Growth Trust. Manager s Half-Year Short Report 2013

Transcription

1 Growth Trust Manager s Half-Year Short Report 2013

2 Manager s report Trust Review This is the half-year report of the Wesleyan Growth Trust covering the six months from 1 July to 31 December It was a period which saw further strength in UK share prices with the FTSE 100 index rising by more than 500 points to end the year at The offer price of units in the Wesleyan Growth Trust rose by approximately 13% outperforming the key benchmark indices by 3% over the period. Full performance details are given on page 3 of this report. In addition, information about the latest distribution (which is reinvested in the fund to enhance the unit price) is included on page 4. The stockmarket strength was helped by a continuation of very low short-term interest rates in most developed economies and a general determination of central banks to provide an environment supportive of economic growth. Smaller and so-called mid-cap companies significantly outperformed the larger multinationals once again. Investor concerns earlier in the year about a possible triple-dip recession in the UK and more turmoil in the Eurozone proved unfounded and risk assets such as equities and property performed well as a result. Outlook The year ended with definite signs of positive momentum in the UK economy and most forecasters are predicting that 2014 will see an improved growth rate compared to recent years. Despite this, share prices have fallen back in the early weeks of 2014 due to rising concerns about the economic outlook for a number of emerging markets such as Argentina and Turkey. In addition investors remain wary of the impact that the reducing amount of quantitative easing (electronic printing of money) being undertaken by the US Federal Reserve will have on financial markets going forward. While this setback in share prices is not totally unsurprising given the very strong run over the last few years we still feel that a balanced portfolio of UK shares offers good long-term value, particularly against a background of very low short-term interest rates and an improving UK economy. Clive C. Ward, Bsc, FIA Chief Executive Wesleyan Unit Trust Managers Limited 12 February

3 Trust and benchmark performance 11/12/ /6/ /12/2013 Change Last 6 months Since launch Unit Offer Price (Series 1) % % adjusted for distribution 12.69% % FTSE 100 Index % 84.80% FTSE Actuaries All-Share Index % % 03/01/ /06/ /12/2013 Change Last 6 months Since launch Unit Offer Price (Series 2*) % 24.10% adjusted for distribution 12.83% 22.73% FTSE 100 Index % 11.60% FTSE Actuaries All-Share Index % 13.86% *Series 2 units were launched on 2 January 2013 with the first valuation taking place on 3 January Prior to this date only Series 1 units were in issue. Performance record Series 1 Series 2* Date Net Asset Change Net Asset Change Value per unit over Value per unit over (pence) period (pence) period 30/06/ % 30/06/ % 30/06/ % 30/06/ % 30/06/ % %** 31/12/ % % *Series 2 units were launched on 2 January Prior to this date only Series 1 units were in issue. **As Series 2 units have not been in issue for a full year, the figure shown represents the change in value from the date of launch up to 30 June Past performance is not a guide to future performance. The price of units and distributions credited may go down as well as up. Investments in unit trusts should normally be regarded as long-term investments. 3

4 Trust facts Interim/Annual Accounting dates Accumulation summary Unit type Ongoing Charge Figures % as at 31/12/13* Total Distribution (p) for the period to 31/12/13 ***Series 2 units were launched on 2 January Prior to this date only Series 1 units were in issue. Total purchases for the period ended 31 December 2013, including transaction charges, were 2,322,309 (31 December 2012: 344,754). Total sales proceeds for the period ended 31 December 2013, net of transaction charges, were 2,875,841 (31 December 2012: 2,008,829). Investment objective and policy Payment dates 31 December 28 February 30 June 31 August Ongoing Charge Figures % as at 30/06/13 Series 1 units 1.42% 1.44% Series 2 units** 1.67% 1.69% * Annualised **Series 2 units were launched on 2 January 2013, prior to this date only Series 1 units were in issue The Ongoing Charges take into account the Manager s fee and any fixed expenses expressed as a percentage of the average daily net asset values over the period. Following the adoption of the requirements of Undertakings for Collective Investment in Transferable Securities (UCITS) IV in June 2012, Ongoing Charges have replaced the Total Expense Ratio ( TER ). The comparative figures have not been restated. The main difference between the two calculations is the inclusion of custody-related transaction charges in the Ongoing Charges Figure. Total Distribution (p) for the period to 31/12/12 Accumulation Series Accumulation Series 2*** The investment objective of Wesleyan Growth Trust is to produce capital appreciation and an increasing income from the active management of a diversified portfolio of securities. Under normal circumstances the emphasis will be on equity shares. However, the Manager reserves the right to invest a portion of the Trust in bonds, other fixed interest securities and convertibles should such investment be deemed advantageous in view of prevailing market conditions, taxation arrangements, and Individual Savings Account (ISA) regulations. The Manager also retains the freedom to hedge any currency risk in the Trust when considered appropriate. Capital growth will be sought through various sectors and companies believed to have good growth prospects. The Manager intends that the Trust will, at all times, be a qualifying investment for Individual Savings Accounts. 4

5 Risk profile The main risks faced by Wesleyan Growth Trust arising from financial instruments, are: market price risk, being the risk that the value of holdings will fluctuate as a result of changes in market prices caused by factors other than interest rate or currency movement; foreign currency risk, being the risk that changes in currency rates may cause the value of an investment to fall; interest rate risk, being the risk that interest rates could fall resulting in lower growth than expected; and inflation risk, being the risk that inflation could erode the value of your investment. Portfolio of investments Sectors (Position as at 31/12/13) (Position as at 30/6/13) Financials Oil & Gas Consumer Services Telecommunications Basic Materials Industrials Healthcare Utilities Consumer Goods Technology Net other assets Fund Net Asset Value as at 31/12/13: 66.9m Fund Manager: Clive C. Ward, BSc, FIA Risk and reward profile Low Risk High Risk Typically lower rewards Typically higher rewards The risk category is based on the rate the fund s value has moved up and down in the past. The fund s value can be influenced by changes in stock market prices, currencies and interest rates which can be affected by factors such as political and economic events. This risk category is calculated in line with European Union rules using historical data. This is not a guarantee and may not be a reliable indication of the fund s future risk and reward category. A fund in the lowest category does not mean a risk free investment. 5

6 Major holdings Holding % of Trust as at 31/12/13 Holding % of Trust as at 30/6/13 BP 5.31 HSBC Holdings (London listed)* 4.77 Vodafone Group 4.76 Royal Dutch Shell B 4.73 BG Group 3.79 BT Group 3.71 Prudential 3.52 GlaxoSmithKline 3.50 Mercantile Investment Trust 3.13 Rio Tinto 2.87 HSBC Holdings (London listed)* 5.46 BP 5.45 Vodafone Group 5.34 Royal Dutch Shell B 5.02 GlaxoSmithKline 4.76 BG Group 3.64 BT Group i Group 3.20 Prudential 3.17 Mercantile Investment Trust 2.81 *A related party to the Trust Other information The information in this report is designed to enable unitholders to make an informed judgement on the activities of the trust during the period it covers and the results of those activities at the end of the period. Report and Accounts Copies of the annual and half-yearly long-form report and accounts of this trust are available free of charge on request to the Manager, by calling or via our website 6

7 Manager and Advisers Manager: Wesleyan Unit Trust Managers Limited Colmore Circus Birmingham B4 6AR Directors: C.W. Errington, CDir, FIoD (Chairman) C. Bridge, BSc, FCIPD, FIoD, CDir S.J. Porter, Dip IoD C.C. Ward, BSc, FIA (Chief Executive) Trustee: HSBC Bank plc 8 Canada Square London E14 5HQ Registrar: International Financial Data Services Limited PO Box 9033 Chelmsford CM99 2WQ Independent Auditors: PricewaterhouseCoopers LLP Erskine House Queen Street Edinburgh EH2 4NH Legal Advisers to the Manager: Eversheds LLP Senator House 85 Queen Victoria Street London EC4V 4JL Wesleyan Growth Trust is an authorised unit trust scheme within the meaning of the Financial Services and Markets Act It is categorised as a UCITS scheme. The Manager, Trustee and Independent Auditors are authorised and regulated by the Financial Conduct Authority. 7

8 If you would like this document in Braille, large print or audio tape, please contact Wesleyan Unit Trust Managers Limited Administration Centre: PO Box 9033 Chelmsford CM99 2WQ Telephone: Our lines are open from 9am to 5pm, Monday to Friday. We may monitor our calls to improve our service. Registered in England and Wales (No ) Head Office: Colmore Circus Birmingham B4 6AR Wesleyan Unit Trust Managers Ltd is authorised and regulated by the Financial Conduct Authority Wesleyan Unit Trust Managers Ltd is wholly owned by Wesleyan Assurance Society which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Wesleyan Unit Trust Managers Ltd is also a member of the IMA. Telephone calls may be recorded for monitoring and training purposes. Copies of the Scheme Prospectus, Key Investor Information Documents (KIIDs) and the most recent Annual Report and Half-Yearly Report on authorised funds are available free of charge from the Administration Centre. WI-REP-10-02/14