PHOENIX UNIT TRUST MANAGERS MANAGER’S INTERIM REPORT For the half year: 1 November 2015 to 30 April 2016 PUTM UK ALL-SHARE INDEX UNIT TRUST Contents Investment review 2-3 Portfolio of investments 4-14 Top ten purchases and sales 15 Statistical information 16-18 Statements of total return & change in unitholders’ funds 19 Balance sheet 20 Distribution table 21 Corporate information 22 1 Investment review Dear Investor Performance Review Welcome to the Scottish Mutual UK All-Share Index Unit Over the review period, the Scottish Mutual UK All-Share Trust interim report for the six months to 30 April 2016. Index Unit Trust returned 0.2%. Over the same time period, the FTSE All-Share Index returned 0.0% and the UK All Companies sector average -0.5% (Lipper, bid to bid, net income reinvested for six months to 30/04/16). In the table below, you can see how the Fund performed against its sector average over the last five discrete one year periods. Standardised Past Performance 14-15 13-14 12-13 11-12 Apr 15-16 Apr Apr Apr Apr % growth % growth % growth % growth % growth Scottish Mutual UK All-Share Unit Trust 0.2 7.3 10.2 17.6 -1.2 Sector Average -0.5 7.8 13.9 19.1 -1.8 Source: Lipper, bid to bid, net income reinvested to end April 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 performance figures are calculated without taking the initial charge into account. 2 Investment review Portfolio and Market Review Market Outlook and Fund Strategy While the reporting period started relatively healthily, the Investors are nervous of recessionary risks, and while backdrop began to weaken as concerns around weak these risks have generally risen our view is that global global growth and China in particular resurfaced. Central growth will continue to remain positive, albeit somewhat banks remained front and centre as investors speculated dampened and relatively modest compared with longer- about monetary policy. The US Federal Reserve finally term trends. A growth environment will be supportive for increased interest rates, while the European Central Bank UK equities, and we continue to identify attractive stock extended its Eurozone stimulus measures. Domestically, specific opportunities. Uncertainty and concern around data demonstrated the UK’s continuing economic the growth outlook for the Chinese economy, monetary expansion albeit at a slower pace than before. policy in the US, and geo-political tensions as well as As the period progressed, a resurgence in global growth Brexit will act to increase volatility. concerns, further uncertainty around central bank policy and continued commodity price fluctuations ensured it was a period for UK equities. However, while the new year started very weakly, there was a sharp turnaround as a rebound in commodity prices led to a strong rally in associated sectors. Concerns over Chinese economic growth had been the primary driver of commodity price volatility. The Brexit referendum undoubtedly introduced event risk to the UK market and certain sectors, notably real estate and financials, felt the impact of this. Sterling was also weak as a result of the forthcoming referendum and lowering of interest rate expectations. 3 Portfolio of investments Investments held at 30 April 2016 Market Percentage of value total net assets Holding Investment £% UK Equities Oil & Gas Producers (31/10/15 – 10.44%) 10.73 140,362 BP 528,884 3.38 4,623 Cairn Energy 10,633 0.07 6,053 Enquest 2,467 0.02 846 Nostrum Oil & Gas 2,521 0.02 5,721 Ophir Energy 4,422 0.03 3,472 Premier Oil 2,673 0.02 31,883 Royal Dutch Shell ‘A’ 573,894 3.67 28,779 Royal Dutch Shell ‘B’ 520,180 3.33 1,599 Soco International 2,379 0.01 7,362 Tullow Oil 20,996 0.13 2,418 Vesuvius 7,832 0.05 Oil – Services (31/10/15 – 0.24%) 0.23 2,962 AMEC 14,840 0.10 1,026 Hunting 3,845 0.02 2,786 Wood Group 17,440 0.11 Chemicals (31/10/15 – 0.73%) 0.67 1,083 Croda International 32,826 0.21 4,600 Elementis 9,982 0.06 1,594 Johnson Matthey 46,019 0.29 1,986 Synthomer 7,013 0.05 694 Victrex 9,695 0.06 Forestry & Paper (31/10/15 – 0.27%) 0.25 2,998 Mondi 39,544 0.25 Industrial Metals (31/10/15 – 0.01%) 0.03 2,996 Evraz 4,338 0.03 1,611 Ferrexpo 600 – Mining (31/10/15 – 3.01%) 3.08 1,145 Acacia Mining 3,918 0.03 9,598 Anglo American 73,146 0.47 3,128 Antofagasta 14,786 0.09 15,872 BHP Billiton 146,356 0.94 1,334 Fresnillo 14,661 0.09 873 Hochschild Mining 1,364 0.01 1,860 Kaz Minerals 3,242 0.02 2,794 Lonmin 5,323 0.03 9,363 Rio Tinto 214,740 1.37 1,070 Vedanta Resources 4,460 0.03 Construction & Materials (31/10/15 – 0.24%) 0.26 6,030 Balfour Beatty 14,575 0.09 421 Keller 3,736 0.03 421 Kier Group 5,052 0.03 3,062 Low & Bonar 1,898 0.01 1,530 Marshalls Group 4,989 0.03 628 Morgan Sindall 4,961 0.03 1,857 Polypipe Group 5,519 0.04 4 Portfolio of investments Investments held at 30 April 2016 Market Percentage of value total net assets Holding Investment £% Aerospace & Defence (31/10/15 – 1.76%) 1.81 24,019 BAE Systems 115,099 0.74 2,285 Chemring Group 3,313 0.02 8,760 Cobham 13,718 0.09 6,829 Meggitt 28,545 0.18 5,142 Qinetiq Group 11,534 0.07 13,644 Rolls-Royce Holdings 92,711 0.59 968,724 Rolls-Royce Holdings ‘C’ Shares –– 3,248 Senior 7,302 0.05 595 Ultra Electronics Holdings 10,579 0.07 General Industrials (31/10/15 – 0.62%) 0.71 5,376 Rexam 33,681 0.22 1,783 RPC Group 13,060 0.08 6,545 Smith 24,963 0.16 3,023 Smiths Group 34,130 0.22 871 Vitec Group 4,686 0.03 Electronic & Electrical Equipment (31/10/15 – 0.51%) 0.54 2,489 E2V Technologies 5,233 0.03 3,176 Halma 28,711 0.18 2,334 Morgan Advanced 5,660 0.04 398 Oxford Instruments 2,651 0.02 323 Renishaw 6,143 0.04 7,600 Rotork 14,394 0.09 998 Spectris 18,802 0.12 591 Xaar 2,881 0.02 Industrial Engineering (31/10/15 – 0.34%) 0.42 1,229 Bodycote 7,497 0.05 1,908 Fenner 2,724 0.02 1,122 Hill and Smith 10,519 0.07 2,100 IMI 19,782 0.12 1,156 Melrose Industries 4,350 0.03 3,650 Severfield-Rowen 1,880 0.01 1,587 Weir Group 19,409 0.12 Industrial Transport (31/10/15 – 0.35%) 0.42 8,956 BBA Group 18,082 0.12 441 Braemar Shipping 1,984 0.01 202 Clarkson 4,937 0.03 424 James Fisher 5,983 0.04 6,768 Royal Mail 32,791 0.21 463 UK Mail Group 1,320 0.01 Support Services (31/10/15 – 3.44%) 3.45 2,053 Aggreko 22,583 0.15 3,413 Ashtead Group 30,854 0.20 761 Atkins 10,357 0.07 4,071 Babcock International 38,593 0.25 1,559 Berendsen 18,505 0.12 536 Brammer 938 0.01 2,402 Bunzl 49,073 0.32 5,107 Capita Group 50,815 0.33 3,898 Carillion 11,495 0.07 763 De La Rue 3,731 0.02 5 Portfolio of investments Investments held at 30 April 2016 Market Percentage of value total net assets Holding Investment £% Support Services (continued) 908 Diploma 6,633 0.04 3,691 Electrocomp 9,752 0.06 2,127 Essentra 17,356 0.11 12,653 G4S 24,041 0.15 12,665 Hays 16,123 0.10 1,963 Homeserve 8,143 0.05 5,456 Howden Joinery Group 26,914 0.17 1,513 Interserve 6,510 0.04 1,355 Intertek Group 44,295 0.28 2,134 Lavendon Group 2,966 0.02 1,348 Mears Group 5,379 0.04 851 Menzies 4,255 0.03 1,591 Michael Page International 6,496 0.04 2,763 Mitie Group 7,551 0.05 876 Northgate 3,640 0.02 959 Paypoint 8,209 0.05 2,945 Premier Farnell 3,563 0.02 16,105 Rentokil Initial 28,586 0.18 949 Ricardo 7,706 0.05 637 Robert Walters 2,115 0.01 1,507 RPS Group 2,600 0.02 7,616 Serco Group 7,353 0.05 2,741 Shanks Group 2,193 0.02 4,884 SIG 6,618 0.04 620 Sthree 2,048 0.01 2,116 Travis Perkins 39,040 0.25 1,128 Xchanging 2,183 0.01 Automobiles & Parts (31/10/15 – 0.22%) 0.23 12,952 GKN 36,421 0.23 Beverages (31/10/15 – 4.22%) 4.40 570 Barr 3,394 0.02 2,011 Britvic 14,308 0.09 19,446 Diageo 360,237 2.31 7,301 SABMiller 307,044 1.96 1,508 Stock Spirits Group 2,405 0.02 Food Producers (31/10/15 – 2.59%) 0.79 420 Anglo Eastern Plantations 2,121 0.01 2,545 Associated British Foods 78,030 0.50 279 Cranswick 6,420 0.04 928 Dairy Crest 5,211 0.03 757 Devro 2,142 0.02 496 Hilton Food Group 2,800 0.02 5,083 Premier Foods 1,982 0.01 4,258 Tate and Lyle 25,229 0.16 Household Goods & Home Construction (31/10/15 – 3.41%) 3.48 6,533 Barratt Developments 34,494 0.22 1,069 Bellway 26,180 0.17 970 Berkeley Group Holdings 28,411 0.18 1,423 Bovis Homes Group 12,373 0.08 6 Portfolio of investments Investments held at 30 April 2016 Market Percentage of value total net assets Holding Investment £% Household Goods & Home Construction (continued) 1,956 Crest Nicholson Holdings 10,064 0.07 644 Galliford Try 8,263 0.05 2,385 Persimmon 47,247 0.30 4,797 Reckitt Benckiser 321,927 2.06 2,321 Redrow 8,871 0.06 25,009 Taylor Wimpey 45,792 0.29 Leisure Goods (31/10/15 – 0.07%) 0.07 4,395 Pets at Home Group 10,772 0.07 Personal Goods (31/10/15 – 0.34%) 2.14 3,494 Burberry Group 41,858 0.27 1,716 PZ Cussons 5,544 0.04 209 Ted Baker 5,068 0.03 9,203 Unilever 281,474 1.80 Tobacco (31/10/15 – 5.05%) 5.52 14,137 British American Tobacco 591,563 3.78 7,329 Imperial Brands 271,613 1.74 Healthcare Equipment & Services (31/10/15 – 0.63%) 0.79 394 Consort Medical 3,861 0.02 3,014 Mediclinic International 27,412 0.17 576 NMC Health 6,008 0.04 6,997 Smith & Nephew 80,955 0.52 1,705 Spire Healthcare Group 5,644 0.04 Pharmaceuticals & Biotechnology (31/10/15 – 6.16%) 6.44 9,718 AstraZeneca 385,999 2.47 3,159 BTG 18,954 0.12 706 Dechra Pharmaceuticals 7,971 0.05 353 Genus 5,461 0.03 37,134 GlaxoSmithKline 545,870 3.49 1,281 Hikma Pharmaceuticals 28,477 0.18 5,311 Indivior 8,726 0.06 3,261 Vectura Group 5,619 0.04 Food & Drug Retailers (31/10/15 – 1.34%)