Aberdeen Standard ACS I

Aberdeen StandardACS IAnnual Long ReportFor the period ended 30 November 2021

Contents

Aberdeen Standard ACS I2

Report of the Authorised Contractual Scheme Manager 3Statement of the Authorised Contractual Scheme Manager’s Responsibilities 7Authorised Contractual Scheme Manager’s Statement 7Statement of Depositary’s Responsibilities in respect of the Scheme andReport of the Depositary to the Unitholders of Aberdeen Standard ACS I 8Independent Auditor’s Report to the Unitholders of Aberdeen Standard ACS I 9Notes to the Financial Statements of Aberdeen Standard ACS I 12ASI Sustainable Index UK Equity Fund 17ASI Sustainable Index World Equity Fund 38Remuneration 72Further Information 75

Report of the Authorised Contractual Scheme Manager

Aberdeen Standard ACS I 3

Aberdeen Standard ACS I (the “Scheme”) is an authorised contractual scheme in co-ownership form, constituted as a non-UCITS retail scheme. The Scheme is registered and authorised in the United Kingdom by the Financial Conduct Authority (the "FCA") with effect from 23 October 2020. The Scheme is organised as an umbrella authorised contractual scheme comprising of 2 separate funds.

Appointments

Authorised Contractual Scheme ManagerAberdeen Standard Fund Managers Limited

Registered office Correspondence addressBow Bells House Sunderland1 Bread Street SR43 4DZLondonEC4M 9HH

Investment ManagerAberdeen Asset Managers Limited

Registered office Correspondence address10 Queen’s Terrace Bow Bells HouseAberdeen 1 Bread StreetAB10 1XL London

EC4M 9HH

DepositaryNorthern Trust Investor Services Limited

Registered office Correspondence address50 Bank Street 50 Bank StreetCanary Wharf Canary WharfLondon LondonE14 5NT E14 5NT

RegistrarNorthern Trust Global Services SE, acting through its UK Branch

Registered office Correspondence address5 at 10, rue du Château d’Eau 50 Bank StreetL-3364 Leudelange Canary WharfGrand-Duché de Luxembourg London

E14 5NT

Independent AuditorKPMG LLPSt Vincent Plaza319 St Vincent StreetGlasgowG2 5AS


Note:The Authorised Contractual Scheme Manager (the ACS Manager), Aberdeen Asset Managers Limited, abrdn (Asia) Limited, and Aberdeen Asset Management Inc are wholly owned subsidiaries of abrdn plc, and are accordingly associates.

The Investment Manager has responsibility for and full discretion in making all investment decisions in relation to each fund subject to, and in accordance with, the investment objectives and policies of the funds as varied from time to time, the provisions of the ACS Deed and any directions or instructions given from time to time by the ACS Manager. All fees charged by the Investment Manager will be borne by the ACS Manager.

The ACS Manager and Alternative Investment Fund Manager of the Scheme is Aberdeen Standard Fund Managers Limited, a private company limited by shares which was incorporated in England and Wales on 7 November 1962. Its ultimate holding company is abrdn plc, which is incorporated in Scotland.

Financial details and Fund Managers’ reviews of the individual funds for the period ended 30 November 2021 are given in the following pages of this report.

Each fund has an individual investment objective and policy and each differs in regard to the extent to which they concentrate on achieving income or capital growth. There may be funds added to the umbrella of Aberdeen Standard ACS I (with consent of the FCA and the Depositary) in the future.

The funds are valued on a mid-price basis and dealt at a single price regardless of whether a purchase or sale is being affected. The daily price for each fund appears on the abrdn website at www.abrdn.com.

The funds are segregated portfolios of assets and, accordingly, the assets of a fund belong exclusively to that fund and shall not be used to discharge directly or indirectly the liabilities of, or claims against, any other person or body, including the Scheme, or any other fund, and shall not be available for any such purpose.

Unitholders are not liable for the debts of the Scheme.

Significant event

Effective from 5 July 2021 Standard Life Aberdeen plc was renamed abrdn plc.

On 24 February 2022, Russia launched a military offensive against Ukraine resulting in widespread sanctions on Russia and heightened security and cyber threats. Market disruptions associated with the geopolitical event has had a global impact, and uncertainty exists as to the implications. Such disruptions can adversely affect assets of funds and performance thereon, specifically Russian and Ukrainian assets.

The outlook for many capital markets is significantly different now compared to 30 November 2021, the period end of Aberdeen Standard ACS I. As a result, the NAVs of certain funds have fluctuated since the period end. The subsequent events note within the fund financial statements provides a quantification of this fluctuation in NAV. The Management Company has delegated various tasks to abrdn’s Investor Protection Committee (IPC). The IPC is responsible for ensuring the fair treatment of investors.

The IPC undertakes daily reviews of the following:

• Market liquidity across each asset class and fund;• Asset class bid-offer spread monitoring;• Review of fund level dilution rate appropriateness;• Review of daily subscriptions / redemptions to anticipate any potential concerns to meet redemption proceeds;• Any requirement to gate or defer redemptions;• Any requirement to suspend a fund(s); and• Any fair value price adjustments at a fund level.

abrdn’s Valuation and Pricing Committee (VPC) also continues to review the valuation of assets and the recoverability of income from those assets making appropriate adjustments where necessary. The VPC is made up of a wide range of specialists across abrdn with a wide range of experience in asset pricing. The Management Company has also evaluated, and will continue to evaluate, the operational resilience of all service providers. The Company’s key suppliers do not have operations pertaining to the Company in Ukraine or Russia.

As at 28 March 2022, Aberdeen Standard ACS I funds have not been suspended and based on the Manager’s assessment of the factors noted above, has adequate financial resources to continue in operation.


Developments and prospectus updates since 12 November 2020 • On 12 November 2020, the ASI Sustainable Index UK Equity Fund and ASI Sustainable Index World Equity Fund were

launched;• On 31 May 2021, Gary Marshall resigned as a director of Aberdeen Standard Fund Managers Limited;• On 31 May 2021, Allison Donaldson resigned as a director of Aberdeen Standard Fund Managers Limited;• On 31 May 2021, Robert McKillop was appointed as a director of Aberdeen Standard Fund Managers Limited;• On 31 May 2021, Claire Marshall was appointed as a director of Aberdeen Standard Fund Managers Limited;• On 14 July 2021, the ASI Sustainable Index World Equity Fund X5 Accumulation unit class was closed;• On 22 October 2021, the ASI Sustainable Index World Equity Fund B2 Income unit class was launched;• On 5 November 2021, Robert McKillop resigned as a director of Aberdeen Standard Fund Managers Limited;• On 10 November 2021, Emily Smart was appointed as a director of Aberdeen Standard Fund Managers Limited;• On 10 November 2021, Denise Thomas was appointed as a director of Aberdeen Standard Fund Managers Limited;• On 4 January 2022, Rowan Mcnay was appointed as a director of Aberdeen Standard Fund Managers Limited;• On 5 January 2022, Clare Marshall resigned as a director of Aberdeen Standard Fund Managers Limited;• On 24 February 2022, Adam Shanks was appointed as a director of Aberdeen Standard Fund Managers Limited;• The list of funds managed by the ACS Manager was updated, where appropriate;• Performance and dilution figures were refreshed, where appropriate;• The list of sub-custodians was refreshed, where appropriate; and• The list of eligible markets was refreshed, where appropriate.• The list of sub-investment advisors to the funds was refreshed, where appropriate. Change in Depositary The depositary of the Scheme has changed with effect from 18 December 2021. The depositary is the entity we are required by regulation to appoint to carry out certain services in relation to the Scheme, namely, safekeeping of the assets, cash monitoring and regulatory oversight.

The depositary of the Scheme was Northern Trust Global Services SE, UK branch (“NTGS-UK”). NTGS-UK is the UK branch of Northern Trust Global Services SE, which is a bank established in Luxembourg, and was permitted to provide trustee and depositary services into the UK by virtue of having extra permissions in the UK.

As a consequence of the UK’s decision to leave the European Union, however, the UK financial services regulator which regulates NTGS-UK, the Financial Conduct Authority (“FCA”), has provided that UK branches of EU banks are no longer able to provide trustee and depositary services into the UK and those services have to be provided from a UK incorporated company. The FCA has provided a grace period for firms to implement the new rules which came into force on 1 January 2021.

In order to comply with the new rules, Northern Trust has established Northern Trust Investor Services Limited (“NTISL”) to be the new trustee and depositary. NTISL is a company established in England and Wales and is authorised by the FCA to be a trustee and depositary. NTISL will provide the same services as NTGS-UK with the same processes and procedures in place. The change of depositary took place on 18 December 2021 and we have amended the Prospectus of the Scheme to reflect the details of NTISL as from that date.

Assessment of Value In 2017, the FCA published the final Asset Management Market Study. This introduced (among other reforms) new governance rules with the aim of enhancing duty of care and ensuring the industry acts in investors’ best interests. The rules were outlined in the FCA policy statement PS18/8 and came into effect from 30 September 2019. As a result, the ACS Manager is required to perform a detailed assessment on whether funds are “providing value to investors”. The resulting findings will be published within 4 months of the fund year-end date and can be found on the ‘Fund Centre’ pages on the abrdn website at www.abrdn.com.

Cross holding information There were no cross holdings between funds in Aberdeen Standard ACS I as at 30 November 2021.

Market Review for the period 12 November 2020 to 30 November 2021 Global equity markets broadly rose over the period, with the UK, US and Europe all performing well. However, China and Latin America were among the weakest markets. Following the COVID-19 outbreak, and the subsequent lockdown restrictions and collapse of economic activity, markets began to recover as investors hoped that economies would return to some kind of normality.

Markets surged in November when Joe Biden won the US presidential election. The US stock market then surpassed all-time highs at the end of 2020, driven by the approval of the COVID-19 fiscal relief package and positive results from vaccine trials. Accelerating vaccine rollouts and the easing of restrictions on social mobility helped boost hopes of a


global economic rebound. However, investors grew worried that the global spread of the Delta variant, alongside global supply-chain issues, would hamper the economic recovery. Global equities fell back at the end of the period as news of the novel ‘Omicron’ COVID-19 variant left investors concerned about a possible return of restrictions.

In fixed income, government bond prices fell over the 12 months. Lockdown restrictions heightened fears of a deep recession, with the ‘risk-off’ environment boosting government bond prices as investors fled to their perceived safety. However, rising optimism about vaccines and concerns that an economic recovery will fuel sharp rises in inflation helped prices to fall. Despite expectations of a withdrawal of central bank support, the discovery of the Omicron variant left investors preferring the safety of government debt once again, pushing prices higher and yields lower. Corporate bonds performed well, as stimulus measures and rising optimism helped bolster the market, although they later fell slightly as investor fears of forthcoming central bank action increased.

Outlook as at 30 November 2021 Within this document, the Investment Manager’s reports for the individual funds contain our view on the market outlook for that portfolio. These views were correct at the time of writing. However, since the end of the reporting period, existing tensions between Russia and Ukraine have escalated into full-blown conflict.

The resulting invasion of Ukraine has therefore thrown previous assumptions into doubt and is creating extensive uncertainty on the political and economic front. Market analysts are reworking expectations for inflation and interest rate policy as they assess the effects of the conflict. The geopolitical conflict is also challenging the western world, which will likely result in higher defence spending and a rethinking of Europe’s dependency on Russian oil and gas.

The situation remains fluid and growth is likely to be lower, inflation higher and the trade of goods and commodities severely affected. Against this background, we will continue to follow developments closely, taking whatever steps are necessary in the interests of our customers, unitholders and other stakeholders.

We will, of course, also aim to keep investors informed as events unfold. You can find our latest insights and updates at https://www.abrdn.com/en-gb.

Statement of the Authorised Contractual Scheme Manager’s Responsibilities


The Collective Investment Schemes sourcebook published by the FCA, (“the COLL Rules”) require the Authorised Contractual Scheme Manager (“ACS Manager”) to prepare financial statements for each annual accounting period which give a true and fair view of the financial position of the Scheme and of the net revenue and net capital gains or losses on the property of the Scheme for the period.

In preparing the financial statements the ACS Manager is responsible for:

• selecting suitable accounting policies and then apply them consistently;

• making judgements and estimates that are reasonable and prudent;

• following UK accounting standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland;

• complying with the disclosure requirements of the Statement of Recommended Practice for UK Authorised Funds issued by the Investment Association in May 2014;

• keeping proper accounting records which enable it to demonstrate that the financial statements as prepared comply with the above requirements;

• assessing the Scheme and its funds’ ability to continue as a going concern, disclosing, as applicable, matters related to going concern;

• using the going concern basis of accounting unless they either intend to liquidate the Scheme or its funds or to cease operations, or have no realistic alternative but to do so;

• such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; and

• taking reasonable steps for the prevention and detection of fraud and irregularities.

The ACS Manager is responsible for the management of the Scheme in accordance with its Instrument of Incorporation, the Prospectus and the COLL Rules.

The ACS Manager is responsible for the maintenance and integrity of the corporate and financial information included on its website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Authorised Contractual Scheme Manager’s Statement

In accordance with the requirements of the COLL sourcebook as issued and amended by the Financial Conduct Authority, we hereby certify the report on behalf of Aberdeen Standard Fund Managers Limited, the Authorised Contractual Scheme Manager.

Aron Mitchell Denise ThomasDirector DirectorAberdeen Standard Fund Managers Limited Aberdeen Standard Fund Managers Limited28 March 2022 28 March 2022

Statement of Depositary’s Responsibilities in respect of the Scheme and Report of the Depositary to the Unitholders of Aberdeen Standard ACS I


The Depositary must ensure that the Scheme is managed in accordance with the Financial Conduct Authority’s Collective Investment Schemes Sourcebook, and, from 22 July 2014 the Investment Funds Sourcebook, the Financial Services and Markets Act 2000, as amended, the Collective Investment in Transferable Securities (Contractual Scheme) Regulations 2013 (together “the Regulations”) and the Contractual Scheme 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 Scheme and its investors.

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

The Depositary must ensure that:

• the Scheme’s cash flows are properly monitored and that cash of the Scheme is booked in cash accounts in accordance with the Regulations;

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

• the value of units of the Scheme are calculated in accordance with the Regulations;

• any consideration relating to transactions in the Scheme’s assets is remitted to the Scheme within the usual time limits;

• the Scheme’s income is applied in accordance with the Regulations; and

• the instructions of the Alternative Investment Fund Manager (“the AIFM”) are carried out (unless they conflict with the Regulations).

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

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

(i) has carried out the issue, sale, redemption and cancellation, and calculation of the price of the Scheme’s units and the application of the Scheme’s income in accordance with the Regulations and the Scheme documents; and

(ii) has observed the investment and borrowing powers and restrictions applicable to the Scheme.

Northern Trust Investor Services LimitedUK Trustee and Depositary ServicesLondon28 March 2022

Independent auditor’s report to the unitholders of Aberdeen Standard ACS I (‘the Scheme’)


OpinionWe have audited the financial statements of the Scheme for the period from 12 November 2020 to 30 November 2021 which comprise the Statements of Total Return, the Statements of Changes in Net Assets Attributable to Unitholders, the Balance Sheets, the Related Notes and Distribution Tables for each of the Scheme’s funds listed on the contents page and the accounting policies set out on pages 12 to 16.

In our opinion the financial statements:

• give a true and fair view, in accordance with UK accounting standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland, of the financial position of each of the funds as at 30 November 2021 and of the net revenue and the net capital gains on the property of each of the funds for the period then ended; and

• have been properly prepared in accordance with the Instrument of Incorporation, the Statement of Recommended Practice relating to Authorised Funds, and the COLL Rules.

Basis for opinionWe conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities are described below. We have fulfilled our ethical responsibilities under, and are independent of the Scheme in accordance with, UK ethical requirements including the FRC Ethical Standard.

We have received all the information and explanations which we consider necessary for the purposes of our audit and we believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion.

Going concernThe Authorised Contractual Scheme Manager has prepared the financial statements on the going concern basis as they do not intend to liquidate the Scheme or its funds or to cease their operations, and as they have concluded that the Scheme and its funds’ financial position means that this is realistic. They have also concluded that there are no material uncertainties that could have cast significant doubt over their ability to continue as a going concern for at least a year from the date of approval of the financial statements (“the going concern period”).

In our evaluation of the Authorised Contractual Scheme Manager's conclusions, we considered the inherent risks to the Scheme's and its fund’s business model and analysed how those risks might affect the Scheme's and its fund’s financial resources or ability to continue operations over the going concern period.

Our conclusions based on this work:

• we consider that the Authorised Contractual Scheme Manager’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate;

• we have not identified and concur with the Authorised Contractual Scheme Manager’s assessment that there is not, a material uncertainty related to events or conditions that, individually or collectively, may cast significant doubt on the Scheme’s and its fund’s ability to continue as a going concern for the going concern period.

However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the above conclusions are not a guarantee that the Scheme or its funds will continue in operation.

Fraud and breaches of laws and regulations – ability to detect Identifying and responding to risks of material misstatement due to fraud To identify risks of material misstatement due to fraud (“fraud risks”) we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included:

• Enquiring of directors as to the Scheme’s high-level policies and procedures to prevent and detect fraud, as well as whether they have knowledge of any actual, suspected or alleged fraud;

• Assessing the segregation of duties in place between the ACS Manager, the Depositary, the Administrator and the Investment Manager;


• Reading ACS Manager board minutes.

As required by auditing standards, we perform procedures to address the risk of management override of controls, in particular the risk that management may be in a position to make inappropriate accounting entries. On this audit we do not believe there is a fraud risk related to revenue recognition because the revenue is principally non- judgemental and based on publicly available information, with limited opportunity for manipulation. We did not identify any additional fraud risks.

We evaluated the design and implementation of the controls over journal entries and other adjustments and made inquiries of the Administrator about inappropriate or unusual activity relating to the processing of journal entries and other adjustments. We substantively tested all material post-closing entries and, based on the results of our risk assessment procedures and understanding of the process, including the segregation of duties between the ACS Manager and the Administrator, no further high-risk journal entries or other adjustments were identified.

Identifying and responding to risks of material misstatement due to non-compliance with laws and regulations We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience and through discussion with the ACS Manager and the Administrator (as required by auditing standards) and discussed with the Directors the policies and procedures regarding compliance with laws and regulations.

The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the Scheme is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related authorised fund legislation maintained by the Financial Conduct Authority) and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

Secondly, the Scheme is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: money laundering, data protection and bribery and corruption legislation recognising the Company’s activities. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and the Administrator and inspection of regulatory and legal correspondence, if any. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.

Context of the ability of the audit to detect fraud or breaches of law or regulation Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.

In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.

Other informationThe Authorised Contractual Scheme Manager is responsible for the other information presented in the Annual Report together with the financial statements. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except as explicitly stated below, any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether, based on our financial statements audit work, the information therein is materially misstated or inconsistent with the financial statements or our audit knowledge. Based solely on that work:

• we have not identified material misstatements in the other information; and

• in our opinion the information given in the Authorised Contractual Scheme Manager’s Report is consistent with the financial statements.

Matters on which we are required to report by exceptionWe have nothing to report in respect of the following matters where under the COLL Rules we are required to report to you if, in our opinion:

• proper accounting records for the Scheme have not been kept; or


• the financial statements are not in agreement with the accounting records.

Authorised Contractual Scheme Manager’s responsibilitiesAs explained more fully in their statement set out on page 7 the Authorised Contractual Scheme Manager is responsible for: the preparation of financial statements which give a true and fair view; such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; assessing the Scheme and its funds’ ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and using the going concern basis of accounting unless they either intend to liquidate the Scheme or its funds or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilitiesOur objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue our opinion in an auditor’s report. Reasonable assurance is a high level of assurance, but does not guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

A fuller description of our responsibilities is provided on the FRC’s website at www.frc.org.uk/auditorsresponsibilities.

The purpose of our audit work and to whom we owe our responsibilitiesThis report is made solely to the Scheme’s unitholders, as a body, in accordance with Rule 4.5.12 of the Collective Investment Schemes sourcebook (‘the COLL Rules’) issued by the Financial Conduct Authority under the Financial Services and Markets Act 2000. Our audit work has been undertaken so that we might state to the Scheme’s unitholders those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Scheme and the Scheme’s unitholders as a body, for our audit work, for this report, or for the opinions we have formed.

Grant Archer for and on behalf of KPMG LLP, Statutory AuditorChartered Accountants St Vincent Plaza,319 St Vincent Street GlasgowG2 5AS 28 March 2022

Notes to the Financial Statements ofAberdeen Standard ACS I


1. Accounting policies

(a) Basis of preparationThe financial statements have been prepared for all funds on a historical cost basis, as modified by the revaluation of investments, and in accordance with the Statement of Recommended Practice (SORP) for Financial Statements of Authorised Funds issued by the Investment Management Association in May 2014 (IMA SORP 2014), Financial Reporting Standard (FRS) 102 and United Kingdom Generally Accepted Accounting Practice.

ACS Manager has considered the impact of the emergence and spread of COVID-19 and potential implications on future operations of the funds of reasonably plausible downside scenarios. The ACS Manager has undertaken a detailed assessment, and continues to monitor, each fund’s ability to meet its liabilities as they fall due, including liquidity, declines in global capital markets and investor redemption levels. Based on this assessment, the funds continue to be open for trading and the ACS Manager is satisfied the funds have adequate financial resources to continue in operation for at least 12 months and accordingly it is appropriate to adopt the going concern basis in preparing the financial statements.

(b) Valuation of investmentsListed investments have been valued at fair value as at the close of business on the reporting date. The SORP defines fair value as the market value of each security, in an active market, this is generally the quoted bid price.

Unlisted, unapproved, illiquid or suspended securities are valued at the ACS Manager’s best estimate of the amount that would be received from an immediate transfer at arm’s length. The ACS Manager has appointed a Fair Value Pricing (FVP) committee to review valuations.

Collective Investment Schemes are valued by reference to their net asset value. Dual priced funds have been valued at the cancellation price. Single priced funds have been valued using the single price.

Any open positions in derivative contracts or forward foreign currency transactions at the period end are included in the Balance Sheet at their mark to market value.

(c) Foreign ExchangeAssets and liabilities denominated in foreign currencies are translated into Sterling at the prevailing exchange rates as at the close of business on the reporting date.

Foreign currency transactions are translated at the rates of exchange ruling on the date of such transactions. Exchange differences on such transactions follow the same treatment as the principal amounts.

(d) DilutionIn certain circumstances (as detailed in the Prospectus) the ACS Manager may apply a dilution adjustment on the issue or cancellation of units, which is applied to the capital of the fund on an accruals basis. The adjustment is intended to protect existing investors from the costs of buying or selling underlying investments as a result of large inflows or outflows from the fund.

(e) RevenueOverseas dividends are grossed up at the appropriate rate of withholding tax and the tax consequences are shown within the tax charge.

Revenue from collective investment schemes is recognised when the investments are quoted ex dividend.

Accumulation distributions from shares held in collective investment schemes are reflected as revenue and form part of the distribution.

Equalisation received from distributions or accumulations on units or shares in underlying investments is treated as capital and deducted from the cost of the investment.

Revenue from offshore funds is recognised when income is reported by the offshore fund operator.

Interest on bank deposits is recognised on an accruals basis.

Interest from short-term deposits is recognised on an accruals basis.


Stock dividends are recognised as revenue when they are quoted ex dividend. In the case of enhanced stock dividends, the value of the enhancement is recognised as capital.

Special dividends may be treated as repayments of capital or as revenue dependent on the facts of the particular case. Where receipt of a special dividend results in a significant reduction in the capital value of the holding, then the special dividend will be recognised as capital so as to ensure that the matching principle is applied to gains and losses. Otherwise, the special dividends are recognised as revenue.

Underwriting commission is taken to revenue and recognised when the issue takes place, except where the fund or Trust is required to take up all or some of the shares underwritten in which case an appropriate proportion of the commission received is deducted from the cost of the relevant shares.

Distributions from Brazilian corporations may take the form of interest on capital as an alternative to making dividend distributions. Interest on capital distributions are recognised on an accruals basis.

Management fee rebates from collective investment schemes are recognised as revenue or capital on a consistent basis to how the underlying scheme accounts for the management fee. Where such rebates are revenue in nature, the income forms part of the distribution.

For dividends received from US Real Estate Investment Trusts ("REITs"), on receipt of the capital/revenue split from the REITs, the allocation of the dividend is adjusted within the financial statements.

(f) ExpensesThe underlying funds may have a number of different unit classes. Each unit class may suffer a different ACS Manager’s fixed fee.

The ACS Manager has implemented a “fixed fee”. The fixed fee is intended to be an all-encompassing expense subject to certain limited exceptions. Therefore, the ACS Manager’s fixed fee will, unless specified otherwise, cover all costs and expenses connected with the management and operating activities of the relevant fund, including: investment management and advisory fees, administration, registration, transfer agency, custody fees, depositary fees and other operating expenses, but exclude such non-recurring and extraordinary or exceptional costs and expenses (if any) as may arise from time to time such as, without limitation: material litigation and withholding taxes deducted from interest and dividend payments to the relevant fund, and stamp duties or other documentary transfer taxes, or similar duties and brokerage fees (excluding costs for research) arising on the purchase or sale of securities by the relevant fund.

All expenses other than those relating to the purchase and sale of investments are included in expenses in the statement of total return.

The ACS Manager’s fixed fee is charged to the revenue property of the respective funds.

(g) TaxationThe Scheme is constituted as an Authorised Contractual Scheme taking the form of a co-ownership scheme. As a consequence of being so constituted, the funds of the Scheme may be treated as tax transparent for the purposes of revenue and/or gains by relevant taxing jurisdictions where unitholders are subject to taxation and/or from which any underlying revenue or gains arising to the fund are derived. Depending on the jurisdictions concerned, this treatment may apply notwithstanding that the revenue and gains of the fund may not be distributed to unitholders. Such tax transparency cannot, however, be guaranteed.

(h) DistributionsThe revenue from the funds’ investments accumulates during each accounting period. If revenue exceeds expenses during the period, the net revenue of the funds is available for distribution (or re-investment) at unit class level to the unitholders in accordance with the ACS Regulations. If expenses exceed revenue during the period, the net revenue shortfall may be funded from capital.

Gains and losses on non-derivative investments and currencies, whether realised or unrealised, are taken to capital and are not available for distribution. For derivative investments, where positions are undertaken to enhance capital return, the gains and losses are taken to capital, otherwise where they generate revenue, the amounts are included as revenue or expense and affect distributions.

(i) EqualisationEqualisation appears within the fund reports as part of the distribution. This represents the net revenue in the funds unit price attached to the issue and cancellation of units. It will form part of any distributions at the period end attributable to unitholders.

(j) DerivativesFunds with strategies that permit it, can make use of derivatives. Derivatives can be used to reduce risk or cost, or


to generate additional capital or income consistent with the risk profile of the fund (often referred to as "Efficient Portfolio Management"). Some strategies may permit use of derivatives with a higher or lower frequency or for investment purposes. The accounting for each derivative is applied consistently in line with the derivative type; the valuation policy and market convention. Market convention for derivatives is often based on total return; however where a fund strategy or derivative type is defined with revenue in mind the accounting treatment can have a revenue element, forming part of the distribution, highlighted in the distribution policy. The Statement of Total Return captures all realised and unrealised gains regardless of nature. The Portfolio Statement will show the individual derivative contracts as net position in line with the valuation policy.

There are three broad transaction types: derivatives create a future asset or liability recognised as unrealised profit or loss until the date of maturity where cash is exchanged; swaps realise amounts of profit or loss in line with an agreed schedule until maturity; options recognise a premium paid or received, with the right or obligation to buy "call" or sell "put" an asset, exercised when the option owner is in the money. These transaction types break into three broad strategies.

Funds with strategies spanning multiple currencies can make use of the following transactions in line with their policy: forward currency exchange contracts (a derivative of the exchange rate); cross currency swaps; currency options and other currency derivatives. These transactions relate to the future expectations of foreign exchange rates. The future expectation is based on the current interest rates projected to a forward date. Currency derivatives exchange one currency for another currency at a future date.

Funds with strategies in debt instruments (bonds) can make use of the following transactions in line with their policy: bond future contracts (a derivative of the bond market or asset); credit default swaps; interest rate swaps; overnight index swaps; inflation swaps; interest rate options; swaptions; total return bond swaps and other bond related derivatives. These transactions relate to the future expectations on debt assets. The future expectations can be based on an individual asset or a market. Bond derivatives can relate to the future credit expectations; interest rate expectations; inflation expectations or a combination of these.

Funds with strategies in equity instruments (shares) can make use of the following transactions in line with their policy: equity future contracts (a derivative of the equity market or asset); variance swaps (differences in volatility between two assets); equity options; total return equity swaps and other equity related derivatives. These transactions relate to the future expectations on equity assets. The future expectations can be based on an individual asset or a market. Equity derivatives relate to the future expectations in equity markets. Equity markets are subject to the variables found in bond markets, however there is not an explicit relationship to derive a price.

(k) Collateral and marginFunds undertaking derivative transactions and exchange investment assets based on legal agreements. In line with collective investment scheme rules and ASI policy collateral or margin must be exchanged to limit the exposure to investors should an agreement fail. Collateral is exchanged at an agreement level on a net basis following ASI policy at a counterparty level within a fund. Collateral is monitored and where required exchanged daily. Collateral is bilateral in nature exchanged between the two counterparties in a transaction. Margin is similar to collateral limiting the risk for investors. The main difference is the exchange of initial margin, required before a contract is opened. Once opened the exchange of variation margin is monitored and where required exchanged daily. Both collateral and margin do not affect the valuation of the asset they are protecting or the fund unless re-hypothecated (used to buy) into another investment asset. All funds do not re-hypothecate but may use liquidity collective investments to manage cash effectively.

2. Risk management policiesGeneric risks that the abrdn range are exposed to and the risk management techniques employed are disclosed below. Numerical disclosures and specific risks, where relevant, are disclosed within the financial statements.

The Financial Conduct Authority (FCA) Collective Investment Schemes Sourcebook (COLL) and FCA Funds Sourcebook (FUND) rules require the Management Company to establish, implement and maintain an adequate and documented Risk Management Process (RMP) for identifying the risks they manage, or might be, exposed to. The RMP must comprise of such procedures as are necessary to enable abrdn to assess the exposure of each fund it manages to market risk, liquidity risk, counterparty risk, operational risk and all other risks that might be material.

abrdn functionally and hierarchically separates the functions of risk management from the operating units and portfolio management functions, to ensure independence and avoid any potential or actual conflicts of interest. The risk management function has the necessary authority, access to all relevant information, staff and regular contact with senior management and the Board of Directors of the Company. The management of investment risk within abrdn is organised across distinct functions aligned to the well-established ‘three lines of defence’ model.

1. Risk ownership, management and control.2. Oversight of risk, compliance and conduct frameworks.3. Independent assurance, challenge and advice.


The risk management process involves monitoring funds on a regular and systematic basis to identify, measure and monitor risk and where necessary escalate appropriately, including to the relevant Board, any concerns and proposed mitigating actions.

The risk team, in line with client expectations and the investment process, develops the risk profiles for the funds in order to set appropriate risk limits. Regulatory limits as well as those agreed, are strictly enforced to ensure that abrdn does not inadvertently (or deliberately) breach them and add additional risk exposure. In addition, there is an early warnings system of potential changes in the portfolio risk monitoring triggers. Where possible, these are coded into the front office dealing system, in a pre-trade capacity, preventing exposures or breaching limits before the trade is actually executed.

Risk Definitions & Risk Management Processes

i) Market Risk is the risk that economic, market or idiosyncratic events cause a change in the market value of Client assets. Market Risk can be broadly separated into two types:

(1) Systematic risk stems from any factor that causes a change in the valuation of groups of assets. These factors may emerge from a number of sources, including but not limited to economic conditions, political events or actions, the actions of central banks or policy makers, industry events or, indeed, investor behaviour and risk appetite.

(2) Specific or Idiosyncratic Risk, which is the part of risk directly associated with a particular asset, outside the realms of, and not captured by Systematic Risk. In other words, it is the component of risk that is peculiar to a specific asset, and may manifest itself in various guises, for example: corporate actions, fraud or bankruptcy.

Portfolios are subject to many sub-categories of market risk. Many of these risks are interlinked and not mutually exclusive. Examples of these types of investment risk include: Country risk; Sector risk; Asset-class risk; Inflation/deflation risk; Interest rate risk; Currency risk; Derivatives risk; Concentration risk; and Default risk. Factors that cause changes in market risks include: future perceived prospects (i.e. changes in perception regarding the future economic position of countries, companies, sectors, etc.); shifts in demand and supply of products and services; political turmoil, changes in interest rate/inflation/taxation policies; major natural disasters; recessions; and terrorist attacks.

There are several ways in which to review and measure investment risk. The risk team recognises that each method is different and has its own unique insights and limits, and applies the following measurements for each fund, where relevant:

• Leverage: has the effect of gearing a fund’s expected performance by allowing it to gain greater exposure to underlying investment opportunities (gains and losses). The higher the leverage the greater the risk (potential loss).

• Value-at-Risk (VaR) and Conditional VaR (CVaR): VaR measures with a degree of confidence the maximum the fund could expect to lose in any given time frame. Assuming a normal (Gaussian) distribution, this is a function of the volatility of the fund’s returns. The higher the volatility, the higher the VaR, the greater the risk. CVaR calculates the expected tail loss, under the assumption that the VaR has been reached.

• Volatility, Tracking Error (TE): Volatility measures the size of variation in returns that a fund is likely to expect. The higher the volatility the higher the risk. TE measures the expected magnitude of divergence of returns between the fund and benchmark over a given time.

• Risk Decomposition: Volatility, tracking error and VaR may be broken down to show contribution from market related factors (“Systematic” Risk) and instrument specific (Idiosyncratic Risk). This is not a different measure as such, but is intended to highlight the sources of volatility and VaR.

• Concentration Risk: By grouping the portfolio into various different exposures (e.g. country, sector, issuer, asset, etc.), we are able to see where, if any, concentration risk exists.

• Stress Tests and Scenario Analysis: This captures how much the current portfolio will make or lose if certain market conditions occur.

• Back Testing: This process helps to assess the adequacy of the VaR model and is carried out in line with UCITS regulatory requirements (FCA COLL 6.12). Excessive levels of overshoots and the reasons behind them are reported to the Board.

To generate these risk analytics the risk team relies on third party calculation engines, such as APT, Bloomberg PORT+, RiskMetrics, UBS Delta and Axioma. Once the data has been processed, it is analysed by the risk team, generally reviewing absolute and relative risks, change on month and internal peer analysis. Any issues or concerns that are raised through the analysis prompt further investigation and escalation if required. Breaches of hard limits


are also escalated immediately. All client mandated and regulatory risk limits are monitored on a daily basis.

Stress tests are intended to highlight those areas in which a portfolio would be exposed to risk if the current economic conditions were likely to change. An economic event may be a simple change in the direction of interest rates or return expectations, or may take the form of a more extreme market event such as one caused through military conflict. The stress test itself is intended to highlight any weakness in the current portfolio construction that might deliver unnecessary systematic exposure if the market were to move abruptly.

Stress testing is performed on a regular basis using relevant historical and hypothetical scenarios.

ii) Liquidity Risk is defined as the risk that a portfolio may need to raise cash or reduce derivative positions on a timely basis either in reaction to market events or to meet client redemption requests and may be obliged to sell long term assets at a price lower than their market value. Liquidity is also an important consideration in the management of portfolios: Portfolio Managers need to pay attention to market liquidity when sizing, entering and exiting trading positions.

Measuring liquidity risk is subject to three main dimensions:

• Asset Liquidity Risk – how quickly can assets be sold.

• Liability Risk - managing redemptions as well as all other obligations arising from the liabilities side of the balance sheet.

• Contingency Arrangements or Liquidity Buffers – utilising credit facilities etc.

Liquidity Risk Management Frameworkabrdn has a liquidity risk management framework in place applicable to the funds and set out in accordance with its overall Risk Management Process, relative to the size, scope and complexity of the funds. Liquidity assessment and liquidity stress testing is typically performed monthly, monitoring both the asset and liability sides. Asset side stressed scenarios are considered based on the nature of different asset classes and their liquidity risks to demonstrate the effects of a market stress on the ability to sell-down a fund. Liability side analysis includes stress scenarios on the investor profile as well as liabilities on the balance sheet. Any particular concerns noted or liquidity risk limit breaches are escalated to the relevant Committees and Boards, if material.

iii) Counterparty credit risk is the risk of loss resulting from the fact that the counterparty to a transaction may default on its obligations prior to the final settlement of the transaction’s cash flow. Credit risk falls into both market risk and specific risk categories. Credit risk is the risk that an underlying issuer may be unable (or unwilling) to make a payment or to fulfil their contractual obligations. This may materialise as an actual default or, or to a lesser extent, by a weakening in a counterparty’s credit quality. The actual default will result in an immediate loss whereas, the lower credit quality will more likely lead to mark-to-market adjustment.

Transactions involving derivatives are only entered into with counterparties having an appropriate internal credit rating that has been validated by the credit research team and approved by the relevant credit committee. Appropriate counterparty exposure limits will be set and agreed by these committees and the existing credit exposures will be assessed against these limits.

iv) Operational risk can be defined as the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. Operational risk also includes the breakdown of processes to comply with laws, regulations or directives.

Operational Risk ManagementAn Operational Risk Management Framework is in place to identify, manage and monitor appropriate operational risks, including professional liability risks, to which the Management Company and the funds are or could be reasonably exposed. The operational risk management activities are performed independently as part of one of the functions of the Risk Division.

The Group’s Risk Management Framework is based upon the Basel II definition of operational risk which is “the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events”.

The Group’s management of operational risk is therefore aimed at identifying risks in existing processes and improving existing controls to reduce their likelihood of failure and the impact of losses. The Group has developed a framework that embodies continuous improvement to internal controls and ensures that the management of risk is embedded in the culture of the Group.

The identification, management, monitoring and resolution of events, risks and controls are facilitated via the Group's risk management system, Shield. The system is designed to facilitate the convergence of governance, risk and compliance programmes and automate a comprehensive review and assessment of operational risks.

ASI Sustainable Index UK Equity Fund

ASI Sustainable Index UK Equity Fund 17

For the period from 12 November 2020 to 30 November 2021

Investment Objective:

To generate growth over the long term (5 years or more) by tracking the return of the MSCI United Kingdom IMI Select ESG Climate Solutions Target Index (the “Index”).

Performance Target: To match the return of the Index (before charges). The Performance Target is the level of performance that the management team hopes to achieve for the fund. There is however no certainty or promise that they will achieve the Performance Target.

The Manager believes this is an appropriate target for the fund based on the investment policy of the fund and the constituents of the Index.

Investment Policy

Portfolio Securities

• The fund will invest at least 90% in equities (company shares) and equity related securities (such as depositary receipts) of companies that make up the Index.

• The fund will typically invest directly but may also invest indirectly when deemed appropriate in order to meet its objective.

• Indirect investment may be achieved via derivatives.

• The fund may also invest in other funds (including those managed by abrdn), money-market instruments, and cash.

Management Process

• The fund uses passive management techniques (including indexation and sampling) to achieve the fund’s objective.

• The management team use their discretion (specifically when using sampling techniques) in deciding which investments are to be included in the portfolio. The number of investments may vary.

• They anticipate that deviation from the performance of the Index ("tracking error") will be in the region of 0.0 - 0.5% per year. Factors likely to affect the ability of the fund to achieve this tracking error are transaction costs, small illiquid components, dividend reinvestment, fund expenses such as annual management charges, significant inflows/outflows and cash management.

• The tracking error may be affected if the times at which the fund and the Index are priced are different.

• The Index is composed of a subset of equity securities within the MSCI UK IMI Index (the “Parent Index”). Unlike the Parent Index, the Index incorporates a sustainable approach by applying higher weights to constituent companies with stronger Environmental, Social and Governance (ESG) scores, lower carbon footprints (as measured by the MSCI carbon intensity score) and a higher exposure to clean technology solutions. In addition, the Index excludes companies which are involved in certain controversial activities (see further details in the prospectus of this sustainable approach, including details of the MSCI methodology, under “Fund Benchmark”).

Derivatives and Techniques

• The fund may use derivatives to reduce risk, reduce cost and/or generate additional income or growth consistent with the risk profile of the fund (often referred to as “Efficient Portfolio Management”).

• Where derivatives are used, this would typically be to maintain allocations to company shares while meeting cash inflows or outflows. Where these are large relative to the size of the fund, derivative usage may be significant for limited periods of time.


• Derivative usage in the fund otherwise is expected to be very limited.

• The fund may use derivatives which do not comply with the sustainable approach applied by the Index.

Performance Review

The ASI Sustainable Index UK Equity Fund returned 16.30% (B1-accumulation units) over the review period. This was compared with a return of 16.71% for its benchmark index. (Source: Lipper for the period to 30 November 2021).

In terms of activity and composition, the Fund continues to mirror the MSCI UK IMI Select ESG Climate Solutions Target Index. In order to maintain exposure in line with the benchmark, the Fund periodically rebalances.

The Fund continues to meet the specified sustainability goals with reference to carbon, ESG (environmental, social and governance) and green revenues. In terms of sector, the sustainability outcomes of the benchmark result in greater exposure to industrials and financials and lower exposure to energy and materials than the parent index, MSCI UK IMI.

The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis, should not be taken as an indication or guarantee of any future performance analysis forecast or prediction. The MSCI information is provided on an ‘as is’ basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the ‘MSCI’ Parties) expressly disclaims all warranties (including without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages (www.msci.com).

Please remember that past performance is not a guide to future returns. The price of units and the revenue from them may fall as well as rise. Investors may not get back the amount originally invested.

Companies selected for illustrative purposes only to demonstrate the investment management style described herein and not as an investment recommendation or indication of future performance.

Market Review

The review period was a strong one for global equities, including UK stocks. The pandemic continued to put strain on the economy, particularly with the discovery of new variants, as investors grappled with the economic fallout. However, markets had largely adapted to this constrained environment, and were also underpinned by ongoing government and central bank support. Investor sentiment also improved on the back of a highly successful domestic vaccine rollout, positive economic data and robust corporate earnings.

The review period started off well, as vaccine rollouts began in countries across the world. However, the discovery of a new, highly contagious coronavirus strain in the UK led to the introduction of new lockdown tiers, which negatively affected UK equities. By the end of December, more than three quarters of England’s population was under the most severe restrictions. But markets were optimistic over the COVID-19 vaccines, and also reacted positively to the late Brexit deal on Christmas Eve. This positive momentum took a brief pause in January 2021, and UK equities dipped slightly, before picking up again in February and thereafter. Supportive government policy, with Chancellor Rishi Sunak pledging an additional £65 billion in emergency support measures for workers and businesses, drove markets upwards. Easing lockdown restrictions, positive earnings results and an impressive vaccine rollout also benefited UK equities.

Equities were supported in the second half of the period by the continued easing of COVID-19 related restrictions. Although the Government delayed ‘freedom day’ by four weeks, due to an uptick in COVID-19 infections caused by the Delta variant, all lockdown restrictions were eventually lifted at the end of July. There was a welcome recovery in economic activity in August, but this also put strain on supply chains. Supply-chain pressure continued to build in September, while the disruption caused by a fuel shortage also dented sentiment. In October, equities were weighed down by soaring energy prices, with several small UK energy firms going bust as a result. Stocks fell back dramatically at the end of November after the discovery of a new variant of COVID-19 in South Africa, sparking fears around vaccine efficacy and the return of restrictions. Unlike some European countries, the UK has not seen a dramatic rise in hospitalisations. Concerns about rising inflation and less-supportive monetary policy also hurt sentiment at the end of the period.

In UK economic news, third-quarter growth figures showed that the UK has lagged behind other rich economies. The Bank of England held its benchmark interest rate at the all-time low of 0.1% at its latest meeting, while maintaining the current rate of its asset-purchasing programme. Meanwhile, the UK’s consumer price index hit 4.2% year on year in October, its highest level in a decade.

Outlook

Company fundamentals remain supportive for equity markets, but with good news already priced in, returns are likely to be modest. Bond yields are expected to rise and this environment usually favours value shares, with cyclicals expected to outperform defensive companies. Despite this, growth companies are unlikely to fade materially as economic growth is


weakening from supply-chain pressure and higher energy prices. Uncertainty around the new COVID-19 variant might mean further volatility for markets, especially if the spread of the Omicron variant results in widespread mobility restrictions once again. With commodity inflation and supply-side strains, there are likely to be individual pocket of earnings pressure for many businesses.

Quantitative Investments TeamDecember 2021


Risk and reward profile

The Risk and Reward Indicator table demonstrates where the fund ranks in terms of its potential risk and reward. The higher the rank the greater the potential reward but the greater the risk of losing money. It is based on past data, may change over time and may not be a reliable indication of the future risk profile of the fund. The table below shows the fund’s ranking on the Risk and Reward Indicator.

Risk and reward indicator table as at 30 November 2021.

The fund is rated as 5 because of the extent to which the following risk factors apply:

• The fund may not perform fully in line with the index which it is tracking because of factors which may include transaction costs, timing and holding mismatching, or in the event of extreme market disruption.

• The fund invests in equity and equity related securities. These are sensitive to variations in the stock markets which can be volatile and change substantially in short periods of time.

• Applying ESG and sustainability criteria in the investment process may result in the exclusion of securities within the fund’s benchmark or universe of potential investments. The interpretation of ESG and sustainability criteria is subjective meaning that the fund may invest in companies which similar funds do not (and thus perform differently) and which do not align with the personal views of any individual investor.

• A concentrated portfolio may be more volatile and less liquid than a more broadly diversified one. The fund’s investment are concentrated in a particular country or sector.

• The use of derivatives carries the risk of reduced liquidity, substantial loss and increased volatility in adverse market conditions, such as a failure amongst market participants. The use of derivatives may result in the fund being leveraged (where market exposure and thus the potential for loss by the fund exceeds the amount it has invested) and in these market conditions the effect of leverage will be to magnify losses.

All investment involves risk. This fund offers no guarantee against loss or that the fund’s objective will be attained.

The price of assets and the income from them may go down as well as up and cannot be guaranteed; an investor may receive back less than their original investment.

Inflation reduces the buying power of your investment and income.

The value of assets held in the fund may rise and fall as a result of exchange rate fluctuations.

The fund could lose money if an entity (counterparty) with which it does business becomes unwilling or unable to honour its obligations to the fund.

In extreme market conditions some securities may become hard to value or sell at a desired price. This could affect the fund’s ability to meet redemptions in a timely manner.

The fund could lose money as the result of a failure or delay in operational processes and systems including but not limited to third party providers failing or going into administration.


Comparative Table

2021

B1 Class AccumulationA pence per unit

Change in net assets per unit

Opening net asset value per unit 100.00B

Return before operating charges* 16.37

Operating charges (0.18)

Return after operating charges* 16.19

Distributions (3.50)

Retained distributions on accumulation units 3.50

Closing net asset value per unit 116.19

* after direct transaction costs of: 0.87

Performance

Return after charges 16.19%

Other Information

Closing net asset value (£'000) 7,281

Closing number of units 6,266,874

Operating charges 0.15%

Direct transaction costs 0.74%

Prices

Highest unit price 121.30

Lowest unit price 98.25

The closing net asset value (£’000) divided by the closing number of units may not calculate to the closing net asset value per unit (p) due to rounding differences. The published closing net asset value per unit (p) is based on unrounded values and represents the actual price. The return after charges figures are based on the accounting NAV, as the financial statements are produced at fair value which is different from the published daily NAV. Operating charges are expenses associated with the maintenance and administration of the fund on a day to day basis that are actually borne by the unit class. Highest and Lowest prices are based on official published daily NAVs. A B1 Class Accumulation unit class was launched on 25 November 2020.B The opening net asset value stated is the unit class launch price.


2021











Performance


Other Information

Closing net asset value (£'000) 654

Closing number of units 578,518



Prices


Lowest unit price 100.00 The closing net asset value (£’000) divided by the closing number of units may not calculate to the closing net asset value per unit (p) due to rounding differences. The published closing net asset value per unit (p) is based on unrounded values and represents the actual price. The return after charges figures are based on the accounting NAV, as the financial statements are produced at fair value which is different from the published daily NAV. Operating charges are expenses associated with the maintenance and administration of the fund on a day to day basis that are actually borne by the unit class. Highest and Lowest prices are based on official published daily NAVs. A B2 Class Accumulation unit class was launched on 28 January 2021.B The opening net asset value stated is the unit class launch price.

Comparative Table


2021

X5 Class AccumulationA pence per unit










Performance


Other Information





Prices


Lowest unit price 98.39 The closing net asset value (£’000) divided by the closing number of units may not calculate to the closing net asset value per unit (p) due to rounding differences. The published closing net asset value per unit (p) is based on unrounded values and represents the actual price. The return after charges figures are based on the accounting NAV, as the financial statements are produced at fair value which is different from the published daily NAV. Operating charges are expenses associated with the maintenance and administration of the fund on a day to day basis that are actually borne by the unit class. Highest and Lowest prices are based on official published daily NAVs. A X5 Class Accumulation unit class was launched on 12 November 2020.B The opening net asset value stated is the unit class launch price.

Comparative Table


Portfolio StatementAs at 30 November 2021

Holding InvestmentMarket Value

£'000

Percentage of total

net assets

Exchange Traded Funds 198 1.01

28,576 iShares Core FTSE 100 UCITS ETF 198 1.01

Equities 19,254 98.36

UK Equities 18,933 96.72

Basic Materials 1,580 8.07

20,840 Antofagasta 288 1.47

13,347 Centamin 13 0.07

9,365 Central Asia Metals+ 23 0.12

2,959 Croda International 299 1.53

31,009 Glencore 111 0.57

2,329 Hochschild Mining 3 0.01

8,830 Johnson Matthey 185 0.94

1,645 Mondi 28 0.14

13,666 Rio Tinto 630 3.22

Communications 1,035 5.29

5,872 Airtel Africa 7 0.04

747 Ascential 3 0.02

652 ASOS+ 15 0.08

947 Auto Trader 7 0.03

113,115 BT 180 0.92

714 Future 26 0.13

18,696 Informa 87 0.45

83,260 ITV 92 0.47

8,079 Pearson 48 0.24

6,458 Reach 17 0.08

2,857 Rightmove 21 0.11

5,094 Trainline 14 0.07

293,931 Vodafone 321 1.64

18,937 WPP 197 1.01

Consumer, Cyclical 2,182 11.15

7,667 888 24 0.12

2,094 AO World 2 0.01

173 Aston Martin Lagonda Global 3 0.01

76 Auction Technology 1 0.01

15,779 Barratt Developments 110 0.56

1,547 Bellway 48 0.25

3,345 Berkeley 143 0.73



£‘000

Percentage of total

net assets

706 boohoo+ 1 0.01

2,539 Bunzl 73 0.37

6,145 Burberry 108 0.55

16,724 Compass 245 1.25

1,388 Countryside Properties 6 0.03

6,427 Crest Nicholson 21 0.11

22,814 Dixons Carphone 30 0.15

2,138 Dr. Martens 8 0.04

798 Dunelm 11 0.06

6,211 Entain 104 0.53

3,317 Ferguson 380 1.94

38 Games Workshop 4 0.02

8,184 Gym 19 0.10

5,367 Halfords 16 0.08

12,228 Howden Joinery 106 0.54

8,607 Inchcape 71 0.36

1,013 InterContinental Hotels 45 0.23

406 J D Wetherspoon 3 0.02

5,645 JD Sports Fashion 13 0.06

33,040 Kingfisher 105 0.54

1,469 Next 115 0.59

1,370 On the Beach 3 0.01

1,929 Persimmon 53 0.27

5,997 Pets at Home 28 0.14

1,833 Restaurant 1 0.01

62,381 SIG 31 0.16

40,152 Taylor Wimpey 63 0.32

4,830 Travis Perkins 70 0.36

2,804 Vistry 30 0.16

1,916 WH Smith 25 0.13

2,244 Whitbread 63 0.32

Consumer, Non-cyclical 6,720 34.33

673 Abcam+ 12 0.06

4,392 Ashtead 265 1.36

2,710 Associated British Foods 52 0.26

13,831 AstraZeneca 1,145 5.85

6,433 Britvic 57 0.29

53,975 Capita 24 0.12

17,804 ConvaTec 34 0.18




£‘000

Percentage of total

net assets

1,362 Cranswick 48 0.25

1,162 CVS+ 25 0.13

2,108 Dechra Pharmaceuticals 106 0.54

28,758 Diageo 1,092 5.58

5,599 Experian 189 0.97

51,317 GlaxoSmithKline 783 4.00

727 Greggs 22 0.11

32,004 Hays 47 0.24

1,740 Indivior 4 0.02

1,853 Intertek 99 0.51

6,183 IWG 17 0.09

71,101 J Sainsbury 197 1.00

52,378 Marks & Spencer 124 0.63

3,020 Marston's 2 0.01

19,065 Mediclinic International 55 0.28

26,476 Mitie 17 0.09

3,882 Ocado 70 0.36

18,949 Premier Foods 20 0.10

5,649 QinetiQ 15 0.07

7,302 Reckitt Benckiser 446 2.28

20,199 Redde Northgate 80 0.41

23,513 RELX 549 2.81

18,261 Rentokil Initial 112 0.57

1,505 Savills 20 0.10

2,148 Smith & Nephew 26 0.13

14,591 Spire Healthcare 34 0.17

6,481 SThree 34 0.17

23,282 Unilever 898 4.59

Energy 1,133 5.79

238,284 BP 776 3.96

40,729 Cairn Energy 74 0.38

17,732 Harbour Energy 70 0.36

12,358 Hunting 18 0.09

7,020 ITM Power+ 32 0.16

52,635 John Wood 106 0.54

38,948 Petrofac 42 0.22

7,199 Serica Energy+ 15 0.08




£‘000

Percentage of total

net assets

Financial 3,786 19.34

13,910 3i 193 0.99

21,805 abrdn 51 0.26

1,059 Admiral 31 0.16

2,291 Ashmore 7 0.03

78,569 Aviva 302 1.55

1,364 Bank of Georgia 21 0.11

158,273 Barclays 292 1.49

8,143 Brewin Dolphin 28 0.14

4,147 Close Brothers 54 0.27

10,645 Direct Line Insurance 29 0.15

1,648 Funding Circle 2 0.01

9,015 Grainger 27 0.14

9,705 Helical 43 0.22

1,154 Hiscox 9 0.05

182,292 HSBC 764 3.91

852 Intermediate Capital 18 0.09

26,605 Investec 100 0.51

18,688 Jupiter Fund Management 44 0.22

12,343 Just 10 0.05

116,919 Legal & General 330 1.68

702,806 Lloyds Banking 329 1.68

2,738 London Stock Exchange 178 0.91

8,262 M&G 15 0.08

27,632 Melrose Industries 40 0.20

53,748 Natwest 114 0.58

3,000 Network International 8 0.04

16,111 Phoenix 103 0.53

23,454 Prudential 299 1.53

2,843 Schroders 98 0.50

16,888 Sirius Real Estate 23 0.12

6,936 St James's Place 107 0.55

27,468 Standard Chartered 114 0.58

181 TBC Bank 3 0.01

Health Care 10 0.05

2,978 Advanced Medical Solutions+ 10 0.05

Industrial 890 4.55

235 Avon Protection 3 0.01




£‘000

Percentage of total

net assets

20,487 Balfour Beatty 48 0.24

8,575 Chemring 23 0.12

429 Diploma 14 0.07

2,703 DS Smith 10 0.05

1,366 Genuit 8 0.04

377 Halma 11 0.06

1,123 Hill & Smith 19 0.10

2,379 HomeServe 21 0.11

4,081 IMI 69 0.35

792 Keller 7 0.04

7,245 Kier 8 0.04

568 Luceco 2 0.01

6,552 Marshalls 46 0.23

12,930 Meggitt 95 0.49

2,227 Morgan Sindall 53 0.27

62,114 Rolls-Royce 76 0.39

8,002 Rotork 27 0.14

9,055 Royal Mail 45 0.23

7,094 Senior 9 0.05

3,702 Smart Metering Systems+ 30 0.15

5,380 Smiths 78 0.40

445 Spectris 16 0.08

642 Spirax-Sarco Engineering 100 0.51

692 Ultra Electronics 21 0.11

6,624 Watkin Jones+ 16 0.08

2,078 Weir 35 0.18

Real Estate Investment Trust 737 3.76

1,552 Big Yellow REIT 25 0.13

3,601 BMO Commercial Property Trust REIT 4 0.02

20,986 British Land REIT 107 0.54

1,584 Derwent London REIT 54 0.27

3,020 Great Portland Estates REIT 22 0.11

84,551 Hammerson REIT 25 0.13

13,262 Land Securities REIT 96 0.49

26,817 Segro REIT 378 1.93

2,200 UNITE REIT 23 0.12

384 Workspace REIT 3 0.02




£‘000

Percentage of total

net assets

Technology 200 1.02

1,674 Avast 10 0.05

314 Blue Prism+ 4 0.02

2,650 GB+ 20 0.10

3,649 Ideagen+ 9 0.05

93 Kainos 2 0.01

9,543 Micro Focus International 33 0.17

4,613 NCC 10 0.05

894 Playtech 7 0.03

13,551 Sage 105 0.54

Utilities 660 3.37

47,420 Centrica 31 0.16

41,834 National Grid 421 2.15

2,794 Pennon 34 0.17

820 Severn Trent 23 0.12

2,700 SSE 42 0.21

10,054 United Utilities 109 0.56

Continental Europe Equities 321 1.64

Ireland 203 1.03

7,652 C&C 17 0.09

2,063 DCC 114 0.58

3,062 Grafton 36 0.18

28,373 Greencore 36 0.18

Switzerland 118 0.61

5,109 Coca-Cola HBC 118 0.61

Derivatives (4) (0.02)

Futures (4) (0.02)

1 FTSE 100 Index Future 17/12/2021 (2) (0.01)

1 FTSE 250 Index Future 17/12/2021 (2) (0.01)

Total investment assets and liabilities 19,448 99.35

Net other assets 127 0.65

Total net assets 19,575 100.00

All investments are listed on recognised stock exchanges and are approved securities, regulated collective investment schemes or approved derivatives within the meaning of the FCA rules. There are no comparative figures shown as the fund launched on 12 November 2020.+ AIM listed.



Financial Statements

Statement of total returnFor the period from 12 November 2020 to 30 November 2021

12 November 2020 to 30 November 2021

Notes £'000 £'000

Income:

Net capital gains 1 1,267

Revenue 2 472

Expenses 3 (14)

Net revenue before taxation 458

Taxation 4 –

Net revenue after taxation 458

Total return before distributions 1,725

Distributions 5 (458)

Change in net assets attributable to unitholders from investment activities 1,267

Statement of change in net assets attributable to unitholdersFor the period from 12 November 2020 to 30 November 2021


£'000 £'000

Opening net assets attributable to unitholders –

Amounts receivable on the issue of units 20,681

Amounts payable on the cancellation of units (2,969)

17,712

Change in net assets attributable to unitholders from investment activities (see above) 1,267

Retained distribution on accumulation unit 596

Closing net assets attributable to unitholders 19,575 Note: The fund launched on 12 November 2020, therefore no comparatives have been presented.



Balance sheetAs at 30 November 2021

30 November 2021

Notes £'000 £'000

Assets:

Fixed assets:

Investment assets 19,452

Current assets:

Debtors 6 1,115

Cash and bank balances 7 81

1,196

Total assets 20,648

Liabilities:

Investment liabilities (4)

Creditors 8 (1,069)

(1,069)

Total liabilities (1,073)

Net assets attributable to unitholders 19,575 Note: The fund launched on 12 November 2020, therefore no comparatives have been presented.


Notes to the Financial Statements For the period from 12 November 2020 to 30 November 2021

1 Net Capital Gains


£'000

Non-derivative securities* 1,253

Derivative contracts* 14

Net capital gains 1,267

*Includes realised gains of £301,000 and unrealised gains of £966,000.

2 Revenue


£'000

UK Dividends 435

Overseas Dividends 19

UK REIT 11

Income from Overseas Collective Investment Schemes

Franked income 7

Total revenue 472

3 Expenses


£'000

Payable to the ACS Manager, associates of the ACS Manager and agents of either of them:

ACS Manager’s fixed fee 14

Total expenses 14

Irrecoverable VAT is included in the above expense where relevant.

4 TaxationAs the fund is an Authorised Contractual Scheme, it is exempt from United Kingdom (UK) tax on capital gains realised on the disposal of investments held within the fund and any UK corporation tax.

5 Distributions


£'000

Final distribution 596

596



£’000

Add: Income deducted on cancellation of units 34

Deduct: Income received on issue of units (172)

Total distribution for the period 458

Details of the distribution per unit are set out in this fund’s distribution tables.

6 Debtors

30 November 2021

£'000

Amount receivable from the ACS Manager for the issue of units 134

Sales awaiting settlement 931

Accrued revenue 49

Overseas tax recoverable 1

Total debtors 1,115

7 Liquidity

30 November 2021

£'000

Cash and bank balances

Cash at bank 67

Cash at broker 14

Total liquidity 81

8 Creditors

30 November 2021

£'000

Purchases awaiting settlement 1,067

Accrued expenses payable to ACS Manager 2

Total creditors 1,069

9 Related Party TransactionsAberdeen Standard Fund Managers Limited, as Authorised Contractual Scheme Manager (ACS Manager) is a related party and acts as principal in respect of all transactions of units in the fund.

The aggregate monies received through issue and paid on cancellation of units are disclosed in the statement of change in net assets attributable to unitholders.

Any amounts due from or due to Aberdeen Standard Fund Managers Limited at the end of the accounting period are disclosed in notes 6 and 8.

Notes to the Financial Statements


Amounts payable to Aberdeen Standard Fund Managers Limited, in respect of periodic charge, are disclosed in note 3 and any amounts due at the period end in note 8.

10 Portfolio Transaction CostsThere are no transaction costs associated with the purchases or sales of derivatives during the period.

Collective investments operate within the terms of the offer document or prospectus. Typically we do not invest into funds that require an initial charge to be made. The underlying price may contain an estimation of cost known as a dilution levy which is applied from time to time.

Derivatives are dealt on a spread agreed between buyer and seller with reference to the underlying investment.

Trades in the period

Purchases 12 November 2020

to 30 November 2021 £'000

Sales 12 November 2020


Equities 21,901 4,013

Collective investment schemes 5,747 5,543

Corporate actions 16 10

Trades in the period before transaction costs 27,664 9,566

Commissions

Equities 1 -

Collective investment schemes 1 (1)

Total commissions 2 (1)

Taxes

Equities 103 -

Total taxes 103 –

Total transaction costs 105 (1)

Total net trades in the period after transaction costs 27,769 9,565

Total transaction costs expressed as a percentage of asset type cost


to 30 November 2021 %



Commissions

Equities – –

Collective investment schemes 0.02 0.02

Taxes

Equities 0.47 –

Total transaction costs expressed as a percentage of net asset value


%


%

Commissions 0.02 –

Taxes 0.72 –

At the balance sheet date, the average portfolio dealing spread (i.e. the spread between bid and offer prices expressed as a percentage of the offer price) was 0.07%, this is representative of the average spread on the assets held during the period.



11 Units in issue reconciliation

Opening units

12 November 2020

Creations during

the period

Cancellations during

the period

Closing units

30 November 2021

B1 Class Accumulation – 9,000,552 (2,733,678) 6,266,874

B2 Class Accumulation – 578,518 – 578,518

X5 Class Accumulation – 10,000,000 – 10,000,000

12 Fair Value HierarchyThe three levels of the fair value hierarchy under FRS 102 are described below:

Level 1: Unadjusted quoted market prices in active markets that are accessible at the measurement date for the identical unrestricted assets or liabilities.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices).

Level 3: Inputs for asset or liability that are not based on observable market data (unobservable inputs).

Fair value of investment assets

30 November 2021 £'000

Level 1

30 November 2021 £'000

Level 2

30 November 2021 £'000

Level 3

Equities

19,254

–

–

Collective Investment Schemes

198

–

–

Total investment assets

19,452

–

–

Fair value of investment liabilities

30 November 2021 £'000

Level 1

30 November 2021 £'000

Level 2

30 November 2021 £'000

Level 3

Derivatives

(4)

–

–

Total investment liabilities

(4)

–

–

13 Risk Management Policies and Disclosures The risks inherent in the fund’s investment portfolio are as follows:

Foreign currency riskThe income and capital value of the fund's investments are mainly denominated in Sterling, the fund's functional currency; therefore, the financial statements are not subject to any significant risk of currency movements.

Interest rate riskThe majority of the fund's financial assets are in non-interest bearing assets. Therefore, the fund's exposure to interest rate risk is considered insignificant.

Other price riskEach fund’s investment portfolio is exposed to market price fluctuations which are monitored by the Investment Manager in pursuance of the investment objectives and policies. Adherence to investment guidelines and to investment and borrowing powers mitigate the risk of excessive exposure to any particular type of security or issuer.

An increase or decrease in market values will therefore have a direct effect on the value of the investment assets in



the portfolio and therefore a proportionate effect on the value of the fund.

As at 30 November 2021, if the prices of investments held by the fund increased or decreased by 5%, with all other variables remaining constant, then net assets attributable to the unitholders would increase or decrease by approximately £972,623.

Financial derivatives instrument riskThese types of transaction can introduce market exposure greater than the market value of the instrument. These transactions exchange benefits with a third party at a future date creating both counterparty and concentration risk. The Investment Manager’s policies for managing these risks are outlined in the fund’s prospectus.

At the balance sheet date, the fund had the following exposures:2021

Leveraged instruments

Market exposure

£'000

Market value£'000

Futures 116 (4)

Total market exposure 116 (4)

The total mark to market exposure is the sum of the notional derivative contracts on a gross basis with no offsetting.

In accordance with articles 7 and 8 of the Alternative Investment Fund Managers Regulations 2013, the level of leverage of the fund must be calculated and monitored under both the gross and commitment methods and expressed as a percentage of the exposure of the fund and its Net Asset Value. Where a fund has no derivative usage, leverage would be 100% under the commitment method. The gross method calculation excludes cash and cash equivalents which are highly liquid.

As at 30 November 2021, the leverage under the gross method was 100.22% and leverage under the commitment method was 100.28%.

Counterparty riskWhere the fund enters market transactions this creates concentration risk where a clearing broker operates on an exchange. Where the broker is not solvent the market exposure can be transferred. Exposure is reduced by the daily exchange of margin by both parties held in the name of the depositary. At the period end, the fund had the following broker exposure.

2021

Market value of derivatives

£'000

Market value of cash

£'000Total

£'000

Percentage of total net assets

%

Broker or exchange exposure

Merrill Lynch International (4) 14 10 0.05

(4) 14 10 0.05

Liquidity riskAll of the fund's financial liabilities are payable on demand or in less than one year, 2021: nil.

14 Subsequent eventInvestments in financial markets are affected by many factors, many of which have shifted following the outbreak of the conflict in Ukraine. The fund invests in a portfolio of assets, whose values have risen since the end of period, primarily due to the global market volatility created by the conflict in Ukraine and the longer term uncertainty the conflict brings. As at the close of business on the balance sheet date, the Net Asset Value of the lead unit class ‘X5 Accumulation’ was 116.40p. The Net Asset Value of unit class ‘X5 Accumulation’ as at 22:30 on 21 March 2022 was 119.70p. This represents a change of 2.84% from the end of period value.

1 NetCapitalGainsHidden2RevenueHidden3ExpensesHidden4TaxationHidden5DistributionsHidden6DebtorsHidden7CashHidden8CreditorsHidden9RelatedPartyHidden10SharesinIssueHidden11FVHHidden12RiskManagementHidden13ForeignCurrencyRiskHidden14SubsequentEventsHiddena TaxationA2Hidden15 EquityPurchasesHidden16InterestPayableHidden17CapitalCommitHidden



Distribution tableFor the period 12 November 2020 to 30 November 2021 (in pence per unit)

Distribution paid 28/01/22

B1 Class Accumulation* 3.4992

B2 Class Accumulation** 3.1127

X5 Class Accumulation 3.5849

* B1 Class Accumulation unit class was launched on 25 November 2020.** B2 Class Accumulation unit class was launched on 28 January 2021.

ASI Sustainable Index World Equity Fund

ASI Sustainable Index World Equity Fund 38

For the period from 12 November 2020 to 30 November 2021

Investment Objective:

To generate growth over the long term (5 years or more) by tracking the return of the MSCI World Select ESG Climate Solutions Target Index (the “Index”).

Performance Target: To match the return of the Index (before charges). The Performance Target is the level of performance that the management team hopes to achieve for the fund. There is however no certainty or promise that they will achieve the Performance Target.

The Manager believes this is an appropriate target for the fund based on the investment policy of the fund and the constituents of the Index.

Investment Policy

Portfolio Securities

• The fund will invest at least 90% in equities (company shares) and equity related securities (such as depositary receipts) of companies that make up the Index.

• The fund will typically invest directly but may also invest indirectly when deemed appropriate in order to meet its objective.

• Indirect investment may be achieved via derivatives.

• The fund may also invest in other funds (including those managed by Aberdeen Standard Investments), money-market instruments, and cash.

Management Process

• The fund uses passive management techniques (including indexation and sampling) to achieve the fund’s objective.

• The management team use their discretion (specifically when using sampling techniques) in deciding which investments are to be included in the portfolio. The number of investments may vary.

• They anticipate that deviation from the performance of the Index ("tracking error") will be in the region of 0.0 - 0.5% per year. Factors likely to affect the ability of the fund to achieve this tracking error are transaction costs, small illiquid components, dividend reinvestment, fund expenses such as annual management charges, significant inflows/outflows and cash management.

• The tracking error may be affected if the times at which the fund and the Index are priced are different.

• The Index is composed of a subset of equity securities within the MSCI World Index (the “Parent Index”). Unlike the Parent Index, the Index incorporates a sustainable approach by applying higher weights to constituent companies with stronger Environmental, Social and Governance (ESG) scores, lower carbon footprints (as measured by the MSCI carbon intensity score) and a higher exposure to clean technology solutions. In addition, the Index excludes companies which are involved in certain controversial activities (see further details in the prospectus for this sustainable approach, including details of the MSCI methodology, under “Fund Benchmark”).

Derivatives and Techniques

• The fund may use derivatives to reduce risk, reduce cost and/or generate additional income or growth consistent with the risk profile of the fund (often referred to as “Efficient Portfolio Management”).

• Where derivatives are used, this would typically be to maintain allocations to company shares while meeting cash inflows or outflows. Where these are large relative to the size of the fund, derivative usage may be significant for limited periods of time.


• Derivative usage in the fund otherwise is expected to be very limited.

• The fund may use derivatives which do not comply with the sustainable approach applied by the Index.

Performance Review

The ASI Sustainable Index World Equity Fund returned 23.10% (B1 Accumulation units) over the review period. This was compared with a return of 23.64% for its Index. (Source: Lipper for the period to 30 November 2021).

In terms of activity and composition, the fund continues to mirror the MSCI World Select ESG Climate Solutions Target Index. In order to maintain exposure in line with the Index, the fund periodically rebalances.

The fund continues to meet its specified sustainability goals with reference to carbon, ESG (environmental, social and governance) and green revenues. In terms of sector allocation, the sustainability outcomes of the Index result in greater exposure to information technology and industrials and lower exposure to consumer discretionary and communication services than the Parent Index, MSCI World Index.

The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis, should not be taken as an indication or guarantee of any future performance analysis forecast or prediction. The MSCI information is provided on an ‘as is’ basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the ‘MSCI’ Parties) expressly disclaims all warranties (including without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages (www.msci.com).

Please remember that past performance is not a guide to future returns. The price of units and the revenue from them may fall as well as rise. Investors may not get back the amount originally invested.

Companies selected for illustrative purposes only to demonstrate the investment management style described herein and not as an investment recommendation or indication of future performance.

Market Review

Globally, stock markets rose significantly over the past 12 months. COVID-19 was still the dominant factor at the beginning of the period, although stock markets had already begun their recovery from the lows of March 2020.

Supportive monetary and fiscal policy was prevalent over the period. The US Federal Reserve (Fed) maintained the main US rate at near zero throughout the review period, while providing support through its bond-buying programme. Elsewhere, the European Central Bank (ECB) ramped up its original €1.35 trillion stimulus plan to €1.85 trillion in December 2020. The US Congress passed two additional stimulus packages during the period, cumulatively worth around US$2.8 trillion. In August 2021, the US Senate passed the US$1 trillion infrastructure deal.

At the beginning of the period, the relatively smooth US presidential election – coupled with news of three major COVID-19 vaccines – buoyed sentiment. This persisted through to the end of 2020 due to the launch of vaccination programmes, the approval of stimulus packages and the reaching of a Brexit trade deal.

Momentum stalled again in January and February 2021 as global bond markets experienced a marked sell-off, spurring worries that this could impact the fragile global recovery. This also negatively affected equities. However, equity markets resumed their upward momentum, driven by economic optimism, vaccine rollouts, continued accommodative monetary policy and a strong corporate reporting season. The MSCI World Index reached a record high in August but sold off in September, as concerns grew over inflation and interest rate hikes. Markets began to rise again in October on the back of strong corporate results but sold off in late November as news of the emergence of the Omicron variant broke.

Outlook

In the near term, investor sentiment remains sensitive to news flow related to Omicron, the new COVID-19 variant. The market’s state of flux is also being fuelled by inflation and employment data as they relate to central bank policy. Added to this mix is the re-emergence of the US debt ceiling debate, yet again. With these dynamics in play, the next few months could prove to be another turbulent period for equities.

We see stimulus in the US, specifically relating to infrastructure, supportive of markets. One area worth monitoring is Asia and emerging markets. These markets have significantly underperformed the rest of world during 2021. Notably, China is cutting interest rates; in contrast to western economies, markets are leveraged to reopening and investors are generally underweight the region.

Quantitative Investments Team

December 2021


Risk and reward profile

The Risk and Reward Indicator table demonstrates where the fund ranks in terms of its potential risk and reward. The higher the rank the greater the potential reward but the greater the risk of losing money. It is based on past data, may change over time and may not be a reliable indication of the future risk profile of the fund. The table below shows the fund’s ranking on the Risk and Reward Indicator.

Risk and reward indicator table as at 30 November 2021.

The fund is rated as 5 because of the extent to which the following risk factors apply:

• The fund may not perform fully in line with the index which it is tracking because of factors which may include transaction costs, timing and holding mismatching, or in the event of extreme market disruption.

• The fund invests in equity and equity related securities. These are sensitive to variations in the stock markets which can be volatile and change substantially in short periods of time.

• Applying ESG and sustainability criteria in the investment process may result in the exclusion of securities within the fund's benchmark or universe of potential investments. The interpretation of ESG and sustainability criteria is subjective meaning that the fund may invest in companies which similar funds do not (and thus perform differently) and which do not align with the personal views of any individual investor.

• The fund may invest in companies with Variable Interest Entity (VIE) structures in order to gain exposure to industries with foreign ownership restrictions. There is a risk that investments in these structures may be adversely affected by changes in the legal and regulatory framework.

• Investing in China A shares involves special considerations and risks, including greater price volatility, a less developed regulatory and legal framework, exchange rate risk/controls, settlement, tax, quota, liquidity and regulatory risks.

• The use of derivatives carries the risk of reduced liquidity, substantial loss and increased volatility in adverse market conditions, such as a failure amongst market participants. The use of derivatives may result in the fund being leveraged (where market exposure and thus the potential for loss by the fund exceeds the amount it has invested) and in these market conditions the effect of leverage will be to magnify losses.

All investment involves risk. This fund offers no guarantee against loss or that the fund’s objective will be attained.

The price of assets and the income from them may go down as well as up and cannot be guaranteed; an investor may receive back less than their original investment.

Inflation reduces the buying power of your investment and income.

The value of assets held in the fund may rise and fall as a result of exchange rate fluctuations.

The fund could lose money if an entity (counterparty) with which it does business becomes unwilling or unable to honour its obligations to the fund.

In extreme market conditions some securities may become hard to value or sell at a desired price. This could affect the fund’s ability to meet redemptions in a timely manner.

The fund could lose money as the result of a failure or delay in operational processes and systems including but not limited to third party providers failing or going into administration.


Comparative Table

2021











Performance


Other Information

Closing net asset value (£'000) 1,254,166

Closing number of units 1,019,939,181



Prices


Lowest unit price 100.00 The closing net asset value (£’000) divided by the closing number of units may not calculate to the closing net asset value per unit (p) due to rounding differences. The published closing net asset value per unit (p) is based on unrounded values and represents the actual price. The return after charges figures are based on the accounting NAV, as the financial statements are produced at fair value which is different from the published daily NAV. Operating charges are expenses associated with the maintenance and administration of the fund on a day to day basis that are actually borne by the unit class. Highest and Lowest prices are based on official published daily NAVs. A B1 Class Accumulation unit class was launched on 25 November 2020.B The opening net asset value stated is the unit class launch price.


2021

B2 Class IncomeA pence per unit









Performance


Other Information





Prices


Lowest unit price 100.00 The closing net asset value (£’000) divided by the closing number of units may not calculate to the closing net asset value per unit (p) due to rounding differences. The published closing net asset value per unit (p) is based on unrounded values and represents the actual price. The return after charges figures are based on the accounting NAV, as the financial statements are produced at fair value which is different from the published daily NAV. Operating charges are expenses associated with the maintenance and administration of the fund on a day to day basis that are actually borne by the unit class. Highest and Lowest prices are based on official published daily NAVs. A B2 Class Income unit class was launched on 22 October 2021.B The opening net asset value stated is the unit class launch price.

Comparative Table


2021

X5 Class AccumulationA,C pence per unit






Distributions –

Retained distributions on accumulation units –

Closing net asset value per unit 115.50D


Performance


Other Information

Closing net asset value (£'000) –

Closing number of units –



Prices


Lowest unit price 99.45 The closing net asset value (£’000) divided by the closing number of units may not calculate to the closing net asset value per unit (p) due to rounding differences. The published closing net asset value per unit (p) is based on unrounded values and represents the actual price. The return after charges figures are based on the accounting NAV, as the financial statements are produced at fair value which is different from the published daily NAV. Operating charges are expenses associated with the maintenance and administration of the fund on a day to day basis that are actually borne by the unit class. Highest and Lowest prices are based on official published daily NAVs. A X5 Class Accumulation unit class was launched on 12 November 2020.B The opening net asset value stated is the unit class launch price.C X5 Class Accumulation unit class closed on 14 July 2021.D The closing net asset value stated is the unit class price as at 14 July 2021.

Comparative Table




£'000

Percentage of total

net assets

Exchange Traded Funds 12,707 0.99

2,171,048 iShares MSCI World ESG Enhanced UCITS ETF 12,707 0.99

Equities 1,261,699 98.48

UK Equities 50,469 3.94

Basic Materials 5,320 0.41

74,302 Antofagasta 1,025 0.08

19,352 Croda International 1,956 0.15

53,995 Johnson Matthey 1,132 0.09

37,127 Mondi 638 0.05

12,330 Rio Tinto 569 0.04

Communications 3,044 0.24

331,097 BT 525 0.04

62,752 Informa 293 0.02

978,382 Vodafone 1,069 0.09

111,013 WPP 1,157 0.09

Consumer, Cyclical 6,610 0.52

72,502 Barratt Developments 506 0.04

31,356 Berkeley 1,343 0.10

35,495 Burberry 624 0.05

22,137 Compass 324 0.03

11,339 Entain 189 0.01

16,266 Ferguson 1,865 0.15

9,162 InterContinental Hotels 408 0.03

311,553 Kingfisher 987 0.08

2,122 Next 167 0.01

7,047 Whitbread 197 0.02

Consumer, Non-cyclical 17,403 1.36

7,864 Associated British Foods 151 0.01

42,069 AstraZeneca 3,482 0.27

18,648 Coca-Cola Europacific Partners 695 0.05

115,883 Diageo 4,400 0.34

119,352 GlaxoSmithKline 1,820 0.14

4,404 Intertek 235 0.02

487,890 J Sainsbury 1,350 0.11

14,655 Reckitt Benckiser 895 0.07

128,831 RELX 3,009 0.24

23,835 Rentokil Initial 146 0.01



£‘000

Percentage of total

net assets

31,607 Unilever 1,220 0.10

Energy 1,399 0.11

429,996 BP 1,399 0.11

Financial 12,335 0.96

39,900 3i 553 0.04

233,460 Aviva 899 0.07

156,040 British Land REIT 794 0.06

487,352 HSBC 2,044 0.16

332,876 Legal & General 938 0.08

2,039,982 Lloyds Banking 955 0.08

7,585 London Stock Exchange 493 0.04

72,673 Natwest 154 0.01

32,901 Prudential 420 0.03

27,281 Schroders 937 0.07

255,737 Segro REIT 3,601 0.28

131,388 Standard Chartered 547 0.04

Industrial 992 0.08

59,237 CNH Industrial 702 0.06

20,093 Smiths 290 0.02

Utilities 3,366 0.26

186,959 National Grid 1,881 0.15

74,360 SSE 1,154 0.09

30,536 United Utilities 331 0.02

Asian Equities 96,476 7.53

Hong Kong 9,120 0.71

269,200 AIA 2,142 0.17

460,000 BOC Hong Kong 1,048 0.08

85,300 Hang Seng Bank 1,141 0.09

47,400 Hong Kong Exchanges & Clearing 1,976 0.15

56,957 Melco Resorts & Entertainment ADR 420 0.03

432,000 MTR 1,740 0.14

15,000 Swire Pacific 63 -

328,800 Swire Properties 590 0.05

Japan 82,716 6.46

60,000 Aeon 1,056 0.08

6,400 Ajinomoto 145 0.01




£‘000

Percentage of total

net assets

114,700 Asahi Kasei 816 0.06

96,500 Astellas Pharma 1,141 0.09

34,400 Azbil 1,143 0.09

8,400 Central Japan Railway 871 0.07

34,400 Chugai Pharmaceutical 841 0.07

8,900 CyberAgent 124 0.01

11,400 Dai Nippon Printing 202 0.02

17,600 Dai-ichi Life 268 0.02

69,400 Daiichi Sankyo 1,305 0.10

9,500 Daikin Industries 1,462 0.11

17,200 Daiwa House Industry 379 0.03

23,700 Denso 1,314 0.10

52,100 East Japan Railway 2,423 0.19

21,800 Eisai 996 0.08

103,100 ENEOS 290 0.02

2,500 Fast Retailing 1,122 0.09

14,900 Fujitsu 1,863 0.15

63,900 Hankyu Hanshin 1,425 0.11

17,600 Hitachi 783 0.06

3,700 Hitachi Construction Machinery 81 0.01

27,600 Honda Motor 569 0.04

27,800 Ibiden 1,307 0.10

186,800 Inpex 1,163 0.09

264,800 ITOCHU 5,734 0.45

15,300 Kansai Paint 260 0.02

14,800 Kao 570 0.04

165,000 KDDI 3,624 0.28

12,400 Keio 421 0.03

2,200 Kikkoman 127 0.01

10,100 Kintetsu 219 0.02

24,700 Kirin 298 0.02

77,700 Komatsu 1,339 0.10

41,700 Kubota 657 0.05

4,600 Kyowa Kirin 97 0.01

26,000 Marubeni 176 0.01

4,500 Mercari 206 0.02

6,800 Mitsubishi Heavy Industries 116 0.01

2,500 Miura 66 0.01

86,500 Mizuho Financial 807 0.06

44,900 MS&AD Insurance 991 0.08

1,400 Murata Manufacturing 78 0.01

11,900 NEC 405 0.03

2,300 Nintendo 767 0.06

9,700 Nippon Express 417 0.03

86 Nippon Prologis REIT 211 0.02

12,500 Nitto Denko 656 0.05




£‘000

Percentage of total

net assets

168,300 Nomura 534 0.04

443 Nomura Real Estate Master Fund REIT 476 0.04

17,200 Nomura Research Institute 557 0.04

58,400 Obayashi 325 0.03

24,900 Odakyu Electric Railway 361 0.03

42,200 Omron 3,068 0.24

9,700 Ono Pharmaceutical 162 0.01

7,600 Oriental Land 902 0.07

49,900 ORIX 745 0.06

168,300 Panasonic 1,386 0.11

37,200 Recruit 1,706 0.13

237,800 Resona 653 0.05

100,700 Sekisui Chemical 1,236 0.10

62,900 Sekisui House 922 0.07

47,100 SG 785 0.06

8,000 Shimadzu 256 0.02

71,600 Shimizu 341 0.03

13,800 Shionogi 728 0.06

25,100 SoftBank 261 0.02

19,900 SoftBank Group 797 0.06

6,100 Sohgo Security Services 196 0.02

37,700 Sompo 1,172 0.09

60,800 Sony 5,593 0.44

27,400 Stanley Electric 538 0.04

401,800 Sumitomo Chemical 1,396 0.11

11,900 Sumitomo Dainippon Pharma 109 0.01

25,700 Sumitomo Metal Mining 723 0.06

26,500 Sumitomo Mitsui Financial 653 0.05

58,900 Sumitomo Mitsui Trust 1,395 0.11

17,000 Sysmex 1,598 0.12

27,100 T&D 242 0.02

46,800 Takeda Pharmaceutical 944 0.07

25,000 Tokio Marine 950 0.07

10,300 Tokyo Century 371 0.03

3,700 Tokyo Electron 1,473 0.12

36,600 Tokyo Gas 474 0.04

109,000 Tokyu 1,133 0.09

85,000 Toray Industries 373 0.03

166,300 Toyota Motor 2,212 0.17

38,500 West Japan Railway 1,253 0.10

9,500 Yamaha 367 0.03

28,800 Yamaha Motor 548 0.04

9,000 Yaskawa Electric 304 0.02

35,600 Yokogawa Electric 504 0.04

132,900 Z 663 0.05




£‘000

Percentage of total

net assets

Singapore 4,640 0.36

696,999 CapitaLand Integrated Commercial Trust REIT 811 0.06

245,800 Capitaland Investment 455 0.04

115,800 City Developments 448 0.03

79,900 DBS 1,316 0.10

409,400 Keppel 1,149 0.09

354,200 Singapore Telecommunications 461 0.04

Continental Europe Equities 222,145 17.34

France 38,581 3.01

3,543 Accor 79 0.01

70,032 Alstom 1,876 0.15

191,044 AXA 3,958 0.31

29,697 BNP Paribas 1,392 0.11

8,167 Bouygues 208 0.02

6,112 Cie Generale des Etablissements Michelin 678 0.05

48,209 CNP Assurances 885 0.07

14,553 Covivio REIT 906 0.07

35,346 Danone 1,563 0.12

11,450 Dassault Systemes 518 0.04

6,235 Edenred 210 0.02

2,465 Eurazeo 152 0.01

12,893 Gecina REIT 1,309 0.10

2,512 Kering 1,456 0.11

56,706 Klepierre REIT 901 0.07

13,216 L'Oreal 4,470 0.35

3,933 LVMH Moet Hennessy Louis Vuitton 2,297 0.18

6,503 Pernod Ricard 1,120 0.09

35,546 Schneider Electric 4,723 0.37

92,738 Societe Generale 2,173 0.17

4,057 Teleperformance 1,252 0.10

113,039 TotalEnergies 3,906 0.30

25,959 Unibail-Rodamco-Westfield REIT 1,285 0.10

38,058 Valeo 826 0.06

30,272 Vivendi 290 0.02

1,722 Wendel 148 0.01

Netherlands 20,159 1.57

106,093 Aegon 353 0.03

20,260 Akzo Nobel 1,601 0.12

15,400 ASML 9,166 0.72

8,557 CNH Industrial (Non-UK shares) 107 0.01

5,456 Heineken 408 0.03

111,686 ING 1,160 0.09

357,961 Koninklijke 792 0.06




£‘000

Percentage of total

net assets

19,041 Koninklijke Ahold Delhaize 480 0.04

7,012 Koninklijke DSM 1,135 0.09

9,420 NXP Semiconductors 1,590 0.12

18,318 Prosus 1,105 0.09

12,369 STMicroelectronics 454 0.03

21,410 Wolters Kluwer 1,808 0.14

Germany 27,037 2.11

7,286 adidas 1,584 0.12

22,650 Allianz 3,708 0.29

21,834 BASF 1,075 0.08

7,013 Bayerische Motoren Werke 507 0.04

4,475 Bayerische Motoren Werke (Preference shares) 264 0.02

72,778 Commerzbank 389 0.03

16,946 Deutsche Bank 154 0.01

12,543 Deutsche Boerse 1,479 0.12

80,128 E.ON 743 0.06

6,881 Henkel 384 0.03

32,096 Infineon Technologies 1,090 0.09

17,838 Merck KGaA 3,322 0.26

9,015 MTU Aero Engines 1,265 0.10

8,480 Muenchener Rueckversicherungs-Gesellschaftin Muenchen 1,720 0.13

13,978 Puma 1,269 0.10

48,129 SAP 4,634 0.36

27,786 Siemens 3,340 0.26

54,756 Telefonica Deutschland 110 0.01

Spain 10,539 0.82

8,943 Amadeus IT 430 0.03

688,048 Banco Bilbao Vizcaya Argentaria 2,753 0.21

81,947 CaixaBank 158 0.01

328,508 Iberdrola 2,768 0.22

65,729 Industria de Diseno Textil 1,558 0.12

28,346 Naturgy Energy 586 0.05

69,978 Red Electrica 1,115 0.09

126,740 Repsol 1,056 0.08

5,759 Siemens Gamesa Renewable Energy 115 0.01

Italy 6,513 0.51

55,043 Assicurazioni Generali 830 0.07

302,011 Enel 1,723 0.13

1,843,402 Intesa Sanpaolo 3,318 0.26

115,117 Terna Rete Elettrica Nazionale 642 0.05




£‘000

Percentage of total

net assets

Finland 4,502 0.35

13,260 Kesko 311 0.02

46,468 Neste 1,660 0.13

207,373 Nokia 874 0.07

30,427 UPM-Kymmene 835 0.07

79,056 WartsilaAbp 822 0.06

Switzerland 42,082 3.28

47,078 ABB 1,226 0.09

2,244 Adecco 78 0.01

14,390 Alcon 855 0.07

52 Barry Callebaut 93 0.01

10,845 Chubb 1,471 0.11

17,196 Cie Financiere Richemont 1,919 0.15

23,653 Coca-Cola HBC 549 0.04

16,123 Credit Suisse 117 0.01

1,591 Geberit 915 0.07

654 Givaudan 2,404 0.19

9,089 Kuehne + Nagel International 1,958 0.15

7,520 Lonza 4,561 0.36

80,464 Nestle 7,755 0.60

3,776 Novartis 226 0.02

19,811 Roche 5,819 0.45

354 SGS 803 0.06

757 Sonova 214 0.02

41,072 Swiss Re 2,900 0.23

4,339 Swisscom 1,809 0.14

14,953 TE Connectivity 1,741 0.13

128,129 UBS 1,668 0.13

8,595 Vifor Pharma 724 0.06

7,353 Zurich Insurance 2,277 0.18

Sweden 13,583 1.06

14,408 Assa Abloy 305 0.02

14,843 Atlas Copco 'A' 688 0.05

6,726 Atlas Copco 'B' 264 0.02

70,418 Boliden 1,818 0.14

41,487 Essity 995 0.08

2,697 Evolution 215 0.02

34,894 H & M Hennes & Mauritz 465 0.04

21,236 ICA Gruppen 945 0.07

56,209 Lundin Energy 1,487 0.12

37,209 Sandvik 696 0.05

60,334 Skandinaviska Enskilda Banken 660 0.05

169,036 Svenska Cellulosa AB 2,074 0.16

53,655 Svenska Handelsbanken 427 0.03




£‘000

Percentage of total

net assets

7,363 Swedbank 111 0.01

81,885 Tele2 879 0.07

41,532 Telefonaktiebolaget LM Ericsson 315 0.03

425,953 Telia Co 1,239 0.10

Ireland 27,755 2.17

26,370 Accenture 7,125 0.56

10,389 Allegion 971 0.08

30,947 CRH 1,130 0.09

13,002 DCC 720 0.06

9,402 Eaton 1,151 0.09

4,101 Flutter Entertainment 418 0.03

4,574 Horizon Therapeutics 359 0.03

140 Jazz Pharmaceuticals 13 -

114,643 Johnson Controls International 6,476 0.50

7,593 Kerry 710 0.05

7,149 Kingspan 619 0.05

14,562 Linde 3,500 0.27

4,587 STERIS 757 0.06

26,975 Trane Technologies 3,806 0.30

Israel 3,362 0.26

252,335 Bank Hapoalim 1,861 0.14

65,490 Bank Leumi Le-Israel 478 0.04

3,168 CyberArk Software 414 0.03

5,275 Wix.com 609 0.05

Belgium 4,624 0.36

24,216 Anheuser-Busch InBev 1,015 0.08

28,549 KBC 1,798 0.14

1,046 UCB 85 0.01

47,233 Umicore 1,726 0.13

Denmark 13,441 1.05

9,058 Carlsberg 1,060 0.08

1,063 Coloplast 131 0.01

626 Genmab 183 0.01

69,021 Novo Nordisk 5,569 0.44

10,703 Novozymes 611 0.05

18,559 Orsted 1,789 0.14

5,845 Pandora 545 0.04

141,435 Vestas Wind Systems 3,553 0.28

Norway 6,609 0.52

176,434 Equinor 3,344 0.26




£‘000

Percentage of total

net assets

45,341 Norsk Hydro 222 0.02

152,141 Orkla 1,045 0.08

179,973 Telenor 1,998 0.16

Austria 2,368 0.19

41,089 OMV 1,636 0.13

9,448 Verbund 732 0.06

Portugal 990 0.08

140,775 Galp Energia 990 0.08

North America Equities 866,361 67.62

United States 820,475 64.04

41,500 3M 5,335 0.42

43,344 AbbVie 3,777 0.29

2,212 ABIOMED 526 0.04

4,466 Activision Blizzard 198 0.02

18,470 Adobe 9,332 0.73

28,897 Advanced Micro Devices 3,463 0.27

30,756 Agilent Technologies 3,502 0.27

345 Air Products and Chemicals 75 0.01

2,968 Align Technology 1,371 0.11

40,605 Ally Financial 1,407 0.11

1,058 Alnylam Pharmaceuticals 147 0.01

7,525 Alphabet 'A' 16,142 1.26

8,977 Alphabet 'C' 19,317 1.51

12,061 Amazon.com 31,967 2.49

12,288 AMC Entertainment 315 0.02

627 AMERCO 334 0.03

56,693 American Express 6,528 0.51

16,913 American International 672 0.05

14,776 American Tower REIT 2,932 0.23

5,078 Ameriprise Financial 1,111 0.09

7,238 AmerisourceBergen 633 0.05

24,572 Amgen 3,694 0.29

14,408 Analog Devices 1,962 0.15

5,535 ANSYS 1,638 0.13

4,996 Anthem 1,534 0.12

443,597 Apple 55,468 4.33

49,575 Applied Materials 5,515 0.43

26,870 Aptiv 3,255 0.25

16,967 Archer-Daniels-Midland 798 0.06

86,960 AT&T 1,501 0.12

10,666 Autodesk 2,049 0.16

31,419 Automatic Data Processing 5,489 0.43




£‘000

Percentage of total

net assets

107,720 Baker Hughes 1,900 0.15

17,501 Ball 1,236 0.10

207,207 Bank of America 6,965 0.54

52,983 Bank of New York Mellon 2,195 0.17

36,874 Best Buy 2,977 0.23

1,100 Bill.com 234 0.02

7,740 Biogen 1,377 0.11

4,657 BioMarin Pharmaceutical 304 0.02

8,495 BlackRock 5,809 0.45

1,128 Booking 1,791 0.14

14,245 BorgWarner 466 0.04

12,656 Boston Properties REIT 1,032 0.08

77,977 Bristol-Myers Squibb 3,160 0.25

11,448 Brown-Forman 609 0.05

28,099 Bunge 1,838 0.14

305 Cable One 408 0.03

18,032 Cadence Design Systems 2,417 0.19

6,173 Caesars Entertainment 420 0.03

20,849 Campbell Soup 636 0.05

29,535 Cardinal Health 1,032 0.08

27,974 Carrier Global 1,144 0.09

20,786 Caterpillar 3,042 0.24

43,796 CBRE 3,164 0.25

9,604 Centene 518 0.04

5,569 Cerner 296 0.02

18,988 CH Robinson Worldwide 1,365 0.11

27,547 Charles Schwab 1,612 0.13

13,873 Cheniere Energy 1,098 0.09

264 Chipotle Mexican Grill 328 0.03

19,608 Cigna 2,844 0.22

165,689 Cisco Systems 6,871 0.54

6,820 Cisco Systems Inc/Delaware 283 0.02

75,998 Citigroup 3,659 0.29

12,748 Citrix Systems 776 0.06

9,799 Clorox 1,206 0.09

1,481 Cloudflare 210 0.02

8,371 CME 1,395 0.11

151,007 Coca-Cola 5,987 0.47

9,458 Cognex 552 0.04

13,577 Cognizant Technology Solutions 800 0.06

39,968 Colgate-Palmolive 2,266 0.18

93,398 Comcast 3,528 0.28

5,515 Conagra Brands 127 0.01

34,677 Consolidated Edison 2,036 0.16

8,431 Copart 925 0.07

33,126 Corning 929 0.07




£‘000

Percentage of total

net assets

17,140 Corteva 583 0.05

2,554 Costco Wholesale 1,041 0.08

1,850 COUPA SOFTWARE 275 0.02

2,899 Crowdstrike 475 0.04

7,674 Crown Castle International REIT 1,053 0.08

83,212 CSX 2,179 0.17

16,684 Cummins 2,645 0.21

42,219 CVS Health 2,844 0.22

5,518 Danaher 1,341 0.10

8,222 Darden Restaurants 857 0.07

7,449 DaVita 532 0.04

9,668 Deere 2,523 0.20

5,137 Dell Technologies 219 0.02

14,563 DENTSPLY SIRONA 536 0.04

3,748 Dexcom 1,593 0.12

4,838 Digital Realty Trust REIT 613 0.05

7,821 Discovery 'A' 137 0.01

22,848 Discovery 'C' 392 0.03

3,476 DocuSign 647 0.05

8,442 Dow 350 0.03

2,526 DraftKings 66 -

23,487 DuPont de Nemours 1,313 0.10

14,575 eBay 743 0.06

33,440 Ecolab 5,595 0.44

42,772 Edwards Lifesciences 3,470 0.27

8,281 Elanco Animal Health 180 0.01

1,116 Electronic Arts 105 0.01

26,427 Eli Lilly 4,961 0.39

6,899 Enphase Energy 1,303 0.10

5,337 Equinix REIT 3,278 0.26

3,894 Equitable 93 0.01

2,325 Etsy 482 0.04

38,200 Eversource Energy 2,376 0.19

3,895 Exact Sciences 251 0.02

69,488 Exelon 2,770 0.22

47,399 Expeditors International of Washington 4,358 0.34

3,783 FactSet Research Systems 1,340 0.10

22,049 Fastenal 986 0.08

3,168 FedEx 552 0.04

4,233 Fidelity National Information Services 334 0.03

7,274 Fiserv 532 0.04

1,401 Fortive 78 0.01

8,732 Fortune Brands Home & Security 663 0.05

4,866 Franklin Resources 119 0.01

680 Generac 216 0.02

14,894 General Electric 1,068 0.08




£‘000

Percentage of total

net assets

36,463 General Mills 1,702 0.13

60,264 Gilead Sciences 3,136 0.24

6,271 Goldman Sachs 1,806 0.14

88,844 Halliburton 1,448 0.11

12,448 Hasbro 912 0.07

11,808 HCA Healthcare 2,014 0.16

70,320 Healthpeak Properties REIT 1,746 0.14

1,074 HEICO 112 0.01

6,230 HEICO Corporation 586 0.05

219,044 Hewlett Packard Enterprise 2,376 0.19

9,904 Hilton Worldwide 1,011 0.08

16,696 Hologic 943 0.07

39,917 Home Depot 12,096 0.94

18,113 Hormel Foods 567 0.04

26,016 Howmet Aerospace 553 0.04

68,557 HP 1,827 0.14

1,771 HubSpot 1,080 0.08

4,382 Humana 1,391 0.11

156,317 Huntington Bancshares 1,753 0.14

6,877 IDEXX Laboratories 3,161 0.25

32,562 IHS Markit 3,146 0.25

10,121 Illinois Tool Works 1,776 0.14

5,213 Illumina 1,441 0.11

6,161 Insulet 1,343 0.10

179,897 Intel 6,689 0.52

75,091 International Business Machines 6,649 0.52

12,141 International Flavors & Fragrances 1,307 0.10

37,963 Interpublic Group of Companies 952 0.07

11,155 Intuit 5,500 0.43

5,604 Intuitive Surgical 1,373 0.11

49,261 Invesco 831 0.06

12,666 Iron Mountain REIT 435 0.03

61,558 Johnson & Johnson 7,256 0.57

60,724 JPMorgan Chase 7,288 0.57

9,168 Kansas City Southern 2,018 0.16

71,328 Kellogg 3,298 0.26

16,651 Keurig Dr Pepper 428 0.03

52,212 KeyCorp 886 0.07

14,994 Keysight Technologies 2,203 0.17

17,596 Kimberly-Clark 1,733 0.13

37,243 Kroger 1,170 0.09

1 Kyndryl – -

15,017 L3Harris Technologies 2,373 0.18

3,395 Laboratory of America 732 0.06

6,198 Lam Research 3,185 0.25

1,398 Lennox International 327 0.03




£‘000

Percentage of total

net assets

12,929 Lincoln National 648 0.05

1,445 Live Nation Entertainment 116 0.01

26,717 LKQ 1,128 0.09

25,136 Lowe's 4,651 0.36

2,335 Lululemon Athletica 802 0.06

15,328 Lumen Technologies 143 0.01

22,817 Marathon Petroleum 1,048 0.08

1,003 Marriott International 112 0.01

27,016 Marsh & McLennan 3,350 0.26

20,076 Marvell Technology 1,079 0.08

10,718 Masco 534 0.04

27,222 Mastercard 6,475 0.51

18,279 McCormick 1,185 0.09

5,581 McDonald's 1,031 0.08

1,586 MercadoLibre 1,425 0.11

85,942 Merck 4,862 0.38

48,102 Meta Platforms 11,794 0.92

25,591 MetLife 1,134 0.09

2,009 Mettler-Toledo International 2,297 0.18

52,037 MGM Resorts International 1,557 0.12

27,153 Micron Technology 1,723 0.13

229,596 Microsoft 57,369 4.48

8,534 Moderna 2,278 0.18

50,121 Molson Coors Beverage 1,683 0.13

1,149 MongoDB 432 0.03

6,642 Moody's 1,961 0.15

63,055 Morgan Stanley 4,520 0.35

45,046 Mosaic 1,164 0.09

9,038 Motorola Solutions 1,729 0.13

8,164 Netflix 3,960 0.31

51,134 Newell Brands 829 0.06

29,000 Newmont 1,203 0.09

136,552 NextEra Energy 8,958 0.70

37,043 NIKE 4,739 0.37

11,967 Norfolk Southern 2,399 0.19

26,095 Northern Trust 2,282 0.18

24,509 NortonLifeLock 460 0.04

3,404 Novavax 537 0.04

3,531 Novocure 250 0.02

91,676 NVIDIA 22,642 1.77

7,453 Okta 1,210 0.09

26,478 ON Semiconductor 1,229 0.10

42,600 ONEOK 1,926 0.15

26,897 Oracle 1,845 0.14

23,468 Owens Corning 1,504 0.12

2,134 PACCAR 135 0.01




£‘000

Percentage of total

net assets

3,474 Parker-Hannifin 793 0.06

1,693 Paycom Software 559 0.04

32,960 PayPal 4,606 0.36

6,993 Pentair 389 0.03

62,095 PepsiCo 7,499 0.58

22,788 Phillips 66 1,191 0.09

9,174 Pinterest 278 0.02

23,429 Plug Power 706 0.05

17,797 PNC Financial Services 2,648 0.21

1,427 Pool 598 0.05

9,137 PPG Industries 1,064 0.08

6,763 Principal Financial 351 0.03

74,983 Procter & Gamble 8,195 0.64

11,454 Progressive 805 0.06

42,831 Prologis REIT 4,880 0.38

29,236 Prudential Financial 2,259 0.18

5,638 PTC 467 0.04

22,353 Public Service Enterprise 1,055 0.08

2,925 QUALCOMM 399 0.03

13,758 Quest Diagnostics 1,547 0.12

1,588 Regeneron Pharmaceuticals 764 0.06

138,322 Regions Financial 2,379 0.19

10,949 ResMed 2,109 0.16

2,430 RingCentral 398 0.03

17,180 Robert Half International 1,442 0.11

5,768 Rockwell Automation 1,465 0.11

2,385 Roku 410 0.03

2,809 Roper Technologies 984 0.08

7,753 Royal Caribbean Cruises 410 0.03

7,985 S&P Global 2,751 0.21

38,963 salesforce.com 8,399 0.66

893 SBA Communications REIT 232 0.02

179,454 Schlumberger 3,889 0.30

9,872 Sempra Energy 894 0.07

10,363 ServiceNow 5,069 0.40

9,595 Sherwin-Williams 2,401 0.19

2,772 Simon Property REIT 320 0.02

6,223 Skyworks Solutions 713 0.06

22,728 Snap 818 0.06

2,413 Snap-on 376 0.03

6,427 Snowflake 1,651 0.13

1,778 SolarEdge Technologies 440 0.03

8,935 Splunk 817 0.06

10,940 Square 1,723 0.13

21,235 Starbucks 1,759 0.14

28,926 State Street 1,945 0.15




£‘000

Percentage of total

net assets

8,742 Steel Dynamics 395 0.03

14,608 Sunrun 508 0.04

3,896 SVB Financial 2,040 0.16

11,059 Sysco 585 0.05

14,414 T Rowe Price 2,177 0.17

17,765 Target 3,274 0.26

8,765 Teladoc Health 671 0.05

3,904 Teledyne Technologies 1,227 0.10

25,629 Tesla 22,172 1.73

54,321 Texas Instruments 7,897 0.62

9,533 Thermo Fisher Scientific 4,562 0.36

28,968 TJX 1,521 0.12

5,599 Tractor Supply 954 0.07

342 TransDigm 149 0.01

13,147 Travelers 1,461 0.11

29,215 Trimble 1,897 0.15

44,520 Truist Financial 1,996 0.16

8,007 Twilio 1,732 0.13

10,142 Twitter 337 0.03

6,439 Uber Technologies 185 0.01

6,357 UGI 198 0.02

9,088 Union Pacific 1,619 0.13

14,427 United Parcel Service 2,163 0.17

500 United Rentals 128 0.01

17,038 UnitedHealth 5,721 0.45

5,320 Vail Resorts 1,333 0.10

14,018 Valero Energy 709 0.06

2,600 Ventas REIT 92 0.01

81,918 Verizon Communications 3,113 0.24

17,198 Vertex Pharmaceuticals 2,430 0.19

23,244 VF 1,261 0.10

25,979 ViacomCBS 607 0.05

56,478 Visa 8,272 0.65

21,178 VMware 1,867 0.15

24,215 Walgreens Boots Alliance 820 0.06

58,184 Walt Disney 6,371 0.50

14,506 Waters 3,596 0.28

13,361 Welltower REIT 804 0.06

17,013 West Pharmaceutical Services 5,689 0.44

3,593 Western Digital 157 0.01

27,431 Western Union 328 0.03

97,646 Weyerhaeuser REIT 2,779 0.22

20,385 Williams 413 0.03

8,334 Workday 1,726 0.13

9,395 WW Grainger 3,418 0.27

7,955 Xilinx 1,371 0.11




£‘000

Percentage of total

net assets

50,265 Xylem 4,599 0.36

2,475 Zebra Technologies 1,100 0.09

22,473 Zoetis 3,768 0.29

4,492 Zoom Video Communications 718 0.06

Canada 45,886 3.58

18,859 Agnico Eagle Mines 707 0.05

16,297 AltaGas 233 0.02

66,425 Ballard Power Systems 753 0.06

32,974 Bank of Montreal 2,584 0.20

120,307 Bank of Nova Scotia 5,655 0.44

18,551 BlackBerry 133 0.01

60,704 Brookfield Asset Management 2,551 0.20

75,292 CAE 1,361 0.11

30,916 Cameco 539 0.04

26,130 Canadian Imperial Bank of Commerce 2,191 0.17

3,626 Canadian Tire 361 0.03

58,092 Enbridge 1,640 0.13

11,369 Franco-Nevada 1,173 0.09

16,015 George Weston 1,269 0.10

35,581 Gildan Activewear 1,083 0.08

2,904 Intact Financial 271 0.02

4,099 Keyera 68 -

1,861 Lightspeed Commerce 71 -

10,003 Loblaw 566 0.04

102,229 Lundin Mining 603 0.05

12,177 Magna International 686 0.05

73,882 Manulife Financial 994 0.08

12,995 Metro 466 0.04

21,017 National Bank of Canada 1,229 0.10

13,553 Nutrien 674 0.05

13,867 Parkland 269 0.02

11,835 Pembina Pipeline 264 0.02

21,685 Ritchie Bros Auctioneers 1,107 0.09

37,235 Rogers Communications 1,251 0.10

30,215 Royal Bank of Canada 2,249 0.17

4,152 Shopify 4,749 0.37

37,704 Sun Life Financial 1,504 0.12

79,761 TELUS (Non-Canadian shares) 1,371 0.11

64,208 Toronto-Dominion Bank 3,411 0.27

9,525 West Fraser Timber 588 0.05

20,034 Wheaton Precious Metals 630 0.05

6,038 WSP Global 632 0.05




£‘000

Percentage of total

net assets

Pacific Equities 26,248 2.05

Australia 23,926 1.87

1,095 Afterpay 64 0.01

4,337 Ampol 67 0.01

146,241 APA 747 0.06

23,285 Aristocrat Leisure 551 0.04

24,931 ASX 1,208 0.09

40,889 Aurizon 74 0.01

64,529 Australia & New Zealand Banking 923 0.07

193,777 Brambles 1,040 0.08

7,347 Cochlear 857 0.07

15,924 Coles 154 0.01

23,064 Commonwealth Bank of Australia 1,152 0.09

7,641 CSL 1,256 0.10

146,317 Dexus REIT 874 0.07

67,232 Fortescue Metals 613 0.05

93,790 GPT REIT 264 0.02

93,673 Insurance Australia 222 0.02

48,019 Lendlease 275 0.02

13,925 Macquarie 1,468 0.11

758,912 Mirvac REIT 1,163 0.09

33,454 National Australia Bank 489 0.04

23,589 Newcrest Mining 299 0.02

13,700 Northern Star Resources 69 0.01

369,017 Oil Search 754 0.06

4,584 Ramsay Health Care 164 0.01

164,831 Santos 563 0.04

8,420 SEEK 157 0.01

421,958 Stockland REIT 988 0.08

297,950 Sydney Airport 1,325 0.10

125,518 Tabcorp 334 0.03

223,611 Transurban 1,637 0.13

192,442 Vicinity Centres REIT 175 0.01

82,957 Westpac Banking 912 0.07

268,837 Woodside Petroleum 3,088 0.24

Macau 1,181 0.09

679,600 Sands China 1,181 0.09

New Zealand 1,141 0.09

136,237 Auckland International Airport 542 0.04

10,770 Fisher & Paykel Healthcare 183 0.02

176,466 Meridian Energy 416 0.03




£‘000

Percentage of total

net assets

Derivatives 155 0.01

Forward Currency Contracts 161 0.01

Buy USD 4,958,763 Sell GBP 3,586,061 09/12/2021 161 0.01

Futures (6) -

13 MSCI EAFE NYF 17/12/2021 (67) -

16 S&P 500 EMINI CME 17/12/2021 61 -

Total investment assets and liabilities 1,274,561 99.48

Net other assets 6,658 0.52

Total net assets 1,281,219 100.00

All investments (excluding OTC derivatives) are listed on recognised stock exchanges and are approved securities, regulated collective investment schemes or approved derivatives within the meaning of the FCA rules. There are no comparative figures shown as the fund launched on 12 November 2020.




Statement of total returnFor the period from 12 November 2020 to 30 November 2021


Notes £'000 £'000

Income:

Net capital gains 1 78,169

Revenue 2 7,711

Expenses 3 (666)

Interest payable and similar charges (8)

Net revenue before taxation 7,037

Taxation 4 (489)

Net revenue after taxation 6,548

Total return before distributions 84,717

Distributions 5 (6,547)

Change in net assets attributable to unitholders from investment activities 78,170

Statement of change in net assets attributable to unitholdersFor the period from 12 November 2020 to 30 November 2021


£'000 £'000

Opening net assets attributable to unitholders –

Amounts receivable on the issue of units 1,269,783

Amounts payable on the cancellation of units (84,551)

1,185,232

Change in net assets attributable to unitholders from investment activities (see above) 78,170

Retained distribution on accumulation unit 17,817

Closing net assets attributable to unitholders 1,281,219 Note: The fund launched on 12 November 2020, therefore no comparatives have been presented.



Balance sheetAs at 30 November 2021

30 November 2021

Notes £'000 £'000

Assets:

Fixed assets:

Investment assets 1,274,628

Current assets:

Debtors 6 35,266

Cash and bank balances 7 4,632

39,898

Total assets 1,314,526

Liabilities:

Investment liabilities (67)

Creditors 8 (33,205)

Distribution payable (35)

(33,240)

Total liabilities (33,307)

Net assets attributable to unitholders 1,281,219 Note: The fund launched on 12 November 2020, therefore no comparatives have been presented.


Notes to the Financial Statements For the period from 12 November 2020 to 30 November 2021

1 Net Capital Gains


£'000

Non-derivative securities* 77,686

Derivative contracts* 251

Forward currency contracts* 30

Currency gains* 137

Transaction charges (1)

US REIT dividends* 66

Net capital gains 78,169

*Includes realised gains of £3,843,000 and unrealised gains of £74,327,000.

2 Revenue


£'000

UK Dividends 550

Overseas Dividends 6,982

UK REIT 25

Overseas REIT 110

Stock Dividends 44

Total revenue 7,711

3 Expenses


£'000

Payable to the ACS Manager, associates of the ACS Manager and agents of either of them:

ACS Manager's fixed fee 683

Management fee rebates (17)

Total expenses 666

Irrecoverable VAT is included in the above expense where relevant.

4 Taxation


£'000

Analysis of charge in period

Overseas taxes 489



£’000

Total current tax 489

As the fund is an Authorised Contractual Scheme, it is exempt from United Kingdom (UK) tax on capital gains realised on the disposal of investments held within the fund and any UK corporation tax.

5 Distributions (including the movement between net revenue and distributions)


£'000

Final distribution 17,852

17,852

Add: Income deducted on cancellation of units 606

Deduct: Income received on issue of units (11,911)

Total distribution for the period 6,547

Movement between net revenue and distribution

Net revenue after taxation 6,548

Undistributed revenue carried forward (1)

Total distribution for the period 6,547

Details of the distribution per unit are set out in this fund’s distribution tables.

6 Debtors

30 November 2021

£'000

Amount receivable from the ACS Manager for the issue of units 573

Sales awaiting settlement 32,587

Accrued revenue 1,974

Overseas tax recoverable 132

Total debtors 35,266

7 Liquidity

30 November 2021

£'000

Cash and bank balances

Cash at bank 4,487

Cash at broker 145

Total liquidity 4,632



8 Creditors

30 November 2021

£'000

Amount payable to the ACS Manager for cancellation of units 539

Accrued expenses payable to ACS Manager 156

Purchases awaiting settlement 32,510

Total creditors 33,205

9 Related Party TransactionsAberdeen Standard Fund Managers Limited, as Authorised Contractual Scheme Manager (ACS Manager) is a related party and acts as principal in respect of all transactions of units in the fund.

The aggregate monies received through issue and paid on cancellation of units are disclosed in the statement of change in net assets attributable to unitholders.

Any amounts due from or due to Aberdeen Standard Fund Managers Limited at the end of the accounting period are disclosed in notes 6 and 8.

Amounts payable to Aberdeen Standard Fund Managers Limited, in respect of periodic charge, are disclosed in note 3 and any amounts due at the period end in note 8.

10 Portfolio Transaction CostsThere are no transaction costs associated with the purchases or sales of derivatives during the period.

Collective investments operate within the terms of the offer document or prospectus. Typically we do not invest into funds that require an initial charge to be made. The underlying price may contain an estimation of cost known as a dilution levy which is applied from time to time.

Derivatives are dealt on a spread agreed between buyer and seller with reference to the underlying investment.

Trades in the period





Equities 1,250,444 64,501

Collective investment schemes 89,862 79.326

Corporate actions 3 94

Trades in the period before transaction costs 1,340,309 143,921

Commissions

Equities 72 (1)

Collective investment schemes 5 (2)

Total commissions 77 (3)

Taxes

Equities 452 –

Total taxes 452 –

Total transaction costs 529 (3)

Total net trades in the period after transaction costs 1,340,838 143,918



Total transaction costs expressed as a percentage of asset type cost





Commissions

Equities 0.01 –

Collective investment schemes 0.01 –

Taxes

Equities 0.04 –

Total transaction costs expressed as a percentage of net asset value


%

Commissions 0.02

Taxes 0.10

At the balance sheet date, the average portfolio dealing spread (i.e. the spread between bid and offer prices expressed as a percentage of the offer price) was 0.09%, this is representative of the average spread on the assets held during the period.

11 Units in issue reconciliation

Opening units

12 November 2020

Creations during

the period

Cancellations during

the period

Closing units

30 November 2021

B1 Class Accumulation – 1,040,488,724 (20,549,543) 1,019,939,181

B2 Class Income – 52,773,626 (26,400,000) 26,373,626

X5 Class Accumulation – 30,000,000 (30,000,000) –

12 Fair Value HierarchyThe three levels of the fair value hierarchy under FRS 102 are described below:

Level 1: Unadjusted quoted market prices in active markets that are accessible at the measurement date for the identical unrestricted assets or liabilities.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices).

Level 3: Inputs for asset or liability that are not based on observable market data (unobservable inputs).

Fair value of investment assets

30 November 2021 £'000

Level 1

30 November 2021 £'000

Level 2

30 November 2021 £'000

Level 3

Equities

1,261,699

–

–

Collective Investment Schemes

12,707

–

–

Derivatives

61

161

–

Total investment assets

1,274,467

161

–



Fair value of investment liabilities

30 November 2021 £'000

Level 1

30 November 2021 £'000

Level 2

30 November 2021 £'000

Level 3

Derivatives

(67)

–

–

Total investment liabilities

(67)

–

–

13 Risk Management Policies and DisclosuresThe risks inherent in the fund’s investment portfolio are as follows:

Foreign currency riskFluctuations in the foreign exchange rates can adversely affect the value of a portfolio. The following table details the net exposure to the principal foreign currencies that the fund is exposed to including any instruments used to hedge against foreign currencies, if applicable.

Net foreign

currency exposure

Currency30 November 2021

£'000

Australian Dollar

24,250

Canadian Dollar

46,043

Danish Krone

12,169

Euro

118,247

Hong Kong Dollar

10,052

Israeli Shekel

2,379

Japanese Yen

84,085

New Zealand Dollar

1,142

Norwegian Krone

3,262

Singapore Dollar

4,639

Swedish Krona

13,282

Swiss Franc

39,462

US Dollar

858,511

Total 1,217,523

At 30 November 2021, if the value of Sterling increased or decreased by 5% against all other currencies, with all other variables remaining constant, then the change in net assets attributable to unitholders from investment activities will increase or decrease by approximately £60,876,246.

Interest rate riskThe majority of the fund's financial assets are in non-interest bearing assets. Therefore, the fund's exposure to interest rate risk is considered insignificant.



Other price riskEach fund’s investment portfolio is exposed to market price fluctuations which are monitored by the Investment Manager in pursuance of the investment objectives and policies. Adherence to investment guidelines and to investment and borrowing powers mitigate the risk of excessive exposure to any particular type of security or issuer.

An increase or decrease in market values will therefore have a direct effect on the value of the investment assets in the portfolio and therefore a proportionate effect on the value of the fund.

As at 30 November 2021, if the prices of investments held by the fund increased or decreased by 5%, with all other variables remaining constant, then net assets attributable to the unitholders would increase or decrease by approximately £63,728,031.

Financial derivatives instrument riskThese types of transaction can introduce market exposure greater than the market value of the instrument. These transactions exchange benefits with a third party at a future date creating both counterparty and concentration risk. The Investment Manager’s policies for managing these risks are outlined in the fund’s prospectus.

At the balance sheet date, the fund had the following exposures:

2021

Leveraged instruments

Market exposure

£'000

Market value£'000

Forward currency contracts 7,334 161

Futures 3,859 (6)

Total market exposure 11,193 155

The total mark to market exposure is the sum of the notional derivative contracts on a gross basis with no offsetting.

In accordance with articles 7 and 8 of the Alternative Investment Fund Managers Regulations 2013, the level of leverage of the fund must be calculated and monitored under both the gross and commitment methods and expressed as a percentage of the exposure of the fund and its Net Asset Value. Where a fund has no derivative usage leverage would be 100% under the commitment method. The gross method calculation excludes cash and cash equivalents which are highly liquid.

As at 30 November 2021, the leverage under the gross method was 100.09% and leverage under the commitment method was 100.15%

Counterparty riskWhere the fund enters market transactions this creates concentration risk where a clearing broker operates on an exchange. Where the broker is not solvent the market exposure can be transferred. Exposure is reduced by the daily exchange of margin by both parties held in the name of the depositary. At the period end, the fund had the following broker exposure.

2021

Market value of derivatives

£'000

Market value of cash

£'000Total

£'000

Percentage of total net assets

%

Broker or exchange exposure

Citigroup 161 - 161 0.01

Merrill Lynch International (6) 145 139 0.01

155 145 300 0.02

Liquidity riskAll of the fund's financial liabilities are payable on demand or in less than one year, 2021: £nil.



14 Subsequent eventInvestments in financial markets are affected by many factors, many of which have shifted following the outbreak of the conflict in Ukraine. The fund invests in a portfolio of assets, whose values have fallen since the end of period, primarily due to the global market volatility created by the conflict in Ukraine and the longer term uncertainty the conflict brings. As at the close of business on the balance sheet date, the Net Asset Value of the lead unit class ‘B1 Accumulation’ was 122.96p. The Net Asset Value of unit class ‘B1 Accumulation’ as at 22:30 on 21 March 2022 was 119.50p. This represents a change of 2.81% from the end of period value.

1 NetCapitalGainsHidden2RevenueHidden3ExpensesHidden4TaxationHidden5DistributionsHidden6DebtorsHidden7CashHidden8CreditorsHidden9RelatedPartyHidden10SharesinIssueHidden11FVHHidden12RiskManagementHidden13ForeignCurrencyRiskHidden14SubsequentEventsHiddena TaxationA2Hidden15 EquityPurchasesHidden16InterestPayableHidden17CapitalCommitHidden



Distribution tableFor the period 12 November 2020 to 30 November 2021 (in pence per unit)

Distribution paid 28/01/22

B1 Class Accumulation* 1.7469

B2 Class Income** 0.1309

X5 Class Accumulation*** –

* B1 Class Accumulation unit class was launched on 25 November 2020.** B2 Class Income unit class was launched on 22 October 2021.*** X5 Class Accumulation unit class was launched on 12 November 2020 and closed on 14 July 2021. No distribution was made on 28 January 2022.

Remuneration


Effective from 5 July 2021 Standard Life Aberdeen plc (SLA) was renamed abrdn plc.

Alternative Investment Fund Managers Directive (AIFMD)Remuneration Disclosure AIFM Annual Report and Accounts Remuneration Policy The abrdn plc Remuneration Policy applies with effect from 1 January 2021. The purpose of the abrdn plc Remuneration Policy (the “Policy”) is to document clearly the remuneration policies, practices and procedures of abrdn. It has been approved by the abrdn plc Remuneration Committee and is subject to the Remuneration Committee’s annual review. The Policy applies to employees of the abrdn group of companies (“abrdn”).

The Remuneration Committee of abrdn plc adopted an AIFM Remuneration Policy to ensure that the requirements of the Alternative Investment Fund Managers Directive (AIFMD) are fully adhered to by the group. This policy is available on request.

Remuneration Principlesabrdn applies Group wide principles for remuneration policies, procedures and practices ensuring that remuneration design and the basis for awards will be clear, transparent and fair, in line with business strategy, objectives, culture, values and long term interests of abrdn. Remuneration policies, procedures and practices should be consistent with and promote good conduct which includes sound and effective risk management and not encourage risk taking that exceeds the level of tolerated risk of abrdn. Total variable remuneration will be funded through pre-agreed distribution metrics. Where abrdn’s financial performance is subdued or negative, total variable remuneration should generally be contracted, taking into account both current remuneration and reductions in pay-outs of amounts previously granted and having regard for abrdn’s long term economic viability.

In addition to applying the abrdn wide principles above, the following principles are also applied when determining remuneration for employees:

a) Remuneration should be competitive and reflect both financial, non-financial and personal performance;

b) Our remuneration design will align the interests of employees, unitholders and importantly our clients/customers;

c) Our remuneration structure will reward delivery of results over appropriate time horizons and will include deferred variable compensation at an appropriate level for the employee’s role;

d) We will provide an appropriate level of fixed remuneration to balance risk and reward.

Governance and Regulatory Compliance The Remuneration Committee is made up of independent non-executive directors and makes recommendations to the Board of abrdn plc (the ”Board”) to assist it with its remuneration related duties. The Chief People Officer of abrdn is responsible for ensuring the implementation of the Policy in consultation with the Remuneration Committee as well as other members of the Executive Team (“Executive Body”) (as defined by the Board), if appropriate.

Financial and non-financial criteriaVariable remuneration is based on a rounded assessment of Group, Divisional and individual performance. When assessing individual performance, financial as well as non-financial criteria are taken into account. Individual performance is based on the individual’s appraisal, which includes an employee’s compliance with controls and applicable company standards including the Group’s Code of Ethics, including Treating Customers Fairly and Conduct Risk.

Conflicts of interestThe Conflicts of Interest Policy is designed to avoid conflicts of interest between abrdn and its clients. This Policy prohibits any employee from being involved in decisions on their own remuneration. Furthermore, all employees are required to adhere to abrdn’s Global Code of Conduct, which encompasses conflicts of interest.

The Policy should, at all times, adhere to local legislation, regulations or other provisions. In circumstances or in jurisdictions where there is any conflict between the Policy and local legislation, regulations or other provisions, then the latter will prevail.


Remuneration

Remuneration Framework Employee remuneration is composed principally of fixed and variable elements of reward as follows:

a) Fixed reward (fixed remuneration: salary (and cash allowances, if appropriate); and Benefits (including pension).

b) Variable reward (bonus, a proportion of which may be subject to retention or deferral depending on role and regulatory requirements) and senior employees may also be awarded a long-term incentive award).

Appropriate ratios of fixed: variable remuneration will be set to as to ensure that:

a) Fixed and variable components of total remuneration are appropriately balanced and

b) The fixed component is a sufficiently high proportion of total remuneration to allow abrdn plc to operate a fully flexible policy on variable remuneration components, including paying no variable remuneration component.

Fixed Remuneration Base salary provides a core reward for undertaking the role, where appropriate, and depending on the role, geographical or business market variances or other indicators, additional fixed cash allowances may make up a portion of fixed remuneration.

Benefits Benefits are made up of: core benefits, which are provided to all employees; and extra voluntary benefits that may be chosen by certain employees and which may require contribution through salary sacrifice or other arrangements. Extra voluntary benefits are designed to support the health and wellbeing of employees through enabling individual selection based on lifestyle choices. abrdn will ensure that the core and voluntary employee benefits policies are in line with relevant market practice, its views on managing its business risk objectives, culture and values and long-term interests and local requirements.

Pension abrdn’s pension policies (which consist of defined contribution plans and legacy defined benefit plans) are in line with legislative requirements, governance structures and market practice, and reflect abrdn’s long-term views on risk and financial volatility, its business objectives, culture and values and long-term interests and local requirements. In certain circumstances, abrdn may offer a cash allowance in lieu of any pension arrangement.

Annual Performance Bonus Awards

Employees who have been employed during a performance year (1 January to 31 December) may be eligible to be considered for an annual bonus in respect of that year. Eligibility criteria for an annual bonus are set out in the rules of the relevant bonus plan and/or contract of employment, as appropriate. The bonus plan in place is designed to reward performance in line with the business strategy, objectives, culture and values, long term interests and risk appetite of abrdn. All Executive Directors are awarded bonuses under an abrdn bonus plan as detailed in the Directors’ Remuneration Report.

Other variable Pay Plans Selected employees may participate in other variable pay plans, for example, performance fee share arrangements, where it is appropriate for their role or business unit. These plans operate under the overarching remuneration principles that apply across the group and, where appropriate, are also subject to specific principles governing incentives and are compliant with the requirements of any applicable regulatory standards.

Clawback/MalusA clawback/malus principle applies to the variable pay plan. This enables the Remuneration Committee to seek to recoup the deferred amount of any unvested variable pay, in the exceptional event of misstatement or misleading representation of performance; a significant failure of risk management and control; or serious misconduct by an individual.

Guaranteed Variable Remuneration Guaranteed variable remuneration is exceptional, occurs only in the context of hiring new staff and is limited to the first year of service.

AIFMD Identified Staff Staff considered AIFMD Identified Staff are those categories of staff whose professional activities have a material impact on the risk profiles of the AIFM or the AIFs that the AIFM manages.

AIFMD identified staff will include; Senior Management; Risk takers, Staff engaged in control functions; and any employees receiving total remuneration that takes them into the same remuneration bracket as senior management and risk takers, and whose professional activities have a material impact on the risk profiles of the Company or the funds that the Company manages.

Control Functions abrdn adheres to the principles and guidelines of regulations that apply to abrdn in defining control functions. control functions include, but are not necessarily limited to, Risk, Compliance, Internal Audit and Actuarial functions or roles.


abrdn will ensure that, as appropriate, senior employees engaged in a control function:

a) Are independent from the Business Units they oversee;

b) Have appropriate authority, and

c) Their remuneration is directly overseen by the Remuneration Committee.

This is achieved by the main control functions being outside the business, and a material proportion of their annual incentives being subject to a scorecard based on the performance of the control function. Performance against the scorecard is reviewed by the relevant independent governing committee (either Risk & Capital Committee, or Audit Committee). abrdn’s People Function reviews the remuneration of employees in control functions and benchmarks with the external market to ensure that it is market competitive and adequately reflects employees’ skills and experience.

Personal Hedging AIFMD Identified Staff are not permitted to undermine the risk alignment effects of the AIFMD Remuneration Code. Personal hedging strategies; or remuneration-related insurance; or liability-related insurance is not permissible on remuneration.

The table below provides an overview of the following:

• Aggregate total remuneration paid by Aberdeen Standard Fund Managers Limited to its entire staff; and

• Aggregate total remuneration paid by Aberdeen Standard Fund Managers Limited to its AIFM ‘Identified Staff’.

The ‘Identified Staff’ of Aberdeen Standard Fund Managers Limited are those employees who could have a material impact on the risk profile of Aberdeen Standard Fund Managers Limited or the AIFM funds it manages. This broadly includes senior management, decision makers and control functions. For the purposes of this disclosure, ‘Identified Staff’ includes employees of entities to which activities have been delegated.

Amounts shown reflect payments made during the financial reporting period in question. The reporting period runs from 1 January2021 to 31 December 2021 inclusive.

Headcount Total Remuneration£’000

Aberdeen Standard Fund Managers Limited 1 759 114,817

of which Fixed remuneration Variable remuneration

88,434 26,383

Aberdeen Standard Fund Managers Limited ‘Identified Staff’ 2 117 39,736

of which Senior Management 3 Other ‘Identified Staff’

61 56

25,011 14,725

1 As there are a number of individuals indirectly and directly employed by Aberdeen Standard Fund Managers Limited this figure represents an apportioned amount of abrdn’s total remuneration fixed and variable pay, apportioned to the Management Company on an AUM basis, plus any carried interest paid. The Headcount figure provided reflects the number of beneficiaries calculated on a Full Time Equivalent basis.

2 The Identified Staff disclosure relates to AIFM MRTs and represents total compensation of those staff of the Management Company who are fully or partly involved in the activities of the Management Company.

3 Senior management are defined in this table as Management Company Directors and members of the abrdn plc Board, together with its Executive Committee, Investment Management Committee and Group Product Committee.

Remuneration

Further Information


ConstitutionAberdeen Standard Authorised Contractual Scheme (ACS) I was incorporated on 12 November 2020 under the FCA Regulations. The Scheme is an Authorised Contractual Scheme (ACS) with variable capital under the Financial Conduct Authority’s Collective Investment Schemes Sourcebook (the “COLL Sourcebook”) and Financial Conduct Authority’s Investment Funds Sourcebook (“FUND”).

Consumers’ rights and protections, including any derived from EU legislation, are currently unaffected by the result of the UK referendum to leave the European Union and will remain unchanged unless and until the UK Government changes the applicable legislation.

Documentation and PricesCopies of the current Prospectus and Key Investor Information Documents (KIIDs) for the Aberdeen Standard ACS I, together with the latest Annual (and if issued later the interim) Report and Accounts for any fund, are available to download at www.abrdn.com. A paper copy of the Report and Accounts is available on request from the ACS Manager.

The Annual Report of the Scheme will be published on or before 31 March and the half-yearly report on or before 31 July in each year.

Notices/CorrespondencePlease send any notices to Aberdeen Standard Fund Managers Limited, Sunderland, SR43 4DZ. Any notice to the ACS Manager will only be effective when actually received by the ACS Manager. All notices will be sent to the investor at the address set out in the Application form or the latest address which the investor has notified to the ACS Manager, and will be deemed to have been received three days after posting.

Events detailed in these terms and conditions will be carried out on the dates specified, unless the dates are a non-business day, when they will be carried out on the next business day.

Complaints and Compensation Complaints about the operation of the Scheme and the funds may be made to the ACS Manager by email: [email protected] or by post to Aberdeen Standard Fund Managers Limited at PO Box 3733, Royal Wootton, Bassett, Swindon SN4 4BG.

Any complaint will be investigated and the outcome will be notified to the investor, within eight weeks. If the investor is not satisfied with the outcome, he/she may also write directly to the Financial Ombudsman Service, Exchange Tower, London E14 9SR. If the ACS Manager cannot meet its financial obligations to the investor, the investor may be entitled to compensation under the Investor’s Compensation Scheme, under the Financial Services Markets Act 2000. Details of the investor’s rights to compensation can be obtained from the ACS Manager on request.

Issued by Aberdeen Standard Fund Managers Limited. Authorised and regulated by the Financial Conduct Authority in the United Kingdom.

121040033

Important InformationThe above document is strictly for information purposes only and should not be considered as an offer, investment recommendation or solicitation, to deal in any of the investments or funds mentioned herein and does not constitute investment research. Aberdeen Standard Fund Managers Limited (abrdn) does not warrant the accuracy, adequacy or completeness of the information and materials. Any research or analysis used in the preparation of this document has been procured by abrdn for its own use and may have been acted on for its own purpose. The results thus obtained are made available only coincidentally and the information is not guaranteed as to its accuracy. Some of the information in this document may contain projections or other forward looking statements regarding future events or future financial performance of countries, markets or companies. These statements are only predictions and actual events or results may differ materially. The reader must make their own assessment of the relevance, accuracy and adequacy of the information contained in this document and make such independent investigations, as they may consider necessary or appropriate for the purpose of such assessment. Any opinion or estimate contained in this document is made on a general basis and is not to be relied on by the reader as advice. Neither abrdn nor any of its employees, associated group companies or agents have given any consideration to nor have they or any of them made any investigation of the investment objectives, financial situation or particular need of the reader, any specific person or group of persons. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of the reader, any person or group of persons acting on any information, opinion or estimate contained in this document. abrdn reserves the right to make changes and corrections to any information in this document at any time, without notice.

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