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2020-10-31-accounts

Epworth Investment Funds for Charities ChariRepor t and accounts y number 1182845 Period to 31 October 2019 Report and accounts

For the year to 31 October 2020

Epworth UK Equity Fund for Charities

Epworth Global Equity Fund for Charities

Epworth Corporate Bond Fund for Charities

Epworth Sterling Sovereign Bond Fund for Charities

Epworth Multi-Asset Fund for Charities

Epworth Climate Stewardship Fund for Charities

Contents

1 Manager's Report

Epworth UK Equity Fund for Charities

8 Statement of total return

Epworth Global Equity Fund for Charities

Epworth Corporate Bond Fund for Charities

38 Statement of total return

64 Distribution tables

Epworth Multi-Asset Fund for Charities

Epworth Climate Stewardship Fund for Charities

79 Statement of total return

Epworth Investment Funds for Charities

Epworth Sterling Sovereign Bond Fund for Charities

53 Statement of total return

Statement of change in net assets attributable to unitholders

2

Manager's Report

Structure and Management of the Trust

Epworth Investment Funds for Charities is an authorised unit trust with six Sub-funds. For the purposes of the regulations the Trust is:

The Authorised Fund Manager, responsible for managing and administering the Trust’s affairs is Epworth Investment Management Limited (Epworth). Epworth is authorised and regulated by the Financial Conduct Authority (Ref: 175451).

Delegation and oversight of core activities

The Manager has determined to delegate some of its core responsibilities to HSBC Bank PLC. This includes the roles of Administrator, Delegate Registrar, Fund Accountant and Transfer Agent. Epworth retains the responsibility for the performance of these activities at all times and undertakes a vigorous monitoring programme to ensure that its delegate has satisfactorily discharged the Manager’s regulatory and other obligations in a satisfactory manner. The results of this monitoring are reported to the Board of Epworth.

Investment Objectives, Policies, Benchmarks and Risk & Reward Profile

Epworth UK Equity Fund

HSBC Bank PLC is the Trustee and Depositary of the Trust pursuant to an Agreement with Epworth dated 19 April 2019.

The only investors permitted to subscribe for units in the Trust are those investors who are a charity within the meaning of the Charities Act 2011 or paragraph 1(1) Schedule 6, Finance Act 2010 or are a Scottish recognised body or a Northern Ireland Charity.

The Epworth UK Equity Sub-fund seeks to provide a level of income and investment growth greater than that of the FTSE All Share (the “Index”) (after allowing for fees) by investing ethically in the shares of UK companies.

The Sub-fund invests predominantly in companies quoted on the London Stock Exchange which:

Launch of the Trust and its Sub-funds

The Trust was authorised by the FCA from 5 April 2019. It appears on the financial services register under product number 839709. The Trust is also registered with Charity Commission under registration number 1182845.

On 30 April 2019 the Epworth Sterling Sovereign Bond Fund, Epworth Corporate Bond Fund, Epworth UK Equity Fund and Epworth Global Equity Fund were launched. The Epworth Mult-Asset fund was launched on 11 June 2019 and the Epworth Climate Stewardship Fund on 28 May 2020.

The launch of the Epworth Climate Stewardship Fund was in response to the request of a number of unitholders in the Epworth UK Equity Fund for a similar Sub-fund that did not invest in the oil & gas industry. A number of faith groups in the United Kingdom have determined to avoid investment in this industry because of its contribution to the Climate Emergency. The Epworth Climate Stewardship Fund also avoids investment in companies that have a high greenhouse gas footprint and strives to invest in companies that are aiding the transition to a low carbon world.

The Advisory Committee

The Advisory Committee is independent from the Authorised Fund Manager and the Depositary. It has a consultative role and is tasked with representing the interests of Unitholders. It will make representations to the Authorised Fund Manager concerning the appointment of the Authorised Fund Manager’s and Depositary’s delegates, the investment objectives, investment policy and income distribution policy of each Sub-fund and the fees and charges associated with each Sub-fund.

If Unitholders have any concerns that they wish to raise they may write to the Chair of the Advisory Committee care of the Authorised Fund Manager.

The Sub-fund contains assets generally expected to follow the Index’s performance (core portfolio) and others expected to outperform the Index (conviction portfolio). Around a third of the Sub-fund will form the conviction portfolio and the rest will form the core portfolio.

The Sub-fund is actively managed but a substantial number of the investments in the Sub-fund are chosen by reference to the Index. The Sub-fund also invests differently from the Index in seeking to outperform it. The Sub-fund selects shares of companies that have a reasonable price based on the company’s valuation and offer opportunities for long-term growth.

The risk and reward profile of the Sub-fund is shown below:

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Lower rewards Higher rewards
Lower risk Higher risk
1 2 3 4 5 6 7
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This Sub-fund is ranked at 4 because funds of this type have experienced medium rises and falls in the past. The above figure applies to the following unit classes: Income, Accumulation and CFB Income Units.

1

Manager's Report

This indicator does not take account of the following risks:

Epworth Global Equity Fund

The Epworth Global Equity Sub-fund seeks to provide a level of income and investment growth greater than that of the FTSE All World (£) (the “Index”) (after allowing for fees) by investing ethically in the shares of global companies (including indirectly through other funds). The Subfund invests predominantly in companies quoted on the world’s major stock exchanges and which are not excluded from selection by ethical screening based on Christian principles.

The Sub-fund contains assets generally expected to follow the Index’s performance (core portfolio) and others expected to outperform the Index (conviction portfolio). Around a third of the Sub-fund will form the conviction portfolio and the rest will form the core portfolio.

The Sub-fund is, therefore, actively managed but a substantial number of the investments in the Sub-fund are chosen by reference to the Index. The Sub-fund invests differently from the Index in seeking to outperform it. However, the core portfolio will generally follow the countries/regions in the Index.

The Sub-fund selects shares of companies that have a reasonable price based on the company’s valuation and offer opportunities for long-term growth.

The risk and reward profile of the Sub-fund is shown below:

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Lower rewards Higher rewards
Lower risk Higher risk
1 2 3 4 5 6 7
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This Sub-fund is ranked at 4 because funds of this type have experienced medium rises and falls in the past. The above figure applies to the following unit classes: Income, Accumulation and CFB Income Units.

This indicator does not take account of the following risks:

Epworth Sterling Sovereign Bond Fund

The Epworth Sterling Sovereign Bond Sub-fund seeks to provide income and investment growth exceeding that of the iBoxx Gilt Index (the “Index”) (after allowing for fees) by investing in sovereign bonds that are issued in Pounds Sterling. The Sub-fund invests at least 30% of its portfolio in bonds with fixed coupons issued by the UK Governments (Gilts) but may also invest, or have holdings of:

The Sub-fund is actively managed but some of the investments in the Sub-fund are chosen by reference to the Index. Investments outside the Index are also permitted and the proportions of investments in the portfolio will differ from the Index.

The average duration of the portfolio (the average time until maturity of the bonds) is managed to benefit from, or protect from, anticipated changes to interest rates.

The risk and reward profile of the Sub-fund is shown below:

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Lower rewards Higher rewards
Lower risk Higher risk
1 2 3 4 5 6 7
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This Sub-fund is ranked at 4 because funds of this type have experienced medium rises and falls in the past. The above figure applies to the following unit classes: Income, Accumulation and CFB Income Units.

This indicator does not take account of the following risks:

Epworth Corporate Bond Fund

The Epworth Corporate Bond Sub-fund seeks to provide income and investment growth exceeding that of iBoxx Corporate Bond Index (the “Index”) (after allowing for fees) by investing in bonds that are issued by corporations in Pounds Sterling.

The Sub-fund invests at least 90% of its portfolio in bonds issued by corporations and which are not excluded from selection by ethical screening based on Christian principles but may also invest, or have holdings of, cash (and near cash). The Sub-fund can hold corporate bonds of any credit rating and in any geography or sector, as long as they are issued in Pounds Sterling. We include bonds issued or guaranteed by supranational entities, sub-sovereign entities and their agencies, within our definition of corporate bonds.

2

Manager's Report

The Sub-fund is actively managed. The Manager’s expectations as to the future behaviour of the credit markets will determine the Subfund’s allocation to higher or lower credit quality bonds. The average duration of the portfolio (the average time until maturity of the bonds) is managed to benefit from, or protect from, anticipated changes to interest rates.

The risk and reward profile of the Sub-fund is shown below:

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Lower rewards Higher rewards
Lower risk Higher risk
1 2 3 4 5 6 7
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This Sub-fund is ranked at 4 because funds of this type have experienced medium rises and falls in the past. The above figure applies to the following unit classes: Income, Accumulation and CFB Income Units.

This indicator does not take account of the following risks:

Epworth Multi-Asset Fund

The Epworth Multi-Asset Sub-fund seeks income and capital growth by direct or indirect investing in a balanced portfolio of ethically screened global equities, sterling bonds and other asset classes. The Sub-fund invests in number of asset classes using other Sub-funds managed by the Authorised Fund Manager, funds managed by other managers or by directly investing into equities and fixed interest securities. The Subfund may also invest in, or hold, cash or near cash. The Sub-fund may, at times, be 100% invested in other funds.

Direct investments may be excluded from selection by ethical screening based on Christian principles. Indirect investments may be used to give exposure to non-sterling bonds, commercial property, infrastructure, private equity and absolute return strategies.

The risk and reward profile of the Sub-fund is shown below:

following unit classes: Income, Accumulation and CFB Income Units.

This indicator does not take account of the following risks:

Epworth Climate Stewardship Fund

The Epworth Climate Stewardship Sub-fund seeks income and investment growth over a minimum period of 5 years by investing ethically using Christian principles in the shares of UK listed/quoted companies. The Sub-fund aims to have a weighted average carbon intensity substantially lower (at least 15% lower, but better if possible) than that of the FTSE All Share Index.

The Sub-fund invests at least 70% in UK companies listed/quoted on the London Stock Exchange which are incorporated or headquartered in the United Kingdom. The Sub-fund may also invest in Collective Investment Schemes (including those managed by Epworth), or hold cash or near cash.

The Sub-fund uses a climate stewardship approach which:

The Sub-fund may also invest in the shares of companies that the Investment Manager believes will contribute to a transition to lower carbon emissions in the UK or globally.

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Lower rewards Higher rewards
Lower risk Higher risk
1 2 3 4 5 6 7
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This Sub-fund is ranked at 4 because funds of this type have experienced medium rises and falls in the past. The above figure applies to the

3

Manager's Report

The risk and reward profile of the Sub-fund is shown below:

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Lower rewards Higher rewards
Lower risk Higher risk
1 2 3 4 5 6 7
----- End of picture text -----

This Sub-fund is ranked at 4 because funds of this type have experienced medium rises and falls in the past. The above figure applies to the following unit classes: Income B, Accumulation and CFB Income Units.

This indicator does not take account of the following risks:

Prospectus

The prospectus is reviewed on an ongoing basis by the Manager.

The prospectus was last re-issued on 22 May 2020 to reflect the new Epworth Climate Stewardship Fund.

Ethical policy

The Sub-funds will not invest in securities that are disallowed by the Christian ethical policy of the Authorised Fund Manager. Epworth is a wholly owned subsidiary of the Central Finance Board of the Methodist Church (Central Finance Board). The ethical policy is determined by a joint committee on the ethics of investment between the Central Finance Board and Methodist Conference. This Committee approves policies and positioning papers on a number of issues including the climate emergency, modern slavery, the use of plastics, tax justice, spending on armaments and the use of alcohol and tobacco. These policies can be found on the Authorised Fund Manager’s website at www.epworthinvestment.co.uk. The policies lead to the securities of a number of companies being excluded from the investable universe of the Sub-funds. They also lead to the identification of issues for engagement by the Authorised Fund Manager to try and bring about improvements in corporate behaviour.

Controls and Risk Management

In addition to the oversight of its delegate, the Authorised Fund Manager maintains ongoing checks of the investments of each Sub-fund against the Trust’s investment objectives, policies, and investment and borrowing powers. This includes an ongoing assessment of the liquidity of the securities held by each Sub-fund in alternative stressed scenarios. During the year the holding in the Property Income Trust for Charities (PITCH) in the Epworth Multi-Asset Fund was suspended by the manager of that Fund. This was due to the uncertainty of property prices in the Fund during the COVID-19 pandemic. While the Fund was suspended, the Fair Value Pricing Committee convened to agree a valuation price of PITCH equitable to both existing and new unitholders. The Manager is satisfied that the Sub-funds are managed in accordance with the Prospectus and that the systems of internal controls are sufficient to have identified any risk events that may have occurred during the period. The Manager maintains a constant review of these internal controls and will commit additional resources where it deems necessary for the continued discharge of its responsibilities for the ongoing investment, operational and regulatory oversight of the Sub-funds.

The Manager is pleased to report that there was no disruption to business during the COVID-19 pandemic and that unit creations, redemptions and distributions were uninterrupted during this time. Epworth would like to acknowledge the hard work and attentive support from its staff and those of the Depositary and delegate during this time.

Investment performance

The performance of the Sub-funds since launch is as follows:

Fund Launch date Fund Return
(launch to
31.10.20)		 Benchmark
Return
(launch to
31.10.20)
Epworth Sterling
Sovereign Bond
Fund for Charities		 30/04/19 7.2% 8.6%
Epworth Corporate
Bond Fund for
Charities		 30/04/19 5.6% 7.1%
Epworth UK Equity
Fund for Charities		 30/04/19 -9.8% -12.6%
Epworth Global
Equity Fund for
Charities		 30/04/19 8.2% 6.3%
Epworth Multi-
Asset Fund for
Charities		 01/08/19 -3.4% n/a

No data is available for the Epworth Climate Stewardship Fund for Charities as this has a trading record of under one year. All performance data assumes that income has been re-invested, relates to the Accumulation and Income units (not CFB units) and is on a total return basis after all fees and charges.

Distribution policy

Each Sub-fund accrues income from its Scheme Property on every business day. All charges are allocated to the income of the appropriate Sub-fund. Net income is allocated quarterly by 31 December, 31 March, 30 June and 30 September of each year. All Sub-funds offer Income, Accumulation and CFB Income units*.

4

Investment Manager's Report As at 24 December 2020

Overview

Moving into 2020 the outlook for global markets appeared relatively benign. The world was heading into election year in the USA, but the UK had returned a sizeable Conservative majority that seemed to remove much of the uncertainty surrounding BREXIT. Interest rates looked set to gradually increase with economic growth stable and equities looked good value, particularly in comparison with bond yields that were reflecting a decades long bull run.

Then on 5 January 2020 the World Health Organisation published news of an outbreak of a new form of Coronavirus in China. Initially the markets reflected on the relatively low mortality rate from this latest outbreak in comparison with other forms of coronavirus such as SARS and MERS. However, there was an initial failure to recognise the highly infectious nature of this new pathogen. By March, COVID-19 had become a global pandemic and many Governments had taken drastic preventative measures to restrict the movement of people in a bid to slowdown the spread of the disease. Investors fled from equity markets into safe havens such as Government bonds and gold, leading to some of the most dramatic bear markets in stock market history. Since those declines markets have been beholden to the contrasting news of COVID-19 infection rates, hospitalisations, and deaths, balanced with hopes of a vaccine and a cure.

Global economy

The shock to the global economy caused by the outbreak of the global pandemic is without precedent. In the US, the jobless rate hit 14.7% in April, 4.7% higher than the level it struck during the 2009 global financial crises. The US Government rapidly approved a $2.2 trillion aid package, the largest US stimulus ever seen. China and Europe announced similar programmes and Central Banks around the World cut key interest rates, The US Federal Reserve has signalled that it expects interest rates to remain at historically low levels util at least the end of 2023. The US unemployment rate remains high and the ability of the new President and Congress to agree further stimulus packages will be critical to the future of small and medium sized businesses in the USA.

After its initial dramatic falls on the Pandemic, the Eurozone has seen some steady improvement over the summer; although there are signs that the service sector is lagging the more robust manufacturing sector. The main ray of light has been China which is emerging from the Pandemic in better shape than its western counterparts.

The price of gold continued to reach new all-time highs, fuelled by US dollar weakness and a flight to safety.

UK economy

The UK economy rebounded sharply from a fall in GDP of 19.8% in the 3 months to June. Provisional expectations for GDP in the third quarter show a record rebound of 15.5%. The services sector, accounting for 80% of GDP, benefited from “staycation” spending due to overseas travel restrictions as well as the “Eat out to help out” scheme. Construction also recovered, supported by a stamp duty holiday. However, the benefits from these short-term measures subsided entering September as the Government tightened its lockdown rules in the face of a resurgence of the Pandemic. The unemployment rate, running at 4.8% for the three months to September, excluded three million people, 9% of the working population, still on furlough.

The UK government’s Internal Market Bill increased investor concerns about a no deal Brexit, with the EU threatening legal action should the UK renege on the Withdrawal Agreement. In addition, influential politicians in the US have suggested that a future UK-US trade deal would be imperilled if the UK were to act in a way that undermines the Good Friday Agreement.

Fixed Interest Markets

The initial reaction in bond markets to the COVID-19 Pandemic saw Government bond yields fall sharply in late February and March as investors switched into them from risk assets and central banks announced new QE programmes. With the US Federal Reserve in no hurry to increase interest rates, the yield on the 10-year Treasury finished the reporting year around 0.65%, having dropped to an all-time low just above 0.5%. Bond yields in other ‘safe haven’ markets remain at very low levels, with French and German yields negative and Japanese yields hovering around zero.

Following COVID-19 related expenditure, total UK Government debt exceeded 100% of GDP for the first time since the early 1960s. Despite the huge expansion in issuance, the UK ten-year gilt yield fell to an all-time low of just under 0.08% in August. There has been a modest increase in Gilt yields since, following comments from the Bank of England that it was assessing whether taking interest rates below zero would be an effective tool in stimulating the economy. The back up in yields was influenced by further speculation that, with such extremes of fiscal and monetary stimulus, higher inflation could be on the way.

Equities

Equities started 2020 strongly, with global equities setting new highs at the end of February, 5% above the end of 2019 level. Then came the pandemic led bear market. The US market has since recovered strongly with its high exposure to technology companies benefiting from the new “virtual” reality. In contrast the UK market’s recovery has been insipid, largely due to its focus on the oil and gas and banking sectors; the former hit by a collapse in the oil price and banks being hurt by regulatory pressure to cut or cancel dividend pay outs.

5

Outlook

Overview

Economic growth was long expected to slow in the fourth quarter after the rebound from the lows earlier in the year, but the outlook has deteriorated. Increases in COVID-19 infections have prompted governments in Europe and elsewhere to increase social restrictions and curtail business activity. While we wait to find out if the current restrictions are reducing infection rates effectively, economic activity is being dampened.

Central bank action continues to influence asset prices significantly. Different parts of the economy have been affected differently by the pandemic and this has been reflected in prices. Where the virus appears to be under control the rebound in growth has been encouraging but government fiscal stimulus continues to be essential.

Global economy

With the pandemic apparently under control in many developed countries during the Northern hemisphere summer, economic activity bounced from lows seen in the second quarter and optimism that the worst was over increased. The easing of restrictions in the summer helped economic growth but, together with education activity restarting, has led to infection rates rising once more and optimism is fading. The IMF notes that worldwide there were over 33 million confirmed infections and over a million deaths from COVID-19 by late September.

Governments were slow to respond to the pandemic at the beginning of the year as they did not fully appreciate its virulence. Today, governments also appear to be playing catch up, reluctant to reintroduce harsh lockdown measures and social restrictions. This is because there may be less social consensus around the need to comply with restrictions and because a second round of national lockdowns could permanently damage or destroy businesses only just beginning to recover. As the level of infections has increased, so have the social restrictions imposed by governments and we are beginning to see new schemes to support workers and businesses.

Growth forecasts are subject to revision almost at publication. The IMF forecasts global GDP will fall 4.4% this year, which is an improvement on its June prediction. China is the only economy forecast to grow in 2020. Elsewhere there are wide divergences in forecasts, with US GDP expected to fall just over 4%, the Eurozone by 8% and the UK by 10%. The US has seen strong consumer spending, perhaps helped by direct payments to people by the government, but incomes are under pressure and unemployment benefits have fallen.

Financial markets

It remains to be seen how the change in the Federal Reserve’s monetary policy stance, favouring higher inflation for longer, will change the outlook for interest rates and prices. In the near term, little appears to have changed. Central bankers are becoming more outspoken in their calls for governments to use more fiscal measures to offset the drop in demand due to the pandemic, rather than rely on monetary policy. The Bank of England is working to understand how a negative central bank rate would affect the financial system. Money market rates are likely to remain very low for some time.

In the short term, government bonds seem likely to continue to trade at low yields. Yields might increase on inflation fears, but such moves are unlikely to be sustained unless demand is increasing substantially. Demographic changes, with declines in the proportions of populations of working age, favour real higher wages and prices, but the world is currently facing large scale under and unemployment. In the near term, central banks might do more to suppress longer term yields. Corporate bonds remain well-supported by central banks, but the impact of the pandemic is not uniform.

Equity market investors have been awaiting the outcome of the US election while digesting news of further lockdowns. The win by Biden has been taken positively, particularly as it appears he is unlikely to have control of the Senate, keeping a lid on the ambitious plans of the left of the Democratic party. So far, company Q3 earnings announcements have been ahead of expectations but Q4 is a different prospect. As with GDP forecasts, the outlook for earnings is subject to even greater uncertainty than usual. Developed market earnings are expected to be over 20% down this year, before rebounding 30% in 2021. For the UK, the figures are 39% down and 39% up respectively. Some dividends have been restored and even cuts reversed.

Equity valuations in some markets appear to be looking through to a full recovery from the pandemic and hence appear expensive; however, there have been big differences in performance between sectors and markets. Some changes initiated by the pandemic, such as use of certain technologies, may be permanent. While further volatility should be expected, asset allocation should favour the growth exposure provided by equities.

Initial PMI Markit survey data for October showed Eurozone manufacturing growth increasing but the overall composite picture negative due to a drop in service sector activity. The picture was similar for the UK, and in both bases is linked to increased social restrictions. Japan’s economy has benefited from a substantial fiscal boost and new support is expected as stimulus measures expire. The global momentum seen in Q2 and Q3 was forecast to give way to slower growth rates in Q4, but now it is possible we will see a worse outcome. Inflation remains subdued.

Global GDP is expected to rebound in 2021 by 5.2%. Beyond that, the world is expected to take some time before the level of output is at pre-pandemic levels. It should be noted that a ‘second wave’ was expected, that treatment for the virus has improved considerably, and that the world is closer to developing effective vaccines. As we hear of successful vaccines and their roll out to vulnerable populations in early 2021, economies will begin to gradually re-set themselves. The global lock downs saw huge structural changes in the way that we work; the sustainability of these could have profound implications for the future mobility and flexibility of the work force.

6

Ethics Report

Background

Epworth works very closely with the Central Finance Board of the Methodist Church (CFB) on the development of its ethical policies. The CFB forms a committee with Methodist Conference, the Joint Advisory Committee on the Ethics of Investment (JACEI,) that advises it on the ethics of investment. JACEI identifies priorities for engagement with companies in which Epworth invests and identifies companies that should be excluded from the investable universe on ethical grounds. The Committee has recently published policies on Farm Animal Welfare and Tax Justice.

Principles for Responsible Investment

The Principles for Responsible Investment (PRI) runs an annual survey for investment firms and asset owners to outline their responsible investment activities.

Epworth received an A+ score from PRI for its approach to Strategy and Governance. Epworth also received an A or higher across the Listed Equity and Bond modules.

Fair Tax Mark

Epworth has become the first fund manager in the UK to be accredited by the Fair Tax Mark. The Fair Tax Mark certification scheme was launched in February 2014 and seeks to encourage and recognise organisations that pay the right amount of corporation tax at the right time and in the right place. Epworth promotes the Fair Tax Mark as it engages with companies; and at least one company has applied for this recognition as a result of Epworth’s engagement.

Climate emergency

The climate emergency has been the main ethical focus of the Manager over the last year. A major report has been published examining the alignment of the oil & gas sector with the targets for global warming set by the Paris Accord. This report led to the exclusion of a number of oil & gas companies from the Manager’ s investable universe, including BP. Further work is being undertaken at the request of Methodist Conference on the five Oil & Gas stocks that currently remain in the investable universe. The Manager launched the Climate Stewardship Sub fund during the year to provide a vehicle for investors seeking the total exclusion of the oil & gas sector and other companies that emit relatively high levels of greenhouse gases.

Banks

Epworth co-filed a resolution at Barclays’s AGM, as part of a coalition co-ordinated by ShareAction. This attracted the support of 24% of shareholders. The board proposed an alternative resolution that was passed with a net-zero ambition and a commitment to align its activities with the Paris Accord. However, the resolution did not have a timeline to phase out lending to fossil fuel companies.

Healthy markets

Epworth participates in the Healthy Markets Initiative coordinated by ShareAction. As part of this participation Epworth has engaged with Tesco and Ocado on the topic of childhood obesity, requesting further information about their promotions, strategy and targets. Both companies responded to this engagement, outlining the steps they are taking to respond to the issue. Tesco noted its reformulation strategy of own brand products, and its commitment to increasing positive nutrients such as fibre, fruit, and vegetables, alongside reducing nutrients of concern e.g. fat, salt, and sugar.

Modern slavery

Epworth works with the Find It, Fix It, Prevent It programme to tackle Modern Slavery. This engagement asks companies “Have you found modern slavery in your operations or supply chain this year?”. Epworth has led the engagement with two companies in the hospitality sector: Compass Group and InterContinental Hotels Group.

Coronavirus & mental health

According to the NHS, one in four people in the world will be affected by mental or neurological disorders at some point in their lives. The impact of social isolation, uncertain employment, or bereavement due to coronavirus, could have mental health consequences for many. Epworth co-signed a letter to FTSE 100 constituent companies encouraging them to protect the mental health of their workforces during this extraordinary time. This letter called for an action plan specific to mental health during COVID-19 to be introduced at each workplace.

Corporate governance and voting

In 2016, the Hampton-Alexander review set recommendations for FTSE 350 companies to improve the representation of women at the board level and in senior management. It set a minimum 33% target to be reached by the end of 2020. In February 2020, FTSE 100 companies in aggregate reached this goal. However, the FTSE 250 had not. Epworth continues to vote on gender diversity by voting against the re-election of the Chair of the Nominations committee at FTSE 350 companies where the Board composition is not at least 33% women. Epworth’s voting policy includes voting against the re-election of Board Chairs and Executive Directors at AGMs in a number of circumstances. This policy was suspended during the Pandemic as the Manager recognised that for many companies their priority is ensuring their survival and the well being of their employees. However, Epworth will have greater expectations of companies that received Government support during this time, particularly in relation to paying a fair rate of tax, the Living wage and avoiding excessive executive pay.

Epworth and the CFB have been long standing customers and shareholders in HSBC. HSBC is the Depository of this Fund and they also supply delegated accounting and shareholder services. The CFB and Methodist Council have written to the Chair of HSBC raising their concerns with the Bank’ s support for the new security laws in Hong Kong.

7

Epworth UK Equity Fund for Charities

Statement of total return

Statement of total return
For the year ended 31 October 2020
31.10.20 31.10.19*
Note £'000s £'000s
Income: net capital(losses)/gains 2 (43,417) 1,516
Income: revenue 3 4,770 3,562
Expenses 4 (526) (333)
Interest payable and similar charges (1) -
Taxation 5 (20) (7)
Net revenue after taxation 4,223 3,222
Total (defcit)/return before distributions (39,194) 4,738
Distributions 6 (4,212) (3,217)
Change in net assets attributable to unitholders from investment activities (43,406) 1,521

Statement of change in net assets attributable to unitholders

For the year ended 31 October 2020
31.10.20 31.10.19*
£'000s £'000s
Opening net assets attributable to unitholders 186,715 -
Amounts receivable on issue of units 15,099 12,717
Amounts receivable on in-specie transfer** 237,680 194,968
Amountspayable on cancellation of units (42,475) (22,491)
397,019 185,194
Dilution adjustment 124 -
Change in net assets attributable to unitholders from investment activities (43,406) 1,521
Retained distributions on accumulation units 2 -
Closingnet assets attributable to unitholders 353,739 186,715

** Represents the value of units created by in-specie transfer of assets during the period.

Balance sheet

Balance sheet
As at 31 October 2020
31.10.20 31.10.19
Note £'000s £'000s
Assets
Investments 350,080 185,089
Current assets:
Debtors 7 6,668 440
Cash and bank balances 8 5,196 3,451
Total assets 361,944 188,980
Liabilities
Creditors:
Distributions payable (2,436) (2,096)
Other creditors 9 (5,769) (169)
Total liabilities (8,205) (2,265)
Net assets attributable to unitholders 353,739 186,715
Balance sheet approved and signed on behalf of the Manager by:
David Palmer, Director Marina Phillips, Secretary
24 December 2020 24 December 2020

8

Epworth UK Equity Fund for Charities

Comparative table

Comparative table
Income units
31.10.20 31.10.19^
Change in net assetsper unit penceper unit penceper unit
Openingnet asset valueper unit 160.88 161.79
Return before operating charges* (23.74) 2.46
Operatingcharges (1.00) (0.55)
Return after operatingcharges* (24.74) 1.91
Distributions on income units (3.23) (2.82)
Closingnet asset valueper unit 132.91 160.88
* after direct transaction costs of (pence per unit): 0.04 0.01
Performance
Return after charges (15.38)% 1.18%
Other information
Closing net asset value (£'000s) 41,681 77,372
Closing number of units 31,360,693 48,092,180
Operating charges 0.66% 0.64%
Direct transaction costs 0.02% 0.01%
Prices(penceper unit)+
Highest unit price (ofer) 173.05 168.14
Lowest unitprice(bid) 114.73 155.67

The return after charges has been calculated in accordance with the Statement of Recommended Practice for UK Authorised Funds' prescribed calculation methodology. This is for financial statement reporting purposes only and differs from the Sub-fund’s performance disclosed in the Report of the Investment Manager.

9

Epworth UK Equity Fund for Charities

Comparative table

Comparative table
Accumulation units
31.10.20 31.10.19^
Change in net assetsper unit penceper unit penceper unit
Openingnet asset valueper unit 162.56 164.97
Return before operating charges* (24.17) (2.14)
Operatingcharges (0.99) (0.27)
Return after operatingcharges* (25.16) (2.41)
Distributions on accumulation units (3.29) (1.68)
Retained distributions on accumulation units 3.29 1.68
Closingnet asset valueper unit 137.40 162.56
* after direct transaction costs of (pence per unit): 0.04 0.01
Performance
Return after charges (15.48)% (1.46)%
Other information
Closing net asset value (£'000s) 92 81
Closing number of units 67,228 50,114
Operating charges 0.66% 0.64%
Direct transaction costs 0.02% 0.01%
Prices(penceper unit)+
Highest unit price (ofer) 174.85 165.39
Lowest unitprice(bid) 116.44 155.67

The return after charges has been calculated in accordance with the Statement of Recommended Practice for UK Authorised Funds' prescribed calculation methodology. This is for financial statement reporting purposes only and differs from the Sub-fund’s performance disclosed in the Report of the Investment Manager.

10

Epworth UK Equity Fund for Charities

Comparative table

Comparative table
CFB Income units
31.10.20 31.10.19^
Change in net assetsper unit penceper unit penceper unit
Openingnet asset valueper unit 161.13 158.28
Return before operating charges* (23.84) 5.97
Operatingcharges (0.16) (0.11)
Return after operatingcharges* (24.00) 5.86
Distributions on income units (4.05) (3.01)
Closingnet asset valueper unit 133.08 161.13
* after direct transaction costs of (pence per unit): 0.04 0.01
Performance
Return after charges (14.89)% 3.70%
Other information
Closing net asset value (£'000s) 311,966 109,262
Closing number of units 234,414,752 67,811,191
Operating charges 0.11% 0.09%
Direct transaction costs 0.02% 0.01%
Prices(penceper unit)+
Highest unit price (ofer) 173.52 168.35
Lowest unitprice(bid) 114.99 155.94

The return after charges has been calculated in accordance with the Statement of Recommended Practice for UK Authorised Funds' prescribed calculation methodology. This is for financial statement reporting purposes only and differs from the Sub-fund’s performance disclosed in the Report of the Investment Manager.

11

Epworth UK Equity Fund for Charities

Portfolio of investments

Portfolio of investments
As at 31 October 2020
Market
Total net
value
assets
Holding
£'000s
%
UK Equities (31.10.19 - 91.08%)
90.29
Basic Materials
7.84
Anglo American
290,239
5,257
1.49
BHP
489,407
7,293
2.06
Rio Tinto
255,195
11,118
3.14
Victrex
221,268
4,080
1.15
Consumer Goods
10.53
Berkeley
103,280
4,190
1.18
Cranswick
137,707
4,429
1.25
Hilton Food Group
414,230
4,797
1.36
Persimmon
76,120
1,778
0.50
Reckitt Benckiser
153,353
10,425
2.95
Unilever
264,627
11,654
3.29
Consumer Services
8.88
Compass
421,822
4,450
1.26
Intercontinental Hotels Group
41,500
1,625
0.46
Next Fifteen Communications
1,113,759
4,967
1.40
Ocado
120,080
2,732
0.77
RELX
657,830
10,045
2.84
Ten Entertainment
2,273,153
3,001
0.85
Tesco
2,234,169
4,587
1.30
Financials
26.55
3i
225,700
2,169
0.61
Aviva
934,785
2,407
0.68
Barclays
4,043,710
4,309
1.22
Brooks Macdonald Group
316,389
4,841
1.37
Derwent London REIT
177,720
4,724
1.34
HgCapital Trust
1,716,415
5,072
1.43
HSBC
4,805,649
15,594
4.41
Impax Environmental Markets
1,265,905
4,760
1.35
Legal & General
1,423,631
2,631
0.74
Lloyds Banking Group
16,509,160
4,627
1.31
London Stock Exchange
74,496
6,167
1.74
North Atlantic Smaller Companies
166,139
4,718
1.33
PRS REIT
5,625,258
3,994
1.13
Prudential Financial
608,662
5,738
1.62
Scottish Mortgage Investment Trust
344,250
3,422
0.97
Segro REIT
271,840
2,452
0.69
SIGMA Technology
4,303,086
4,948
1.40
St Modwen Properties
1,569,145
5,194
1.47
Standard Chartered
603,282
2,122
0.60
Watkin Jones
3,006,176
4,016
1.14
Market
Total net
value
assets
Holding
£'000s
%
Healthcare
12.52
AstraZeneca
278,185
21,604
6.11
Eco Animal Health Group
1,818,820
4,183
1.18
Glaxosmithkline
1,213,213
15,672
4.43
Smith & Nephew
210,483
2,813
0.80
Industrials
11.00
Ashtead Group
257,550
7,209
2.04
Diploma
215,619
4,800
1.36
Halma
90,800
2,150
0.61
Howden Joinery
752,367
4,791
1.35
Intertek
39,370
2,194
0.62
Keywords Studios
221,883
4,695
1.33
M J Gleeson
848,163
4,919
1.39
Rentokil Initial
438,730
2,308
0.65
Rotork
1,376,272
3,864
1.09
Spirax-Sarco Engineering
17,690
1,994
0.56
Oil & Gas
4.91
Royal Dutch Shell 'B'
1,870,554
17,370
4.91
Technology
2.57
FDM Group
515,975
5,155
1.46
Softcat
348,092
3,916
1.11
Telecommunications
2.45
BT Group
2,023,216
2,050
0.58
Vodafone Group
6,433,827
6,627
1.87
Utilities
3.04
National Grid
840,910
7,728
2.19
SSE
239,972
3,012
0.85
Channel Islands (31.10.19 - 3.69%)
4.69
Consumer Services
0.48
WPP
272,893
1,683
0.48
Financials
1.36
3i Infrastructure
1,635,437
4,824
1.36
Industrials
2.85
Experian
211,123
5,947
1.68
Ferguson
53,443
4,127
1.17

12

Epworth UK Equity Fund for Charities

Portfolio of investments

As at 31 October 2020
Market Total net
value assets
Holding £'000s %
France (31.10.19 - 0.86%)
Ireland (31.10.19 - 2.40%) 2.20
Financials 0.79
UBS (Irl) ETF 210,000 2,777 0.79
Industrials 1.41
CRH 183,902 5,002 1.41
Netherlands (31.10.19 - 0.00%) 0.67
Consumer Goods 0.67
Just Eat Takeaway.com 27,770 2,379 0.67
Norway (31.10.19 - 1.10%)
Singapore (31.10.19 - 0.00%) 1.12
Industrials 1.12
XP Power 99,099 3,954 1.12
Portfolio of investments 350,080 98.97
Net other assets 3,659 1.03
Net assets 353,739 100.00

Unless otherwise stated, all investments are approved securities being either officially listed in a member state or traded on or under the rules of an eligible securities market.

13

Epworth UK Equity Fund for Charities

Summary of material portfolio changes

Summary of material portfolio changes
For the year ended 31 October 2020
Cost
£'000s
Purchases
AstraZeneca
15,812
Royal Dutch Shell 'B'
15,547
Glaxosmithkline
12,328
HSBC
11,088
Unilever
9,040
Rio Tinto
8,098
Reckitt Benckiser
7,876
RELX
7,403
UBS (Irl) ETF
5,714
National Grid
5,502
98,408
Otherpurchases
186,072
Totalpurchases
284,480
Proceeds
£'000s
Sales
BP
6,011
AstraZeneca
4,485
iShares Core FTSE 100 UCITS ETF
4,080
Craneware
3,862
Glaxosmithkline
2,996
UBS (Irl) ETF
2,673
SPDR MSCI World Energy UCITS ETF
2,208
Diploma
2,201
DS Smith
2,015
FDM Group
1,972
32,503
Other sales
43,578
Total sales
76,081

14

Epworth UK Equity Fund for Charities

Notes to the financial statements

1. Accounting policies

(a) Basis of accounting

The financial statements have been prepared under the historical cost basis, as modified by the revaluation of investments and in compliance with Financial Reporting Standard 102 (FRS102) and in accordance with the Statement of Recommended Practice (SORP) for financial statements of Authorised Funds issued by The Investment Association in May 2014 (and amended in June 2017), the Charities Act 2011 and the relevant scheme of Charity Commissioners.

Unless otherwise stated all accounting policies are consistent with those of the prior year.

Judgements in applying accounting policies and key sources of estimation uncertainty

The Manager does not consider that there were any significant areas of estimation uncertainty or application of critical judgements.

(h) Foreign exchange

Transactions in foreign currencies during the year are translated into sterling (the functional currency of the Sub-fund), at the rates of exchange ruling on the transaction date. Amounts held in foreign currencies have been translated at the rate of exchange ruling at close of business, 30 October 2020, the last valuation point in the accounting year.

(i) Apportionment to multiple unit classes

With the exception of the Manager's periodic charge, the allocation of revenue and expenses to each unit class is based upon the proportion of the Sub-fund's assets attributable to each unit class on the day the revenue is earned or the expense is suffered. The Manager's periodic charge is specific to each unit class. Consequently, the revenue available to distribute for each unit class will differ.

2. Net (losses)/gains on investments

The net capital (losses)/gains during the year/period comprise:

(b) Basis of valuation

The quoted investments of the Sub-fund have been valued at bid dealing prices as at close of business on 30 October 2020, the last valuation point in the accounting year, in accordance with the Trust Deed.

(c) Recognition of income

Dividends on ordinary stocks and distributions are credited to revenue when the securities are quoted ex-dividend. Interest on bank deposits are accounted for on a receipts basis.

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.

(d) Stock dividends

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

(e) Special dividends, share buy-back or additional share

issue

The underlying circumstances behind a special dividend, share buyback or additional share issue are reviewed on a case by case basis in determining whether the amount is revenue or capital in nature. Amounts recognised as revenue form part of the distribution.

(f) Expenses

Expenses are accounted for on an accruals basis. Expenses of the Subfund are charged against revenue, except for the costs associated with the purchase and sale of investments, which are charged to capital.

(g) Distribution policy

Revenue produced by the Sub-fund's investments accumulates during each accounting period. If, at the end of each accounting period, revenue exceeds expenses, the net revenue of the Sub-fund is available to be distributed/accumulated to unitholders.

30.04.19 to
31.10.20
31.10.19
£'000s
£'000s
Unrealised (losses)/gains
on non-derivative securities (35,544)
2,052
Realised losses on non-derivative securities (7,863)
(520)
Currency losses (6)
(15)
Transaction charges (4) (1)
Net(losses)/gains on investments (43,417) 1,516

3. Revenue

3.
Revenue
30.04.19 to
31.10.20
31.10.19
£'000s
£'000s
UK dividends 4,438
3,367
Overseas dividends 273
184
Property revenue from REITs 32
4
Bank interest 27 7
Total revenue 4,770
3,562

4. Expenses

4.
Expenses
30.04.19 to
31.10.20
31.10.19
£'000s
£'000s
Payable to the Manager or associates of the Manager and agents of
either of them:
Manager'speriodic charge 335 217
335 217
Payable to the Corporate Trustee or associates of the Trustee and
agents of either of them:
Corporate Trustee's fees 101
60
Safe custodyfees 10
3
111
63
Auditor's fee 19
16
Other expenses 61
37
80
53
Total expenses 526
333

15

Epworth UK Equity Fund for Charities

Notes to the financial statements

5. Taxation

The Sub-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.

30.04.19 to
31.10.20
31.10.19
£'000s
£'000s
Taxation 20
7

10. Reconciliation of units

CFB
Income Accum Income
units units units
Opening number of units
at beginning of year 01.11.19 48,092,180 50,114 67,811,190
Units issued in year 5,060,332 17,114 5,928,950
Units cancelled in year (21,791,819) - (7,927,445)
In-specie in theyear - - 168,602,057
Closing number of units
at end ofyear31.10.20 31,360,693 67,228 234,414,752

6. Distributions

Distributions take account of income received on creation of units and income deducted on the cancellation of units, and comprise:

30.04.19 to
31.10.20
31.10.19
£'000s
£'000s
31 January 992
-
30 April 1,454
-
31 July 750
1,195
31 October 2,436
2,097
5,632
3,292
Income deducted on cancellation of units 162
118
Income received on creation of units (1,582) (193)
Net distribution for theyear/period 4,212
3,217
Net revenue after taxation 4,223
3,222
Movement of undistributed revenue (11) (5)
Net distribution for theyear/period 4,212
3,217
7.
Debtors
31.10.20 31.10.19
£’000s £'000s
Amounts receivable for creation of units 4,982 -
Sales awaiting settlement 1,430 -
Accrued income 244 424
Overseas tax recoverable 7 15
Income tax recoverable 5 1
Total debtors 6,668 440

11. Financial instruments

Fair value

In accordance with the investment objective, the Sub-fund holds certain financial instruments. These comprise:

The main risks arising from the Sub-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 period.

Market price risk

Market price risk arises mainly from uncertainty about future prices of financial instruments held. It represents the potential loss the Subfund might suffer through holding market positions in the face of price movements. The Sub-fund's investment portfolio is exposed to market fluctuations which are monitored by the Manager in pursuit of the investment objectives and policies. Adherence to investment guidelines and to investment and borrowing powers set out in the Trust Deed, the Prospectus and in the Collective Investment Schemes Sourcebook ("the Sourcebook") mitigates the risk of excessive exposure to any particular type of security or issuer.

Counterparty risk

The Sub-fund’s transactions in securities expose it to the risk that the counterparty will not deliver the investment for a purchase or the cash for a sale. To minimise this, the Sub-fund only deals with an approved list of brokers maintained by the Manager.

8. Cash and bank balances

8.
Cash and bank balances
31.10.20 31.10.19
£’000s £'000s
Afrmative Deposit Fund for Charities 5,093 3,010
Cash at bank 103 441
Total cash and bank balances 5,196 3,451
9.
Other creditors
31.10.20 31.10.19
£’000s £'000s
Purchases awaiting settlement 5,659 -
Accrued expenses 110 169
Total other creditors 5,769 169

Liquidity risk

The Sub-fund's assets are comprised of mainly readily realisable securities. If insufficient cash is available to finance unitholder redemptions then securities held by the Sub-fund may need to be sold. The risk of low market liquidity, through reduced trading volumes, may affect the ability of the Sub-fund to trade financial instruments at values previously indicated by financial brokers. From time to time, liquidity may also be affected by stock specific or economic events. The Manager has a Liquidity Management Policy designed to monitor the liquidity risk of the Sub-fund and ensure that its investment strategy and liquidity profile allows the Sub-fund to meet its daily redemption obligations.

Foreign currency risk

Foreign currency risk is the risk that the value of the Sub-fund's investment holdings will fluctuate as a result of changes in foreign currency exchange rates.

16

Epworth UK Equity Fund for Charities

Notes to the financial statements

The total currency exposure at the year/period end:

31.10.20 31.10.19
Non- Non-
Monetary monetary Monetary monetary
exposures exposures Total exposures exposures Total
Currency £'000s £'000s £'000s £'000s £'000s £'000s
Sterling 3,552 350,080 353,632 1,020 179,262 180,282
Euro 66 - 66 154 1,615 1,769
Norwegian Kroner 8 - 8 122 2,056 2,178
US Dollar 33 - 33 330 2,156 2,486
Total 3,659 350,080 353,739 1,626 185,089 186,715

Interest rate risk

The majority of the Sub-fund's financial assets are equity shares and other investments which neither pay interest nor have a maturity date.

At the year end 1.47% (31.10.19: 1.85%) of the Sub-fund's assets by value were interest bearing.

Interest receivable on bank deposits or payable on bank overdraft positions will be affected by fluctuations in interest rates.

12. Commitments and contingent liabilities

There were no commitments or contingent liabilities as at 31 October 2020 (31.10.19: none).

14. Related party transactions

The Manager’s periodic charge is paid to Epworth Investment Management Limited, a related party to the Sub-fund. The amounts paid in respect of the Manager's periodic charge are disclosed in note 4. The amount outstanding as at 31 October 2020 was £62,472 (31.10.19: £69,590)

In addition, the Sub-fund placed deposits during the year with the Affirmative Deposit Fund for Charities, a fund managed by Epworth Investment Management Limited. All charges levied for the management of these deposits have been refunded to the Sub-fund by Epworth. There were no other related party transactions during the year.

13. Unitholders' funds

There are three unit classes in issue within the Sub-fund. These are Income, Accumulation and CFB Income units. The Manager's periodic charge in respect of these units is expressed as an annual percentage of the value of the property of the Sub-fund attributable to each unit class and is currently 0.55% in respect of Income and Accumulation units and 0% in respect of CFB Income units. Consequently, the level of net revenue attributable to each unit class will differ. Should it be necessary to wind-up the Sub-fund, each unit class will have the same rights as regards to the distribution of the property of the Sub-fund.

17

Epworth UK Equity Fund for Charities

Notes to the financial statements

15. Portfolio transaction costs

For the year ended 31 October 2020

15. Portfolio transaction costs
For the year ended 31 October 2020
Other
Value Commissions Taxes expenses Total
£'000s £'000s % £'000s % £'000s % £'000s
Analysis of total purchases costs
Equity transactions 274,721 15 0.01 - - - - 274,736
Pooled investment vehicles 9,741 3 0.03 - - - - 9,744
Total 284,462 18 - - 284,480
Other
Value Commissions Taxes expenses Total
£'000s £'000s % £'000s % £'000s % £'000s
Analysis of total sales costs
Equity transactions 67,141 (21) (0.03) - - - -
67,120
Pooled investment vehicles 8,965 (4) (0.04) - - - -
8,961
Total 76,106 (25) - - 76,081
Commissions, taxes and other expenses as a percentage of average net assets:
Commissions 0.02%
Taxes 0.00%
Other expenses 0.00%

For the period ended 31 October 2019

For the period ended 31 October 2019
Other
Value Commissions Taxes expenses Total
£'000s £'000s % £'000s % £'000s % £'000s
Analysis of total purchases costs
Equity transactions 199,105 4 - - - - - 199,109
Pooled investment vehicles 6,272 1 0.02 - - - - 6,273
Total 205,377 5 - - 205,382
Other
Value Commissions Taxes expenses Total
£'000s £'000s % £'000s % £'000s % £'000s
Analysis of total sales costs
Equity transactions 18,108 (7) (0.04) - - - -
18,101
Pooled investment vehicles 3,726 (2) (0.05) - - - -
3,724
Total 21,834 (9) - - 21,825
Commissions, taxes and other expenses as a percentage of average net assets:
Commissions 0.01%
Taxes 0.00%
Other expenses 0.00%

Portfolio transaction costs are incurred by the Sub-fund when buying and selling underlying investments. These costs vary depending on the class of investment, country of exchange and method of execution.

These costs can be classified as either direct or indirect transaction costs:

Direct transaction costs: Broker commissions, fees and taxes.

Indirect transaction costs: "Dealing spread" - the difference between buying and selling prices of the underlying investments.

At the balance sheet date the portfolio dealing spread was 0.40% (31.10.19: 0.35%) being the difference between the respective bid and offer prices for the Sub-fund's investments.

18

Epworth UK Equity Fund for Charities

Notes to the financial statements

16. Sensitivity analysis

Interest rate risk sensitivity

As the majority of the Sub-fund's financial assets are non-interest bearing, the Sub-fund is only subject to limited exposure to fair value interest rate risk due to fluctuations in levels of market interest rates and therefore, no sensitivity analysis has been provided.

Foreign currency risk sensitivity

A five percent increase in the value of the Sub-fund's foreign currency exposure would have the effect of increasing the return and net assets by £5,325 (31.10.19: £321,624). A five percent decrease would have an equal and opposite effect.

Price risk sensitivity

A five percent increase in the value of the Sub-fund's portfolio would have the effect of increasing the return and net assets by £17,504,023 (31.10.19: £9,254,432). A five percent decrease would have an equal and opposite effect.

17. Fair value of financial assets and financial liabilities

The fair value of the Sub-fund's investments has been determined using the hierarchy below. This complies with the 'Amendments to FRS102 - Fair value hierarchy disclosures' issued by the Financial Reporting Council in March 2016.

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.

For the year ended 31 October 2020 For the year ended 31 October 2020
Category 1 2 3 Total
£'000s £'000s £'000s £'000s
Equities 347,303 - - 347,303
Pooled Investment Vehicles 2,777 - - 2,777
350,080 - - 350,080
For the period ended 31 October 2019
Category 1 2 3 Total
£'000s £'000s £'000s £'000s
Equities 182,681 - - 182,681
Pooled Investment Vehicles 2,408 - - 2,408
185,089 - - 185,089

19

Epworth UK Equity Fund for Charities

Distribution tables

For the year ended 31 October 2020

First interim distribution in pence per unit

Group 1: units purchased prior to 1 November 2019 Group 2: units purchased 1 November 2019 to 31 January 2020

2020 2019
Net pence per unit paid pence per unit paid
income Equalisation 13Mar 15Mar*
Income units
Group 1 0.72 - 0.72 n/a
Group 2 0.11 0.61 0.72 n/a
Accumulation units
Group 1 0.73 - 0.73 n/a
Group 2 0.73 0.00 0.73 n/a
CFB Income units
Group 1 0.96 - 0.96 n/a
Group2 0.83 0.13 0.96 n/a

Second interim distribution in pence per unit

Group 1: units purchased prior to 1 February 2020 Group 2: units purchased 1 February 2020 to 30 April 2020

2020 2019
Net pence per unit paid pence per unit paid
income Equalisation 15Jun 15Jun*
Income units
Group 1 1.13 - 1.13 n/a
Group 2 0.06 1.07 1.13 n/a
Accumulation units
Group 1 1.14 - 1.14 n/a
Group 2 0.00 1.14 1.14 n/a
CFB Income units
Group 1 1.32 - 1.32 n/a
Group2 0.00 1.32 1.32 n/a

20

Epworth UK Equity Fund for Charities

Distribution tables

Third interim distribution in pence per unit

Group 1: units purchased prior to 1 May 2020 Group 2: units purchased 1 May 2020 to 31 July 2020

2020 2019
Net pence per unit paid pence per unit paid
income Equalisation 15Sep 13Sep
Income units
Group 1 0.64 - 0.64 1.14
Group 2 0.01 0.63 0.64 1.14
Accumulation units**
Group 1 0.65 - 0.65 n/a
Group 2 0.16 0.49 0.65 n/a
CFB Income units
Group 1 0.83 - 0.83 1.11
Group2 0.83 0.00 0.83 1.11

Final distribution in pence per unit

Group 1: units purchased prior to 1 August 2020 Group 2: units purchased 1 August 2020 to 31 October 2020

2020 2019
Net pence per unit paid pence per unit paid
income Equalisation 15Dec 13Dec
Income units
Group 1 0.74 - 0.74 1.68
Group 2 0.05 0.69 0.74 1.68
Accumulation units
Group 1 0.77 - 0.77 1.68
Group 2 0.77 0.00 0.77 1.68
CFB Income units
Group 1 0.94 - 0.94 1.90
Group2 0.06 0.88 0.94 1.90

** The Accumulation units launched on 2 August 2019.

Equalisation

This applies only to units purchased during the distribution period (Group 2 units). It is the average revenue included in the purchase price of all Group 2 units and is refunded to the holders of these units as a return of capital. Being capital it is not liable to income tax but must be deducted from the cost of the units for capital gains tax purposes.

21

Epworth Global Equity Fund for Charities

Statement of total return

Statement of total return
For the year ended 31 October 2020
31.10.20 31.10.19*
Note £'000s £'000s
Income: net capitalgains 2 4,633 3,060
Income: revenue 3 1,099 523
Expenses 4 (172) (70)
Interest on bank overdrafts (2) -
Taxation 5 (108) (42)
Net revenue after taxation 817 411
Total return before distributions 5,450 3,471
Distributions 6 (817) (406)
Change in net assets attributable to unitholders from investment activities 4,633 3,065

Statement of change in net assets attributable to unitholders

For the year ended 31 October 2020
31.10.20 31.10.19*
£'000s £'000s
Opening net assets attributable to unitholders 62,097 -
Amounts receivable on issue of units 6,254 21,865
Amounts receivable on in-specie transfer** - 48,866
Amountspayable on cancellation of units (9,389) (11,699)
58,962 59,032
Dilution adjustment 23 -
Change in net assets attributable to unitholders from investment activities 4,633 3,065
Closingnet assets attributable to unitholders 63,618 62,097

** Represents the value of units created by in-specie transfer of assets during the period.

Balance sheet

Balance sheet
As at 31 October 2020
31.10.20 31.10.19
Note £'000s £'000s
Assets
Investments 62,603 61,347
Current assets:
Debtors 7 247 86
Cash and bank balances 8 978 946
Total assets 63,828 62,379
Liabilities
Creditors:
Distributions payable (166) (236)
Other creditors 9 (44) (46)
Total liabilities (210) (282)
Net assets attributable to unitholders 63,618 62,097
Balance sheet approved and signed on behalf of the Manager by:

David Palmer, Director Marina Phillips, Secretary 24 December 2020 24 December 2020

22

Epworth Global Equity Fund for Charities

Comparative table

Comparative table
Income units
31.10.20 31.10.19^
Change in net assetsper unit penceper unit penceper unit
Openingnet asset valueper unit 103.62 100.00
Return before operating charges* 9.30 4.52
Operatingcharges (0.86) (0.44)
Return after operatingcharges* 8.44 4.08
Distributions on income units (0.85) (0.46)
Closingnet asset valueper unit 111.21 103.62
* after direct transaction costs of (pence per unit): 0.02 0.02
Performance
Return after charges 8.15% 4.08%
Other information
Closing net asset value (£'000s) 14,280 9,402
Closing number of units 12,840,556 9,072,688
Operating charges 0.80% 0.80%
Direct transaction costs 0.02% 0.02%
Prices(penceper unit)+
Highest unit price (ofer) 119.26 109.04
Lowest unitprice(bid) 85.88 95.89

The return after charges has been calculated in accordance with the Statement of Recommended Practice for UK Authorised Funds' prescribed calculation methodology. This is for financial statement reporting purposes only and differs from the Sub-fund’s performance disclosed in the Report of the Investment Manager.

23

Epworth Global Equity Fund for Charities

Comparative table

Accumulation units

Accumulation units
31.10.20 31.10.19^
Change in net assetsper unit penceper unit penceper unit
Openingnet asset valueper unit 103.87 107.26
Return before operating charges* 9.37 (3.17)
Operatingcharges (0.86) (0.22)
Return after operatingcharges* 8.51 (3.39)
Distributions on accumulation units (0.86) (0.25)
Retained distributions on accumulation units 0.86 0.25
Closingnet asset valueper unit 112.38 103.87
* after direct transaction costs of (pence per unit): 0.02 0.02
Performance
Return after charges 8.19% (3.16%)
Other information
Closing net asset value (£'000s) 44 7
Closing number of units 38,984 6,862
Operating charges 0.80% 0.80%
Direct transaction costs 0.02% 0.02%
Prices(penceper unit)+
Highest unit price (ofer) 120.35 107.22
Lowest unitprice(bid) 86.18 102.27

The return after charges has been calculated in accordance with the Statement of Recommended Practice for UK Authorised Funds' prescribed calculation methodology. This is for financial statement reporting purposes only and differs from the Sub-fund’s performance disclosed in the Report of the Investment Manager.

24

Epworth Global Equity Fund for Charities

Comparative table

Comparative table
CFB Income units
31.10.20 31.10.19^
Change in net assetsper unit penceper unit penceper unit
Openingnet asset valueper unit 103.60 99.42
Return before operating charges* 9.33 5.05
Operatingcharges (0.16) (0.07)
Return after operatingcharges* 9.17 4.98
Distributions on income units (1.58) (0.80)
Closingnet asset valueper unit 111.19 103.60
* after direct transaction costs of (pence per unit): 0.02 0.02
Performance
Return after charges 8.85% 5.01%
Other information
Closing net asset value (£'000s) 49,294 52,688
Closing number of units 44,333,804 50,856,756
Operating charges 0.15% 0.12%
Direct transaction costs 0.02% 0.02%
Prices(penceper unit)+
Highest unit price (ofer) 119.39 109.18
Lowest unitprice(bid) 85.93 97.13

The return after charges has been calculated in accordance with the Statement of Recommended Practice for UK Authorised Funds' prescribed calculation methodology. This is for financial statement reporting purposes only and differs from the Sub-fund’s performance disclosed in the Report of the Investment Manager.

25

Epworth Global Equity Fund for Charities

Portfolio of investments

Portfolio of investments
As at 31 October 2020
Market
Total net
value
assets
Holding
£'000s
%
United Kingdom (31.10.19 - 3.94%)
2.40
Basic Materials
BHP Group
5,770
86
0.13
Rio Tinto
2,720
118
0.19
Consumer Goods
Reckitt Benckiser
1,740
118
0.19
Unilever
2,690
118
0.19
Consumer Services
RELX
5,250
80
0.13
Financials
HSBC Holdings
50,110
163
0.26
Prudential
7,180
68
0.10
Healthcare
AstraZeneca
3,390
263
0.41
GlaxoSmithKline
12,660
164
0.26
Oil & Gas
Royal Dutch Shell ‘A’
10,420
101
0.16
Royal Dutch Shell ‘B’
9,700
90
0.14
Telecommunications
Vodafone Group
74,070
76
0.12
Utilities
National Grid
8,620
79
0.12
Australia (31.10.19 - 1.74%)
1.35
Basic Materials
BHP Billiton
8,180
150
0.23
Financials
Australia & New Zealand Banking Group 8,670
89
0.14
Commonwealth Bank of Australia
4,920
184
0.29
National Australia Bank
8,000
81
0.13
Westpac Banking
10,670
104
0.16
Healthcare
CSL
1,260
197
0.31
Industrials
Transurban Group
7,520
55
0.09
Market
Total net
value
assets
Holding
£'000s
%
Canada (31.10.19 - 1.09%)
0.88
Financials
Bank of Montreal
960
44
0.07
Bank of Nova Scotia
1,840
59
0.09
Brookfeld Asset
2,340
54
0.09
Royal Bank of Canada
2,170
117
0.18
Toronto Dominion Bank
2,740
93
0.15
Industrials
Canadian National Railway
1,100
84
0.13
Technology
Shopify ‘A’
150
107
0.17
Denmark (31.10.19 - 0.29%)
0.33
Healthcare
Novo Nordisk ‘B’
4,260
213
0.33
Finland (31.10.19 - 1.26%)
1.25
Industrials
Detection Technology Oy
44,850
796
1.25
France (31.10.19 - 3.25%)
2.62
Basic Materials
Air Liquide
1,147
130
0.20
Consumer Goods
L’Oreal
600
150
0.24
Consumer Services
Kering
200
93
0.15
Financials
BNP Paribas
2,680
72
0.11
Healthcare
Sanof
2,810
196
0.31
Industrials
Vinci
1,290
79
0.12
Technology
Infotel Sa
29,148
948
1.49
Germany (31.10.19 - 2.09%)
1.53
Basic Materials
BASF
2,270
96
0.15
Bayer
2,310
84
0.13

26

Epworth Global Equity Fund for Charities

Portfolio of investments

Portfolio of investments
Consumer Goods
Adidas
520
120
0.19
Financials
Allianz
1,090
149
0.23
Industrials
Siemens
1,960
178
0.28
Technology
SAP
3,070
253
0.40
Telecommunications
Deutsche Telekom
7,990
94
0.15
Hong Kong (31.10.19 - 0.63%)
0.59
Financials
AIA Group
33,560
244
0.39
Hong Kong Exchanges and Clearing
3,490
129
0.20
Ireland (31.10.19 - 13.01%)
12.47
Basic Materials
Linde
810
138
0.22
Industrials
Accenture
6,680
1,121
1.76
Allegion
10,450
796
1.25
Healthcare
Medtronic
2,030
158
0.25
Financials
AON
350
50
0.08
iShares MSCI EM SRI UCITS ETF
309,387
1,644
2.58
iShares MSCI World ESG
Enhanced UCITS ETF
110,000
482
0.76
Vanguard FTSE All-World UCITS ETF
4,250
298
0.47
Vanguard FTSE Emerging
Markets UCITS ETF
70,500
3,244
5.10
Italy (31.10.19 - 0.21%)
0.18
Utilities
Enel
19,230
118
0.18
Japan (31.10.19 - 7.42%)
6.61
Basic Materials
Shin-Etsu Chemical
1,600
164
0.26
As at 31 October 2020
Market
Total net
value
assets
Holding
£'000s
%
Market
Total net
value
assets
Holding
£'000s
%
Consumer Goods
Honda Motor
7,000
126
0.20
Kao
1,900
104
0.16
Nintendo
400
169
0.27
Sony
4,700
301
0.47
Toyota Motor
9,400
473
0.74
Financials
Mitsubishi UFJ Financial Group
50,400
153
0.24
Sumitomo Mitsui Financial
5,200
111
0.17
Healthcare
Daiichi Sankyo
7,800
159
0.25
Takeda Pharmaceutical
6,100
146
0.23
Industrials
Daikin Industries
1,100
158
0.25
Fanuc
800
130
0.20
Hoya
14,000
1,222
1.92
Keyence
700
245
0.39
Nidec
1,700
132
0.21
Recruit Holdings
4,900
144
0.23
Telecommunications
Softbank
5,300
266
0.42
Luxembourg (31.10.19 - 5.93%)
2.86
Financials
UBS MSCI Emerging Markets Socially
Responsible UCITS ETF
180,000
1,819
2.86
Netherlands (31.10.19 - 0.77%)
0.99
Consumer Goods
Unilever
3,740
164
0.26
Healthcare
Koninklijke Philips
2,370
85
0.13
Technology
Adyen
70
91
0.14
ASML Holding
1,040
292
0.46
Norway (31.10.19 - 1.32%)
1.16
Consumer Goods
Salmar
18,932
739
1.16
Singapore (31.10.19 - 0.26%)
0.18
Financials
DBS Group
4,990
58
0.09
Overseas-Chinese Banking
11,290
54
0.09

27

Epworth Global Equity Fund for Charities

Portfolio of investments

As at 31 October 2020
Market
Total net
value
assets
Holding
£'000s
%
Spain (31.10.19 - 1.66%)
0.23
Utilities
Iberdrola
15,853
145
0.23
Sweden (31.10.19 - 2.18%)
2.52
Healthcare
BioGaia
20,469
752
1.18
Industrials
Troax Group
68,103
854
1.34
Switzerland (31.10.19 - 6.69%)
6.63
Basic Materials
Sika
4,790
912
1.43
Consumer Goods
Nestle ‘R’
7,650
665
1.04
Financials
Chubb
750
75
0.12
Partners Group
1,154
805
1.27
Zurich Insurance Group
380
97
0.15
Healthcare
Lonza
200
94
0.15
Novartis ‘R’
5,900
356
0.56
Roche Holding
1,920
477
0.75
Industrials
VAT Group
5,085
736
1.16
United States (31.10.19 - 45.05%)
53.62
Basic Materials
Air Products & Chemicals
330
70
0.11
Ecolab
380
54
0.08
Ingevity
18,660
792
1.25
Consumer Goods
Activision Blizzard
1,130
66
0.10
Coca-Cola
5,760
214
0.34
Colgate-Palmolive
1,270
78
0.12
Estée Lauder A
320
54
0.09
Fox Factory Holding
12,200
793
1.25
Kimberly-Clark
520
53
0.08
Mondelez International
2,340
96
0.15
Nike ‘B’
1,790
166
0.26
PepsiCo
2,120
219
0.34
Procter & Gamble
3,730
395
0.62
Tesla Motors
1,000
300
0.47
Market
Total net
value
assets
Holding
£'000s
%
Consumer Services
Amazon.com
600
1,409
2.22
Charter Communications ‘A’
260
121
0.19
Comcast
6,810
223
0.35
Costco Wholesale
660
183
0.29
CVS Health
1,960
85
0.13
Dollar General
360
58
0.09
Home Depot
6,045
1,247
1.96
Lowe’s Companies
1,290
158
0.25
McDonald’s
1,130
186
0.29
MercadoLibre
70
66
0.10
NetFlix
640
235
0.37
PayPal Holdings
1,770
255
0.40
Ross Stores
10,785
710
1.12
Starbucks
1,770
119
0.19
Target
820
97
0.15
TJX
2,000
79
0.12
Wal-Mart Stores
2,120
228
0.36
Walt Disney
2,640
247
0.39
Financials
American Express
1,010
71
0.11
American Tower
720
128
0.20
Bank of America
12,250
225
0.35
Berkshire Hathaway ‘B’
2,000
313
0.49
BlackRock
180
83
0.13
Chicago Mercantile Exchange
540
63
0.10
Citigroup
3,280
105
0.17
Crown Castle Real Estate Investment Trust 620
75
0.12
Equinix Real Estate Investment Trust
150
85
0.13
Goldman Sachs Group
530
78
0.12
Intercontinental Exchange
830
61
0.10
JP Morgan Chase & Co
4,690
355
0.56
Marsh & McLennan
760
61
0.10
Mastercard
5,040
1,126
1.77
Morgan Stanley
1,960
73
0.11
PNC Financial Services
660
57
0.09
Progressive
860
61
0.10
Prologis
950
73
0.11
S&P Global
3,830
956
1.50
Schwab (Charles)
1,740
55
0.09
SEI Investments
23,820
906
1.42
Square A
520
62
0.10
Truist Financial
2,210
72
0.11
US Bancorp
2,360
71
0.11
Visa
2,590
364
0.57
Wells Fargo
5,730
95
0.15

28

Epworth Global Equity Fund for Charities

Portfolio of investments

Healthcare
Abbott Laboratories
2,600
211
0.33
AbbVie
2,654
175
0.28
Amgen
900
151
0.24
Anthem
380
80
0.13
Becton Dickinson
400
71
0.11
Biogen Idec
270
53
0.08
Boston Scientifc
2,100
56
0.09
Bristol Myers Squibb
3,540
160
0.25
Cigna
550
71
0.11
Edwards Lifesciences
1,020
57
0.09
Eli Lilly
1,280
129
0.20
Gilead Sciences
2,100
95
0.15
Humana
200
62
0.10
Illumina
270
61
0.10
Intuitive Surgical
170
88
0.14
Johnson & Johnson
4,000
424
0.67
Merck & Co
3,840
223
0.35
Pfzer
8,390
230
0.36
Regeneron Pharmaceuticals
120
50
0.08
Stryker
520
81
0.13
Thermo Fisher Scientifc
600
220
0.35
Vertex Pharmaceuticals
390
63
0.10
Zoetis
720
88
0.14
Industrials
3M Co
920
114
0.18
Automatic Data Processing
9,290
1,135
1.78
Caterpillar
900
109
0.17
CSX
1,130
69
0.11
Danaher
930
165
0.26
Deere & Company
480
84
0.13
FedEx
350
70
0.11
Fidelity National Information
920
89
0.14
Fiserv
930
69
0.11
General Electric
13,100
75
0.12
Global Payments
490
60
0.09
Graco
19,890
952
1.50
Mettler-Toledo International
1,500
1,158
1.82
Norfolk Southern
390
63
0.10
Sherwin-Williams
120
64
0.10
Toro
15,870
1,009
1.59
Union Pacifc
1,050
144
0.23
United Parcel Services
1,060
129
0.20
Waste Management
640
53
0.08
Zebra Technologies A
4,240
930
1.46
As at 31 October 2020
Market
Total net
value
assets
Holding
£'000s
%
Market
Total net
value
assets
Holding
£'000s
%
Technology
Adobe Systems
740
256
0.40
Advanced Micro Devices
1,570
91
0.14
Alphabet ‘A’
450
562
0.88
Alphabet ‘C’
450
564
0.89
Apple
22,930
1,931
3.04
Applied Materials
1,550
71
0.11
Autodesk
320
58
0.09
Booking
70
88
0.14
Broadcom
590
160
0.25
Cisco Systems
6,480
180
0.28
Facebook
3,420
697
1.10
Intel
6,590
226
0.36
International Business Machines
1,330
115
0.18
Intuit
370
90
0.14
Lam Research
210
56
0.09
Micron Technology
1,820
71
0.11
Microsoft
10,650
1,668
2.62
Nvidia
890
346
0.54
Oracle
3,100
134
0.21
Qualcomm
1,740
166
0.26
Salesforce.com
1,340
241
0.38
ServiceNow
280
108
0.17
Texas Instruments
10,520
1,177
1.85
Zoom Video Communications ‘A’
240
86
0.13
Telecommunications
AT&T
10,990
230
0.36
T-Mobile
770
65
0.10
Verizon Communications
6,210
274
0.43
Utilities
Exelon
1,780
55
0.09
NextEra Energy
3,160
179
0.28
Portfolio of investments
62,603
98.40
Net other assets
1,015
1.60
Net assets
63,618
100.00
Unless otherwise stated, all investments are approved securities being
either ofcially listed in a member state or traded on or under the rules
of an eligible securities market.

29

Epworth Global Equity Fund for Charities

Summary of material portfolio changes

Summary of material portfolio changes
For the year ended 31 October 2020
Cost
£'000s
Purchases
Vanguard FTSE All-World UCITS ETF
2,257
Ingevity Corporation
1,053
Zebra Technologies 'A'
988
Automatic Data Processing
947
S&P Global
900
Accenture
862
Mettler Toledo International
829
iShares MSCI World ESG Enhance ETF
496
SEI
367
Biogaia
329
9,028
Otherpurchases
4,577
Totalpurchases
13,605
Proceeds
£'000s
Sales
Vanguard FTSE All-World UCITS ETF
3,449
UBS ETF
2,248
Fox Factory Holding
708
Vanguard FTSE Developed Asia ETF
676
Choice Hotels International
669
Amadeus
581
Kose
544
BioGaia
422
Apple
418
UnitedHealth Group
379
10,094
Other sales
6,958
Total sales
17,052

30

Epworth Global Equity Fund for Charities

Notes to the financial statements

1 Accounting policies

(a) Basis of accounting

The financial statements have been prepared under the historical cost basis, as modified by the revaluation of investments and in compliance with Financial Reporting Standard 102 (FRS102) and in accordance with the Statement of Recommended Practice (SORP) for financial statements of Authorised Funds issued by The Investment Association in May 2014 (and amended in June 2017), the Charities Act 2011 and the relevant scheme of Charity Commissioners.

Unless otherwise stated all accounting policies are consistent with those of the prior year.

Judgements in applying accounting policies and key sources of estimation uncertainty

The Manager does not consider that there were any significant areas of estimation uncertainty or application of critical judgements.

(b) Basis of valuation

The quoted investments of the Sub-fund have been valued at bid dealing prices as at close of business on 30 October 2020, the last valuation point in the accounting year, in accordance with the Trust Deed.

(c) Recognition of income

Dividends on ordinary stocks and distributions are credited to revenue when the securities are quoted ex-dividend. Interest on bank deposits are accounted for on a receipts basis.

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.

(d) Stock dividends

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

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

The underlying circumstances behind a special dividend, share buyback or additional share issue are reviewed on a case by case basis in determining whether the amount is revenue or capital in nature. Amounts recognised as revenue form part of the distribution.

(f) Expenses

Expenses are accounted for on an accruals basis. Expenses of the Subfund are charged against revenue, except for the costs associated with the purchase and sale of investments, which are charged to capital.

(g) Distribution policy

Revenue produced by the Sub-fund's investments accumulates during each accounting period. If, at the end of each accounting period, revenue exceeds expenses, the net revenue of the Sub-fund is available to be distributed/accumulated to unitholders.

(h) Foreign exchange

Transactions in foreign currencies during the year are translated into sterling (the functional currency of the Sub-fund), at the rates of exchange ruling on the transaction date. Amounts held in foreign currencies have been translated at the rate of exchange ruling at close of business, 30 October 2020, the last valuation point in the accounting year.

(i) Apportionment to multiple unit classes

of the Sub-fund's assets attributable to each unit class on the day the revenue is earned or the expense is suffered. The Manager's periodic charge is specific to each unit class. Consequently, the revenue available to distribute for each unit class will differ.

2. Net gains on investments

The net capital gains during the year/period comprise:

30.04.19 to
31.10.20
31.10.19
£'000s
£'000s
Unrealised gains on non-derivative securities 4,601
2,940
Realised gains on non-derivative securities 84
140
Unrealised currency losses (32)
(14)
Realised currency losses (17)
(6)
Capital special dividends 1
-
Transaction charges (4) -
Netgains on investments 4,633 3,060

3. Revenue

3.
Revenue
30.04.19 to
31.10.20
31.10.19
£'000s
£'000s
UK dividends 73
41
Overseas dividends 1.022
480
Bank interest 4 2
Total revenue 1,099 523

4. Expenses

4.
Expenses
30.04.19 to
31.10.20
31.10.19
£'000s
£'000s
Payable to the Manager or associates of the Manager and agents of
either of them:
Manager's periodic charge 82
29
Registration fees 16
5
98
34
Payable to the Corporate Trustee or associates of the Trustee and
agents of either of them:
Corporate Trustee's fees 45
20
Safe custodyfees 6
2
51
22
Auditor's fee 8
3
Other expenses 15 11
23 14
Total expenses 172
70

5. Taxation

The Sub-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.

30.04.19 to
31.10.20
31.10.19
£'000s
£'000s
Taxation 108
42

With the exception of the Manager's periodic charge, the allocation of revenue and expenses to each unit class is based upon the proportion

31

Epworth Global Equity Fund for Charities

Notes to the financial statements

6. Distributions

Distributions take account of income received on creation of units and income deducted on the cancellation of units, and comprise:

30.04.19
31.10.20 to 31.10.19
£'000s £'000s
31 January 158 -
30 April 247 -
31 July 247 214
31 October 166 236
818 450
Income deducted on cancellation of units 7 16
Income received on creation of units (8) (60)
Net distribution for theyear/period 817 406
Net revenue after taxation 817 411
Movement of undistributed revenue - (5)
Net distribution for theyear/period 817 406
7.
Debtors
31.10.20 31.10.19
£'000s £'000s
Amounts receivable for creation of units 151 -
Accrued income 69 84
Overseas tax recoverable 27 2
Total debtors 247 86

11. Financial instruments

In accordance with the investment objective, the Sub-fund holds certain financial instruments. These comprise:

The main risks arising from the Sub-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 period.

Market price risk

Market price risk arises mainly from uncertainty about future prices of financial instruments held. It represents the potential loss the Subfund might suffer through holding market positions in the face of price movements. The Sub-fund's investment portfolio is exposed to market fluctuations which are monitored by the Manager in pursuit of the investment objectives and policies. Adherence to investment guidelines and to investment and borrowing powers set out in the Trust Deed, the Prospectus and in the Collective Investment Schemes Sourcebook ("the Sourcebook") mitigates the risk of excessive exposure to any particular type of security or issuer.

Counterparty risk

The Sub-fund’s transactions in securities expose it to the risk that the counterparty will not deliver the investment for a purchase or the cash for a sale. To minimise this, the Sub-fund only deals with an approved list of brokers maintained by the Manager.

8. Cash and bank balances

8.
Cash and bank balances
31.10.20 31.10.19
£'000s £'000s
Afrmative Deposit Fund for Charities 158 370
Cash at bank 820 576
Total cash and bank balances 978 946
9.
Other creditors
31.10.20 31.10.19
£'000s £'000s
Accrued expenses 44 46
Total other creditors 44 46

Liquidity risk

The Sub-fund's assets are comprised of mainly readily realisable securities. If insufficient cash is available to finance unitholder redemptions then securities held by the Sub-fund may need to be sold. The risk of low market liquidity, through reduced trading volumes, may affect the ability of the Sub-fund to trade financial instruments at values previously indicated by financial brokers. From time to time, liquidity may also be affected by stock specific or economic events. The Manager has a Liquidity Management Policy designed to monitor the liquidity risk of the Sub-fund and ensure that its investment strategy and liquidity profile allows the Sub-fund to meet its daily redemption obligations.

Foreign currency risk

10. Reconciliation of units

CFB
Income Accum Income
units units units
Opening number of units
at beginning of year 01.11.19 9,072,688 6,862 50,856,756
Units issued in year 5,787,059 32,122 246,611
Units cancelled inyear (2,019,191) - (6,769,563)
Closing number of units
at end ofyear31.10.20 12,840,556 38,984 44,333,804

Foreign currency risk is the risk that the value of the Sub-fund's investment holdings will fluctuate as a result of changes in foreign currency exchange rates.

32

Epworth Global Equity Fund for Charities

Notes to the financial statements

The total currency exposure at the year/period end:

31.10.20 31.10.19
Non- Non-
Monetary monetary Monetary monetary
exposures exposures Total exposures exposures Total
Currency £'000s £'000s £'000s £'000s £'000s £'000s
Sterling 102 9,011 9,113 93 12,827 12,920
Australian Dollar 38 859 897 43 1,084 1,127
Canadian Dollar 65 558 623 17 677 694
Danish Krona 24 213 237 19 180 199
Euro 172 4,333 4,505 94 5,740 5,834
Hong Kong Dollar 13 373 386 41 387 428
Japanese Yen 82 4,204 4,286 45 4,605 4,650
Norwegian Kroner 81 739 820 2 817 819
Singapore Dollar 26 111 137 4 161 165
Swedish Krona 128 1,607 1,735 25 1,353 1,378
Swiss Franc 44 4,143 4,187 4 4,068 4,072
US Dollar 240 36,452 36,692 363 29,448 29,811
Total 1,015 62,603 63,618 750 61,347 62,097

Interest rate risk

The majority of the Sub-fund's financial assets are equity shares and other investments which neither pay interest nor have a maturity date.

At the year end 1.54% (31.10.19: 1.52%) of the Sub-fund's assets by value were interest bearing.

Interest receivable on bank deposits or payable on bank overdraft positions will be affected by fluctuations in interest rates.

12. Commitments and contingent liabilities

There were no commitments or contingent liabilities as at 31 October 2020 (31.10.19: none).

14. Related party transactions

The Manager’s periodic charge is paid to Epworth Investment Management Limited, a related party to the Sub-fund. The amounts paid in respect of the Manager's periodic charge are disclosed in note 4. The amount outstanding as at 31 October 2020 was £24,812 (31.10.19: £9,886).

In addition, the Sub-fund placed deposits during the year with the Affirmative Deposit Fund for Charities, a fund managed by Epworth Investment Management Limited. All charges levied for the management of these deposits have been refunded to the Sub-fund by Epworth. There were no other related party transactions during the year.

13. Unitholders' funds

There are three unit classes in issue within the Sub-fund. These are Income, Accumulation and CFB Income units. The Manager's periodic charge in respect of these units is expressed as an annual percentage of the value of the property of the Sub-fund attributable to each unit class and is currently 0.65% in respect of Income and Accumulation units and 0% in respect of CFB Income units. Consequently, the level of net revenue attributable to each unit class will differ. Should it be necessary to wind-up the Sub-fund, each unit class will have the same rights as regards to the distribution of the property of the Sub-fund.

33

Epworth Global Equity Fund for Charities

Notes to the financial statements

15. Portfolio transaction costs

For the year ended 31 October 2020

15. Portfolio transaction costs
For the year ended 31 October 2020
Other
Value Commissions Taxes expenses Total
£'000s £'000s % £'000s % £'000s % £'000s
Analysis of total purchases costs
Equity transactions 10,602 5 0.05 - - - - 10,607
Pooled investment vehicles 2,990 1 0.03 - - - - 2,991
Corporate actions 7 - - - - - - 7
Total 13,599 6 - - 13,605
Other
Value Commissions Taxes expenses Total
£'000s £'000s % £'000s % £'000s % £'000s
Analysis of total sales costs
Equity transactions 10,510 (5) (0.05) - - - - 10,505
Pooled investment vehicles 6,451 (2) (0.03) - - - - 6,449
Corporate actions 98 - - - - - - 98
Total 17,059 (7) - - 17,052
Commissions, taxes and other expenses as a percentage of average net assets:
Commissions 0.02%
Taxes 0.00%
Other expenses 0.00%

For the period ended 31 October 2019

For the period ended 31 October 2019
Other
Value Commissions Taxes expenses Total
£'000s £'000s % £'000s % £'000s
%		 £'000s
Analysis of total purchases costs
Equity transactions 17,138 6 0.04 - - 1
0.01		 17,145
Pooled investment vehicles 4,360 2 0.05 - - -
-		 4,362
In-specie transactions 47,947 - - - - -
-		 47,947
Total 69,445 8 - 1 69,454
Other
Value Commissions Taxes expenses Total
£'000s £'000s % £'000s % £'000s
%		 £'000s
Analysis of total sales costs
Equity transactions 4,162 (2) (0.05) - - -
-		 4,160
Pooled investment vehicles 7,029 (2) (0.03) - - -
-		 7,027
Total 11,191 (4) - - 11,187

Commissions, taxes and other expenses as a percentage of average net assets:

Commissions, taxes and other expenses as a percentage of average net assets:
Commissions 0.02%
Taxes 0.00%
Other expenses 0.00%

Portfolio transaction costs are incurred by the Sub-fund when buying and selling underlying investments. These costs vary depending on the class of investment, country of exchange and method of execution.

These costs can be classified as either direct or indirect transaction costs:

Direct transaction costs: Broker commissions, fees and taxes.

Indirect transaction costs: "Dealing spread" - the difference between buying and selling prices of the underlying investments.

At the balance sheet date the portfolio dealing spread was 0.15% (31.10.19: 0.13%) being the difference between the respective bid and offer prices for the Sub-fund's investments.

34

Epworth Global Equity Fund for Charities

Notes to the financial statements

16. Sensitivity analysis

Interest rate risk sensitivity

As the majority of the Sub-fund's financial assets are non-interest bearing, the Sub-fund is only subject to limited exposure to fair value interest rate risk due to fluctuations in levels of market interest rates and therefore, no sensitivity analysis has been provided.

Foreign currency risk sensitivity

A five percent increase in the value of the Sub-fund's foreign currency exposure would have the effect of increasing the return and net assets by £2,725,281 (31.10.19: £2,458,846). A five percent decrease would have an equal and opposite effect.

Price risk sensitivity

A five percent increase in the value of the Sub-fund's portfolio would have the effect of increasing the return and net assets by £3,130,142 (31.10.19: £3,067,329). A five percent decrease would have an equal and opposite effect.

17. Fair value of financial assets and financial liabilities

The fair value of the Sub-fund's investments has been determined using the hierarchy below. This complies with the 'Amendments to FRS102 - Fair value hierarchy disclosures' issued by the Financial Reporting Council in March 2016.

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.

For the year ended 31 October 2020 For the year ended 31 October 2020
Category 1 2 3 Total
£'000s £'000s £'000s £'000s
Equities 55,116 - - 55,116
Pooled Investment Vehicles7,487 - - 7,487
62,603 - - 62,603
For the period ended 31 October 2019
Category 1 2 3 Total
£'000s £'000s £'000s £'000s
Equities 50,903 - - 50,903
Pooled Investment Vehicles 10,444 - - 10,444
61,347 - - 61,347

35

Epworth Global Equity Fund for Charities

Distribution tables

For the year ended 31 October 2020

First interim distribution in pence per unit

Group 1: units purchased prior to 1 November 2019 Group 2: units purchased 1 November 2019 to 31 January 2020

2020 2019
Net pence per unit paid pence per unit paid
income Equalisation 13Mar 15Mar*
Income units
Group 1 0.11 - 0.11 n/a
Group 2 0.04 0.07 0.11 n/a
Accumulation units
Group 1 0.11 - 0.11 n/a
Group 2 0.11 0.00 0.11 n/a
CFB Income units
Group 1 0.32 - 0.32 n/a
Group2 0.32 0.00 0.32 n/a

Second interim distribution in pence per unit

Group 1: units purchased prior to 1 February 2020 Group 2: units purchased 1 February 2020 to 30 April 2020

2020 2019
Net pence per unit paid pence per unit paid
income Equalisation 15Jun 15Jun*
Income units
Group 1 0.29 - 0.29 n/a
Group 2 0.11 0.18 0.29 n/a
Accumulation units
Group 1 0.30 - 0.30 n/a
Group 2 0.19 0.11 0.30 n/a
CFB Income units
Group 1 0.46 - 0.46 n/a
Group2 0.32 0.14 0.46 n/a

36

Epworth Global Equity Fund for Charities

Distribution tables

Third interim distribution in pence per unit

Group 1: units purchased prior to 1 May 2020 Group 2: units purchased 1 May 2020 to 31 July 2020

2020 2019
Net pence per unit paid pence per unit paid
income Equalisation 15Sep 13Sep
Income units
Group 1 0.30 - 0.30 0.21
Group 2 0.09 0.21 0.30 0.21
Accumulation units**
Group 1 0.29 - 0.29 n/a
Group 2 0.04 0.25 0.29 n/a
CFB Income units
Group 1 0.47 - 0.47 0.38
Group2 0.39 0.08 0.47 0.38

Final distribution in pence per unit

Group 1: units purchased prior to 1 August 2020 Group 2: units purchased 1 August 2020 to 31 October 2020

2020 2019
Net pence per unit payable pence per unit paid
income Equalisation 15Dec 13Dec
Income units
Group 1 0.15 - 0.15 0.25
Group 2 0.05 0.10 0.15 0.25
Accumulation units
Group 1 0.16 - 0.16 0.25
Group 2 0.16 0.00 0.16 0.25
CFB Income units
Group 1 0.33 - 0.33 0.42
Group2 0.33 0.00 0.33 0.42

** The Accumulation units launched on 2 August 2019.

Equalisation

This applies only to units purchased during the distribution period (Group 2 units). It is the average amount of revenue included in the purchase price of all Group 2 units and is refunded to the holders of these units as a return of capital. Being capital it is not liable to income tax but must be deducted from the cost of the units for capital gains tax purposes.

37

Epworth Corporate Bond Fund for Charities

Statement of total return

Statement of total return
For the year ended 31 October 2020
31.10.20 31.10.19*
Note £'000s £'000s
Income: net capitalgains 2 2,685 5,024
Income: revenue 3 2,178 1,234
Expenses 4 (233) (130)
Taxation 5 - -
Net revenue after taxation 1,945 1,104
Total return before distributions 4,630 6,128
Distributions 6 (1,949) (1,095)
Change in net assets attributable to unitholders from investment activities 2,681 5,033

Statement of change in net assets attributable to unitholders

For the year ended 31 October 2020
31.10.20 31.10.19*
£'000s £'000s
Opening net assets attributable to unitholders 132,250 -
Amounts receivable on issue of units 20,815 12,999
Amounts receivable on in-specie transfer** - 129,572
Amountspayable on cancellation of units (38,999) (15,354)
114,066 127,217
Dilution adjustment 293 -
Change in net assets attributable to unitholders from investment activities 2,681 5,033
Retained distributions on accumulation units 2 -
Closingnet assets attributable to unitholders 117,042 132,250

Balance sheet

Balance sheet
As at 31 October 2020
31.10.20 31.10.19
Note £'000s £'000s
Assets
Investments 115,078 128,179
Current assets:
Debtors 7 1,814 2,072
Cash and bank balances 8 4,947 2,618
Total assets 121,839 132,869
Liabilities
Creditors:
Distributions payable (459) (531)
Other creditors 9 (4,338) (88)
Total liabilities (4,797) (619)
Net assets attributable to unitholders 117,042 132,250

Balance sheet approved and signed on behalf of the Manager by:

David Palmer, Director Marina Phillips, Secretary 24 December 2020 24 December 2020

38

Epworth Corporate Bond Fund for Charities

Comparative table

Comparative table
Income units
31.10.20 31.10.19^
Change in net assetsper unit penceper unit penceper unit
Openingnet asset valueper unit 125.20 120.47
Return before operating charges* 4.99 5.87
Operatingcharges (0.61) (0.30)
Return after operatingcharges* 4.38 5.57
Distributions on income units (1.60) (0.84)
Closingnet asset valueper unit 127.98 125.20
* after direct transaction costs of (pence per unit): 0.02 0.01
Performance
Return after charges 3.50% 4.62%
Other information
Closing net asset value (£'000s) 18,648 21,563
Closing number of units 14,571,316 17,223,065
Operating charges 0.48% 0.46%
Direct transaction costs 0.01% 0.01%
Prices(penceper unit)+
Highest unit price (ofer) 131.35 127.81
Lowest unitprice(bid) 117.50 119.96

The return after charges has been calculated in accordance with the Statement of Recommended Practice for UK Authorised Funds' prescribed calculation methodology. This is for financial statement reporting purposes only and differs from the Sub-fund’s performance disclosed in the Report of the Investment Manager.

39

Epworth Corporate Bond Fund for Charities

Comparative table

Comparative table
Accumulation units
31.10.20 31.10.19^
Change in net assetsper unit penceper unit penceper unit
Openingnet asset valueper unit 125.62 125.12
Return before operating charges* 5.01 0.65
Operatingcharges (0.62) (0.15)
Return after operatingcharges* 4.39 0.50
Distributions on accumulation units (1.60) (0.42)
Retained distributions on accumulation units 1.60 0.42
Closingnet asset valueper unit 130.01 125.62
* after direct transaction costs of (pence per unit): 0.02 0.01
Performance
Return after charges 3.49% 0.40%
Other information
Closing net asset value (£'000s) 136 141
Closing number of units 104,715 111,909
Operating charges 0.48% 0.46%
Direct transaction costs 0.01% 0.01%
Prices(penceper unit)+
Highest unit price (ofer) 132.78 127.81
Lowest unitprice(bid) 118.27 124.09

The return after charges has been calculated in accordance with the Statement of Recommended Practice for UK Authorised Funds' prescribed calculation methodology. This is for financial statement reporting purposes only and differs from the Sub-fund’s performance disclosed in the Report of the Investment Manager.

40

Epworth Corporate Bond Fund for Charities

Comparative table

Comparative table
CFB Income units
31.10.20 31.10.19^
Change in net assetsper unit penceper unit penceper unit
Openingnet asset valueper unit 125.21 120.47
Return before operating charges* 5.00 5.88
Operatingcharges (0.17) (0.09)
Return after operatingcharges* 4.83 5.79
Distributions on income units (2.04) (1.05)
Closingnet asset valueper unit 128.00 125.21
* after direct transaction costs of (pence per unit): 0.02 0.01
Performance
Return after charges 3.86% 4.81%
Other information
Closing net asset value (£'000s) 98,258 110,546
Closing number of units 76,763,686 88,288,181
Operating charges 0.13% 0.11%
Direct transaction costs 0.01% 0.01%
Prices(penceper unit)+
Highest unit price (ofer) 131.46 127.89
Lowest unitprice(bid) 117.56 119.97

The return after charges has been calculated in accordance with the Statement of Recommended Practice for UK Authorised Funds' prescribed calculation methodology. This is for financial statement reporting purposes only and differs from the Sub-fund’s performance disclosed in the Report of the Investment Manager.

41

Epworth Corporate Bond Fund for Charities

Portfolio of investments

Portfolio of investments
As at 31 October 2020
Market value Total net assets
Holding £'000s %
Government Bonds (31.10.19 - 3.04%) 3.53
Kreditanstalt fuer Wiederaufbau 0.875% 15/09/2026 £4,000,000 4,136 3.53
Public Authorities (31.10.19 - 14.51%) 13.99
Bank Nederlandse Gemeenten 1% 17/06/2022 £1,800,000 1,822 1.56
Bank Nederlandse Gemeenten 5.2% 07/12/2028 £1,900,000 2,582 2.21
Deutsche Bahn Finance 3.125% 24/07/2026 £3,000,000 3,427 2.93
Nederlandse Waterschapsbk 5.375% 07/06/2032 £2,000,000 3,005 2.57
Temasek Financial 4.625% 26/07/2022 £2,055,000 2,200 1.88
Transport for London 4% 12/09/2033 £2,000,000 2,642 2.26
Transport for London 4% 07/04/2064 £400,000 674 0.58
Supranational Bonds (31.10.19 - 4.32%) 4.84
European Bank for Reconstruction 1.25% 15/12/2022 £1,600,000 1,637 1.40
European Investment Bank 3.75% 07/12/2027 £250,000 310 0.26
IBRD 4.875% 07/12/2028 £2,000,000 2,691 2.30
International Finance Corporation 1.25% 15/12/2023 £1,000,000 1,035 0.88
Corporate Bonds (31.10.19 - 75.05%) 75.96
Aegon 6.125% 15/12/2031 £530,000 771 0.66
Aegon 6.625% 16/12/2039 £633,000 1,091 0.93
Apple 3.05% 31/07/2029 £3,300,000 3,963 3.39
Astrazeneca 5.75% 13/11/2031 £700,000 1,038 0.89
Bank of Scotland 4.875% 20/12/2024 £300,000 354 0.30
Barclays Bank 4.25% 12/01/2022 £500,000 524 0.45
Cadent Finance 2.625% 22/09/2038 £2,000,000 2,149 1.84
Centrica 4.25% 12/09/2044 £1,300,000 1,721 1.47
Commonwealth Bank of Australia 3% 04/09/2026 £3,000,000 3,399 2.90
Cooperatieve Rabobank 4.55% 30/08/2029 £350,000 456 0.39
Deutsche Bahn 2.75% 20/06/2022 £700,000 728 0.62
East Japan Railway 4.5% 25/01/2036 £300,000 428 0.37
East Japan Railway 4.75% 08/12/2031 £1,250,000 1,728 1.48
East Japan Railway 4.875% 14/06/2034 £400,000 577 0.49
East Japan Railway 5.25% 22/04/2033 £950,000 1,395 1.19
Edinbugh Investment Trust 7.75% 30/09/2022 £1,000,000 1,112 0.95
Électricité de France 6.125% 02/06/2034 £1,550,000 2,304 1.97
Equinor 6.875% 11/03/2031 £1,400,000 2,165 1.85
GlaxoSmithKline 3.375% 20/12/2027 £1,300,000 1,538 1.31
GlaxoSmithKline 6.375% 09/03/2039 £850,000 1,484 1.27
HSBC Bank 5.75% 20/12/2027 £885,000 1,086 0.93
IBM Corporation 2.625% 05/08/2022 £2,500,000 2,597 2.22
Johnson & Johnson 5.5% 06/11/2024 £1,000,000 1,203 1.03
JPMorgan Chase & Co 3.5% 18/12/2026 £350,000 408 0.35
Land Securities Capital Markets 1.974% 08/02/2026 £1,859,000 1,905 1.63
Land Securities Capital Markets 2.375% 29/03/2029 £1,000,000 1,058 0.90
Legal & General Finance 5.875% 11/12/2031 £250,000 363 0.31
Legal & General Finance 5.875% 05/04/2033 £530,000 783 0.67
Lloyds Banking Group 4.875% 30/03/2027 £2,300,000 2,914 2.49
Lloyds Banking Group 5.125% 07/03/2025 £1,000,000 1,201 1.03
Lloyds Banking Group 6% 08/02/2029 £1,000,000 1,417 1.21
Mercantile Investment Trust 6.125% 25/02/2030 £100,000 137 0.12

42

Epworth Corporate Bond Fund for Charities

Portfolio of investments

Portfolio of investments
As at 31 October 2020
Market value Total net assets
Holding £'000s %
Merchants Trust 5.875% 20/12/2029 £250,000 319 0.27
Monks Investment 6.375% 01/03/2023 £550,000 586 0.50
National Australia Bank 3% 04/09/2026 £1,900,000 2,157 1.84
National Australia Bank 5.125% 09/12/2021 £1,245,000 1,310 1.12
National Grid Electricity Transmission 2.75% 06/02/2035 £1,320,000 1,535 1.31
Nationwide Building Society 3.25% 20/01/2028 £1,500,000 1,737 1.48
Nationwide Building Society 4.25% IL 23/02/2024 £250,000 745 0.64
Nationwide Building Society 5.625% 28/01/2026 £1,000,000 1,263 1.08
Nestle Holdings 1.75% 09/12/2020 £1,500,000 1,502 1.28
Nordea Bank 2.375% 02/06/2022 £500,000 516 0.44
Peel Land & Property Investments 8.375% 30/04/2040 £785,952 826 0.71
Rabobank Nederland 5.25% 23/05/2041 £1,850,000 3,053 2.61
Rabobank Nederland 5.375% 03/08/2060 £200,000 405 0.35
Royal Bank of Canada 1.125% 22/12/2021 £700,000 707 0.60
Santander UK 5.125% 14/04/2021 £2,150,000 2,197 1.88
Santander UK 5.75% 02/03/2026 £400,000 509 0.43
Scottish American Investment Trust 8% 10/04/2022 £550,000 602 0.51
Scottish Investment Trust 5.75% 17/04/2030 £500,000 668 0.57
Skandinaviska Enskilda 1.25% 05/08/2022 £1,500,000 1,520 1.30
Sovereign Housing Capital 4.768% 01/06/2043 £500,000 781 0.67
Sovereign Housing Capital 5.705% 10/09/2039 £200,000 330 0.28
Svenska Handelsbanken 1.625% 18/06/2022 £1,000,000 1,020 0.87
Svenska Handelsbanken 2.375% 18/01/2022 £500,000 512 0.44
Svenska Handelsbanken 2.75% 05/12/2022 £1,200,000 1,258 1.07
Telefónica Emisiones 5.289% 09/12/2022 £1,500,000 1,643 1.40
Telefonica Emisiones 5.375% 02/02/2026 £1,500,000 1,813 1.55
Toronto Dominion Bank 1% 13/12/2021 £400,000 403 0.34
Toyota Finance Australia 1.625% 11/07/2022 £2,000,000 2,040 1.74
Toyota Motor Credit Corporation 1% 27/09/2022 £1,400,000 1,412 1.21
Unilever 1.875% 15/09/2029 £750,000 821 0.70
United Utilities Water 5% 28/02/2035 £100,000 146 0.12
United Utilities Water 5.625% 20/12/2027 £600,000 796 0.68
United Utilities Water 5.75% 25/03/2022 £500,000 537 0.46
University of Cambridge 2.35% 27/06/2078 £400,000 607 0.52
University of Cambridge 3.75% 17/10/2052 £500,000 833 0.71
University of Manchester 4.25% 04/07/2053 £1,400,000 2,397 2.05
Welcome Trust 4% 09/05/2059 £1,100,000 2,040 1.74
Welcome Trust 4.625% 25/07/2036 £700,000 1,086 0.93
Welcome Trust 4.75% 28/05/2021 £400,000 410 0.35
Westpac Banking Corporation 1% 30/06/2022 £700,000 708 0.60
Westpac Banking Corporation 2.125% 02/05/2025 £120,000 128 0.11
Westpac Banking Corporation 2.625% 14/12/2022 £1,000,000 1,042 0.89
Portfolio of investments 115,078 98.32
Net other assets 1,964 1.68
Net assets 117,042 100.00

Unless otherwise stated, all investments are approved securities being either officially listed in a member state or traded on or under the rules of an eligible securities market.

43

Epworth Corporate Bond Fund for Charities

Credit ratings

Credit ratings
As at 31 October 2020
Market value Portfolio
£'000s %
Investment grade 110,220 95.78
Unrated 4,858 4.22
Total investment in bonds 115,078 100.00

44

Epworth Corporate Bond Fund for Charities

Summary of material portfolio changes

Summary of material portfolio changes
For the year ended 31 October 2020
Cost
£'000s
Purchases
European Investment Bank 3.75% 07/12/2027
3,624
Apple 3.05% 31/07/2029
1,889
National Australia Bank 3% 04/09/2026
1,706
Lloyds Banking Group 6% 08/02/2029
1,416
Lloyds Banking Group 4.875% 30/03/2027
1,266
GlaxoSmithKline 3.375% 20/12/2027
1,157
Nationwide Building Society 4.25% IL 23/02/2024
811
European Bank for Reconstruction 1.25% 15/12/2022
610
Welcome Trust 4% 09/05/2059
190
12,669
Otherpurchases
-
Totalpurchases
12,669
Proceeds
£'000s
Sales
European Investment Bank 3.75% 07/12/2027
4,264
Transport For London 2.125% 24/04/2025
2,318
Lloyds Banking Group 5.125% 07/03/2025
1,690
GlaxoSmithKline 6.375% 09/03/2039
1,467
Astrazeneca 5.75% 13/11/2031
1,376
Barclays 3.25% 17/01/2033
1,370
Nationwide Building Society 5.625% 28/01/2026
1,251
Cooperatieve Rabobank 4.55% 30/08/2029
1,236
Apple 3.05% 31/07/2029
1,164
JPMorgan Chase & Co3.5% 18/12/2026
1,129
17,265
Other sales
9,576
Total sales
26,841

45

Epworth Corporate Bond Fund for Charities

Notes to the financial statements

1. Accounting policies

(a) Basis of accounting

The financial statements have been prepared under the historical cost basis, as modified by the revaluation of investments and in compliance with Financial Reporting Standard 102 (FRS102) and in accordance with the Statement of Recommended Practice (SORP) for financial statements of Authorised Funds issued by The Investment Association in May 2014 (and amended in June 2017), the Charities Act 2011 and the relevant scheme of Charity Commissioners.

Unless otherwise stated all accounting policies are consistent with those of the prior year.

Judgements in applying accounting policies and key sources of estimation uncertainty

The Manager does not consider that there were any significant areas of estimation uncertainty or application of critical judgements.

(b) Basis of valuation

The quoted investments of the Sub-fund have been valued at bid dealing prices as at close of business on 30 October 2020, the last valuation point in the accounting year, in accordance with the Trust Deed.

(c) Recognition of income

Interest from bank deposits are accounted for on a receipts basis. Interest receivable from debt securities is accounted for on an effective interest rate basis. Accrued interest purchased or sold is excluded from the cost of the security and is accounted for as revenue.

(d) Expenses

Expenses are accounted for on an accruals basis. Expenses of the Subfund are charged against revenue, except for the costs associated with the purchase and sale of investments, which are charged to capital.

(e) Distribution policy

Revenue produced by the Sub-fund's investments accumulates during each accounting period. If, at the end of each accounting period, revenue exceeds expenses, the net revenue of the Sub-fund is available to be distributed/accumulated to unitholders.

(f) Foreign exchange

Transactions in foreign currencies during the year are translated into sterling (the functional currency of the Sub-fund), at the rates of exchange ruling on the transaction date. Amounts held in foreign currencies have been translated at the rate of exchange ruling at close of business, 30 October 2020, the last valuation point in the accounting year.

(g) Apportionment to multiple unit classes

With the exception of the Manager's periodic charge, the allocation of revenue and expenses to each unit class is based upon the proportion of the Sub-fund's assets attributable to each unit class on the day the revenue is earned or the expense is suffered. The Manager's periodic charge is specific to each unit class. Consequently, the revenue available to distribute for each unit class will differ.

2. Net gains on investments

The net capital gains during the year/period comprise:

30.04.19 to
31.10.20
31.10.19
£'000s
£'000s
Unrealised gains on non-derivative securities 1,764
4,750
Realisedgains on non-derivative securities 921
274
Netgains on investments 2,685 5,024

3. Revenue

3.
Revenue
30.04.19 to
31.10.20
31.10.19
£'000s
£'000s
Interest on debt securities 2,128
1,226
Bank interest 50
8
Total revenue 2,178
1,234
4. Expenses
30.04.19 to
31.10.20
31.10.19
£'000s
£'000s
Payable to the Manager or associates of the Manager and agents of
either of them:
Manager's periodic charge 69
38
Registration fees 26
5
95 43
Payable to the Corporate Trustee or associates of the Trustee and
agents of either of them:
Corporate Trustee's fees 79
48
Safe custodyfees 14 4
93 52
Auditor's fee 15
11
Other expenses 30
24
45 35
Total expenses 233 130

5. Taxation

The Sub-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.

30.04.19
31.10.20 to 31.10.19
£'000s £'000s
Taxation - -

6. Distributions

Distributions take account of income received on creation of units and income deducted on the cancellation of units, and comprise:

30.04.19 to
31.10.20
31.10.19
£'000s
£'000s
31 January 561
-
30 April 452
-
31 July 438
565
31 October 459 532
1,910
1,097
Income deducted on cancellation of units 82
27
Income received on creation of units (43) (29)
Net distribution for theyear/period 1,949 1,095
Net revenue after taxation 1,945
1,104
Movement of undistributed revenue 4 (9)
Net distribution for theyear/period 1,949 1,095

46

Epworth Corporate Bond Fund for Charities

Notes to the financial statements

7.
Debtors
31.10.20 31.10.19
£'000s £'000s
Accrued income 1,814 2,072
Total debtors 1,814 2,072
8.
Cash and bank balances
31.10.20 31.10.19
£'000s £'000s
Afrmative Deposit Fund for Charities 4,943 2,613
Cash at bank 4 5
Total cash and bank balances 4,947 2,618
9.
Other creditors
31.10.20 31.10.19
£’000s £'000s
Amounts payable on cancellation of units 4,285 -
Accrued expenses 53 88
Total other creditors 4,338 88

10. Reconciliation of units

CFB
Income Accum
Income
units units
units
Opening number of units
at beginning of year 01.11.19 17,223,065 111,909
88,288,181
Units issued in year 1,277,703 603
15,171,440
Units cancelled inyear (3,929,452) (7,797) (26,695,935)
Closing number of units
at end ofyear31.10.20 14,571,316 104,715 76,763,686

11. Financial instruments

In accordance with the investment objective, the Sub-fund holds certain financial instruments. These comprise:

The main risks arising from the Sub-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 period.

Market price risk

Market price risk arises mainly from uncertainty about future prices of financial instruments held. It represents the potential loss the Subfund might suffer through holding market positions in the face of price movements. The Sub-fund's investment portfolio is exposed to market fluctuations which are monitored by the Manager in pursuit of the investment objectives and policies. Adherence to investment guidelines and to investment and borrowing powers set out in the Trust Deed, the Prospectus and in the Collective Investment Schemes Sourcebook ("the Sourcebook") mitigates the risk of excessive exposure to any particular type of security or issuer.

Credit risk

At the balance sheet date some 75.96% (31.10.19: 75.05%) of the Subfund's assets were held in corporate bonds, 4.84% (31.10.19: 4.32%) in supranational bonds, 3.53% (31.10.19: 3.04%) in government bonds and 13.99% (31.10.19: 14.51%) in public authority bonds. Corporate, supranational and government bonds involve the risk that the bond issuer will be unable to meet its liability to pay interest or redeem the bond. The Manager selects bonds taking into account the credit rating, bearing in mind the Sub-fund's objective.

Counterparty risk

The Sub-fund’s transactions in securities expose it to the risk that the counterparty will not deliver the investment for a purchase or the cash for a sale. To minimise this, the Sub-fund only deals with an approved list of brokers maintained by the Manager.

Liquidity risk

The Sub-fund's assets are comprised of mainly readily realisable securities. If insufficient cash is available to finance unitholder redemptions then securities held by the Sub-fund may need to be sold. The risk of low market liquidity, through reduced trading volumes, may affect the ability of the Sub-fund to trade financial instruments at values previously indicated by financial brokers. From time to time, liquidity may also be affected by stock specific or economic events. The Manager has a Liquidity Management Policy designed to monitor the liquidity risk of the Sub-fund and ensure that its investment strategy and liquidity profile allows the Sub-fund to meet its daily redemption obligations.

47

Epworth Corporate Bond Fund for Charities

Notes to the financial statements

Interest rate risk

The Sub-fund's assets are comprised of mainly fixed interest rate securities. There is therefore a risk that the capital value of investments will vary as a result of the market's sentiment regarding future interest rates. Expectations of future rates may result in an increase or decrease in the value of investments held. In general, if interest rates rise the revenue potential of the Sub-fund also rises but the value of fixed interest rate securities will decline. A decline in interest rates will in general have the opposite effect. Any transactions in fixed interest securities must be used in accordance with the investment objective of the Sub-fund and must be deemed by the Manager to be economically appropriate. Regular production of portfolio risk reports highlight concentrations of risk, including interest rate risk, for this Sub-fund.

Interest receivable on bank deposits or payable on bank overdraft positions will be affected by fluctuations in interest rates.

The interest rate profile of the Sub-fund's financial assets and liabilities at 31 October 2020 was:

Financial
Fixed rate assets not
Floating rate
fnancial assets*		 fnancial
assets		 carrying
interest		 Total
Currency £'000s £'000s £'000s £'000s
Sterling 5,773 114,252 1,814 121,839
Total 5,773 114,252 1,814 121,839

12. Commitments and contingent liabilities

There were no commitments or contingent liabilities as at 31 October 2020 (31.10.19: none).

13. Unitholders' funds

There are three unit classes in issue within the Sub-fund. These are Income, Accumulation and CFB Income units. The Manager's periodic charge in respect of these units is expressed as an annual percentage of the value of the property of the Sub-fund attributable to each unit class and is currently 0.35% in respect of Income and Accumulation units and 0% in respect of CFB Income units. Consequently, the level of net revenue attributable to each unit class will differ. Should it be necessary to wind-up the Sub-fund, each unit class will have the same rights as regards to the distribution of the property of the Sub-fund.

14. Related party transactions

The Manager’s periodic charge is paid to Epworth Investment Management Limited, a related party to the Sub-fund. The amounts paid in respect of the Manager's periodic charge are disclosed in note 4. The amount outstanding as at 31 October 2020 was £17,465 (31.10.19: £12,105).

In addition, the Sub-fund placed deposits during the year with the Affirmative Deposit Fund for Charities, a fund managed by Epworth Investment Management Limited. All charges levied for the management of these deposits have been refunded to the Sub-fund by Epworth. There were no other related party transactions during the year.

Financial
liabilities not
carrying
interest Total
Currency £'000s £'000s
Sterling (4,797) (4,797)
Total (4,797) (4,797)

The interest rate profile of the Sub-fund's financial assets and liabilities at 31 October 2019 was:

Financial
Fixed rate assets not
Floating rate
fnancial assets*		 fnancial
assets		 carrying
interest		 Total
Currency £'000s £'000s £'000s £'000s
Sterling 3,769 127,028 2,072 132,869
Total 3,769 127,028 2,072 132,869
Financial
liabilities not
carrying
interest Total
Currency £'000s £'000s
Sterling (619) (619)
Total (619) (619)

48

Epworth Corporate Bond Fund for Charities

Notes to the financial statements

15. Portfolio transaction costs

For the year ended 31 October 2020

15. Portfolio transaction costs
For the year ended 31 October 2020
Other
Value Commissions Taxes expenses Total
£'000s £'000s % £'000s % £'000s % £'000s
Analysis of total purchases costs
Bond transactions 12,664 5 0.04 - - - - 12,669
Total 12,664 5 - - 12,669
Other
Value Commissions Taxes expenses Total
£'000s £'000s % £'000s % £'000s % £'000s
Analysis of total sales costs
Bond transactions 25,250 (13) (0.05) - - - - 25,237
Corporate actions 1,604 - - - - - - 1,604
Total 26,854 (13) - - 26,841
Commissions, taxes and other expenses as a percentage of average net assets:
Commissions 0.01%
Taxes 0.00%
Other expenses 0.00%

For the period ended 31 October 2019

For the period ended 31 October 2019
Other
Value Commissions Taxes expenses Total
£'000s £'000s % £'000s % £'000s % £'000s
Analysis of total purchases costs
Bond transactions 11,140 6 0.05 - - - - 11,146
Corporate actions 126,524 - - - - - - 126,524
Total 137,664 6 - - 137,670
Other
Value Commissions Taxes expenses Total
£'000s £'000s % £'000s % £'000s % £'000s
Analysis of total sales costs
Bond transactions 12,926 (6) (0.05) - - - - 12,920
Corporate actions 700 - - - - - - 700
Total 13,626 (6) - - 13,620
Commissions, taxes and other expenses as a percentage of average net assets:
Commissions 0.01%
Taxes 0.00%
Other expenses 0.00%

Portfolio transaction costs are incurred by the Sub-fund when buying and selling underlying investments. These costs vary depending on the class of investment, country of exchange and method of execution.

These costs can be classified as either direct or indirect transaction costs:

Direct transaction costs: Broker commissions, fees and taxes.

Indirect transaction costs: "Dealing spread" - the difference between buying and selling prices of the underlying investments.

At the balance sheet date, the portfolio dealing spread was 0.71% (31.10.19: 0.67%) being the difference between the respective bid and offer prices for the Sub-fund's investments.

49

Epworth Corporate Bond Fund for Charities

Notes to the financial statements

16. Sensitivity analysis

Interest rate risk sensitivity

Changes in interest rates or changes in expectation of future interest rates may result in an increase or decrease in the the value of the interest bearing assets held. A one percent increase in interest rates (based on current parameters used by the Manager's Investment Risk department) would have the effect of increasing the return and net assets by £8,345,091 (31.10.19: £9,142,710). A one percent decrease would have an equal and opposite effect.

Foreign currency risk sensitivity

As the majority of the Sub-fund's financial assets are in the base currency of the Sub-fund (Sterling), the Sub-fund is only subject to limited exposure to fluctuations in foreign currency and therefore, no sensitivity analysis has been provided.

Price risk sensitivity

A five percent increase in the value of the Sub-fund's portfolio would have the effect of increasing the return and net assets by £5,753,910 (31.10.19: £6,408,967). A five percent decrease would have an equal and opposite effect.

17. Fair value of financial assets and financial liabilities

The fair value of the Sub-fund's investments has been determined using the hierarchy below. This complies with the 'Amendments to FRS102 - Fair value hierarchy disclosures' issued by the Financial Reporting Council in March 2016.

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 3 Inputs that are unobservable (i.e. for which market data is unavailable) for the asset or liability.

For the year ended 31 October 2020

For the year ended 31 October 2020
Category 1 2 3 Total
£'000s £'000s £'000s £'000s
Bonds 23,961 91,117 - 115,078
23,961 91,117 - 115,078
For the period ended 31 October 2019
Category 1 2 3 Total
£'000s £'000s £'000s £'000s
Bonds 28,912 99,267 - 128,179
28,912 99,267 - 128,179

50

Epworth Corporate Bond Fund for Charities

Distribution tables

For the year ended 31 October 2020

First interim distribution in pence per unit

Group 1: units purchased prior to 1 November 2019 Group 2: units purchased 1 November 2019 to 31 January 2020

2020 2019
Net pence per unit paid pence per unit paid
income Equalisation 13Mar 15Mar
Income units
Group 1 0.42 - 0.42 n/a
Group 2 0.20 0.22 0.42 n/a
Accumulation units
Group 1 0.41 - 0.41 n/a
Group 2 0.41 0.00 0.41 n/a
CFB Income units
Group 1 0.53 - 0.53 n/a
Group2 0.36 0.17 0.53 n/a

Second interim distribution in pence per unit

Group 1: units purchased prior to 1 February 2020 Group 2: units purchased 1 February 2020 to 30 April 2020

2020 2019
Net pence per unit paid pence per unit paid
income Equalisation 15Jun 15Jun*
Income units
Group 1 0.39 - 0.39 n/a
Group 2 0.06 0.33 0.39 n/a
Accumulation units
Group 1 0.40 - 0.40 n/a
Group 2 0.19 0.21 0.40 n/a
CFB Income units
Group 1 0.50 - 0.50 n/a
Group2 0.05 0.45 0.50 n/a

51

Epworth Corporate Bond Fund for Charities

Distribution tables

Third interim distribution in pence per unit

Group 1: units purchased prior to 1 May 2020 Group 2: units purchased 1 May 2020 to 31 July 2020

2020 2019
Net pence per unit paid pence per unit paid
income Equalisation 15Sep 13Sep
Income units
Group 1 0.38 - 0.38 0.42
Group 2 0.27 0.11 0.38 0.42
Accumulation units**
Group 1 0.38 - 0.38 n/a
Group 2 0.19 0.19 0.38 n/a
CFB Income units
Group 1 0.49 - 0.49 0.53
Group2 0.30 0.19 0.49 0.53

Final distribution in pence per unit

Group 1: units purchased prior to 1 August 2020 Group 2: units purchased 1 August 2020 to 31 October 2020

2020 2019
Net pence per unit payable pence per unit paid
income Equalisation 15Dec 13Dec
Income units
Group 1 0.41 - 0.41 0.42
Group 2 0.30 0.11 0.41 0.42
Accumulation units
Group 1 0.41 - 0.41 0.42
Group 2 0.41 0.00 0.41 0.42
CFB Income units
Group 1 0.52 - 0.52 0.52
Group2 0.35 0.17 0.52 0.52

** The Accumulation class launched on 2 August 2019.

Equalisation

This applies only to units purchased during the distribution period (Group 2 units). It is the average amount of revenue included in the purchase price of all Group 2 units and is refunded to the holders of these units as a return of capital. Being capital it is not liable to income tax but must be deducted from the cost of the units for capital gains tax purposes.

52

Epworth Sterling Sovereign Bond Fund for Charities

Statement of total return

Statement of total return
For the year ended 31 October 2020
31.10.20 31.10.19*
Note £'000s £'000s
Income: net capitalgains 2 462 1,071
Income: revenue 3 167 103
Expenses 4 (71) (34)
Taxation 5 - -
Net revenue after taxation 96 69
Total return before distributions 558 1,140
Distributions 6 (96) (69)
Change in net assets attributable to unitholders from investment activities 462 1,071

Statement of change in net assets attributable to unitholders

For the year ended 31 October 2020
31.10.20 31.10.19*
£'000s £'000s
Opening net assets attributable to unitholders 15,936 -
Amounts receivable on issue of units 2,905 134
Amounts receivable on in-specie transfer** - 18,672
Amountspayable on cancellation of units (4,232) (3,941)
14,609 14,865
Dilution adjustment 4 -
Change in net assets attributable to unitholders from investment activities 462 1,071
Closingnet assets attributable to unitholders 15,075 15,936

** Represents the value of units created by in-specie transfer of assets during the period.

Balance sheet

As at 31 October 2020

As at 31 October 2020
31.10.20 31.10.19
Note £'000s £'000s
Assets
Investments 14,733 15,699
Current assets:
Debtors 7 77 91
Cash and bank balances 8 501 196
Total assets 15,311 15,986
Liabilities
Creditors:
Distributions payable (25) (30)
Other creditors 9 (211) (20)
Total liabilities (236) (50)
Net assets attributable to unitholders 15,075 15,936

Balance sheet approved and signed on behalf of the Manager by:

David Palmer, Director 24 December 2020

Marina Phillips, Secretary 24 December 2020

53

Epworth Sterling Sovereign Bond Fund for Charities

Comparative table

Comparative table
Income units
31.10.20 31.10.19^
Change in net assetsper unit penceper unit penceper unit
Openingnet asset valueper unit 137.42 129.42
Return before operating charges* 6.14 8.82
Operatingcharges (0.76) (0.31)
Return after operatingcharges* 5.38 8.51
Distributions on income units (0.83) (0.51)
Closingnet asset valueper unit 141.97 137.42
* after direct transaction costs of (pence per unit): 0.02 0.01
Performance
Return after charges 3.92% 6.58%
Other information
Closing net asset value (£'000s) 10,211 12,892
Closing number of units 7,192,622 9,381,572
Operating charges 0.54% 0.43%
Direct transaction costs 0.02% 0.01%
Prices(penceper unit)+
Highest unit price (ofer) 146.69 141.39
Lowest unitprice(bid) 133.97 129.51

The return after charges has been calculated in accordance with the Statement of Recommended Practice for UK Authorised Funds' prescribed calculation methodology. This is for financial statement reporting purposes only and differs from the Sub-fund’s performance disclosed in the Report of the Investment Manager.

54

Epworth Sterling Sovereign Bond Fund for Charities

Comparative table

Comparative table
Accumulation units
31.10.20 31.10.19^
Change in net assetsper unit penceper unit penceper unit
Openingnet asset valueper unit 137.66 137.31
Return before operating charges* 6.16 0.36
Operatingcharges (0.78) (0.01)
Return after operatingcharges* 5.38 0.35
Distributions on accumulation units (0.82) -
Retained distributions on accumulation units 0.82 -
Closingnet asset valueper unit 143.04 137.66
* after direct transaction costs of (pence per unit): 0.02 0.01
Performance
Return after charges 3.91% 0.25%
Other information
Closing net asset value (£'000s) 23 22
Closing number of units 16,106 16,106
Operating charges 0.54% 0.43%
Direct transaction costs 0.02% 0.01%
Prices(penceper unit)+
Highest unit price (ofer) 147.22 137.79
Lowest unitprice(bid) 134.21 136.03

The return after charges has been calculated in accordance with the Statement of Recommended Practice for UK Authorised Funds' prescribed calculation methodology. This is for financial statement reporting purposes only and differs from the Sub-fund’s performance disclosed in the Report of the Investment Manager.

55

Epworth Sterling Sovereign Bond Fund for Charities

Comparative table

Comparative table
CFB Income units
31.10.20 31.10.19^
Change in net assetsper unit penceper unit penceper unit
Openingnet asset valueper unit 137.45 130.06
Return before operating charges* 6.12 8.16
Operatingcharges (0.40) (0.12)
Return after operatingcharges* 5.72 8.04
Distributions on income units (1.17) (0.65)
Closingnet asset valueper unit 142.00 137.45
* after direct transaction costs of (pence per unit): 0.02 0.01
Performance
Return after charges 4.16% 6.18%
Other information
Closing net asset value (£'000s) 4,841 3,022
Closing number of units 3,408,707 2,198,142
Operating charges 0.29% 0.17%
Direct transaction costs 0.02% 0.01%
Prices(penceper unit)+
Highest unit price (ofer) 146.77 141.46
Lowest unitprice(bid) 134.06 129.74

The return after charges has been calculated in accordance with the Statement of Recommended Practice for UK Authorised Funds' prescribed calculation methodology. This is for financial statement reporting purposes only and differs from the Sub-fund’s performance disclosed in the Report of the Investment Manager.

56

Epworth Sterling Sovereign Bond Fund for Charities

Portfolio of investments

Portfolio of investments
As at 31 October 2020
Market value Total net assets
Holding £'000s %
Government Bonds (31.10.19 - 93.99%) 84.31
Kreditanstalt fuer Wiederaufbau 0.875% 15/09/2026 £500,000 517 3.43
Treasury Gilt 0.125% 31/01/2023 £650,000 652 4.32
Treasury Gilt 0.125% 31/01/2028 £600,000 600 3.98
Treasury Gilt 0.625% 07/06/2025 £450,000 464 3.08
Treasury Gilt 0.625% 22/10/2050 £300,000 284 1.88
Treasury Gilt 0.75% 22/07/2023 £375,000 383 2.54
Treasury Gilt 1% 22/04/2024 £425,000 441 2.93
Treasury Gilt 1.25% 22/07/2027 £725,000 782 5.19
Treasury Gilt 1.25% 22/10/2041 £450,000 491 3.26
Treasury Gilt 1.5% 22/01/2021 £375,000 376 2.49
Treasury Gilt 1.5% 22/07/2047 £425,000 494 3.28
Treasury Gilt 1.75% 07/09/2037 £450,000 527 3.50
Treasury Gilt 3.25% 22/01/2044 £685,000 1,041 6.91
Treasury Gilt 3.5% 22/01/2045 £750,000 1,193 7.91
Treasury Gilt 4% 22/01/2060 £185,000 388 2.57
Treasury Gilt 4.25% 07/06/2032 £425,000 612 4.06
Treasury Gilt 4.25% 07/03/2036 £425,000 654 4.34
Treasury Gilt 4.25% 07/12/2040 £450,000 746 4.95
Treasury Gilt 4.25% 07/12/2049 £325,000 615 4.08
Treasury Gilt 4.25% 07/12/2055 £200,000 412 2.73
Treasury Gilt 4.5% 07/09/2034 £440,000 676 4.48
Treasury Gilt 4.75% 07/12/2030 £250,000 362 2.40
Public Authorities (31.10.19 - 0.00%) 7.52
Bank Nederlandse Gemeenten 1.625% 26/08/2025 £500,000 532 3.53
Nederlandse Waterschapsbank 5.375% 07/06/2032 £400,000 601 3.99
Supranational Bonds (31.10.19 - 4.52%) 5.90
International Bank for Reconstruction and Development 1% 21/12/2029 £500,000 522 3.46
International Finance Corporation 1.375% 07/03/2025 £350,000 368 2.44
Portfolio of investments 14,733 97.73
Net other assets 342 2.27
Net assets 15,075 100.00

Unless otherwise stated, all investments are approved securities being either officially listed in a member state or traded on or under the rules of an eligible securities market.

Credit ratings

As at 31 October 2020

Market value Portfolio
£'000s %
Investmentgrade 14,733 100.00
Total investment in bonds 14,733 100.00

57

Epworth Sterling Sovereign Bond Fund for Charities

Summary of material portfolio changes

Summary of material portfolio changes
For the year ended 31 October 2020
Cost
£'000s
Purchases
Treasury Gilt 0.125% 31/01/2023
653
Nederlandse Waterschapsbank 5.375% 07/06/2032
607
Treasury Gilt 0.125% 31/01/2028
603
Bank Nederlandse Gemeenten 1.625% 26/08/2025
523
International Bank for Reconstruction
and Development 1% 21/12/2029
514
Treasury Gilt 1.25% 22/10/2041
505
Treasury Gilt 0.625% 22/10/2050
294
3,699
Otherpurchases
-
Totalpurchases
3,699
Proceeds
£'000s
Sales
Treasury Gilt 0.5% 22/07/2022
708
Treasury Gilt 0.75% 22/07/2023
560
Treasury Gilt 1.75% 07/09/2037
525
Treasury Gilt 4.75% 07/12/2030
507
Treasury Gilt 4.25% 07/06/2032
456
International Finance Corporation 1.375% 07/03/2025
361
Treasury Gilt 2% 22/07/2020
354
Treasury Gilt 4.5% 07/09/2034
303
Treasury Gilt 3.25% 22/01/2044
269
Kreditanstalt fuer Wiederaufbau 0.875% 15/09/2026
253
4,296
Other sales
729
Total sales
5,025

58

Epworth Sterling Sovereign Bond Fund for Charities

Notes to the financial statements

1. Accounting policies

(a) Basis of accounting

The financial statements have been prepared under the historical cost basis, as modified by the revaluation of investments and in compliance with Financial Reporting Standard 102 (FRS102) and in accordance with the Statement of Recommended Practice (SORP) for financial statements of Authorised Funds issued by The Investment Association in May 2014 (and amended in June 2017), the Charities Act 2011 and the relevant scheme of Charity Commissioners.

Unless otherwise stated all accounting policies are consistent with those of the prior year.

Judgements in applying accounting policies and key sources of estimation uncertainty

The Manager does not consider that there were any significant areas of estimation uncertainty or application of critical judgements.

(b) Basis of valuation

The quoted investments of the Sub-fund have been valued at bid dealing prices as at close of business business on 30 October 2020, the last valuation point in the accounting year, in accordance with the Trust Deed.

(c) Recognition of income

Interest from bank deposits are accounted for on a receipts basis. Interest receivable from debt securities is accounted for on an effective interest rate basis. Accrued interest purchased or sold is excluded from the cost of the security and is accounted for as revenue.

(d) Expenses

Expenses are accounted for on an accruals basis. Expenses of the Subfund are charged against revenue, except for the costs associated with the purchase and sale of investments, which are charged to capital.

(e) Distribution policy

Revenue produced by the Sub-fund's investments accumulates during each accounting period. If, at the end of each accounting period, revenue exceeds expenses, the net revenue of the Sub-fund is available to be distributed/accumulated to unitholders.

(f) Foreign exchange

Transactions in foreign currencies during the year are translated into sterling (the functional currency of the Sub-fund), at the rates of exchange ruling on the transaction date. Amounts held in foreign currencies have been translated at the rate of exchange ruling at close of business, 30 October 2020, the last valuation point in the accounting year.

(g) Apportionment to multiple unit classes

With the exception of the Manager's periodic charge, the allocation of revenue and expenses to each unit class is based upon the proportion of the Sub-fund's assets attributable to each unit class on the day the revenue is earned or the expense is suffered. The Manager's periodic charge is specific to each unit class. Consequently, the revenue available to distribute for each unit class will differ.

2. Net gains on investments

The net capital gains during the year/period comprise:

30.04.19 to
31.10.20
31.10.19
£'000s
£'000s
Unrealised gains on non-derivative securities
219
924
Realisedgains on non-derivative securities 243 147
Netgains on investments 462
1,071
3.
Revenue
30.04.19 to
31.10.20
31.10.19
£'000s
£'000s
Interest on debt securities 162
101
Deposit interest 5 2
Total revenue 167 103
4.
Expenses
30.04.19 to
31.10.20
31.10.19
£'000s
£'000s
Payable to the Manager or associates of the Manager and agents of
either of them:
Manager'speriodic charge 28
17
28
17
Payable to the Corporate Trustee or associates of the Trustee and
agents of either of them:
Corporate Trustee's fees 15
8
Safe custodyfees 1
-
16
8
Auditor's fee 2
1
Other expenses 25 8
27 9
Total expenses 71
34

5. Taxation

The Sub-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.

30.04.19 to
31.10.20
31.10.19
£'000s
£'000s
Taxation -
-

59

Epworth Sterling Sovereign Bond Fund for Charities

Notes to the financial statements

6. Distributions

Distributions take account of income received on creation of units and income deducted on the cancellation of units, and comprise:

30.04.19 to
31.10.20
31.10.19
£'000s
£'000s
31 January 31
-
30 April 23
-
31 July 15
36
31 October 25 30
94
66
Income deducted on cancellation of units 3
3
Income received on creation of units (1) -
Net distribution for theyear/period 96
69

7. Debtors

7. Debtors
31.10.20 31.10.19
£'000s £'000s
Accrued income 77 91
Total debtors 77 91
8.
Cash and bank balances
31.10.20 31.10.19
£'000s £'000s
Afrmative Deposit Fund for Charities 494 191
Cash at bank 7 5
Total cash and bank balances 501 196
9.
Other creditors
31.10.20 31.10.19
£'000s £'000s
Amounts payable on cancellation of units 196 -
Accrued expenses 15 20
Total other creditors 211 20
10. Reconciliation of units
CFB
Income Accum Income
units units units
Opening number of units
at beginning of year 01.11.19 9,381,572 16,106 2,198,142
Units issued in year 649,998 - 1,372,001
Units cancelled inyear (2,838,948) - (161,436)
Closing number of units
at end ofyear31.10.20 7,192,622 16,106 3,408,707

11. Financial instruments

In accordance with the investment objective, the Sub-fund holds certain financial instruments. These comprise:

The main risks arising from the Sub-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 period.

Market price risk

Market price risk arises mainly from uncertainty about future prices of financial instruments held. It represents the potential loss the Subfund might suffer through holding market positions in the face of price movements. The Sub-fund's investment portfolio is exposed to market fluctuations which are monitored by the Manager in pursuit of the investment objectives and policies. Adherence to investment guidelines and to investment and borrowing powers set out in the Trust Deed, the Prospectus and in the Collective Investment Schemes Sourcebook ("the Sourcebook") mitigates the risk of excessive exposure to any particular type of security or issuer.

Credit risk

At the balance sheet date some 5.90% (31.10.19: 4.52%) of the Subfund's assets were held in supranational bonds, 84.31% (31.10.19: 93.99%) in government bonds and 7.52% (31.10.19: nil) in Public Authorities. Supranational and government bonds involve the risk that the bond issuer will be unable to meet its liability to pay interest or redeem the bond. The Manager selects bonds taking into account the credit rating, bearing in mind the Sub-fund's objective.

Counterparty risk

The Sub-fund’s transactions in securities expose it to the risk that the counterparty will not deliver the investment for a purchase or the cash for a sale. To minimise this, the Sub-fund only deals with an approved list of brokers maintained by the Manager.

Liquidity risk

The Sub-fund's assets are comprised of mainly readily realisable securities. If insufficient cash is available to finance unitholder redemptions then securities held by the Sub-fund may need to be sold. The risk of low market liquidity, through reduced trading volumes, may affect the ability of the Sub-fund to trade financial instruments at values previously indicated by financial brokers. From time to time, liquidity may also be affected by stock specific or economic events. The Manager has a Liquidity Management Policy designed to monitor the liquidity risk of the Sub-fund and ensure that its investment strategy and liquidity profile allows the Sub-fund to meet its daily redemption obligations.

Interest rate risk

The Sub-fund's assets are comprised of mainly fixed interest rate securities. There is therefore a risk that the capital value of investments will vary as a result of the market's sentiment regarding future interest rates. Expectations of future rates may result in an increase or decrease in the value of investments held. In general, if interest rates rise the revenue potential of the Sub-fund also rises but the value of fixed interest rate securities will decline. A decline in interest rates will in general have the opposite effect. Any transactions in fixed interest securities must be used in accordance with the investment objective of the Sub-fund and must be deemed by the Manager to be economically appropriate. Regular production of portfolio risk reports highlight concentrations of risk, including interest rate risk, for this Sub-fund.

60

Epworth Sterling Sovereign Bond Fund for Charities

Notes to the financial statements

Interest receivable on bank deposits or payable on bank overdraft positions will be affected by fluctuations in interest rates.

The interest rate profile of the Sub-fund's financial assets and liabilities at 31 October 2020 was:

Financial
Fixed rate assets not
Floating rate
fnancial assets*		 fnancial
assets		 carrying
interest		 Total
Currency £'000s £'000s £'000s £'000s
Sterling 501 14,733 77 15,311
Total 501 14,733 77 15,311
Financial
liabilities
Fixed rate not
Floating rate
fnancial liabilities*		 fnancial
liabilities		 carrying
interest		 Total
Currency £'000s £'000s £'000s £'000s
Sterling - - (236) (236)
Total - - (236) (236)

The interest rate profile of the Sub-fund's financial assets and liabilities at 31 October 2019 was:

Financial
Fixed rate assets not
Floating rate
fnancial assets*		 fnancial
assets		 carrying
interest		 Total
Currency £'000s £'000s £'000s £'000s
Sterling 196 15,699 91 15,986
Total 196 15,699 91 15,986
Financial
liabilities
Fixed rate not
Floating rate
fnancial liabilities*		 fnancial
liabilities		 carrying
interest		 Total
Currency £'000s £'000s £'000s £'000s
Sterling - - (50) (50)
Total - - (50) (50)

12. Commitments and contingent liabilities

There were no commitments or contingent liabilities as at 31 October 2020 (31.10.19: none).

13. Unitholders' funds

There are three unit classes in issue within the Sub-fund. These are Income, Accumulation and CFB Income units. The Manager's periodic charge in respect of these units is expressed as an annual percentage of the value of the property of the Sub-fund attributable to each unit class and is currently 0.25% in respect of Income and Accumulation units and 0% in respect of CFB Income units. Consequently, the level of net revenue attributable to each unit class will differ. Should it be necessary to wind-up the Sub-fund, each unit class will have the same rights as regards to the distribution of the property of the Sub-fund.

14. Related party transactions

The Manager’s periodic charge is paid to Epworth Investment Management Limited, a related party to the Sub-fund. The amounts paid in respect of the Manager's periodic charge are disclosed in note 4. The amount outstanding as at 31 October 2020 was £7,081 (31.10.19: £5,248).

In addition, the Sub-fund placed deposits during the year with the Affirmative Deposit Fund for Charities, a fund managed by Epworth Investment Management Limited. All charges levied for the management of these deposits have been refunded to the Sub-fund by Epworth. There were no other related party transactions during the year.

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Epworth Sterling Sovereign Bond Fund for Charities

Notes to the financial statements

15. Portfolio transaction costs

For the year ended 31 October 2020

15. Portfolio transaction costs
For the year ended 31 October 2020
Other
Value Commissions Taxes expenses Total
£'000s £'000s % £'000s % £'000s % £'000s
Analysis of total purchases costs
Bond transactions 3,698 1 0.03 - - - - 3,699
Total 3,698 1 - - 3,699
Other
Value Commissions Taxes expenses Total
£'000s £'000s % £'000s % £'000s % £'000s
Analysis of total sales costs
Bond transactions 4,672 (1) (0.02) - - - - 4,671
Corporate actions 354 - - - - - - 354
Total 5,026 (1) - - 5,025
Commissions,taxes and other expenses as apercentage of average net assets:
Commissions 0.02%
Taxes 0.00%
Other expenses 0.00%

For the period ended 31 October 2019

For the period ended 31 October 2019
Other
Value Commissions Taxes expenses Total
£'000s £'000s % £'000s % £'000s % £'000s
Analysis of total purchases costs
Bond transactions 2,067 1 0.05 - - - - 2,068
In-specie transactions 17,858 - - - - - - 17,858
Total 19,925 1 - - 19,926
Other
Value Commissions Taxes expenses Total
£'000s £'000s % £'000s % £'000s % £'000s
Analysis of total sales costs
Bond transactions 4,932 (1) (0.02) - - - - 4,931
Corporate actions 300 - - - - - - 300
Total 5,232 (1) - - 5,231
Commissions,taxes and other expenses as apercentage of average net assets:
Commissions 0.01%
Taxes 0.00%
Other expenses 0.00%

Portfolio transaction costs are incurred by the Sub-fund when buying and selling underlying investments. These costs vary depending on the class of investment, country of exchange and method of execution.

These costs can be classified as either direct or indirect transaction costs:

Direct transaction costs: Broker commissions, fees and taxes.

Indirect transaction costs: "Dealing spread" - the difference between buying and selling prices of the underlying investments.

At the balance sheet date the portfolio dealing spread was 0.09% (31.10.19: 0.07%) being the difference between the respective bid and offer prices for the Sub-fund's investments.

62

Epworth Sterling Sovereign Bond Fund for Charities

Notes to the financial statements

16. Sensitivity analysis

Interest rate risk sensitivity

Changes in interest rates or changes in expectation of future interest rates may result in an increase or decrease in the value of the interest bearing assets held. A one percent increase in interest rates (based on current parameters used by the Manager's Investment Risk department) would have the effect of increasing the return and net assets by £1,763,260 (31.10.19: £1,743,682). A one percent decrease would have an equal and opposite effect.

Foreign currency risk sensitivity

As all of the Sub-fund's financial assets are in the base currency of the Sub-fund (Sterling), the Sub-fund has no exposure to fluctuations in foreign currency and therefore, no sensitivity analysis has been provided.

Price risk sensitivity

A five percent increase in the value of the Sub-fund's portfolio would have the effect of increasing the return and net assets by £736,658 (31.10.19: £784,975). A five percent decrease would have an equal and opposite effect.

17. Fair value of financial assets and financial liabilities

The fair value of the Sub-fund's investments has been determined using the hierarchy below. This complies with the 'Amendments to FRS102 - Fair value hierarchy disclosures' issued by the Financial Reporting Council in March 2016.

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 3 Inputs that are unobservable (i.e. for which market data is unavailable) for the asset or liability.

For the year ended 31 October 2020

For the year ended 31 October 2020
Category 1 2 3 Total
£'000s £'000s £'000s £'000s
Bonds 14,733 - - 14,733
14,733 - - 14,733
For the period ended 31 October 2019
Category 1 2 3 Total
£'000s £'000s £'000s £'000s
Bonds 15,699 - - 15,699
15,699 - - 15,699

63

Epworth Sterling Sovereign Bond Fund for Charities

Distribution tables

For the year ended 31 October 2020

First interim distribution in pence per unit

Group 1: units purchased prior to 1 November 2019 Group 2: units purchased 1 November 2019 to 31 January 2020

2020 2019
Net pence per unit paid pence per unit paid
income Equalisation 13Mar 15Mar*
Income units
Group 1 0.27 - 0.27 n/a
Group 2 0.13 0.14 0.27 n/a
Accumulation units
Group 1 0.26 - 0.26 n/a
Group 2 0.26 0.00 0.26 n/a
CFB Income units
Group 1 0.34 - 0.34 n/a
Group2 0.34 0.00 0.34 n/a

Second interim distribution in pence per unit

Group 1: units purchased prior to 1 February 2020 Group 2: units purchased 1 February 2020 to 30 April 2020

2020 2019
Net pence per unit paid pence per unit paid
income Equalisation 15Jun 15Jun*
Income units
Group 1 0.22 - 0.22 n/a
Group 2 0.10 0.12 0.22 n/a
Accumulation units
Group 1 0.22 - 0.22 n/a
Group 2 0.22 0.00 0.22 n/a
CFB Income units
Group 1 0.31 - 0.31 n/a
Group2 0.31 0.00 0.31 n/a

64

Epworth Sterling Sovereign Bond Fund for Charities

Distribution tables

Third interim distribution in pence per unit

Group 1: units purchased prior to 1 May 2020 Group 2: units purchased 1 May 2020 to 31 July 2020

2020 2019
Net pence per unit paid pence per unit paid
income Equalisation 15Sep 13Sep
Income units
Group 1 0.13 - 0.13 0.27
Group 2 0.09 0.04 0.13 0.27
Accumulation units**
Group 1 0.13 - 0.13 n/a
Group 2 0.13 0.00 0.13 n/a
CFB Income units
Group 1 0.22 - 0.22 0.32
Group2 0.21 0.01 0.22 0.32

Final distribution in pence per unit

Group 1: units purchased prior to 1 August 2020 Group 2: units purchased 1 August 2020 to 31 October 2020

2020 2019
Net pence per unit paid pence per unit paid
income Equalisation 15Dec 13Dec
Income units
Group 1 0.21 - 0.21 0.24
Group 2 0.18 0.03 0.21 0.24
Accumulation units**
Group 1 0.21 - 0.21 0.00
Group 2 0.21 0.00 0.21 0.00
CFB Income units
Group 1 0.30 - 0.30 0.33
Group2 0.26 0.04 0.30 0.33

** The Accumulation units launched on 26 October 2019.

Equalisation

This applies only to units purchased during the distribution period (Group 2 units). It is the average revenue included in the purchase price of all Group 2 units and is refunded to the holders of these units as a return of capital. Being capital it is not liable to income tax but must be deducted from the cost of the units for capital gains tax purposes.

65

Epworth Multi-Asset Fund for Charities

Statement of total return

Statement of total return
For the year ended 31 October 2020
31.10.20 31.10.19*
Note £'000s £'000s
Income: net capital(losses)/gains 2 (1,420) 313
Income: revenue 3 666 400
Expenses 4 (64) (21)
Taxation 5 - -
Net revenue after taxation 602 379
Total (defcit)/return before distributions (818) 692
Distributions 6 (600) (379)
Change in net assets attributable to unitholders from investment activities (1,418) 313

Statement of change in net assets attributable to unitholders

For the year ended 31 October 2020
31.10.20 31.10.19*
£'000s £'000s
Opening net assets attributable to unitholders 30,380 -
Amounts receivable on issue of units 450 1,900
Amounts receivable on in-specie transfers ** - 28,443
Amountspayable on cancellation of units (1,593) (276)
29,237 30,067
Dilution adjustment 8 -
Change in net assets attributable to unitholders from investment activities (1,418) 313
Closingnet assets attributable to unitholders 27,827 30,380

** Represents the value of units created by in-specie transfer of assets during the period.

Balance sheet

Balance sheet
As at 31 October 2020
31.10.20 31.10.19
Note £'000s £'000s
Assets
Investments 27,832 29,711
Current assets:
Debtors 7 11 220
Cash and bank balances 8 313 702
Total assets 28,156 30,633
Liabilities
Creditors:
Distributions payable (136) (234)
Other creditors 9 (193) (19)
Total liabilities (329) (253)
Net assets attributable to unitholders 27,827 30,380

Balance sheet approved and signed on behalf of the Manager by:

David Palmer, Director 24 December 2020

Marina Phillips, Secretary 24 December 2020

66

Epworth Multi-Asset Fund for Charities

Comparative table

Comparative table
Income units
31.10.20 31.10.19^
Change in net assetsper unit penceper unit penceper unit
Openingnet asset valueper unit 101.49 103.40
Return before operating charges* (2.41) (0.96)
Operatingcharges (0.79) (0.20)
Return after operatingcharges* (3.20) (1.16)
Distributions on income units (1.46) (0.75)
Closingnet asset valueper unit 96.83 101.49
* after direct transaction costs of (pence per unit): 0.00 0.00
Performance
Return after charges (3.15)% (1.12)%
Other information
Closing net asset value (£'000s) 1,261 1,672
Closing number of units 1,302,440 1,647,396
Operating charges** 1.00% 0.88%
Direct transaction costs 0.00% 0.00%
Prices(penceper unit)+
Highest unit price (ofer) 107.86 103.10
Lowest unitprice(bid) 82.47 100.30

The return after charges has been calculated in accordance with the Statement of Recommended Practice for UK Authorised Funds' prescribed calculation methodology. This is for financial statement reporting purposes only and differs from the Sub-fund’s performance disclosed in the Report of the Investment Manager.

67

Epworth Multi-Asset Fund for Charities

Comparative table

Comparative table
Accumulation units
31.10.20^
Change in net assetsper unit penceper unit
Openingnet asset valueper unit 100.16
Return before operating charges* (1.68)
Operatingcharges (0.49)
Return after operatingcharges* (2.17)
Distributions on accumulation units (1.14)
Retained distributions on accumulation units 1.14
Closingnet asset valueper unit 97.99
* after direct transaction costs of (pence per unit): 0.00
Performance
Return after charges (2.17)%
Other information
Closing net asset value (£'000s) 33
Closing number of units 33,280
Operating charges 0.96%
Direct transaction costs 0.00%
Prices(penceper unit)+
Highest unit price (ofer) 102.95
Lowest unitprice(bid) 82.51

The return after charges has been calculated in accordance with the Statement of Recommended Practice for UK Authorised Funds' prescribed calculation methodology. This is for financial statement reporting purposes only and differs from the Sub-fund’s performance disclosed in the Report of the Investment Manager.

68

Epworth Multi-Asset Fund for Charities

Comparative table

Comparative table
CFB Income units
31.10.20 31.10.19^
Change in net assetsper unit penceper unit penceper unit
Openingnet asset valueper unit 101.18 100.00
Return before operating charges* (2.41) 2.55
Operatingcharges (0.19) (0.07)
Return after operatingcharges* (2.60) 2.48
Distributions on income units (2.08) (1.30)
Closingnet asset valueper unit 96.50 101.18
* after direct transaction costs of (pence per unit): 0 .00 0.00
Performance
Return after charges (2.57)% 2.48%
Other information
Closing net asset value (£'000s) 26,533 28,708
Closing number of units 27,494,538 28,372,704
Operating charges** 0.40% 0.30%
Direct transaction costs 0.00% 0.00%
Prices(penceper unit)+
Highest unit price (ofer) 107.67 104.19
Lowest unitprice(bid) 82.29 99.65

The return after charges has been calculated in accordance with the Statement of Recommended Practice for UK Authorised Funds' prescribed calculation methodology. This is for financial statement reporting purposes only and differs from the Sub-fund’s performance disclosed in the Report of the Investment Manager.

69

Epworth Multi-Asset Fund for Charities

Portfolio of investments

Portfolio of investments
As at 31 October 2020
Market value Total net assets
Holding £'000s %
Equity Investment Instruments (31.10.19 - 1.83%) 1.60
GCP Infrastructure Investments 403,370 444 1.60
Financial Services (31.10.19 - 2.53%) 1.84
International Public Partnership 305,672 513 1.84
Non-Equity Investment Instruments (31.10.19 - 93.44%) 94.74
Epworth Climate Stewardship Fund for Charities 3,245,625 3,107 11.17
Epworth Corporate Bond Fund for Charities 2,206,907 2,829 10.17
Epworth Global Equity Fund for Charities 8,428,695 9,425 33.87
Epworth UK Equity Fund for Charities 5,189,616 6,986 25.10
iShares MSCI World ESG Enhanced ETF 204,940 899 3.23
Property Income Trust for Charities Fund 3,803,692 3,118 11.20
Real Estate & Investment Services (31.10.19 - 0.00%) 1.84
Greencoat UK Wind 380,000 511 1.84
Portfolio of investments 27,832 100.02
Net other liabilities (5) (0.02)
Net assets 27,827 100.00

Unless otherwise stated, all investments are approved securities being either officially listed in a member state or traded on or under the rules of an eligible securities market.

70

Epworth Multi-Asset Fund for Charities

Summary of material portfolio changes

Summary of material portfolio changes
For the year ended 31 October 2020
Cost
£'000s
Purchases
Epworth Climate Stewardship Fund for Charities
3,240
UBS ETF(IE) MSCI UK IMI Socially Responsible
1,342
Epworth UK Equity Fund for Charities
920
iShares MSCI World ESG Enhanced ETF
911
Greencoat UK Wind
498
Property Income Trust for Charities Fund
240
Epworth Global Equity Fund for Charities
240
Epworth Corporate Bond Fund for Charities
150
Totalpurchases
7,541
Proceeds
£'000s
Sales
Epworth UK Equity Fund for Charities
2,790
Epworth Global Equity Fund for Charities
2,100
UBS ETF(IE) MSCI UK IMI Socially Responsible
1,180
Epworth Corporate Bond Fund for Charities
978
Renewables Infrastructure Group
569
International Public Partnership
300
Property Income Trust for Charities Fund
157
GCP Infrastructure Investments
35
Total sales
8,109

71

Epworth Multi-Asset Fund for Charities

Notes to the financial statements

1. Accounting policies

(a) Basis of accounting

The financial statements have been prepared under the historical cost basis, as modified by the revaluation of investments and in compliance with Financial Reporting Standard 102 (FRS102) and in accordance with the Statement of Recommended Practice (SORP) for financial statements of Authorised Funds issued by The Investment Association in May 2014 (and amended in June 2017), the Charities Act 2011 and the relevant scheme of Charity Commissioners.

Unless otherwise stated all accounting policies are consistent with those of the prior year.

Judgements in applying accounting policies and key sources of estimation uncertainty

The Manager does not consider that there were any significant areas of estimation uncertainty or application of critical judgements.

(b) Basis of valuation

The quoted investments of the Sub-fund have been valued at bid dealing prices as at close of business on 30 October 2020, the last valuation point in the accounting year, in accordance with the Trust Deed. Investments in collective investment schemes have been valued at bid price for dual priced funds or the single price for single priced funds. Where these investments are managed by the Manager or an associate of the Manager, the holdings have been valued at the cancellation price for dual priced funds or the single price for single priced funds. This price is the last available published price at the year end.

(c) Recognition of income

Dividends on ordinary stocks and distributions are credited to revenue when the securities are quoted ex-dividend. Interest on bank deposits are accounted for on a receipts basis. 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.

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

The underlying circumstances behind a special dividend, share buyback or additional share issue are reviewed on a case by case basis in determining whether the amount is revenue or capital in nature. Amounts recognised as revenue form part of the distribution.

(e) Expenses

Expenses are accounted for on an accruals basis. Expenses of the Subfund are charged against revenue, except for the costs associated with the purchase and sale of investments, which are charged to capital.

attributable to each unit class on the day the revenue is earned or the expense is suffered. The Manager's periodic charge is specific to each unit class. Consequently, the revenue available to distribute for each unit class will differ.

2. Net capital (losses)/gains on investments

The net capital (losses)/gains during the year/period comprise:

11.06.19 to
31.10.20 31.10.19
£'000s £'000s
Unrealised (losses)/gains on non-derivative securities (1,057) 255
Realised(losses)/gains on non-derivative securities
(363)		 58
Net capital(losses)/gains on investments (1,420) 313

3. Revenue

3. Revenue
11.06.19 to
31.10.20 31.10.19
£'000s £'000s
UK dividends 416 279
UK REIT property income distributions 125 66
Overseas dividends 74 23
Interest on debt securities 47 31
Bank interest 4 1
Total revenue 666 400

4. Expenses

4. Expenses
11.06.19 to
31.10.20 31.10.19
£'000s £'000s
Payable to the Manager or associates of the Manager and agents of
either of them:
Manager's periodic charge 9 2
Registration fees 10 3
19 5
Payable to the Corporate Trustee or associates of the Trustee and
agents of either of them:
Corporate Trustee's fees 24 9
24 9
Auditor's fee 4 2
Other expenses 17 5
21 7
Total expenses 64 21

(f) Distribution policy

Revenue produced by the Sub-fund's investments accumulates during each accounting period. If, at the end of each accounting period, revenue exceeds expenses, the net revenue of the Sub-fund is available to be distributed/accumulated to unitholders.

(g) Foreign exchange

Transactions in foreign currencies during the year are translated into sterling (the functional currency of the Sub-fund), at the rates of exchange ruling on the transaction date. Amounts held in foreign currencies have been translated at the rate of exchange ruling at close of business, 30 October 2020, the last valuation point in the accounting year.

5. Taxation

The Sub-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.

11.06.19 to
31.10.20 31.10.19
£’000s £'000s
Taxation - -

(h) Apportionment to multiple unit classes

With the exception of the Manager's periodic charge, the allocation of revenue and expenses to each

unit class is based upon the proportion of the Sub-fund's assets

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Epworth Multi-Asset Fund for Charities

Notes to the financial statements

6. Distributions

Distributions take account of income received on creation of units and income deducted on the cancellation of units, and comprise:

11.06.19 to
31.10.20 31.10.19
£'000s £'000s
31 January 153 -
30 April 183 -
31 July 127 147
31 October 136 234
599 381
Income deducted on cancellation of units 1 -
Income received on creation of units - (2)
Net distribution for theyear/period 600 379
Net revenue after taxation 602 379
Movement of undistributed revenue (2) -
Net distribution for theyear/period 600 379

7. Debtors

7.
Debtors
31.10.20 31.10.19
£'000s £'000s
Accrued income 11 220
Total debtors 11 220
8.
Cash and bank balances
31.10.20 31.10.19
£'000s £'000s
Afrmative Deposit Fund for Charities 312 693
Cash at bank 1 9
Total cash and bank balances 313 702
9. Other creditors
31.10.20 31.10.19
£'000s £'000s
Amounts payable on cancellation of units 40 -
Purchases awaiting settlement 140 -
Accrued expenses 13 19
Total other creditors 193 19

10. Reconciliation of units

CFB
Income Accum Income
units units units
Opening number of units
at beginning of year 01.11.19 1,647,396 - 28,372,704
Units issued in year 211,662 33,280 203,607
Units cancelled inyear (556,618) - (1,081,773)
Closing number of units
at end ofyear31.10.20 1,302,440 33,280 27,494,538

11. Financial instruments

In accordance with the investment objective, the Sub-fund holds certain financial instruments. These comprise:

The main risks arising from the Sub-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 period.

Market price risk

Market price risk arises mainly from uncertainty about future prices of financial instruments held. It represents the potential loss the Subfund might suffer through holding market positions in the face of price movements. The Sub-fund's investment portfolio is exposed to market fluctuations which are monitored by the Manager in pursuit of the investment objectives and policies. Adherence to investment guidelines and to investment and borrowing powers set out in the Trust Deed, the Prospectus and in the Collective Investment Schemes Sourcebook ("the Sourcebook") mitigates the risk of excessive exposure to any particular type of security or issuer.

Counterparty risk

The Sub-fund’s transactions in securities expose it to the risk that the counterparty will not deliver the investment for a purchase or the cash for a sale. To minimise this, the Sub-fund only deals with an approved list of brokers maintained by the Manager.

Liquidity risk

The Sub-fund's assets are comprised of mainly readily realisable securities. If insufficient cash is available to finance unitholder redemptions then securities held by the Sub-fund may need to be sold. The risk of low market liquidity, through reduced trading volumes, may affect the ability of the Sub-fund to trade financial instruments at values previously indicated by financial brokers. From time to time, liquidity may also be affected by stock specific or economic events. The Manager has a Liquidity Management Policy designed to monitor the liquidity risk of the Sub-fund and ensure that its investment strategy and liquidity profile allows the Sub-fund to meet its daily redemption obligations.

Interest rate risk

The majority of the Sub-fund's financial assets are equity shares and other investments which neither pay interest nor have a maturity date.

At the year end 1.12% (31.10.19: 2.31%) of the Sub-fund's assets by value were interest bearing.

Interest receivable on bank deposits or payable on bank overdraft positions will be affected by fluctuations in interest rates.

12. Commitments and contingent liabilities

There were no commitments or contingent liabilities as at 31 October 2020 (31.10.19: none).

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Epworth Multi-Asset Fund for Charities

Notes to the financial statements

13. Unitholders' funds

There are three unit classes in issue within the Sub-fund. These are Income, Accumulation and CFB Income units. The Manager's periodic charge in respect of these units is expressed as an annual percentage of the value of the property of the Sub-fund attributable to each unit class and is currently 0.60% in respect of Income and Accumulation units and 0% in respect of CFB Income units. Consequently, the level of net revenue attributable to each unit class will differ. Should it be necessary to wind-up the Sub-fund, each unit class will have the same rights as regards to the distribution of the property of the Sub-fund.

14. Related party transactions

The Manager’s periodic charge is paid to Epworth Investment Management Limited, a related party to the Sub-fund. The amounts paid in respect of the Manager's periodic charge are disclosed in note 4. The amount outstanding as at 31 October 2020 was £2,104 (31.10.19: £1,373).

In addition, the Sub-fund placed deposits during the year with the Affirmative Deposit Fund for Charities, a fund managed by Epworth Investment Management Limited. All charges levied for the management of these deposits have been refunded to the Sub-fund by Epworth. There were no other related party transactions during the year.

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Epworth Multi-Asset Fund for Charities

Notes to the financial statements

15. Portfolio transaction costs

15. Portfolio transaction costs
For the year ended 31 October 2020
Other
Value Commissions Taxes expenses Total
£'000s £'000s % £'000s % £'000s % £'000s
Analysis of total purchases costs
Equity transactions 498 - - - - - - 498
Pooled investment vehicles 7,042 1 0.01 - - - - 7,043
Total 7,540 1 - - 7,541
Other
Value Commissions Taxes expenses Total
£'000s £'000s % £'000s % £'000s % £'000s
Analysis of total sales costs
Equity transactions 904 - - - - - - 904
Pooled investment vehicles 7,205 - - - - - - 7,205
Total 8,109 - - - 8,109
Commissions,taxes and other expenses as apercentage of average net assets:
Commissions 0.00%
Taxes 0.00%
Other expenses 0.00%

For the period ended 31 October 2019

For the period ended 31 October 2019
Other
Value Commissions Taxes expenses Total
£'000s £'000s % £'000s % £'000s % £'000s
Analysis of total purchases costs
Equity transactions 2,558 1 0.04 - - - - 2,559
Pooled investment vehicles 2,117 - - - - - - 2,117
In-specie transactions 26,495 - - - - - - 26,495
Total 31,170 1 - - 31,171
Other
Value Commissions Taxes expenses Total
£'000s £'000s % £'000s % £'000s % £'000s
Analysis of total sales costs
Equity transactions 743 - - - - - - 743
Pooled investment vehicles 1,031 - - - - - - 1,031
Total 1,774 - - - 1,774
Commissions,taxes and other expenses as apercentage of average net assets:
Commissions 0.00%
Taxes 0.00%
Other expenses 0.00%

Portfolio transaction costs are incurred by the Sub-fund when buying and selling underlying investments. These costs vary depending on the class of investment, country of exchange and method of execution.

These costs can be classified as either direct or indirect transaction costs:

Direct transaction costs: Broker commissions, fees and taxes.

Indirect transaction costs: "Dealing spread" - the difference between buying and selling prices of the underlying investments.

At the balance sheet date the portfolio dealing spread was 0.01% (31.10.19: 0.02%) being the difference between the respective bid and offer prices for the Sub-fund's investments.

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Epworth Multi-Asset Fund for Charities

16. Sensitivity analysis

Interest rate risk sensitivity

As the majority of the Sub-fund's financial assets are non-interest bearing, the Sub-fund is only subject to limited exposure to fair value interest rate risk due to fluctuations in levels of market interest rates and therefore, no sensitivity analysis has been provided.

Foreign currency risk sensitivity

As the majority of the Sub-fund's financial assets are in the base currency of the Sub-fund (Sterling), the Sub-fund is only subject to limited exposure to fluctuations in foreign currency and therefore, no sensitivity analysis has been provided.

Price risk sensitivity

A five percent increase in the value of the Sub-fund's portfolio would have the effect of increasing the return and net assets by £1,391,600 (31.10.19: £1,485,536). A five percent decrease would have an equal and opposite effect.

17. Fair value of financial assets and financial liabilities

The fair value of the Sub-fund's investments has been determined using the hierarchy below. This complies with the 'Amendments to FRS102 - Fair value hierarchy disclosures' issued by the Financial Reporting Council in March 2016.

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.

For the year ended 31 October 2020 For the year ended 31 October 2020
Category 1 2 3 Total
£'000s £'000s £'000s £'000s
Equities 1,468 - - 1,468
Pooled Investment Vehicles 26,364 - - 26,364
27,832 - - 27,832
For the period ended 31 October 2019
Category 1 2 3 Total
£'000s £'000s £'000s £'000s
Equities 1,880 - - 1,880
Pooled Investment Vehicles 27,831 - - 27,831
29,711 - - 29,711

76

Epworth Multi-Asset Fund for Charities

Distribution tables

For the year ended 31 October 2020

First interim distribution in pence per unit

Group 1: units purchased prior to 1 November 2019 Group 2: units purchased 1 November 2019 to 31 January 2020

2020 2019
Net pence per unit paid pence per unit paid
income Equalisation 13Mar 15Mar*
Income units
Group 1 0.36 - 0.36 n/a
Group 2 0.36 0.00 0.36 n/a
CFB Income units
Group 1 0.52 - 0.52 n/a
Group2 0.47 0.05 0.52 n/a

Second interim distribution in pence per unit

Group 1: units purchased prior to 1 February 2020 Group 2: units purchased 1 February 2020 to 30 April 2020

2020 2019
Net pence per unit paid pence per unit paid
income Equalisation 15Jun 15Jun*
Income units
Group 1 0.49 - 0.49 n/a
Group 2 0.49 0.00 0.49 n/a
Accumulation units**
Group 1 0.49 - 0.49 n/a
Group 2 0.49 0.00 0.49 n/a
CFB Income units
Group 1 0.63 - 0.63 n/a
Group2 0.61 0.02 0.63 n/a

** The accumulation class launched on launched on 4 March 2020.

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Epworth Multi-Asset Fund for Charities

Distribution tables

Third interim distribution in pence per unit

Group 1: units purchased prior to 1 May 2020 Group 2: units purchased 1 May 2020 to 31 July 2020

2020 2019
Net pence per unit paid pence per unit paid
income Equalisation 15Sep 13Sep
Income units
Group 1 0.28 - 0.28 n/a
Group 2 0.28 0.00 0.28 n/a
Accumulation units**
Group 1 0.31 - 0.31 n/a
Group 2 0.31 0.00 0.31 n/a
CFB Income units
Group 1 0.45 - 0.45 0.52
Group2 0.45 0.00 0.45 0.52

Final distribution in pence per unit

Group 1: units purchased prior to 1 August 2020 Group 2: units purchased 1 August 2020 to 31 October 2020

2020 2019
Net pence per unit payable pence per unit paid
income Equalisation 15Dec 13Dec
Income units
Group 1 0.33 - 0.33 0.75
Group 2 0.33 0.00 0.33 0.75
Accumulation units**
Group 1 0.34 - 0.34 n/a
Group 2 0.34 0.00 0.34 n/a
CFB Income units
Group 1 0.48 - 0.48 0.78
Group2 0.42 0.06 0.48 0.78

** The Accumulation units launched on 4 March 2020.

Equalisation

This applies only to units purchased during the distribution period (Group 2 units). It is the average amount of revenue included in the purchase price of all Group 2 units and is refunded to the holders of these units as a return of capital. Being capital it is not liable to income tax but must be deducted from the cost of the units for capital gains tax purposes.

78

Epworth Climate Stewardship Fund for Charities

Statement of total return

Statement of total return
For the period 28 May 2020 to 31 October 2020
31.10.20*
Note £'000s
Income: net capital losses 2 (1,490)
Income: revenue 3 301
Expenses 4 (88)
Taxation 5 -
Net revenue after taxation 213
Total defcit before distributions (1,277)
Distributions 6 (210)
Change in net assets attributable to unitholders from investment activities (1,487)

Statement of change in net assets attributable to unitholders

Statement of change in net assets attributable to unitholders
For the period 28 May 2020 to 31 October 2020
31.10.20*
£'000s
Opening net assets attributable to unitholders -
Amounts receivable on issue of units 29,295
Amountspayable on cancellation of units (398)
28,897
Dilution adjustment 16
Change in net assets attributable to unitholders from investment activities (1,487)
Closingnet assets attributable to unitholders 27,426

Balance sheet

Balance sheet
As at 31 October 2020
31.10.20*
Note £'000s
Assets
Investments 27,051
Current assets:
Debtors 7 338
Cash and bank balances 8 381
Total assets 27,770
Liabilities
Creditors:
Distributions payable (143)
Other creditors 9 (201)
Total liabilities (344)
Net assets attributable to unitholders 27,426

Balance sheet approved and signed on behalf of the Manager by:

David Palmer, Director 24 December 2020

Marina Phillips, Secretary 24 December 2020

79

Epworth Climate Stewardship Fund for Charities

Comparative table

Comparative table
Income B units
31.10.20^
Change in net assetsper unit penceper unit
Openingnet asset valueper unit 100.00
Return before operating charges* (4.02)
Operatingcharges (0.35)
Return after operatingcharges* (4.37)
Distributions on income units (0.73)
Closingnet asset valueper unit 94.90
* after direct transaction costs of (pence per unit): 0.02
Performance
Return after charges (4.37%)
Other information
Closing net asset value (£'000s) 24,250
Closing number of units 25,552,805
Operating charges 0.76%
Direct transaction costs 0.02%
Prices(penceper unit)+
Highest unit price (ofer) 102.53
Lowest unitprice(bid) 95.34

The return after charges has been calculated in accordance with the Statement of Recommended Practice for UK Authorised Funds' prescribed calculation methodology. This is for financial statement reporting purposes only and differs from the Sub-fund’s performance disclosed in the Report of the Investment Manager.

80

Epworth Climate Stewardship Fund for Charities

Comparative table

Accumulation units

Accumulation units
31.10.20^
Change in net assetsper unit penceper unit
Openingnet asset valueper unit# 99.50
Return before operating charges* (4.07)
Operatingcharges (0.06)
Return after operatingcharges* (4.13)
Distributions on accumulation units -
Retained distributions on accumulation units -
Closingnet asset valueper unit 95.37
* after direct transaction costs of (pence per unit): 0.02
Performance
Return after charges (4.15%)
Other information
Closing net asset value (£'000s) 96
Closing number of units 100,503
Operating charges 0.87%
Direct transaction costs 0.02%
Prices(penceper unit)+
Highest unit price (ofer) 100.23
Lowest unitprice(bid) 95.33

The return after charges has been calculated in accordance with the Statement of Recommended Practice for UK Authorised Funds' prescribed calculation methodology. This is for financial statement reporting purposes only and differs from the Sub-fund’s performance disclosed in the Report of the Investment Manager.

81

Epworth Climate Stewardship Fund for Charities

Comparative table

Comparative table
CFB Income units
31.10.20^
Change in net assetsper unit penceper unit
Openingnet asset valueper unit 100.00
Return before operating charges* (4.03)
Operatingcharges (0.11)
Return after operatingcharges* (4.14)
Distributions on income units (0.97)
Closingnet asset valueper unit 94.89
* after direct transaction costs of (pence per unit): 0.02
Performance
Return after charges (4.14%)
Other information
Closing net asset value (£'000s) 3,080
Closing number of units 3,245,625
Operating charges 0.21%
Direct transaction costs 0.02%
Prices(penceper unit)+
Highest unit price (ofer) 102.54
Lowest unitprice(bid) 95.47

The return after charges has been calculated in accordance with the Statement of Recommended Practice for UK Authorised Funds' prescribed calculation methodology. This is for financial statement reporting purposes only and differs from the Sub-fund’s performance disclosed in the Report of the Investment Manager.

82

Epworth Climate Stewardship Fund for Charities

Portfolio of investments

Portfolio of investments
As at 31 October 2020
Market
Total net
value
assets
Holding
£'000s
%
United Kingdom
89.46
Basic Materials
Croda International
1,040
63
0.23
Mondi
9,580
140
0.51
Victrex
17,350
320
1.17
Consumer Goods
Berkeley Group Holding
7,890
320
1.17
Cranswick
10,840
349
1.27
Hilton Food Group
33,322
386
1.41
Persimmon
2,570
60
0.22
Reckitt Benckiser
12,550
853
3.11
Unilever
34,720
1,529
5.57
Consumer Services
Compass Group
14,230
150
0.55
Informa
9,980
42
0.15
Intercontinental Hotels
1,470
58
0.21
Next Fifteen Communications
89,384
399
1.46
Next Group
950
55
0.20
Ocado Group
3,640
83
0.30
RELX
55,050
841
3.07
Ten Entertainment
158,399
209
0.76
Tesco
691,980
1,421
5.18
Financials
3I Group
75,810
729
2.66
Aviva
78,670
203
0.74
Barclays
137,800
147
0.54
Brooks Macdonald Group
25,610
392
1.43
Derwent London REIT
14,010
372
1.36
Greencoat UK Wind
523,738
705
2.57
HgCapital Trust
138,691
410
1.49
HSBC Holdings
243,470
790
2.88
Impax Environmental Markets
101,387
381
1.39
Legal & General
413,640
764
2.79
Lloyds Banking Group
553,290
155
0.56
London Stock Exchange Group
4,360
361
1.32
North Atlantic Smaller Companies
Investment Trust
11,970
340
1.24
PRS REIT
436,440
310
1.13
Prudential
51,910
489
1.78
Scottish Mortgage Investment Trust
17,320
172
0.63
Segro REIT
23,560
212
0.77
Sigma Technology Group
330,496
380
1.39
St.Modwen Properties
125,204
414
1.51
Standered Chartered
20,430
72
0.26
Watkin Jones
236,470
316
1.15
Market
Total net
value
assets
Holding
£'000s
%
Healthcare
AstraZeneca
20,230
1,571
5.73
Eco Animal Health Group
144,180
332
1.21
GlaxoSmithKline
123,150
1,591
5.80
Smith & Nephew
17,140
229
0.83
Industrials
Ashtead Group
17,830
499
1.82
Bunzl
6,680
160
0.58
Diploma
17,020
379
1.38
Halma
3,760
89
0.33
Howden Joinery Group
60,570
386
1.41
Intertek Group
1,600
89
0.32
Keywords Studios
18,100
383
1.40
M J Gleeson
65,748
381
1.39
Rentokil Initial
14,780
78
0.28
Spirax-Sarco Engineering
740
83
0.30
Technology
FDM Group Holdings
40,641
406
1.48
Sage Group
21,670
138
0.50
Softcat
28,560
321
1.17
Telecommunications
BT Group
69,430
70
0.26
Vodafone Group
852,470
878
3.20
Utilities
National Grid
117,650
1,081
3.94
Channel Islands
6.53
Consumer Services
WPP
11,910
73
0.27
Financials
3I Infrastructure
129,730
383
1.40
Renewables Infrastructure Group
557,160
753
2.74
Industrials
Experian Group
11,520
325
1.19
Ferguson
3,310
256
0.93
Netherlands
0.29
Consumer Goods
Just Eat Takeaway.Com
930
80
0.29
Singapore
1.17
Industrials
XP Power
8,031
320
1.17

83

Epworth Climate Stewardship Fund for Charities

Portfolio of investments

As at 31 October 2020

As at 31 October 2020
Market Total net
value assets
Holding £'000s %
United States 1.18
Financials
SPDR MSCI EAFE Fossil
Fuel Reserves Free ETF 6,400 325 1.18
Portfolio of investments 27,051 98.63
Net other assets 375 1.37
Net assets 27,426 100.00

Unless otherwise stated, all investments are approved securities being either officially listed in a member state or traded on or under the rules of an eligible securities market.

The Sub-fund was launched on 28 May 2020, therefore, no comparative figures are available.

Summary of material portfolio changes

For the period 28 May 2020 to 31 October 2020

Cost
£'000s
Purchases
GlaxoSmithKline
2,009
AstraZeneca
1,833
Tesco
1,612
Unilever
1,592
Vodafone Group
1,193
National Grid
1,093
RELX
1,083
HSBC Holdings
977
Reckitt Benckiser
956
Prudential
912
13,260
Otherpurchases
17,097
Totalpurchases
30,357		 Proceeds
£'000s
Sales
Prudential
401
DS Smith
308
Craneware
259
Diploma
95
AstraZeneca
90
Unilever
85
FDM Group
81
Keywords Studios
68
Impax Environmental Markets
64
Reckitt Benckiser
58
1,509
Other sales
307
Total sales
1,816

84

Epworth Climate Stewardship Fund for Charities

Notes to the financial statements

1. Accounting policies

(a) Basis of accounting

The financial statements have been prepared under the historical cost basis, as modified by the revaluation of investments and in compliance with Financial Reporting Standard 102 (FRS102) and in accordance with the Statement of Recommended Practice (SORP) for financial statements of Authorised Funds issued by The Investment Association in May 2014 (and amended in June 2017), the Charities Act 2011 and the relevant scheme of Charity Commissioners.

Judgements in applying accounting policies and key sources of estimation uncertainty

The Manager does not consider that there were any significant areas of estimation uncertainty or application of critical judgements.

(b) Basis of valuation

The quoted investments of the Sub-fund have been valued at bid dealing prices as at close of business on 30 October 2020, the last valuation point in the accounting period, in accordance with the Trust Deed.

(c) Recognition of income

Dividends on ordinary stocks and distributions are credited to revenue when the securities are quoted ex-dividend. Interest on bank deposits are accounted for on a receipts basis.

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.

(d) Stock dividends

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

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

The underlying circumstances behind a special dividend, share buyback or additional share issue are reviewed on a case by case basis in determining whether the amount is revenue or capital in nature. Amounts recognised as revenue form part of the distribution.

(f) Expenses

Expenses are accounted for on an accruals basis. Expenses of the Subfund are charged against revenue, except for the costs associated with the purchase and sale of investments, which are charged to capital.

(g) Distribution policy

Revenue produced by the Sub-fund's investments accumulates during each accounting period. If, at the end of each accounting period, revenue exceeds expenses, the net revenue of the Sub-fund is available to be distributed/accumulated to unitholders.

(h) Foreign exchange

Transactions in foreign currencies during the period are translated into Sterling (the functional currency of the Sub-fund), at the rates of exchange ruling on the transaction date. Amounts held in foreign currencies have been translated at the rate of exchange ruling at close of business, 30 October 2020, the last valuation point in the accounting period.

2. Net losses on investments

The net capital losses during the period comprise:

2.
Net losses on investments
The net capital losses during the period comprise:
28.05.20 to
31.10.20
£'000s
Unrealised losses on non-derivative securities (1,481)
Realised losses on non-derivative securities (9)
Unrealised currency gains 3
Transaction charges (3)
Net losses on investments (1,490)

3. Revenue

3.
Revenue
28.05.20 to
31.10.20
£'000s
UK dividends 276
Overseas dividends 18
UK REIT property income distributions 2
Interest on debt securities 3
Bank interest 2
Total revenue 301
4.
Expenses
28.05.20 to
31.10.20
£'000s
Payable to the Manager or associates of the Manager and agents of
either of them:
Manager's periodic charge 58
Registration fees 7
65
Payable to the Corporate Trustee or associates of the Trustee and
agents of either of them:
Corporate Trustee's fees 10
Safe custodyfees 1
11
Auditor's fee 2
Other expenses 10
12
Total expenses 88

5. Taxation

The Sub-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.

28.05.20 to
31.10.20
£'000s
Taxation -

(i) Apportionment to multiple unit classes

With the exception of the Manager's periodic charge, the allocation of revenue and expenses to each unit class is based upon the proportion of the Sub-fund's assets attributable to each unit class on the day the revenue is earned or the expense is suffered. The Manager's periodic charge is specific to each unit class. Consequently, the revenue available to distribute for each unit class will differ.

85

Epworth Climate Stewardship Fund for Charities

Notes to the financial statements

6. Distributions

Distributions take account of income received on creation of units and income deducted on the cancellation of units, and comprise:

28.05.20 to
31.10.20
£'000s
31 July 75
31 October 143
218
Income deducted on cancellation of units -
Income received on creation of units (8)
Net distribution for theperiod 210
Net revenue after taxation 213
Movement of undistributed revenue (3)
Net distribution for theperiod 210
7.
Debtors
31.10.20
£'000s
Amounts receivable for creation of units 250
Sales awaiting settlement 39
Accrued income 49
Total debtors 338

11. Financial instruments

Fair value

In accordance with the investment objective, the Sub-fund holds certain financial instruments. These comprise:

The main risks arising from the Sub-fund’s financial instruments and the Manager’s policies for

managing these risks are summarised below. These policies have been applied consistently throughout the period.

Market price risk

Market price risk arises mainly from uncertainty about future prices of financial instruments held. It represents the potential loss the Subfund might suffer through holding market positions in the face of price movements. The Sub-fund's investment portfolio is exposed to market fluctuations which are monitored by the Manager in pursuit of the investment objectives and policies. Adherence to investment guidelines and to investment and borrowing powers set out in the Trust Deed, the Prospectus and in the Collective Investment Schemes Sourcebook ("the Sourcebook") mitigates the risk of excessive exposure to any particular type of security or issuer.

Counterparty risk

The Sub-fund’s transactions in securities expose it to the risk that the counterparty will not deliver the investment for a purchase or the cash for a sale. To minimise this, the Sub-fund only deals with an approved list of brokers maintained by the Manager.

8. Cash and bank balances

8.
Cash and bank balances
31.10.20
£'000s
Afrmative Deposit Fund for Charities 372
Cash at bank 9
Total cash and bank balances 381
9.
Other creditors
31.10.20
£'000s
Purchases awaiting settlement 146
Accrued expenses 55
Total other creditors 201

Liquidity risk

The Sub-fund's assets are comprised of mainly readily realisable securities. If insufficient cash is available to finance unitholder redemptions then securities held by the Sub-fund may need to be sold. The risk of low market liquidity, through reduced trading volumes, may affect the ability of the Sub-fund to trade financial instruments at values previously indicated by financial brokers. From time to time, liquidity may also be affected by stock specific or economic events. The Manager has a Liquidity Management Policy designed to monitor the liquidity risk of the Sub-fund and ensure that its investment strategy and liquidity profile allows the Sub-fund to meet its daily redemption obligations.

10. Reconciliation of units

Foreign currency risk

Foreign currency risk is the risk that the value of the Sub-fund's investment holdings will fluctuate as a result of changes in foreign currency exchange rates.

CFB
Income B
Accum
Income
units
units
units
Opening number of units
at beginning of period 28.05.20
-
-
-
Units issued in period
25,929,922
100,503
3,245,625
Units cancelled inperiod
(377,117)
-
Closing number of units
at end ofperiod31.10.20
25,552,805
100,503
3,245,625		 Foreign currency risk is the risk that the value of the Sub-fund's
investment holdings will fuctuate as a result of changes in foreign
currency exchange rates.
The total currency exposure at the period end was:
~~31.10.20~~
Non-
Monetary
monetary
exposures exposures
Total
Currency
£'000s
£'000s
£'000s
Sterling
368
26,726
27,094
US Dollar
7
325
332
Total
375
27,051
27,426

86

Epworth Climate Stewardship Fund for Charities

Notes to the financial statements

Interest rate risk

The majority of the Sub-fund's financial assets are equity shares and other investments which neither pay interest nor have a maturity date.

At the period end 1.39% of the Sub-fund's assets by value were interest bearing.

Interest receivable on bank deposits or payable on bank overdraft positions will be affected by fluctuations in interest rates.

12. Commitments and contingent liabilities

There were no commitments or contingent liabilities as at 31 October 2020.

14. Related party transactions

The Manager’s periodic charge is paid to Epworth Investment Management Limited, a related party to the Sub-fund. The amounts paid in respect of the Manager's periodic charge are disclosed in note 4. The amount outstanding as at 31 October 2020 was £36,596.

In addition, the Sub-fund placed deposits during the period with the Affirmative Deposit Fund for Charities, a fund managed by Epworth Investment Management Limited. All charges levied for the management of these deposits have been refunded to the Sub-fund by Epworth. There were no other related party transactions during the period.

13. Unitholders' funds

There are three unit classes in issue within the Sub-fund. These are Income B, Accumulation and CFB Income units. The Manager's periodic charge in respect of these units is expressed as an annual percentage of the value of the property of the Sub-fund attributable to each unit class and is currently 0.55% and 0.65% in respect of Income B and Accumulation units repectively and 0% in respect of CFB Income units. Consequently, the level of net revenue attributable to each unit class will differ. Should it be necessary to wind-up the Sub-fund, each unit class will have the same rights as regards to the distribution of the property of the Sub-fund.

87

Epworth Climate Stewardship Fund for Charities

Notes to the financial statements

15. Portfolio transaction costs

For the period ended 31 October 2020

15. Portfolio transaction costs
For the period ended 31 October 2020
Other
Value Commissions Taxes expenses Total
£'000s £'000s % £'000s % £'000s % £'000s
Analysis of total purchases costs
Equity transactions 30,014 5 0.02 - - - - 30,019
Pooled investment vehicles 338 - - - - - - 338
Total 30,352 5 - - 30,357
Other
Value Commissions Taxes expenses Total
£'000s £'000s % £'000s % £'000s % £'000s
Analysis of total sales costs
Equitytransactions 1,817 (1) (0.06) - - - - 1,816
Total 1,817 (1) - - 1,816
Commissions, taxes and other expenses as a percentage of average net assets:
Commissions 0.02%
Taxes 0.00%
Other expenses 0.00%

Portfolio transaction costs are incurred by the Sub-fund when buying and selling underlying investments. These costs vary depending on the class of investment, country of exchange and method of execution.

These costs can be classified as either direct or indirect transaction costs:

Direct transaction costs: Broker commissions, fees and taxes.

Indirect transaction costs: "Dealing spread" - the difference between buying and selling prices of the underlying investments.

At the balance sheet date the portfolio dealing spread was 0.41% being the difference between the respective bid and offer prices for the Sub-fund's investments.

88

Epworth Climate Stewardship Fund for Charities

Notes to the financial statements

16. Sensitivity analysis

Interest rate risk sensitivity

As the majority of the Sub-fund's financial assets are non-interest bearing, the Sub-fund is only subject to limited exposure to fair value interest rate risk due to fluctuations in levels of market interest rates and therefore, no sensitivity analysis has been provided.

Foreign currency risk sensitivity

As the majority of the Sub-fund's financial assets are in the base currency of the Sub-fund (Sterling), the Sub-fund is only subject to limited exposure to fluctuations in foreign currency and therefore, no sensitivity analysis has been provided.

Price risk sensitivity

A five percent increase in the value of the Sub-fund's portfolio would have the effect of increasing the return and net assets by £1,352,547. A five percent decrease would have an equal and opposite effect.

17. Fair value of financial assets and financial liabilities

The fair value of the Sub-fund's investments has been determined using the hierarchy below. This complies with the 'Amendments to FRS102 - Fair value hierarchy disclosures' issued by the Financial Reporting Council in March 2016.

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.

For the period ended 31 October 2020 For the period ended 31 October 2020
Category 1 2 3 Total
£'000s £'000s £'000s £'000s
Equities 27,051 - - 27,051
27,051 - - 27,051

89

Epworth Climate Stewardship Fund for Charities

Distribution tables

For the period ended 31 October 2020

First interim distribution in pence per unit

Group 1: units purchased on 28 May 2020 Group 2: units purchased 29 May 2020 to 31 July 2020

2020
Net pence per unit paid
income Equalisation 15Sep
Income B units
Group 1 0.25 - 0.25
Group 2 0.23 0.02 0.25
CFB Income units
Group 1 0.34 - 0.34
Group2 0.34 0.00 0.34

Final distribution in pence per unit

Group 1: units purchased prior to 1 August 2020 Group 2: units purchased 1 August 2020 to 31 October 2020

2020
Net pence per unit payable
income Equalisation 15Dec
Income B units
Group 1 0.48 - 0.48
Group 2 0.10 0.38 0.48
CFB Income units
Group 1 0.63 - 0.63
Group2 0.03 0.60 0.63

Group 1: units purchased on 16 October 2020

Group 2: units purchased 17 October 2020 to 31 October 2020

2020
Net pence per unit payable
income Equalisation 15Dec
Accumulation units*
Group 1 0.00 - 0.00
Group2 0.00 0.00 0.00

Equalisation

This applies only to units purchased during the distribution period (Group 2 units). It is the average amount of revenue included in the purchase price of all Group 2 units and is refunded to the holders of these units as a return of capital. Being capital it is not liable to income tax but must be deducted from the cost of the units for capital gains tax purposes.

90

Epworth Investment Funds for Charities

Responsibilities of the Manager and the Trustee

In preparing these financial statements, the Manager is required to:

The Manager is also required to manage the Trust in accordance with the Trust Deed, the Prospectus and the Sourcebook, maintain proper financial records to enable them to ensure that the financial statements comply with the Statement of Recommended Practice for Authorised Funds as issued by the IA in May 2014 (amended June 2017) and the Sourcebook and take reasonable steps for the prevention and detection of fraud and other irregularities.

Sourcebook, the Financial Services and Markets Act 2000, as amended, (together 'the Regulations'), the Trust Deed and Prospectus (together 'the Scheme documents') as detailed below.

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

The Depositary is responsible for the safekeeping of all custodial assets and maintaining a record of all other assets of the Trust in accordance with the Regulations.

The Depositary must ensure that:

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

Trustee’s report and directors’ statement

Statement of the Depositary's Responsibilities in Respect of the Scheme and Report of the Depositary to the Unitholders of the Epworth Investment Funds for Charities ('the Trust') for the Period Ended 31 October 2020.

Having carried out such procedures as we considered necessary to discharge our responsibilities as Depositary of the Trust, it is our opinion, based on the information available to us and the explanations provided, that, in all material respects the Trust, acting through the AIFM:

(ii) has observed the investment and borrowing powers and restrictions applicable to the Trust in accordance with the Regulations and the Scheme documents of the Trust.

London HSBC Bank plc 24 December 2020

Directors’ statement

In accordance with the requirements of the Collective Investment Schemes Sourcebook as issued and amended by the Financial Conduct Authority, we hereby certify the report on behalf of the Directors of Epworth Investment Management Limited.

London David Palmer, Director Marina Phillips, Secretary 24 December 2020

91

Epworth Investment Funds for Charities

Independent auditor’s report to the trustee of Epworth Investment Funds for Charities

Opinion

We have audited the financial statements of Epworth Investment Funds for Charities (the 'Trust') for the year from 1 November 2019 to 31 October 2020. The financial statements comprise the statement of accounting policies and combined notes and individual financial statements of each of the following sub-funds (the 'sub-funds') of the Trust:

The individual financial statements for each of the Trust's sub-funds comprise the Statement of total return, the Statement of change in net assets attributable to unitholders, the Balance sheet, the Portfolio of investments, the Summary of material portfolio changes, the Distribution tables where applicable, the Credit ratings where applicable and related notes to the financial statements. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Trust in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

Other information

The trustee is responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion 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 such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in 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 in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of the Manager

As described in the Responsibilities of the Manager and the Trustee, the Manager is responsible for the preparation of financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102, ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’. The Trustee is required to take reasonable care to ensure compliance by the Manager with all relevant requirements.

In preparing the financial statements, the Manager is responsible for assessing the Trust’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 trustees either intend to liquidate the Trust or to cease operations, or have no realistic alternative but to do so.

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

92

Epworth Investment Funds for Charities Independent auditor's report to the trustee of Epworth Investment Funds for Charities Auditorfs respon8ibilitie8 for the audit (Jf the finaneial ststements Our objectives aTeto obtsin Teasonable assurance about wthether the linancial ￿ateMentS as a iihole are Iree from material mi%slalement, whether diie tofraud vr eTTur, andto i￿lle auditorfb report that includes ouropinion. Reasonable assura11￿ is a high level of assurance, but is not a guaraniee that an audit conducied in accordance wilh ISAS IUKI always detect a material misstatetnent when it ayists. Misstateineiits can arisefrom fraud or erroraiid are coiisidered tnaterial if, Indi￿]d￿*]1Y or in the aggregate, they eould reaso[￿b]Ybe expectedto influeiice the economic decisions of userstaken onthe h38iqnf th&qe financial £taternenLq. Afurthcr description of ourrcsponsibilitics for the audit of the finan¢ial.stgtementq iq locjted on the Financigl ReportinA Council website at www.frc.org.uk/auditoTsresponsibilities. This descIiption forms partof ourauditor's report. This report is tnade solelytothe charits s trustee in accoTrlance s%ryth section 144 of the Charities Act 2nii alld with reglllatiDn% made under section 154 of that Act. Our audit i¥ork has been undertaken so ihai we tnight statetothe trllstee those matters we are required to stateto them in 2n auditnr'% re￿rt and f(>rna othei'purpthqe. Tothefi]Ile extent permilted bj law, we do not aecepi or assume responsibility to anyone otheT than theTrllst and thetrllstee, for our audit i%'ork, for this report, orforthe opinions we have formed. Buzzacott LLP .8tatutlJryAuditor 130 Wo(xq Street London EC2V 6DL 24 Dece￿1￿[ 2020 93

Epworth Investment Funds for Charities

Corporate information

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

Epworth Investment Management Limited is a private limited company (registered number 03052894) owned by the Central Finance Board of the Methodist Church, and is authorised and regulated by the Financial Conduct Authority.

Administration & Dealing: 020 7496 3636 (between the hours of 9am & 5pm).

Value for Money (VfM) Assessment

The Financial Conduct Authority (FCA) have introduced new rules and guidance to improve the quality of information available to investors. We have performed an annual assessment for Epworth Investment Management Ltd (Epworth) designed to meet the FCA's requirements and assess whether each Epworth Sub-fund provides value for money for the investor. If the assessment determines that one or more Subfund does not provide value for money, an action plan to rectify the situation is proposed.

Administrator, Delegate Registrar, Fund Accountant and Transfer Agent

HSBC Bank plc 8 Canada Square London E14 5HQ Authorised and regulated by the Financial Conduct Authority.

Delegate Registrar correspondence address

Epworth Investment Management Limited Floor 1, 1 Grand Canal Square Grand Canal Harbour Dublin 2 Ireland Authorised and regulated by the Financial Conduct Authority.

Investment Manager

Epworth Investment Management Limited 2nd Floor

9 Bonhill Steet London EC2A 4PE

Trustee

Broadly speaking, the VfM assessment requires consideration of a combination of factors, including comparable market rates, Epworth costs, comparable services, performance, quality of service, economies of scale and share classes.

Based on our VfM assessment of each Sub-fund, the Board believes that Epworth provides good value for money for its clients.

Further details of the VfM Assessment for Epworth can be found at: https://www.epworthinvestment.co.uk/downloads/value-for-moneyassessment.pdf

Risks

The price of units and the revenue from them can go down as well as up and investors may not get back the amount they invested, particularly in the case of early withdrawal.

Management charges on some funds may be charged to capital and therefore a reduction in capital may occur.

HSBC Bank plc 1-2 Lochside Way Edinburgh Park Edinburgh EH12 9DT Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Independent Auditor

Buzzacott LLP 130 Wood Street London EC2V 6DL

Authorised status

The Trust, Epworth Investment Funds for Charities, is an authorised unit trust. The Trust is also registered with the Charity Commission as a charity.

For the purposes of the Regulations, the Trust is:

Depending on the fund, the value of your investment may change with currency movements.

Manager

Epworth Investment Management Limited 2nd Floor 9 Bonhill Steet London EC2A 4PE

Directors

John Sandford (Chair) David Palmer (Chief Executive Officer) Jennie Austin Stephen Beer (Chief Investment Officer) Julian de G Parker Peter Hobbs Marina Phillips (Chief Financial Officer)

Advisory Committee

Chris Sexton (Chair) Kevin Norman Lord Burnham Alexandra Cornforth

94