Interim Report and Financial Statements (Unaudited)

Transcription

1 Interim Report and Financial Statements (Unaudited) Standard Life Investments ICVC plc For the financial period ended 31 October 2017 Standard Life Investments

2 Contents Page Directory 2 Background to the Company 3 Report of the Alternative Investment Fund Manager 4 Financial Statements: Statement of Financial Position 5 Statement of Comprehensive Income 7 Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders 9 Notes to the Financial Statements 11 Schedule of Investments 15 1

3 Directory Board of Directors Brendan Bryce (Irish) Andrew Curtin (Irish)* Michael McKenna (Irish) Jennifer Richards (British) Investment Adviser and Distributor Standard Life Investments Limited 1 George Street Edinburgh EH2 2LL Scotland Alternative Investment Fund Manager Standard Life Investments (Mutual Funds) Limited 1 George Street Edinburgh EH2 2LL Scotland Administrator BNY Mellon Fund Services (Ireland) Designated Activity Company One Dockland Central Guild Street IFSC Dublin 1 D01 E4X0 Ireland Depositary BNY Mellon Trust Company (Ireland) Limited One Dockland Central Guild Street IFSC Dublin 1 D01 E4X0 Ireland Company Secretary and Registered Office Matsack Trust Limited 70 Sir John Rogerson s Quay Dublin 2 D02 R296 Ireland Legal Advisors Matheson 70 Sir John Rogerson s Quay Dublin 2 D02 R296 Ireland *Independent Director Independent Auditors KPMG Chartered Accountants 1 Harbourmaster Place IFSC Dublin 1 D01 F6F5 Ireland Registered Number:

4 Background to the Company Structure Standard Life Investments ICVC plc (the Company ) is an umbrella investment company with segregated liability between sub-funds and variable capital, incorporated in Ireland on 23 April 2008 under registration number The Company is authorised by the Central Bank of Ireland (the Central Bank ) pursuant to the Companies Act 2014, as amended. The Company was originally structured as a qualifying investor fund comprising of two funds: the No. 1 Fund and the No. 2 Fund. Both the No. 1 Fund and the No. 2 Fund were launched on 30 April 2008 and closed on 10 August On 11 June 2012, revocation of approval for the No. 1 Fund and the No. 2 Fund was received from the Central Bank. With effect from 11 June 2012, the Company was converted to a non-ucits retail fund, and subsequently converted to a retail alternative investment fund on 4 December The Company is a retail alternative investment fund for the purposes of the Alternative Investment Fund Managers Directive ( AIFMD ) 2011/61/EU. With effect from 4 December 2014, Standard Life Investments (Mutual Funds) Limited has been appointed by the Company as the Alternative Investment Fund Manager (the "AIFM") to perform portfolio and risk management functions as well as activities related to the assets of the Company. The AIFM is authorised and regulated by the Financial Conduct Authority ( FCA ) in the conduct of its regulated activities in the United Kingdom. The Company is an umbrella fund, which may comprise of different funds, each with one or more classes of shares. At the date of this report, the Company comprises of a single fund, the Global Real Estate Feeder Fund (the Fund ) which was launched on 26 February The Company has established 19 classes of shares in respect of the Fund. During the financial period ended 31 October 2017 and financial year ended 30 April 2017, there were 7 active share classes: Class A DKK Shares, Class A DKK Shares (Hedged), Class A EUR Shares, Class A EUR Shares (Hedged), Class A Shares, Class D EUR Shares and Class D EUR Shares (Hedged). Investment Objective The primary objective of the Fund is to provide income, with some capital appreciation over the longer term. The Fund will generally invest all, or substantially all, of its assets in Standard Life Investments Global Real Estate Fund (the "Master Fund"), an open ended authorised property unit trust established in the United Kingdom under the UK Financial Services and Markets Act 2000 and regulated by the FCA. The Fund shall constitute a retail investor fund which invests substantially in another investment fund in accordance with the Central Bank's Alternative Investment Funds Rulebook ( AIF Rulebook ). The investment objective of the Master Fund is to provide income, with some capital appreciation over the longer term, predominantly through investment in global commercial property and property related equities, property investment companies, other property collective investment schemes and cash. The Company is established separately from the Master Fund. However, the Fund is a unitholder in the Master Fund and will participate in the profits and losses of the Master Fund on the same basis as any other unitholder. Other relevant information A full copy of the prospectus is available on request at the registered office of the Company. 3

5 Report of the Alternative Investment Fund Manager For the financial period ended 31 October 2017 Other than Financial Instruments employed for Efficient Portfolio Management, as described in Note 5, the Fund is entirely invested in the Standard Life Investments Global Real Estate Fund (the "Master Fund"). A review of the performance of the Master Fund is discussed below. Investment Background Global real estate markets generally continued to deliver steady performance over the last six months. In the UK, for example, the real estate market fully recovered the capital losses sustained in the immediate aftermath of last year s EU referendum, helped by demand from overseas investors. Political events also failed to derail progress in European real estate, which continued to perform well. Meanwhile, Asia Pacific real estate markets remained generally positive, given weaker regional currencies and low interest rates. Global listed real estate markets posted positive returns over the period under review. Continental Europe was among the strongest performing regions, helped by increasing confidence in economic growth. The North American REIT market was modestly positive but lagged the broader equity market and global REIT index. Interest rate volatility and a weaker US dollar were key drivers. In Asia, the Hong Kong and Singapore markets performed well, helped by elevated levels of liquidity in the system. Conversely, Japan and Australia underperformed. Investment Activity of the Master Fund We made no sales and one purchase during the period, acquiring a logistics asset in the Netherlands for 29.5 million, which reflects an attractive income yield of 6%. The purchase provides access to long-dated income in a sector rated as Very Heavy in our Real Estate House View. It also improves a number of the Fund s key metrics, such as increasing the average unexpired lease term and reducing the void rate. In Australia, the Fund completed three new lettings at 55 St George s Terrace, Perth. In Melbourne, the prevailing strength of the occupational market meant we could quickly re-lease the space vacated by mining company Answar at 432 St Kilda Road. As a result of this leasing activity, and yield compression applied to the valuation because of comparable transactional activity, the value of this asset increased by 16% over the reporting period. In Europe, we have completed two new lettings at Customs House Plaza, Dublin, so far this year. This means the building is now fully occupied for the first time during the Fund s ownership. These lettings set a new rental tone for the building and a re-rating of rental value has resulted in strong capital performance, with a 21% value increase over the year to date. At the Fund s other Dublin asset, Fleming Court, we completed a letting to Health XL and signed an agreement for lease with a gym operator. Again, this resulted in capital value uplift. We substantially restructured the listed real estate portfolio during the period. This included selling retail-focused holdings Brixmor and Regency Centres, as we expect malaise in the retail sector to continue. We also sold out of office holdings Douglas Emmett, Boston Properties and Vornado. We recycled proceeds into SL Green, Paramount, Hudson Pacific and Kilroy, which were the listed real estate team s favoured US office sector holdings. Latterly, we broadened the Fund s holdings in the apartment sector through investment in Essex Trust and Mid America. In addition, we diversified holdings in the hotel sector by trimming Hilton Hotels and reinvesting into Marriott Hotels. Performance of the Master Fund Towards the end of April, we put in place measures to hedge out the currency exposure associated with the Fund s direct property holdings. This helped to dampen unit price volatility and provided a platform for positive performance. Individual assets, Customs House Plaza, Dublin; St Kilda Road, Melbourne; and Ogier House, Jersey, delivered strong performance during the period due to material uplifts in capital values. Outlook for the Master Fund In the UK, we prefer high quality, higher-yielding industrial-type assets and resilient, high quality retail assets located in areas with a lack of competition. Elsewhere in Europe, expectations have not changed dramatically despite political uncertainty; core markets are forecast to produce attractive risk-adjusted returns supported by low development and accommodative monetary policy. Meanwhile, recovering markets continue to experience a rebound, generating higher absolute returns. Expectations for continued US economic expansion amid low supply should continue to drive rental growth across most property types and markets. Gateway office markets continue to attract wealthy foreign buyers and support pricing, although both tenant demand and asset performance are stronger on the west coast than the east. In Asia, we prefer industrial assets underpinned by e-commerce. Developed Asia office assets are generally close to the peak in their cycle. The exceptions are Singapore offices, which are entering a new up cycle. Strategy of the Master Fund Despite occupational demand remaining muted, there has been a recent uptick in investor demand for Perth offices. Now that the Fund has allocated its surplus cash following the recent Dutch acquisition, joint agents have been retained in order to solicit offers for one or both of the Fund s Perth assets. The Sao Paulo office market is approaching its low point and we are currently working with our research team and our former joint venture partner to establish whether conditions are sufficiently favourable in order to re-enter this market. Meanwhile, we intend to keep the currency hedges on the Fund s direct real estate in place while uncertainty around the UK s departure from the EU remains elevated. Standard Life Investments (Mutual Funds) Limited December

6 Statement of Financial Position As at 31 October 2017 Global Real Estate Feeder Fund Total Company Notes 31 October 2017 Assets Cash at bank 1 (h) 29,220 29,220 Financial assets at fair value through profit or loss 6 1,750,767 1,750,767 Securities sold receivable 13,417 13,417 Due from Investment Adviser 35,560 35,560 Other receivables 9,910 9,910 Total assets 1,838,874 1,838,874 Liabilities (due within one year) Financial liabilities at fair value through profit or loss 6 (20,243) (20,243) Redemptions payable (13,361) (13,361) Securities purchased payable (74) (74) Investment management fees payable (4,968) (4,968) Administration fees payable (158,139) (158,139) Depositary fees payable (142,031) (142,031) Audit fees payable (37,577) (37,577) Other payables (12,197) (12,197) Total liabilities (excluding net assets attributable to redeemable participating shareholders) (388,590) (388,590) Net assets attributable to redeemable participating shareholders 1,450,284 1,450,284 Shares outstanding Class A DKK Shares 71,539 Class A DKK Shares (Hedged) 46,108 Class A EUR Shares 100 Class A EUR Shares (Hedged) 500 Class A Shares 100 Class D EUR Shares 100 Class D EUR Shares (Hedged) 500 Net asset value per share Class A DKK Shares Class A DKK Shares (Hedged) Class A EUR Shares 9.82 Class A EUR Shares (Hedged) Class A Shares Class D EUR Shares Class D EUR Shares (Hedged) The accompanying notes form an integral part of these financial statements. 5

7 Statement of Financial Position As at 30 April 2017 Global Real Estate Feeder Fund Total Company Notes 30 April 2017 Assets Cash at bank 1 (h) 41,845 41,845 Financial assets at fair value through profit or loss 6 2,938,086 2,938,086 Due from Investment Adviser 59,682 59,682 Total assets 3,039,613 3,039,613 Liabilities (due within one year) Financial liabilities at fair value through profit or loss 6 (13,892) (13,892) Investment management fees payable (31,934) (31,934) Administration fees payable (136,760) (136,760) Depositary fees payable (115,026) (115,026) Directors' fees payable (10,802) (10,802) Audit fees payable (20,312) (20,312) Other payables (6,926) (6,926) Total liabilities (excluding net assets attributable to redeemable participating shareholders) (335,652) (335,652) Net assets attributable to redeemable participating shareholders 2,703,961 2,703,961 Shares outstanding Class A DKK Shares 174,959 Class A DKK Shares (Hedged) 60,554 Class A EUR Shares 100 Class A EUR Shares (Hedged) 500 Class A Shares 100 Class D EUR Shares 100 Class D EUR Shares (Hedged) 500 Net asset value per share Class A DKK Shares Class A DKK Shares (Hedged) Class A EUR Shares 9.83 Class A EUR Shares (Hedged) Class A Shares Class D EUR Shares Class D EUR Shares (Hedged) The accompanying notes form an integral part of these financial statements. 6

8 Statement of Comprehensive Income For the financial period ended 31 October 2017 Global Real Estate Feeder Fund Total Company Income Net gain on financial assets and financial liabilities at fair value through profit or loss 124, ,736 Total net gain 124, ,736 Expenses Investment management fees (18,289) (18,289) Administration fees (36,229) (36,229) Depositary fees (27,005) (27,005) Directors' fees (14,567) (14,567) Audit fees (17,264) (17,264) Other expenses (18,565) (18,565) Total expenses (131,919) (131,919) Reimbursement due from Investment Adviser 107, ,351 Net expenses after reimbursement due from Investment Adviser (24,568) (24,568) Increase in net assets attributable to redeemable participating shareholders from operations 100, ,168 All gains and losses have been recognised in the Statement of Comprehensive Income and arise from continuing operations. The accompanying notes form an integral part of these financial statements. 7

9 Statement of Comprehensive Income For the financial period ended 31 October 2016 Global Real Estate Feeder Fund Total Company Income Net gain on financial assets and financial liabilities at fair value through profit or loss 4,395,687 4,395,687 Total net gain 4,395,687 4,395,687 Expenses Investment management fees (200,177) (200,177) Administration fees (34,154) (34,154) Depositary fees (26,603) (26,603) Directors' fees (7,513) (7,513) Audit fees (13,171) (13,171) Other expenses (4,868) (4,868) Total expenses (286,486) (286,486) Reimbursement due from Investment Adviser 17,669 17,669 Net expenses after reimbursement due from Investment Adviser (268,817) (268,817) Increase in net assets attributable to redeemable participating shareholders from operations 4,126,870 4,126,870 All gains and losses have been recognised in the Statement of Comprehensive Income and arise from continuing operations. The accompanying notes form an integral part of these financial statements. 8

10 Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders For the financial period ended 31 October 2017 Global Real Estate Feeder Fund Total Company 31 October October 2017 Net assets attributable to redeemable participating shareholders at beginning of financial period 2,703,961 2,703,961 Increase in net assets attributable to redeemable participating shareholders from operations 100, ,168 Cost of redeemable participating shares redeemed (1,353,845) (1,353,845) Net assets attributable to redeemable participating shareholders at end of financial period 1,450,284 1,450,284 The accompanying notes form an integral part of these financial statements. 9

11 Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders For the financial period ended 31 October 2016 Global Real Estate Feeder Fund Total Company 31 October October 2016 Net assets attributable to redeemable participating shareholders at beginning of financial period 24,691,143 24,691,143 Increase in net assets attributable to redeemable participating shareholders from operations 4,126,870 4,126,870 Proceeds from redeemable participating shares issued 291, ,973 Cost of redeemable participating shares redeemed (17,502,455) (17,502,455) Net assets attributable to redeemable participating shareholders at end of financial period 11,607,531 11,607,531 The accompanying notes form an integral part of these financial statements. 10

12 Notes to the Financial Statements 1. Summary of significant accounting policies Statement of compliance of financial statements The condensed financial statements of Standard Life Investments ICVC plc (the Company ) for the financial period ended 31 October 2017 have been prepared in accordance with Financial Reporting Standard ( FRS ) 104, Interim Financial Reporting ( FRS 104 ) and Irish Statute comprising the Companies Act 2014, as amended and the AIF Rulebook. The condensed financial statements should be read in conjunction with the audited financial statements for the financial year ended 30 April 2017, which have been prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland ( FRS 102 ) and Irish Statute. Basis of preparation The format and certain wordings of the financial statements have been adapted from those contained in the Companies Act 2014, as amended, as well as the particular requirements of Sections 3 to 6 of FRS 102. The financial statements have been prepared on a going concern basis which assumes that the Global Real Estate Feeder Fund (the Fund ) and the Company will continue in operational existence for the foreseeable future. The financial statements are prepared under the historical cost convention with the exception of financial assets and financial liabilities held at fair value through profit or loss that have been measured at fair value. The Company has availed of the exemption available to investment funds under FRS 102, Section 7 Statement of Cash Flows not to prepare a cash flow statement. Significant accounting policies The significant accounting policies and estimation techniques adopted by the Company for the financial period ended 31 October 2017 are consistent with those adopted by the Company for the audited financial statements for the financial year ended 30 April Foreign exchange Assets and liabilities in the Statement of Financial Position are translated at the closing exchange rate applicable at the financial period end date. Income and expenses in the Statement of Comprehensive Income and subscriptions and redemptions in the Statement of Changes in Net Assets Attributable to Redeemable Participating Shareholders are translated at the actual exchange rate on the date of the transaction. The following exchange rates against were used in the preparation of these financial statements: 31 October 2017 Average Period end Euro Danish Krone April 2017 Average Year end Euro Danish Krone October 2016 Average Period end Euro Danish Krone

13 Notes to the Financial Statements (continued) 3. Related parties FRS 102, Section 33 Related Party Disclosures requires the disclosure of information relating to material transactions with parties who are deemed to be related to the reporting entity. In the opinion of the Directors, Standard Life Investments Limited (the Investment Adviser ) and the AIFM are related parties. Investment management fees charged by the Investment Adviser during the financial period and investment management fees payable to the Investment Adviser at the financial period end are disclosed in the Statement of Comprehensive Income and the Statement of Financial Position, respectively. The reimbursement due to the Fund as a result of the application of a total annual expense ratio cap by the Investment Adviser is shown in the Statement of Comprehensive Income as Reimbursement due from Investment Adviser. The reimbursement due from Investment Adviser at the end of the financial period is shown in the Statement of Financial Position as Due from Investment Adviser. There are no direct fees paid to the AIFM from the Fund, nor are there any management charges paid by the Master Fund for the unit class in which the Fund invests. The AIFM does receive management charges for the other unit classes within the Master Fund. As at 31 October 2017, the Investment Adviser held shares in various share classes of the Fund aggregating to 13,276 (30 April 2017: 12,937). The investment in the Master Fund also constitutes a related party as the AIFM is the manager of the Master Fund. The holdings in the Master Fund as at 31 October 2017 are disclosed in the Schedule of Investments. The value of units in the Master Fund bought and sold during the financial period ended 31 October 2017 was 86,273 (31 October 2016: 1,016,955) and 1,373,300 (31 October 2016: 17,603,350), respectively. Investors in the Fund are subject to organisational and offering expenses, operating costs, brokerage expenses and administrative fees of the Master Fund. The Master Fund is also subject to the fees of its professional advisers at normal commercial rates. There is no duplication of investment management fees between the Fund and the Master Fund. Copies of the prospectus, supplemental prospectuses, articles of association and latest periodic reports of the Master Fund may be inspected and obtained at the registered office of the AIFM at 1 George Street, Edinburgh, Scotland during normal hours on any business day. In the opinion of the Directors, the Directors are also related parties. Directors Brendan Bryce and Jennifer Richards are employees of the Investment Adviser. Director Michael McKenna is an employee of Standard Life Employee Services Limited. At the financial period end date, both the Investment Adviser and Standard Life Employee Services Limited are subsidiaries of Standard Life Aberdeen plc. The Directors are entitled to a fee as remuneration for their services as Directors at a rate to be determined from time to time by the Directors and which shall accrue daily and be payable annually in arrears. The aggregate amount of Directors remuneration in any one financial year shall not exceed EUR 75,000. It is expected that the aggregate amount of Directors current remuneration will be approximately EUR 25,000 per annum but may be increased to EUR 75,000 without notice to the shareholders. Directors Brendan Bryce, Jennifer Richards and Michael McKenna have waived their right to receive a fee for their services as Directors for the financial period ended 31 October 2017 and 31 October Directors fees incurred during the financial period and payable at the financial period end are disclosed in the Statement of Comprehensive Income and the Statement of Financial Position, respectively. As at 31 October 2017, 2 Subscriber Shares with no par value were held by Directors Brendan Bryce and Jennifer Richards (30 April 2017: Brendan Bryce and Jennifer Richards). 4. Connected persons In accordance with the requirements of paragraph 1 of section 1.viii Dealings by management company, general partner, depositary, AIFM, investment manager or by delegates or group companies of these of the AIF Rulebook, all transactions carried out with the Company by the Investment Adviser, the Depositary and/or their associated or group companies ( connected persons ) must be carried out as if negotiated at arm s length and be in the best interests of shareholders. The Directors are satisfied that there are arrangements in place (evidenced by written procedures) to ensure that these obligations are applied to all transactions with connected persons and that transactions with connected persons entered into during the current financial period or prior financial year complied with these obligations. 5. Efficient portfolio management The Company may employ investment techniques and instruments for efficient portfolio management of the assets of the Company or the Fund subject to the conditions and limits set out in the AIF Rulebook and by the Central Bank. The Company may, for the purposes of hedging (whether against currency exchange or interest rate risks or otherwise), enter into put and call options, spot and forward contracts, financial futures, stock and bond index futures contracts, repurchase and reverse repurchase agreements and securities lending agreements. In particular, the Fund may seek to hedge its investments against currency fluctuations which are adverse to its base currency by utilising currency options, futures contracts and forward foreign currency contracts. 12

14 Notes to the Financial Statements (continued) 5. Efficient portfolio management (continued) The Fund may also from time to time make use of exchange traded stock index and other futures contracts for the purpose of efficient portfolio management to enable it to maintain the appropriate exposure to stock markets in accordance with the relevant Investment Adviser s recommended overall asset allocation. The Fund may enter into repurchase agreements and reverse repurchase agreements subject to the conditions and limits as set out in the prospectus. Share classes designated in a currency other than the base currency of the Fund may be subject to a depreciation of their value as a result of changes in the exchange rate between the base currency and the share classes designated currency. During the financial period, forward foreign currency transactions were entered into for the purpose of efficient portfolio management in order to try to mitigate this risk. Details of all open transactions as at 31 October 2017 are disclosed in the Schedule of Investments. The unrealised gain or loss on open forward foreign currency contracts is calculated as the difference between the contracted rate and the rate to close out the contract and the changes in unrealised gains or losses are included as part of net gain/(loss) on financial assets and financial liabilities at fair value through profit or loss in the Statement of Comprehensive Income. Realised gains and losses on forward foreign currency contracts which have been settled during the financial period or offset by other contracts are also included in net gain/(loss) on financial assets and financial liabilities at fair value through profit or loss in the Statement of Comprehensive Income. 6. Fair value of financial instruments Measurement Financial assets and financial liabilities at fair value through profit or loss are initially recognised at fair value. Subsequent to initial recognition, financial assets and financial liabilities are classified as financial assets and financial liabilities at fair value through profit or loss. The estimation of fair value after initial recognition is determined as follows: (i) Units of the Master Fund are valued at the last available net asset value for such units on the relevant valuation day as published by the administrator of the Master Fund. The Company will rely on valuations received by it from the administrator of the Master Fund. Where such prices are not available or are subject to change for any reason, the assets of the Master Fund, and in turn the price of units in the Master Fund, may be valued at their probable realisation values estimated with care and in good faith by the AIFM. (ii) Forward foreign currency contracts are fair valued by an independent price source by reference to the price at which a new forward contract of the same size and maturity could be undertaken. Fair value estimation FRS 102 requires the Company to categorise its fair value measurements into the following levels consistent with the fair value hierarchy set out in IFRS as adopted for use in the European Union. These amendments did not have any impact on the Fund s financial position or performance. Level 1 Level 2 Level 3 Quoted prices (unadjusted) in active markets for identical assets or liabilities. Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices). Inputs for the asset or liabilities that are not based on observable market data (that is, unobservable inputs). The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety is determined on the basis of the lowest level input that is significant to the fair value measurement in its entirety. For this purpose, the significance of an input is assessed against the fair value measurement in its entirety. If a fair value measurement uses observable inputs that require significant adjustment based on unobservable inputs, that measurement is a level 3 measurement. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgement, considering factors specific to the asset or liability. The determination of what constitutes observable requires significant judgment by the Company. The Company considers observable data to be that market data that is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market. 13

15 Notes to the Financial Statements (continued) 6. Fair value of financial instruments (continued) Fair value estimation (continued) The table below provides an analysis of the Fund s financial assets and financial liabilities measured at fair value. Global Real Estate Feeder Fund Level 1 Level 2 Level 3 Total 31 October 2017 Financial assets Collective investment schemes 1,750,709 1,750,709 Forward foreign currency contracts ,750,767 1,750,767 Financial liabilities Forward foreign currency contracts (20,243) (20,243) (20,243) (20,243) Global Real Estate Feeder Fund Level 1 Level 2 Level 3 Total 30 April 2017 Financial assets Collective investment schemes 2,936,347 2,936,347 Forward foreign currency contracts 1,739 1,739 2,938,086 2,938,086 Financial liabilities Forward foreign currency contracts (13,892) (13,892) (13,892) (13,892) 7. Segregated liability The Company avails of the segregated liability provisions of the Companies Act 2014, as amended. As such, under Irish Law the Company generally will not be liable as a whole to third parties and there generally will not be the potential for cross liability between Funds. 8. Soft commission arrangements The Company, or the Fund, did not enter into any soft commission arrangements during the financial period ended 31 October 2017 and 31 October Commitments and contingent liabilities There were no significant commitments or contingent liabilities as at 31 October 2017 or 30 April Significant events during the financial period A new prospectus was issued on 14 June On 14 August 2017, Standard Life plc and Aberdeen Asset Management Plc completed a merger to form Standard Life Aberdeen plc. There were no other significant events affecting the Company during the financial period. 11. Subsequent events There were no significant events affecting the Company since the financial period end. 12. Approval of financial statements The financial statements were approved by the Directors on 20 December

16 Schedule of Investments as at 31 October 2017 Investments Units/Contracts Fair Value % of Net Assets Financial assets at fair value through profit or loss Collective investment schemes (30 April 2017: 2,936,347) United Kingdom Standard Life Investments Global Real Estate Fund 2,697,133 1,750, Total collective investment schemes 1,750, Forward foreign currency contracts (30 April 2017: 1,739) Amount Currency bought Currency Amount sold Maturity Fair Value % of Net assets 5,141 DKK (43,276) 15/11/ DKK (51) 15/11/ ,145 DKK (43,276) 15/12/ DKK (51) 15/12/ Unrealised gain on forward foreign currency contracts Total financial assets at fair value through profit or loss 1,750, Financial liabilities at fair value through profit or loss Forward foreign currency contracts (30 April 2017: (13,892)) Amount Currency bought Currency Amount sold Maturity Fair Value % of Net Assets DKK 1,949,397 (237,989) 15/11/2017 (7,739) (0.53) DKK 245 (29) 15/11/2017 (0.00) DKK 1,946,956 (238,951) 15/12/2017 (8,778) (0.61) DKK 245 (29) 15/12/2017 (0.00) DKK 1,724,023 (207,455) 16/01/2018 (3,428) (0.24) EUR 1,923 (1,746) 15/11/2017 (56) (0.00) EUR 1,884 (1,710) 15/11/2017 (55) (0.00) EUR 1,922 (1,755) 15/12/2017 (64) (0.01) EUR 1,881 (1,718) 15/12/2017 (63) (0.00) EUR 1,928 (1,726) 16/01/2018 (29) (0.00) EUR 1,886 (1,688) 16/01/2018 (28) (0.00) 21,530 DKK (182,291) 15/11/2017 (1) (0.00) 21,549 DKK (182,291) 15/12/2017 (2) (0.00) Unrealised loss on forward foreign currency contracts (20,243) (1.39) Total financial liabilities at fair value through profit or loss (20,243) (1.39) Total financial assets and liabilities at fair value through profit or loss 1,730, Other net liabilities (280,240) (19.32) Net assets attributable to redeemable participating shareholders 1,450, The counterparty for all forward foreign currency contracts at 31 October 2017 is The Bank of New York Mellon. The accompanying notes form an integral part of these financial statements. 15

17 Standard Life Investments Limited is registered in Scotland (SC123321) at 1 George Street, Edinburgh EH2 2LL. It is authorised and regulated in the UK by the Financial Conduct Authority and is the Investment Manager and Marketing Agent for Standard Life Investments ICVC plc. Standard Life Investments ICVC plc is regulated by the Central Bank of Ireland and is an umbrella type open ended investment company with variable capital registered in the Republic of Ireland (no ) at 70 Sir John Rogerson s Quay, Dublin 2, Ireland. Directors: B Bryce (UK), A Curtin, M McKenna, J Richards (UK) Calls may be monitored and/or recorded to protect both you and us and help with our training. 16