INTERNATIONAL CORPORATE BOND UNIT TRUST

Transcription

1 INTERNATIONAL CORPORATE BOND UNIT TRUST FOR THE PERIOD ENDED 31 MARCH 2015

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 Babson Capital Europe Limited 61 Aldwych London, WC2B 4AE 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 During the period under review, 1 October 2014 to 31 March 2015, the St. James's Place International Corporate Bond Unit Trust Income unit offer price fell by 1.5% from 110.2p to 108.6p and the Accumulation unit offer price (in which revenue is reflected in the price rather than distributed) rose by 1.6% from 140.5p to 142.8p. Gross Income unit offer price fell by 0.2% from 109.2p to 109.0p and the Gross Accumulation unit offer price rose by 1.8% from 141.2p to 143.7p from the launch date. The Manager's Report consists of Report of the Manager, The Trust's Performance, Investment Adviser's Comments, Risk and Reward Profile and Portfolio Statement. The Trust's Performance The performance of the Trust since its launch in April 2010 and over the period 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 International Corporate Bond Unit Trust Income units (offer to offer) Accumulation units (offer to offer) Gross Income units (offer to offer)* Gross Accumulation units (offer to offer)* Indices - actual Merrill Lynch Global High Yield BB-B (Total Return) *Gross Units were made available on the 6 October Source: Lipper for Fund returns 06/04/10 to 30/09/14 to 31/03/15 31/03/15 % change % change 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. Investment Adviser's Comments The portfolio generated positive returns over the past six months as the general market environment improved following a period of marked volatility in the fourth quarter of Falling oil prices caused indiscriminate selling within the US energy sector towards the end of 2014, but we have since seen more stability returning to the markets. The major news of the first quarter in 2015 was the announcement of quantitative easing (QE) by the European Central Bank at a greater size and for a longer term than the market had been expecting, and this resulted in a significant rally in European risk assets. The technical picture for global senior secured bonds has remained strong over the last six months, with attractive yields and the senior secured nature of the asset class providing an attractive combination for investors in the current low interest rate environment. New issue volumes have picked up after the market volatility experienced in Q and this has provided attractive investment opportunities. With high levels of cash being held on corporate balance sheets, this has contributed to increased merger and acquisition ( M&A ) activity as companies have sought to issue bonds both in the US and European market to finance transactions. We also saw some companies refinancing their loans in the senior secured bond market, a recent example from February 2015 being Heinz, and we participated in the $2bn senior secured bond offering by the food processing giant. The portfolio continues to engage in active relative-value trading in order to take advantage of capital appreciation and geographical arbitrage opportunities within the senior secured bond market. With the benign interest rate environment in the US, the effects of QE in Europe and global corporate balance sheets remaining in good health, we expect global senior secured bonds to remain an attractive investment option in the current low-yield environment. As such, the portfolio will continue to take advantage of primary, and selective secondary market opportunities, ensuring a diversified combination of robust senior secured credits with attractive yield profiles. Babson Capital Europe Limited 17 April

4 Performance Record The St. James's Place International Corporate Bond Unit Trust was first offered on 6 April 2010 at an offer price of p per unit. Unit Price History and Record of Distributions Paid/Payable The record of net distributions paid/payable per unit is shown below: Income Calendar year * Accumulation Calendar year * Gross Income Calendar year * Gross Accumulation Calendar year * revenue distributed Highest Lowest per 1,000 Invested Offer Bid per unit at 06/04/10 p p p revenue distributed Highest Lowest per 1,000 Invested Offer Bid per unit at 06/04/10 p p p revenue distributed Highest Lowest per 1,000 Invested Offer Bid per unit at 06/10/14 p p p revenue distributed Highest Lowest per 1,000 Invested Offer Bid per unit at 06/10/14 p p p

5 Performance Record (continued) Asset Values Income Year ended September * Accumulation Year ended September * Gross Income Year ended September 2015* Gross Accumulation Year ended September 2015* Market NAV NAV Units in Issue of Class per Unit '000 p 59,347,862 60, ,530,197 91, ,047, , ,417,122 37, Market NAV NAV Units in Issue of Class per Unit '000 p 708,232, , ,090,639 1,238, ,202,517,415 1,597, ,040,464,222 1,402, Market NAV NAV Units in Issue of Class per Unit '000 p 109,086, , Market NAV NAV Units in Issue of Class per Unit '000 p 267,045, , Ongoing Charges Figure The Ongoing Charges Figure for the period ended 31 March 2015 was 1.47% (30 September 2014: 1.50%) for Income units and 1.49% (30 September 2014: 1.50%) Accumulation Units, and 1.50% for Gross Income units, 1.50% for Gross Accumulation Units. The Ongoing Charges Figure ('OCF') is the total expenses paid by the Trust in the period, annualised, against its average net asset value. It excludes the cost of buying or selling assets for the Trust (unless these assets are shares of another trust). The OCF can fluctuate as underlying costs change. Risk and Reward Profile The synthetic risk and reward indicator for the St. James s Place International Corporate Bond Unit Trust, as disclosed in its most recent Key Investor Information Document (KIID), is a 4. It was calculated using performance data up to 2 February The risk category is recalculated weekly and for the last seven weeks of the period under review the risk category changed from a category 4 to a category 3. Please note that if the risk category consistently remains as a category 3 for a four month period, the KIID will be amended from a category 4 accordingly. * To 31 March

6 Portfolio Statement as at 31 March 2015 (unaudited) Security Holdings Market Value 000 % of Assets EURO DENOMINATED BONDS (26.62%) 469, Albain Bidco Norway 6.75% 01/11/ ,393,000 21, Ardagh 4.25% 15/01/ ,950,000 8, BMBG Bond Finance FRN 5.071% 15/10/ , Boing Group Financing 6.625% 15/07/ ,050,000 13, Bravida FRN 5.027% 15/06/2019 3,900,000 2, Carlson Wagonlit 7.5% 15/06/2019 8,489,000 6, Cemex 4.75% 11/01/2022 5,050,000 3, Cemex 4.375% 05/03/2023 4,600,000 3, Cemex Finance 5.25% 01/04/2021 7,600,000 5, Cerba European Lab 7% 01/02/ ,514,000 13, Ciech Group Financing 9.5% 30/11/2019 2,695,000 2, Deutsche Raststaetten Gruppe IV 6.75% 30/12/2020 3,900,000 3, eircom Finance 9.25% 15/05/ ,120,000 15, Ence Energia y Celulosa 7.25% 15/02/ ,650,000 16, Financiere Quick FRN 4.821% 15/04/2019 1,550,000 1, Findus Bondco 9.125% 01/07/ ,100,000 10, Galapagos 5.375% 15/06/ ,240,000 10, HomeVi 6.875% 15/08/ ,200,000 15, Ineos Finance FRN 7.25% 15/02/2019 7,000,000 5, Innovia Group Finance FRN 5.027% 31/03/2020 2,600,000 1, InterXion 6% 15/07/2020 5,300,000 4, Kerneos Corporate 5.75% 01/03/2021 1,350,000 1, KraussMaffei 8.75% 15/12/ ,533,000 13, Lecta 8.875% 15/05/ ,070,000 15, Lock 7% 15/08/ ,950,000 28, Monitchem 5.25% 15/06/ ,670,000 12, NH Hotel 6.875% 15/11/ ,375,000 10, Numericable 5.375% 15/05/2022 3,450,000 2, Numericable 5.625% 15/05/ ,050,000 16, Paprec 5.25% 01/04/2022 5,100,000 3, Paroc 6.25% 15/05/ ,370,000 11, Paroc FRN 5.298% 15/05/ ,000,000 7, RPG Byty 6.75% 01/05/ ,720,000 19, Schaeffler Finance 3.25% 15/05/ ,200,000 8, Takko Luxembourg % 15/04/ ,930,000 6, TeamSystem 7.375% 15/05/ ,673,000 20, Telenet Finance 6.75% 15/08/2024 6,618,000 5, Unilabs Subholding 8.5% 15/07/ ,850,000 16, Unitymedia 5.625% 15/04/2023 6,102,000 4, Unitymedia 6.25% 15/01/ ,380,000 28, Unitymedia Hessen 4% 15/01/2025 7,100,000 5, Unitymedia Hessen 3.5% 15/01/2027 4,750,000 3, Verisure 8.75% 01/09/ ,130,000 12, Verisure 8.75% 01/12/2018 5,800,000 4, Wind Acquisition Finance 4% 15/07/2020 (issued 19,900,000 14, /07/2014) Wind Acquisition Finance 4% 15/07/2020 (issued 8,250,000 6, /03/2015) Wind Acquisition Finance FRN 4.071% 15/07/2020 4,700,000 3, WMG Acquisition 6.25% 15/01/ ,047,300 22,

7 Portfolio Statement (continued) as at 31 March 2015 (unaudited) Security Holdings Market Value 000 % of Assets STERLING DENOMINATED BONDS (23.89%) 549, AA Bond 5.5% 31/07/2043 8,150,000 8, Arrow Global Finance 7.875% 01/03/2020 7,600,000 7, Brakes Capital 7.125% 15/12/ ,475,000 39, Brighthouse 7.875% 15/05/ ,810,000 13, Cabot Financial Luxembourg % 01/10/ ,390,000 15, Cabot Financial Luxembourg 8.375% 01/08/2020 1,600,000 1, Cabot Financial Luxembourg 6.5% 01/04/2021 2,650,000 2, Elli Finance UK 8.75% 15/06/ ,750,000 17, Equiniti Newco % 15/12/ ,360,000 10, Findus Bondco 9.5% 01/07/ ,800,000 12, Gala 8.875% 01/09/ ,277,200 38, Galaxy Bidco 6.375% 15/11/ ,125,000 16, Grainger 5% 16/12/2020 6,339,000 6, Hastings Insurance Group Finance 8% 21/10/ ,380,000 26, House of Fraser Funding 8.875% 15/08/ ,135,000 25, HSS Financing 6.75% 01/08/2019 8,653,000 9, Keystone Financing 9.5% 15/10/ ,750,000 15, Lowell Group Financing 5.875% 01/04/2019 8,200,000 7, Lowell Group Financing 10.75% 01/04/ ,600,000 24, Marlin Intermediate 10.5% 01/08/2020 9,150,000 10, Moto Finance 10.25% 15/03/ ,500,000 18, Moto Finance 6.375% 01/09/ ,150,000 12, New Look Bondco I 8.75% 14/05/ ,490,000 36, Pendragon 6.875% 01/05/ ,892,000 17, Premier Foods 6.5% 15/03/ ,475,000 13, Priory Group No 3 7% 15/02/2018 7,373,983 7, R&R Ice Cream 5.5% 15/05/ ,700,000 11, Towergate Finance 8.5% 15/02/2018 3,512,000 3, Towergate Finance FRN % 15/02/2018 3,487,000 3, Travelex Financing 8% 01/08/ ,680,000 35, Twinkle Pizza 6.625% 01/08/ ,436,000 18, Virgin Media Secured Finance 6% 15/04/ ,000,000 10, Vougeot Bidco 7.875% 15/07/ ,920,000 35, Voyage Care Bondco 6.5% 01/08/2018 5,350,000 5, Wagamama Finance 7.875% 01/02/ ,150,000 10, SWEDISH KRONA DENOMINATED BONDS (0.87%) 1, Bravida FRN 5.426% 15/06/ ,250,000 1, SWISS FRANC DENOMINATED BONDS (0.25%) US DOLLAR DENOMINATED BONDS (45.14%) 844, Accuride 9.5% 01/08/ ,907,000 21, Allied Specialty Vehicles 8.5% 01/11/ ,000,000 14, Altice Financing 6.5% 15/01/ ,000,000 10, Altice Financing 6.625% 15/02/2023 5,297,000 3, Appvion 9% 01/06/ ,970,000 7, Associated Asphalt 8.5% 15/02/ ,048,000 7, Berry Plastics 5.5% 15/05/ ,115,000 9, Builders FirstSource 7.625% 01/06/ ,098,000 6, Burger King 6% 01/04/ ,331,000 19, C&S Group Enterprises 5.375% 15/07/ ,225,000 25, Calpine 5.875% 15/01/2024 6,340,000 4, Cemex 5.875% 25/03/2019 4,700,000 3,

8 Portfolio Statement (continued) as at 31 March 2015 (unaudited) Security Holdings Market Value 000 % of Assets Cemex 6.125% 05/05/2025 7,548,000 5, Cemex Finance 9.375% 12/10/2022 7,750,000 5, Cemex Finance 6% 01/04/2024 7,185,000 4, CHC Helicopter 9.25% 15/10/2020 9,422,100 5, Chiquita Brands International 7.875% 01/02/2021 8,768,000 6, Citgo Holding 10.75% 15/02/ ,001,000 10, CITGO Petroleum 6.25% 15/08/ ,625,000 11, Commercial Vehicle 7.875% 15/04/ ,935,000 12, Community Health Systems 5.125% 01/08/2021 4,357,000 3, CTP 8.25% 15/12/ ,677,000 17, Drill Rigs 6.5% 01/10/2017 5,420,000 2, Essar Steel Algoma 9.5% 15/11/2019 8,388,000 4, FCA 8% 15/06/2019 7,480,000 5, FCA 8.25% 15/06/2021 3,480,000 2, First Data 7.375% 15/06/2019 9,500,000 6, First Data 8.875% 15/08/ ,000,000 8, First Data 6.75% 01/11/ ,374,000 8, Florida East Coast 6.75% 01/05/ ,505,000 9, Forestar USA Real Estate 8.5% 01/06/2022 6,310,000 4, GenCorp 7.125% 15/03/2021 4,917,000 3, GRD Holdings III 10.75% 01/06/ ,442,000 17, HCA 6.5% 15/02/ ,490,000 8, HCA 5.25% 15/04/ ,209,000 14, HD Supply 5.25% 15/12/2021 5,573,000 3, Headwaters 7.625% 01/04/ ,165,000 15, Hexion US Finance 6.625% 15/04/ ,500,000 7, HJ Heinz 4.875% 15/02/ ,616,000 17, Hughes Satellite Systems 6.5% 15/06/ ,790,000 8, Ineos Finance 7.5% 01/05/2020 1,360, International Automotive Components 9.125% 29,728,000 20, /06/2018 International Wire 8.5% 15/10/ ,808,000 17, Jurassic Holdings III 6.875% 15/02/ ,835,000 6, K Hovnanian Enterprises 7.25% 15/10/2020 9,020,000 6, KCA Deutag UK Finance 7.25% 15/05/ ,100,000 13, KeHE Distributors 7.625% 15/08/ ,055,000 8, Kissner Milling 7.25% 01/06/ ,000,000 15, Kosmos Energy 7.875% 01/08/ ,388,000 8, LSB Industries 7.75% 01/08/ ,345,000 8, Mcron Finance 8.375% 15/05/ ,801,000 10, Millennium Offshore Services Superholdings 9.5% 20,500,000 12, /02/2018 Murray Energy 9.5% 05/12/ ,473,000 8, Murray Energy 8.625% 15/06/ ,858,000 9, New Look Bondco I 8.375% 14/05/ ,800,000 9, Northern Tier Energy 7.125% 15/11/ ,514,000 16, Numericable 4.875% 15/05/2019 9,130,000 6, Numericable 6% 15/05/2022 8,285,000 5, Numericable 6.25% 15/05/2024 4,475,000 3, Palace Entertainment 8.875% 15/04/ ,350,000 9, PaperWorks Industries 9.5% 15/08/ ,053,000 10, Pinnacle Operating 9% 15/11/ ,000,000 20, Prospect Medical 8.375% 01/05/ ,800,000 25, Quality Distribution 9.875% 01/11/2018 8,689,000 6,

9 Portfolio Statement (continued) as at 31 March 2015 (unaudited) Security Holdings Market Value 000 % of Assets Rentech Nitrogen 6.5% 15/04/ ,940,000 10, Reynolds Group Issuer 5.75% 15/10/2020 5,000,000 3, Reynolds Group Issuer 6.875% 15/02/ ,000,000 7, Sabine Pass Liquefaction 5.625% 01/02/2021 9,190,000 6, Sabine Pass Liquefaction 5.625% 15/04/ ,531,000 11, Sabine Pass Liquefaction 5.75% 15/05/ ,120,000 7, Sabine Pass Liquefaction 5.625% 01/03/ ,000,000 10, Sabre GLBL 8.5% 15/05/2019 9,600,000 6, Safway 7% 15/05/ ,160,000 8, Shelf Drilling 8.625% 01/11/ ,530,000 17, Simmons Foods 7.875% 01/10/ ,000,000 7, Tekni-Plex 9.75% 01/06/2019 3,738,000 2, Tenet Healthcare 6.25% 01/11/ ,000,000 10, Tenet Healthcare 6% 01/10/2020 8,115,000 5, Tenet Healthcare 4.5% 01/04/2021 7,000,000 4, Titan International 6.875% 01/10/ ,625,000 6, TPC 8.75% 15/12/ ,205,000 23, United Rentals North America 4.625% 15/07/ ,237,000 15, Univision Communications 7.875% 01/11/2020 4,510,000 3, Univision Communications 5.125% 15/05/2023 6,142,000 4, Univision Communications 5.125% 15/02/2025 6,290,000 4, UPCB Finance V 7.25% 15/11/2021 2,000,000 1, VTR Finance 6.875% 15/01/2024 3, Welltec 8% 01/02/ ,106,000 20, Wind Acquisition Finance 6.5% 30/04/2020 3,000,000 2, Wind Acquisition Finance 4.75% 15/07/ ,165,000 8, Wise Metals 8.75% 15/12/2018 4,995,000 3, WMG Acquisition 6% 15/01/2021 4,320,000 2, WMG Acquisition 5.625% 15/04/2022 1,000, DERIVATIVES (-0.56%) (5,678) (0.29) Forward Currency Contracts Bought EUR9,517,950 for GBP6,816,613 Settlement 17/06/ Bought EUR8,000,000 for GBP5,767,432 Settlement 17/06/ Bought EUR1,000,000 for GBP751,787 Settlement 20/04/2015 (26) - Bought EUR2,000,000 for GBP1,487,724 Settlement 20/04/2015 (36) - Bought EUR5,000,000 for GBP3,721,566 Settlement 18/05/2015 (89) - Bought EUR6,000,000 for GBP4,482,500 Settlement 20/04/2015 (126) (0.01) Bought EUR5,000,000 for GBP3,761,580 Settlement 20/04/2015 (131) (0.01) Bought EUR6,400,000 for GBP4,879,004 Settlement 20/04/2015 (232) (0.01) Sold EUR210,824,250 for GBP163,703,069 Settlement 20/04/ , Sold EUR213,585,374 for GBP158,612,835 Settlement 18/05/2015 3, Sold EUR11,230,000 for GBP8,716,344 Settlement 20/04/ Sold EUR18,000,000 for GBP13,215,346 Settlement 18/05/ Sold EUR8,400,000 for GBP6,199,907 Settlement 17/06/ Sold EUR7,600,000 for GBP5,585,901 Settlement 18/05/ Sold EUR5,100,000 for GBP3,764,752 Settlement 17/06/ Sold EUR1,350,000 for GBP1,030,388 Settlement 20/04/ Sold EUR1,250,000 for GBP927,061 Settlement 20/04/ Sold EUR4,300,000 for GBP3,133,154 Settlement 18/05/ Sold EUR3,800,000 for GBP2,768,959 Settlement 18/05/ Sold EUR100,000 for GBP73,675 Settlement 18/05/ Sold EUR4,750,000 for GBP3,418,722 Settlement 18/05/2015 (32) - Sold EUR200,991,414 for GBP143,427,694 Settlement 17/06/2015 (2,678) (0.14) 8

10 Portfolio Statement (continued) as at 31 March 2015 (unaudited) Security Market Value 000 % of Assets Bought SEK154,387,527 for GBP11,950,144 Settlement 18/05/ Bought SEK2,394,550 for GBP186,670 Settlement 17/06/ Bought SEK356,000 for GBP27,917 Settlement 17/06/ Sold SEK182,753,956 for GBP14,933,075 Settlement 20/04/ Bought USD14,300,000 for GBP9,440,540 Settlement 20/04/ Bought USD7,700,000 for GBP5,000,036 Settlement 18/05/ Bought USD7,000,000 for GBP4,537,935 Settlement 18/05/ Bought USD11,000,000 for GBP7,320,659 Settlement 20/04/ Bought USD5,000,000 for GBP3,289,469 Settlement 20/04/ Bought USD2,000,000 for GBP1,311,429 Settlement 20/04/ Bought USD3,000,000 for GBP2,023,587 Settlement 17/06/ Bought USD1,200,000 for GBP815,321 Settlement 17/06/2015 (4) - Bought USD28,327,905 for GBP19,157,808 Settlement 17/06/2015 (8) - Bought USD4,000,000 for GBP2,716,571 Settlement 17/06/2015 (13) - Sold USD4,000,000 for GBP2,656,959 Settlement 20/04/2015 (46) - Sold USD19,000,000 for GBP12,790,935 Settlement 17/06/2015 (53) - Sold USD2,930,000 for GBP1,926,625 Settlement 20/04/2015 (53) - Sold USD3,320,000 for GBP2,187,901 Settlement 20/04/2015 (56) - Sold USD5,258,200 for GBP3,450,009 Settlement 20/04/2015 (103) (0.01) Sold USD10,000,000 for GBP6,558,147 Settlement 20/04/2015 (199) (0.01) Sold USD16,100,000 for GBP10,603,141 Settlement 20/04/2015 (276) (0.01) Sold USD15,000,000 for GBP9,719,445 Settlement 18/05/2015 (419) (0.02) Sold USD541,967,393 for GBP363,882,816 Settlement 17/06/2015 (2,492) (0.13) Sold USD246,179,803 for GBP160,058,335 Settlement 18/05/2015 (6,327) (0.33) Sold USD498,548,045 for GBP327,725,987 Settlement 20/04/2015 (9,162) (0.48) Investment assets^ 1,860, Total other assets (net) 52, assets 1,913, Comparative figures shown in brackets relate to 30 September All investments are approved securities as defined in the Collective Investment Schemes sourcebook unless otherwise stated. Derivative contracts were traded on an eligible derivatives exchange. ^ Including investment liabilities of ( 22,561k). Summary of Investment Assets by Credit Ratings Rating Block Investment grade 23, Speculative grade 1,815, Unrated 26, Total bonds 1,866, Other 46, assets 1,913,

11 Material Portfolio Changes Cost Purchases 000 Unitymedia 6.25% 15/01/ ,440 HJ Heinz 4.875% 15/02/ ,729 United Rentals North America 4.625% 15/07/ ,838 Hastings Insurance Group Finance 8% 21/10/ ,959 HCA 5.25% 15/04/ ,000 Moto Finance 6.375% 01/09/ ,261 Gala 8.875% 01/09/ ,566 R&R Ice Cream 5.5% 15/05/ ,498 WMG Acquisition 6.25% 15/01/ ,416 New Look Bondco I 8.75% 14/05/ ,130 Proceeds Sales 000 Chiquita Brands International 7.875% 01/02/ ,154 CET 21 9% 01/11/ ,187 Guitar Center 6.5% 15/04/ ,752 Cornerstone Chemical 9.375% 15/03/ ,166 Norcell Sweden % 29/09/ ,721 VTR Finance 6.875% 15/01/ ,927 Felcor Lodging 6.75% 01/06/2019 9,226 Loxam 4.875% 23/07/2021 8,887 Westmoreland 10.75% 01/02/2018 8,482 KION Finance 6.75% 15/02/2020 8,086 10

12 Statement of Total Return for the period ended 31 March 2015 (unaudited) Income capital (losses)/gains Revenue Expenses Finance costs: Interest revenue before taxation Taxation* revenue after taxation Total return before distributions Finance costs: Distributions* Change in net assets attributable to unitholders from investment activities 01/10/14 to 31/03/15 01/10/13 to 30/04/ (11,646) 40,845 64,254 51,457 (13,514) (10,786) (2) (19) 50,738 40, ,738 40,652 39,092 81,497 (63,519) (50,846) (24,427) 30,651 Statement of Change in Assets Attributable to Unitholders for the period ended 31 March 2015 (unaudited) 01/10/14 to 31/03/15 01/10/13 to 30/04/ Opening net assets attributable to unitholders 1,724,431 1,330,406 Movement due to creation and cancellation of units: Amounts receivable on creation of units 307, ,994 Amounts payable on cancellation of units (145,919) (46,685) Dilution levy charged Change in net assets attributable to unitholders from investment activities (see above) Retained distribution on accumulation units 161, , (24,427) 30,651 50,389 38,800 Closing net assets attributable to unitholders 1,913,089 1,550,307 * Prior year comparatives have been restated. Comparative information is provided for the Statement of Change in Assets Attributable to Unitholders. Since this information is for the prior interim period, the net assets at the end of that period do not correspond to the net assets at the start of the current period. The prices per unit as at 31 March 2015 (unaudited) were: Income units Accumulation units Gross Income units Gross Accumulation units Bid Offer p p

13 Balance Sheet as at 31 March 2015 (unaudited) Assets Investment assets Debtors Cash and bank balances for the period ended 31 March 2015 (unaudited) 31/03/15 30/09/ ,883,008 1,683,695 44,259 42,328 38,442 66,807 Total other assets 82, ,135 Total assets 1,965,709 1,792,830 Liabilities Investment liabilities (22,561) (24,702) Creditors (26,618) (41,914) Bank overdraft (989) - Distribution payable on income units (2,452) (1,783) Total other liabilities (30,059) (43,697) Total liabilities (52,620) (68,399) assets attributable to unitholders 1,913,089 1,724,431 Accounting and Distribution policies Basis of accounting The interim financial statements have been prepared on the same basis as the audited annual financial statements for the year ended 30 September They have been prepared under the historical cost basis, as modified by the revaluation of investments, and in accordance with the Statement of Recommended Practice (SORP) for Financial Statements of Authorised Funds issued by the Investment Association (previously IMA) in October 2010 (IMA SORP 2010). Directors' Certificate This report is certified in accordance with the requirements of the rules in the Financial Conduct Authority's Collective Investment Schemes Sourcebook. Directors A. M. Croft D. J. Lamb London 29 May

14 Distribution Tables Distributions in pence per unit Group 1 First interim Units purchased prior to 1 October 2014 Second interim Units purchased prior to 1 January 2015 Group 2 First interim Units purchased on or after 1 October 2014 to 31 December 2014 Second interim Units purchased on or after 1 January 2015 to 31 March 2015 Income Gross revenue Income tax revenue Equalisation Distributions paid to/ payable 30/06/15 Distributions paid to 30/06/14 Group 1 (p) (p) (p) (p) (p) (p) First interim Second interim Group 2 (p) (p) (p) (p) (p) (p) First interim Second interim Accumulation Gross revenue Income tax revenue Equalisation Distributions paid to/ payable 30/06/15 Distributions paid to 30/06/14 Group 1 (p) (p) (p) (p) (p) (p) First interim Second interim Group 2 (p) (p) (p) (p) (p) (p) First interim Second interim Gross Income Gross revenue Income tax revenue Equalisation Distributions paid to/ payable 30/06/15 Group 1 (p) (p) (p) (p) (p) First interim Second interim Group 2 (p) (p) (p) (p) (p) First interim Second interim Gross Accumulation Gross revenue Income tax revenue Equalisation Distributions paid to/ payable 30/06/15 Group 1 (p) (p) (p) (p) (p) First interim Second interim Group 2 (p) (p) (p) (p) (p) First interim Second interim

15 General Information The Trust St. James's Place International Corporate Bond Unit Trust is an authorised Unit Trust scheme under section 243 of the Financial Services and Markets Act (2000) and is constituted by a Trust Deed dated 22 March The Unit Trust is subject to the rules of the Financial Conduct Authority's Collective Investment Scheme Sourcebook and is classified as a UCITS Scheme. The Trust Manager The Manager of the Trust is St. James's Place Unit Trust Group Limited which is a member of the Investment Association and is authorised and regulated by the Financial Conduct Authority. Investment Objectives The investment objective of the Scheme is to provide a combination of income generation and capital appreciation. To achieve this, the Scheme will invest principally in a portfolio of senior secured high yield corporate debt instruments*, primarily issued by North American and European companies. The Scheme may also invest in any other geographic area. The Scheme is also permitted to invest in other types of transferable securities, money market instruments, cash and near cash, units and/or shares in collective investment schemes and deposits. The Scheme is permitted to invest in derivative and forward transactions for the purposes of efficient portfolio management (including hedging). *Corporate debt instruments are either secured or unsecured, and, either senior or subordinated. Secured debt means that collateral has been pledged as security against default, whilst investors in senior debt instruments are legally entitled to be repaid ahead of investors in subordinated (i.e. non-senior) instruments issued by the same corporation. Senior secured debt instruments therefore carry a lower risk of loss than other debt instruments issued by the same corporation. The term high yield means that the corporate debt instruments have received a credit rating below investment grade, which is equivalent to or lower than a "BBB minus" from the ratings agency Standard & Poor's. It is the Manager's intention that the assets of the Unit Trust will be invested so that the Unit Trust will be eligible for inclusion in an ISA. Non-Resident Unitholders - European Union Savings Directive Unitholders resident in most European Union countries (not UK) should be aware that the Trust is covered by the European Union Savings Directive. The Manager is required to identify and report your distribution and repurchase transactions to the UK tax authorities, who are in turn required to pass this information to most other EU national tax authorities. Efficient Portfolio Management The efficient portfolio management techniques permitted in the fund as at 31 March 2015 comprise of: Technique Counterparty Exposure ( ) Currency HSBC Bank USA 51,938,824 Forwards Morgan Stanley Capital Services 1,450,987,697 The revenues in the period were nil with no collateral placed or received. 14

16 General Information (continued) Unit Dealings Dealings on the Trust take place on a daily basis. Purchase or sale instructions can be made by telephone or in writing to St. James's Place Unit Trust Group Limited, PO Box 9034, Chelmsford, CM99 2XA, United Kingdom, freephone: The Manager adopts a policy of forward pricing, i.e. the order will be transacted on the dealing day following receipt of the client's instructions, or if received before noon, on that dealing day. In the case of telephone purchases of units from the Manager, settlement must be by return of post after receipt of the contract note. In the case of telephone redemptions, the proceeds will not become payable until the receipt at the Administration Centre of a written request. A contract note confirming the subscription or redemption price and the number of units involved will be forwarded, together with a cancellation notice, where appropriate, on the next business day. The most recent issue and redemption prices will be published on the Manager's website: and are available by calling the Administration Centre on Minimum Investment The minimum lump sum investment is 1,500, thereafter the minimum additional investment is 1,000. The minimum monthly investment is 150 and the minimum monthly increment is 50. The minimum annual investment is 1,500 and the minimum annual increment is 500. Gross Unit Classes On 6 October 2014 the Manager launched gross income and accumulation unit classes in the Scheme. Gross income units and gross accumulation units are only available for investments held within an ISA. Management Charges The Trust Deed permits the following management charges which are receivable by the Manager: (a) A Preliminary Charge of 5 per cent which is included in the offer price of the Units. (b) An Annual Management Charge at a rate of 1 per cent of the value of the Trust. Income Distributions Income distributions are made quarterly on or before the 31 March, 30 June, 30 September and 31 December. Accumulation Distributions Revenue due to accumulation unitholders is reflected in the price of their units. Tax Vouchers Income unitholders that receive income distributions by direct credit and accumulation unitholders (where the distribution income is reinvested) receive an annual consolidated tax voucher in May with all the relevant payment and tax information required to complete a tax return. Tax vouchers will be enclosed if income unitholders receive payment by cheque. Report A report is sent semi-annually to all unitholders on or before 31 May and 30 November. Capital Gains Tax The Trust is not liable to tax on capital gains and any individual holding units will not be liable to capital gains tax unless the total chargeable gains for the tax year 2015/2016 exceed 11,100 (2014/ ,000). To calculate capital gains on accumulation units, the total amount of reinvested net revenue (shown on the annual tax credit vouchers) should be added to the base cost of the units purchased. Unitholders should consult their professional advisers for any advice regarding their tax position. 15

17 St. James s Place Unit Trust Group Ltd is authorised and regulated by the Financial Conduct Authority. St. James s Place Unit Trust Group Ltd Registered Office: St. James s Place House, 1 Tetbury Road, Cirencester, Gloucestershire, GL7 1FP, United Kingdom. Registered in England Number Perivan Financial Print International Corporate Bond (5/15)