Part of the Schroders Group

Charity Equity Income Fund

30 June 2021 Marketing material for eligibile charities only. Sue Noffke Investment objective and policy Fund Manager The SUTL Cazenove Charity Equity Income Fund aims to provide a portfolio yield in excess of the FTSE All-Share Index, through investing predominately in UK equities. The income provision will be the primary objective. The Fund’s secondary target is to provide capital growth in order that its total return exceeds that of the FTSE All-Share Index over rolling five-year periods. Matt Bennison Fund Manager Subject to cash being reasonably held for redemptions and expenses, it is the intention of the Fund to remain fully invested except where market conditions necessitate the use of a defensive investment strategy which involves the holding of cash or near cash.

*On 8 June 2018 the fund converted to a Charity Authorised (CAIF) structure, the performance shown below has been obtained predominantly under the old Common Investment Fund (CIF) structure. The objective and strategy remain the same. However, the revised Ongoing Charges (OCF) no longer include VAT. Technical information Strategy launch 02 December 2002 Performance analysis date*

Performance (%) 1 month 3 months 6 months YTD 1 year 3 years 5 years 10 years Total fund size 58.4 million Fund -1.1 5.8 10.1 10.1 24.4 1.1 32.7 92.3 (£) # Benchmark 0.2 5.6 11.1 11.1 21.5 6.3 36.9 85.5 Total number of 41 # holdings # Discrete yearly Jun 2020 - Jun 2019 - Jun 2018 - Jun 2017 - Jun 2016 - Unit price end of 86.71 GBX performance (%) Jun 2021 Jun 2020 Jun 2019 Jun 2018 Jun 2017 month (£) Fund 24.4 -15.1 -4.4 8.5 21.0 FTSE All-Share Total Benchmark Benchmark 21.5 -13.0 0.6 9.0 18.1 Return # Sue Noffke Fund manager # Performance over 5 years (%) Matt Bennison # Ex Distribution 31 Mar, 30 Jun, 40 Dates 30 Sep, 31 Dec 35 28 Feb, 31 May, Payment dates 30 31 Aug, 30 Nov # 25 Latest payment 0.95p # 20 Distribution yield 4.0% # 15 No tobacco Ethical restriction 10 manufacturers 5 Purchase information 0 Acc: BF784F4 -5 SEDOL Inc: BF784G5 Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 Jun-20 Dec-20 Jun-21 Acc: SUTCEIA LN Bloomberg Fund Benchmark Inc: SUTCEAI LN Acc: GB00BF784F45 ISIN The return received may rise or fall as a result of currency fluctuations. Inc: GB00BF784G51 Past performance is not a reliable indicator of future results, prices of shares and the income from Fund base GBP them may fall as well as rise and investors may not get back the amount originally invested. There is currency no guarantee that the objective will be met. Dealing Daily (12:00 GMT) Some performance differences between the Fund and the benchmark may arise because the Fund frequency

performance is calculated at a different valuation point from the benchmark. Ongoing charges 0.52% Source: Schroders, mid price with net income reinvested, net of the ongoing charges and portfolio costs and, (OCF) where applicable, performance fees. Minimum

FTSE International Limited (“FTSE”). “FTSE” is a trade mark of the Stock Exchange Group of companies and investment £10,000 is used by FTSE International Limited under licence. All rights in the FTSE indices vest in FTSE and/or its licensors. amount Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices or underlying data. No further distribution of FTSE data is permitted without FTSE’s express written consent. Holdings analysis Risk considerations Top 10 Holdings Sector % NAV The following risks may affect fund performance. Currency risk: The fund 1 AstraZeneca PLC Health Care 6.0 can be exposed to different currencies. Changes in foreign exchange rates 2 Glaxosmithkline PLC Health Care 5.4 could create losses. Derivatives risk: A may not perform as 3 Basic Materials 5.1 expected, and may create losses greater than the cost of the derivative. 4 Legal & General Group PLC Financials 4.9 Equity risk: Equity prices fluctuate daily, based on many factors including 5 BHP Group Basic Materials 4.7 general, economic, industry or company news. Liquidity risk: In difficult 6 Utilities 3.8 market conditions, the fund may not be able to sell a security for full value 7 PLC Basic Materials 3.5 or at all. This could affect performance and could cause the fund to defer or suspend redemptions of its shares. Operational risk: Failures at service 8 PLC Consumer Staples 3.4 providers could lead to disruptions of fund operations or losses. 9 PLC Consumer Staples 3.4 # BAE Systems PLC Industrials 3.1 Total 43.5

Asset allocation (%) Performance and portfolio activity Performance was ahead of the benchmark. The quarter saw the Value rally we Financials 23.1 witnessed from November 2020 (vaccine news) into Q1 2021 falter, as a 22.7 greater focus on inflation and central bank policy caused US bond yields to Basic Materials 15.9 9.5 subside back to March 21 levels. Concerns of peak GDP (gross domestic Consumer Disc. 12.4 product) and earnings per share upgrades led to a rotation in the market 12.3 away from reflation and reopening recovery plays and back to growth and Health Care 11.4 9.3 quality stocks rebounding and outperforming value areas. Industrials 9.2 12.7 Infrastructure group John Laing was the largest contributor. Its shares soared Consumer Staples 6.8 in May as private equity firm KKR agreed to buy the company in a deal 15.7 Fund representing more than a 25% premium on the share price at the time of the Utilities 6.2 Benchmark 3.0 May announcement. is just one example of UK businesses attracting the interest of overseas buyers as a result of UK equities Real Estate 5.9 3.1 undervaluation relative to other regions. Within financials, asset managers Energy 4.7 7.5 Polar Capital and Intermediate Capital share prices continued to climb higher. Intermediate Capital also increased their dividend by 10%. Telecommunications 2.6 2.3 Liquid Assets 1.0 On the negative side, our large positions in insurer Legal & General and inter- 0.0 dealer broker TP ICAP were significant detractors. As US bond yields slipped Technology 0.8 2.0 during the quarter, insurers also fell back given their sensitivity to such moves. For TP ICAP, the market reacted negatively to its purchase of electronic dealing network Liquidnet. Liquid Assets contain cash, deposits and money market instruments

with maturities of up to 397 days, which are respectively not part of the Our portfolio strategy focuses on companies exhibiting strong fundamentals, core investment objective and policy. The commitment linked to the attractive valuations and a robust outlook for income generation. We have equity index futures contracts, if present, is deducted from cash. added new positions mainly in mid-sized companies such as building materials Source: Schroders firm , cybersecurity company and recruitment consultant Hays. Travis Perkins focus on capital allocation could provide opportunities to reduce dividend cover, pay special dividends or conduct share buy backs, which would support shareholder returns. These were funded from our sale of John Laing following the KKR bid and exiting our holding in Ibstock.

The level of yield currently available from the UK market remains attractive – particularly versus other asset classes and geographies. Encouragingly, we continue to see companies restore their dividends and set payments heading back towards 2019 levels, after many companies suspended payments in early 2020 as the pandemic spread. In Q2 we saw return to paying for example. We are also seeing good levels of growth from businesses that have traded very well through the pandemic. Most recent examples include diversified financials Group and Intermediate Capital. We expect this improving trend to continue, with the elevated commodity price environment likely to lead to more large payouts from mining companies Anglo American, Rio Tinto and BHP Group in the second half of the year. For further information please contact Jeremy Barker, Portfolio Director, on 020 7658 1107 or [email protected]

Issued by Schroder & Co. Limited, trading as Cazenove Capital. Registered Office at 1 London Wall Place, London EC2Y 5AU. Registered 2280926 . Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. This document may include forward-looking statements that are based upon our current opinions, expectations and projections. We undertake no obligation to update or revise any forward looking statements. Actual results could differ materially from those anticipated in the forward-looking statements. Past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and an investor may not get back the amount originally invested and may be affected by fluctuations in exchange rates. Unless otherwise stated all data is sourced from Schroders and DataStream. Telephone calls may be recorded for training and monitoring purposes.