ASIA PACIFIC UNIT TRUST

Transcription

1 ASIA PACIFIC UNIT TRUST FOR THE PERIOD ENDED 30 SEPTEMBER 2018

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 A. M. Croft I. S. Gascoigne C. G. Gentle D. J. Lamb Investment Adviser First State Investments (Hong Kong) Limited Level 25, One Exchange Square Central Hong Kong (Authorised and regulated by the Securities & Futures Commission) Trustee National Westminster Bank Plc 250 Bishopsgate London, EC2M 4AA United Kingdom As part of an internal reorganisation, trustee and depositary services provided to the St. James s Place range of authorised unit trusts by National Westminster Bank plc will be transferred to the newly established NatWest Trustee and Depositary Services Limited. The change is scheduled to be completed by the end of December (Authorised and regulated by the Financial Conduct Authority) Registrar DST Financial Services Europe Limited DST House St. Nicholas Lane Basildon, SS15 5FS United Kingdom (Authorised and regulated by the Financial Conduct Authority) Independent Auditors PricewaterhouseCoopers LLP Atria One 144 Morrison Street Edinburgh, EH3 8EX United Kingdom Prospectus and Manager's Reports Copies of the up to date Prospectus (Scheme Particulars) and latest Manager's Report and Financial Statements for the range of St. James's Place Unit Trusts can be requested from a member of the St. James's Place Partnership or, at any time during normal business hours, from the Administration Centre at PO Box 9034, Chelmsford CM99 2XA. Freephone:

3 Report of the Manager The Report of the Manager consists of The Trust, Investment Objectives & Policy, The Trust's Performance, Risk and Reward Profile, Investment Adviser's Comments and Portfolio Statement. The Trust is an authorised Unit Trust scheme under section 243 of the Financial Services and Markets Act (2000) and is constituted by a Trust Deed dated 6 December The Unit Trust is subject to the rules of the Financial Conduct Authority's Collective Investment Scheme Sourcebook and is classified as a UCITS Scheme. Investment Objectives & Policy The investment objective of the Scheme is to achieve long-term capital appreciation. The Scheme aims to achieve this objective by predominantly investing into the equities of companies exposed to the Asia Pacific. This includes companies based outside of the region who derive an economic benefit from countries in the Asia Pacific. The Scheme is intended to be invested with only limited or no exposure to equities issued by companies in Japan. The Scheme is also permitted to invest in other types of transferable securities, units and/or shares in collective investment schemes, money market instruments and deposits. The Scheme is permitted to invest in derivatives for investment purposes (although it is anticipated this will be limited and/or infrequent use) and for the purposes of efficient portfolio management (including hedging). It is the Manager's intention that the assets of the Unit Trust will be invested so that the Unit Trust will be eligible for inclusion in an ISA. The Trust's Performance The performance of the Trust since its launch in January 1992, over the five year period since September 2013 and over the period under review is shown below. L Income units (offer to offer) L Accumulation units (offer to offer) H Accumulation units (offer to offer)* Y Accumulation units (offer to offer)* Source: Lipper for Fund returns 01/01/92 to 30/09/13 to 31/03/18 to 30/09/18 30/09/18 30/09/18 % change % change % change * Class H Accumulation and Y Accumulation units were made available on 1 December 2016 and the performance shown is from that date. REMEMBER THAT THE PRICE OF UNITS AND REVENUE FROM THEM MAY GO DOWN AS WELL AS UP. PLEASE BE AWARE THAT PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE PERFORMANCE. 2

4 Report of the Manager (continued) Risk and Reward Profile The synthetic risk and reward indicator for the St. James s Place Asia Pacific Unit Trust, as disclosed in its most recent Key Investor Information Document (KIID), is a 6. It was calculated using indicative performance data for the type of investments held following changes to the Scheme which took place on 10 October Investment Adviser's Comments Asia Pacific stocks (ex-japan) gained in sterling terms over the six-month period to the end of September Australia was the best-performing market, driven higher by the energy sector, as oil prices gained. Taiwan outperformed due to robust earnings from semiconductor companies. China was weak, as investor sentiment was buffeted by trade war concerns, while Indonesia declined as foreign investors sold down the market. The US-China trade conflict was the main focus of investor concerns over the period. Negotiations between the two countries failed to avert import tariffs on a wide range of goods, raising fears of a slowdown in the global economy. The portfolio outperformed the broader Asian equity market. Key contributors to performance included CSL, which saw accelerating demand for its core immunoglobulin products. also outperformed, on the back of solid sales growth and positive operating leverage. On the negative side, AAC Technologies softened on concerns around weaker shipment expectations for the Apple iphone and Ramsay Health Care slumped after it lowered its earnings guidance for 2018 operating conditions for the health care provider are expected to remain challenging in its home market of Australia, as well as in the UK. Key purchases included Techtronic, a leading power tools manufacturer in North America. Since listing in 1991, the company has delivered a strong track record in earnings growth and profits and has continued to expand into new markets and product categories. The fund also purchased Shin-Etsu Chemical, a high quality, yet low cost manufacturer of PVC, wafers and silicon products. Management have executed well; and the company is globally competitive. Shin-Etsu has a conservative balance sheet and net cash, which has helped in down-cycles. Koito Manufacturing was divested as the risk/reward no longer looked attractive on valuations and MEIJI Holdings was sold on concerns around a slowdown in its core businesses. We remain cautious in our outlook for Asian equities. Rising US interest rates and the pressure on emerging market currencies have triggered interest rate hikes in a number of Asian markets, which could pose considerable risk for companies that have over-leveraged. Debt levels cannot continue to rise forever, but this will perhaps not become obvious until interest rates normalise. Asian companies earnings growth estimates have begun to taper on fears of a deterioration in the global economy; the trade war between the US and China finally began, with import tariffs on goods from both sides. Despite the gloomy forecasts, we believe there are still pockets of opportunity for the stock picker. Our research is focused on identifying dominant franchises that can deliver sustainable and predictable returns over the long term. Many of our portfolio companies benefit from secular growth drivers which could prove to be less correlated to macroeconomic cycles and relatively defensive in the event of a downturn. First State Investments (Hong Kong) Limited 12 October

5 Comparative Table as at 30 September 2018 (unaudited) Net Asset Value and Ongoing Charges Figure 30/09/18 31/03/18 31/03/17 L Income Closing net asset value ( 000) 14,484 13,669 12,593 Closing number of units 2,521,027 2,498,980 2,415,950 Closing net asset value per unit (p) Operating charges* 1.96% 1.95% 1.68% 30/09/18 31/03/18 31/03/17 L Accumulation Closing net asset value ( 000) 2,192,012 1,981,527 1,748,954 Closing number of units 320,340, ,168, ,705,021 Closing net asset value per unit (p) Operating charges* 1.96% 1.95% 1.68% 30/09/18 31/03/18 31/03/17 H Accumulation Closing net asset value ( 000) Closing number of units 50,816 46,356 1,765 Closing net asset value per unit (p) Operating charges* 2.46% 2.45% 2.43% 30/09/18 31/03/18 31/03/17 Y Accumulation Closing net asset value ( 000) 5,269 4, Closing number of units 760, ,421 3,327 Closing net asset value per unit (p) Operating charges* 1.26% 1.25% 1.20% H Accumulation and Y Accumulation units were made available on 1 December *Operating charges are prepared using the same methodology as the ongoing charges appearing in the KIID, based on the information in this report. 4

6 Portfolio Statement as at 30 September 2018 (unaudited) Security Holdings Market Value 000 % of Net Assets AUSTRALIA (11.91%) 282, Brambles 10,203,811 61, CSL 888,844 98, Newcrest Mining 5,623,393 60, Ramsay Health Care 2,043,852 62, BERMUDA (2.40%) 51, Hongkong Land 3,501,900 17, Jardine Matheson 704,755 33, CAYMAN ISLANDS (5.83%) 133, AAC Technologies 4,257,000 33, CK Hutchison 3,520,500 31, Ctrip.com International ADR 1,019,300 29, ENN Energy 5,758,900 38, CHINA (6.37%) 137, China Mengniu Dairy 21,195,000 53, Midea 6,501,991 29, Shanghai International Airport 5,667,095 37, Yunnan Baiyao 2,237,110 17, HONG KONG (9.39%) 196, AIA 9,000,400 61, Henderson Land Development 8,303,240 31, Hong Kong & China Gas 32,946,500 50, Swire Pacific 2,728,000 22, Techtronic Industries 6,145,500 30, INDIA (17.28%) 374, Bharti Airtel 5,146,678 18, Godrej Consumer Products 3,930,832 32, HDFC Bank 3,982,968 84, Hindustan Unilever 1,606,220 27, Housing Development Finance 3,852,400 71, Kotak Mahindra Bank 7,232,583 86, Nestle India 303,675 31, State Bank of India 774,278 2, State Bank of India GDR 720,105 20, INDONESIA (2.61%) 62, Astra International 68,887,200 26, Bank Central Asia 29,634,300 36, JAPAN (11.33%) 236, Fast Retailing 78,900 30, Keyence 105,900 47, MISUMI 1,611,500 31, Nippon Paint 1,038,700 29, Ryohin Keikaku 116,500 26, Shin-Etsu Chemical 225,900 15, Tsuruha 248,500 23, Unicharm 1,232,600 31, MALAYSIA (1.39%) 29, Public Bank 6,316,100 29, PHILIPPINES (1.20%) 13, SM Investments 1,067,240 13,

7 Portfolio Statement as at 30 September 2018 (unaudited) Security Holdings Market Value 000 (continued) % of Net Assets SINGAPORE (6.83%) 147, DBS 2,940,130 42, Oversea-Chinese Banking 10,981,095 70, Singapore Telecommunications 18,684,700 33, SOUTH KOREA (5.73%) 131, LG Chem 175,855 44, LG Household & Health Care 54,892 48, NAVER 79,389 39, TAIWAN (8.98%) 206, Delta Electronics 12,800,000 41, Largan Precision 95,000 8, Taiwan Semiconductor Manufacturing 17,032, , Uni-President Enterprises 22,021,000 44, THAILAND (2.58%) 66, Kasikornbank 12,955,100 66, UNITED STATES (2.08%) 64, Cognizant Technology Solutions 187,363 11, ResMed 6,063,147 53, Investment Assets 2,134, Total other assets (net) 77, Net assets 2,212, Comparative figures shown in brackets relate to 31 March All investments held are listed, unless otherwise stated. Stocks shown as ADRs and GDRs represent American Depositary Receipts and Global Depositary Receipts. 6

8 Material Portfolio Changes Cost Purchases 000 Shanghai International Airport 38,650 Midea 33,863 Ramsay Health Care 31,463 Techtronic Industries 28,528 Yunnan Baiyao 24,506 Housing Development Finance 19,892 ENN Energy 16,673 DBS 16,635 AAC Technologies 15,986 Shin-Etsu Chemical 15,543 Proceeds Sales 000 Midea 46,698 Koito Manufacturing 34,554 Shanghai International Airport 34,111 CSL 29,850 Link REIT# 27,985 MEIJI 18,296 Bajaj Auto 13,458 Hong Kong & China Gas 12,363 Nestle India 11,190 Hindustan Unilever 10,736 # Real Estate Investment Trust (REIT). 7

9 Statement of Total Return for the period 01 April 2018 to 30 September 2018 (unaudited) Income Net capital gains Revenue Expenses Interest payable and similar charges Net revenue before taxation Taxation Net revenue after taxation Total return before equalisation Equalisation Change in net assets attributable to unitholders from investment activities 01/04/18 to 30/09/18 01/04/17 to 30/09/ ,471 30,861 30,440 26,625 (21,344) (17,836) - - 9,096 8,789 (2,220) (1,976) 6,876 6, ,347 37, ,467 37,770 Statement of Change in Net Assets Attributable to Unitholders for the period 01 April 2018 to 30 September 2018 (unaudited) 01/04/18 to 30/09/18 01/04/17 to 30/09/ Opening net assets attributable to unitholders 2,000,010 1,761,579 Movement due to creation and cancellation of units: Amounts receivable on creation of units 117,885 70,444 Amounts payable on cancellation of units (6,252) (21,011) 111,633 49,433 Change in net assets attributable to unitholders from investment activities (see above) 100,467 37,770 Closing net assets attributable to unitholders 2,212,110 1,848,782 Comparative information is provided for the Statement of Change in Net Assets Attributable to Unitholders. Since this information is for the prior interim period, the net assets at the end of that period do not correspond to the net assets at the start of the current period. 8

10 Balance Sheet as at 30 September 2018 (unaudited) Assets Investments Current assets Debtors Cash and bank balances Total assets Liabilities Creditors Other creditors Total liabilities Net assets attributable to unitholders 30/09/18 31/03/ ,134,942 1,918,244 5,385 12,608 83, ,174 2,223,328 2,032,026 (11,218) (32,016) (11,218) (32,016) 2,212,110 2,000,010 Accounting and Distribution policies for the period 01 April 2018 to 30 September 2018 (unaudited) Basis of accounting The Financial Statements have been prepared under the historical cost basis, as modified by the revaluation of investments, in compliance with the Financial Conduct Authority's Collective Investment Schemes Sourcebook. They have been prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 (The Financial Reporting Standard applicable in the UK and Republic of Ireland FRS 102) and in accordance with the Statement of Recommended Practice (SORP) for Financial Statements of Authorised Funds issued by the Investment Management Association May 2014 (IMA SORP 2014). The financial statements are prepared on the going concern basis. Directors of the Managers' Certificate This report is certified in accordance with the requirements of the rules in the Financial Conduct Authority's Collective Investment Schemes Sourcebook. C. G. Gentle D. J. Lamb London 29 November

11 General Information Unit Dealings Dealings on the Trust take place on a daily basis. Purchase or sale instructions can be made by telephone or in writing to St. James's Place Unit Trust Group Limited, PO Box 9034, Chelmsford, CM99 2XA, United Kingdom, freephone: The Manager adopts a policy of forward pricing, i.e. the order will be transacted on the dealing day following receipt of the client's instructions, or if received before noon, on that dealing day. In the case of telephone purchases of units from the Manager, settlement must be by return of post after receipt of the contract note. In the case of telephone redemptions, the proceeds will not become payable until the receipt at the Administration Centre of a written request. A contract note confirming the subscription or redemption price and the number of units involved will be forwarded, together with a cancellation notice, where appropriate, on the next business day. The most recent issue and redemption prices for Class H and Class L Units will be published on the Manager s website: Prices for all Units are available by calling the Administration Centre on Minimum Investment Class H and Class L - 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. After any withdrawal the minimum holding value is 500. Class Y The minimum lump sum investment is 10,000,000 thereafter the minimum additional investment is 10,000. After any withdrawal the minimum holding value is 1,000,000. Please note further investment restrictions also apply to Class H and Class Y Units as detailed in the Prospectus. Management Charges The Trust Deed permits the following management charges which are receivable by the Manager: (a) A Preliminary Charge of 5 per cent which is included in the offer price of the Units. For Class Y units the Preliminary Charge is 0 per cent. (b) An Annual Management Charge at a rate of 1.36 per cent for both Class L Income and Class L Accumulation; 1.86 per cent for Class H Accumulation, and 0.66 per cent for Class Y Accumulation of the value of the Trust. Income Distributions Income distributions are made annually on or before the 31 May. Accumulation Distributions Revenue due to accumulation unitholders is reflected in the price of their units. Tax Certificates Income unitholders that receive income distributions by direct credit and accumulation unitholders (where the distribution income is reinvested) receive an annual consolidated tax voucher in May with all the relevant payment and tax information required to complete a tax return. Tax certificates will be enclosed if income unitholders receive payment by cheque. Capital Gains Tax The Trust is not liable to tax on capital gains and any individual holding units will not be liable to capital gains tax unless the total chargeable gains for the tax year 2018/2019 exceed 11,700 (2017/ ,300). 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. 10

12 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 Asia Pacific (11/18)