ALLSHARE INCOME UNIT TRUST

Transcription

1 ALLSHARE INCOME UNIT TRUST FOR THE YEAR ENDING 31 MARCH 2016

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 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 160 Queen Victoria Street London, EC4V 4LA United Kingdom (Authorised and regulated by the Financial Conduct Authority) Registrar International Financial Data Services (UK) Limited IFDS House St. Nicholas Lane Basildon, SS15 5FS United Kingdom (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's Performance, Risk and Reward Profile, Investment Adviser's Comments and Portfolio Statement. The Trust's Performance The performance of the Trust since its launch in October 2007, over the five year period since March 2011 and over the year under review is shown below, together with figures for the most commonly quoted indices in comparable markets where the major proportion of the Trust has been invested. St. James's Place Allshare Income Unit Trust Income units (offer to offer) Accumulation units (offer to offer) Indices - actual FTSE All-Share (Total Return) 01/10/07 to 31/03/11 to 31/03/15 to 31/03/16 31/03/16 31/03/16 % change % change % change Source: Lipper for Fund returns Source: FTSE International Limited ( FTSE ) FTSE FTSE is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under licence. All rights in the FTSE indices and / or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and / or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE s express written consent. 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 Unit Trust, as disclosed in its most recent Key Investor Information Document (KIID), is a 5. It was calculated using performance data up to 1 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 economic driver for the year was the transition of the Chinese economy to a more consumer-orientated focus from an infrastructure investment focus. This ended the super cycle in commodities. In addition, OPEC, led by Saudi Arabia, concentrated on increasing their share of the oil market which caused further weakness in the oil price. In response all the operations in those industries cut back activity dramatically, which adversely affected manufacturing linked to this area. China also changed their policy on the management of their currency from a US dollar peg to a broader basket of currencies, which caused market turmoil when introduced in the summer. World growth was sluggish which meant that central bankers continued to provide support which led to many government bonds to offer negative returns. The main exception was the US, where interest rates were increased in December. The UK economy continued to outperform helped by the surprise election of a majority Conservative government. The UK market was impacted by its large exposure to the mining and oil sector. Both sectors were weak until the latter part of the reporting period before a rally pared some of the losses. Overall the broader UK equity market registered a modest decline over the period. In contrast the portfolio performed well. Agreed takeovers at good premiums of HellermannTyton, KBC Advanced Technology and Latchways added to returns. Other strong contributors included small cap holdings such as Conviviality, FDM Group and Topps Tiles. Exposure to the mining sector was reduced by the sales of both BHP Billiton and Rio Tinto as it became clear that their dividend levels were going to be cut. The holding of Lloyds Bank was increased as they returned to meaningful dividend payments. Some long standing strong performers such as Cineworld and Close Brothers were sold on valuation grounds, while exposure to the UK consumer was reduced. The forthcoming Brexit vote will be the key factor in the short term, with signs that the uncertainty is impacting on economic activity in the short term. In an environment where yield is hard to come by there should be continued demand for quality, income yielding equities AXA Investment Managers UK Limited 13 May

5 Comparative table as at 31 March 2016 Net Asset Value and Ongoing Charges Figure 31/03/16 31/03/15 31/03/14 Income Change in net assets per unit (p) (p) (p) Opening net asset value per unit Return before operating charges* Operating charges (1.79) (1.74) (1.71) Return after operating charges* Distributions on income units (4.14) (3.77) (3.42) Closing net asset value per unit *after direct transaction costs of: Performance Return after charges 2.74% 3.81% 15.57% Other information Closing net asset value ( 000) 100, , ,745 Closing number of units 107,263, ,173, ,626,370 Operating charges** 1.86% 1.85% 1.84% Direct transaction costs 0.04% 0.13% 0.14% Prices Highest unit price (p) Lowest unit price (p)

6 Comparative table as at 31 March 2016 (continued) 31/03/16 31/03/15 31/03/14 Accumulation Change in net assets per unit (p) (p) (p) Opening net asset value per unit Return before operating charges* Operating charges (2.46) (2.29) (2.12) Return after operating charges* Closing net asset value per unit Retained distributions on accumulation units* *after direct transaction costs of: Performance Return after charges 2.79% 3.87% 15.76% Other information Closing net asset value ( 000) 934,742 1,047, ,942 Closing number of units 706,690, ,642, ,650,601 Operating charges** 1.86% 1.85% 1.84% Direct transaction costs 0.04% 0.13% 0.14% Prices Highest unit price (p) Lowest unit price (p) **Operating charges are prepared using the same methodology as the ongoing charges appearing in the KIID, based on the information in this report. This figure may differ from the performance figure quoted in the Investment Report. The Investment Report performance figure is calculated using the last available published price for a given shareclass in the period compared to the equivalent for the prior period. The price per the financial statements values the fund on a bid-price basis. The financial statements shareclass valuation is based on market prices on the last day of the period, which can differ from the intraday pricing point of the Trust. 5

7 Portfolio Statement as at 31 March 2016 Security Holdings Market Value 000 % of Net Assets Aerospace & Defence (2.06%)* 18, DP Aircraft I 6,528,000 4, Senior 6,100,000 14, Automobiles & Parts (0.61%) Banks (6.08%) 53, HSBC 7,250,000 31, Lloyds Banking 25,000,000 17, Secure Trust Bank 185,000 5, Construction & Materials (2.82%)* 39, Alumasc 1,385,000 2, Epwin 10,000,000 13, Eurocell 4,700,000 9, Low & Bonar 24,000,000 15, Corporate Bonds (0.13%) JKX Oil & Gas Jersey 8% 19/02/2018 USD1,800, Electricity (0.55%) 1, KSK Power Ventur 500, Mytrah Energy 2,400,000 1, Electronic & Electrical Equipment (3.44%) 18, e2v technologies 8,500,000 18, Equity Investment Instruments (10.29%)* 88, Blackstone GSO Loan Financing 8,000,000 5, Blue Capital Global Reinsurance Fund 9,000,000 6, Carador Income Fund 9,800,000 4, Chenavari Capital Solutions 4,250,000 3, Ecofin Water & Power Opportunities Fund 6,000,000 6, Fair Oaks Income Fund 11,335,500 6, Foresight Solar Fund 7,150,000 6, GLI Finance 10,425,000 3, Greencoat UK Wind 7,250,000 7, Ground Rents Income Fund 1,165,000 1, ICG-Longbow Senior Secured UK Property Debt 5,000,000 5, Juridica Investments 6,600,000 2, NextEnergy Solar Fund 8,000,000 7, P2P Global Investments Fund 1,200,000 10, Renewables Infrastructure 4,350,000 4, SQN Asset Finance Income Fund 6,533,334 7, Financial Services (6.30%)* 60, Charlemagne Capital 4,000, City of London 1,173, Intermediate Capital 2,057,142 12, IP 3,464,774 6, Jupiter Fund Management 3,100,000 12, Park 16,623,000 12, Polar Capital 1,607,801 5, Real Estate Credit Investments 3,250,000 5, VPC Specialty Lending Investments 6,250,000 5, Fixed Line Telecommunications (1.86%) 25, KCOM 12,400,000 13, Manx Telecom 5,750,000 12,

8 Portfolio Statement (continued) as at 31 March 2016 Security Holdings Market Value 000 % of Net Assets Food & Drug Retailers (0.62%) 24, Conviviality Retail 10,643,259 24, Food Producers (3.98%)* 48, Devro 4,550,000 13, Greencore 3,200,000 11, Hilton Food 4,600,000 23, Gas, Water & Multiutilities (2.22%) 26, Centrica 2,500,000 5, National Grid 2,100,000 20, General Retailers (4.57%)* 44, entu 5,000,000 3, Pendragon 30,655,579 11, SafeStyle UK 3,500,000 9, Shoe Zone 2,807,617 5, Topps Tiles 9,916,667 14, Industrial Engineering (0.60%) 5, Castings 1,071,250 5, Industrial Transportation (1.73%) 6, Amedeo Air Four Plus 4,955,333 4, DX 8,500,000 1, Life Insurance (4.41%) 49, Aviva 1,950,000 8, Legal & General 8,000,000 18, Phoenix 2,300,000 21, Media (3.29%) 39, ITV 4,850,000 11, NAHL 3,750,000 9, Tarsus 7,450,000 18, Mining (2.71%) 10, Anglo Pacific 11,537,026 8, ATH Resources** 790, Firestone Diamonds 8,142,816 2, Mobile Telecommunications (3.10%) 30, Vodafone 13,750,000 30, Non Equity Investment Instruments (2.17%)* 15, St. James's Place Money Market Unit Trust L Acc 15,177,885 15, Non Life Insurance (1.93%) 16, Direct Line Insurance 1,833,333 6, esure 3,575,000 9, Oil & Gas Producers (7.85%) 77, BP 8,700,000 30, Indus Gas 825,000 1, Royal Dutch Shell 'B' Shares 2,650,000 45, Oil Equipment, Services & Distribution (0.57%) 14, KBC Advanced Technologies 6,731,000 14, Personal Goods (0.91%)* 11, Unilever 375,000 11,

9 Portfolio Statement (continued) as at 31 March 2016 Market Value 000 % of Net Assets Security Holdings Pharmaceuticals & Biotechnology (6.47%) 73, AstraZeneca 650,000 25, GlaxoSmithKline 1,925,000 27, Quantum Pharmaceutical 7,625,000 4, Vectura 10,000,000 16, Real Estate Investment & Services (0.42%) 5, Sirius Real Estate 16,500,000 5, Real Estate Investment Trusts (4.45%) 62, Ediston Property Investment 7,750,000 8, McKay Securities 3,468,000 7, Mucklow A & J 1,782,512 8, NewRiver Retail 6,250,000 20, Redefine International 22,643,480 10, Regional REIT 6,250,000 6, Software & Computer Services (3.09%) 40, Bond International Software 1,525,000 1, Craneware 1,150,000 8, EMIS 1,400,000 14, FDM 2,270,000 12, StatPro 5,013,750 3, Support Services (2.67%) 25, Ashtead 850,000 7, Hydrogen 1,400, ienergizer 6,000, Matchtech 1,625,000 7, St Ives 3,966,753 9, Vianet 1,500,000 1, Technology Hardware & Equipment (0.91%) 11, IQE 49,000,000 11, Tobacco (5.10%) 71, British American Tobacco 1,100,000 44, Imperial Tobacco 700,000 27, Travel & Leisure (1.36%) 10, GVC 2,100,000 10, Investment assets 1,030, Total other assets (net) 5, Net assets 1,035, Comparative figures shown in brackets relate to 31 March *Since the previous report the Industry Sector Classification headings have been updated by data providers, where the portfolio statement shows Industry Sectors these new sector names have been reflected in the report in respect of the current holdings and we have restated comparative holdings where appropriate. All investments held are listed, unless otherwise stated. During the year 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. ** Unquoted/delisted securities. # Real Estate Investment Trust (REIT). 8

10 Material Portfolio Changes Cost Purchases 000 St. James's Place Money Market Unit Trust L Acc 149,751 Redefine International 9,623 GVC 8,862 St Ives 8,436 Conviviality Retail 8,090 Lloyds Banking 7,677 Regional REIT 6,258 Amedeo Air Four Plus 4,955 AstraZeneca 4,218 GlaxoSmithKline 3,933 Proceeds Sales 000 St. James's Place Money Market Unit Trust L Acc 159,184 HellermannTyton 30,940 Clarkson 16,099 Cineworld 15,999 Close Brothers 14,114 Latchways 10,394 Redefine International 8,875 Lancashire 7,657 GKN 7,100 Rio Tinto 6,868 This investment is a related party. # Real Estate Investment Trust (REIT). 9

11 Statement of the Manager's Responsibilities in relation to the Financial Statements of the Trust The rules in the Financial Conduct Authority's Collective Investment Schemes Sourcebook ("the Rules") require the Manager to prepare Financial Statements for each annual accounting period which give a true and fair view of the financial position of the Trust as at the end of the year and of the net revenue and the net capital gains on the property of the Trust for the year then ended. In preparing the Financial Statements the Manager is required to: select suitable accounting policies and then apply them consistently; make judgements and estimates that are reasonable and prudent; comply with the requirements of the Statement of Recommended Practice relating to Authorised Funds and the Trust Deed; follow applicable UK Accounting Standards (UK Generally Accepted Accounting Practice); and prepare Financial Statements on the going concern basis unless it is inappropriate to presume that the Trust will continue in operation. The Manager is responsible for keeping proper accounting records and for the management of the Trust in accordance with its Trust Deed, Prospectus and the Rules. The Manager has a general responsibility for taking such steps as are reasonably open to it to prevent and detect fraud and other irregularities. Directors' 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 London 27 May

12 Report of the Trustee to the unitholders of St. James s Place Allshare Income Unit Trust Trustee's responsibilities The Trustee is responsible for the safekeeping of all the property of the Trust (other than tangible moveable property) which is entrusted to it and for the collection of income that arises from that property. It is the duty of the Trustee to take reasonable care to ensure that the Trust is managed in accordance with the Financial Conduct Authority s Collective Investment Schemes Sourcebook ( COLL ), the Trust Deed and Prospectus, in relation to the pricing of, and dealings in, units in the Trust; the application of income of the Trust; and the investment and borrowing powers and restrictions applicable to the Trust. Report of the Trustee to the unitholders of St. James s Place Allshare Income Unit Trust for the year ended 31st March 2016 Having carried out such procedures as we considered necessary to discharge our responsibilities as Trustee of the Trust, it is our opinion, based on the information available to us and the explanations provided, that, in all material respects, the Manager: (i) has carried out the issue, sale, redemption and cancellation, and calculation of the price of the Trust s units and the application of the Trust s income in accordance with the Sourcebook, the Trust Deed and Prospectus, and (ii) has, observed the investment and borrowing powers and restrictions applicable to the Trust. For and on behalf of BNY Mellon Trust & Depositary (UK) Limited 160 Queen Victoria Street London EC4V 4LA Manager Date 09 April

13 Independent Auditors' Report to the Unitholders of St. James's Place Allshare Income Unit Trust Our opinion In our opinion, St. James's Place Allshare Income Unit Trust's financial statements, (the "financial statements"): give a true and fair view of the financial position of the Trust as at 31 March 2016 and of the net revenue and the net capital gains of the scheme property of the Trust for the year then ended; and have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, the Statement of Recommended Practice for UK Authorised Funds, the Collective Investment Schemes sourcebook and the Trust Deed. What we have audited The financial statements, which are prepared by St. James s Place Unit Trust Group Limited (the Authorised Fund Manager ), comprise: the balance sheet of the Trust as at 31 March 2016 ; the statement of total return of the Trust for the year then ended; the statement of change in net assets attributable to unitholders of the Trust for the year then ended; the notes to the Trust s financial statements, which include a summary of significant accounting policies and other explanatory information; and the distribution tables. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), the Statement of Recommended Practice Financial Statements of UK Authorised Funds issued by the Investment Management Association (the Statement of Recommended Practice for UK Authorised Funds ), the Collective Investment Schemes sourcebook and the Trust Deed. In applying the financial reporting framework, the Authorised Fund Manager has made a number of subjective judgements, for example in respect of significant accounting estimates. In making such estimates, they have made assumptions and considered future events. Opinions on matters prescribed by the Collective Investment Schemes sourcebook In our opinion: we have obtained all the information and explanations we consider necessary for the purposes of the audit; and the information given in the Authorised Fund Manager s Report for the financial year for which the financial statements are prepared is consistent with the financial statements. Other matters on which we are required to report by exception Propriety of accounting records and information and explanations received Under the Collective Investment Schemes sourcebook we are required to report to you if, in our opinion: proper accounting records have not been kept; or the financial statements are not in agreement with the accounting records and returns. We have no exceptions to report arising from this responsibility. Responsibilities for the financial statements and the audit Our responsibilities and those of the Authorised Fund Manager As explained more fully in the Statement of the Manager's Responsibilities set out on page 10, the Authorised Fund Manager is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and ISAs (UK & Ireland). Those standards require us to comply with the Auditing Practices Board s Ethical Standards for Auditors. This report, including the opinions, has been prepared for and only for the Trust s unitholders as a body in accordance with paragraph of the Collective Investment Schemes sourcebook and for no other purpose. 12

14 Independent Auditors' Report to the Unitholders of St. James's Place Allshare Income Unit Trust (continued) We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing. What an audit of financial statements involves We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) ( ISAs (UK & Ireland) ). An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the Trust s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the Authorised Fund Manager; and the overall presentation of the financial statements. we primarily focus our work in these areas by assessing the directors' judgements against available evidence, forming our own judgements, and evaluating the disclosures in the financial statements. we test and examine information, using sampling and other auditing techniques, to the extent we consider necessary to provide a reasonable basis for us to draw conclusions. We obtain audit evidence through testing the effectiveness of controls, substantive procedures or a combination of both. In addition, we read all the financial and non-financial information in the Annual Report (the Annual Report ) to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report. PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors Edinburgh 27 May 2016 The maintenance and integrity of the St. James s Place website is the responsibility of the Fund Manager; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. 13

15 Statement of Total Return for the year ended 31 March 2016 Income Net capital gains Revenue Expenses Interest payable and similar charges Net revenue before taxation Taxation Net revenue after taxation 01/04/15 to 31/03/16 01/04/14 to 31/03/15 Notes ,968 18, ,066 45,333 4 (20,909) (20,623) - (1) 28,157 24, ,157 24,709 Total return before distributions 31,125 42,750 Distributions 6 (48,134) (44,853) Change in net assets attributable to unitholders from investment activities (17,009) (2,103) Statement of Change in Net Assets Attributable to Unitholders for the year ended 31 March /04/15 to 31/03/16 01/04/14 to 31/03/ Opening net assets attributable to unitholders 1,165,361 1,005,687 Movement due to creation and cancellation of units: Amounts receivable on creation of units* 150, ,168 Amounts payable on cancellation of units* (306,599) (152,014) Stamp duty reserve tax Change in net assets attributable to unitholders from investment activities (see above) Retained distribution on accumulation units Closing net assets attributable to unitholders (155,619) 121,154 - (16) (17,009) (2,103) 42,580 40,639 1,035,313 1,165,361 *Prior year figures in relation to Dilution Levy have been reclassified and included within creations and cancellation of units as this was income and expenses arising from creations and cancellations respectively. 14

16 Balance Sheet as at 31 March 2016 Assets Investments Current assets Debtors* Cash and bank balances Total assets Liabilities 31/03/16 31/03/15 Notes ,030,223 1,156, ,299 7, ,168 5,921 1,041,690 1,169,890 Creditors Distribution payable (1,041) (1,275) Other creditors* 10 (5,336) (3,254) Total liabilities (6,377) (4,529) Net assets attributable to unitholders 1,035,313 1,165,361 *Prior year figures in relation to Dilution Levy have been reclassified and included within creations and cancellation of units as this was income and expenses arising from creations and cancellations respectively. 15

17 Notes to the Financial Statements for the year ended 31 March (a) (b) (c) (d) (e) (f) Accounting and Distribution policies 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). Both FRS 102 and SORP 2014 have been adopted in the current year. The changes in the SORP 2014 are presentational only and there have been no changes to any figures detailed within the financial statements. The financial statements are prepared on the going concern basis. Revenue Dividends receivable from equity investments are credited to the revenue account when the investments are first quoted ex-dividend. Dividends from Real Estate Investment Trusts ('REITs') are recognised as distributable income when the securities are quoted ex-dividend. Interest on deposits is accounted for on an accruals basis. Revenue on interest bearing assets isrecognisedonaneffectiveinterestratebasis. Revenue from other authorised collective investment schemes are recognised when the investments are quoted ex-dividend. Management fee rebates from underlying funds will be taken to revenue or capital depending on the treatment adopted in the underlying funds. Management fee rebates received from St. James's Place Money Market Unit Trust are recognised as revenue on an accruals basis and form part of the distribution. Expenses All expenses of the Trust are deducted from revenue with the exception of handling charges which are deducted from capital. The manager has agreed that 100% of the annual management charge and all other expenses are to be transferred to capital for the purpose of calculating the distribution, as permitted by the Collective Investment Schemes Sourcebook. Valuation of investments Listed investments have been valued at bid market value at midday on 31 March 2016 (31/03/15: bid market value at midday), net of any accrued interest which is included in the Balance Sheet as a revenue related item. Authorised unit trusts are valued at cancellation price for funds managed by the manager and a bid price for all other funds. Suspended, delisted, unquoted or manually priced securities are valued by the manager taking into account, where appropriate, latest dealing prices, financial performance and other relevant factors. Foreign exchange Assets and liabilities have been translated into sterling at the exchange rates prevailing at the Balance Sheet date. Transactions involving foreign currencies are converted at the rate ruling on the date of the transaction. Taxation Provision is made for corporation tax at the current rate on the excess of taxable revenue over allowable expenses. UK dividend revenue is disclosed net of any related tax credit. Overseas dividends continue to be disclosed gross of any foreign tax suffered, the tax element being separately disclosed in the tax note. Deferred tax is provided for on the liability method on all timing differences. A deferred tax asset is only recognised to the extent that a timing difference will be of future benefit. 16

18 Notes to the Financial Statements (continued) (g) Distribution policy Distributions are made in respect of quarters ended 31 March, 30 June, 30 September and 31 December. At the end of the accounting period all remaining revenue, less revenue expenses and taxation, will be attributable to unitholders. In the case of income unitholders this will be paid as a distribution. In the case of accumulation unitholders the distribution will be reinvested. Equalisation on distributions received is deducted from the cost of the investment. (h) Equalisation Equalisation applies only to units purchased during the distribution period. It is the accrued revenue element of the purchase price of all such units and is refunded to holders of these units as a return of capital. Being capital it is not liable to income tax, but must be deducted from the cost of units for capital gains tax purposes. (i) Special dividends Special dividends are treated as revenue or a repayment of capital reflecting the facts of each particular case. (j) Underwriting commission Underwriting commission is recognised when the issue takes place. Where the Trust is required to take up some or all of the shares underwritten, an appropriate proportion of the commission earned is deducted from the cost of those shares. 2. Net capital gains 01/04/15 to 01/04/14 to 31/03/16 31/03/15 3. Non-derivative securities Currency gains Handling charges Net capital gains Revenue ,944 18, (5) (6) 2,968 18,041 01/04/15 to 31/03/16 01/04/14 to 31/03/ UK dividends 37,925 32,503 Overseas dividends 8,196 10,122 Distributions from Regulated Collective Investment Schemes Interest distributions Revenue from UK REITs 2,446 2,314 Bank interest 7 16 Interest on debt securities Management charge rebate on underlying holdings Other revenue - 20 Underwriting commission Total revenue 49,066 45,333 17

19 Notes to the Financial Statements (a) (b) (continued) Expenses 01/04/15 to 31/03/16 01/04/14 to 31/03/ Payable to the Manager Management charge 17,909 19,696 Payable to the Trustee Trustee's fee Other expenses Audit fee 5 9 Investment administration fee Investment adviser's fee 2,491 - Professional fee - 3 Registrar's fee Safe custody fee 7 11 Tax & compliance fee (1) 8 2, Total expenses 20,909 20,623 With effect from 26 October 2015 all expenses are now paid by the Manager out of the Annual Management Charge with exception of the Investment Adviser fee and AMC fee rebate. This includes current year Audit Fee of 9,360. Taxation Analysis of charge in year: There is no corporation tax charge in the current year or prior year. Factors affecting total tax charge for the year: 01/04/15 to 01/04/14 to 31/03/16 31/03/ The tax assessed for the year is lower than the standard rate of corporation tax in the UK for an authorised unit trust of 20% (2015: 20%). The differences are explained below: Net revenue before taxation 28,157 24,709 (c) (d) Corporation Tax at 20% (2015: 20%) 5,632 4,942 Effects of: UK dividends not subject to corporation tax (7,437) (6,649) Non taxable foreign dividends (1,444) (1,940) Movement in excess management expenses 3,249 3,647 Total tax charge for year (note 5a) - - Authorised Unit Trusts are exempt from tax on capital gains, therefore any capital return is not included in the above reconciliation. Deferred taxation: There is no provision required for deferred taxation at the balance sheet date. Factors that may affect future tax charges At the year end, after offset against revenue taxable on receipt, there is a potential deferred tax asset of 13,294,069 (31/03/15: 10,044,675) relating to surplus management expenses. No deferred tax asset was recognised in the current or prior year as it was considered unlikely the Trust would generate sufficient taxable profits in the future to utilise these amounts. 18

20 Notes to the Financial Statements (continued) 6. Distributions The distributions take account of revenue received on the creation of units and revenue deducted on the cancellation of units and comprises: 01/04/15 to 31/03/16 01/04/14 to 31/03/ First interim distribution 14,106 10,909 Second interim distribution 11,672 10,555 Third interim distribution 10,918 11,361 Final distribution 10,631 12,422 47,327 45,247 Add: Revenue deducted on cancellation of units 1, Deduct: Revenue received on creation of units (761) (1,138) Net distributions for the year 48,134 44, Movement between net revenue and net distributions 01/04/15 to 31/03/16 01/04/14 to 31/03/ Net revenue after taxation 28,157 24,709 Management charge 17,909 19,696 Other expenses paid out of capital 3, Corporation tax relief to capital (933) (477) Add: brought forward from previous year 2 2 Less: carried forward to next year (1) (2) Net distributions for the year 48,134 44, Debtors 31/03/16 31/03/ Sales awaiting settlement Accrued revenue 5,637 6,553 Rebate receivable on underlying holdings 4 - Income tax recoverable Total debtors 6,299 7, Cash and bank balances 31/03/16 31/03/ Cash and bank balances: Sterling 5,168 5,868 Cash and bank balances: Overseas - 53 Total cash and bank balances 5,168 5, Other creditors Amounts payable for cancellation of units Accrued expenses Total other creditors 11. Units in issue Reconciliation of the unit movement in the year: 31/03/16 31/03/ ,638 3,157 1, ,336 3,254 Income Accumulation Opening Units Closing units units in issue Creations Cancellations converted in issue 124,173, ,896,364 (170,806,690) - 107,263, ,642,478 2,675,096 (109,626,829) - 706,690,745 19

21 Notes to the Financial Statements (continued) 12. Related party transactions St. James's Place Unit Trust Group Limited together with the subsidiaries including associates are related parties and regarded as controlling parties by virtue of having the ability to act in respect of operations of the Trust. The Manager's service charge paid to St. James's Place Unit Trust Group Limited is shown in note 4 and details of the value of units created and cancelled by St. James's Place Unit Trust Group Limited are shown in the Statement of Change in Net Assets Attributable to Unitholders. The net balances due to St. James's Place Unit Trust Group Limited at the year end in respect of these transactions was 4,845,322 (31/03/15: 3,181,619). The Manager, St. James's Place Unit Trust Group Limited, is a subsidiary of St. James's Place Wealth Management Group plc ('SJPWMG'). Two fellow subsidiaries of SJPWMG, St. James's Place International plc and St. James's Place UK plc, invest some of their life and pension policyholders' funds into the St. James's Place Allshare Income Unit Trust. The value of these investments at the year end was 701,844,768 (31/03/15: 788,990,179). Included in the investment portfolio is a holding of 15,177,885 shares (31/03/15: 24,216,423) in St. James's Place Money Market Unit Trust (a parent company of St. James's Place Unit Trust Group Limited) with a market value of 15,844,756 (31/03/15: 25,250,948). Revenue and management charge rebates from this holding are shown in note 3 as interest distributions and management charge rebates on the underlying holdings. As at 31/03/16 total revenue earned amounts to 117,072 (31/03/15: 101,187). 13. Capital commitments and contingent liabilities On 31 March 2016, the Trust had no capital commitments (31/03/15: nil) and no contingent liabilities (31/03/15: nil). 14. Financial instruments In accordance with the investment objectives, as stated on page 26, the Trust held certain financial instruments. These comprise: Equity shares and units in collective investment schemes; and. Cash (including overdrafts) and short-term debtors and creditors that arise directly from its operations. The rules in the Scheme Documents set out the financial instruments in which the Trust may invest. The Trust's use of financial instruments during the year satisfies these requirements. 15. Risk management The Manager s objectives in managing investment risk are to ensure that the investment profile of the Trust is consistent with its stated investment objectives and risk profile, and to ensure appropriate liquidity. Day to day responsibility for managing investment risk is delegated to the Investment Adviser, who is required to manage the Trust in accordance with FCA regulations, the Prospectus and the terms of their Investment Management Agreement with the Manager. The Manager monitors the activities of the Investment Adviser, through a variety of mechanisms including the following: Initial and ongoing due diligence of Investment Adviser investment and risk management procedures including on site reviews; Periodic reviews of the investments held by the Trust and their compliance with investment objectives and liquidity requirements; and Ongoing review of the investment performance of the Trust against appropriate benchmarks. The main risks arising from the Trust's financial instruments are market price risk, foreign currency risk, interest rate risk, credit risk and liquidity risk. The Manager's policies for managing these risks are summarised below. These policies have remained unchanged since the beginning of the year to which these financial statements relate (same for 2015). 20

22 Notes to the Financial Statements (a) Market price risk 01/04/15 to 31/03/16 (continued) Market price risk represents the potential loss the Trust might suffer through holding market positions in the face of price movements. The Manager has delegated the investment management of the portfolio to an external Investment Adviser who determines the asset allocation and minimises the risk associated with particular countries or industry sectors, whilst continuing to follow the Trust s investment objectives. The Manager has the responsibility for monitoring the portfolio to ensure compliance with the investment objectives and that an acceptable risk and reward profile is maintained. The sensitivity of the fund to market risk is calculated using the Value-at-Risk (VaR) approach. VaR is a mathematical-statistical concept and is commonly used as a standard measure of risk in the financial sector. The maximum potential loss that a fund could suffer under normal market conditions within a given time horizon and a certain degree of confidence is estimated. An absolute VaR is calculated using the historic return series of each fund. Using the Historical VaR approach, a 1% 20-day VaR using 10 years of historical daily data is calculated. An annualised VaR limit of 20% is considered for the fund. The actual VaR is summarised in the table below: Lowest monthly VaR Highest monthly VaR Average monthly VaR 01/04/14 to 31/03/15 % % (b) Foreign currency risk The revenue and capital value of the Trust s investments can be significantly affected by currency translation movements as a proportion of the Trust s assets and revenue are denominated in currencies other than sterling, which is the Trust s functional currency. As set out by the Trust s objectives the Trust has the scope to hold assets denominated in currencies other than sterling. However at this time the Trust has not taken this opportunity. If the Trust were to hold assets, and be exposed to revenue, not denominated in sterling the following risks would be applicable along with the associated procedures to manage them. The Manager has identified three principal areas where foreign currency risk could impact the Trust: Movements in exchange rates affect the value of investments; Movements in exchange rates affect short term timing differences; and Movements in exchange rates affect revenue received. The Trust may open currency contracts at a forward exchange rate in order to reduce or eliminate the impact of exchange rate fluctuations on the value of investments and revenue payable. The Trust may be subject to short term exposure to exchange rate movements, for instance where there is a difference between the date an investment purchase or sale is entered into and the date when settlement of the proceeds occurs. When the Trust enters into such a transaction which will involve the buying or selling of foreign currency in order to complete, a foreign exchange contract is entered into as soon as possible after the initial transaction in order to minimise the exchange rate risk. 21

23 Notes to the Financial Statements (continued) An analysis for all currencies at the year end is shown below: Net foreign currency assets 31/03/16 31/03/15 Currency Total Total GBP 1,001,084 1,126,682 EUR 10,850 11,013 USD 23,379 27,666 Total 1,035,313 1,165,361 (c) Interest rate risk Interest receivable on bank deposits or payable on bank overdraft positions will be affected by fluctuations in interest rates. (d) Credit risk Credit risk occurs where there is a risk associated with the uncertainty of a counterparty s ability to meet its obligations. This risk is managed by reviewing the counterparty s credit rating, at the time of purchase and on an ongoing basis, and ensuring that the portfolio is sufficiently diversified. The impact of movements in credit rating and spread, and their effect on market prices, is considered to be part of market price risk, which is discussed above. The Trust s investments and cash are held on its behalf by State Street Bank and Trust Company (acting as agent), the custodian to the Trust, and its appointed sub custodians. Bankruptcy or insolvency of the custodian or its sub custodians may cause the Trust s rights with respect to securities to be delayed. This risk is managed through ongoing monitoring of the custodian and periodic reviews of its procedures for selecting and monitoring sub custodians, together with ad hoc reviews of custodian and sub custodian credit ratings. Certain transactions in securities that the Trust enters into expose it to the risk that the counterparty will not deliver the investment (purchase) or cash (sale) after the fund has fulfilled its responsibilities. The external Investment Adviser selects acceptable counterparties through which investments are bought and sold. The Manager has responsibility for monitoring the process by which these counterparties are selected to minimise risk. (e) Liquidity risk Liquidity risk arises where liabilities cannot be met when they fall due or can only be met at an uneconomic price. For instance, this could arise if the Trust faces significant redemptions in a short period of time. In order to manage this risk the manager monitors the Trust with the aim of ensuring that it contains diversified liquid assets, that the Trust possesses sufficient liquidity for the purpose of meeting the redemption of units, and that the Trust has sources of borrowing available to it. (f) Derivative risk The Manager may use derivative instruments to hedge the value of the investment portfolio against market and stock specific risk through investment in warrants, options and futures. The purpose of the financial instruments is efficient portfolio management. In particular futures may be used to implement the investment policy in a timely manner and to manage market risk arising from the time lag between funds being receivable or payable by the Trust and investment and disinvestment in underlying securities. No such derivatives were held by the Trust in the year to 31 March (g) Maturity profile of financial liabilities All financial liabilities of the Trust at the year end are due to settle in one year or less, or on demand. (h) Fair value of financial assets and liabilities There is no material difference between the value of the financial assets and liabilities, as shown in the Balance Sheet, and their fair values. 22

24 Notes to the Financial Statements 16. Portfolio transaction costs Analysis of total trade costs. Bonds Collective Investment Schemes Equities Trades in the year before transaction costs Commissions Bonds Collective Investment Schemes Equities Total commissions Taxes Bonds Collective Investment Schemes Equities Total taxes Total costs Trades in the year after transaction costs (continued) Purchases Sales 01/04/15 to 31/03/16 01/04/14 to 31/03/15 01/04/15 to 31/03/16 01/04/14 to 31/03/ , , , , ,184 75, , , , , , , , (239) (247) (239) (247) (5) (5) 204 1,183 (239) (252) 225, , , ,575 Total transaction cost expressed as a percentage of asset type cost. Purchases Sales 01/04/15 to 31/03/16 01/04/14 to 31/03/15 01/04/15 to 31/03/16 01/04/14 to 31/03/15 % % % % Commissions Bonds Collective Investment Schemes Equities Taxes Bonds Collective Investment Schemes Equities Total transaction cost expressed as a percentage of net asset value. 01/04/15 to 31/03/16 01/04/14 to 31/03/15 % % Commissions Taxes Total costs Average portfolio dealing spread The average portfolio dealing spread at the balance sheet date was 1.03%. (31/03/15): 0.94%. 23

25 Notes to the Financial Statements (continued) 17. Fair value The intention of a fair value measurement is to estimate the price at which an asset or a liability could be exchanged in the market conditions prevailing at the measurement date. The measurement assumes the exchange is an orderly transaction (that is, it is not a forced transaction, involuntary liquidation or distress sale) between knowledgeable, willing participants on an independent basis. The purpose of the fair value hierarchy is to prioritise the inputs that should be used to measure the fair value of assets and liabilities. The highest priority is given to quoted prices at which a transaction can be entered into and the lowest priority to unobservable inputs. The fund has early adopted the March 2016 amendment to section 34 of FRS102 (Fair Value Hierarchy disclosures that simplify preparation of financial instrument disclosure), which is applicable to accounting periods beginning on or after 1 January 2017 with earlier application permitted. 31/03/16 31/03/15 Assets Liabilities Assets Liabilities Valuation technique Level 1 1,013,528-1,130,079 - Level 2 16,695-26,767 - Level Total fair value 1,030,223-1,156,846 - Level 1: The unadjusted quoted price in an active market for identical assets or liabilities that the entity can access at the measurement date. Level 2: Inputs other than quoted prices included within Level 1 that are observable (i.e. developed using market data) for the asset or liability, either directly or indirectly. Level 3: Inputs are unobservable (i.e. for which market data is unavailable) for the asset or liability. 24

26 Distribution Tables Distributions in pence per unit Group 1 First interim Units purchased prior to 1 April 2015 Second interim Units purchased prior to 1 July 2015 Third interim Units purchased prior to 1 October 2015 Final Units purchased prior to 1 January 2016 Group 2 First interim Units purchased on or after 1 April 2015 to 30 June 2015 Second interim Units purchased on or after 1 July 2015 to 30 September 2015 Third interim Units purchased on or after 1 October 2015 to 31 December 2015 Final Units purchased on or after 1 January 2016 to 31 March 2016 Income Net revenue Equalisation Distributions paid to/ payable 30/06/16 Distributions paid to 30/06/15 Group 1 (p) (p) (p) (p) First interim Second interim Third interim Final Group 2 (p) (p) (p) (p) First interim Second interim Third interim Final Accumulation Net revenue Equalisation Distributions paid to/ payable 30/06/16 Distributions paid to 30/06/15 Group 1 (p) (p) (p) (p) First interim Second interim Third interim Final Group 2 (p) (p) (p) (p) First interim Second interim Third interim Final