The Charity Equity Fund Final Report and Accounts March 2016

Contents The Charity Equity Fund Fund Information1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Investment objective and policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Alternative Investment Fund Managers Directive (AIFMD) . . . . . . . . . . . . . . . . . . .3 Financial highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Fund information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Ongoing charges figure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 Participation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 Management charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 Investment Adviser . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 Supervisory Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 Review of Investment Activities1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 Risk Profile1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 Specific risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 Statement of the Manager’s Responsibilities . . . . . . . . . . . . . . . . . . . . . . . . .8 Report of the Trustee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 Independent Auditors’ Report to the Trustees of The Charity Equity Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10 Comparative Tables1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 Portfolio Statement1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16 Summary of Portfolio Transactions1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19 Largest purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19 Largest sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19 Statement of Total Return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20 Statement of Change in Net Assets Attributable to Unitholders . . . . . . . .20 Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21 Notes to the Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22 1 Accounting policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22 2 Net capital (losses)/gains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23 3 Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24 4 Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24 5 Taxation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25 6 Distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25 7 Fair value hierarchy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26 8 Debtors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26 9 Other creditors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26 10 Contingent liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26 11 Related party transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27 12 Unit classes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27 13 Derivative and other financial instruments . . . . . . . . . . . . . . . . . . . . . . . . . . .27 14 Direct transaction costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30 15 Units in issue reconciliation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31 Remuneration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32 Distribution Table . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33 Quarterly distribution for the three months ended 30 June 2015 . . . . . . . . . . . . .33 Interim distribution for the three months ended 30 September 2015 . . . . . . . . . .33 Quarterly distribution for the three months ended 31 December 2015 . . . . . . . .34 Final distribution for the three months ended 31 March 2016 . . . . . . . . . . . . . . .34 Equalisation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .34 Transactional Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35 General Information1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36

1 Collectively these comprise the Fund Manager’s report.

The Charity Equity Fund

Fund Information Investment objective and policy

The Charity Equity Fund aims to provide participating charities with a total return (income and capital growth) in excess of the FTSE All Share Index over five year rolling periods. In order to achieve this objective, the fund may invest in securities anywhere in the world, although investment will be predominantly in good quality UK equities.

Alternative Investment Fund Managers Directive (AIFMD)

The AIFMD, as implemented in the UK by the Alternative Investment Fund Managers (AIFMs) Regulations 2013, establishes an EU wide harmonised framework for monitoring and supervising risks posed by AIFMs and the alternative investment funds (AIFs) they manage. The fund is an AIF and Schroder Unit Trust Limited (the Manager) was authorised by the Financial Conduct Authority (FCA) to act as an AIFM on 2 July 2014. The AIFMD requires certain information to be disclosed to unitholders. It is intended that any such information will in future be provided in the report and accounts, unless such information is required to be disclosed without delay, in which case it will be made via the Schroders website at: www.schroders.com/en/uk/private-investor/fund-centre/changes-to-funds/

Financial highlights

Selling price

31.3.16

31.3.15

% change

A Income units

340.00p

372.60p

(8.75)

A Accumulation units

834.30p

877.40p

(4.91)

49.45p

53.96p

(8.36)

1.12.15 to 31.5.16

1.12.14 to 31.5.15

5.6500p

5.6000p

S Income units

Distributions per A Income unit

Fund information

Launch date

3 March 1992

Launch price

100.00p per A Income unit 100.00p per A Accumulation unit

Launch date

1 October 2014

Launch price

50.00p per S Income unit

Quarterly Accounting dates Revenue allocation dates

3

Interim

Quarterly

Final

30 June 30 September 31 December

31 March

31 August 30 November

28 February

31 May

The Charity Equity Fund

Fund Information (continued) For the period to Date

Ongoing charges figure

A/I/X Income (Gross) units A/I/X Accumulation (Gross) units2 A Income units A Accumulation units

For the period/year to Date

For the1year 0.00% to 31.3.16 0.00%1 0.62%

For the year3 0.00% to 31.3.153 0.00% 0.62%1

0.62%

0.62%1

1 The Total expense ratio is annualised based on the fees suffered during the S Income units 0.38% 0.38%1 2 accounting period. 2 The Manager’s periodic charge for X Accumulation (Gross) units is invoiced 1 The Annual management charge has been based on the daily net asset directly to unitholders and is therefore not included in the Total expense ratio value of the fund from 1 October 2014. Previously, for A Income units for that unit class. and Accumulation units, it was based on the net asset value of the fund 3 The Total expense ratio recoverable on registrar’s fees. on the first business dayincludes of eachVAT month. 2 The Ongoing charges figure is annualised based on the fees incurred during the accounting period.

4

The Charity Equity Fund

Fund Information (continued) [Insert text.]

Participation

Charities in England and Wales (and every “appropriate body” in Scotland and Northern Ireland) may participate in the fund unless specifically precluded by their deeds or other governing instrument. For A Income units and A Accumulation units the minimum initial investment is £1,000 and, for subsequent purchases £500. Applications for subscriptions into the S Income units are accepted at the Manager’s discretion. There is no maximum limit on the amount which may be invested. The fund can issue both Income and Accumulation units. Income unitholders receive regular quarterly distributions, while accumulation unitholders benefit from the reinvestment of their revenue into the fund.

Management charges

There is no preliminary charge. The Annual management charge is 0.50% (plus VAT) of the value of the fund for A Income units and A Accumulation units and 0.30% (plus VAT) for S Income units and is charged to the capital of the fund.

Investment Adviser

The Manager has delegated the function of Investment Adviser to Schroder Investment Management Limited. The Investment Adviser has appointed Schroder & Co Limited as its delegated sub-investment adviser.

Supervisory Board

The duties and responsibilities of the Supervisory Board are set out in the Scheme rules. These include the determination of the criteria and methods for evaluating the performance of the fund, making and revising a written statement of the investment objectives of the fund and an obligation to inform the Charity Commissioners promptly should the Supervisory Board not be satisfied at any time as to the compliance with the Scheme Particulars by the Trustee or the Manager.

5

The Charity Equity Fund

Review of Investment Activities From 31 March 2015 to 31 March 2016, the price of A Accumulation units on a selling price to selling price basis fell 4.91%. In comparison, the FTSE¹ All Share Index generated a negative total return of 3.92%². Our chosen banks had a difficult period in share price terms. Royal Bank of Scotland Group revealed its eighth consecutive year of annual losses while Barclays’ financial results were disappointing also, and included a dividend cut to preserve the bank’s balance sheet. Bank stocks generally have only been cheaper in early 2009 and late 2011 when systemic risk was at a peak yet profitable new business is helping them build significant excess capital. For the time being these profits remain masked by losses on legacy assets and exceptional charges. On the positive side the fund’s top performing holding over the period was electrical retailer Darty after it first attracted a bid from France’s Groupe Fnac and then a (recommended) counter offer from South African retailer Steinhoff International. Support services business Rentokil Initial was another top contributor on the back of strong financial results. Meanwhile, base metal miner South32 enjoyed a strong share price recovery, which highlighted the extent of the market’s prior panic, rather than a recovery in the fundamentals of the business. We continued to take profits in companies that have performed extremely well over the past couple of years such as interdealer broker ICAP, electrical and mobile phone retailer Dixons Carphone, Direct Line Insurance Group and pest control specialist Rentokil Initial. We took advantage of share price weakness to initiate positions in miners South32 and BHP Billiton. We also increased lowly valued positions such as Home Retail Group, which was subject to a bid approach soon after we added to it. We try to stand back from the market and attempt to identify long term trends that we can use to create long term value: placing emphasis on cash generative businesses with robust balance sheets, strong management teams, and cheap valuations. Today, the overall valuation of the UK equity market is near its long term average, implying a ten year return of approximately inflation +5% per annum for equity investors. It is crucial to point out that the market valuation is a simple average of the individual stocks within it, but within those stocks there are some exceptionally attractive opportunities. It is these opportunities that give us confidence in our ability to continue to extract the circa 2% per annum premium return offered to value investors over and above the market itself, through focusing investment in the cheapest parts of the market. 1 FTSE International Limited (“FTSE”) © FTSE. “FTSE®” is a trade mark of London Stock Exchange Plc and The Financial Times Limited and is used by FTSE International Limited under licence. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE's express written consent. 2 Source: Thomson Reuters Datastream.

Please remember that past performance is not a guide to future performance and it might not be repeated. The value of investments and the revenue from them may go down as well as up and investors may not get back the amount originally invested. Because of this, you are not certain to make a profit on your investments and you may lose money. 6

Co-Fund Manager:

Kevin Murphy Specialist Value UK equities fund manager with fifteen years investment experience Previously a sector analyst for Pan European Construction and Building Materials Investment career commenced in 2000 at Schroders Chartered Financial Analyst Degree in Economics, Manchester University

Co-Fund Manager:

Nick Kirrage Specialist Value UK equities fund manager with fourteen years investment experience Previously a sector analyst responsible for a number of UK sectors including Transport and Metals & Mining Investment career commenced in 2001 at Schroders Chartered Financial Analyst Degree in Aeronautical Engineering, Bristol University

Co-Fund Manager:

Andrew Lyddon Specialist Value UK equities fund manager with ten years investment experience UK equity analyst responsible for Telecoms and Support Services Joined Schroders in October 2005 as an Equity Analyst with the Pan European Industrials desk Chartered Financial Analyst MSc in Intellectual Property Law, Queen Mary College Degree in Chemistry, Bath University

The Charity Equity Fund

Risk Profile Specific risks

The fund invests in assets which are exposed to currencies other than sterling. Exchange rates may cause the value of overseas investments and the revenue from them to rise or fall. The fund invests in a smaller number of stocks. This carries more risk than funds spread across a larger number of companies. As a result of the Annual management charge being charged wholly to capital, the distributable revenue of the fund may be higher, but the capital value of the fund may be eroded which may affect future performance. For these reasons, the purchase of units should not normally be regarded as a short term investment.

7

The Charity Equity Fund

Statement of the Manager’s Responsibilities The Manager is required by the Charities Act 2011 to prepare accounts for each annual and half yearly accounting period, in accordance with United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), which give a true and fair view of the financial position of the fund and of its net revenue and the net capital losses on the property of the fund for the year. In preparing the accounts the Manager is required to: – select suitable accounting policies and then apply them consistently; – comply with the requirements of the Charities Act 2011 and Regulation 6 of The Charities (Accounts and Reports) Regulations 2008; – follow generally accepted accounting principles and applicable accounting standards; – prepare the accounts on the basis that the fund will continue in operation unless it is inappropriate to do so; – keep proper accounting records which enable it to demonstrate that the accounts as prepared comply with the above requirements; – make judgements and estimates that are prudent and reasonable. The Manager is responsible for the management of the fund which was created by a Scheme of the Charity Commissioners under section 24 of the Charities Act 1993, in accordance with the Scheme Particulars and the Scheme made by the Charity Commissioners on 11 June 2007 and for taking reasonable steps for the prevention and detection of fraud, error and non-compliance with law or regulations. In accordance with the Scheme, Part 8 of the Charities Act 2011 and The Charities (Accounts and Reports) Regulations 2008 the Manager is deemed to be the Charity Trustee of the fund. In the opinion of the Manager, the Investment Adviser has complied with the terms of the Scheme, and the investment management agreement for the year from 1 April 2015 to 31 March 2016. The Manager’s report and accounts for the year ended 31 March 2016 were signed on 18 May 2016 on behalf of the Manager by:

J.A. Walker-Hazell Directors

8

P.C. Wallace

The Charity Equity Fund

Report of the Trustee Statement of the Trustee’s responsibilities in relation to the accounts of the Scheme The Trustee is under a duty to take into custody or under its control all of the property of the Scheme and to hold it in trust for the holders of units. Under Clause 9 of the Scheme it is also the duty of the Trustee to enquire into the conduct of the Manager in the management of the Scheme in each annual accounting period and to report thereon to unitholders in a report which shall contain the matters prescribed in Clause 9. A copy of the Trustee’s report is set out below. Report of the Trustee for the accounting period from 1 April 2015 to 31 March 2016 The Charity Equity Fund (“the fund”) Report under Clause 9(h) of the Scheme As Trustee of the above fund we hereby report that, for the year ended 31 March 2016 and having made such enquiries as we think appropriate, we have discharged our responsibilities for those aspects of the administration and management of the fund and its property which are specified in Clause 9 of the Scheme and, in respect of the supervision and oversight of the Manager’s compliance with the Scheme of the Charity Commissioners and the Scheme Particulars, and that the Manager has not exceeded the powers conferred on it and is maintaining adequate and proper records, that we have maintained custody and control of the property of the fund and that all revenue which is due to the fund has been collected.

J.P. Morgan Europe Limited Trustee Bournemouth 21 April 2016

9

The Charity Equity Fund

Independent Auditors’ Report to the Trustees of The Charity Equity Fund Report on the financial statements Our opinion In our opinion The Charity Equity Fund’s financial statements (the “financial statements”): – give a true and fair view of the state of the charity’s affairs as at 31 March 2016 and of its net revenue, net capital losses and movement in net assets for the year then ended; – have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and – have been prepared in accordance with the requirements of the Charities Act 2011 and Regulation 6 of The Charities (Accounts and Reports) Regulations 2008. What we have audited The financial statements comprise: – the balance sheet as at 31 March 2016; – the statement of total return for the year then ended; – the statement of changes in net assets attributable to unitholders for the year then ended; – the accounting policies; and – the notes and distribution table to the financial statements, which include a summary of significant accounting policies and other explanatory information. The financial reporting framework that has been applied in the preparation of the financial statements is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). In applying the financial reporting framework, the Manager has made judgements where appropriate, for example in respect of substantive accounting estimates. In preparing such estimates, they have considered future events.

10

The Charity Equity Fund

Independent Auditors’ Report to the Trustees of The Charity Equity Fund (continued) Other matters on which we are required to report by exception Sufficiency of accounting records and information and explanations received Under the Charities Act 2011 we are required to report to you if, in our opinion: – we have not received all the information and explanations we require for our audit; or – sufficient accounting records have not been kept; or – the financial statements are not in agreement with the accounting records and returns. We have no exceptions to report arising from this responsibility. Other information in the Manager’s Report Under the Charities Act 2011 we are required to report to you if, in our opinion the information given in the Manager’s Report is inconsistent in any material respect with the financial statements. We have no exceptions to report arising from this responsibility.

Responsibilities for the financial statements and the audit Our responsibilities and those of the trustees As explained more fully in the Manager’s Responsibilities Statement set out on page 8, the Manager is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and ISAs (UK & Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors. This report, including the opinions, has been prepared for and only for the charity’s trustees as a body in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act (Regulation 24 of The Charities (Accounts and Reports) Regulations 2008) and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

11

The Charity Equity Fund

Independent Auditors’ Report to the Trustees of The Charity Equity Fund (continued) What an audit of financial statements involves We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) (ISAs (UK & Ireland)). An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: – whether the accounting policies are appropriate to the charity’s circumstances and have been consistently applied and adequately disclosed; – the reasonableness of significant accounting estimates made by the Manager; and – the overall presentation of the financial statements. We primarily focus our work in these areas by assessing the Manager’s judgements against available evidence, forming our own judgements, and evaluating the disclosures in the financial statements. We test and examine information, using sampling and other auditing techniques, to the extent we consider necessary to provide a reasonable basis for us to draw conclusions. We obtain audit evidence through testing the effectiveness of controls, substantive procedures or a combination of both. In addition, we read all the financial and non-financial information in the Final Report and Accounts (the “Annual Report”) to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors Edinburgh 18 May 2016 PricewaterhouseCoopers LLP is eligible to act, and has been appointed, as auditor under section 144(2) of the Charities Act 2011. (a) The maintenance and integrity of the Schroders website is the responsibility of the Manager; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website. (b) Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. 12

The Charity Equity Fund

Comparative Tables A Income units Financial year to 31 March

2016 p per unit

2015 p per unit

2014 p per unit

369.01

349.97

306.59

(15.21)

34.72

57.07

(2.15)

(2.23)

(2.09)

(17.36)

32.49

54.98

Change in net asset value Opening net asset value Return before operating charges Operating charges Return after operating charges* 1

Distributions

Closing net asset value *after direct transaction costs of

(14.15)

(13.45)

(11.60)

337.50

369.01

349.97

(0.07)

0.25

(0.03)

(4.70)

9.28

17.93

Performance Return after charges (%) Other information Closing net asset value (£000’s) Closing number of units Operating charges (%) Direct transaction costs (%)**

93,304

96,693

119,368

27,645,450

26,203,345

34,107,823

0.62

0.62

0.62 2

0.02

(0.07)

0.01

Highest buying price (p)

385.50

386.60

371.60

Lowest selling price (p)

295.70

325.50

298.70

Prices

13

The Charity Equity Fund

Comparative Tables (continued) A Accumulation units 2016 p per unit

2015 p per unit

2014 p per unit

875.86

799.93

676.84

(35.68)

81.04

127.79

(5.20)

(5.11)

(4.70)

Return after operating charges*

(40.88)

75.93

123.09

Closing net asset value

834.98

875.86

799.93

34.20

31.40

24.60

(0.17)

0.58

(0.08)

(4.67)

9.49

18.19

Financial year to 31 March Change in net asset value Opening net asset value Return before operating charges Operating charges

Retained distributions1 *after direct transaction costs of Performance Return after charges (%) Other information Closing net asset value (£000’s) Closing number of units Operating charges (%) Direct transaction costs (%)**

13,255

13,424

10,083

1,587,445

1,532,642

1,260,573

0.62

0.62

0.62 2

0.02

(0.07)

0.01

Highest buying price (p)

915.00

910.30

843.70

Lowest selling price (p)

725.60

760.80

659.30

Prices

14

The Charity Equity Fund

Comparative Tables (continued) S Income units Financial year to 31 March

2016 p per unit

2015 p per unit

Change in net asset value Opening net asset value

53.47

50.00

Return before operating charges

(2.21)

4.37

Operating charges

(0.19)

(0.10)

Return after operating charges*

(2.40)

4.27

1

Distributions

Closing net asset value *after direct transaction costs of

(1.98)

(0.80)

49.09

53.47

(0.01)

0.02

(4.49)

8.54

Performance Return after charges (%) Other information Closing net asset value (£000’s)

36,350

32,559

74,042,249

60,895,685

Operating charges (%)

0.38

0.38

Direct transaction costs (%)**

0.02

(0.07)2

Closing number of units

Prices Highest buying price (p)

55.86

55.98

Lowest selling price (p)

42.99

47.09

The unit class was launched on 1 October 2014. 1 These figures have been rounded to 2 decimal places. 2 The amount received from dilution adjustments, that relate to direct transaction costs, is greater than the direct transaction costs incurred by the fund within the year/period. ** Direct transaction costs have been stated after deducting the proportion of the amounts collected from dilution adjustments. The Operating charges are calculated on an ex-post basis and as such may differ from the Ongoing charges figure where the Ongoing charges figure has been annualised for a unit class that has not been in existence for a full year. Please remember that past performance is not a guide to future performance and it might not be repeated. The value of investments and the revenue from them may go down as well as up and investors may not get back the amount originally invested. Because of this, you are not certain to make a profit on your investments and you may lose money. 15

The Charity Equity Fund

Portfolio Statement Holding at Market Value 31.3.16 £000’s

% of net assets

United Kingdom Oil & Gas 8.84% (2015 – 8.29%) BP Royal Dutch Shell B

1,981,412

6,938

4.86

334,962

5,694

3.98

12,632

8.84

Basic Materials 4.91% (2015 – 1.38%) Anglo American

865,006

4,776

3.34

BHP Billiton

285,423

2,234

1.57

7,010

4.91

Industrials 6.58% (2015 – 8.95%) BAE Systems

760,790

3,872

2.71

Cobham

310,334

674

0.47

QinetiQ Group

864,233

1,971

1.38

1,640,347

2,892

2.02

9,409

6.58

Rentokil Initial

Health Care 9.07% (2015 – 11.16%) AstraZeneca

121,316

4,734

3.31

GlaxoSmithKline

583,172

8,229

5.76

12,963

9.07

Consumer Services 18.46% (2015 – 18.67%) Darty

2,318,149

3,031

2.12

Debenhams

3,818,571

2,868

2.01

Home Retail Group

1,919,666

3,175

2.22

J Sainsbury

898,048

2,479

1.73

Pearson

377,006

3,299

2.31

2,762,783

5,298

3.71

752,457

988

0.69

2,640,230

5,243

3.67

26,381

18.46

Tesco Trinity Mirror Wm Morrison Supermarkets

16

The Charity Equity Fund

Portfolio Statement (continued) Holding at Market Value 31.3.16 £000’s

% of net assets

Telecommunications 4.15% (2015 – 4.59%) BT Group Vodafone Group

165,546

729

0.51

2,350,012

5,197

3.64

5,926

4.15

Utilities 4.90% (2015 – 2.86%) Centrica

1,829,588

4,164

2.91

Drax Group

1,044,847

2,843

1.99

7,007

4.90

Financials 23.89% (2015 – 23.36%) Aviva

1,056,732

4,819

3.37

Barclays

3,377,229

5,066

3.55

HSBC Holdings

972,282

4,219

2.95

ICAP

488,561

2,319

1.62

Legal & General Group

777,242

1,827

1.28

Lloyds Banking Group

5,484,234

3,730

2.61

Old Mutual

1,056,760

2,038

1.43

Royal Bank of Scotland Group

2,991,114

6,661

4.66

Standard Chartered

475,709

2,248

1.57

Tullett Prebon

347,294

1,221

0.85

34,148

23.89

3,501

2.45

3,501

2.45

Australia Basic Materials 2.45% (2015 – 0.00%) South32

4,473,929

Belgium Telecommunications 0.00% (2015 – 1.41%) Finland Technology 0.00% (2015 – 2.16%)

17

The Charity Equity Fund

Portfolio Statement (continued) Holding at Market Value 31.3.16 £000’s

% of net assets

Guernsey Financials 0.00% (2015 – 4.07%) United States Consumer Services 1.72% (2015 – 0.00%) Staples

319,922

2,453

1.72

2,453

1.72

2,244

1.57

2,244

1.57

2,914

2.04

Health Care 1.57% (2015 – 3.75%) Merck

60,449

Technology 9.25% (2015 – 5.33%) Cisco Systems

146,990

Hewlett Packard Enterprise

245,845

3,046

2.13

HP

269,968

2,307

1.61

Intel

219,665

4,953

3.47

13,220

9.25

Euro Denominated Derivatives 0.00% (2015 – 0.13%) US Dollar Denominated Derivatives 0.08% (2015 – (0.21)%) Forward to sell US$4,357,000 for £3,026,720

US$(4,357,000)

(3)

0.00

Forward to sell US$20,892,000 for £14,649,695

US$(20,892,000)

121

0.08

118

0.08

137,012

95.87

5,897

4.13

142,909

100.00

Portfolio of investments 1 Net other assets Net assets attributable to unitholders

Unless otherwise stated the above securities are ordinary shares or common stock and admitted to official stock exchange listings. 1 Including derivative liabilities. 18

The Charity Equity Fund

Summary of Portfolio Transactions Largest purchases

Largest sales

For the year ended 31 March 2016

Cost £000’s

Anglo American

5,617

Royal Bank of Scotland Group

4,865

South32

3,534

Barclays

2,863

Cisco Systems

2,545

Standard Chartered

2,330

Staples

2,127

Drax Group

2,106

Centrica

1,884

BHP Billiton

1,844

For the year ended 31 March 2016 Rentokil Initial

Proceeds £000’s 2,999

Nokia

2,884

Pfizer

2,711

Direct Line Insurance Group

2,291

Aviva

2,126

Proximus

2,064

Anglo American

2,047

ICAP

1,326

RSA Insurance Group

1,315

William Hill

1,228

19

The Charity Equity Fund

Statement of Total Return For the year ended 31 March 2016 2016 Notes

£000’s

2015 £000’s

£000’s

£000’s

Income Net capital (losses)/gains

2

Revenue

3

5,401

5,157

4

(774)

(816)

4,627

4,341

Expenses Net revenue before taxation Taxation

5

(11,016)

(66)

8,442

(79)

Net revenue after taxation

4,561

4,262

Total return before distributions

(6,455)

12,704

(5,512)

(5,098)

(11,967)

7,606

Distributions

6

Change in net assets attributable to unitholders from investment activities

Statement of Change in Net Assets Attributable to Unitholders For the year ended 31 March 2016 Restated1 2015

2016 £000’s Opening net assets attributable to unitholders

£000’s 142,676

17,289

14,709

Amounts payable on cancellation of units

(5,640)

(9,576)

Change in net assets attributable to unitholders from investment activities Retained distribution on Accumulation units Closing net assets attributable to unitholders

£000’s 129,451

Amounts receivable on issue of units

Dilution adjustment

11,649

5,133

23

33

(11,967)

7,606

528

453

142,909

142,676

1 Refer to the Notes to the Accounts on pages 22 and 23.

20

£000’s

The Charity Equity Fund

Balance Sheet As at 31 March 2016 Notes

2016

2015

£000’s

£000’s

137,015

137,250

775

1,650

6,319

5,307

144,109

144,207

(3)

(419)

(1,056)

(1,030)

(141)

(82)

(1,200)

(1,531)

142,909

142,676

Assets Investments Current assets Debtors

8

Cash and bank balances Total assets Liabilities Investment liabilities Creditors Distributions payable Other creditors Total liabilities Net assets attributable to unitholders

9

21

The Charity Equity Fund

Notes to the Accounts 1 Accounting policies

Basis of preparation The accounts have been prepared under the historical cost basis, as modified by the revaluation of investments, and in accordance with applicable law and the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008, the Scheme of the Charity Commissioners of 11 June 2007 and the disclosure requirements of the Statement of Recommended Practice (SORP) for Financial Statements of UK Authorised Funds issued by the Investment Management Association (IMA (now The Investment Association)) in May 2014, which supersedes the SORP issued by the IMA in October 2010, and in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 (The Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102)). Both of which became effective for the periods beginning on or after 1 January 2015. The accounts are exempt from complying with the Accounting and Reporting by Charities: SORP (2015) under paragraph 22 of that document. There have been no changes to the financial position or financial performance of the fund as a result of the above. Revenue Dividends receivable from equity investments are recognised net of attributable tax credits and are credited to revenue when they are first quoted ex-dividend. Interest receivable from bank balances is accounted for on an accruals basis. Special dividends Special dividends are treated as revenue or capital depending on the facts of each particular case. Expenses Expenses of the fund are charged against revenue except for costs associated with the purchase and sale of investments which are allocated to the capital of the fund. The Annual management charge is initially charged to revenue but ultimately borne by the capital of the fund. Distributions Quarterly distributions are made on 31 August, 30 November, 28 February and 31 May. Dilution adjustment In certain circumstances the Manager may apply a dilution adjustment on subscription and redemptions of units. If applied, the dilution adjustment is paid to the fund. See scheme particulars for further details.

22

The Charity Equity Fund

Notes to the Accounts (continued) For the year ended 31 March 2016 and 31 March 2015 the dilution adjustments of £23,374 and £32,572 respectively have been shown separately in the Statement of Change in Net Assets Attributable to Unitholders, previously they were included within Amounts receivable on issue of units and Amounts payable on cancellation of units in the Statement of Change in Net Assets Attributable to Unitholders. This is a change in presentation, there have been no changes to the financial position or financial performance of the fund as a result of the above. Valuation Listed investments of the fund have been valued at market value at 18:00 on the balance sheet date. Market value is defined by the SORP as fair value which generally is the bid value of each security and the offer value for short positions. Forward foreign exchange contracts Open forward foreign exchange contracts are shown in the Portfolio Statement at market value and the net losses are reflected under Net capital (losses)/gains in the Notes to the Accounts. Foreign currencies Transactions in foreign currencies are translated into sterling at the exchange rate prevailing on the date of the transaction. Assets and liabilities valued in foreign currencies have been translated into sterling at the exchange rates prevailing at the balance sheet date and the net (losses)/gains are reflected under Net capital (losses)/gains in the Notes to the Accounts.

2 Net capital (losses)/gains

The net capital (losses)/gains during the year comprise: 2016 £000’s Non-derivative securities Forward foreign exchange contracts Foreign currency (losses)/gains Transaction costs Net capital (losses)/gains

2015 £000’s

(10,648)

9,177

(352)

(1,013)

(14)

280

(2)

(2)

(11,016)

8,442

23

The Charity Equity Fund

Notes to the Accounts (continued) The non-derivatives securities, forward foreign exchange contracts and foreign currency (losses)/gains on the previous page includes:

Realised gains

2016 £000’s

2015 £000’s

5,531

7,109

Unrealised (losses)/gains

(16,545)

1,335

Total (losses)/gains

(11,014)

8,444

Total realised gains for the year were £5,531,464 (2015 – £7,108,597) and the movement in unrealised (losses)/gains was £16,544,539 (2015 – £1,335,313). Included in realised gains for the year were unrealised gains recognised in previous years.

3 Revenue UK dividends Overseas dividends Bank interest Total revenue

4 Expenses

2016 £000’s

2015 £000’s

4,561

4,146

809

995

31

16

5,401

5,157

2016 £000’s

2015 £000’s

746

786

746

786

15

15

Payable to the Manager, associates of the Manager and agents of either of them: Annual management charge Payable to the Trustee, associates of the Trustee and agents of either of them: Trustee’s fees Safe custody fees

1

2

16

17

12

11

Other expenses: Audit fee Professional fee Total expenses

24

0

2

12

13

774

816

The Charity Equity Fund

Notes to the Accounts (continued) 5 Taxation

The Charity Equity Fund is a registered charity and its unitholders are restricted to those with charitable status in England and Wales and appropriate bodies in Scotland and Northern Ireland. Investment policy is set in recognition of the charitable restrictions and accordingly the revenue and the net capital gains are exempt from direct taxation in the United Kingdom. Indirect taxation suffered is included in the expenditure to which it relates. The Trustee, J.P.Morgan Europe Limited, arranges for the reclaim of tax on revenue received by the fund. However, it may not always be possible for overseas tax to be reclaimed. Quarterly distributions are paid without deduction of tax. (a) Analysis of the tax charge for the year

6 Distributions

2016 £000’s

2015 £000’s

Overseas withholding tax

66

79

Total taxation

66

79

Distributions The distributions take account of revenue received on the issue of units and revenue deducted on the cancellation of units, and comprise: 2016 £000’s

2015 £000’s

Quarterly Dividend distribution

2,067

1,865

Interim Dividend distribution

1,198

1,143

Quarterly Dividend distribution

1,183

1,037

Final Dividend distribution

1,187

1,143

5,635

5,188

42

53

Add: Revenue deducted on cancellation of units Deduct: Revenue received on issue of units

(165)

(143)

Distributions

5,512

5,098

Net revenue after taxation

4,561

4,262

746

786

0

2

205

46

0

2

5,512

5,098

Annual management charge taken to capital Expenses taken to capital Movement in undistributed revenue Equalisation on conversions Distributions

Details of the distributions per unit are set out in the Distribution Table on pages 33 and 34.

25

The Charity Equity Fund

Notes to the Accounts (continued) 7 Fair value hierarchy

Valuation technique Quoted prices for identical instruments in active markets

2016 Assets Liabilities £000’s £000’s 136,894

0

136,934

0

121

(3)

316

(419)

137,015

(3)

137,250

(419)

Valuation techniques using observable market data Total

2015 Assets Liabilities £000’s £000’s

8 Debtors

2016 £000’s

2015 £000’s

Amounts receivable for issue of units

24

1,020

Sales awaiting settlement

104

0

Accrued UK dividends

537

529

65

35

Accrued overseas dividends Accrued bank interest Overseas withholding tax recoverable Total debtors

9 Other creditors

2016 £000’s Amounts payable for cancellation of units

2

1

43

65

775

1,650

2015

£000’s

£000’s

60

£000’s 0

Accrued expenses Manager and Agents Annual management charge

65

68 65

68

Trustee and Agents Trustee’s fees

3

2

Safe custody fees

0

1

Transaction costs

1

0 4

Other accrued expenses Total other creditors

10 Contingent liabilities

26

3

12

11

141

82

There were no contingent liabilities at the balance sheet date (2015 – Nil).

The Charity Equity Fund

Notes to the Accounts (continued) 11 Related party transactions

The Manager exercises control over the fund and is therefore a related party by virtue of its controlling influence. Amounts paid during the year or due to the Manager at the balance sheet date are disclosed under Expenses and Other creditors in the Notes to the Accounts. The Manager acts as principal on all transactions of units in the fund. The aggregate monies received through the issue and cancellation of units are disclosed in the Statement of Change in Net Assets Attributable to Unitholders and Distributions in the Notes to the Accounts. Amounts due from or to the Manager in respect of unit transactions at the balance sheet date are disclosed under Debtors and Other creditors in the Notes to the Accounts. Units held or managed by the Manager or associates of the Manager as a percentage of the fund's net asset value at the balance sheet date were 66.38% (2015 – 61.24%).

12 Unit classes

The fund currently has three unit classes: A Income units, A Accumulation units and S Income units. The Annual management charge (plus VAT) is based on the average value of the fund, calculated on a monthly basis, and covers the remuneration of the Manager, the Investment Adviser and their overhead expenses and for each unit class is as follows: A Income units A Accumulation units S Income units

0.50% 0.50% 0.30%

The closing net asset value of each unit class, the closing net asset value per unit and the closing number of units in each class are given in the Comparative Tables on page 13 to 15. The distribution per unit class is given in the Distribution Table on pages 33 and 34. All classes have the same rights on winding up.

13 Derivative and other financial instruments

In accordance with the investment objective, the fund may hold certain financial instruments. These comprise: – securities held in accordance with the investment objective and policy; – cash and short term debtors and creditors arising directly from operations. The fund has little exposure to credit risk. The main risks arising from the fund's financial instruments are market price, foreign exchange, liquidity and interest rate risks. The Manager’s policies for managing these risks are summarised below and have been applied throughout the year and the prior year. 27

The Charity Equity Fund

Notes to the Accounts (continued) Market price risk The fund's investment portfolio is exposed to market price fluctuations which are monitored by the Manager in pursuance of the investment objective and policy. Adherence to investment guidelines and to investment and borrowing powers set out in the Scheme made by the Charity Commissioners on 11 June 2007 and the Scheme Particulars mitigates the risk of excessive exposure to any particular type of security or issuer. Foreign currency risk The fund invests in overseas securities and the balance sheet can be significantly affected by movements in foreign exchange rates. The Manager seeks to manage exposure to currency movements by using forward foreign exchange contracts. Revenue received in other currencies is translated to sterling on or near the date of receipt. The fund does not hedge or otherwise seek to avoid currency movement risk on accrued revenue. Currency risk profile The currency risk profile of the fund’s net assets and liabilities at the balance sheet date was as follows:

Currency

Monetary exposure £000’s

Non-monetary exposure £000’s

Total £000’s

Euro 2016

38

0

38

2015

(5,159)

5,098

(61)

2016

23,467

118,977

142,444

2015

23,735

118,872

142,607

2016

(17,490)

17,917

427

2015

(12,834)

12,964

130

Sterling

US dollar

Liquidity risk The primary source of this risk to the fund is the liability to unitholders for any cancellation of units. This risk is minimised by holding cash, readily realisable securities and access to overdraft facilities up to the amount prescribed by the COLL. Interest rate risk Interest receivable on bank balances will be affected by fluctuations in interest rates.

28

The Charity Equity Fund

Notes to the Accounts (continued) Interest rate risk profile of financial assets and financial liabilities The interest rate risk profile of financial assets and liabilities at the balance sheet date was as follows: Floating rate financial assets £000’s

Financial assets not carrying interest £000’s

Total £000’s

2016

0

38

38

2015

0

6,607

6,607

2016

6,319

137,322

143,641

2015

5,307

143,601

148,908

2016

0

17,986

17,986

2015

0

16,754

16,754

Financial liabilities not carrying interest £000’s

Total £000’s

2016

0

0

2015

6,668

6,668

2016

1,197

1,197

2015

6,301

6,301

2016

17,559

17,559

2015

16,624

16,624

Currency Euro

Sterling

US dollar

Currency Euro

Sterling

US dollar

There are no material amounts of non-interest bearing financial assets, other than equities which do not have a maturity date. Floating rate financial assets and financial liabilities Sterling denominated bank balances bear interest at rates based on the Sterling Overnight Index Average rate. Fair value of financial assets and financial liabilities There is no material difference between the value of the financial assets and liabilities, as shown in the balance sheet, and their fair value.

29

The Charity Equity Fund

Notes to the Accounts (continued) 14 Direct transaction costs

In the case of shares, broker commissions and transfer taxes/stamp duty are paid by the fund on each transaction. In addition, there is a dealing spread between buying and selling prices of the underlying investments. Unlike shares, other types of investments (such as bonds, money market instruments, derivatives) have no separately identifiable transaction costs; these costs form part of the dealing spread. Dealing spreads vary considerably depending on the transaction value and market sentiment.

2016

Principal £000’s

Commissions £000’s

Total cost £000’s

Commission % of principal

40,547

23

40,570

0.06

29,790

(15)

29,775

(0.05)

Purchases Equities Sales Equities Total cost of the fund’s average net asset value (%)

2015

0.03

Principal £000’s

Commissions £000’s

Total cost £000’s

Commission % of principal

23,045

11

23,056

0.05

0.00

Purchases Equities Corporate actions purchases: Equities

244

0

244

23,289

11

23,300

22,390

(11)

22,379

Sales Equities Total cost of the fund’s average net asset value (%)

(0.05)

0.02

Average portfolio dealing spread As at the balance sheet date the average portfolio dealing spread was 0.07% (2015 – 0.06%, based on close of business prices). This spread represents the difference between the values determined respectively by reference to the bid and offer prices of investments expressed as a percentage of the value determined by reference to the offer price.

30

The Charity Equity Fund

Notes to the Accounts (continued) 15 Units in issue reconciliation A Income units A Accumulation units S Income units

Number of units in issue as at 1.4.15

Number of units issued

Number of units cancelled

26,203,345

2,436,609

(920,099)

1,532,642

77,281

(22,478)

0

1,587,445

60,895,685

17,165,820

(4,531,175)

511,919

74,042,249

Number of units converted

Number of units in issue as at 31.3.16

(74,405) 27,645,450

31

The Charity Equity Fund

Remuneration Alternative Investment Fund Managers (AIFM) Remuneration Disclosures for Schroder Unit Trust Limited (SUTL) as at 31 December 2015 The following disclosures are required under the Alternative Investment Fund Managers Directive (AIFMD). These disclosures should be read in conjunction with the Schroders Remuneration Report on pages 68 to 86 of the 2015 Annual Report & Accounts (available on the Group’s website – www.schroders.com/ir), which provides more information on the activities of our Remuneration Committee and our remuneration principles and policies. Details of the AIFM Remuneration Code can be found at www.fca.org.uk, in the Senior Management Arrangements, Systems and Controls Sourcebook (SYSC 19B). The Remuneration Committee of Schroders plc has established an AIFM Remuneration Policy to ensure the requirements of the AIFM Remuneration Code are met proportionately for all AIFM Remuneration Code Staff. You can get details of the latest remuneration policy at www.schroders.com/Remunerationdisclosures. The total amount of remuneration paid by SUTL to its staff is nil as SUTL has no employees. AIFM Remuneration Code Staff of SUTL are employed and paid by other Schroders group companies. Employees who serve as Directors of SUTL receive no additional fees in respect of their role on the Board of SUTL. SUTL manages a total of £42,989 million assets under management, £16,753 million of which are in Alternative Investment Funds (AIFs). SUTL’s Code Staff are individuals in roles which can materially affect the risk of SUTL or any AIF it manages. These individuals are employed by and provide services to other companies in, and clients of, the Schroders Group. As a result, only a portion of remuneration for those individuals is included in the aggregate remuneration figures that follow, based on an objective apportionment to reflect the balance of each role. The aggregate total remuneration paid to the 140 AIFM Remuneration Code Staff of SUTL is £11,548,623, of which £3,891,982 is paid to Senior Management and £7,656,641 is paid to other AIFM Remuneration Code Staff.

32

The Charity Equity Fund

Distribution Table Quarterly distribution for the three months ended 30 June 2015

Group 1 Units purchased prior to 1 April 2015 Group 2 Units purchased on or after 1 April 2015 Net revenue 2015 p per unit

Equalisation 2015 p per unit

Distribution paid 31.8.15 p per unit

Distribution paid 31.8.14 p per unit

Group 1

5.4000

–

5.4000

4.9000

Group 2

0.0000

5.4000

5.4000

4.9000

Group 1

12.3000

–

12.3000

11.2000

Group 2

0.0000

12.3000

12.3000

11.2000

Group 1

0.7500

–

0.7500

–

Group 2

0.0783

0.6717

0.7500

–

A Income units

A Accumulation units

S Income units

Interim distribution for the three months ended 30 September 2015

Group 1 Units purchased prior to 1 July 2015 Group 2 Units purchased on or after 1 July 2015 Net revenue 2015 p per unit

Equalisation 2015 p per unit

Distribution paid 30.11.15 p per unit

Distribution paid 30.11.14 p per unit

Group 1

3.1000

–

3.1000

2.9500

Group 2

0.0000

3.1000

3.1000

2.9500

Group 1

7.3000

–

7.3000

7.0000

Group 2

0.0000

7.3000

7.3000

7.0000

Group 1

0.4000

–

0.4000

–

Group 2

0.0000

0.4000

0.4000

–

A Income units

A Accumulation units

S Income units

33

The Charity Equity Fund

Distribution Table (continued) Quarterly distribution for the three months ended 31 December 2015

Group 1 Units purchased prior to 1 October 2015 Group 2 Units purchased on or after 1 October 2015 Net revenue 2015 p per unit

Equalisation 2015 p per unit

Distribution paid 28.2.16 p per unit

Distribution paid 28.2.15 p per unit

Group 1

2.9000

–

2.9000

2.6000

Group 2

1.5391

1.3609

2.9000

2.6000

Group 1

6.4000

–

6.4000

5.8000

Group 2

0.0000

6.4000

6.4000

5.8000

Group 1

0.4300

–

0.4300

0.4000

Group 2

0.0000

0.4300

0.4300

0.4000

A Income units

A Accumulation units

S Income units

Final distribution for the three months ended 31 March 2016

Group 1 Units purchased prior to 1 January 2016 Group 2 Units purchased on or after 1 January 2016 Net revenue 2016 p per unit

Equalisation 2016 p per unit

Distribution payable 31.5.16 p per unit

Distribution paid 31.5.15 p per unit

Group 1

2.7500

–

2.7500

3.0000

Group 2

0.1963

2.5537

2.7500

3.0000

Group 1

8.2000

–

8.2000

7.4000

Group 2

0.0000

8.2000

8.2000

7.4000

Group 1

0.4000

–

0.4000

0.4000

Group 2

0.0000

0.4000

0.4000

0.4000

A Income units

A Accumulation units

S Income units

Equalisation

34

Equalisation applies to units purchased during the distribution period (Group 2 units). It is the average amount of revenue included in the purchase price of Group 2 units and is refunded to the holders of these units as a return of capital.

The Charity Equity Fund

Transactional Revenue On dual priced funds the Manager earns revenue from the spread (the difference between the creation price and the cancellation price) to the extent that in respect of any Dealing Day subscriptions are netted off against redemptions. The gross value of such revenue retained by the Manager in relation to the fund for the reporting period was £23.

35

The Charity Equity Fund

General Information Manager Schroder Unit Trusts Limited 31 Gresham Street London EC2V 7QA Authorised and regulated by the Financial Conduct Authority Investment Adviser Schroder Investment Management Limited 31 Gresham Street London EC2V 7QA Authorised and regulated by the Financial Conduct Authority Sub Adviser Schroder & Co 31 Gresham Street London EC2V 7QA Authorised and regulated by the Financial Conduct Authority Supervisory Board M. Pomery (Chairman) J. Brooke Turner D. Gibbons R.E. Hills M. Samuel

Trustee J.P. Morgan Europe Limited Chaseside Bournemouth BH7 7DA Authorised and regulated by the Financial Conduct Authority and Prudential Regulation Authority Registrar1 International Financial Data Services Limited IFDS House St Nicholas Lane Basildon Essex SS15 5FS Administration details Schroders FREEPOST RLTZ-CHSY-HBUT PO Box 1102 Chelmsford Essex CM99 2XX Investor Services 0800 718 777 [email protected] Dealing 0800 718 788 Fax 0870 043 4080

Independent Auditors PricewaterhouseCoopers LLP Atria One 144 Morrison Street Edinburgh EH3 8EX 1 The Trustee has delegated the function of Registrar to International Financial Data Services Limited.

The Charity Equity Fund is a registered charity. Its registered number is 1038563.

36

For further literature please contact Schroder Investor Services on 0800 718 777 or at [email protected], or visit our website at www.schroders.co.uk.

Issued in May 2016 by Schroder Unit Trusts Limited, 31 Gresham Street, London EC2V 7QA. Registered No: 04191730 England. Authorised and regulated by the Financial Conduct Authority. w34377 MR001BF16