Standard Life Strategic Investment Allocation Fund Annual Report & Financial Statements for the year ended 31 January 2011

Transcription

1 Standard Life Strategic Investment Allocation Fund Annual Report & Financial Statements for the year ended 31 January 2011

2 Contents Trust Profile* 1 Trust Information* 1 Statement of Manager s Responsibilities 2 Manager s Statement* 2 Statement of Trustee s Responsibilities 3 Report of the Trustee 3 Independent Auditors Report 4 The Registrar of the Trust 5 Investment Report* 6 Comparative Tables 8 Financial Statements 9 Portfolio Statement* 10 Notes to the Financial Statements 16 Distribution Table 23 *These items comprise the Manager s Report for the purposes of the rules contained in the Collective Investment Schemes sourcebook ( the Regulations ).

3 Standard Life Strategic Investment Allocation Fund ( the Trust ) Trust Profile Launch Date 10 September 2007 Objective The objective of the Trust is to provide investors who are invested in a range of asset classes, primarily global equities, with a means of diversifying their asset class exposure to generate the potential for capital growth primarily in falling and flat market conditions. Policy The current policy of the Trust is to invest in a global portfolio predominantly through the use of cash and permitted derivative contracts (including futures, options, swaps, forward currency contracts and other derivatives). The Trust may, subject to and in accordance with the FSA Rules, take long and covered short positions in markets, securities and groups of securities through derivative contracts. The Trust may also invest, at the Investment Adviser s discretion, in other transferable securities, other derivatives and forward contracts, and units in collective investment schemes (and use may also be made of borrowing, hedging and other techniques permitted by the FSA Rules). Risk Profile The price of stocks, shares and other securities on financial markets can move unpredictably. Many factors affect prices, including announcements by the issuer of a security, economic and political events and views of prospective events. Investment in the Trust should be regarded as medium to long-term. There is no guarantee that the objective of the Trust will be achieved. Reporting dates Interim Annual 31 July 31 January XD date Annual 31 January Payment date Annual 31 January Trust Information Manager SLTM Limited 1 George Street Edinburgh EH2 2LL Tel: Directors of the Manager D.T. Cumming R.L. Paris N.K. Skeoch C.R. Walklin was appointed as a Director of the Manager on 15 November A.P. Watt retired from the Board of Directors with effect from 15 November Candidates for his replacement are in the process of being considered. Interim Chief Executive of the Manager R.L. Paris Secretary of the Manager D.J. Burns was appointed Secretary of the Manager on 1 August V.J. O Brien resigned as Secretary of the Manager on 1 August Trustee* Citibank International plc Citigroup Centre Canada Square Canary Wharf London E14 5LB *J.P. Morgan Trustee and Depositary Company Limited retired as Trustee on 30 June 2010, and was replaced by Citibank International plc. The FSA have approved this change. Auditors PricewaterhouseCoopers LLP Erskine House Queen Street Edinburgh EH2 4NH Registrar The Bank of New York Mellon (International) Limited One Canada Square London E14 5AL Investment Advisers Standard Life Investments Limited 1 George Street Edinburgh EH2 2LL Standard Life Strategic Investment Allocation Fund 1

4 Statement of Manager s Responsibilities The Regulations require the Manager to prepare financial statements for each annual and half-yearly accounting period which give a true and fair view of the financial position of the Trust and of its net revenue/expense and net gains/losses on the property of the Trust for the period. In preparing the financial statements the Manager is required to: select suitable accounting policies and then apply them consistently; comply with the disclosure requirements of the Statement of Recommended Practice for Financial Statements of Authorised Funds issued by the IMA in October 2010; follow generally accepted accounting principles and applicable accounting standards; make judgements and estimates which are prudent; keep proper accounting records which enable it to demonstrate that the financial statements as prepared comply with the above requirements; and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Trust will continue in operation. The Manager is responsible for the management of the Trust in accordance with the Trust Deed, Prospectus and the Regulations and for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Manager confirms that suitable accounting policies have been used and applied consistently and reasonable and prudent judgements and estimates have been made in the preparation of the financial statements for the year ended 31 January The Manager also confirms that applicable accounting standards have been followed and that the financial statements have been prepared on a going concern basis. Manager s Statement The Manager is SLTM Limited which is authorised and regulated by the Financial Services Authority for investment business. The Standard Life Strategic Investment Allocation Fund is an Authorised Unit Trust Scheme under section 243 of the Financial Services and Markets Act The Trust is certified under the Undertaking for Collective Investment in Transferable Securities (UCITS) directive allowing the Manager to market the Trust in member states of the European Union subject to relevant local laws. Copies of the most recent Prospectus are available, on request, from the Manager. Distributions are made from positive net revenue where gross revenue exceeds expenses and tax. The total return consists of investment and currency gains and losses in addition to net revenue. In situations where the Trust has a negative total return but a positive net revenue position, there will be a distribution. We hereby certify the Annual Report and Financial Statements on behalf of the Directors of SLTM Limited. C.R. Walklin Director Edinburgh 12 May 2011 N.K. Skeoch Director 2 Standard Life Strategic Investment Allocation Fund

5 Statement of Trustee s Responsibilities The Trustee is under a duty to take into custody and to hold the property of the Trust in trust for the holders of units. Under the sourcebook relating to the Reports it is the duty of the Trustee to enquire into the conduct of the Manager in the management of the Trust in each annual accounting period and report thereon to unitholders in a report which shall contain the matters prescribed by the sourcebook. A copy of the Trustee's report is included below. Report of the Trustee to the Unitholders of the Standard Life Strategic Investment Allocation Fund Having carried out such procedures as we considered necessary to discharge our responsibilities as Trustee of the Trust, it is our opinion based on the information available and the explanations provided, that the Manager has, in all material respects, managed the Trust during the year to 31 January 2011, in accordance with the investment and borrowing powers and restrictions applicable to the Trust, and otherwise in accordance with the provisions of the Trust Deed and the rules in the Financial Services Authority's Collective Investment Schemes Sourcebook. Citibank International plc London 12 May 2011 Standard Life Strategic Investment Allocation Fund 3

6 Independent Auditors Report Independent auditors report to the unitholders of the Standard Life Strategic Investment Allocation Fund ( the Trust ) We have audited the financial statements of the Standard Life Strategic Investment Allocation Fund ( the Trust ) for the year ended 31 January 2011 which comprise the statement of total return, the statement of change in net assets attributable to unitholders, the balance sheet, the related notes and the distribution table. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and the Statement of Recommended Practice Financial Statements of Authorised Funds issued by the Investment Management Association (the Statement of Recommended Practice for Authorised Funds ). Respective responsibilities of Manager and auditors As explained more fully in the Statement of Manager s Responsibilities the Manager is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board s Ethical Standards for Auditors. This report, including the opinions, has been prepared for and only for the Trust s unitholders as a body in accordance with paragraph of the Collective Investment Schemes sourcebook and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing. Scope of the audit of the financial statements An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the Trust s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the Manager; and the overall presentation of the financial statements. Opinion on financial statements In our opinion the financial statements: give a true and fair view of the financial position of the Trust at 31 January 2011 and of the net expenses and the net losses of the scheme property of the Trust for the year then ended; and have been properly prepared in accordance with the Statement of Recommended Practice for Authorised Funds, the Collective Investment Schemes sourcebook and the Trust Deed. Opinion on other matters prescribed by the Collective Investment Schemes sourcebook In our opinion: we have obtained all the information and explanations we consider necessary for the purposes of the audit; and the information given in the Manager s Report for the financial year for which the financial statements are prepared is consistent with the financial statements. Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Collective Investment Schemes sourcebook requires us to report to you if, in our opinion: proper accounting records for the Trust have not been kept; or the financial statements are not in agreement with the accounting records and returns. PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors Edinburgh 12 May Standard Life Strategic Investment Allocation Fund

7 The Registrar of the Trust The Registrar of the Standard Life Strategic Investment Allocation Fund is The Bank of New York Mellon (International) Limited. The Registrar is responsible to the Trustee for the maintenance of a register of unitholders in the Trust. This register can be inspected at 12 Blenheim Place, Edinburgh, EH7 5JH. The Registrar is also responsible for the distribution of the Annual Report and Financial Statements and tax vouchers to unitholders at the addresses recorded on the register. Standard Life Strategic Investment Allocation Fund 5

8 Investment Report Fund Manager: Brian Fleming Investment Background Global equities markets ended a volatile 12 months on a high note, on the back of slowly improving macro and corporate data. However, performance over the year had been tempered by periods of risk aversion and worries over the fragility of western economies. World stock markets made a good initial start to 2010 as investor confidence in the economic recovery strengthened. Global policymakers maintained their proactive approach with low interest rates and substantial fiscal spending. Central banks played down the core inflationary threat, arguing that spare capacity in the economy would reduce pressure on prices. The picture changed dramatically over the second quarter, however, amid persistent worries over the sovereign debt crisis in Europe despite a 750 billion rescue package from the EU. Fears over the Chinese economic slowdown and uncertainty over financial regulatory reform also combined to depress investor sentiment. Global markets then began to tread water over the summer months, with renewed concerns about sovereign debt risk in the Euro-zone triggering a pullback in August. Further quantitative easing from the US Federal Reserve saw markets rise strongly in September, in a rally that would last into year-end. Sovereign risk came back into the fray in late October, focusing on peripheral European nations. The end of the year saw a significant improvement in investor risk appetite as worries over European contagion faded and confidence in the global recovery improved. Corporate earnings were a consistent bright spot for investors during the year, with many companies reporting results ahead of expectations, both in terms of top-line recovery and margin performance. Towards the end of the year, market sentiment was boosted by signs that merger and acquisition activity was on the rise. Cash-rich companies are searching for sources of revenue growth and are increasingly looking to acquisitions to gain market share. There were also signs that improving balance sheet health is leading to a recovery in dividend payments as companies look for ways to utilise cash that has been built up in the aftermath of the global recession. Various global government bond markets delivered strong returns over the year, underpinned by long-term low interest rates and quantitative easing. Core markets such as Germany, the US and the UK held up better than the peripheral nations, namely Greece, Ireland, Italy, Portugal and Spain. Indeed, the excess yield demanded by investors buying Spanish debt over German bunds increased significantly. Corporate bonds comfortably outperformed government debt. However, the year was characterised by elevated volatility as investors expressed uneasiness over the budget deficits and general creditworthiness of several peripheral European countries. Within credit markets, this led to volatility in financial debt due to sovereign links and concerns over regulatory/legislative changes. High-yield bonds also provided robust returns to investors as default data from credit ratings agency Moody s continued to improve. New supply was comfortably absorbed and the majority of deals traded well in the secondary market. Dealing Activity We introduced new relative value strategies seeking to benefit from imbalances between equity markets during the last year. These included a position based on the view that US large-cap stocks would outperform small-cap stocks and a strategy favouring Korean versus European equities. We have re-organised our duration positions in recent months, particularly focusing on moving to relative value strategies. For example, we switched our Australian medium-term duration strategy into a relative value position against Japanese duration. 6 Standard Life Strategic Investment Allocation Fund

9 Investment Report (continued) Dealing Activity (continued) During the year the following purchases and sales were greater than 5% of the opening net asset value: Purchases Cost Sales Proceeds Banco Bilbao Vizcaya Argentina 0.63% 28/02/2011 5,000 Clydesdale Bank 0.67% 19/01/2011 4,503 Clydesdale Bank 0.80% 16/05/2011 5,000 HSBC Bank 0.55% 20/12/2010 4,500 Danske Bank 0.60% 02/03/2011 5,000 Deutsche Bank 0.65% 05/01/2011 4,500 Nordea Bank 0.73% 18/04/2011 5,000 Barclays Bank 1.5% 07/12/2010 4,057 Svenska Handelsbanken 0.75% 23/05/2011 5,000 Banco Bilbao Vizcaya Argentina 0.82% 27/01/2011 4,000 Clydesdale Bank 0.67% 19/01/2011 4,503 Banque Federative du Credit Mutuel 0.88% 10/01/2011 4,000 HSBC Bank 0.55% 20/12/2010 4,500 Danske Bank 0.62% 21/01/2011 4,000 Deutsche Bank 0.65% 05/01/2011 4,500 Dexia Bank 0.621% 15/11/2010 4,000 Barclays Bank 1.5% 07/12/2010 4,057 Dexia Bank 0.68% 14/01/2011 4,000 Banque Federative du Credit Mutuel 0.875% 11/04/2011 4,000 KBC Bank 0.73% 25/10/2010 4,000 Banque Federative du Credit Mutuel 0.88% 10/01/2011 4,000 Lloyds TSB 0.71% 24/11/2010 4,000 Banco Bilbao Vizcaya Argentina 0.82% 27/01/2011 4,000 Nordea Bank 0.7% 18/01/2011 4,000 Barclays Bank 1.47% 07/12/2011 4,000 Unicredito Italiano 0.72% 13/12/2010 4,000 Co-Operative Bank 0.76% 04/03/2011 4,000 ING Bank 0.56% 24/06/2010 3,000 Credit Agricole 1.03% 01/06/2011 4,000 ING Bank 0.71% 24/09/2010 3,000 Danske Bank As 0.62% 21/01/2011 4,000 ING Bank 0.72% 05/01/2011 3,000 Deutsche Bank 0.58% 07/02/2011 4,000 KBC Bank 0.58% 23/07/2010 3,000 Dexia Bank 0.621% 15/11/2010 4,000 Lloyds TSB 0.66% 24/08/2010 3,000 Dexia Bank 0.68% 14/01/2011 4,000 Dexia Bank 0.695% 11/03/2011 4,000 ING Bank 1.05% 05/07/2011 4,000 Intesa Sanpaolo 0.60% 10/02/2011 4,000 KBC Bank 0.73% 25/10/2010 4,000 KBC Bank 0.74% 25/02/2011 4,000 Lloyds TSB 1.465% 24/11/2011 4,000 Lloyds TSB 0.71% 24/11/2010 4,000 Nordea Bank 0.7% 18/01/2011 4,000 Societe Generale 0.7% 01/02/2011 4,000 Unicreditio Italiano 0.82% 14/02/2011 4,000 Unicredito Italiano 0.72% 13/12/2010 4,000 Swedbank 0.745% 24/03/2011 3,994 ING Bank 0.56% 24/06/2010 3,000 ING Bank 0.71% 24/09/2010 3,000 ING Bank 0.72% 05/01/2011 3,000 KBC Bank NV CD 0.58% 23/07/2010 3,000 KBC Bank 0.58% 23/07/2010 3,000 Nationwide Building Society 1% 29/04/2011 2,000 Nationwide Building Society 1.01% 14/03/2011 1,993 Total 149,546 Total 68,560 Performance Over the period under review, the Trust returned -2.34%. The Trust was short equities which detracted from performance as global equity markets continued their recovery. A relative value position favouring the Swiss equity market over the German equity market generally underperformed in a rising market before we closed the position. The low interest rate and inflation environment was positive for our duration and inflation positions over much of the period. Regarding currency, our long dollar and sterling versus the euro positions were largely beneficial for returns despite underperformance in September as the euro made its biggest one month gain since creation. Please note that this Fund is designed to be used in conjunction within a Standard Life Wealth portfolio. Outlook and Future Strategy We continue to expect a variable and protracted recovery in global markets with additional regulation of financial firms that will serve to reduce their credit risk and allow us to exploit their high relative spread. Return-seeking strategies are focused on benefiting from yield while aiming to ensure that the Trust will gain should there be an economic surprise. We have continued to adopt more relative value strategies, especially in duration, in recognition that the gradual recovery will have varying impact on different parts of the global economy over the next three years. Cautionary Note It should be remembered that past performance is not a guide to future performance. The value of investments may go down as well as up and, therefore, investors may not get back the amount originally invested. Standard Life Strategic Investment Allocation Fund 7

10 Comparative Tables Accounting Net asset Net asset value Units in period value per unit issue 000 p Retail accumulation 31 January , January , January ,000 Standard Life accumulation 31 January , ,235, January , January ,000 Standard Life Wealth 31 January , ,112, January , ,703, January , ,407,529 Calendar Distribution Highest Lowest year per unit price price p p p Retail accumulation 2007* *** Standard Life accumulation 2007* *** Standard Life Wealth 2008** *** *from launch of the Trust on 10 September **from commencement of the unit class on 18 February ***to 31 January Total Expense Ratio (TER) Retail accumulation 2.11% 2.21% Standard Life accumulation 0.11% 0.21% Standard Life Wealth 0.71% 0.81% TER = ratio of total operating costs to average net assets 8 Standard Life Strategic Investment Allocation Fund

11 Financial Statements Statement of Total Return for the year ended 31 January Notes Income: Net capital (losses)/gains 4 (13,407) 1,960 Revenue Expenses 7 (592) (95) Finance costs: Interest 9 (4) (1) Net expenses before taxation (186) (55) Taxation Net expenses after taxation (186) (55) Total return before distribution (13,593) 1,905 Finance costs: Distribution Change in net assets attributable to unitholders from investment activities (13,593) 1,905 Statement of Change in Net Assets Attributable to Unitholders for the year ended 31 January Opening net assets attributable to unitholders 34,725 3,382 Amounts receivable on issue of units 132,713 33,679 Less: Amounts payable on cancellation of units (10,140) (4,241) 122,573 29,438 Stamp duty reserve tax (8) 0 Change in net assets attributable to unitholders from investment activities (see above) (13,593) 1,905 Closing net assets attributable to unitholders 143,697 34,725 Balance Sheet as at 31 January Notes Assets Investment assets 151,108 35,088 Debtors 10 17,229 1,664 Cash and bank balances 11 16,728 2,909 Total other assets 33,957 4,573 Total assets 185,065 39,661 Liabilities Investment liabilities (41,171) (4,826) Creditors 12 (197) (110) Total other liabilities (197) (110) Total liabilities (41,368) (4,936) Net assets attributable to unitholders 143,697 34,725 Standard Life Strategic Investment Allocation Fund 9

12 Portfolio Statement as at 31 January 2011 Market Percentage value of total Holding net assets Derivatives (2.48%) (19,444) (13.49) Credit Default Swaps (-0.28%) (5,596) (3.91) 4,800,000 CDX - North America High Yield Series 15 20/12/ ,500,000 CDX - North America High Yield Series 15 20/12/ ,000,000 CDX - North America High Yield Series 15 20/12/ ,250,000 CDX - North America High Yield Series 15 20/12/ ,750,000 CDX - North America High Yield Series 15 20/12/ ,000,000 ITRAXX - Europe Series 14 20/12/2015 (13) (0.01) 10,000,000 ITRAXX - Europe Series 14 20/12/2015 (18) (0.01) 11,000,000 ITRAXX - Europe Series 14 20/12/2015 (20) (0.01) 12,000,000 ITRAXX - Europe Series 14 20/12/2015 (22) (0.02) 24,000,000 ITRAXX - Europe Series 14 20/12/2015 (44) (0.03) 37,000,000 ITRAXX - Europe Series 14 20/12/2015 (68) (0.05) 7,000,000 ITRAXX - European Sub Financial Series 14 20/12/2015 (482) (0.34) 10,000,000 ITRAXX - European Sub Financial Series 14 20/12/2015 (689) (0.48) 11,000,000 ITRAXX - European Sub Financial Series 14 20/12/2015 (757) (0.53) 12,000,000 ITRAXX - European Sub Financial Series 14 20/12/2015 (826) (0.58) 24,000,000 ITRAXX - European Sub Financial Series 14 20/12/2015 (1,653) (1.15) 37,000,000 ITRAXX - European Sub Financial Series 14 20/12/2015 (2,548) (1.77) Currency Options (-2.10%) (1,524) (1.08) Buy Option: EUR (Put) 33,333,333 / (Call) GBP 25,000,000 07/11/ Buy Option: EUR (Put) 8,000,000 / (Call) GBP 6,000,000 07/11/ Buy Option: GBP (Put) 16,880,000 / (Put) GBP 20,095,238 07/11/ Buy Option: GBP (Put) 14,120,000 / (Put) GBP 15,688,889 07/11/ Buy Option: JPY (Put) 1,462,000,000 / (Call) USD 17,000,000 10/12/ Buy Option: JPY (Put) 1,222,000,000 / (Call) USD 13,000,000 15/08/ Buy Option: JPY (Put) 970,000,000 / (Call) USD 10,000,000 31/05/ Buy Option: JPY (Put) 574,000,000 / (Call) USD 7,000,000 13/01/ Buy Option: JPY (Put) 522,500,000 / (Call) USD 5,500,000 19/02/ Buy Option: JPY (Put) 475,000,000 / (Call) USD 5,000,000 16/11/ Buy Option: JPY (Put) 455,000,000 / (Call) USD 5,000,000 07/10/ Buy Option: JPY (Put) 357,200,000 / (Call) USD 3,800,000 26/02/ Buy Option: JPY (Put) 264,600,000 / (Call) USD 2,700,000 24/09/ Buy Option: JPY (Put) 172,800,000 / (Call) USD 1,600,000 11/07/ Buy Option: JPY (Put) 150,000,000 / (Call) USD 1,500,000 27/07/ Buy Option: JPY (Put) 102,000,000 / (Call) USD 1,000,000 29/05/ Buy Option: ZAR (Put) 150,700,000 / (Call) GBP 11,000,000 19/10/ Buy Option: ZAR (Put) 68,500,000 / (Call) GBP 5,000,000 19/10/ Sell Option: EUR (Call) 9,857,143 / (Put) GBP 8,280,000 07/11/2011 (393) (0.27) Sell Option: EUR (Call) 8,333,333 / (Put) GBP 7,500,000 07/11/2011 (138) (0.10) Sell Option: EUR (Call) 7,142,857 / (Put) GBP 6,000,000 07/11/2011 (285) (0.20) Sell Option: EUR (Call) 4,666,667 / (Put) GBP 4,200,000 07/11/2011 (77) (0.05) Sell Option: EUR (Call) 3,095,238 / (Put) GBP 2,600,000 07/11/2011 (123) (0.09) Sell Option: EUR (Call) 1,577,778 / (Put) GBP 1,420,000 07/11/2011 (26) (0.02) Sell Option: EUR (Call) 1,111,111 / (Put) GBP 1,000,000 07/11/2011 (18) (0.01) Sell Option: GBP (Call) 16,880,000 / (Call) GBP 22,506,667 07/11/2011 (94) (0.07) Sell Option: GBP (Call) 14,120,000 / (Call) GBP 18,826,667 07/11/2011 (79) (0.05) Sell Option: GBP (Call) 11,000,000 / (Call) GBP 150,700,000 19/10/2011 (181) (0.13) Sell Option: GBP (Call) 5,000,000 / (Call) GBP 68,500,000 19/10/2011 (82) (0.06) Sell Option: JPY (Call) 1,156,000,000 / (Put) USD 17,000,000 10/12/2015 (951) (0.66) Sell Option: JPY (Call) 975,000,000 / (Put) USD 13,000,000 15/08/2013 (478) (0.33) Sell Option: JPY (Call) 790,000,000 / (Put) USD 10,000,000 31/05/2013 (457) (0.32) Sell Option: JPY (Call) 476,000,000 / (Put) USD 7,000,000 13/01/2016 (401) (0.28) Sell Option: JPY (Call) 423,500,000 / (Put) USD 5,500,000 19/02/2013 (189) (0.13) 10 Standard Life Strategic Investment Allocation Fund

13 Portfolio Statement (continued) Derivatives (continued) Currency Options (continued) Market Percentage value of total Holding net assets Sell Option: JPY (Call) 385,000,000 / (Put) USD 5,000,000 16/11/2012 (152) (0.11) Sell Option: JPY (Call) 355,000,000 / (Put) USD 5,000,000 07/10/2013 (145) (0.10) Sell Option: JPY (Call) 292,600,000 / (Put) USD 3,800,000 26/02/2013 (132) (0.09) Sell Option: JPY (Call) 205,200,000 / (Put) USD 2,700,000 24/09/2012 (69) (0.05) Sell Option: JPY (Call) 140,800,000 / (Put) USD 1,600,000 11/07/2011 (82) (0.06) Sell Option: JPY (Call) 121,500,000 / (Put) USD 1,500,000 27/07/2012 (57) (0.04) Sell Option: JPY (Call) 81,000,000 / (Put) USD 1,000,000 29/05/2012 (35) (0.02) Equity OptionsS (0.00%) ,023,722 Call KOSPI2 09/06/ ,762,594 Call KOSPI2 09/06/ Forward Currency Contracts (3.65%) (2,627) (1.81) Buy BRL 10,822,500 Sell USD 6,255,419 16/03/ Buy BRL 10,822,500 Sell USD 6,279,373 16/03/ Buy BRL 21,645,000 Sell USD 12,558,747 16/03/ Buy CLP 2,487,189,674 Sell USD 5,220,801 16/03/2011 (63) (0.04) Buy CLP 2,487,189,674 Sell USD 5,227,934 16/03/2011 (67) (0.05) Buy CLP 3,730,784,511 Sell USD 7,835,313 16/03/2011 (97) (0.07) Buy CLP 3,730,784,511 Sell USD 7,840,418 16/03/2011 (100) (0.07) Buy EUR 2,000,000 Sell GBP 1,723,720 15/02/2011 (13) (0.01) Buy GBP 960,435 Sell AUD 1,543,000 08/03/ Buy GBP 318,761 Sell AUD 500,000 11/04/ Buy GBP 430,520 Sell CAD 700,000 10/02/2011 (7) 0.00 Buy GBP 31,625 Sell CAD 50,000 08/03/ Buy GBP 1,070,890 Sell CAD 1,650,000 11/04/ Buy GBP 2,029,872 Sell CHF 3,200,000 10/02/2011 (98) (0.07) Buy GBP 463,845 Sell CHF 714,000 08/03/2011 (11) (0.01) Buy GBP 644,889 Sell CHF 1,000,000 08/03/2011 (20) (0.01) Buy GBP 4,340,515 Sell CHF 6,500,000 11/04/ Buy GBP 814,281 Sell DKK 7,167,000 08/03/2011 (9) (0.01) Buy GBP 2,308,316 Sell EUR 2,700,000 10/02/2011 (3) 0.00 Buy GBP 8,704,700 Sell EUR 10,000,000 10/02/ Buy GBP 12,185,909 Sell EUR 13,850,000 14/02/ Buy GBP 2,684,547 Sell EUR 3,200,000 15/02/2011 (55) (0.04) Buy GBP 3,732,010 Sell EUR 4,400,000 15/02/2011 (35) (0.02) Buy GBP 4,240,640 Sell EUR 5,000,000 15/02/2011 (40) (0.03) Buy GBP 7,972,761 Sell EUR 9,150,000 15/02/ Buy GBP 14,619,371 Sell EUR 17,257,000 08/03/2011 (153) (0.11) Buy GBP 9,149,184 Sell EUR 11,000,000 11/04/2011 (266) (0.19) Buy GBP 20,640,440 Sell EUR 24,370,000 11/04/2011 (219) (0.15) Buy GBP 1,508,922 Sell JPY 196,000,000 10/02/ Buy GBP 150,000 Sell JPY 19,322,640 08/03/ Buy GBP 200,000 Sell JPY 26,314,760 08/03/2011 (1) 0.00 Buy GBP 709,798 Sell JPY 92,000,000 08/03/ Buy GBP 1,324,092 Sell JPY 170,171,760 11/04/ Buy GBP 12,859 Sell NOK 122,000 08/03/ Buy GBP 27,159 Sell NOK 250,000 11/04/ Buy GBP 839,211 Sell SEK 9,000,000 10/02/2011 (35) (0.02) Buy GBP 1,154,819 Sell SEK 12,488,000 08/03/2011 (57) (0.04) Buy GBP 104,157 Sell SEK 1,100,000 11/04/2011 (2) 0.00 Buy GBP 3,290,133 Sell USD 5,300,000 10/02/2011 (20) (0.01) Standard Life Strategic Investment Allocation Fund 11

14 Portfolio Statement (continued) Derivatives (continued) Market Percentage value of total Holding net assets Forward Currency Contracts (continued) Buy GBP 550,000 Sell USD 855,961 14/02/ Buy GBP 2,949,703 Sell USD 4,770,000 14/02/2011 (29) (0.02) Buy GBP 1,245,882 Sell USD 2,000,000 15/02/2011 (3) 0.00 Buy GBP 1,750,000 Sell USD 2,730,779 15/02/ Buy GBP 1,837,288 Sell USD 2,970,000 15/02/2011 (17) (0.01) Buy GBP 150,000 Sell USD 234,182 08/03/ Buy GBP 230,000 Sell USD 356,261 08/03/ Buy GBP 650,000 Sell USD 1,025,907 08/03/ Buy GBP 9,279,105 Sell USD 14,544,896 08/03/ Buy GBP 1,600,000 Sell USD 2,548,910 11/04/ Buy GBP 3,215,451 Sell USD 5,000,000 11/04/ Buy GBP 9,772,564 Sell USD 15,109,000 11/04/ Buy PLN 23,300,000 Sell CZK 144,693,000 18/02/2011 (49) (0.03) Buy PLN 35,000,000 Sell CZK 217,262,500 17/03/2011 (86) (0.06) Buy PLN 23,700,000 Sell CZK 147,113,010 18/04/2011 (70) (0.05) Buy PLN 23,300,000 Sell CZK 145,172,980 19/05/2011 (100) (0.07) Buy TRY 8,695,000 Sell ZAR 42,250,135 14/04/2011 (286) (0.20) Buy TRY 9,805,000 Sell ZAR 47,397,370 14/04/2011 (301) (0.21) Buy TRY 14,000,000 Sell ZAR 65,917,180 15/04/2011 (278) (0.19) Buy TRY 18,500,000 Sell ZAR 89,427,150 15/04/2011 (568) (0.40) Buy USD 4,968,153 Sell BRL 8,658,000 16/03/2011 (100) (0.07) Buy USD 4,988,764 Sell BRL 8,658,000 16/03/2011 (88) (0.06) Buy USD 7,492,644 Sell BRL 12,987,000 16/03/2011 (125) (0.09) Buy USD 7,500,866 Sell BRL 12,987,000 16/03/2011 (120) (0.08) Buy USD 6,387,236 Sell CLP 3,108,987,093 16/03/2011 (14) (0.01) Buy USD 6,426,847 Sell CLP 3,108,987,092 16/03/ Buy USD 12,853,693 Sell CLP 6,217,974,185 16/03/ Buy USD 13,000,000 Sell EUR 9,370,517 22/02/ Buy USD 12,000,000 Sell EUR 8,611,534 28/02/ Buy USD 18,399,679 Sell EUR 13,742,560 24/03/2011 (270) (0.19) Buy USD 21,855,608 Sell EUR 15,941,327 24/03/ Buy USD 25,000,000 Sell EUR 18,990,856 20/04/2011 (633) (0.44) Buy USD 10,000,000 Sell EUR 7,446,155 20/05/2011 (122) (0.09) Buy USD 599,802 Sell GBP 384,266 16/03/2011 (10) (0.01) Futures (1.88%) (1,543) (1.07) 1,610 Australian 10 year Bond Future 15/03/2011 1, (615) DJ Euro Stoxx 18/03/2011 (647) (0.45) (561) FTSE 100 Future 18/03/2011 (371) (0.26) (44) FTSE 250 Future 18/03/2011 (107) (0.07) (316) OMX Index Future 18/02/ S&P 500 Index Future EMINI Future 18/03/2011 1, (94) Swiss Market Index Future 18/03/ (106) Japan 10 year Bond Future 10/03/2011 (61) (0.04) (810) Russell 2000 mini 18/03/2011 (819) (0.57) (1,671) US 2 year Bond Future 31/03/2011 (87) (0.06) (905) US 10 year Bond Future 22/03/2011 1, US Ultra Bond Futures 22/03/2011 (3,833) (2.67) Index Options (-0.62%) (1,742) (1.21) (1,495) DJ Euro Stoxx Call 17/06/2011 (1,889) (1.31) (370) DJ Euro Stoxx Call 17/06/2011 (384) (0.27) 645 KOSPI 200 Index Call 09/06/ KOSPI 200 Index Call 09/06/ Standard Life Strategic Investment Allocation Fund

15 Portfolio Statement (continued) Derivatives (continued) Market Percentage value of total Holding net assets Inflation Swaps (0.21%) - - Interest Rate Swaps (1.88%) (1,262) (0.88) 10,250,000 Pay fixed 3.165% receive floating EURIBOR 10/11/ ,250,000 Pay fixed 3.155% receive floating EURIBOR 11/11/ AU $34,000,000 Receive floating AUD-BBR-BBSW receive fixed 5.71% 10/12/ AU $40,000,000 Receive floating AUD-BBR-BBSW receive fixed 4.99% 20/08/2014 (273) (0.19) AU $26,000,000 Receive floating AUD-BBR-BBSW receive fixed 5.53% 18/06/2014 (19) (0.01) AU $39,160,000 Receive floating AUD-BBR-BBSW receive fixed 5.865% 16/02/ AU $1,340,000 Receive floating AUD-BBR-BBSW receive fixed 5.955% 24/02/ AU $23,000,000 Receive floating AUD-BBR-BBSW receive fixed 5.95% 10/04/ AU $32,000,000 Receive floating AUD-BBR-BBSW receive fixed 5.6% 21/05/ ,500,000 Receive floating JPY - LIBOR - BBA receive fixed 2.255% 11/11/2040 (266) (0.18) 912,500,000 Receive floating JPY - LIBOR - BBA receive fixed 2.265% 10/11/2040 (253) (0.18) 1,825,000,000 Receive floating JPY - LIBOR - BBA receive fixed % 15/11/2040 (405) (0.28) SEK 280,000,000 Receive floating SEK-STIBOR receive fixed 2.945% 23/04/2014 (311) (0.22) SEK 210,000,000 Receive floating SEK-STIBOR receive fixed 2.605% 23/04/2014 (361) (0.25) SEK 300,000,000 Receive floating SEK-STIBOR receive fixed 2.605% 23/04/2014 (515) (0.36) SEK 90,000,000 Receive floating SEK-STIBOR receive fixed 2.56% 23/04/2014 (162) (0.11) SEK 100,000,000 Receive floating SEK-STIBOR receive fixed 2.55% 23/04/2014 (181) (0.13) SEK 300,000,000 Receive floating SEK-STIBOR receive fixed 2.68% 23/04/2014 (475) (0.33) SEK 76,521,740 Receive floating SEK-STIBOR receive fixed 3.105% 23/04/2014 (63) (0.04) SEK 34,782,610 Receive floating SEK-STIBOR receive fixed 3.115% 23/04/2014 (28) (0.02) SEK 48,695,650 Receive floating SEK-STIBOR receive fixed 3.12% 23/04/2014 (39) (0.03) Swaptions (0.98%) ,150,000 Pay fixed 2.6%, receive floating EURIBOR 01/11/ ,000,000 Pay fixed 2.7%, receive floating EURIBOR 11/12/2023 (169) (0.12) 44,350,000 Pay fixed 2.7%, receive floating EURIBOR 05/11/2013 (457) (0.32) 33,000,000 Pay fixed 2.6%, receive floating EURIBOR 11/12/ Variance Swaps (-3.12%) (6,198) (4.26) HK$ 355,000 Hang Seng China Enterprises Index 29/12/2011 (332) (0.23) HK$ 400,000 Hang Seng China Enterprises Index 29/12/2011 (287) (0.20) HK$ 300,000 Hang Seng China Enterprises Index 29/12/2011 (196) (0.14) HK$ 290,000 Hang Seng China Enterprises Index 29/12/2011 (174) (0.12) HK$ 277,250 Hang Seng China Enterprises Index 29/12/2011 (172) (0.12) HK$ 202,750 Hang Seng China Enterprises Index 29/12/2011 (135) (0.09) HK$ 265,000 Hang Seng China Enterprises Index 28/12/2012 (87) (0.06) HK$ 225,000 Hang Seng China Enterprises Index 28/12/2012 (86) (0.06) HK$ 200,000 Hang Seng China Enterprises Index 28/12/2012 (80) (0.05) HK$ 200,000 Hang Seng China Enterprises Index 28/12/2012 (76) (0.05) 170,000 DAX Index 16/12/2011 (688) (0.48) 50,000 DAX Index 21/12/2012 (136) (0.09) 40,000 DAX Index 21/12/2012 (104) (0.07) 234,301 DJ Euro Stoxx 50 Index 16/12/2011 (1,152) (0.80) 204,838 DJ Euro Stoxx 50 Index 16/12/2011 (1,054) (0.73) 254,975 DJ Euro Stoxx 50 Index 16/12/2011 (761) (0.53) 70,992 DJ Euro Stoxx 50 Index 16/12/2011 (477) (0.33) 120,000 DJ Euro Stoxx 50 Index 21/12/2012 (832) (0.58) 125,000 DJ Euro Stoxx 50 Index 21/12/2012 (601) (0.42) 20,000 DJ Euro Stoxx 50 Index 21/12/2012 (76) (0.05) 16,000 DJ Euro Stoxx 50 Index 21/12/2012 (62) (0.04) 36,000 FTSE 100 Index 16/12/ Standard Life Strategic Investment Allocation Fund 13

16 Portfolio Statement (continued) Derivatives (continued) Variance Swaps (continued) Market Percentage value of total Holding net assets 24,000 FTSE 100 Index 16/12/ ,000 FTSE 100 Index 16/12/ ,000 FTSE 100 Index 16/12/ ,000 FTSE 100 Index 16/12/ ,000 FTSE 100 Index 16/12/ ,246 FTSE 100 Index 21/12/2012 (25) (0.02) 21,000 FTSE 100 Index 21/12/2012 (22) (0.02) 21,000 FTSE 100 Index 21/12/2012 (21) (0.01) 16,000 FTSE 100 Index 21/12/2012 (21) (0.01) 20,000 FTSE 100 Index 21/12/2012 (16) (0.01) 44,754 FTSE 100 Index 21/12/2012 (9) (0.01) 117,250 FTSE 100 Index 21/12/ ,000,000 Nikkei 225 Index 14/12/2012 (1,960) (1.36) 16,528,302 Nikkei 225 Index 14/12/2012 (811) (0.56) 13,471,698 Nikkei 225 Index 14/12/2012 (809) (0.56) 6,000,000 Nikkei 225 Index 14/12/2012 (286) (0.20) 15,809,500 Nikkei 225 Index 14/12/2012 (179) (0.12) 3,500,000 Nikkei 225 Index 14/12/2012 (157) (0.11) 19,300,000 Nikkei 225 Index 14/12/2012 (152) (0.11) 4,500,000 Nikkei 225 Index 14/12/2012 (130) (0.09) 7,900,820 Nikkei 225 Index 14/12/2012 (87) (0.06) 5,805,246 Nikkei 225 Index 14/12/2012 (65) (0.05) 8,600,000 Nikkei 225 Index 14/12/2012 (63) (0.04) $230,000 S&P 500 Index 16/12/ $270,000 S&P 500 Index 21/12/2012 (131) (0.09) $100,000 S&P 500 Index 21/12/2012 (60) (0.04) $60,000 S&P 500 Index 21/12/ $55,000 S&P 500 Index 21/12/ $22,000 S&P 500 Index 21/12/ $85,000 S&P 500 Index 21/12/ $23,000 S&P 500 Index 21/12/ $28,000 S&P 500 Index 21/12/ $39,000 S&P 500 Index 21/12/ $61,000 S&P 500 Index 21/12/ $176,373 S&P 500 Index 21/12/ $143,627 S&P 500 Index 21/12/ $150,000 S&P 500 Index 21/12/ $320,000 S&P 500 Index 21/12/2012 1, $130,000 S&P 500 Index 21/12/ Cash Held For Investment Purposes (65.61%) 115, Money Market Instruments (0.00%) 80, ,000,000 Banco Bilbao 0.63% 28/02/2011 5, ,000,000 Barclays Bank 1.47% 07/12/2011 4, ,000,000 Banque Federative du Credit Mutuel 0.875% 11/04/2011 4, ,000,000 Clydesdale Bank 0.80% 16/05/2011 5, ,000,000 Co-Operative Bank 0.76% 04/03/2011 4, ,000,000 Credit Agricole 1.03% 01/06/2011 4, ,000,000 Danske Bank 0.60% 02/03/2011 5, ,000,000 Deutsche Bank 0.58% 07/02/2011 4, ,000,000 Dexia Brussels 0.695% 11/03/2011 4, ,000,000 ING Bank 1.05% 05/07/2011 4, ,000,000 Intesa Sanpaolo 0.60% 10/02/2011 4, Standard Life Strategic Investment Allocation Fund

17 Portfolio Statement (continued) Market Percentage value of total Holding net assets Cash Held For Investment Purposes (continued) Money Market Instruments (continued) 4,000,000 KBC Bank 0.74% 25/02/2011 4, ,000,000 Lloyds TSB 1.465% 24/11/11 4, ,000,000 Nationwide Building Society 1% 29/04/2011 2, ,000,000 Nationwide Building Society 1.01% 14/03/2011 1, ,000,000 Nordea Bank 0.73% 18/04/2011 5, ,000,000 Societe Generale 0.7% 01/02/2011 4, ,000,000 Svenska Handelsbanken 0.75% 23/05/2011 5, ,000,000 Swedbank 0.745% 24/03/2011 3, ,000,000 Unicreditio Italiano 0.82% 14/02/2011 4, Term Deposits (65.61%) 34, Natixis 0.59% 5, DZ Bank 0.5% 5, Commerzbank 0.49% 5, Bank Of America 0.5% 5, Fortis Bank 0.5% 5, Abbey 0.8% 6, Collective Investment Schemes (19.06%) 14, ,000,000 SLI Global Liquidity Fund GBP 14, Total investment assets and liabilities 109, Net other assets 33, Total net assets 143, All investments are approved securities or regulated collective investment schemes or "approved derivatives" within the meaning of the FSA rules unless otherwise stated. The percentage figures in brackets show the comparative holding as at 31 January Standard Life Strategic Investment Allocation Fund 15

18 Notes to the Financial Statements 1 Accounting Policies a) Basis of Preparation The financial statements have been prepared in accordance with the Statement of Recommended Practice (SORP) for Authorised Funds issued by the IMA in October Previously the requirements of the November 2008 SORP had been applied. There is no requirement under the October 2010 SORP to disclose the Portfolio Turnover Rate (PTR). b) Valuation of Investments i. Any open positions in derivative contracts or forward foreign currency transactions at the year end are included in the balance sheet at their mark to market value. ii. The money market instruments of the Trust have been valued on a linear amortisation basis. Term Deposits are shown at their Sterling equivalent of nominal value. c) Foreign Exchange I. Assets and liabilities in foreign currencies are translated into Sterling at the exchange rates ruling on the reporting date. II. Income in foreign currencies is translated into Sterling at the exchange rates ruling when the income is received. d) Revenue Interest from money market instruments and short-term deposits is recognised on a daily accruals basis. e) Expenses The Manager's periodic charge is charged to the income property of the Trust. Handling charges are borne by the capital property of the Trust for distribution purposes. f) Taxation Tax is calculated using the marginal basis i.e. the tax effect of revenue and expenditure is allocated between capital and income on the same basis as the particular item to which it relates. g) Deferred Taxation Deferred tax is provided for on all timing differences that have originated but not reversed by the balance sheet date. Deferred tax is not recognised on permanent differences. Deferred tax assets are only recognised where it is more likely than not that there will be suitable taxable profits against which the future reversal of underlying timing differences can be deducted. h) Derivatives The Trust may enter into permitted transactions such as derivative contracts or forward foreign currency transactions. Where the transactions are used to protect or enhance revenue, the income and expenses are included within net revenue in the statement of total return. Where the transactions are undertaken to protect or enhance investments, the gains/losses are treated as capital and included within gains/losses on investments in the statement of total return. 2 Distribution Policies a) Basis of distribution I. All of the net revenue available for distribution at the end of the year will be distributed or reinvested in the Trust. II. Where the Manager has discretion about the extent to which income and expenses are recognised within the distributable income property of the Trust, the approach adopted, at all times, will be governed by the aim of maximising the total return to unitholders through limiting avoidable taxation costs. b) Equalisation In order that each unitholder in the same unit class shall receive the same rate of distribution per unit the buying price of each unit contains an amount called equalisation. This is equivalent to the net of distributable income less expenses accrued in the Trust at the time of purchase. As part of the distribution payment the average amount of this equalisation is returned to Group 2 unitholders. The equalisation element of the distribution to Group 2 unitholders is treated as a repayment of capital and is therefore not liable to income tax. This amount should, however, be deducted from the cost of the units for capital gains tax purposes. 16 Standard Life Strategic Investment Allocation Fund

19 Notes to the Financial Statements (continued) 3 Risk Management Policies In accordance with the investment objectives, the Trust may hold certain financial instruments. These comprise: - securities held in accordance with the investment objective and policies; - cash and short-term debtors and creditors arising directly from operations; and - derivatives. The main risks arising from the Trust's financial instruments are market price, foreign currency, interest rate, credit and liquidity risk. The Investment Manager's policies for managing these risks are summarised below and have been applied consistently throughout the year, and prior year. Market price risk The Trust's investment portfolio is exposed to market price fluctuations which are monitored by the Investment Manager in pursuance of the investment objectives and policies. Adherence to investment guidelines and to investment and borrowing powers set out in the Trust Deed, the Scheme Particulars and in the Collective Investment Schemes sourcebook, mitigates the risk of excessive exposure to any particular type of security or issuer or counterparty. Foreign currency risk A substantial proportion of the net assets of the Trust are denominated in currencies other than Sterling, therefore the balance sheet and total returns can be affected by currency movements. In certain circumstances, the Investment Manager may seek to manage exposure to currency movements by using forward currency contracts. The Trust does not hedge or otherwise seek to avoid currency movement risk on accrued revenue. Income received in foreign currencies is converted into Sterling at the exchange rates ruling when the income is received. Interest rate risk Interest receivable on bank deposits or payable on bank overdrafts or interest rate swaps will be affected by fluctuations in interest rates. The Investment Manager continuously reviews interest rates and inflation expectations. The assessment of this may result in a change in investment strategy. Credit risk All cash exposures are carefully managed to ensure that money is placed on deposit with counterparties that meet the minimum credit rating deemed appropriate for this Trust. In certain circumstances, the Investment Manager may deliberately invest in securities (e.g. corporate bonds) with a well defined and published credit rating. In this case the Trust would be deliberately taking credit risk in order to seek additional rewards. Liquidity risk The Trust's assets comprise mainly of cash and near cash instruments and thus is a highly liquid. The main liabilities of the Trust are the redemption of any units that investors wish to sell and the contractual obligations of derivative positions. The Investment Manager reviews the cash and liability position continuously, and should an increase in liquidity be required the Investment Manager could close out of derivative positions prior to their contractual settlement date. Numerical disclosures of the financial instruments are disclosed on pages 20 and 21. Standard Life Strategic Investment Allocation Fund 17

20 Notes to the Financial Statements (continued) 4 Net Capital (Losses)/Gains Non-derivative securities 9 0 Derivative contracts (9,965) 761 Forward currency contracts (3,057) 1,210 Non-derivative securities currency losses (243) (32) Derivative contracts currency losses (151) (17) Compensation fees 0 38 Net capital (losses)/gains (13,407) 1,960 5 Purchases, Sales and Transaction Costs There are no transaction costs associated with the purchases or sales of investments during the year, or in the prior year. 6 Revenue Interest on money market instruments Bank interest Total revenue Expenses Payable to the Manager, associates of the Manager and agents of either of them: Manager's periodic charge Registration fees Payable to the Trustee, associates of the Trustee and agents of either of them: Trustee's fees 14 2 Other expenses: Audit fee Total expenses Taxation (a) Analysis of charge in the year Total taxation 0 0 (b) Factors affecting current tax charge for year The tax assessed for the year is different from the standard rate of corporation tax in the UK for authorised Unit Trusts (20%). The differences are explained below: Net expenses before taxation (186) (55) Corporation tax at 20% (2010: 20%) (37) (11) Effects of: Excess management expenses Current tax charge (Note 8(a)) 0 0 Authorised Unit Trusts are exempt from tax on capital gains in the UK. Therefore, any capital return is not included in the above reconciliation. 18 Standard Life Strategic Investment Allocation Fund

21 Notes to the Financial Statements (continued) 8 Taxation (continued) (c) Factors that may affect future tax charge At the year end, after offset against revenue taxable on receipt, there is a potential deferred tax asset of 48,000 (2010: 11,000) due to surplus Management expenses. It is unlikely that the Trust will generate sufficient taxable profits to utilise these amounts and therefore no deferred tax asset has been recognised in the year or the prior year. 9 Finance Costs Distribution and interest The distribution takes account of income received on the creation of units and income deducted on the cancellation of units and comprises: Distribution 0 0 Interest 4 1 Total finance costs 4 1 Details of the distribution per unit are set out in the distribution table on page Debtors Amounts receivable from the Manager for the issue of units 4,272 1,545 Accrued revenue 77 4 Accrued interest receivable on interest rate swap contracts Collateral cash 12,880 0 Total debtors 17,229 1, Cash and Bank Balances Amounts held at futures clearing houses and brokers 16,699 2,782 Cash and bank balances Total cash and bank balances 16,728 2, Creditors Amounts payable to the Manager for the cancellation of units 98 0 Accrued expenses payable to the Manager Accrued expenses payable to the Trustee 2 0 Other accrued expenses Collateral cash 0 80 Other creditor 3 0 Total creditors Standard Life Strategic Investment Allocation Fund 19