469 Linde 99 0.27 285 Medtronic 25 0.07 96 STERIS 13 0.03 817 Trane Technologies 107 0.29

Spain 373 1.01

288 Amadeus IT 15 0.04 22,561 Banco Bilbao Vizcaya Argentaria 100 0.27 2,769 CaixaBank 7 0.02 10,290 Iberdrola 97 0.26 1,842 Industria de Diseno Textil 50 0.14 911 Naturgy Energy 17 0.04 2,250 Red Electrica 32 0.09 5,362 Repsol 50 0.14 195 Siemens Gamesa Renewable Energy 5 0.01

France 1,215 3.28

165 Accor 5 0.01 964 Alstom 38 0.10 494 Atos 23 0.06 6,143 AXA 119 0.32 956 BNP Paribas 46 0.12 265 Bouygues 8 0.02 1,457 Carrefour 21 0.06 75 Cie de Saint-Gobain 4 0.01 197 Cie Generale des Etablissements Michelin 21 0.06 1,555 CNP Assurances 20 0.05 192 Covivio REIT 13 0.04 373 Credit Agricole 4 0.01 331 Credit Agricole Rights – 0.00 1,138 Danone 57 0.16 75 Dassault Systemes 12 0.03 202 Edenred 8 0.02 185 Edenred Rights – 0.00 85 Eurazeo 5 0.02 414 Gecina REIT 46 0.13 81 Kering 52 0.14 764 Klepierre REIT 16 0.04 425 L'Oreal 135 0.36 133 LVMH Moet Hennessy Louis Vuitton 75 0.20 6,670 Natixis 23 0.06 ASI Sustainable Index World Equity Fund 35

Market Percentage Value of total Holding Investment £‘000 net assets 541 Orange 5 0.01 222 Pernod Ricard 34 0.09 131 Publicis Groupe 6 0.02 267 Renault 8 0.02 1,143 Schneider Electric 127 0.34 1,473 Societe Generale 33 0.09 155 Teleperformance 42 0.11 3,627 TotalEnergies 118 0.32 464 Unibail-Rodamco-Westfield REIT 28 0.08 1,030 Valeo 24 0.06 959 Vivendi 24 0.07 59 Wendel 6 0.02 138 Worldline 9 0.03

Switzerland 1,269 3.43

1,515 ABB 36 0.10 76 Adecco 4 0.01 462 Alcon 23 0.06 2 Barry Callebaut 3 0.01 350 Chubb 42 0.11 554 Cie Financiere Richemont 47 0.13 762 Coca-Cola HBC 20 0.05 544 Credit Suisse 4 0.01 53 Geberit 27 0.07 21 Givaudan 66 0.18 297 Kuehne + Nagel International 70 0.19 242 Lonza 110 0.30 2,772 Nestle 240 0.65 753 Novartis 46 0.13 637 Roche 156 0.42 11 SGS 24 0.06 25 Sonova 6 0.02 1,321 Swiss Re 89 0.24 140 Swisscom 55 0.15 595 TE Connectivity 57 0.15 4,112 UBS 47 0.13 260 Vifor Pharma 27 0.07 237 Zurich Insurance 70 0.19

Israel 99 0.27

8,113 Bank Hapoalim 49 0.13 2,093 Bank Leumi Le-Israel 11 0.03 89 CyberArk Software 8 0.02 36 ASI Sustainable Index World Equity Fund

Market Percentage Value of total Holding Investment £‘000 net assets 169 Wix.com 31 0.09

Netherlands 545 1.47

3,386 Aegon 11 0.03 628 Akzo Nobel 57 0.15 494 ASML 233 0.63 2,181 CNH Industrial 26 0.07 176 Heineken 15 0.04 3,505 ING 34 0.09 11,507 Koninklijke 27 0.07 611 Koninklijke Ahold Delhaize 12 0.03 226 Koninklijke DSM 29 0.08 219 Koninklijke DSM Rights – 0.00 627 Koninklijke Vopak 21 0.06 17 NXP Semiconductors 3 0.01 275 Prosus 20 0.05 395 STMicroelectronics 10 0.03 689 Wolters Kluwer 47 0.13

Belgium 139 0.38

777 Anheuser-Busch InBev 41 0.11 918 KBC 53 0.14 34 UCB 2 0.01 1,008 Umicore 43 0.12

Denmark 355 0.96

293 Carlsberg 38 0.10 65 Chr Hansen 4 0.01 37 Coloplast 4 0.01 23 Genmab 6 0.02 2,219 Novo Nordisk 124 0.33 345 Novozymes 18 0.05 563 Orsted 60 0.16 188 Pandora 18 0.05 3,049 Vestas Wind Systems 83 0.23

Norway 104 0.28

1,465 Norsk Hydro 7 0.02 4,108 Orkla 30 0.08 5,540 Telenor 67 0.18 ASI Sustainable Index World Equity Fund 37

Market Percentage Value of total Holding Investment £‘000 net assets

Austria 67 0.18

1,334 OMV 54 0.14 208 Verbund 13 0.04

Portugal 40 0.11

4,539 Galp Energia 40 0.11

North America Equities 24,095 65.04

United States 22,728 61.35

1,265 3M 181 0.49 1,048 Abbott Laboratories 86 0.23 1,613 AbbVie 128 0.35 73 ABIOMED 15 0.04 301 Activision Blizzard 21 0.06 595 Adobe 211 0.57 930 Advanced Micro Devices 52 0.14 990 Agilent Technologies 96 0.26 17 Air Products and Chemicals 4 0.01 97 Align Technology 40 0.11 180 Allstate 17 0.05 1,303 Ally Financial 50 0.14 35 Alnylam Pharmaceuticals 3 0.01 242 Alphabet 'A' 401 1.08 298 Alphabet 'C' 506 1.36 379 Amazon.com 860 2.32 19 AMERCO 8 0.02 1,824 American Express 205 0.55 543 American International 20 0.05 477 American Tower REIT 86 0.23 165 Ameriprise Financial 30 0.08 234 AmerisourceBergen 19 0.05 791 Amgen 132 0.36 447 Analog Devices 52 0.14 178 ANSYS 42 0.11 162 Anthem 45 0.12 14,924 Apple 1,308 3.53 1,591 Applied Materials 155 0.42 683 Aptiv 72 0.19 437 Archer-Daniels-Midland 20 0.06 40 Arista Networks 10 0.03 2,791 AT&T 58 0.16 334 Autodesk 67 0.18 801 Automatic Data Processing 110 0.30 38 ASI Sustainable Index World Equity Fund

Market Percentage Value of total Holding Investment £‘000 net assets 3,464 Baker Hughes 59 0.16 505 Ball 29 0.08 6,662 Bank of America 199 0.54 1,705 Bank of New York Mellon 62 0.17 192 Becton Dickinson and Company 33 0.09 638 Berkshire Hathaway 130 0.35 1,009 Best Buy 83 0.22 248 Biogen 47 0.13 149 BioMarin Pharmaceutical 8 0.02 275 BlackRock 170 0.46 36 Booking 60 0.16 458 BorgWarner 17 0.04 352 Boston Properties REIT 29 0.08 2,508 Bristol-Myers Squibb 116 0.31 20 Broadcom 7 0.02 367 Brown-Forman 21 0.06 902 Bunge 55 0.15 5 Cable One 6 0.02 581 Cadence Design Systems 52 0.14 198 Caesars Entertainment 15 0.04 672 Campbell Soup 23 0.06 999 Cardinal Health 39 0.11 630 Carrier Global 20 0.05 14 Carvana 3 0.01 670 Caterpillar 114 0.31 1,409 CBRE 87 0.23 309 Centene 16 0.04 179 Cerner 10 0.03 197 CH Robinson Worldwide 13 0.04 886 Charles Schwab 46 0.12 447 Cheniere Energy 27 0.07 17 Chipotle Mexican Grill 16 0.04 632 Cigna 115 0.31 5,328 Cisco Systems 198 0.54 2,439 Citigroup 135 0.36 263 Citizens Financial 9 0.02 305 Citrix Systems 25 0.07 317 Clorox 39 0.11 49 Cloudflare 3 0.01 271 CME 42 0.11 4,846 Coca-Cola 188 0.51 306 Cognex 17 0.05 438 Cognizant Technology Solutions 22 0.06 1,286 Colgate-Palmolive 76 0.20 3,464 Comcast 140 0.38 181 Conagra Brands 5 0.01 1,116 Consolidated Edison 61 0.16 ASI Sustainable Index World Equity Fund 39

Market Percentage Value of total Holding Investment £‘000 net assets 273 Copart 25 0.07 1,204 Corning 37 0.10 652 Corteva 21 0.06 84 Costco Wholesale 22 0.06 34 Crowdstrike 5 0.01 246 Crown Castle International REIT 33 0.09 893 CSX 63 0.17 535 Cummins 97 0.26 1,425 CVS Health 87 0.23 43 Danaher 8 0.02 285 Darden Restaurants 29 0.08 256 DaVita 22 0.06 310 Deere 79 0.21 165 Dell Technologies 11 0.03 110 Delta Air Lines 4 0.01 501 DENTSPLY SIRONA 24 0.06 122 Dexcom 32 0.09 157 Digital Realty Trust REIT 17 0.05 124 Discovery 'A' 3 0.01 730 Discovery 'C' 15 0.04 84 DocuSign 12 0.03 208 Dow 10 0.03 754 DuPont de Nemours 45 0.12 470 eBay 20 0.05 922 Ecolab 140 0.38 1,376 Edwards Lifesciences 93 0.25 281 Elanco Animal Health 7 0.02 98 Electronic Arts 10 0.03 928 Eli Lilly 130 0.35 125 Enphase Energy 13 0.03 173 Equinix REIT 90 0.24 127 Equitable 3 0.01 232 Equity Residential REIT 13 0.03 96 Estee Lauder 21 0.06 75 Etsy 9 0.02 1,229 Eversource Energy 70 0.19 120 Exact Sciences 9 0.02 2,235 Exelon 71 0.19 1,232 Expeditors International of Washington 109 0.29 1,957 Facebook 453 1.22 123 FactSet Research Systems 29 0.08 710 Fastenal 26 0.07 103 FedEx 23 0.06 136 Fidelity National Information Services 14 0.04 235 Fiserv 19 0.05 75 Fortinet 12 0.03 47 Fortive 2 0.01 40 ASI Sustainable Index World Equity Fund

Market Percentage Value of total Holding Investment £‘000 net assets 280 Fortune Brands Home & Security 20 0.05 250 Franklin Resources 6 0.02 17 Generac 4 0.01 7,377 General Electric 73 0.20 1,174 General Mills 52 0.14 1,939 Gilead Sciences 90 0.24 244 Goldman Sachs 64 0.17 2,624 Halliburton 41 0.11 402 Hasbro 27 0.07 381 HCA Healthcare 58 0.16 2,262 Healthpeak Properties REIT 53 0.14 38 HEICO 4 0.01 202 HEICO Corporation 19 0.05 7,043 Hewlett Packard Enterprise 79 0.21 318 Hilton Worldwide 28 0.08 518 Hologic 23 0.06 1,285 Home Depot 288 0.78 581 Hormel Foods 20 0.05 1,393 Host Hotels & Resorts REIT 17 0.05 838 Howmet Aerospace 21 0.06 2,205 HP 45 0.12 40 HubSpot 14 0.04 142 Humana 44 0.12 3,566 Huntington Bancshares 40 0.11 221 IDEXX Laboratories 87 0.23 1,105 IHS Markit 82 0.22 327 Illinois Tool Works 53 0.14 160 Illumina 46 0.12 182 Insulet 34 0.09 4,698 Intel 189 0.51 1,679 International Business Machines 170 0.46 392 International Flavors & Fragrances 39 0.11 1,218 Interpublic Group of Companies 29 0.08 360 Intuit 111 0.30 60 Intuitive Surgical 36 0.10 1,581 Invesco 32 0.09 448 Iron Mountain REIT 14 0.04 2,330 Johnson & Johnson 277 0.75 1,949 JPMorgan Chase 225 0.61 295 Kansas City Southern 62 0.17 1,565 Kellogg 72 0.19 533 Keurig Dr Pepper 14 0.04 1,679 KeyCorp 27 0.07 483 Keysight Technologies 48 0.13 566 Kimberly-Clark 52 0.14 1,198 Kroger 31 0.08 483 L3Harris Technologies 74 0.20 ASI Sustainable Index World Equity Fund 41

Market Percentage Value of total Holding Investment £‘000 net assets 110 Laboratory of America 21 0.06 200 Lam Research 91 0.25 188 Lamb Weston 11 0.03 87 Las Vegas Sands 4 0.01 45 Lennox International 11 0.03 416 Lincoln National 20 0.05 47 Live Nation Entertainment 3 0.01 424 LKQ 15 0.04 86 Loews 4 0.01 809 Lowe's 111 0.30 76 Lululemon Athletica 17 0.05 732 Marathon Petroleum 32 0.09 33 Marriott International 3 0.01 869 Marsh & McLennan 85 0.23 646 Marvell Technology 22 0.06 344 Masco 15 0.04 876 Mastercard 222 0.60 324 Maxim Integrated Products 23 0.06 588 McCormick 37 0.10 180 McDonald's 30 0.08 52 MercadoLibre 50 0.13 2,763 Merck 148 0.40 821 MetLife 38 0.10 65 Mettler-Toledo International 59 0.16 1,673 MGM Resorts International 50 0.14 873 Micron Technology 52 0.14 7,370 Microsoft 1,295 3.50 190 Moderna 25 0.07 76 Mohawk Industries 11 0.03 1,406 Molson Coors Beverage 58 0.16 37 MongoDB 8 0.02 214 Moody's 50 0.14 2,023 Morgan Stanley 129 0.35 1,448 Mosaic 37 0.10 291 Motorola Solutions 42 0.11 318 Netflix 112 0.30 1,644 Newell Brands 33 0.09 963 Newmont 50 0.13 4,390 NextEra Energy 226 0.61 1,191 NIKE 114 0.31 385 Norfolk Southern 76 0.21 839 Northern Trust 72 0.19 796 NortonLifeLock 15 0.04 109 Novavax 11 0.03 61 Novocure 9 0.02 742 NVIDIA 339 0.92 239 Okta 37 0.10 42 ASI Sustainable Index World Equity Fund

Market Percentage Value of total Holding Investment £‘000 net assets 216 Omnicom 12 0.03 852 ON Semiconductor 24 0.06 1,410 ONEOK 52 0.14 865 Oracle 48 0.13 755 Owens Corning 57 0.15 132 PACCAR 8 0.02 160 Parker-Hannifin 35 0.09 55 Paycom Software 13 0.03 1,060 PayPal 194 0.52 1,997 PepsiCo 208 0.56 1,880 Pfizer 51 0.14 733 Phillips 66 43 0.12 327 Pinterest 15 0.04 610 Plug Power 13 0.04 600 PNC Financial Services 82 0.22 45 Pool 14 0.04 282 PPG Industries 36 0.10 284 Principal Financial 13 0.04 2,566 Procter & Gamble 243 0.66 393 Progressive 27 0.07 1,374 Prologis REIT 114 0.31 940 Prudential Financial 71 0.19 182 PTC 17 0.05 719 Public Service Enterprise 31 0.08 567 QUALCOMM 54 0.14 443 Quest Diagnostics 41 0.11 88 Regency Centers REIT 4 0.01 52 Regeneron Pharmaceuticals 18 0.05 3,365 Regions Financial 55 0.15 353 ResMed 51 0.14 58 RingCentral 11 0.03 553 Robert Half International 35 0.09 186 Rockwell Automation 35 0.09 77 Roku 19 0.05 91 Roper Technologies 29 0.08 411 Royal Caribbean Cruises 27 0.07 257 S&P Global 69 0.18 1,219 salesforce.com 204 0.55 73 SBA Communications REIT 15 0.04 5,901 Schlumberger 130 0.35 318 Sempra Energy 30 0.08 250 ServiceNow 83 0.22 309 Sherwin-Williams 62 0.17 90 Simon Property REIT 8 0.02 201 Skyworks Solutions 24 0.06 546 Slack Technologies 17 0.05 591 Snap 26 0.07 ASI Sustainable Index World Equity Fund 43

Market Percentage Value of total Holding Investment £‘000 net assets 77 Snap-on 14 0.04 23 Snowflake 4 0.01 22 SolarEdge Technologies 4 0.01 287 Splunk 24 0.07 316 Square 49 0.13 889 Starbucks 71 0.19 930 State Street 57 0.15 270 Steel Dynamics 12 0.03 468 Sunrun 15 0.04 126 SVB Financial 52 0.14 356 Sysco 20 0.05 464 T Rowe Price 62 0.17 572 Target 91 0.25 281 Teladoc Health 30 0.08 126 Teledyne Technologies 37 0.10 747 Tesla 329 0.89 1,577 Texas Instruments 211 0.57 307 Thermo Fisher Scientific 101 0.27 932 TJX 44 0.12 181 Tractor Supply 23 0.06 65 TransDigm 30 0.08 423 Travelers 48 0.13 940 Trimble 51 0.14 1,429 Truist Financial 62 0.17 188 Twilio 44 0.12 326 Twitter 13 0.04 614 Uber Technologies 22 0.06 205 UGI 7 0.02 534 Union Pacific 84 0.23 464 United Parcel Service 70 0.19 39 United Rentals 9 0.02 740 UnitedHealth 214 0.58 172 Vail Resorts 40 0.11 451 Valero Energy 26 0.07 88 Ventas REIT 3 0.01 3,059 Verizon Communications 122 0.33 553 Vertex Pharmaceuticals 81 0.22 748 VF 42 0.11 834 ViacomCBS 25 0.07 529 Viatris 6 0.02 1,816 Visa 291 0.78 318 VMware 35 0.10 341 Voya Financial 16 0.04 779 Walgreens Boots Alliance 29 0.08 1,867 Walt Disney 235 0.63 257 Waters 58 0.16 48 Wayfair 10 0.03 44 ASI Sustainable Index World Equity Fund

Market Percentage Value of total Holding Investment £‘000 net assets 331 Welltower REIT 17 0.05 324 West Pharmaceutical Services 79 0.21 121 Western Digital 6 0.02 878 Western Union 15 0.04 2,494 Weyerhaeuser REIT 67 0.18 651 Williams 12 0.03 268 Workday 43 0.12 136 WW Grainger 44 0.12 256 Xilinx 23 0.06 1,632 Xylem 136 0.37 80 Zebra Technologies 28 0.08 49 Zillow 4 0.01 711 Zoetis 88 0.24 145 Zoom Video Communications 34 0.09

Canada 1,367 3.69

608 Agnico Eagle Mines 30 0.08 526 AltaGas 7 0.02 2,460 B2Gold 9 0.02 926 Ballard Power Systems 11 0.03 1,061 Bank of Montreal 78 0.21 1,769 Bank of Nova Scotia 84 0.23 472 BlackBerry 3 0.01 1,953 Brookfield Asset Management 68 0.18 2,422 CAE 52 0.14 989 Cameco 14 0.04 853 Canadian Imperial Bank of Commerce 70 0.19 117 Canadian Tire 14 0.04 1,869 Enbridge 50 0.13 813 First Quantum Minerals 14 0.04 367 Franco-Nevada 38 0.10 515 George Weston 35 0.10 1,145 Gildan Activewear 29 0.08 94 Intact Financial 9 0.02 1,079 Inter Pipeline 11 0.03 132 Keyera 2 0.01 63 Lightspeed POS 3 0.01 734 Loblaw 32 0.09 3,287 Lundin Mining 25 0.07 392 Magna International 27 0.07 2,375 Manulife Financial 35 0.09 418 Metro 14 0.04 676 National Bank of Canada 37 0.10 625 Nutrien 27 0.07 383 Pembina Pipeline 9 0.02 176 Ritchie Bros Auctioneers 7 0.02 ASI Sustainable Index World Equity Fund 45

Market Percentage Value of total Holding Investment £‘000 net assets 1,195 Rogers Communications 43 0.12 1,473 Royal Bank of Canada 106 0.29 133 Shopify 115 0.31 1,213 Sun Life Financial 46 0.12 193 TC Energy 7 0.02 70 TELUS 1 0.00 2,494 TELUS (Non-Canadian shares) 39 0.11 2,293 Toronto-Dominion Bank 116 0.31 232 West Fraser Timber 13 0.03 644 Wheaton Precious Metals 22 0.06 195 WSP Global 15 0.04

Pacific Equities 860 2.32

Australia 777 2.10

139 Ampol 2 0.01 4,702 APA 24 0.06 750 Aristocrat Leisure 17 0.05 692 ASX 29 0.08 1,317 Aurizon 3 0.01 2,071 Australia & New Zealand Banking 32 0.09 4,736 Brambles 28 0.08 238 Cochlear 29 0.08 539 Coles 5 0.01 743 Commonwealth Bank of Australia 40 0.11 361 CSL 57 0.15 4,705 Dexus REIT 27 0.07 2,157 Fortescue Metals 26 0.07 3,020 GPT REIT 8 0.02 3,020 Insurance Australia 8 0.02 1,530 Lendlease 10 0.03 448 Macquarie 37 0.10 24,396 Mirvac REIT 37 0.10 1,436 National Australia Bank 21 0.06 753 Newcrest Mining 12 0.03 440 Northern Star Resources 3 0.01 11,841 Oil Search 23 0.06 155 Ramsay Health Care 5 0.01 5,287 Santos 19 0.05 285 SEEK 5 0.01 10,440 Stockland REIT 27 0.07 9,076 Sydney Airport 29 0.08 3,970 Tabcorp 11 0.03 7,188 Transurban 54 0.15 6,500 Vicinity Centres REIT 6 0.01 2,810 Westpac Banking 40 0.11 46 ASI Sustainable Index World Equity Fund

Market Percentage Value of total Holding Investment £‘000 net assets 8,682 Woodside Petroleum 103 0.28

Macau 48 0.13

15,200 Sands China 48 0.13

New Zealand 35 0.09

4,376 Auckland International Airport 16 0.04 227 Fisher & Paykel Healthcare 4 0.01 5,663 Meridian Energy 15 0.04

Derivatives 10 0.03

Forward Currency Contracts (2) 0.00

Buy GBP 33,140 Sell USD 46,000 09/06/2021 1 0.00 Buy GBP 960,795 Sell USD 1,319,382 09/06/2021 33 0.09 Buy GBP 1,001,851 Sell USD 1,375,000 09/06/2021 34 0.09 Buy GBP 1,036,178 Sell USD 1,467,000 09/06/2021 4 0.01 Buy USD 51,000 Sell GBP 36,651 09/06/2021 (1) 0.00 Buy USD 108,500 Sell GBP 79,252 09/06/2021 (3) (0.01) Buy USD 193,000 Sell GBP 139,621 09/06/2021 (4) (0.01) Buy USD 195,000 Sell GBP 140,631 09/06/2021 (3) (0.01) Buy USD 196,000 Sell GBP 140,677 09/06/2021 (3) (0.01) Buy USD 198,000 Sell GBP 142,484 09/06/2021 (3) (0.01) Buy USD 204,000 Sell GBP 147,498 09/06/2021 (4) (0.01) Buy USD 204,000 Sell GBP 145,101 09/06/2021 (2) 0.00 Buy USD 205,000 Sell GBP 149,485 09/06/2021 (5) (0.01) Buy USD 207,000 Sell GBP 148,530 09/06/2021 (3) (0.01) Buy USD 208,000 Sell GBP 146,572 09/06/2021 – 0.00 Buy USD 209,000 Sell GBP 149,857 09/06/2021 (3) (0.01) Buy USD 210,000 Sell GBP 148,475 09/06/2021 (1) 0.00 Buy USD 300,000 Sell GBP 217,501 09/06/2021 (6) (0.01) Buy USD 308,000 Sell GBP 224,402 09/06/2021 (8) (0.02) Buy USD 435,000 Sell GBP 314,152 09/06/2021 (8) (0.02) Buy USD 610,000 Sell GBP 432,015 09/06/2021 (3) (0.01) Buy USD 1,096,025 Sell GBP 785,418 09/06/2021 (14) (0.04)

Futures 12 0.03

1 MSCI EAFE NYF 30/06/2021 2 0.00 4 S&P 500 EMINI CME 18/06/2021 10 0.03 ASI Sustainable Index World Equity Fund 47

Market Percentage Value of total Holding Investment £‘000 net assets Total investment assets and liabilities 36,267 97.90

Net other assets 779 2.10

Total net assets 37,046 100.00

All investments (excluding OTC derivatives) are listed on recognised stock exchanges and are approved securities, regulated collective investment schemes or approved derivatives within the meaning of the FCA rules. There are no comparative figures shown as the fund launched on 12 November 2020. 48 ASI Sustainable Index World Equity Fund

Statement of total return For the period from 12 November 2020 to 31 May 2021 12 November 2020 to 31 May 2021 £'000 £'000 Income:

Net capital gains 2,736

Revenue 364

Expenses (15)

Interest payable and similar charges (5)

Net revenue before taxation 344

Taxation (49)

Net revenue after taxation 295

Total return before distributions 3,031

Equalisation 18

Change in net assets attributable to unitholders from investment activities 3,049

Statement of change in net assets attributable to unitholders For the period from 12 November 2020 to 31 May 2021 12 November 2020 to 31 May 2021 £'000 £'000 Opening net assets attributable to unitholders – Amounts receivable on the issue of units 34,064 Amounts payable on the cancellation of units (67) 33,997 Change in net assets attributable to unitholders from investment activities (see above) 3,049

Closing net assets attributable to unitholders 37,046

Note: The fund launched on 12 November 2020, therefore no comparatives have been presented. ASI Sustainable Index World Equity Fund 49

Balance sheet As at 31 May 2021 31 May 2021 £'000 £'000

Assets:

Fixed assets:

Investment assets 36,341

Current assets:

Debtors 742

Cash and bank balances 736

1,478

Total assets 37,819 Liabilities:

Investment liabilities (74)

Creditors (541)

Bank overdrafts (158)

(699)

Total liabilities (773)

Net assets attributable to unitholders 37,046

Note: The fund launched on 12 November 2020, therefore no comparatives have been presented.

Since the period end, markets and operations have continued to be disrupted by the effects of the COVID-19 pandemic. Since the period end, the NAV per unit of B1 Class Accumulation unit class has increased by 3.93% (to 19 July 2021). Contingency plans at the Manager and key service suppliers have proven effective in mitigating the effects on management of the portfolio and on all supporting operations. 50 Aberdeen Standard ACS I

Securities Financing Transactions Disclosure

Additional disclosures are required when a fund utilises Securities Financing Transactions (SFTs). However as none of the funds utilised SFTs for the period ended 31 May 2021, no additional disclosures have been provided. Aberdeen Standard ACS I 51

Further Information

Aberdeen Standard Authorised Contractual Scheme (ACS) I was incorporated on 12 November 2020, incorporated under the FCA Regulations. The Scheme is an Authorised Contractual Scheme (ACS) with variable capital under the Financial Conduct Authority’s Collective Investment Schemes Sourcebook (the “COLL Sourcebook”) and Financial Conduct Authority’s Investment Funds Sourcebook (“FUND”).

Consumers’ rights and protections, including any derived from EU legislation, are currently unaffected by the result of the UK referendum to leave the European Union and will remain unchanged unless and until the UK Government changes the applicable legislation.

Documentation Copies of the current Prospectus and Key Investor Information Documents (KIIDs) for the Aberdeen Standard ACS I, together with the latest Annual (and if issued later the interim) Report and Accounts for any Fund, are available to download at www.aberdeenstandard.com. A paper copy of the Report and Accounts is available on request from the ACS Manager.

The Annual Report of the Scheme will be published on or before 31 March and the half-yearly report on or before 31 July in each year.

Notices/Correspondence Please send any notices to Aberdeen Standard Fund Managers Limited, Sunderland, SR43 4DZ. Any notice to the ACS Manager will only be effective when actually received by the ACS Manager. All notices will be sent to the investor at the address set out in the Application form or the latest address which the investor has notified to the ACS Manager, and will be deemed to have been received three days after posting.

Events detailed in these terms and conditions will be carried out on the dates specified, unless the dates are a non-business day, when they will be carried out on the next business day.

Complaints and Compensation Complaints about the operation of the Scheme and the funds may be made to the ACS Manager by email: [email protected] or by post to Aberdeen Standard Fund Managers Limited at PO Box 3733, Royal Wootton, Bassett, Swindon SN4 4BG.

Any complaint will be investigated and the outcome will be notified to the investor, within eight weeks. If the investor is not satisfied with the outcome, he/she may also write directly to the Financial Ombudsman Service, Exchange Tower, London E14 9SR. If the ACS Manager cannot meet its financial obligations to the investor, the investor may be entitled to compensation under the Investor’s Compensation Scheme, under the Financial Services Markets Act 2000. Details of the investor’s rights to compensation can be obtained from the ACS Manager on request.

Personal taxation Unless your units are held within an ISA, if you sell your units this is treated as a disposal for Capital Gains Tax purposes. Tax rules can change. The value to an investor of the tax advantages of an ISA will depend on personal circumstances, which may change.

Unitholders are recommended to consult with their professional tax advisers if they are in any doubt about their position.

52 Aberdeen Standard ACS I

The above document is strictly for information purposes only and should not be considered as an offer, investment recommendation or solicitation, to deal in any of the investments or funds mentioned herein and does not constitute investment research. Aberdeen Standard Fund Managers Limited (Aberdeen Standard Investments) does not warrant the accuracy, adequacy or completeness of the information and materials. Any research or analysis used in the preparation of this document has been procured by Aberdeen Standard Investments for its own use and may have been acted on for its own purpose. The results thus obtained are made available only coincidentally and the information is not guaranteed as to its accuracy. Some of the information in this document may contain projections or other forward looking statements regarding future events or future financial performance of countries, markets or companies. These statements are only predictions and actual events or results may differ materially. The reader must make their own assessment of the relevance, accuracy and adequacy of the information contained in this document and make such independent investigations, as they may consider necessary or appropriate for the purpose of such assessment. Any opinion or estimate contained in this document is made on a general basis and is not to be relied on by the reader as advice. Neither Aberdeen Standard Investments nor any of its employees, associated group companies or agents have given any consideration to nor have they or any of them made any investigation of the investment objectives, financial situation or particular need of the reader, any specific person or group of persons. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of the reader, any person or group of persons acting on any information, opinion or estimate contained in this document. Aberdeen Standard Investments reserves the right to make changes and corrections to any information in this document at any time, without notice.

Issued by Aberdeen Standard Fund Managers Limited. Authorised and regulated by the Financial Conduct Authority in the United Kingdom.

Important Information Unless otherwise indicated, this document refers only to the investment products, teams, processes and opinions of Aberdeen Standard Investments as at the date of publication.

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