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COIF CHARITIES ETHICAL INVESTMENT FUND ANNUAL REPORT AND FINANCIAL STATEMENTS

Year ended 31 December 2020

COIF CHARITIES ETHICAL INVESTMENT FUND

Report of the Board	03
Report of the Investment Manager*	07
Report of the Depositary	11
Independent Auditors’ Report	12
Summary risk indicator	16
Comparative table	17
Operating charges analysis	19
Portfolio analysis	20
Portfolio statement*	21
Statement of total return**	28
Statement of change in net assets attributable to Unitholders**	28
Balance sheet**	29
Notes to the financial statements**	30
Distribution tables**	49
Statement of Board, Trustee, Depositary and Manager responsibilities	50
AIFMD disclosures	55
Directory*	56

*Collectively, these comprise the Manager’s Report.

**Audited.

References to “CCLA” refer to the CCLA Group, comprising CCLA Investment Management Limited and CCLA Fund Managers Limited.

Disability Discrimination Act 1995

Extracts from the Annual Report and Financial Statements are available in large print and audio formats.

Annual Report and Financial Statements

31 December 2020

COIF CHARITIES ETHICAL INVESTMENT FUND

REPORT OF THE BOARD for the year ended 31 December 2020

On behalf of the Board, I have pleasure in presenting the Annual Report and Financial Statements of the COIF Charities Ethical Investment Fund (the Fund), which includes a separate report from CCLA Fund Managers Limited (the Manager) as Manager of the Fund.

Structure and management of the Fund

The Fund is a Common Investment Fund established and regulated by the Scheme dated 8 October 2009 and made under section 24 of the Charities Act 1993, now section 96 of the Charities Act 2011 and amended by resolutions of the charity trustees of the Fund dated 21 July 2014, 22 July 2014, 5 December 2015 and 15 May 2017 (the Scheme). The Fund is managed by the Manager as an unregulated collective investment scheme and as a UK alternative investment fund in accordance with the Financial Conduct Authority Regulations and the Alternative Investment Fund Managers Directive (AIFMD) Legislation.

The Board, created under the Scheme, is made up of individuals appointed under the Scheme. Together, these individuals have wide experience of finance, investments, charities and the law. No Board member is required to be approved by the Financial Conduct Authority because the Board does not carry out regulated activities in relation to the Fund. The investment management, administration, registrar and secretarial functions of the Fund have been delegated to the Manager. The Board meets at least four times per annum to receive reports and monitor the progress of the Fund.

The Board is responsible for setting and subsequently reviewing the investment policy of the Fund, monitoring performance, appointing the Auditors to the Fund and agreeing the fees charged by the Depositary, the Manager and the Auditors.

The Trustee and Depositary, HSBC Bank plc, appointed under the Scheme is responsible for the supervision and oversight of the Manager’s compliance with the Scheme and Scheme Particulars and also for the custody and safekeeping of the property of the Fund. It is also responsible for the appointment and supervision of the Registrar of the Fund. The division between management and Depositary functions provides an additional layer of protection for Unitholders. The Board, Depositary and Manager are considered Charity Trustees of the Fund within the meaning of the Charities Act 2011.

Investment objective

The Fund aims to provide a long-term total return comprising growth in capital and income.

Benchmark

A long-term total return of 5% per annum net of inflation as measured by the increase in the Consumer Price Index.

Annual Report and Financial Statements

31 December 2020

COIF CHARITIES ETHICAL INVESTMENT FUND

REPORT OF THE BOARD

for the year ended 31 December 2020

Investment policy

The Fund is an actively managed, diversified portfolio of assets designed to help protect both present and future beneficiaries from the effects of inflation. It will have an emphasis on equities, but will also include property, bonds and other asset classes.

The Fund has a wide range of ethical restrictions and is advised by an ethical advisory group that assists in the development of the Fund’s clientdriven ethical investment policy.

Distribution policy

The Fund has the capacity to make distributions from both income and capital. The annual rate of distribution is approved by the Board in discussions with the Manager.

Target investors

The Fund is suitable for all of a charity’s longterm funds where the charity is looking for a good level of distributions and long-term protection from inflation. The Fund is targeted at investors with an understanding or previous experience of investing in similar types of fund, with appropriate levels of risk tolerance and ability to bear loss.

Review of investment activities and policies of the Fund

The Board met quarterly during the year to carry out its responsibility for the approval of investment strategy, for setting distribution policy, to monitor investment diversification, suitability and risk and to review the performance of the Fund. In addition, the Board reviewed the administration, expenses and pricing of the Fund.

The Board reviewed the progress of the Manager and approved the valuation of the investments in the Fund, which are included within the portfolio statement of these Financial Statements.

During the year, the Board also met quarterly with the Manager to review the investments, transactions and policies of the Fund. The Manager’s report, which appears later, provides further details.

Responsible investment and stewardship

The Fund is managed in accordance with CCLA’s responsible investment approach. This integrates environmental, social and governance issues into investment decision making and prioritises ongoing stewardship with investee companies. These activities are conducted with the aim of increasing the security of the Fund.

Please note that the Manager is not required to assess the suitability of the Fund against each investor.

Our investors may be either retail or professional clients (both per se and elective).

Annual Report and Financial Statements

31 December 2020

COIF CHARITIES ETHICAL INVESTMENT FUND

REPORT OF THE BOARD

for the year ended 31 December 2020

The Manager is a signatory to the United Nations backed Principles for Responsible Investment (PRI) and the Financial Reporting Council’s Stewardship Code. The most recent PRI Assessment and the full response to the Stewardship Code are available at https://www.ccla.co.uk/our-approach/howwe-approach-stewardship-and-ethics.

Ethical investment

The Board’s main purpose is to obtain the best return for Unitholders, consistent with commercial prudence and the need to ensure adequate spread and diversification of assets.

The Board has adopted an ethical investment policy that is designed to reflect the values of the Fund’s Unitholders. It is set every three years following an extensive period of client consultation.

The policy incorporates a mix of ethical restrictions, engagement and positive investments.

Ethical restrictions are targeted on Unitholders’ real concerns. They include companies that have been identified by our third party data provider, MSCI (unless otherwise noted), as:

Producing landmines, cluster bombs, chemical/biological weapons, and/or nuclear weapons;
Having significant involvement (>10% of turnover) in alcohol, gambling, pornography, tobacco, high interest rate lending (as defined by the Church of England policy), non-military weapons, or strategic military sales;
Failing the manager’s rules relating to the testing of cosmetics on animals;
Having fallen behind the transition to a low carbon economy. This is currently defined as no investment in companies:
That derive more than 5% of their revenue from the extraction of energy coal or tar sands;
Whose principal business is the extraction of ‘fossil fuel’ reserves or the generation of electricity and have not demonstrated the ability to align their business with the Paris Climate Change Agreement (as determined by CCLA);
Not meeting the FTSE4Good Index Screen for baby milk substitutes or MSCI’s standard screen for single-use abortifacients. (These restrictions are implemented to reflect the Unitholders’ wish to co-operate with each other to meet the specific requirements of some client groups); and
Having a FTSE Russell ESG Rating of less than 2, on any theme, and have been judged to fail a subsequent CClA ‘comply or explain’ assessment.

05 Annual Report and Financial Statements

31 December 2020

COIF CHARITIES ETHICAL INVESTMENT FUND CCLA REPORT OF THE BOAIU) for the year ended 31 December 2020 In addition, the Fund will not purchase sovereign debt from collntrie$ agreed by the Managcr aiid the Fund 5 Advisory Committee as being 2mongsc the world's most oppressive. Controls and risk managem¢nt The Board receives and considers relar ffports from thc Manager.Ad hoc Teports and infonnltion are supplied to the Board required.The Managcr has c5thblishcd an internal control framework ¢0 provid¢ rca50nablc, but not absolute. assurdnce on the effectiveness of the internal con¢rols operAted on behalf of its clients. The eifectiveness of the internal contro15 15 sessed by the directors and senior management of thc Manager on a continuing basis. The Fund benefits from engagemcnt programme5 that are prioritised to mee¢ the needs of it$ UnitholdeT$. The Managcr has an aspirational target to dedicate 5Yo of the Fund s c2pit21 to investments that provide a clear social or environment21 benefit With the outbreak of the COVID-19 pandemic during the first quarter of 2020, the ljoard had additsonal informal meetings with the Mlager during the first six month5 of 2020 to consider a broad rang¢ of ttlevan¢ issues including Allvc5tment strate perFormance. liquidity and client behaviours. A ¢lient advisory committee ha5 been appointed to oversee the Fund's engagement a¢tivity and advise the M2n2ger on any e¢h&cal investment Issues that arise in between policy consultations. During the ycar. the Board, a&fjisted by the Man28er, reviewed thc Fund's SYSten of internal con¢roh and risk rL'porting. N Morecroft Chairman 19 July 2021 06 Annual ILeport and Financi21 Statements 31 DecenLbcr 2020

COIF CHARITIES ETHICAL INVESTMENT FUND

REPORT OF THE INVESTMENT MANAGER for the year ended 31 December 2020

Performance

Over the year the Fund achieved a total return after expenses of 9.76% on the Income Units and 9.77% on the Accumulation Units. This compares with a return of 3.95% on the comparator. Both asset allocation and stock

selection contributed to relative returns. The bias towards real assets and away from fixed income was a positive. Within the portfolio the growth-oriented companies in sectors such as technology and health outperformed.

Annualised total capital and income return

	1 year	5 years	10 years
To 31 December 2020	%	% p.a.	% p.a.
Performance against market indices (after expenses)
COIF Charities Ethical Investment Fund
Income Units*	9.76	11.51	9.87
Accumulation Units*	9.77	11.52	9.92
Comparator#	3.95	8.77	7.82
MSCI UK Investable Market Index	-11.78	4.57	5.12
MSCI World ex UK	14.08	14.51	11.82
iBoxx £ Gilts	8.83	5.74	5.76
MSCI UK Monthly Property*	-1.03	4.39	7.55
Consumer Prices Index (CPI)	0.65	1.71	1.82

Comparator – Composite: From 01.01.18 MSCI UK IMI 30%, MSCI World ex UK 45%, MSCI UK Monthly Property 5%, iBoxx £ Gilt 15% & 7 Day LIBID 5%. To 31.12.17 MSCI UK IMI 45%, MSCI Europe Ex UK 10%, MSCI North America 10%, MSCI Pacific 10%, AREF/IPD™ All Properties 5%, iBoxx £ Gilt 15% & 7 Day LIBID 5%. To 31.12.15 MSCI UK All Cap 45%, MSCI Europe Ex UK (50% Hedged) 10%, MSCI North America (50% Hedged) 10%, MSCI Pacific (50% Hedged) 10%, IPD™ All Properties 5%, BarCap 15% & 7 Day LIBID 5% and to 31.12.11 FTSE All-Share 60%. FTSE All -World Developed Ex UK 20%, IPD™ All Properties 10% and FTSE UK Government All Stocks 10%. * Mid to mid plus income re-invested.

Source: CCLA.

Annual Report and Financial Statements

31 December 2020

COIF CHARITIES ETHICAL INVESTMENT FUND

REPORT OF THE INVESTMENT MANAGER for the year ended 31 December 2020

Economic and Market Review

Global economic activity declined significantly in 2020, pulled lower by the COVID-19 pandemic and the measures taken to control its spread. Activity weakened in March and then fell away sharply in April as the shock of social lockdown measures had their greatest effect. Activity reached a low point in May but even though restrictions were eased in the summer months, recovery lacked real conviction; held back by poor confidence and sporadic outbreaks of infection. Governments and central banks reacted substantially to the crisis. Interest rates were reduced, and quantitative easing programmes opened. There was direct fiscal intervention to protect consumer incomes and those of businesses whose cash flows had collapsed. Although there was a common theme internationally to many policies, there was little co-ordination and this limited the effectiveness of the response.

Investment markets fell sharply at the onset of recession but then began a recovery shortly thereafter. In part this reflected relief that the recession, although deep, would be fleeting. Another important factor was the huge pool of liquidity supportive monetary policies produced, which pushed asset prices higher and yields down. Most of the major international equity

indices gave positive returns. The global index, for a Sterling based investor, returned 12.67%, with strong individual performances from Asia, 19.42%, and the US, 17.09%. At the other end of the scale, the UK was a weak performer, declining by –11.78%, reflecting the relatively poor performance in the pandemic and the high weighting in the indices of industries such as banking and energy which underperformed. The domestic fixed interest market rose as the recession developed and then traded in a relatively narrow band at the higher levels. Government bonds returned 8.88% overall, but longer dated and lower credit rated issues outperformed the general market. UK commercial property values fell, despite the positive contribution from income and an improvement in prices towards the end of the year, the sector gave a slight negative return for the period as a whole. The prime cause of the weakness was the retail sub-sector where increased concerns over rental flows and even tenant viability pulled values lower.

Annual Report and Financial Statements

31 December 2020

COIF CHARITIES ETHICAL INVESTMENT FUND

REPORT OF THE INVESTMENT MANAGER for the year ended 31 December 2020

Strategy

There have been no changes to the investment objective of the Fund or to the broad investment strategy. To achieve the target of real growth in capital values and a rising income, the portfolio has a structural bias to real assets, mainly global equites but also including domestic commercial property and infrastructure. Within the equity portfolio the emphasis is on good quality companies with growth prospects that are not dependent on trends in the broad economy.

Outlook

The global economy will struggle to grow in the early months of the new year, held back by another wave of infection and associated restrictions on activity. We are more hopeful for growth in the second quarter and beyond when some easing of restrictions is possible and a broad-based vaccination programme should begin to break the link between mobility and infection rates on a permanent basis. Monetary policy will remain accommodative and government fiscal programmes should also support recovery although, with the probable exception of the US, not on the scale of the past year. Even so, the global economy is unlikely to regain in 2021 the fall in output experienced since the end of 2019. For most it will need another year of improvement to make good the ground lost, for the UK the recovery process is expected to extend into 2023.

J Bevan Chief Investment Officer CCLA Fund Managers Limited 19 July 2021

09 Annual Report and Financial Statements

31 December 2020

COIF CHARITIES ETHICAL INVESTMENT FUND

REPORT OF THE INVESTMENT MANAGER for the year ended 31 December 2020

Top ten changes in portfolio composition Cost £’000 Purchases: HDFC Bank 11,291 The TJX Companies 10,574 TransUnion 10,073 Roper Technologies 10,052 Xylem 9,266 Kerry Group 9,125 NextEra Energy 8,994 Intercontinental Exchange Group 8,891 Yum China Holdings 8,836 Synopsys 8,744	Proceeds £’000
	Sales: Experian 10,582 Kao 9,312 NASDAQ 9,113 SS&C Technologies 7,868 PayPal Holdings 7,686 Colgate-Palmolive 7,672 Kering 7,618 Bunzl 6,923 Rio Tinto 6,837 Novartis 6,420

When a stock has both purchases and sales in the year, these transactions have been netted and the net amount has been reflected as either a net purchase or net sale in the table above.

Risk warning

Past performance is not a reliable indicator of future results. The price of the Fund’s Units and any income distributions from them may fall as well as rise and an investor may not get back the amount originally invested.

The Fund’s Units are intended only for long-term investment and are not suitable for money liable to be spent in the near future. Units are realisable on each weekly dealing day only.

The Fund may invest in collective investment schemes and other assets which may be illiquid. These include limited partnerships and other unquoted investments where valuations are open to substantial subjectivity. The Fund may also invest in the COIF Charities Property Fund, which invests directly in property and property related assets which are valued by an independent valuer and as such are open to substantial subjectivity. The performance of this Fund may be adversely affected by a downturn in the property market, which could impact on the capital and/or income value of this Fund.

This Fund may invest in emerging market countries which could be subject to political and economic change.

10 Annual Report and Financial Statements

31 December 2020

COIF CHARITIES ETHICAL INVESTMENT FUND

REPORT OF THE DEPOSITARY for the year ended 31 December 2020

Having carried out such procedures as we consider necessary to discharge our responsibilities as Depositary of the Fund, it is our opinion, based on the information available to us and the explanations provided, that in all material respects the Fund, acting through the AIFM has been managed in accordance with the rules in the sourcebook, the Scheme Particulars of the Company and as required by the AIFMD.

HSBC Bank plc Trustee and Depositary Services 8 Canada Square London E14 5HQ

HSBC Bank plc is authorised and regulated by the Financial Conduct Authority 19 July 2021

11 Annual Report and Financial Statements

31 December 2020

COIF CHARITIES ETHICAL INVESTMENT FUND

INDEPENDENT AUDITORS’ REPORT to the Trustees of COIF Charities Ethical Investment Fund

Report on the audit of the financial statements Opinion

In our opinion, the financial statements of COIF Charities Ethical Investment Fund (the “Fund”):

give a true and fair view of the financial position of the Fund as at 31 December 2020 incoming resources and application of resources, for the year then ended and of the movements in the net assets of the Fund between their position as at 1 January 2020 and 31 December 2020; and
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and applicable law), and
have been prepared in accordance with the requirements of the Charities Act 2011 and Regulation 6 of The Charities (Accounts and Reports) Regulations 2008).

We have audited the financial statements, included within the Annual Report and Financial Statements (the “Annual Report”), which comprise: the balance sheet as at 31 December 2020; the statement of total return, the statement of change in net assets attributable to unitholders for the year then ended; the distribution tables and the notes to the financial statements, which include a description of the significant accounting policies.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities under ISAs (UK) are further described in the Auditors’ responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We remained independent of the Fund in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, which includes the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

Conclusions relating to going concern

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Fund’s ability to continue as a going concern for a period of at least twelve months from the date on which the financial statements are authorised for issue.

In auditing the financial statements, we have concluded that the Manager’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Annual Report and Financial Statements

31 December 2020

COIF CHARITIES ETHICAL INVESTMENT FUND

INDEPENDENT AUDITORS’ REPORT to the Trustees of COIF Charities Ethical Investment Fund

However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the Fund’s ability to continue as a going concern.

Our responsibilities and the responsibilities of the Manager with respect to going concern are described in the relevant sections of this report.

Reporting on other information

The other information comprises all of the information in the Annual Report other than the financial statements and our auditors’ report thereon. The Manager is responsible for the other information. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except to the extent otherwise explicitly stated in this report, any form of assurance thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify an apparent material inconsistency or material misstatement, we are required to perform procedures to conclude whether there is a material misstatement of the financial statements or a material misstatement of the other information.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report based on these responsibilities.

Based on our work undertaken in the course of the audit, the Charities Act 2011 requires us to also report certain opinions and matters as described below.

Manager’s Report

In our opinion, the information given in the Report of the Investment Manager for the financial year for which the financial statements are prepared is consistent with the financial statements.

Responsibilities for the financial statements and the audit

Responsibilities of the Manager for the financial statements

As explained more fully in the Statement of Board, Depositary and Manager Responsibilities, the manager is responsible for the preparation of the financial statements in accordance with the applicable framework and for being satisfied that they give a true and fair view. The Manager is also responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Annual Report and Financial Statements

31 December 2020

COIF CHARITIES ETHICAL INVESTMENT FUND

INDEPENDENT AUDITORS’ REPORT to the Trustees of COIF Charities Ethical Investment Fund

In preparing the financial statements, the Manager is responsible for assessing the Fund’s ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless the Manager either intends to wind up or terminate the Fund, or has no realistic alternative but to do so.

Auditors’ responsibilities for the audit of the financial statements

We are eligible to act and have been appointed as auditors under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of

irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Based on our understanding of the

Fund/industry, we identified that the principal risks of non-compliance with laws and regulations related to the Charities Act 2011 and we considered the extent to which noncompliance might have a material effect on the financial statements, we also considered those laws and regulations that have a direct impact on the financial statement. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or to increase the net asset value of the Fund and assumptions and judgements made by management in their significant accounting estimates. Audit procedures performed included:

Discussions with the Manager, including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
Reviewing relevant meeting minutes, including those of the Manager’s board of directors;
Identifying and testing journal entries, specifically any journals posted as part of the financial year end close process; and
Designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing; and

14 Annual Report and Financial Statements

31 December 2020

COIF CHARITIES ETHICAL INVESTMENT FUND

INDEPENDENT AUDITORS’ REPORT to the Trustees of COIF Charities Ethical Investment Fund

Challenging assumptions and judgements made by management in their significant accounting estimates.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

Other required reporting

Charities Act 2011 exception reporting Under the Charities Act 2011 we are required to report to you if, in our opinion:

we have not received all the information and explanations we require for our audit; or
sufficient accounting records have not been kept; or
the financial statements are not in agreement with the accounting records and returns.

We have no exceptions to report arising from this responsibility.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors’ report.

Use of this report

This report, including the opinion, has been prepared for and only for the Fund’s Managers as a body in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act (Regulation 24 of The Charities (Accounts and Reports) Regulations 2008) and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

PricewaterhouseCoopers LLP

Chartered Accountants and Statutory Auditors London 19 July 2021

Annual Report and Financial Statements

31 December 2020

COIF CHARITIES ETHICAL INVESTMENT FUND

SUMMARY RISK INDICATOR

The European Union imposed legislation which sets out detailed guidelines for the calculation of the risk ratings of products to be portrayed through a summary risk indicator. It is intended to be a guide to the level of risk of this product compared to other products. It shows how likely it is that the product will lose money because of movements in the markets or because the Manager is not able to pay you. The risk of the product may be significantly higher than the one represented in the summary risk indicator where the product is not held for the recommended holding period (RHP).

	1 2 3 4 5 6 7
Lower risk Higher risk

The Manager has classified the COIF Charities Ethical Investment Fund as 3 out of 7, which is a medium-low risk class. This rates the potential losses from future performance at a medium-low level and poor market conditions are unlikely to impact the Manager’s capacity to pay you. This classification is not guaranteed and may change over time and may not be a reliable indication of the future risk profile of the Fund. The lowest category does not mean risk free.

The summary risk indicator assumes investment in the Fund for the RHP of five years. The actual risk can vary significantly if you cash in at an early stage and you may get back less.

The Fund should be considered illiquid as it is not admitted to trading on a secondary market and no alternative liquidity facility is promoted by the Manager or a third party. However, investors can request redemption at any time and the Fund deals on a weekly basis. The Fund does not include any protection from future market performance, so you could lose some or all of your investment.

A more detailed description of risk factors that apply to this product is set out in the latest Scheme Particulars, which is available on CCLA’s website or by request.

Annual Report and Financial Statements

31 December 2020

COIF CHARITIES ETHICAL INVESTMENT FUND

COMPARATIVE TABLE

Change in net assets per Unit
		Income Units
	Year to	Year to	Year to
	31.12.2020	31.12.2019	31.12.2018
	pence	pence	pence
	per Unit	per Unit	per Unit
Openingnet asset valueper Unit	259.02	218.92	225.73
Return before operating charges*	26.50	50.04	2.86
Operatingcharges	(1.92)	(1.83)	(1.71)
Return after operatingcharges*	24.58	48.21	1.15
Distributions on Income Units	(8.27)	(8.11)	(7.96)
Closing net asset value per Unit	275.33	259.02	218.92
*after direct transaction costs of:	0.12	0.09	0.10
Performance
Return after charges	9.49%	22.02%	0.51%
Other information
Closing net asset value (£’000)	974,509	790,563	499,549
Closing number of Units	353,943,445	305,217,463 228,192,607
Operating charges**	0.74%	0.74%	0.74%
Direct transaction costs	0.05%	0.03%	0.04%
Prices (pence per Unit)
Highest Unit price (offer)	279.86	264.45	243.25
Lowest Unit price (bid)	213.47	217.14	214.76

The return after charges has been calculated in accordance with the Statement of Recommended Practice for UK Authorised Funds’ (SORP) prescribed calculation methodology. This is for financial statement reporting purposes only and may differ from the Fund’s performance disclosed in the Report of the Investment Manager.

** Operating charges comprise the Manager’s annual management charge and other expenses, including VAT, but before taking account of rebates, as these only offset charges incurred within the underlying funds. The percentages above reflect these charges divided by average net assets for the year.

17 Annual Report and Financial Statements

31 December 2020

COIF CHARITIES ETHICAL INVESTMENT FUND

COMPARATIVE TABLE

Change in net assets per Unit
		Accumulation Units
	Year to	Year to	Year to
	31.12.2020	31.12.2019 31.12.2018
	pence	pence	pence
	per Unit	per Unit	per Unit
Openingnet asset valueper Unit	386.88	316.55	315.15
Return before operating charges*	40.72	73.02	3.82
Operatingcharges	(2.91)	(2.69)	(2.42)
Return after operatingcharges*	37.81	70.33	1.40
Distributions on Accumulation Units	(7.74)	(9.21)	(8.94)
Retained distributions on Accumulation Units	7.74	9.21	8.94
Closing net asset value per Unit	424.69	386.88	316.55
*after direct transaction costs of:	0.18	0.13	0.14
Performance
Return after charges	9.77%	22.22%	0.44%
Other information
Closing net asset value (£’000)	233,389	163,515	81,893
Closing number of Units	54,955,318	42,265,370 25,870,260
Operating charges**	0.74%	0.74%	0.74%
Direct transaction costs	0.05%	0.03%	0.04%
Prices (pence per Unit)
Highest Unit price (offer)	428.42	391.92	345.79
Lowest Unit price (bid)	318.85	313.97	299.81

** Operating charges comprise the Manager’s annual management charge and other expenses, including VAT, but before taking account of rebates, as these only offset charges incurred within the underlying funds. The percentages above reflect these charges divided by average net assets for the year.

18 Annual Report and Financial Statements

31 December 2020

COIF CHARITIES ETHICAL INVESTMENT FUND

OPERATING CHARGES ANALYSIS

for the year ended 31 December 2020

The table below analyses expenses in note 4 to the financial statements. These expenses also represent the total operating charges, which are shown below as a percentage of average net assets of the Fund.

	31.12.2020	31.12.2019
	%	%
Manager’s annual management charge including VAT	0.72	0.72
Manager’s fee for ethical services	0.00	0.00
Safe custody fees and depositary fee	0.01	0.01
Other expenses	0.01	0.01
Total operating charges	0.74	0.74

19 Annual Report and Financial Statements

31 December 2020

COIF CHARITIES ETHICAL INVESTMENT FUND

PORTFOLIO ANALYSIS

at 31 December 2020

Overseas Equities 69.29% UK Equities 9.25% Infrastructure & Operating Assets 7.82% Cash and Near Cash 4.66% Property 4.27% Contractual & Other Income 3.36% Private Equity & Other 1.35%

Breakdown of Overseas Equities

Breakdown of Equities by Sector

by Geography

North America	45.96%
Developed Europe	13.12%
Asia Pacific ex Japan	8.23%
Japan	1.15%
Other	0.83%
	69.29%

Information Technology	17.02%
Health Care	11.93%
Financials	10.85%
Industrials	8.91%
Consumer Discretionary	8.33%
Communication Services	6.64%
Consumer Staples	6.28%
Real Estate	5.15%
Utilities	1.73%
Materials	1.70%
	78.54%

		Fair	% of
		value	total net
	Holding	£’000	assets
Social 1.35% (31.12.19 – 1.99%)
European Student Housing Fund**	1	2,878	0.24
GCP Student Living	4,400,276	6,292	0.52
KMG Wren Retirement Fund**	1,416	1,086	0.09
Triple Point Social Housing REIT	5,616,598	6,094	0.50
PROPERTY 4.23% (31.12.19 – 5.31%)
Aberdeen Standard European Logistics Income	3,115,365	3,349	0.28
COIF Charities Property Fund Income Units*	39,091,751	42,583	3.53
Tritax Eurobox REIT	5,206,649	5,061	0.42
CONTRACTUAL & OTHER INCOME 3.34%
(31.12.19 – 5.01%)
Ares Capital	613,778	7,584	0.63
Duet Real Estate Finance***	549,085	–	–
GCP Asset Backed Income Fund	5,884,808	5,249	0.43
GCP Infrastructure Investments	6,164,712	6,707	0.56
Hipgnosis Songs Fund	6,281,967	7,758	0.64
KKR Mezzanine Partners I**	1	278	0.02
KKR Private Credit Opportunities Partners II**	1	1,363	0.11
RM Secured Direct Lending	2,077,951	1,787	0.15
Round Hill Music Royalty Fund	4,226,214	3,154	0.26
Sequoia Economic Infrastructure Income Fund	5,639,802	6,192	0.51
Social and Sustainable Housing**	1	346	0.03
FORWARD CURRENCY CONTRACTS 0.00%
(31.12.19 – 0.04%)
INVESTMENT ASSETS		1,151,555	95.34
NET OTHER ASSETS		56,343	4.66
TOTAL NET ASSETS		1,207,898	100.00

The COIF Charities Property Fund is managed by the Manager and represents a related party transaction. ** Unquoted investments.

*** Suspended quoted securities.

27 Annual Report and Financial Statements

31 December 2020

COIF CHARITIES ETHICAL INVESTMENT FUND

STATEMENT OF TOTAL RETURN for the year ended 31 December 2020

		Year	ended	Year	ended
		31.12.2020		31.12.2019
	Note	£’000	£’000	£’000	£’000
Income
Net capital gains	2		89,075		136,026
Revenue	3	22,228		22,365
Expenses	4	(7,705)		(5,961)
Net revenue before taxation		14,523		16,404
Taxation	5	(1,537)		(1,456)
Net revenue after taxation			12,986		14,948
Total return before distributions			102,061		150,974
Distributions	6		(30,992)		(25,741)
Change in net assets attributable to
Unitholders from investment activities			71,069		125,233

STATEMENT OF CHANGE IN NET ASSETS ATTRIBUTABLE TO UNITHOLDERS for the year ended 31 December 2020

	Year	ended	Year	ended
	31.12.2020		31.12.2019
	£’000	£’000	£’000	£’000
Opening net assets attributable to Unitholders		954,078		581,442
Amounts receivable on issue of Units	211,909		277,954
Amounts payable on cancellation of Units	(37,340)		(33,974)
In-specie transactions	4,317		–
		178,886		243,980
Change in net assets attributable to
Unitholders from investment activities		71,069		125,233
Retained distributions on Accumulation Units		3,865		3,423
Closing net assets attributable to Unitholders		1,207,898		954,078

The notes on pages 30 to 48 and distribution tables on page 49 form part of these financial statements.

Annual Report and Financial Statements

31 December 2020

COIF CHARITIES ETHICAL INVESTMENT FUND CCLA BALANCE SHEFr at 31 Decernber 2020 31.12.2020 £000 £'oo 31.12.2019 £'ooo No ASSErs Fixed assets- Investments Currcnt asset5- Debtors Cash equivalenrs Ch and bank balances Amounts held for forward contracts Tot21 current *8sets Total assets 1.151.555 893.739 2.913 56,831 4.796 1,495 61.652 2,290 1,980 64.54 1.216.095 67,417 961.156 LIABILtTIES IDvestment liabilitie5 Creditors.. Ocher creditors Distribution payable on Income Units Total creditors Total liabilities Net assets attributable to Uni¢holders 245 764 7.433 607 6.226 8,197 8,197 1,207,898 6,833 7,078 954,078 Th¢ fin¢131 s¢atcments on pages 28 to 49 have been approved by the Board. Approved on behalf of the Board 19 July 2021 N Morecroft. Chairman The notes on page5 30 to 48 and distribution tables on page 49 form part of these financial stacementr. 29 Annual ILeport and Financial Statements 31 December 2020

COIF CHARITIES ETHICAL INVESTMENT FUND

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 December 2020

1. Accounting policies

(a) Basis of preparation

The financial statements have been prepared on a going concern basis, in compliance with FRS 102 and in accordance with the Statement of Recommended Practice for UK Authorised Funds (SORP) issued by The Investment Association in May 2014 (and amended in June 2017), the Charities Act 2011, the Scheme and the Collective Investment Scheme sourcebook. The financial statements have been prepared under the historical cost basis, as modified by the revaluation of investments.

The Fund is exempt from preparing a statement of cash flows under FRS 102 as substantially all of the Fund’s investments are highly liquid, substantially all of the Fund’s investments are carried at market value and the Fund provides a statement of change in net assets.

(b) Revenue recognition

Dividends on ordinary stocks, including special dividends where appropriate, distributions received on collective investment schemes, preference shares and unit trusts are accrued to revenue on the dates when the investments are first quoted ex-dividend or otherwise, on receipt of cash. Interest on government and other fixed interest stocks are accrued on a daily basis. Interest on bank deposits are accrued on a daily basis and interest on deposits in the COIF Charities Deposit Fund are credited to revenue on receipt of cash.

Revenue on debt securities is recognised on the effective yield basis which takes into account the amortisation of any discounts or premiums arising on the purchase price, compared to the final maturity value, over the remaining life of the security. Accrued interest purchased or sold is excluded from the cost of the security and is recognised as revenue of the Fund.

Dividends received from US real estate investment trusts (US REITs) are allocated between revenue and capital for distribution purposes. The split is based on the year-end tax reporting date issued by the US REIT. Where the split of revenue and capital has not been announced at the accounting date a provisional split will be used. The provision will be calculated on the prior year’s aggregated dividend split for each US REIT.

Revenue is stated net of irrecoverable tax credits. In the case where revenue is received after the deduction of withholding tax, the revenue is shown gross of taxation and the tax consequences are shown within the tax charge. Overseas tax recovered is recorded in the period it is received.

30 Annual Report and Financial Statements

31 December 2020

COIF CHARITIES ETHICAL INVESTMENT FUND

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 December 2020

1. Accounting policies (continued)

(c) Stock dividends

The ordinary element of stock received in lieu of cash dividends is recognised as revenue of the Fund. Any enhancement above the cash dividend is treated as capital.

(d) Special dividends, share buy-back or additional share issue

The underlying circumstances behind a special dividend, share buy-back or additional share issue are reviewed on a case by case basis in determining whether the amount is revenue or capital in nature.

(e) Expenses

During the year, the annual management charge (AMC), paid to the Manager, was taken to the capital of the Fund. The AMC is based on a fixed percentage of the value of the Fund and was 0.60% p.a. plus VAT during the year.

The Fund received AMC rebates credited to the capital of the Fund for its holdings during the year in the COIF Charities Property Fund. The Fund also received AMC rebates credited to the revenue of the Fund for its deposits in the COIF Charities Deposit Fund, where the AMC is charged to revenue.

On a daily basis, the net asset value of the Fund at the end of the previous day is taken to calculate the AMC due. The Manager charges an AMC for the provision of managing investments. From 1 October 2019, the Manager ceased charging the fee for ethical and stewardship services.

The depositary fee, audit fee, legal fees, safe custody fees and transaction charges, insurance fees and other fees are charged separately to the revenue of the Fund before distribution.

(f) Distributions

Distributions are paid quarterly and can also be supported by the Fund's capital.

It is the Fund’s policy to calculate the distribution based on the revenue on debt securities which is computed on a coupon basis. A reconciliation of the net distribution to the net income of the Fund as reported in the statement of total return is shown in note 6.

The Fund can utilise an income reserve to even out the fluctuations in revenue which arise over the years. Movements in the income reserve are therefore adjustments made to the net revenue in determining the distributions. The income reserve balance was £nil as at 31 December 2020. There was no change in the income reserve balance during the current and prior reporting period.

31 Annual Report and Financial Statements

31 December 2020

COIF CHARITIES ETHICAL INVESTMENT FUND

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2020

1. Accounting policies (continued)

(g) Basis of valuation

Quoted investments are valued at bid-market values at the close of business on the last business day of the accounting period. Any unquoted, unlisted, delisted or suspended investments are stated at valuation by the Manager and reviewed by the Board.

The Manager’s valuation is based upon valuations supplied by the Manager of the underlying investments. The Manager satisfies itself that these valuations can be relied on by valuations from independent experts (which may include discounted cash flow calculations, or prices based upon income yield); or net asset values which the Manager considers reliable, based upon audit reports and the Manager’s own knowledge of the investee entity. The estimates and assumptions underlying the valuations are kept under review by the Manager and judgements are reviewed, considering all factors affecting the investments.

For unquoted investments, the latest valuation point may be prior to the year end, but the Manager is satisfied that the resultant portfolio valuation would not be materially different from a valuation carried out as at the year end.

Suspended securities are valued by the Manager having regard to the last traded price on or before the date of suspension and subsequent available information. Suspended securities are written off after they have been carried at nil value for two years.

(h) Foreign exchange

Assets and liabilities in foreign currencies are expressed in sterling at rates of exchange ruling on the accounting date. Transactions in foreign currencies are translated into sterling at the exchange rates ruling on the transaction dates.

The Fund may enter into forward currency contracts to protect the sterling value of the underlying portfolio of securities against the effect of possible adverse movements in foreign exchange rates. Fluctuations in the value of such forward currency contracts are recorded as unrealised gains or losses. Realised gains or losses include net gains or losses on transactions that have terminated by settlement or by the Fund entering into offsetting commitments.

Annual Report and Financial Statements

31 December 2020

COIF CHARITIES ETHICAL INVESTMENT FUND

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2020

1. Accounting policies (continued)

(i) Cash equivalents

The Manager has treated some assets as Cash equivalents for the purposes of the Balance Sheet disclosure. Investments are regarded as Cash equivalents if they meet all of the following criteria:

highly liquid investments held in sterling that are readily convertible to a known amount of cash;
are subject to an insignificant risk of change in value; and
provide a return no greater than the rate of a three month high quality government bond.

2. Net capital gains

Net capital gains
	31.12.2020	31.12.2019
	£’000	£’000
The net capital gains during the year comprise:
Unrealised gains on non-derivative securities*	78,784	102,184
Realised gains on non-derivative securities*	40,411	24,257
Currency gains/(losses)	5,278	(391)
Manager’s annual management charge rebate – see note 1(e)**	383	310
Unrealised gains on forward currency contracts*	–	431
Realised (losses)/gains on forward currencycontracts*	(35,781)	9,235
	89,075	136,026

Where net realised gains include gains/(losses) arising in previous years, a corresponding (loss)/gain is included in unrealised gains/(losses).

** This amount represents the annual management charge rebates credited to the Fund's capital. This is for the Fund's deposits in the COIF Charities Property Fund where the annual management charge is charged to capital.

33 Annual Report and Financial Statements

31 December 2020

COIF CHARITIES ETHICAL INVESTMENT FUND

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 December 2020

3.	Revenue 31.12.2020 31.12.2019 £’000 £’000
	Overseas dividends 13,775 11,939 UK dividends 4,185 5,287 Franked dividend distributions 2,033 2,294 Property income distributions 1,539 1,237 Interest on the COIF Charities Deposit Fund 268 400 Franked dividends on unquoted stocks 218 592 Manager’s annual management charge rebate 192 126 Interest on debt securities 9 470 Bank interest 7 20 Other income 2* –
	22,228 22,365

This amount represents the annual management charge rebates credited to the Fund's revenue. This is for the Fund's deposits in the COIF Charities Deposit Fund where the annual management charge is charged to revenue.

4. Expenses

Expenses
	31.12.2020	31.12.2019
	£’000	£’000
Payable to the Manager, associates of the Manager
and agents of either of them:
Manager’s annual management charge – see note 1(e)	7,484	5,768
Manager’s fee for ethical services	–	6
	7,484	5,774
Payable to the Depositary, associates of the
Depositary and agents of either of them:
Safe custody fees	74	56
Depositaryfee	60	52
	134	108

34 Annual Report and Financial Statements

31 December 2020

COIF CHARITIES ETHICAL INVESTMENT FUND

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 December 2020

4.	*Expenses(continued)* 31.12.2020 31.12.2019 £’000** £’000
	Other expenses: Audit fee 14 13 Insurance fee 9 2 Other fees 64 64
	87 79
	Total expenses 7,705 5,961

The above expenses include VAT where applicable.

Audit fee net of VAT is £12,000 (31.12.2019, £10,979).

5. Taxation

The Fund has charitable status and is exempt from UK Income and Capital Gains Tax pursuant to Part 11 Chapter 3 of the Corporation Tax Act 2010. Distributions are paid, and reinvested revenue credited gross to Unitholders on the basis that all recoverable UK taxation has been reclaimed. Overseas withholding tax is deducted in full from overseas revenue. Recoverable withholding tax is credited to revenue, on receipt.

	31.12.2020	31.12.2019
	£’000	£’000
Overseas taxation suffered in the year	1,348	1,177
Tax on capital special dividends	11	15
Overseas recoverable withholdingtax written off in theyear	178	264
Total taxation	1,537	1,456

Annual Report and Financial Statements

31 December 2020

COIF CHARITIES ETHICAL INVESTMENT FUND

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 December 2020

6. Distributions

Distributions take account of revenue received on the issue of Units and revenue deducted on the cancellation of Units, and comprise:

	31.12.2020	31.12.2019
	£’000	£’000
31 March – interim distribution	7,397	5,864
30 June – interim distribution	7,842	6,649
30 September – interim distribution	7,755	6,851
31 December – final distribution	8,348	7,053
	31,342	26,417
Add: revenue deducted on cancellation of Units	98	75
Deduct: revenue received on issue of Units	(448)	(751)
Net distribution for the year	30,992	25,741
Net revenue after taxation for the year	12,986	14,948
Amortisation under effective yield	–	(222)
Distribution from capital	10,511	5,226
Manager’s annual management charge – see note 1(e)	7,484	5,774
Tax on capital special dividends	11	15
Net distribution for the year	30,992	25,741

Details of the distribution per Unit are set out in the distribution tables on page 49.

The Manager’s annual management charge is charged to capital, so this amount above is added back in the table above to the net distribution for the year and deducted from capital.

There were unclaimed distributions as at 31 December 2020 of £7,518 (31.12.2019, £3,045).

Annual Report and Financial Statements

31 December 2020

COIF CHARITIES ETHICAL INVESTMENT FUND

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 December 2020

7. Debtors

	31.12.2020	31.12.2019
	£’000	£’000
Accrued revenue	1,422	1,444
Amounts receivable on creation of Units	1,370	–
Sales awaiting settlement	78	9
Prepayments	43	42
	2,913	1,495
Cash equivalents, cash and bank balances
	31.12.2020	31.12.2019
	£’000	£’000
Cash equivalents – cash in the COIF Charities Deposit Fund	56,831	61,652
Cash and bank balances – cash at bank	4,796	2,290
Amounts held for forward currency contracts	–	1,980

8. Cash equivalents, cash and bank balances

9. Other creditors

Other creditors
	31.12.2020	31.12.2019
	£’000	£’000
Accrued expenses	764	603
Accrued income tax	–	4
	764	607

37 Annual Report and Financial Statements

31 December 2020

COIF CHARITIES ETHICAL INVESTMENT FUND

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 December 2020

10. Financial instruments

Fair value

Securities held by the Fund are valued at bid-market value (see note 1(g)). Bid-market value is considered to be a fair representation of the amount repayable to Unitholders should they wish to sell their Units. Other financial assets and liabilities of the Fund are included in the balance sheet at their fair value.

The main risks arising from the Fund’s financial instruments and the Manager’s policies for managing these risks are summarised below. These policies have been applied consistently throughout the year and the comparative year.

Market price risk

This is an actively managed Fund which invests mainly in UK and overseas equities, UK Property and fixed interest investments. Investors are thus exposed to market price risk, which can be defined as the uncertainty about future price movements of the financial instruments the Fund is invested in. Market price risk arises mainly from economic factors, including investor confidence and is not limited to interest rate and currency movements. This exposure to market price risk may result in substantial fluctuations in the Unit price from time to time, although there will generally be a positive correlation in the movement of the Unit price to the markets the Fund is invested in. The Fund seeks to minimise the risks by holding a diversified portfolio of investments in line with the Fund’s investment objectives. Risk is monitored at both the asset allocation and stock selection levels by Directors of the Manager on a regular basis and also by the Board.

At 31 December 2020, if the price of the investments held by the Fund increased or decreased by 5%, with all other variables remaining constant, then the net assets attributable to Unitholders, and profit or loss, would increase or decrease respectively by approximately £57,578,000 (31.12.2019, £44,675,000).

38 Annual Report and Financial Statements

31 December 2020

COIF CHARITIES ETHICAL INVESTMENT FUND

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 December 2020

10. Financial instruments (continued)

Credit risk

The Fund’s transactions in securities expose it to the risk that the counterparty will not deliver the investment for a purchase, the cash for a sale or the settlement amounts for forward currency contracts. To minimise this, the Fund only deals with an approved list of brokers maintained by the Manager. Depending on the counterparty, the Fund may employ collateral arrangements for forward currency contracts.

Liquidity risk

Financial instruments held by the Fund, excluding short-term debtors and creditors, are made up of UK and overseas equities, fixed interest securities, pooled funds and sterling and overseas cash deposits. These assets are generally liquid (except for the Unit trusts, which are realisable only on their weekly or monthly dealing dates, and the holdings in the unquoted investments, which are not readily realisable) and enable the Fund to meet the payment of any redemption of Units that Unitholders may wish to make.

Currency risk

The Fund is exposed to fluctuations in foreign currencies as some of its assets and revenue are denominated in currencies other than sterling, the base currency of the Fund. The Fund may enter into forward currency contracts to protect the sterling value of the underlying portfolio of securities against the effect of possible adverse movements in foreign exchange rates on investments and revenue accrued, but not yet received. In respect of revenue, receipts are converted to sterling shortly after receipt.

At 31 December 2020, if the value of sterling increased or decreased by 1% against all currencies, with all other variables remaining constant, then the net assets attributable to Unitholders, and profit or loss, would decrease or increase respectively by approximately £8,892,000 (31.12.2019, £3,861,000).

Annual Report and Financial Statements

31 December 2020

COIF CHARITIES ETHICAL INVESTMENT FUND

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2020

10. Financial instruments (continued)

Currency risk (continued)

The Fund held derivatives relating to forward currency contracts with a net value of £nil as at 31 December 2020 (31.12.2019, £430,804).

The total foreign currency exposure at 31 December was:

31.12.2020 31.12.2019 Non- Non- Monetary monetary Monetary monetary exposures exposures Total exposures exposures Total Currency £’000 £’000 £’000 £’000 £’000 £’000 Australian dollar – 2,177 2,177 – 10,629 10,629 Canadian dollar 74 6,190 6,264 75 11,136 11,211 Danish krona – 12,752 12,752 – 3,776 3,776 Euro 242 123,406 123,648 28 36,776 36,804 Hong Kong dollar – – – – 26,070 26,070 Indonesian rupiah – 32,294 32,294 – – – Japanese yen – 13,904 13,904 58 24,365 24,423 Korean won – 4,358 4,358 – 6,792 6,792 Malaysian ringgit – 10,073 10,073 – – – Mexican peso – 13,124 13,124 – – – Swedish krona – – – – 14,317 14,317 Swiss franc – 42,643 42,643 – 39,294 39,294 Taiwan dollar 67 18,594 18,661 43 7,260 7,303 US dollar 508 608,775 609,283 547 204,900 205,447 Total 891 888,290 889,181 751 385,315 386,066

Interest rate risk

The majority of the Fund’s financial assets are equities which neither receive interest nor have maturity dates. The Fund also invests in fixed interest securities and cash deposits, the revenue of which may be affected by changes to interest rates relevant to particular securities or as a result of the Manager being unable to secure similar returns on the disposal or redemption of securities. The value of fixed interest securities may be affected by interest rate movements or the expectation of such movements in the future.

A sensitivity analysis for interest rate risk is not shown as the impact is unlikely to be significant.

40 Annual Report and Financial Statements

31 December 2020

COIF CHARITIES ETHICAL INVESTMENT FUND

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2020

10. Financial instruments (continued)

Interest rate risk (continued)

The total exposure at 31 December 2020 was:

			Financial assets
	Floating rate	Fixed rate	not carrying
	financial assets*	financial assets	interest	Total
Currency	£’000	£’000	£’000	£’000
Sterling	61,625	–	265,289	326,914
Euro	–	–	123,648	123,648
Japanese yen	–	–	13,904	13,904
US dollar	2	–	609,281	609,283
Other	–	–	142,346	142,346
Total	61,627	–	1,154,468	1,216,095
			Financial
	Floating rate	Fixed rate	liabilities
	financial	financial	not carrying
	liabilities	liabilities	interest	Total
Currency	£’000	£’000	£’000	£’000
Sterling	–	–	(8,197)	(8,197)
Total	–	–	(8,197)	(8,197)

Annual Report and Financial Statements

31 December 2020

COIF CHARITIES ETHICAL INVESTMENT FUND

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2020

10. Financial instruments (continued)

Interest rate risk (continued)

The total exposure at 31 December 2019 was:

			Financial assets
	Floating rate	Fixed rate	not carrying
	financial assets*	financial assets	interest	Total
Currency	£’000	£’000	£’000	£’000
Sterling	65,901	–	508,944	574,845
Euro	–	–	72,366	72,366
Japanese yen	–	–	24,423	24,423
US dollar	21	–	384,720	384,741
Other	–	–	119,392	119,392
Total	65,922	–	1,109,845	1,175,767
			Financial
	Floating rate	Fixed rate	liabilities
	financial	financial	not carrying
	liabilities	liabilities	interest	Total
Currency	£’000	£’000	£’000	£’000
Sterling	–	–	(6,833)	(6,833)
Euro	–	–	(35,562)	(35,562)
US dollar	–	–	(179,294)	(179,294)
Total	–	–	(221,689)	(221,689)

The floating rate financial assets of the Fund earn interest at rates based on either LIBOR or base rate.

All financial liabilities are due to be settled within one year or on demand.

Annual Report and Financial Statements

31 December 2020

COIF CHARITIES ETHICAL INVESTMENT FUND

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 December 2020

11. Commitments and contingent liabilities

Undrawn commitments at 31 December were:

Commitments and contingent liabilities Undrawn commitments at 31 December were:
	31.12.2020	31.12.2019
	£	£
Clean Growth Fund	3,038,938	–
KKR Private Credit Opportunities Partners II	2,817,809	2,411,967
Pan-European Infrastructure II	1,903,647	1,722,587
Rubicon Partners V	1,665,231	–
Social and Sustainable Housing	1,302,105	558,567
KKR Global Infrastructure Investors III	1,227,578	1,615,943
Infracapital Partners III	1,217,940	2,252,642
Clean Energy and Environment Fund	1,090,627	1,848,134
Blackstone Capital Partners Asia	1,083,523	1,358,977
Strategic Partners Offshore Real Assets – Infrastructure II	923,787	1,449,147
NextPower III	739,197	–
Pan-European Infrastructure Fund I	174,823	165,494
KKR Mezzanine Partners I	36,638	119,338
European Student Housing Fund	–	–
UK Energy Efficiency IA	–	334,775

There were no other commitments or contingent liabilities as at 31 December 2020 (31.12.2019, £nil).

12. Unquoted and other investments

At 31 December 2020, 3.53% (31.12.2019, 4.70%) of the value of the Fund was held in Units in the COIF Charities Property Fund.

At 31 December 2020, the Fund held 7.29% (31.12.2019, 7.28%) of the value of the COIF Charities Property Fund. The investment in the COIF Charities Property Fund may not be readily realisable, as the Manager may impose a period of notice or delay which is currently 90 days notice, not exceeding six months, before carrying out a redemption of Units in that Fund, if it is deemed to be necessary to protect the interests of Unitholders of the Fund or to permit properties to be sold to meet a redemption.

All unquoted investments are listed in the Portfolio Statement.

Annual Report and Financial Statements

31 December 2020

COIF CHARITIES ETHICAL INVESTMENT FUND

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 December 2020

13. Board remuneration

The Board members receive no remuneration from the COIF Charity Funds. Mr Glenn Newson was appointed a Director of CCLA Investment Management Limited (CCLA IM) on 29 October 2018 and received remuneration from CCLA IM, which is disclosed in CCLA IM’s financial statements.

for the year ended 31 December 2020

15. Portfolio transaction costs (continued)

For the current year and the comparative year, in the case of equities, commissions and taxes are paid by the Fund on each transaction. In addition, there is a dealing spread between the buying and selling prices of the underlying investments. Unlike shares, the majority of other types of investments (such as bonds, funds, money market instruments, derivatives) have no separately identifiable transaction costs; these costs form part of the dealing spread. Dealing spreads vary considerably depending on the transaction value and market sentiment.

16. Unitholders’ funds – reconciliation of Units

	31.12.2020	31.12.2020
	Income	Accumulation
	Units	Units
Opening number of Units at beginning of year	305,217,463	42,265,370
Units issued in year	59,881,487	14,898,258
Units cancelled in year	(11,873,514)	(1,728,367)
Units converted inyear	718,009	(479,943)
Closing number of Units at end of year	353,943,445	54,955,318

All Units carry the same rights.

17. Fair value of financial assets and financial liabilities

In respect of financial assets and liabilities other than investments (including investment liabilities), there is no material difference between their value, as shown on the balance sheet, and their fair value.

Investments are held at fair value. An analysis of the valuation technique used to derive fair value of the investments is shown below:

The fair value of investments has been determined using the following hierarchy:

Level 1 The unadjusted quoted price in an active market for identical assets or liabilities that the entity can access at the measurement date.
Level 2 Inputs other than quoted prices included above that are observable (i.e. developed using market data) for the asset or liability, either directly or indirectly.
Level 3 Inputs that are unobservable (i.e. for which market data is unavailable) for the asset or liability.

47 Annual Report and Financial Statements

31 December 2020

COIF CHARITIES ETHICAL INVESTMENT FUND

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 December 2020

17. Fair value of financial assets and financial liabilities (continued) For the year ended 31 December 2020

	Level 1	Level 2	Level 3	Total
Category	£’000	£’000	£’000	£’000
Investment assets	1,083,329	42,583	25,643	1,151,555
	1,083,329	42,583	25,643	1,151,555

For the year ended 31 December 2019

	Level 1	Level 2	Level 3	Total
Category	£’000	£’000	£’000	£’000
Investment assets	827,357	45,518	20,864	893,739
Investment liabilities	–	(245)	–	(245)
	827,357	45,273	20,864	893,494

For financial instruments which have quoted prices for identical instruments in active markets, those prices are taken to be fair value.

For financial instruments for which the Manager uses valuation techniques using observable market data, the inputs include: prices of recent transactions for identical instruments in inactive markets; broker quotes; evaluated pricing data from data providers; or prices quoted for closely similar (but not identical) instruments.

For financial instruments for which the Manager uses valuation techniques using non-observable data, the inputs include: valuations from independent experts (which may include discounted cash flow calculations, or prices based upon income yield); or net asset values which the Manager considers reliable, based upon audit reports and the Manager’s own knowledge of the investee entity.

For derivatives, fair value is the price that would be required to close out the contract at the balance sheet date.

18. Subsequent event

Unitholders were offered to participate in a low-cost switch between the COIF Charities Ethical Investment Fund and the COIF Charities Investment Fund on 2 July 2021. As a result, the net subscriptions and redemptions into the Fund on the 2 July 2021 were 30.53% of the 31 December 2020 NAV.

Annual Report and Financial Statements

31 December 2020

COIF CHARITIES ETHICAL INVESTMENT FUND

DISTRIBUTION TABLES

for the year ended 31 December 2020

			Dividends payable/paid	Dividends payable/paid
Period ended	Date payable/paid		pence per Unit
	2020	2019	2020	2019
Income Units
31 March	29 May	31 May	2.04	2.02
30 June	28 August	30 August	2.04	2.02
30 September	30 November	29 November	2.09	2.03
31 December	26 February	28 February	2.10	2.04
			8.27	8.11
			Revenue accumulated
Period ended			pence per Unit
			2020	2019
Accumulation Units
31 March			2.12	2.32
30 June			2.20	2.74
30 September			1.76	2.20
31 December			1.66	1.95
			7.74	9.21

The distributions for Income Units were paid in the same year, apart from the distribution declared on 31 December which is payable on the 26 February in the subsequent year.

49 Annual Report and Financial Statements

31 December 2020

COIF CHARITIES ETHICAL INVESTMENT FUND

STATEMENT OF BOARD, TRUSTEE, DEPOSITARY AND MANAGER RESPONSIBILITIES

Responsibilities of the Board

The Board shall comply with the duty of care when exercising its powers and discharging its duties under the Scheme, as follows:

making and revising the written statement of the investment objectives of the Fund and ensuring that details of such investment objectives will be included in the Scheme Particulars;
determining the criteria and methods for evaluating the performance of the Fund;
granting prior written approval to the Manager should the Manager wish to enter into certain types of investment or a specific course of borrowing on behalf of the Fund;
making representations to the Trustee on the winding up of the Fund: provided that any Board member who has any interests in the Trustee or the Manager shall not participate in the Board’s discussions and decisions on the matter and shall not be counted in the quorum necessary for the transaction of such business; and
informing the Charity Commission promptly and in writing if the Board is not satisfied at any time as to the compliance of the Trustee or the Manager with the Scheme or the Scheme Particulars.

Under the Alternative Investment Fund Managers Directive (“AIFMD”), the Board has certain additional responsibilities including:

appointing the Auditor of the Fund and agreeing their terms of engagement;
making an annual report on the discharge of the Board’s responsibilities;
the duty to inform the Financial Conduct Authority promptly and in writing if the Board is not satisfied with the compliance of the Trustee or the Manager with the applicable provisions of AIFMD; and
determining the rate of remuneration of the Trustee and the Manager in accordance with the Scheme and the Scheme Particulars;
applying to the Charity Commission for an order to discharge the Trustee from the provisions of the Scheme and an order to appoint a new Trustee of the provisions of the Scheme;
the direct power (without reference to the Charity Commission) to require the removal of the Manager and/or the Trustee where it considers for good and sufficient reason that a change of Manager or Trustee is in the interests of the Participating Charities.

50 Annual Report and Financial Statements

31 December 2020

COIF CHARITIES ETHICAL INVESTMENT FUND

STATEMENT OF BOARD, TRUSTEE, DEPOSITARY AND MANAGER RESPONSIBILITIES

Responsibilities of the Trustee

The Trustee shall be responsible for those aspects of the administration and management of the Fund and its property which are specified in the Scheme. The Trustee shall comply with the duty of care when exercising its powers and discharging its duties. The following are the duties and powers of the Trustee:

making distributions or allocations to Participating Charities in proportion to their respective Units in the property of the Fund;
the making of an annual report on the discharge of its responsibilities for the management of the Fund; and
winding up the Fund.
the supervision and oversight of the Manager’s compliance with the Scheme and the Scheme Particulars. In particular, the Trustee shall be satisfied that the Manager is competently exercising its powers and discharging its duties under the Scheme, and that the Manager is maintaining adequate and proper records;
the appointment, supervision and oversight of any Registrar or other delegate which it has appointed in accordance with the Scheme;
the custody and control of the property of the Fund and the collection of all income due to the Fund;

The Trustee shall take all steps and execute all documents as are necessary to secure that instructions given to it by the Manager are carried out as to the exercise of rights (including voting rights) attaching to the ownership of property of the Fund and that the purchases and sales of investments for or of the Fund are properly completed.

The Trustee shall maintain such records as are necessary to enable it to comply with this Scheme and with section 130 of the Charities Act and to demonstrate that such compliance has been achieved.

the creation and cancellation of Units as instructed by the Manager (except where the Scheme Particulars permit the Trustee to disregard those instructions);

51 Annual Report and Financial Statements

31 December 2020

COIF CHARITIES ETHICAL INVESTMENT FUND

STATEMENT OF BOARD, TRUSTEE, DEPOSITARY AND MANAGER RESPONSIBILITIES

Responsibilities of the Depositary

The Depositary must ensure that the Fund is managed in accordance with the Financial Conduct Authority’s Investment Funds Sourcebook, (“the Sourcebook”), the Alternative Investment Fund Managers Directive (“AIFMD”) (together “the Regulations”) and the Fund’s Scheme Particulars.

The Depositary must in the context of its role act honestly, fairly, professionally, independently and in the interests of the Fund and its investors.

The Depositary is responsible for the safekeeping of the assets of the Fund in accordance with the Regulations.

The Depositary must ensure that:

the Fund’s cash flows are properly monitored and that cash of the Fund is booked into the cash accounts in accordance with the Regulations;
the assets under management and the net asset value per Unit of the Fund are calculated in accordance with the Regulations;
any consideration relating to transactions in the Fund’s assets is remitted to the Fund within the usual time limits;
that the Fund’s income is applied in accordance with the Regulations; and
the instructions of the Alternative Investment Fund Manager (“the AIFM”) are carried out (unless they conflict with the Regulations).

The Depositary also has a duty to take reasonable care to ensure that the Fund is managed in accordance with the Scheme Particulars in relation to the investment and borrowing powers applicable to the Fund.

the sale, issue, repurchase, redemption and cancellation of Units are carried out in accordance with the Regulations;

52 Annual Report and Financial Statements

31 December 2020

COIF CHARITIES ETHICAL INVESTMENT FUND

STATEMENT OF BOARD, TRUSTEE, DEPOSITARY AND MANAGER RESPONSIBILITIES

Responsibilities of the Manager

The Manager shall be responsible for those aspects of the administration and management of the Fund and its property which are specified in the Scheme. The Manager shall comply with the duty of care when exercising its powers and discharging its duties under this Scheme. The following are the duties and powers of the Manager:

instructing the Trustee with respect to the creation and cancellation of Units;
managing the investments of the Fund in conformity with the investment objectives made by the Board;
ensuring that regular valuations of the property of the Fund are carried out and to ensure that the Units are correctly priced;
the creation and revision of the Scheme Particulars;
maintenance of a daily record of Units purchased or sold on behalf of the Trustee;
the creation of all records in respect of the Fund, available for inspection by the Trustee;
the preparation of reports and accounts in respect of every accounting period; and
the supervision and oversight of any appointed delegate.

The Manager of the Fund is required by the Scheme to:

prepare and submit to the Charity Commission a statement of accounts and annual report complying with the requirements of the Charities Act 2011 and the Charities (Accounts and Reports) Regulations 2008, as amended or replaced from time to time; and
prepare and submit to the Charity Commission a half- yearly report and accounts for the Fund made up to the date of the interim balance sheet.

The Manager is required to:

select suitable accounting policies that are appropriate for the Fund and apply them on a consistent basis;
comply with the disclosure requirements of the Statement of Recommended Practice relating to Authorised Funds issued by The Investment Association in May 2014 (and amended in June 2017);
follow generally accepted accounting principles and applicable accounting standards;
keep proper accounting records which enable the Manager to demonstrate that the Financial Statements as prepared comply with the above requirements;

53 Annual Report and Financial Statements

31 December 2020

COIF CHARITIES ETHICAL INVESTMENT FUND

STATEMENT OF BOARD, TRUSTEE, DEPOSITARY AND MANAGER RESPONSIBILITIES

make judgments and estimates that are reasonable and prudent; and
prepare the Financial Statements on the basis that the Fund will continue in operation unless it is inappropriate to presume this.

The Trustee has appointed the Manager to act as Registrar to the Fund.

Under AIFMD, the Manager has certain additional responsibilities including, ensuring compliance with the applicable provisions of AIFMD and that any delegation by the Manager is in accordance with AIFMD.

Should the Manager wish to retire, the Manager can only be discharged from its duties under the Scheme following the appointment of a replacement Manager who is eligible under AIFMD to act as Manager of the Fund.

54 Annual Report and Financial Statements

31 December 2020

COIF CHARITIES ETHICAL INVESTMENT FUND

AIFMD DISCLOSURES

Manager Remuneration

The Manager has no employees, but delegates the performance of its services to employees of its parent company, CCLA Investment Management Limited.

Recharges for these services of CCLA Investment Management Limited to the Manager are levied in respect of CCLA Investment Management Limited’s year ending on 31 March each year. The recharge for the year to 31 March 2020 was £28,700,000. A recharge of £24,000,000 was levied in the year to 31 March 2019.

The average number of full time equivalent staff of CCLA Investment Management Limited, including temporary staff, for the year ended 31 March 2020 was 137 (year ended 31 March 2019, 124).

During the year ended 31 December 2019 and the prior year, remuneration was paid to CCLA Investment Management Limited staff as shown below. Totals for staff whose actions have a material impact on the risk profile of the Fund (“identified staff”) are shown separately.

Year to 31 December 2020
Fixed Variable
remuneration remuneration	Total
£’000 £’000	£’000
Identified staff1,355 1,870	3,225
Other staff11,605 4,422	16,027
Total 12,960 6,292	19,252

Year	to 31 December 2019
Fixed	Variable
remuneration	remuneration	Total
£’000	£’000	£’000
Identified staff 1,212	3,394	4,606
Other staff 9,824	3,412	13,236
Total 11,036	6,806	17,842

Remuneration above is the total remuneration for CCLA Investment Management Limited; it is not possible to separate the element of that relating only to this fund. The components of remuneration are appropriately balanced and do not create a conflict of interest for the Fund.

Annual Report and Financial Statements

31 December 2020

COIF CHARITIES ETHICAL INVESTMENT FUND

(Charity Registration No. 1132054)

Board

N Morecroft, ASIP (Chairman) K Corrigan, FCCA J Hobart, MA G Newson, MRICS S Niven, CFA C Ong, MBA A Watson, CBE

Secretary

Non-Executive Directors of the Manager

R Horlick (Chair) J Jesty – appointed 24 April 2020 C Johnson G Newson A Roughead – appointed 24 April 2020 J Tattersall – retired 8 July 2020

Fund Manager J Bevan

J Fox

Manager and Alternative Investment Fund Manager (AIFM) CCLA Fund Managers Limited

Investment Manager and Registrar

CCLA Investment Management Limited Both CCLA Fund Managers Limited and CCLA Investment Management Limited are authorised and regulated by the Financial Conduct Authority Senator House, 85 Queen Victoria Street London EC4V 4ET Telephone: 0207 489 6000 Client Service: Freephone: 0800 022 3505 Email: clientservices@ccla.co.uk www.ccla.co.uk

Company Secretary J Fox

Chief Risk Officer R Plumridge – resigned 31 January 2020 JP Lim – appointed 1 May 2020

Head of Ethical and Responsible Investment J Corah

Third Party Advisors Custodian, Trustee and Depositary HSBC Bank plc 8 Canada Square Canary Wharf London E14 5HQ

Banker

Administrator

HSBC Bank plc 8 Canada Square Canary Wharf London E14 5HQ

Authorised and regulated by the Financial Conduct Authority

Executive Directors of the Manager

P Hugh Smith (Chief Executive Officer) J Bevan (Chief Investment Officer) E Sheldon (Chief Operating Officer) A Robinson, MBE (Director Market Development)

HSBC Bank plc 60 Queen Victoria Street London EC4N 4TR

Solicitor

Farrer & Co LLP 66 Lincoln’s Inn Fields London WC2A 3LH

Independent Auditor

PricewaterhouseCoopers LLP 7 More London Riverside London SE1 2RT

Annual Report and Financial Statements

31 December 2020

ABOUT CCLA

Founded in 1958, CCLA is one of the UK’s largest charity fund managers. Managing investments for charities, religious organisations

and the public sector is all that we do.

Our purpose is to help our clients maximise their impact on society by harnessing the power of investment markets. This requires us to provide a supportive and stable environment for our staff and deliver trusted, responsibly managed and strongly performing products and services to all organisations, irrespective of their size.

CCLA Fund Managers Limited

Senator House, 85 Queen Victoria Street, London EC4V 4ET T: 0800 022 3505 E: clientservices@ccla.co.uk

www.ccla.co.uk

CCLA is the trading name for CCLA Investment Management Limited (Registered in England and Wales No. 2183088) and CCLA Fund Managers Limited (Registered in England and Wales No. 8735639).

Both companies are authorised and regulated by the Financial Conduct Authority. Registered address: Senator House, 85 Queen Victoria Street, London EC4V 4ET.

Printed on 100% post consumer waste and is certified by the Forest Stewardship Council (FSC).

2020-12-31-accounts

CONTENTS

REPORT OF THE BOARD for the year ended 31 December 2020

Structure and management of the Fund

Investment objective

Benchmark

REPORT OF THE BOARD

for the year ended 31 December 2020

Investment policy

Distribution policy

Target investors

Review of investment activities and policies of the Fund

Responsible investment and stewardship

REPORT OF THE BOARD

Ethical investment

REPORT OF THE INVESTMENT MANAGER for the year ended 31 December 2020

Performance

Annualised total capital and income return

REPORT OF THE INVESTMENT MANAGER for the year ended 31 December 2020

Economic and Market Review

REPORT OF THE INVESTMENT MANAGER for the year ended 31 December 2020

Strategy

Outlook

REPORT OF THE INVESTMENT MANAGER for the year ended 31 December 2020

Risk warning

REPORT OF THE DEPOSITARY for the year ended 31 December 2020

INDEPENDENT AUDITORS’ REPORT to the Trustees of COIF Charities Ethical Investment Fund

Basis for opinion

Independence

Conclusions relating to going concern

INDEPENDENT AUDITORS’ REPORT to the Trustees of COIF Charities Ethical Investment Fund

Reporting on other information

Manager’s Report

Responsibilities for the financial statements and the audit

Responsibilities of the Manager for the financial statements

INDEPENDENT AUDITORS’ REPORT to the Trustees of COIF Charities Ethical Investment Fund

Auditors’ responsibilities for the audit of the financial statements

INDEPENDENT AUDITORS’ REPORT to the Trustees of COIF Charities Ethical Investment Fund

Other required reporting

Use of this report

SUMMARY RISK INDICATOR

COMPARATIVE TABLE

COMPARATIVE TABLE

OPERATING CHARGES ANALYSIS

for the year ended 31 December 2020

PORTFOLIO ANALYSIS

at 31 December 2020

Breakdown of Overseas Equities

Breakdown of Equities by Sector

by Geography

PORTFOLIO STATEMENT

at 31 December 2020

PORTFOLIO STATEMENT

at 31 December 2020

PORTFOLIO STATEMENT

at 31 December 2020

PORTFOLIO STATEMENT

at 31 December 2020

PORTFOLIO STATEMENT

at 31 December 2020

PORTFOLIO STATEMENT

at 31 December 2020

PORTFOLIO STATEMENT

at 31 December 2020

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 December 2020

1. Accounting policies

(a) Basis of preparation

(b) Revenue recognition

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 December 2020

(c) Stock dividends

(d) Special dividends, share buy-back or additional share issue

(e) Expenses

(f) Distributions

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2020

1. Accounting policies (continued)

(g) Basis of valuation

(h) Foreign exchange

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2020