Phoenix unit trust managers

manager’s interim rePortFor the half year: 1 october 2015 to 31 march 2016

Putm Bothwell Credit non FinanCials sterlinghedged Fund

Contents

investment review 2-3

Portfolio of investments 4-9

top ten purchases and sales 10

statistical information 11-13

statements of total return & change in unitholders’ funds 14

Balance sheet 15

distribution table 16

Corporate information 17

1

2

Dear Investor

welcome to the Putm Bothwell Credit non Financialssterling hedged Fund interim report for the six months to31 march 2016.

Performance Review

over the review period, the Putm Bothwell Credit nonFinancials sterling hedged Fund returned 4.9%. (source:hsBC, gross of amC, gBP, based upon the movement inthe Cancellation Price for six months to 31/03/16). thiswas compared to a return of 4.8% also from itsbenchmark index. (source: datastream, iBoxx sterlingnon-Financials all maturities, total return, gBP, for sixmonths to 31/03/16).

in the table below, you can see how the Fund performedagainst its benchmark index over the last five discrete oneyear periods.

investment review

source: Fund performance is hsBC, gross of amC, gBP, based upon the movement in the Cancellation Price to31 march for each year. Benchmark index performance is datastream, iBoxx sterling non-Financials all maturities, totalreturn, gBP, to 31 march 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 backthe full amount invested.

Please note that all past performance figures are calculated without taking the initial charge into account.

Standardised Past Performance

PUTM Bothwell Credit Non Financials Sterling Hedged Fund 0.2 13.9 1.2 11.2 12.5

Benchmark Index 0.2 14.3 1.0 10.3 11.5

Mar 15-16 Mar 14-15 Mar 13-14 Mar 12-13 Mar 11-12% growth % growth % growth % growth % growth

3

Portfolio and Market Review

in the first half of the period, german utilities performedstrongly after the german vice chancellor commented thatthe country’s current nuclear provisioning was sound.rwe and e.on spreads benefited from these comments,which removed fears of a black-hole scenario started bypress articles. Following Volkswagen’s weakness, weslowly built up a position in the issuer. spreads tightenedin december following the european regulatorsacceptance of a technical fix. we continue to await asolution to the problem in the us.

as the period progressed, the non-financial sector wasnot as impacted by the general market weakness asfinancials, and it also benefited from being eligible foreCB corporate bond buying. however, this buying doesnot extend to sterling-denominated credit. Commodity-related issuers were among the best performers. wepurchased BhP Billiton in February and our overweightposition in glencore performed well. having no exposureto anglo american proved negative for performance,despite its downgrade to high yield. german utilities wereweak as long duration and uncertainty meant spreadsmoved wider in January and February. tesco had morepositive results and, despite spreads ending the periodflat, as an off-benchmark position this made a positivecontribution to performance.

Market Outlook and Fund Strategy

the referendum on ‘Brexit’, which will take place on23 June, remains a major risk factor for investors, as theresult could impact the sterling market and createsunknown risk for credit spreads. meanwhile, globalfactors continue to play their part, with a continued focuson Chinese growth (and how the authorities rebalancethe Chinese economy) as well as monetary policy in theus and europe. there is still uncertainty over how muchthe Federal reserve will tighten policy this year as mixedmessages from the FomC have caused confusion. weremain constructive on non-financials given the prospectof the eCB bond buying programme and the fact it shouldbe more insulated from some of the other risks mentionedabove.

investment review

4

Portfolio of investments

Investments held at 31 March 2016 market Percentage of value total net assets holding investment £000 %

United Kingdom (30/09/15 – 37.35%) 35.93 Government Bonds (30/09/15 – 1.42%) 0.68 £6,000,000 treasury 1.25% 22/07/2018 6,112 0.68

Corporate Bonds (30/09/15 – 35.93%) 35.25 £3,681,000 anglian water 5.837% 30/07/2022 4,470 0.50 £1,583,000 anglian water 4.5% 22/02/2026 1,736 0.19 £4,207,000 anglian water 6.293% 30/07/2030 5,716 0.64 £3,273,000 arqiva Financing 4.882% 31/12/2032 3,505 0.39 £7,835,000 British american tobacco 6.375% 12/12/2019 9,178 1.02 £4,324,000 Centrica 4.375% 13/03/2029 4,708 0.53 £2,877,000 Centrica 7% 19/09/2033 3,986 0.44 £2,143,000 Centrica 4.25% 12/09/2044 2,161 0.24 £6,906,000 Centrica 5.25% Vrn 10/04/2075 6,239 0.70 £6,278,000 Co-operative wholesale society 6.25% 08/07/2026 6,685 0.75 £2,860,000 Crh Finance uK 4.125% 02/12/2029 3,059 0.34 £4,440,000 eastern Power networks 4.75% 30/09/2021 5,030 0.56 £4,538,000 eastern Power networks 5.75% 08/03/2024 5,483 0.61 £1,207,000 eastern Power networks 6.25% 12/11/2036 1,664 0.19 £7,869,000 enw Finance 6.125% 21/07/2021 9,381 1.05 £5,533,000 everything everywhere 4.375% 28/03/2019 5,953 0.66 £3,055,000 Firstgroup 5.25% 29/11/2022 3,347 0.37 £5,372,000 Firstgroup 6.875% 18/09/2024 6,509 0.73 £7,613,000 glaxosmithKline 3.375% 20/12/2027 8,060 0.90 £2,924,000 glaxosmithKline 5.25% 19/12/2033 3,734 0.42 £2,677,000 glaxosmithKline 6.375% 09/03/2039 3,881 0.43 £2,655,000 glaxosmithKline 5.25% 10/04/2042 3,430 0.38 £5,284,000 glaxosmithKline 4.25% 18/12/2045 5,959 0.66 £1,996,000 imperial Brands Finance 6.25% 04/12/2018 2,226 0.25 £3,237,000 imperial Brands Finance 7.75% 24/06/2019 3,829 0.43 £6,276,000 imperial Brands Finance 9% 17/02/2022 8,425 0.94 £4,998,000 imperial Brands Finance 8.125% 15/03/2024 6,756 0.75 £3,857,000 imperial Brands Finance 5.5% 28/09/2026 4,628 0.52 £2,337,000 John lewis 4.25% 18/12/2034 2,326 0.26 £1,604,000 manchester airports group 4.125% 02/04/2024 1,753 0.20 £7,344,000 morrison (wm) supermarkets 3.5%,27/07/2026 6,719 0.75 £2,441,000 national express group 6.625% 17/06/2020 2,847 0.32 £1,537,000 national grid 6.5% 27/07/2028 2,131 0.24 £5,117,000 nats (en route) 5.25% 31/03/2026 4,785 0.53 £4,671,000 ngg Finance 5.625% Vrn 18/06/2073 4,832 0.54 £6,133,000 nie Finance 6.375% 02/06/2026 7,987 0.89 £2,190,000 northern ireland electricity 6.875% 18/09/2018 2,464 0.27 £5,807,000 northumbrian water Finance 6.875% 06/02/2023 7,336 0.82 £3,077,000 northumbrian water Finance 5.125% 23/01/2042 3,784 0.42 £1,695,000 rio tinto Finance 4% 11/12/2029 1,723 0.19

5

Portfolio of investments

Investments held at 31 March 2016 market Percentage of value total net assets holding investment £000 %

Corporate Bonds (continued) £5,468,000 safeway 6.125% 17/12/2018 5,966 0.67 £5,916,000 severn trent water utilities 6% 22/01/2018 6,383 0.71 £1,617,000 severn trent water utilities 3.625% 16/01/2026 1,731 0.19 £2,532,000 sky 2.875% 24/11/2020 2,619 0.29 £2,227,000 south eastern Power networks 5.5% 05/06/2026 2,729 0.30 £4,419,000 sse 5% 01/10/2018 4,797 0.54 £4,596,000 sse 4.25% 14/09/2021 5,103 0.57 £4,527,000 sse 3.875% Vrn Perpetual 4,342 0.48 €3,233,000 sse 5.625% Vrn Perpetual 2,663 0.30 £3,210,000 stagecoach 4% 29/09/2025 3,297 0.37 £4,297,000 telereal secured Finance 3.507% Vrn 10/09/2031 4,150 0.46 £1,620,000 telereal secured Finance 4.01% 10/12/2033 1,409 0.16£11,097,000 tesco 6.125% 24/02/2022 11,867 1.32 £6,004,000 tesco 5% 24/03/2023 6,041 0.67 £4,497,000 tesco Property 5.8006% 13/10/2040 3,905 0.44 £2,560,000 thames water 5.125% 28/09/2037 3,101 0.35 £1,129,000 united utilities 5% 28/02/2035 1,366 0.15 £5,187,000 Virgin media 5.5% 15/01/2021 5,498 0.61 £9,000,000 Vodafone group 5.375% 05/12/2017 9,545 1.06 £7,812,000 wales & west utilities Finance 6.25% 30/11/2021 9,507 1.06 £1,383,000 wales & west utilities Finance 5.75% 29/03/2030 1,766 0.20 £6,155,000 western Power distribution 5.25% 17/01/2023 7,137 0.80 £2,900,000 western Power distribution 3.625% 06/11/2023 2,958 0.33 £2,492,000 western Power distribution 3.875% 17/10/2024 2,692 0.30 £6,155,000 western Power distribution 5.5% 09/05/2025 7,712 0.86 £5,797,000 western Power distribution 5.75% 16/04/2032 7,430 0.83 £1,450,000 Yorkshire water 5.5% 28/05/2037 1,857 0.21

United States (30/09/15 – 11.78%) 12.21 Corporate Bonds (30/09/15 – 11.78%) 12.21 £1,522,000 amgen 4% 13/09/2029 1,618 0.18 $4,810,000 anheuser-Busch inBev Finance 3.65% 01/02/2026 3,517 0.39 £9,850,000 at&t 5.5% 15/03/2027 11,779 1.32 £5,514,000 at&t 4.375% 14/09/2029 5,949 0.66 £6,759,000 at&t 5.2% 18/11/2033 7,707 0.86£11,400,000 at&t 7% 30/04/2040 15,899 1.77 £3,925,000 at&t 4.875% 01/06/2044 4,267 0.48 £2,349,000 Comcast Corporation 5.5% 23/11/2029 2,987 0.33 £3,453,000 national grid north america 1.875% 06/08/2018 3,474 0.39 £1,637,000 PepsiCo 2.5% 01/11/2022 1,701 0.19£10,550,000 Pfizer 6.5% 03/06/2038 15,441 1.72 £5,077,000 time warner Cable 5.75% 02/06/2031 5,265 0.59 £3,895,000 Verizon Communications 4.75% 17/02/2034 4,297 0.48£11,724,000 wal-mart stores 5.625% 27/03/2034 15,468 1.73 £7,821,000 wal-mart stores 5.25% 28/09/2035 10,066 1.12

6

Portfolio of investments

Investments held at 31 March 2016 market Percentage of value total net assets holding investment £000 %

Australia (30/09/15 – 2.51%) 3.29 Corporate Bonds (30/09/15 – 2.51%) 3.29 £1,616,000 aPt Pipelines 4.25% 26/11/2024 1,679 0.19 £3,683,000 aPt Pipelines 3.5% 22/03/2030 3,387 0.38 £5,980,000 asciano Finance 5% 19/09/2023 6,290 0.70 £7,000,000 BhP Billiton Finance 3.25% 25/09/2024 7,103 0.79 £5,025,000 BhP Billiton Finance 4.3% 25/09/2042 4,986 0.56 £2,632,000 sgsP (australia) assets 5.125% 11/02/2021 2,950 0.33 £2,779,000 sPi electricity & gas 7.125% 26/06/2018 3,099 0.34

Belgium (30/09/15 – 1.78%) 1.79 Corporate Bonds (30/09/15 – 1.78%) 1.79£10,129,000 anheuser-Busch inBev 6.5% 23/06/2017 10,753 1.20 £3,518,000 anheuser-Busch inBev 9.75% 30/07/2024 5,304 0.59

Canada (30/09/15 – 0.92%) 0.92 Corporate Bonds (30/09/15 – 0.92%) 0.92 £1,957,000 glencore Canada Financial 7.375% 27/05/2020 2,012 0.22 £5,925,000 repsol oil & gas 6.625% 05/12/2017 6,258 0.70

Cayman Islands (30/09/15 – 6.35%) 5.79 Corporate Bonds (30/09/15 – 6.35%) 5.79 £2,586,000 affinity water Programme Finance 3.625% 30/09/2022 2,745 0.31 £1,714,000 affinity water Programme Finance 4.5% 31/03/2036 1,979 0.22 £6,132,000 south east water 5.6577% 30/09/2019 6,838 0.76 £2,128,000 southern water services (Finance) 5% 31/03/2021 2,417 0.27 £4,100,000 southern water services (Finance) 6.64% 31/03/2026 5,410 0.60 £3,545,000 southern water services (Finance) 6.192% 31/03/2029 4,706 0.52 £4,911,000 southern water services (Finance) 4.5% 31/03/2052 5,706 0.64 £3,130,000 thames water 3.5% 25/02/2028 3,248 0.36 £6,377,000 thames water 5.75% 13/09/2030 7,227 0.81 £1,853,000 thames water 4.375% 03/07/2034 2,043 0.23 £1,398,000 thames water 4.625% 04/06/2046 1,608 0.18 £4,394,000 thames water 5.375% Vrn 21/07/2025 4,550 0.51 £2,422,000 Yorkshire Power 7.25% 04/08/2028 3,395 0.38

Channel Islands (30/09/15 – 7.04%) 7.50 Corporate Bonds (30/09/15 – 7.04%) 7.50 £2,532,000 aa Bond 4.2487% 31/07/2020 2,595 0.29£11,581,000 aa Bond 4.7201% 02/07/2043 11,973 1.33 £5,570,000 CPuK Finance 7.239% 28/02/2024 6,890 0.77 £2,755,000 CPuK Finance 2.666% 28/02/2042 2,774 0.31

7

Portfolio of investments

Investments held at 31 March 2016 market Percentage of value total net assets holding investment £000 %

Corporate Bonds (continued) £2,446,000 gatwick Funding 5.25% 23/01/2024 2,850 0.32 £1,439,000 gatwick Funding 6.5% 02/03/2043 2,060 0.23 4,357,000 heathrow Funding 6.25% 10/09/2018 4,760 0.53 £2,357,000 heathrow Funding 6% 20/03/2020 2,662 0.30 £6,817,000 heathrow Funding 7.125% 14/02/2024 8,509 0.95 £2,242,000 heathrow Funding 6.45% 10/12/2033 3,091 0.34 £9,867,000 heathrow Funding 5.875% 13/05/2041 13,260 1.48 £5,064,000 heathrow Funding 4.625% 31/10/2046 5,843 0.65

Denmark (30/09/15 – 1.22%) 1.00 Corporate Bonds (30/09/15 – 1.22%) 1.00 £2,164,000 a.P.moller 4% 04/04/2025 2,178 0.24 £2,750,000 dong energy 4.875% 12/01/2032 3,098 0.35 £3,274,000 tdC 5.625% 23/02/2023 3,664 0.41

France (30/09/15 – 10.11%) 9.07 Corporate Bonds (30/09/15 – 10.11%) 9.07 £2,500,000 Électricité de France 6.25% 30/05/2028 3,141 0.35 £2,514,000 Électricité de France 5.875% 18/07/2031 3,082 0.34£11,200,000 Électricité de France 6.125% 02/06/2034 13,737 1.53 £7,500,000 Électricité de France 5.5% 17/10/2041 8,592 0.96 £9,350,000 Électricité de France 5.125% 22/09/2050 10,167 1.13 £3,500,000 Électricité de France 6% 23/01/2114 4,355 0.48 €4,000,000 Électricité de France 4.125% Vrn Perpetual 3,023 0.34 £8,000,000 Électricité de France 5.875% Vrn Perpetual 6,785 0.76 £5,000,000 Électricité de France 6% Vrn Perpetual 4,541 0.51 £1,540,000 orange 5.25% 05/12/2025 1,852 0.21 £5,765,000 orange 5.875% Vrn Perpetual 5,803 0.65€10,511,000 total 2.25% Vrn Perpetual 7,834 0.87 £5,450,000 total Capital 3.875% 14/12/2018 5,827 0.65 €3,100,000 transport et infrastructures 2.2% 05/08/2025 2,582 0.29

Germany (30/09/15 – 0.98%) 1.06 Corporate Bonds (30/09/15 – 0.98%) 1.06 £5,388,000 enBw enerji 3.625% Vrn 02/04/2076 4,040 0.45 £5,700,000 rwe 7% Vrn Perpetual 5,468 0.61

Ireland (30/09/15 – 0.86%) 0.00

Italy (30/09/15 – 0.93%) 0.95 Corporate Bonds (30/09/15 – 0.93%) 0.95 £5,376,000 enel 6.25% 20/06/2019 6,127 0.68 £1,948,000 enel 5.75% 22/06/2037 2,382 0.27

Luxembourg (30/09/15 – 0.76%) 0.58 Corporate Bonds (30/09/15 – 0.76%) 0.58 £1,200,000 glencore Finance 6.5% 27/02/2019 1,230 0.14 £4,246,000 glencore Finance 5.5% 03/04/2022 4,009 0.44

8

Portfolio of investments

Investments held at 31 March 2016 market Percentage of value total net assets holding investment £000 %

Mexico (30/09/15 – 1.05%) 1.06 Corporate Bonds (30/09/15 – 1.05%) 1.06 £7,090,000 américa móvil 4.948% 22/07/2033 7,783 0.87 £1,686,000 américa móvil 6.375% Vrn 06/09/2073 1,703 0.19

Netherlands (30/09/15 – 11.75%) 11.82 Corporate Bonds (30/09/15 – 11.75%) 11.82 £5,348,000 deutsche telekom 6.5% 08/04/2022 6,638 0.74 £925,000 duetsche telekom 7.625% Vrn 15/06/2030 1,353 0.15 £4,500,000 e.on international Finance 6% 30/10/2019 5,057 0.56 £1,714,000 e.on international Finance 6.375% 07/06/2032 2,094 0.23 £2,850,000 e.on international Finance 5.875% 30/10/2037 3,337 0.37 £11,500,000 e.on international Finance 6.75% 27/01/2039 14,622 1.63 £5,622,000 enel 5.625% 14/08/2024 6,716 0.75 £3,682,000 enel 5.75% 14/09/2040 4,523 0.50 £9,728,000 Koninklijke KPn 5.75% 17/09/2029 11,805 1.32 £5,669,000 rwe Finance 6.5% 20/04/2021 6,534 0.73 £3,738,000 rwe Finance 6.25% 03/06/2030 4,117 0.46 £6,300,000 rwe Finance 4.75% 31/01/2034 5,807 0.65 £5,700,000 rwe Finance 6.125% 06/07/2039 6,068 0.68 £12,497,000 siemens Financier 6.125% Vrn 14/09/2066 12,604 1.41 £1,600,000 Volkswagen Financial services 2.625% 22/07/2019 1,610 0.18 £7,288,000 Volkswagen Financial services 1.75% 17/04/2020 7,100 0.79 €7,700,000 Vonovia Finance 4% Vrn perpetual 6,021 0.67

Norway (30/09/15 – 0.00%) 0.51 Corporate Bonds (30/09/15 – 0.00%) 0.51 £3,500,000 statoil 6.125% 27/11/2028 4,608 0.51

Spain (30/09/15 – 2.15%) 2.18 Corporate Bonds (30/09/15 – 2.15%) 2.18 £4,950,000 iberdrola 7.375% 29/01/2024 6,505 0.73 £6,680,000 telefónica emisiones 5.375% 02/02/2018 7,097 0.79 £5,200,000 telefónica emisiones 5.289% 09/12/2022 5,912 0.66

Sweden (30/09/15 – 0.99%) 0.70 Corporate Bonds (30/09/15 – 0.99%) 0.70 £4,592,000 Vattenfall 6.875% 15/04/2039 6,259 0.70

Forward Foreign Exchange Contracts (30/09/15 – (0.02%)) (0.09) gBP 3,318,038 gBP Forward Currency Contract 13/05/2016 3,318 0.37 (usd 4,821,726) usd Forward Currency Contract 13/05/2016 (3,354) (0.38) gBP 33,609,071 gBP Forward Currency Contract 13/05/2016 33,609 3.75 (eur 43,509,592) eur Forward Currency Contract 13/05/2016 (34,537) (3.85) gBP 85,611 gBP Forward Currency Contract 13/05/2016 85 0.01 (usd 123,834) usd Forward Currency Contract 13/05/2016 (86) (0.01)

9

Portfolio of investments

Investments held at 31 March 2016 market Percentage of value total net assets holding investment £000 %

Forward Foreign Exchange Contracts (continued) eur 3,799,366 eur Forward Currency Contract 13/05/2016 3,016 0.34 (gBP 2,961,773) gBP Forward Currency Contract 13/05/2016 (2,962) (0.33) gBP 738,895 gBP Forward Currency Contract 13/05/2016 739 0.08 (eur 947,219) eur Forward Currency Contract 13/05/2016 (752) (0.08) eur 4,212,486 eur Forward Currency Contract 13/05/2016 3,344 0.37 (gBP 3,265,528) gBP Forward Currency Contract 13/05/2016 (3,266) (0.37) gBP 1,060,147 gBP Forward Currency Contract 13/05/2016 1,060 0.12 (eur 1,366,459) eur Forward Currency Contract 13/05/2016 (1,085) (0.12) gBP 78,561 gBP Forward Currency Contract 13/05/2016 78 0.01 (usd 111,313) usd Forward Currency Contract 13/05/2016 (77) (0.01) eur 4,033,880 eur Forward Currency Contract 13/05/2016 3,202 0.36 (gBP 3,150,376) gBP Forward Currency Contract 13/05/2016 (3,150) (0.35)

Futures (30/09/15 – 0.00%) 0.03 650 iCF long gilt June 2016 275 0.03

Money Markets (30/09/15 – 0.00%) 2.50 £22,447,378 standard life investments sterling liquidity Fund Class ‘0’ gBP*+ 22,447 2.50

Portfolio of investments^ 885,797 98.80Net other assets 10,803 1.20

Net assets 896,600 100.00

all investments with the exception of Forward Foreign exchange Contracts arelisted on recognised stock exchanges and are “approved securities””within themeaning of the FCa rules unless otherwise stated.the counterparties for the Forward Foreign exchange Contracts are Citigroup,Barclays and deutsche Bank.*a related party to the Fund.^ includes investment liabilities.+ siCaVs (open ended investment schemes registered outside the uK).

Credit Ratings £000 % investment grade 813,618 94.18 non-investment grade 39,464 4.57 unrated 10,811 1.25

Total investment in bonds 863,893 100.00

10

Total purchases 117,239 Total sales 136,729

top ten purchases and salesFor the half year ended 31 march 2016

Purchases Cost £000standard life investments sterlingliquidity Fund Class ‘0’ gBP 76,727BhP Billiton Finance 3.25% 25/09/2024 6,690treasury 1.25% 22/07/2018 6,111statoil 6.125% 27/11/2028 4,473anheuser-Busch inBev Finance 3.65%01/02/2026 3,342thames water 3.5% 25/02/2028 3,102western Power distribution 3.625%06/11/2023 2,888Crh Finance uK 4.125% 02/12/2029 2,844Électricité de France 4.125% Vrn Perpetual 2,745e.on international Finance 6.75%27/01/2039 2,248

Sales Proceeds £000standard life investments sterlingliquidity Fund Class ‘0’ gBP 54,287treasury 4% 22/01/2060 9,092astrazeneca 5.75% 13/11/2031 6,639Post 7.5% 14/08/2018 5,938British telecom 6.625% 23/06/2017 4,922hutchison whampoa 1.375% 31/10/2021 4,579orange 5.75% Vrn Perpetual 4,461treasury 3.5% 22/01/2045 3,931sse 1999 5.875% 22/09/2022 3,678gdF sueZ 3.875% Vrn Perpetual 3,174

11

statistical information

Performance recordClass ‘B’ accumulation

lowest highestredemption issue

price priceYear to 31 december pence pence

2011 102.23 117.002012 110.03 129.352013 124.80 136.162014 129.76 146.122015 142.39 153.821 January to 31 march 2016 145.02 151.41

Distribution recordgross distribution

pence per unit*Year to 31 december Class ‘B’ accumulation

2011 6.08142012 5.21782013 5.41212014 5.76482015 6.09561 January to 31 march 2016 –

*paid during the period

Accounting period statisticstotal net asset value

net asset units in per unitas at 30 september value (£) issue in pence

2013 Class ‘B’ accumulation 2,756,694,211 2,143,267,893 128.622014 Class ‘B’ accumulation 2,405,208,567 1,731,849,850 138.882015 Class ‘B’ accumulation 897,887,426 626,193,025 143.392016** Class ‘B’ accumulation 896,599,794 596,126,121 150.40

** as at 31 march

12

Investment objective

the Fund aims to maximise total returns by investing predominantly in corporatebonds (excluding those issued by companies from the financial sector).

Investment policy

the Fund will invest predominantly in investment grade fixed and floating ratecorporate bonds, denominated in sterling and other currencies, issued by companiesfrom outside the financial sector. the Fund has the ability to invest up to 10% of itsassets in bonds which have not been rated by a ratings agency, issued by way ofprivate placement. it may also invest up to 20% in sovereign and sovereignguaranteed bonds. the Fund is not constrained by any index weightings but investsfrom a broad range of fixed interest securities selected from issues denominated incurrencies of g7 countries. non-sterling exposure will be predominantly hedged backto sterling while non-sterling interest rate risk will also typically be hedged.

the Fund may also invest in other transferable securities, units in collective investmentschemes and may hold up to 20% of its assets in money market instruments,deposits, cash and near cash. the Fund may, at the manager's discretion, hold inexcess of 20% of its assets in money market instruments, deposits, cash or near cashon a temporary basis in exceptional market circumstances, if deemed to be in the bestinterests of unit holders.

the Fund may also invest in derivatives and forward transactions only for the purposeof efficient portfolio management, including the use of hedging techniques.

Revenue distribution and pricing

units of the Fund are available as Class ‘B’ accumulation units (where revenue isreinvested to enhance the unit price). there will be two potential distributions in eachaccounting year: an interim distribution as at 31 march and a final distribution as at30 september. at each distribution the net revenue after deduction of expenses, arisingin the preceding six months, from the investments of the Fund is apportioned amongstthe unitholders. unitholders receive a tax voucher giving details of the distribution andthe manager’s report no later than two months after these dates.

Ongoing charges figure

the ongoing Charges Figure (oCF) shows the operating expenses, annualised, of eachunit class as a percentage of average net assets of that class for the period.

%

as at 31 march 2016 0.03as at 31 march 2015 0.01

statistical information

13

fi

statistical information

Risk and reward profile

the risk and reward indicator table demonstrates where the Fund ranks in terms of itspotential risk and reward. the higher the rank the greater the potential reward but thegreater the risk of losing money. it is based on past data, may change over time andmay not be a reliable indication of the future risk profile of the Fund. the shaded area inthe table below shows the Fund’s ranking on the risk and reward indicator.

Typically lower rewards, Typically higher rewards, lower risk higher risk fi

1 2 3 4 5 6 7

this Fund is ranked at 4 because funds of this type have experienced average rises andfalls in value in the past. the above figure applies to the following unit class:• Class ‘B’ accumulation

Please note that even the lowest risk class can lose you money and that extrememarket circumstances can mean you suffer severe losses in all cases. Please note theFund’s risk category may change in the future. the indicator does not take into accountthe following risks of investing in this Fund:

• Bonds are affected by changes in interest rates, inflation and any decline increditworthiness of the bond issuer. Bonds that produce a higher level of incomeusually also carry greater risk as such bond issuers may have difficulty in payingtheir debts.

• although the investment manager will use currency trades to reduce exchange raterisk on investments not priced in sterling, this may not completely eliminate theFund’s exchange rate risk.

• the Fund may use derivatives to reduce risk or cost or to generate additional capitalor income at low risk, or to meet its investment objective.

For more information on the risk and reward profiles of our funds, please refer to themost up to date relevant fund and unit Class Key investor information documents(Kiids). these are available online at www.phoenixunittrust.co.uk.

Directors’ statement

this report has been prepared in accordance with the requirements of the Collectiveinvestment schemes sourcebook as issued and amended by the Financial Conductauthority.

18 may 2016 director director

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interim financial statements (unaudited)For the half year ended 31 march 2016

Statement of total return 31/03/16 31/03/15 £000 £000 £000 £000

income

net capital gains 23,698 162,714 revenue 19,059 42,273

expenses (130) (130)

Finance costs: interest (2) (13)

net revenue for the half year 18,927 42,130

total return beforedistributions 42,625 204,844

distributions (18,952) (42,182)

Change in unitholders’ funds from investmentactivities 23,673 162,662

Statement of change in unitholders’ funds

31/03/16 31/03/15* £000 £000 £000 £000

opening net assets 897,887 2,405,209

amounts receivable on issue of units 12,986 13,328amounts payable on in-specie transfer** – (1,244,640)amounts payable on cancellation of units (56,486) (95,439)

(43,500) (1,326,751)

Change in unitholders’ funds from investment activities 23,673 162,662

retained distributions on accumulation units 18,540 25,133

Closing net assets 896,600 1,266,253

*Please note that the comparative figures are for the comparative interim period. the brought forward netassets for the current period do not, therefore equal the carried forward figure in the comparative.**represents the value of units cancelled by in-specie transfer of assets during the year.

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Balance sheet 31/03/16 30/09/15 £000 £000 £000 £000

Fixed assets:investments 886,800 884,754

Current assets:debtors 17,578 17,896Cash and bank balances 1,344 93

total current assets 18,922 17,989

total assets 905,722 902,743

Liabilities: investment liabilities (1,003) (251)

Creditors: Bank overdraft – (3,019)other creditors (8,119) (1,586)

total creditors (8,119) (4,605)

total liabilities (9,122) (4,856)

net assets 896,600 897,887

unitholders’ funds 896,600 897,887

interim financial statements (unaudited)as at 31 march 2016

Notes to the interim financial statements

Accounting policiesthe interim financial statements have been prepared in accordance with the statementof recommended Practice for authorised Funds issued by the investment associationin may 2014. Previously the requirements for the statement of recommendedPractice (sorP) issued by the investment management association in october 2010had been applied. the impact is minimal for an interim reporting period and limited tosome presentational amendments to the statement of total return, statement of changein unitholders’ funds and the Balance sheet. the presentational amendments had noimpact on the total return or net assets in either the current or preceding year. the fulldisclosures under the new sorP will first be presented for the annual financialstatements prepared for the year to 30 september 2016. unless otherwise stated allother accounting policies applied are consistent with those of the annual report forthe year ended 30 september 2015 and are described in those financial statements.

Significant events during the periodPlease note the manager of the Bothwell Funds has changed from ignis Fundmanagers limited to Phoenix unit trust managers limited (Putm) with effect from2 november 2015. as a result the Fund was re-named Putm Bothwell Credit nonFinancials sterling hedged Fund.

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Interest distributions

Interim distribution in pence per unitgroup 1: units purchased prior to 1 october 2015group 2: units purchased 1 october 2015 to 31 march 2016 2016 2015 pence pence per unit per unit gross payable paid income equalisation 31 may 31 may

Class ‘B’ Accumulation

group 1 3.1101 — 3.1101 2.9782group 2 0.7608 2.3493 3.1101 2.9782

Equalisationthis applies only to units purchased during the distribution period (group 2 units). itis the average amount of revenue included in the purchase price of all group 2 unitsand is refunded to the holders of these units as a return of capital. Being capital it isnot liable to income tax but must be deducted from the cost of the units for capitalgains tax purposes.

distribution tableFor the half year ended 31 march 2016

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Corporate information

the information in this report is designed to enable unitholders to make an informed judgement on the activitiesof the Fund during the period it covers and the results of those activities at the end of the period.

Phoenix unit trust mangers limted is part of the Phoenix group.

ignis investment services limited is part of the standard life investments group (standard life investments(holdings) limited) and its subsidiaries.

unit prices appear daily on our website www.phoenixunittrust.co.uk

dealing: 0370 707 0073 administration: 0330 1233 703

Registrar and correspondence addressPhoenix unit trust managers limitedPo Box 12997, ChelmsfordCm99 2enauthorised and regulated by the Financial Conductauthority

Investment Advisorignis investment services limited50 Bothwell streetglasgow g2 6hrregistered in scotland – no.sC101825authorised and regulated by the Financial Conductauthority

Trustee Citibank europe plcregistered office: Citigroup Centre, Canada squareCanary wharf, london e14 5lBauthorised by the Prudential regulation authority andregulated by the Financial Conduct authority and thePrudential regulation authority

Independent Auditor to the Fundernst & Young llPten george streetedinburgh eh2 2dZ

Authorised statusthis Fund is an authorised unit trust scheme undersection 243 of the Financial services & markets act 2000 and is categorised under the Collectiveinvestment schemes sourcebook as a uCits fund.

Manager (resigned 2 November 2015)ignis Fund managers limited (iFm)50 Bothwell streetglasgow g2 6hrtel: 0141 222 8000registered in scotland – no.sC101825member of the investment associationauthorised and regulated by the Financial Conduct authority

Manager (appointed 2 November 2015)Phoenix unit trust managers limited (Putm)1 wythall green way, wythall, Birmingham, B47 6wgtel: 0330 1233 703registered in england – no.03588031authorised and regulated by the Financial Conduct authority

Directors*appointed with effect 2 november 2015Andrew Moss* Putm director, Chief executive

Phoenix life;Shamira Mohammed* Putm director, Finance director

Phoenix life;Craig Baker* Putm director, head of investment

management Phoenix life;Mike Urmston* non executive director of Putm.

resigned with effect 2 november 2015N K SkeochJ AirdC ClarkR ParisC Walklin

Riskthe price of units and the income from them can go down as well as up and investors may not get back theamount they invested, particularly in the case of early withdrawal. tax levels and reliefs are those currentlyapplicable and may change. the value of any tax relief depends on personal circumstances.management charges on some funds are charged to capital and therefore a reduction in capital may occur.depending on the fund, the value of your investment may change with currency movements.

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notes

19

notes

20

notes

B192.04.16

telephone calls may be monitored and/or recorded for the purposes of security, internal training, accurate accountoperation, internal customer monitoring and to improve the quality of service.

Please note the Key investor information document (Kiid), the supplementary information document (sid) and thefull prospectus are available free of charge. these are available by contacting Client services on 0330 1233 703.

Phoenix unit trust managers limited does not accept liability for any claims or losses of any nature arising directlyor indirectly from use of the data or material in this report. the information supplied is not intended to constituteinvestment, tax, legal or other advice.

Phoenix unit trust managers limited* is a Phoenix group Company. registered in england no 3588031.registered office: 1 wythall green way, wythall, Birmingham B47 6wg.authorised and regulated by the Financial Conduct authority.

Phoenix unit trust managers limited and its subsidiaries are part of the Phoenix group (Phoenix group plc and its subsidiaries).

Contact: Client ServicesCall: 0330 1233 703Correspondence address: PO Box 12997 Chelmsford CM99 2ENVisit: phoenixunittrust.co.uk