ALLSHARE INCOME UNIT TRUST

Transcription

1 ALLSHARE INCOME UNIT TRUST FOR THE PERIOD ENDED 30 SEPTEMBER 2017

2 Manager St. James's Place Unit Trust Group Limited PO Box 9034, Chelmsford, CM99 2XA United Kingdom Freephone: (Authorised and regulated by the Financial Conduct Authority) Directors of the Manager D. C. Bellamy A. M. Croft I. S. Gascoigne D. J. Lamb On 1 January 2018 D. C. Bellamy will retire from the board of St. James's Place Unit Trust Group Limited. Investment Adviser AXA Investment Managers UK Limited 7 Newgate Street London, EC1A 7NX United Kingdom (Authorised and regulated by the Financial Conduct Authority) Trustee BNY Mellon Trust & Depositary (UK) Limited National Westminster Bank Plc 160 Queen Victoria Street 250 Bishopsgate London, EC4V 4LA London, EC2M 4AA United Kingdom United Kingdom Following a full review and tender of trustee and depositary services provided to the St. James s Place range of authorised unit trusts, National Westminster Bank plc are to be appointed the new Trustee to the funds, replacing BNY Mellon Trust & Depositary (UK) Limited. The change is expected to take place on 1 December (Authorised and regulated by the Financial Conduct Authority) Registrar DST Financial Services Europe Limited DST House St. Nicholas Lane Basildon, SS15 5FS United Kingdom The name of the registrar changed from International Financial Data Services (UK) Limited to DST Financial Services Europe Limited on 14 August (Authorised and regulated by the Financial Conduct Authority) Independent Auditor PricewaterhouseCoopers LLP Atria One 144 Morrison Street Edinburgh, EH3 8EX United Kingdom Prospectus and Manager's Reports Copies of the up to date Prospectus (Scheme Particulars) and latest Manager's Report and Financial Statements for the range of St. James's Place Unit Trusts can be requested from a member of the St. James's Place Partnership or, at any time during normal business hours, from the Administration Centre at PO Box 9034, Chelmsford CM99 2XA. Freephone:

3 Report of the Manager The Report of the Manager consists of The Trust, Investment Objectives & Policy, The Trust's Performance, Risk and Reward Profile, Investment Adviser's Comments and Portfolio Statement. The Trust St. James's Place Allshare Income Unit Trust is an authorised Unit Trust scheme under section 243 of the Financial Services and Markets Act (2000) and is constituted by a Trust Deed dated 6 September The Unit Trust is subject to the rules of the Financial Conduct Authority's Collective Investment Scheme Sourcebook and is classified as a UCITS Scheme. Investment Objectives & Policy The investment objective of the Scheme is to achieve an above average level of income whilst also providing the potential for capital appreciation over the medium to long-term. The Scheme will be invested in a combination of primarily UK, but also global, equities. The Scheme is also permitted to invest in other asset classes permitted for UCITS schemes under COLL including other types of transferable securities, units and/or shares in collective investment schemes, money market instruments and deposits. The Scheme is permitted to invest in derivatives and forward transactions for the purposes of efficient portfolio management (including hedging). It is the Manager's intention that the assets of the Unit Trust will be invested so that the Unit Trust will be eligible for inclusion in an ISA. The Trust's Performance The performance of the Trust since its launch in October 2007, over the five year period since September 2012 and over the period under review is shown below. St. James's Place Allshare Income Unit Trust L Income units (offer to offer) L Accumulation units (offer to offer) H Accumulation units (offer to offer)* Y Accumulation units (offer to offer)* Source: Lipper for Fund returns 01/10/07 to 30/09/12 to 31/03/17 to 30/09/17 30/09/17 30/09/17 % change % change % change * Class H Accumulation and Y Accumulation units were made available on 01 December 2016 and the performance shown is from that date. REMEMBER THAT THE PRICE OF UNITS AND REVENUE FROM THEM MAY GO DOWN AS WELL AS UP. PLEASE BE AWARE THAT PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE PERFORMANCE. Risk and Reward Profile The synthetic risk and reward indicator for the St. James s Place Allshare Income Unit Trust, as disclosed in its most recent Key Investor Information Document (KIID), is a 4. It was calculated using performance data up to 6 February The risk category is recalculated weekly and during the year under review, the risk category did not change. 2

4 Report of the Manager (continued) Investment Adviser's Comments The key development in the six months ending 30th September 2017 was the poorly planned and executed Conservative party general election campaign. This has left the UK with a weakened prime minister and a weakened hand in the ongoing Brexit negotiations. The ebb and flow of these negotiations impacted sterling and, inevitably, the UK stock market due to the high percentage of overseas earnings. The portfolio outperformed a rising UK equity market. The financial sector was the main contributor to the rise in the market, with HSBC rising by over 15%. While HSBC is one of the fund s largest holdings, it is an underweight position. Despite this, the fund s holdings in the sector outperformed, mainly due to strength in Intermediate Capital and Jupiter. IQE was the largest contributor to the outperformance the shares doubling during the period as investors became excited about their exposure to the new Apple iphone. Other good contributors to outperformance were Conviviality, FDM Group and Senior. The key detractor was Vectura, which experienced a delay in the approval process for its generic competitor to Glaxo s Advair Drug. Both Safestyle and Topps Tiles underperformed, since they faced tougher trading conditions as consumers suffered a squeeze in net disposable income. New holdings were acquired in Forterra, Hollywood Bowl and RioTinto. The last of these returned to the portfolio after a period of strong commodity prices strengthened the company s balance sheet, leading to a return to payment of dividends. The holdings of BP and Intermediate Capital were increased. The holdings of Epwin, Gattaca and GLI Finance were sold. In addition, the strong price rises enabled the reduction of holdings in Conviviality and IQE. The holding in Safestyle was reduced prior to the profit warning. The Brexit negotiations will continue to have the ability to drive volatility. In addition, actions by the world s central banks will mark the end of the era of exceptionally accommodative monetary conditions. This is likely to involve the first rise in UK interest rates for 10 years. The swings in sentiment should produce some good opportunities. AXA Investment Managers UK Limited 13 October

5 Comparative Table as at 30 September 2017 (unaudited) Net Asset Value and Ongoing Charges Figure 30/09/17 31/03/17 31/03/16 31/03/15 L Income Closing net asset value ( 000) 89,937 91, , ,327 Closing number of units 84,634,077 89,635, ,263, ,173,618 Closing net asset value per unit (p) Operating charges* 1.85% 1.92% 1.86% 1.85% 30/09/17 31/03/17 31/03/16 31/03/15 L Accumulation Closing net asset value ( 000) 913, , ,742 1,047,034 Closing number of units 566,360, ,659, ,690, ,642,478 Closing net asset value per unit (p) Operating charges* 1.84% 1.92% 1.86% 1.85% 30/09/17 31/03/17 H Accumulation Closing net asset value ( 000) Closing number of units 6,676 6,676 Closing net asset value per unit (p) Operating charges* 2.35% 2.45% 30/09/17 31/03/17 Y Accumulation Closing net asset value ( 000) Closing number of units 13,311 13,311 Closing net asset value per unit (p) Operating charges* 1.11% 1.17% H Accumulation and Y Accumulation units were made available on 1 December *Operating charges are prepared using the same methodology as the ongoing charges appearing in the KIID, based on the information in this report. 4

6 Portfolio Statement as at 30 September 2017 (unaudited) Security Holdings Market Value 000 % of Net Assets Aerospace & Defence (1.83%) 22, DP Aircraft I 6,478,000 5, Senior 6,250,000 17, Banks (5.92%) 64, HSBC 6,000,000 44, Lloyds Banking 25,000,000 16, Secure Trust Bank 200,000 3, Construction & Materials (2.18%**) 22, Eurocell 4,870,000 12, Forterra 3,750,000 10, Electricity (0.08%) KSK Power Ventur 500, Equity Investment Instruments (6.41%) 61, Carador Income Fund 9,800,000 5, Ecofin Global Utilities and Infrastructure Trust 2,000,000 2, Fair Oaks Income 9,491,766 7, Foresight Solar Fund 7,150,000 7, Greencoat UK Wind Fund 6,750,000 8, ICG-Longbow Senior Secured UK Property Debt 4,400,000 4, Investments NextEnergy Solar Fund 6,750,000 7, P2P Global Investments Fund 1,200,000 9, Renewables Infrastructure 3,500,000 3, SQN Asset Finance Income Fund 5,325,000 5, Financial Services (6.28%) 80, Intermediate Capital 2,250,000 20, IP 3,464,774 4, Jupiter Fund Management 2,800,000 15, Polar Capital 1,150,000 5, Real Estate Credit Investments 5,750,000 9, Tullett Prebon 2,250,000 11, VPC Specialty Lending Investments 6,250,000 4, Xafinity 5,232,410 8, Fixed Line Telecommunications (2.65%) 26, BT 1,500,000 4, KCOM 11,750,000 11, Manx Telecom 5,750,000 11, Food & Drug Retailers (1.83%) 20, Conviviality 5,000,000 20, Food Producers (4.34%) 46, Devro 4,100,000 9, Greencore 5,250,000 10, Hilton Food 3,500,000 26, Gas, Water & Multiutilities (1.33%) 11, National Grid 1,191,666 11, General Industrials (1.42%**) 15, Low & Bonar 20,000,000 15, General Retailers (4.11%) 31, DFS Furniture 3,500,000 7, Pendragon 35,000,000 11, SafeStyle UK 2,787,001 5, Topps Tiles 9,916,667 7,

7 Portfolio Statement (continued) as at 30 September 2017 (unaudited) Security Holdings Market Value 000 % of Net Assets Household Goods & Home Construction (1.01%) 12, Bovis Homes 1,200,000 12, Industrial Engineering (0.48%) 4, Castings 1,021,250 4, Industrial Transportation (0.51%) 4, Amedeo Air Four Plus 4,400,000 4, Life Insurance (4.70%) 47, Aviva 1,950,000 10, Legal & General 5,900,000 15, Phoenix 2,950,000 22, Media (3.01%) 27, ITV 4,850,000 8, Tarsus 6,732,500 19, Mining (1.24%) 24, Anglo Pacific 10,305,000 13, ATH Resources* 790, Rio Tinto 300,000 10, Mobile Telecommunications (2.40%) 22, Vodafone 10,750,000 22, Non Equity Investment Instruments (3.47%) 39, St. James's Place Money Market Unit Trust L Acc 37,930,833 39, Oil & Gas Producers (9.52%) 97, BP 9,225,000 44, Royal Dutch Shell 2,330,000 53, Personal Goods (1.38%) 15, Unilever 350,000 15, Pharmaceuticals & Biotechnology (7.48%) 61, AstraZeneca 425,000 20, GlaxoSmithKline 2,000,000 29, Vectura 10,000,000 10, Real Estate Investment & Services (0.86%) 7, Sirius Real Estate 12,000,000 7, Real Estate Investment Trusts (4.58%) 55, Ediston Property Investment 7,750,000 8, McKay Securities 3,468,000 7, Mucklow A & J 1,782,512 9, NewRiver REIT 3,839,904 12, PRS REIT 8,676,694 8, Regional REIT 8,729,166 9, Software & Computer Services (5.08%) 52, Bond International Software* 1,525, Craneware 1,100,000 14, EMIS 1,200,000 11, FDM 1,925,000 18, Micro Focus International 375,782 9, Support Services (1.79%) 19, ienergizer 6,000,000 3, Midwich 1,500,000 5, SIG 4,000,000 7, St Ives 4,250,000 3,

8 Portfolio Statement (continued) as at 30 September 2017 (unaudited) Security Holdings Market Value 000 % of Net Assets Technology Hardware & Equipment (2.21%) 16, IQE 13,206,349 16, Tobacco (7.52%) 62, British American Tobacco 900,000 42, Imperial Brands 640,000 20, Travel & Leisure (1.52%) 24, GVC 2,100,000 17, Hollywood Bowl 4,000,000 7, Investment Assets 999, Total other assets (net) 3, Net assets 1,003, Comparative figures shown in brackets relate to 31 March All investments held are listed, unless otherwise stated. * Delisted securities. ** Comparative holdings have been restated. During the period under review the Manager decided to place some of the sterling cash held on deposit into the St. James s Place Money Market Unit Trust in order to spread risk across a number of institutions. The St. James s Place Money Market Unit Trust is highly liquid and is rated AAA by Standard & Poors. This investment is a related party. 7

9 Material Portfolio Changes Cost Purchases 000 St. James's Place Money Market Unit Trust L Acc 80,321 Rio Tinto 9,680 PRS REIT 8,677 Forterra 7,367 Hollywood Bowl 6,334 Intermediate Capital 4,828 Real Estate Credit Investments 4,135 BP 2,153 Regional REIT 2,003 Greencore 1,343 Proceeds Sales 000 St. James's Place Money Market Unit Trust L Acc 75,335 IQE 22,667 Epwin 9,763 Conviviality 6,392 AstraZeneca 4,606 NewRiver REIT 3,630 Indus Gas 3,178 British American Tobacco 2,743 SafeStyle UK 2,647 Sirius Real Estate 2,630 This investment is a related party. 8

10 Statement of Total Return for the period 01 April 2017 to 30 September 2017 (unaudited) Income Net capital gains Revenue Expenses Interest payable and similar charges Net revenue before taxation Taxation Net revenue after taxation Total return distributions Distributions Change in net assets attributable to unitholders from investment activities 01/04/17 to 30/09/17 01/04/16 to 30/09/ ,553 60,664 24,349 29,802 (7,696) (9,783) ,653 20,019 (19) - 16,634 20,019 68,187 80,683 (23,928) (29,396) 44,259 51,287 Statement of Change in Net Assets Attributable to Unitholders for the period 01 April 2017 to 30 September 2017 (unaudited) 01/04/17 to 30/09/17 01/04/16 to 30/09/ Opening net assets attributable to unitholders 997,392 1,035,313 Movement due to creation and cancellation of units: Amounts receivable on creation of units* 1,390 4,607 Amounts payable on cancellation of units* (61,483) (91,242) Change in net assets attributable to unitholders from investment activities (see above) Retained distribution on accumulation units (60,093) (86,635) 44,259 51,287 21,489 25,982 Closing net assets attributable to unitholders 1,003,047 1,025,947 Comparative information is provided for the Statement of Change in Net Assets Attributable to Unitholders. Since this information is for the prior interim period, the net assets at the end of that period do not correspond to the net assets at the start of the current period. * Prior period creations and cancellations have been reclassified due to reallocations from income to accumulation units to make these comparable to current period. 9

11 Balance Sheet as at 30 September 2017 (unaudited) Assets Investments Current assets Debtors Cash and bank balances Total assets Liabilities Creditors Distribution payable Other creditors Total liabilities Net assets attributable to unitholders 30/09/17 31/03/ , ,866 4,194 28,993 5,020 4,972 1,008,411 1,002,831 (912) (1,028) (4,452) (4,411) (5,364) (5,439) 1,003, ,392 Accounting and Distribution policies for the period 01 April 2017 to 30 September 2017 (unaudited) Basis of accounting The Financial Statements have been prepared under the historical cost basis, as modified by the revaluation of investments, in compliance with the Financial Conduct Authority's Collective Investment Schemes Sourcebook. They have been prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 (The Financial Reporting Standard applicable in the UK and Republic of Ireland FRS 102) and in accordance with the Statement of Recommended Practice (SORP) for Financial Statements of Authorised Funds issued by the Investment Management Association May 2014 (IMA SORP 2014). The financial statements are prepared on the going concern basis. Directors of the Managers' Certificate This report is certified in accordance with the requirements of the rules in the Financial Conduct Authority's Collective Investment Schemes Sourcebook. A. M. Croft D. J. Lamb 27 November

12 Distribution Tables Distributions in pence per unit Group 1 First interim Units purchased prior to 1 April 2017 Second interim Units purchased prior to 1 July 2017 Group 2 L Income Net revenue Equalisation Distributions paid to/ payable 31/12/17 Distributions paid to 31/12/16 Group 1 (p) (p) (p) (p) First interim Second interim Group 2 (p) (p) (p) (p) First interim Second interim L Accumulation Net revenue Equalisation Distributions paid to/ payable 31/12/17 Distributions paid to 31/12/16 Group 1 (p) (p) (p) (p) First interim Second interim Group 2 (p) (p) (p) (p) First interim Second interim H Accumulation Net revenue Equalisation Distributions paid to/ payable 31/12/17 Group 1 (p) (p) (p) First interim Second interim Group 2 (p) (p) (p) First interim Second interim Y Accumulation First interim Units purchased on or after 1 April 2017 to 30 June 2017 Second interim Units purchased on or after 1 July 2017 to 30 September 2017 Net revenue Equalisation Distributions paid to/ payable 31/12/17 Group 1 (p) (p) (p) First interim Second interim Group 2 (p) (p) (p) First interim Second interim H Accumulation and Y Accumulation units were made available on 1 December

13 General Information Unit Dealings Dealings on the Trust take place on a daily basis. Purchase or sale instructions can be made by telephone or in writing to St. James's Place Unit Trust Group Limited, PO Box 9034, Chelmsford, CM99 2XA, United Kingdom, freephone: The Manager adopts a policy of forward pricing, i.e. the order will be transacted on the dealing day following receipt of the client's instructions, or if received before noon, on that dealing day. In the case of telephone purchases of units from the Manager, settlement must be by return of post after receipt of the contract note. In the case of telephone redemptions, the proceeds will not become payable until the receipt at the Administration Centre of a written request. A contract note confirming the subscription or redemption price and the number of units involved will be forwarded, together with a cancellation notice, where appropriate, on the next business day. The most recent issue and redemption prices will be published on the Manager's website: and are available by calling the Administration Centre on Minimum Investment The minimum lump sum investment is 1,500, thereafter the minimum additional investment is 1,000. The minimum monthly investment is 150 and the minimum monthly increment is 50. The minimum annual investment is 1,500 and the minimum annual increment is 500. Management Charges The Trust Deed permits the following management charges which are receivable by the Manager: (a) A Preliminary Charge of 5 per cent which is included in the offer price of the Units. For Class Y units the Preliminary Charge is 0 per cent. (b) An Annual Management Charge at a rate of 1.37 per cent for Class L Income and Accumulation; 1.87 per cent for Class H Accumulation; 0.63 per cent for Class Y Accumulation of the value of the Trust. Income Distributions Income distributions are made quarterly on or before the 31 March, 30 June, 30 September and 31 December. Accumulation Distributions Revenue due to accumulation unitholders is reflected in the price of their units. Tax Certificates Income unitholders that receive income distributions by direct credit and accumulation unitholders (where the distribution income is reinvested) receive an annual consolidated tax voucher in May with all the relevant payment and tax information required to complete a tax return. Tax certificates will be enclosed if income unitholders receive payment by cheque. Capital Gains Tax The Trust is not liable to tax on capital gains and any individual holding units will not be liable to capital gains tax unless the total chargeable gains for the tax year 2017/2018 exceed 11,300 (2016/ ,100). To calculate capital gains on accumulation units, the total amount of reinvested net revenue (shown on the annual tax credit vouchers) should be added to the base cost of the units purchased. Unitholders should consult their professional advisers for any advice regarding their tax position. 12

14 St. James s Place Unit Trust Group Ltd is authorised and regulated by the Financial Conduct Authority. St. James s Place Unit Trust Group Ltd Registered Office: St. James s Place House, 1 Tetbury Road, Cirencester, Gloucestershire, GL7 1FP, United Kingdom. Registered in England Number Perivan Financial Print Allshare Income (11/17)