PHOENIX UNIT TRUST MANAGERS MANAGER’S ANNUAL REPORT For the year: 1 February 2020 to 31 January 2021 PUTM BOTHWELL NORTH AMERICA FUND Contents Investment review* 2-3 Portfolio of investments* 4-22 Top ten purchases and sales 23 Statistical information* 24-29 Statements of total return & change in net assets attributable to unitholders 30 Balance sheet 31 Notes to the financial statements 32-42 Distribution tables 43-44 Responsibilities of the manager and the trustee 45 Trustee’s report and directors’ statement 46 Independent auditor’s report 47-49 Appendix 50-51 Corporate information* 52-54 *These collectively comprise the Authorised Fund Manager’s Report. 1 Investment review Dear Investor Performance Review Welcome to the PUTM Bothwell North America Fund Over the review period the PUTM Bothwell North (passive) report for 12 months to 31 January 2021. America Fund (passive) returned 13.7% (Source: BNP IRP, Gross of AMC, GBP). This is compared to its benchmark index return of 13.7% (Source: FTSE Custom AW Dev North America Index). In the table below, you can see how the Fund performed against its benchmark index over the last five discrete one year periods. Standardised Past Performance Jan 20-21 Jan 19-20 Jan 18-19 Aug 17-18 Jan 17-Jul 17 % growth % growth % growth % growth % growth (Janus (Janus (Janus (ASI) Henderson) Henderson) Henderson) PUTM Bothwell North 13.7 21.0 5.0 6.8 7.5 America Fund Benchmark Index 13.7 21.0 5.0 6.6 4.6 Janus Henderson assumed responsibility for the PUTM Bothwell North America Fund on 1 August 2017 and transitioned it from a formerly active strategy to a passive strategy, tracking the FTSE North American Index. Following a period to allow for this transition, performance was measured from 22 August 2017. Source: Fund performance is gross of AMC, GBP, based upon end of day pricing. Benchmark Index pe rformance is FTSE Custom AW Dev North America Index. 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 US equities, as measured by the S&P 500 Index, The outlook for US equities remains broadly positive, increased by 12.6% in sterling and 17.3% in US dollar supported by expectations of strong earnings growth and terms. Equities plunged during the pandemic-led rout of the notion that the global economy may be healing more global markets before supportive monetary policy from rapidly than anticipated. Massive fiscal and monetary the US Federal Reserve and US$3trn of government aid stimulus measures have thus far helped cushion the blow spurred a rebound. Surging new Covid-19 cases in the from shelter-in-place orders and provided much-needed US and elsewhere, and uncertainty about the outcome of liquidity for markets, businesses and consumers. As a the US presidential vote, pulled stocks down in result, the individual savings rate has gone up September and October, before the vaccine breakthroughs dramatically, and many companies with impaired balance sparked an end-of-year rally. The gains were supported sheets have likewise been able to raise inexpensive by the confirmation of Joe Biden’s election win in capital and deleverage. However, we recognize that November and the announcement, in December, of a businesses and households could again shut their wallets further US$900bn of government stimulus. Equities in the event of an extended and uncontrolled increase in declined in January because of concerns about the slow COVID-19 infections, but many countries have coalesced roll-out of vaccinations, while targeted buying by small around the idea that certain economic activity remains retail investors of certain stocks shorted by hedge funds essential and many companies have learned to adapt caused significant volatility in the final days of the month. their business models to accommodate changes in client US fourth-quarter GDP moderated to 4.0% growth, on an behavior. Thus, the path back to normalcy will likely be annualised basis, from an all-time high of 33.4% in the extended and volatile until there is an effective and widely third quarter, although this followed a 31.4% slump in implemented vaccine. In addition to the unknown the second quarter. duration of the pandemic there are potential changes in the regulatory environment, high valuations in some sectors and individual stocks and a possible inflationary surprise which outweigh positive sentiment towards an earnings recovery. 3 Portfolio of investments (unaudited) Investments held at 31 January 2021 Market Percentage of value total net assets Holding Investment £000 % United States (31/01/20 – 91.29%) 92.13 Aerospace & Defence (31/01/20 – 2.12%) 1.01 22,943 Arconic 411 0.03 32,748 Boeing 4,629 0.31 14,240 General Dynamics 1,521 0.10 2,091 HEICO 179 0.01 5,416 HEICO ‘A’ 418 0.03 2,109 Huntington Ingalls Industries 242 0.02 15,269 Lockhe ed Martin 3,578 0.24 9,833 Northrop Grumman 2,050 0.13 2,066 Teledyne Technologies 537 0.03 12,640 Textron 416 0.03 3,113 TransDigm Group 1,254 0.08 Automobiles & Parts (31/01/20 – 0.79%) 2.22 3,766 Autoliv 243 0.02 14,821 BorgWarner 453 0.03 224,365 Ford Motor 1,719 0.10 76,669 General Motors 2,830 0.19 13,261 Gentex 319 0.02 8,526 Genuine Parts 583 0.04 4,305 Lear 473 0.03 17,656 LKQ 451 0.03 46,030 Tesla Motors 26,589 1.76 Banks (31/01/20 – 4.91%) 3.62 471,124 Bank of America 10,155 0.67 53,039 Bank of New York Mellon 1,538 0.10 128,789 Citigroup 5,437 0.36 23,928 Citizens Financial Group 635 0.04 8,608 Comerica 358 0.02 5,895 Commerce Bancshares 287 0.02 43,891 Fifth Third Bancorp 924 0.06 10,464 First Republic Bank 1,104 0.07 55,013 Huntingdon Bancshares 530 0.04 184,796 JP Morgan Chase & Co 17,302 1.14 55,640 Ke yCorp 683 0.06 8,407 M&T Bank 810 0.05 25,237 PNC Financial Services 2,634 0.17 57,420 Regions Financial 710 0.05 3,229 SVB Financial 1,028 0.07 83,035 Truist Financial Corporation 2,899 0.19 78,484 US Bancorp 2,448 0.16 227,675 Wells Fargo 4,944 0.33 9,595 Zions Bancorporation 308 0.02 4 Portfolio of investments (unaudited) Investments held at 31 January 2021 Market Percentage of value total net assets Holding Investment £000 % Beverages (31/01/20 – 1.70%) 1.35 11,094 Brown-Forman ‘B’ 578 0.04 231,695 Coca-Cola 8,122 0.53 10,022 Constellation Brands 1,538 0.10 13,639 Molson Coors Beverage 498 0.03 23,218 Monster Beverage 1,467 0.10 83,411 PepsiCo 8,291 0.55 Chemicals (31/01/20 – 0.99%) 0.92 14,076 Air Products & Chemicals 2,730 0.18 5,389 Albemarle 637 0.04 3,625 Avery Dennison 398 0.03 6,380 Celanese ‘A’ 568 0.04 11,334 CF Industries 341 0.02 41,507 Dow 1,568 0.10 41,726 Dupont De Nemours 2,414 0.16 6,232 Eastman Chemicals 446 0.03 15,160 Ecolab 2,255 0.15 6,883 FMC 543 0.04 6,386 International Flavours & Fragrances 523 0.03 14,730 PPG Industries 1,445 0.10 Construction & Materials (31/01/20 – 0.46%) 0.38 7,435 Fortune Brands Home & Security 467 0.03 6,839 Jacobs Engineering Group 502 0.03 3,315 Martin Marietta Materials 694 0.05 19,784 Masco 782 0.05 5,133 Sherwin-Williams 2,585 0.17 7,180 Vulcan Materials 779 0.05 Electricity (31/01/20 – 2.41%) 1.89 37,616 AES 668 0.04 14,983 Alliant Energy 531 0.03 32,448 American Electric Power 1,911 0.13 4,056 Avangrid 137 0.01 15,761 CMS Energy 653 0.04 17,836 Consolidation Edison 918 0.06 50,884 Dominion Energy 2,699 0.18 10,363 DTE Energy 895 0.06 20,428 Edison International 864 0.06 10,440 Entergy 724 0.05 20,793 Eversource Energy 1,325 0.09 60,984 Exelon 1,845 0.12 32,220 FirstEnergy 722 0.05 116,120 NextEra Energy 6,834 0.45 13,253 NRG Energy 400 0.03 9,093 Pinnacle West Capital 498 0.03 5 Portfolio of investments (unaudited) Investments held at 31 January 2021 Market Percentage of value total net assets Holding Investment £000 % Electricity (continued) 45,395 PPL 914 0.06 32,563 Public Service Enterprise Group 1,337 0.09 62,703 Southern 2,689 0.18 34,110 Vistra Energy 496 0.03 31,565 Xcel Energy 1,470 0.10 Electronic & Electrical Equipment (31/01/20 – 0.80%) 0.86 18,630 Agilent Technologies 1,630 0.11 12,486 Ametek 1,030 0.07 19,587 Amphenol 1,781 0.12 4,647 Arrow Electronics 330 0.02 35,817 Emerson Electric 2,069 0.14 2,726 IPG Photonics Corporation 443 0.03 11,184 Keysight Technologies 1,152 0.07 1,456 Mettler Toledo International 1,237 0.08 6,146 Roper Technologies 1,758 0.12 13,512 Trimble Navigation 648 0.04 3,192 Zebra Technologies ‘A’ 900 0.06 Financial Services (31/01/20 – 5.45%) 5.07 2 1,764 Ally Financial 599 0.04 40,097 American Express 3,394 0.22 6,621 Ameriprise Financial 954 0.06 8,511 BlackRock 4,341 0.29 27,128 Capital One Financial 2,060 0.14 8,210 CBOE Global Holdings 548 0.04 21,484 Chicago Mercantile Exchange 2,839 0.19 19,103 Discover Financial Services 1,161 0.08 7,935 Equifax 1,023 0.07 30,695 Equitable Holdings 553 0.04 23,582 Frank Resources 451 0.03 19,597 Goldman Sachs Group 3,870 0.25 31,009 Intercontinental Exchange 2,492 0.16 29,800 KKR & Co.