PHOENIX UNIT TRUST MANAGERS MANAGER’S INTERIM REPORT For the half year: 2 May 2020 to 1 November 2020 (unaudited) PUTM UK STOCK MARKET FUND (SERIES 3) Contents Investment review 2-3 Portfolio of investments 4-10 Top ten purchases and sales 11 Statistical information 12-14 Statements of total return & change in unitholders’ funds 15 Balance sheet 16 Distribution table 17 Corporate information 18-19 1 Investment review Dear Investor Performance Review Welcome to the PUTM Stock Market Series 3 Unit Trust Over the review period, the accumulation units in the interim report for the six months to 1 November 2020. PUTM Stock Market Series 3 Unit Trust returned 3.35% (Source: SSGA/HSBC for six months to 1/11/20). Over the same period, the FTSE 250 (ex Investment Trusts) Index returned +3.32% (Source: FactSet, FTSE 250 (ex Investment Trusts) Index for six months to 1/11/20). In the table below, you can see how the Fund performed against its benchmark over the last five discrete one-year periods. Standardised Past Performance Nov 19-20 Nov 18-19 Nov 17-18 Nov 16-17 Nov 15-16 % growth % growth % growth % growth % growth PUTM UK Stock Market (Series 3) Unit Trust -16.97 8.69 -5.08 18.76 3.26 FTSE 250 (ex Invt Trust) Index -16.98 8.90 -5.05 19.01 3.55 Source: Fund performance: SSGA and HSBC to 1 November for each year. Benchmark index performance: FactSet, FTSE 250 (ex Invt Trust) Index Total Return, to 1 November for each year. Past performance is not a guide to future performance. The value of units and the income from them can go down as well as up and is not guaranteed. You may not get back the full amount invested. Please note that all past perf ormance figures are calculated without taking the initial charge into account. 2 Investment review Market Review Market Outlook The FTSE 250 fell over the six-month period. After a The future shape of markets will be influenced by the rapid sell-off in February, caused by the outbreak of the new US president and Congress elections, the outcome of Covid-19 pandemic, the shares of mid-sized companies Brexit discussions, China’s next five-year plan and Covid- rebounded strongly from their March lows. 19 developments. The recent uplift in cyclical indicators As the period began, the UK government and Bank of is likely to continue, given supportive government and England (BoE) acted to reduce the coronavirus-related central bank policies. This should be positive for equity economic impact – cutting interest rates and announcing markets. a record spending package. Stocks rallied in April and accelerated in June as the economy began to reopen after months of economic lockdown. However, the recovery has been neither linear nor as strong as seen in many other developed markets. The BoE’s monetary policy committee held its main interest rate at 0.1% in early August. Speaking later at the Jackson Hole summit, Governor Andrew Bailey confirmed negative rates were ‘in the toolbox’. Brexit negotiations continued throughout the period, with several deadlines for a trade agreement proposed and missed. In September, fresh rows erupted over UK proposals to change customs procedures in Northern Ireland, previously laid out in the withdrawal agreement. The period ended with a sell-off in markets as Covid-19 infections climbed once more, nerves increased ahead of November’s US election results and some big tech names gave a somewhat lukewarm outlook for their prospects. Given the extremely stretched valuation of these companies, they led markets down. This also resulted in sector rotation, as investors moved away from large companies, with mid-sized and smaller companies outperforming their larger peers. 3 Portfolio of investments Investments held at 1 November 2020 Market Percentage of value total net assets Holding Investment £% United Kingdom (01/05/20 – 85.70%) 88.84 Aerospace & Defence (01/05/20 – 2.03%) 2.80 2,084 Avon Rubber 79,192 0.47 19,751 Chemring Group 51,254 0.30 58,119 Meggitt 158,142 0.93 41,002 QinetiQ 96,191 0.56 4,923 Ultra Electronics Holdings 91,912 0.54 Automobiles & Parts (01/05/20 – 0.24%) 0.34 46,238 Aston Martin Lagonda Global Holdings 24,853 0.14 17,227 TI Fluid Systems 33,593 0.20 Banks (01/05/20 – 1.08%) 1.13 92,422 CYBG 85,269 0.50 27,990 Onesavings Bank 84,250 0.50 2,459 TBC Bank Group 22,156 0.13 Beverages (01/05/20 – 1.05%) 0.85 19,911 Britvic 145,350 0.85 Chemicals (01/05/20 – 1.34%) 1.17 24,498 Synthomer 91,231 0.53 5,930 Victrex 108,697 0.64 Construction & Materials (01/05/20 – 2.98%) 2.48 51,347 Balfour Beatty 108,137 0.64 28,941 Ibstock 46,335 0.27 14,851 Marshalls Group 97,348 0.57 3,204 Morgan Sindall Group 34,283 0.20 14,636 Polypipe Group 67,033 0.39 16,521 Redrow 68,826 0.41 Electricity (01/05/20 – 0.47%) 0.65 13,197 ContourGlobal 25,048 0.15 29,326 Drax Group 85,456 0.50 Electronic & Electrical Equipment (01/05/20 – 3.37%) 3.69 20,179 Morgan Advanced Materials 49,237 0.29 3,646 Oxford Instruments 55,711 0.33 2,488 Renishaw 139,577 0.82 63,506 Rotork 177,690 1.04 8,381 Spectris 206,592 1.21 Financial Services (01/05/20 – 8.86%) 8.17 21,592 AJ Bell 89,823 0.53 33,542 Ashmore Group 120,013 0.70 20,984 Brewin Dolphin 49,942 0.29 11,128 Calisen 18,406 0.11 10,973 Close Brothers 116,753 0.69 16,156 Finablr 1,781 0.01 4 Portfolio of investments Investments held at 1 November 2020 Market Percentage of value total net assets Holding Investment £% Financial Services (continued) 26,306 IG Group Holdings 199,926 1.17 49,195 Investec 69,857 0.41 77,431 IP Group 60,551 0.36 36,958 John Laing Group 101,635 0.60 3,921 Liontrust Asset Management 47,052 0.28 33,037 Network International 68,849 0.40 24,597 Ninety One 50,965 0.30 19,490 Paragon 57,729 0.34 17,566 Provident Financial 40,437 0.24 129,780 Quilter 158,461 0.93 4,076 Rathbone Brothers 58,368 0.34 42,597 TP ICAP 79,784 0.47 Fixed Line Telecommunications (01/05/20 – 0.84%) 1.23 75,999 Airtel Africa 47,347 0.28 37,075 Helios Towers 59,468 0.35 45,504 TalkTalk Telecom Group 43,570 0.26 4,327 Telecom Plus 58,328 0.34 Food & Drug Retailers (01/05/20 – 0.76%) 0.55 7,260 Greggs 92,928 0.55 Food Producers (01/05/20 – 3.27%) 2.92 3,889 Cranswick 123,281 0.72 4,792 Hilton Food Group 55,396 0.33 50,697 Premier Foods 46,134 0.27 37,686 SSP Group 70,209 0.41 34,379 Tate and Lyle 202,217 1.19 Gas, Water & Multiutilities (01/05/20 – 0.00%) 0.94 435,527 Centrica 160,797 0.94 General Industrials (01/05/20 – 0.66%) 0.35 105,673 Coats Group 59,600 0.35 General Retailers (01/05/20 – 5.28%) 4.86 21,945 AO World 78,892 0.46 72 ,338 Dixons Carphone 69,155 0.41 7,330 Dunelm Group 95,803 0.56 14,556 Frasers Group 53,653 0.32 29,062 Inchcape 143,334 0.84 142,812 Marks & Spencer 126,646 0.74 35,490 Pets at Home Group 137,772 0.81 9,086 Watches of Switzerland Group 36,117 0.21 8,738 WHSmith 86,375 0.51 5 Portfolio of investments Investments held at 1 November 2020 Market Percentage of value total net assets Holding Investment £% Healthcare Equipment & Services (01/05/20 – 1.83%) 1.76 117,591 Convatec Group 215,779 1.27 30,048 Mediclinic International 83,654 0.49 Household Goods (01/05/20 – 3.27%) 2.72 9,065 Bellway 210,943 1.24 38,611 Countryside Properties 129,115 0.76 17,791 Crest Nicholson Holdings 38,891 0.23 15,484 Vistry Group 84,156 0.49 Industrial Engineering (01/05/20 – 2.96%) 3.75 13,659 Bodycote 88,101 0.52 5,732 Hill and Smith 68,325 0.40 19,660 IMI 202,891 1.19 19,280 Weir Group 279,946 1.64 Industrial Metals (01/05/20 – 0.18%) 0.24 22,458 Ferrexpo 41,480 0.24 Industrial Transportation (01/05/20 – 1.80%) 2.14 1,919 Clarkson 38,668 0.23 3,034 James Fisher 34,345 0.20 65,725 Royal Mail 148,933 0.87 60,876 Signature Aviation 142,450 0.84 Leisure Goods (01/05/20 – 0.88%) 1.45 2,359 Games Workshop 247,459 1.45 Life Insurance (01/05/20 – 0.25%) 0.19 76,572 Just Group 31,532 0.19 Media (01/05/20 – 2.27%) 3.57 2,091 4imprint Group 42,656 0.25 28,163 Ascential 75,984 0.45 7,839 Euromoney Institutional Investor 64,437 0.38 7,163 Future 141,684 0.83 267,563 ITV 189,970 1.12 38,399 Moneysupermarket.com 92,695 0.54 Mining (01/05/20 – 0.83%) 1.16 17,146 Hochschild Mining 36,521 0.21 16,418 Kaz Minerals 102,974 0.61 220,325 Petropavlovsk 57,835 0.34 Non-Equity Investment Instruments (01/05/20 – 0.40%) 0.42 30,855 Jupiter Fund Management 71,584 0.42 6 Portfolio of investments Investments held at 1 November 2020 Market Percentage of value total net assets Holding Investment £% Non-Life Insurance (01/05/20 – 3.04%) 2.86 44,240 Beazley 129,092 0.76 99,451 Direct Line Insurance Group 265,335 1.56 22,501 Hastings Group 56,117 0.33 16,190 Sabre Insurance Group 36,832 0.21 Oil & Gas Producers (01/05/20 – 0.71%) 1.37 39,379 Cairn Energy 55,091 0.32 48,766 Diversified Gas & Oil 54,325 0.32 7,328 Energean Oil & Gas 39,798 0.23 15,898 Vesuvius 62,575 0.37 30,568 Vivo Energy 22,254 0.13 Oil Equipment & Services (01/05/20 – 0.59%) 0.62 49,972 John Wood Group 104,791 0.62 Personal Goods (01/05/20 – 0.17%) 0.20 14,997 PZ Cussons 34,268 0.20 Pharmaceuticals & Biotechnology (01/05/20 – 2.32%) 3.68 7,717 Dechra Pharmaceuticals 270,867 1.59 4,841 Genus 199,643 1.17 52,257 Indivior 52,022 0.31 4,355 Oxford Biomedica 35,188 0.21 9,570 PureTech Health 23,399 0.14 43,132 Vectura Group 45,202 0.26 Real Estate Investment & Services (01/05/20 – 4.34%) 4.00 53,830 Capital & Counties Properties 55,983 0.33 46,038 Civitas Social Housing 48,156 0.28 12,120 CLS Holdings 23,367 0.14 47,026 Grainger 129,886 0.76 18,934 Great Portland REIT 108,416 0.64 9,611 Savills 78,137 0.46 13,353 St Modwen Prop erties 43,130 0.25 23,792 Unite Group 193,429 1.14 Real Estate Investment Trusts (01/05/20