Long Dated Corporate Bond Fund

Transcription

1 Schroder Long Dated Corporate Bond Fund Interim Report and Accounts October 2017

2 Contents Schroder Long Dated Corporate Bond Fund Fund Information Investment objective and policy Financial highlights Fund information Ongoing charges figure Total purchases and sales Review of Investment Activities Risk Profile Risk and reward indicator Specific risks Net Asset Value and Comparative Tables Unit price range Net revenue Net asset value Fund performance Portfolio Statement Summary of Portfolio Transactions Largest purchases Largest sales Statement of the Manager s Responsibilities Statement of Total Return (unaudited) Statement of Change in Net Assets Attributable to Unitholders (unaudited) Balance Sheet (unaudited) Notes to the Accounts (unaudited) Basis of preparation Accounting policies General Information Authorisation Collectively these comprise the Manager s report.

3 Fund Information Investment objective and policy The Schroder Long Dated Corporate Bond Fund s (the fund ) investment objective is to provide capital growth and income primarily through investment in long dated non-government debt securities. The fund may also invest in a wide range of investments including transferable securities, derivatives, cash, deposits, collective investment schemes and money market instruments. Financial highlights Dealing price % change I Accumulation units p p 0.55 X Accumulation units p p 0.63 Fund information Launch date 24 March 2005 Launch price p per I Accumulation unit 65.23p per X Accumulation unit Interim Final Accounting dates 10 October 10 April Revenue allocation date 10 June Ongoing charges figure For the period For the year to to I Accumulation units 0.27% % X Accumulation units % % 1 The Ongoing charges figure is annualised based on the fees incurred during the accounting period. 2 The Annual management charge for X Accumulation units is invoiced directly to unitholders and is therefore not included in the Ongoing charges figure for that unit class. Total purchases and sales For the period For the year to to s 000 s Total purchases 108,202 93,135 Total sales 30, ,194 3

4 Review of Investment Activities From 10 April 2017 to 10 October 2017, the price of I Accumulation units on a dealing price to dealing price basis rose 0.55%. In comparison, the Bank America Merrill Lynch Sterling Non-Gilts All Stocks Over 15 Years Index generated a negative total return of 0.14% 1. From 1 July 2017 the benchmark changed to the Bank of America Merrill Lynch Non-Gilts Over 15 Years Index. Prior to this date the benchmark was the Bank of America Merrill Lynch Sterling Non-Gilts All Stocks Over 15 Years Index. The full track record for the previous index has been kept and chain linked to the new one. Fund Manager: Alix Stewart 1 Source : Thomson Reuters Datastream. Sterling corporate bonds were little changed over the period following a rally in the preceding months. They suffered two significant setbacks. In late June, bonds saw a sharp sell off as comments from central banks, in the US, Europe and UK, were taken as suggestive of a hawkish shift. In September, amid well above target inflation, the Bank of England gave a firmer indication it was preparing to raise rates. The portfolio outperformed over the period. Positioning in subordinated insurance was positive, predominantly the relative sector overweight, but also security selection. The sector has benefited from a moderately rising rate environment as well as positive fundamental improvements at the individual company level. Overweight exposure to consumer cyclical, mainly through holdings in supermarkets, was positive. Credit valuations are elevated against a constructive backdrop in terms of economic and corporate fundamentals. With a focus on security selection we continue to find selective opportunities. The UK faces economic headwinds, with Brexit negotiations likely to erode consumer and business confidence. The UK remains a flexible economy with good quality companies and banks, and investors can benefit from any additional risk premia from solid business models. Many UK businesses generate a large part of their revenue internationally and are not reliant on domestic economic conditions. Please remember that past performance is not a guide to future performance and it might not be repeated. The value of investments and the revenue from them may go down as well as up and investors may not get back the amount originally invested. Because of this, you are not certain to make a profit on your investments and you may lose money. Investment career started in 1994 Joined Schroders in August 2012 as a Credit Portfolio Manager Prior to joining Schroders Alix worked for the following companies: 2011 UBS Global AM, Head of UK Fixed Interest 2009 UBS Global AM, Fund Manager UK Corporate Bonds 2008 UBS Global AM, Fund Manager Global Corporate Bonds 2006 SWIP, Fund Manager High Alpha UK Retail Corporate Bonds 2003 Gartmore, Fund Manager High Alpha UK Retail Corporate Bonds 1999 Standard Life Investments, Fund Manager Corporate Bonds 1994 Scottish Mutual (ANFIS), Fund Manager Corporate Bonds 1991 Scottish Mutual (ANFIS), Actuarial Trainee BSc (Hons) in Economic and Mathematics from University of Leeds 4

5 Risk Profile Risk and reward indicator The risk category was calculated using historical performance data and may not be a reliable indicator of the fund s future risk profile. The fund is in this category because it can take higher risks in search of higher rewards and its price may rise and fall accordingly. The fund s risk category is not guaranteed to remain fixed and may change over time. A fund in the lowest category does not mean a risk free investment. Specific risks The fund invests in assets which are exposed to currencies other than sterling. Exchange rates may cause the value of overseas investments and the revenue from them to rise or fall. The fund invests in higher yielding bonds (non-investment grade). The risk of default is higher with non-investment grade bonds than with investment grade bonds. Higher yielding bonds may also have an increased potential to erode your capital sum than lower yielding bonds. The fund invests in a wide range of derivatives in order to meet its investment objectives and for leverage. The use of leverage can increase gains as well as losses and expose the fund to increased risk. The fund uses derivatives for specific investment purposes. This involves a higher degree of risk and may lead to a higher volatility in the unit prices of the fund. The Manager employs a risk management process to allow the Manager to measure derivative and forward positions and their contribution to the overall risk profile of the fund. As part of this risk management process, the Manager conducts daily value at risk analysis of the fund and performs both stress and back testing of the fund. As a result of the Annual management charge for I Accumulation units being charged wholly to capital, the distributable revenue of the fund may be higher, but the capital value of the fund may be eroded which may affect future performance. For these reasons, the purchase of units should not normally be regarded as a short term investment. 5

6 Net Asset Value and Comparative Tables Financial year to 10 April I Accumulation units X Accumulation units Unit price range Highest Lowest Highest Lowest dealing dealing dealing dealing p p p p Financial period to 10 October Net revenue I Accumulation units X Accumulation units Financial year to 10 April pence per unit pence per unit Financial period to 10 October 2017 Nil Nil Net asset value Net asset Net asset value value per unit Number of As at 10 October 000 s p units in issue 2015 I Accumulation units 277, ,385,318 X Accumulation units 27, ,736, I Accumulation units 228, ,861,905 X Accumulation units 65, ,468, I Accumulation units 266, ,417,625 X Accumulation units 48, ,022, at 10 October I Accumulation units 273, ,169,043 X Accumulation units 118, ,033,884 6

7 Net Asset Value and Comparative Tables (continued) Fund performance Net asset Net asset value per unit value per unit p p as at as at % change I Accumulation units X Accumulation units Please remember that past performance is not a guide to future performance and it might not be repeated. The value of investments and the revenue from them may go down as well as up and investors may not get back the amount originally invested. Because of this, you are not certain to make a profit on your investments and you may lose money. 7

8 Portfolio Statement Euro Denominated Medium Term Bonds 0.75% ( %) Holding at Market Value % of net s assets LHC % Bonds , Petroleos Mexicanos 3.75% Notes ,090,000 1, Petroleos Mexicanos 4.875% Notes ,200,000 1, , Euro Denominated Long Term Bonds 1.09% ( %) Republic of Argentine 7.82% Bonds , UNIQA Insurance Group 6% Bonds , Repsol International Finance 4.5% Bonds ,100,000 1, Centrica 3% Notes , Groupama 6.375% Perpetual Bonds 700, Telefonica Europe 3.75% Perpetual Bonds 900, , Euro Denominated Derivatives (0.41)% ( (0.08)%) Forward to sell 6,138,447 for 5,408,284 (6,138,447) (77) (0.02) Euro BOBL Futures December 2017 (524) Euro BTP Futures December (4) 0.00 Euro Bund Futures December 2017 (146) (53) (0.01) Adecco Group 2017 Credit Default Swap Buy Protection ¹ 1,500,000 (3) 0.00 Compagnie Financiere Michelin 2019 Credit Default Swap Buy Protection ¹ 300,000 (5) 0.00 BP 2021 Credit Default Swap Buy Protection ¹ 1,180,000 (30) (0.01) Carrefour 2021 Credit Default Swap Buy Protection ¹ 1,880,000 (37) (0.01) ENI 2021 Credit Default Swap Buy Protection ¹ 1,540,000 (36) (0.01) Royal Dutch Shell 2021 Credit Default Swap Buy Protection ¹ 1,180,000 (34) (0.01) Standard Chartered Bank 2021 Credit Default Swap Buy Protection ¹ 1,930,000 (36) (0.01) 8

9 Portfolio Statement (continued) Euro Denominated Derivatives (continued) Holding at Market Value % of net s assets Total 2021 Credit Default Swap Buy Protection 1 1,180,000 (37) (0.01) Citigroup Standard Chartered Bank 2022 Credit Default Swap Buy Protection 1 152,201 (3) 0.00 itraxx Europe Crossover Series 28 Version Credit Default Index Swap Buy Protection 1 12,600,000 (1,394) (0.36) JPMorgan Standard Chartered Bank 2022 Credit Default Swap Buy Protection 1 1,850,000 (34) (0.01) Morgan Stanley Standard Chartered Bank 2022 Credit Default Swap Buy Protection 1 166,128 (2) 0.00 Heathrow Funding 2018 Credit Default Swap Sell Protection 1 2,375, SSE 2018 Credit Default Swap Sell Protection 1 335, Iberdrola 2021 Credit Default Swap Sell Protection 1 613, (1,620) (0.41) Sterling Denominated Short Term Bonds 2.19% ( %) J Sainsbury 1.25% Bonds ,500,000 1, Investec 4.5% Notes ,317,000 4, Investec Bank 9.625% Notes ,072,000 1, Mclaren Finance 5% Bonds ,081,000 1, , Sterling Denominated Medium Term Bonds 5.80% ( %) Anglian Water Osprey Financing 5% Notes , Ladbrokes Group Finance 5.125% Bonds ,050,000 2, William Hill 4.875% Bonds ,366,000 1, Gazprom OAO Via Gaz Capital 4.25% Bonds ,600,000 1, Unique Pub Finance 7.395% Notes , Virgin Media Finance 6.375% Notes , CYBG 3.125% Notes ,416,000 1,

10 Portfolio Statement (continued) Sterling Denominated Medium Term Bonds (continued) Holding at Market Value % of net s assets BUPA Finance 5% Notes , Morgan Stanley 2.625% Notes ,900,000 1, Shaftesbury Chinatown 2.348% Bonds ,366,000 2, Petrobras Global Finance 5.375% Notes ,080,000 1, Virgin Media Secured Finance 6.25% Notes , GKN Holdings 3.375% Notes ,330,000 3, LafargeHolcim Sterling Finance Netherlands 3% Notes ,580,000 3, Mitchells & Butlers Finance 6.469% Bonds , , Sterling Denominated Long Term Bonds 82.71% ( %) Arqiva Financing 4.882% Notes ,300,000 1, Canary Wharf Finance II 6.455% Bonds , Canary Wharf Finance II 6.8% Bonds , East Japan Railway 5.25% Notes , Northumbrian Water Finance 5.625% Bonds ,130,000 1, Telereal Securitisation % Bonds ,300,000 4, Telereal Securitisation % Bonds , Telereal Securitisation % Bonds , Annington Funding 3.685% Notes ,421,000 2, East Japan Railway 4.875% Notes , Electricite de France 6.125% Notes ,000,000 1, Greene King Finance 5.106% Bonds ,000 1, innogy Finance 4.75% Notes , Italy 5.25% Notes ,220,000 1, John Lewis 4.25% Bonds ,000,000 1,

11 Portfolio Statement (continued) Sterling Denominated Long Term Bonds (continued) Holding at Market Value % of net s assets Orange 5.625% Notes ,500,000 1, Petrobras Global Finance 6.625% Notes , Scotland Gas Network 4.875% Notes , Thames Water Utilities Cayman Finance 4.375% Notes , Verizon Communications 4.75% Notes ,600,000 1, Wal-Mart Stores 5.625% Notes ,000 1, British Land 5.264% Bonds , Greene King Finance % Bonds , Northern Electric Finance 5.125% Bonds , Northern Powergrid Yorkshire 5.125% Bonds , SNCF Reseau 5.25% Notes ,140,000 1, Wal-Mart Stores 5.25% Notes ,486,000 2, East Japan Railway 4.5% Notes , Eastern Power Networks 6.25% Notes , Wellcome Trust Finance 4.625% Bonds ,000 1, Anheuser-Busch InBev 2.85% Notes ,662,000 7, Arqiva Financing 5.34% Notes ,951,000 2, AT&T 3.55% Bonds ,092,000 1, Canary Wharf Finance II 5.952% Bonds , E.ON International Finance 5.875% Notes ,150,000 1, Electricite de France 5.5% Notes ,800,000 3, Enel 5.75% Notes ,282,000 1, Southern Electric Power Distribution 4.625% Bonds ,205,000 2, Thames Water Utilities Finance 5.125% Notes ,284,000 2, Cadent Finance 2.625% Notes ,370,000 5, Goldman Sachs Group 6.875% Notes ,205,000 4, High Speed Rail Finance % Notes ,012,000 6,

12 Portfolio Statement (continued) Sterling Denominated Long Term Bonds (continued) Holding at Market Value % of net s assets HSBC Holdings 7% Notes ,000,000 4, Southern Water Services Finance 4.5% Notes , SSE 6.25% Notes ,180,000 1, Citigroup 7.375% Notes ,128,000 6, E.ON International Finance 6.75% Notes ,200,000 4, European Investment Bank 5% Bonds ,236,000 7, Gatwick Funding 5.75% Notes ,830,000 3, GlaxoSmithKline Capital 6.375% Notes ,785,000 2, innogy Finance 6.125% Notes ,900,000 7, Vattenfall 6.875% Notes ,800,000 5, Wal-Mart Stores 4.875% Bonds ,922,000 2, Yorkshire Water Services Bradford Finance 6.375% Notes ,596,000 2, Aspire Defence Finance A 4.674% Bonds ,234,160 5, AT&T 7% Notes ,350,000 4, DONG Energy 5.75% Notes ,962,000 5, Enel Finance International 5.75% Notes ,640,000 6, Lloyds Bank 6.5% Notes ,890,000 4, Northern Gas Networks Finance 5.625% Notes ,642,000 2, Southern Gas Networks 6.375% Notes ,231,000 1, Western Power Distribution (East Midlands) 6.25% Notes , Western Power Distribution (South Wales) 5.75% Notes , Western Power Distribution (South West) 5.75% Notes , Electricite de France 5.5% Notes ,200,000 6, HSBC Bank 6.25% Notes , Southern Water Services Finance 5% Notes ,000 1, Thames Water Utilities Cayman Finance 5.5% Notes ,566,000 2, Apple 3.6% Notes ,990,000 2,

13 Portfolio Statement (continued) Sterling Denominated Long Term Bonds (continued) Holding at Market Value % of net s assets BHP Billiton Finance 4.3% Notes ,400,000 1, Northumbrian Water Finance 5.125% Notes , Severn Trent Utilities Finance 4.875% Notes ,933,000 2, Siemens Financieringsmaatschappij 3.75% Notes ,100,000 2, Tesco 4.875% Notes ,891,000 3, Transport for London 3.875% Notes ,000,000 3, Allianz Finance II 4.5% Notes ,300,000 1, AT&T 4.25% Bonds ,340,000 1, Gatwick Funding 6.5% Notes , Heathrow Funding 5.875% Notes ,200,000 3, RL Finance Bonds No % Bonds ,069,000 2, AT&T 4.875% Bonds ,780,000 3, Centrica 4.25% Notes ,910,000 3, European Investment Bank 4.5% Bonds ,799,000 8, GlaxoSmithKline Capital 4.25% Notes ,389,000 1, Hiscox 6.125% Bonds ,200,000 1, Cadent Finance 2.75% Notes ,669,000 4, Heathrow Funding 4.625% Notes ,552,000 5, Thames Water Utilities Cayman Finance 4.625% Notes ,180,000 2, Annington Funding 3.935% Notes ,365,000 4, Notting Hill Housing Trust 3.25% Bonds ,673,000 1, Aviva 4.374% Notes , Channel Link Enterprises Finance 3.848% Bonds ,458,000 2, Orange 5.375% Notes ,000,000 5, LCR Finance 5.1% Bonds ,790,000 6, Southern Water Services Finance 4.5% Bonds , AXA 5.625% Notes ,993,000 5, European Investment Bank 4.625% Bonds ,481,000 12,

14 Portfolio Statement (continued) Sterling Denominated Long Term Bonds (continued) Holding at Market Value % of net s assets Prudential 5% Notes ,166,000 4, Dwr Cymru Financing 4.473% Notes , Tesco 5.2% Notes ,900,000 4, Aviva 6.875% Notes ,507,000 4, Thames Water Utilities Cayman Finance 7.738% Notes ,955,000 3, Treasury 4% Stock ,366,289 5, Treasury 3.5% Stock ,981,762 4, NGG Finance 5.625% Bonds ,074,000 2, Enel 7.75% Bonds ,000 1, SSE 3.625% Bonds ,000,000 1, Electricite de France 6% Notes ,300,000 1, Mexico 5.625% Notes ,141,000 2, Assicurazioni Generali 6.416% Perpetual Bonds 3,800,000 4, Aviva % Perpetual Notes 2,001,000 2, AXA 5.453% Perpetual Notes 841, Bank of Scotland Capital Funding 7.754% Perpetual Bonds 1,403,000 1, Barclays Bank 5.33% Perpetual Bonds 2,090,000 2, Electricite de France 6% Perpetual Notes 1,900,000 2, J Sainsbury 6.5% Perpetual Bonds 900, Orange 5.75% Perpetual Notes 1,112,000 1, SSE 3.875% Perpetual Bonds 2,617,000 2, Telefonica Europe 6.75% Perpetual Bonds 2,100,000 2, , Sterling Denominated Derivatives 0.11% ( %) Long Gilt Futures December (2,319) (0.59) Citigroup Interest Rate Swap receive 2.472% pay % 1 8,770,000 1, Royal Bank of Scotland Interest Rate Swap receive 2.443% pay % 1 10,810,000 1, Citigroup Interest Rate Swap receive % pay % 1 9,000,000 (3,112) (0.79) 14

15 Portfolio Statement (continued) Sterling Denominated Derivatives (continued) Holding at Market Value % of net s assets Goldman Sachs Interest Rate Swap receive 3.355% pay % 1 1,300, Morgan Stanley Interest Rate Swap receive % pay % 1 8,250,000 3, BNP Paribas Interest Rate Swap receive 3.229% pay % 1 2,325, Morgan Stanley Interest Rate Swap receive % pay 1.397% 1 1,533, Royal Bank of Scotland Interest Rate Swap receive % pay % 1 2,500,000 (1,210) (0.31) US Dollar Denominated Short Term Bonds 0.59% ( %) Atento Luxco % Notes 2022 US$2,059,000 1, Petrobras Global Finance 6.125% Notes 2022 US$818, , US Dollar Denominated Medium Term Bonds 0.63% ( %) SFR Group 7.375% Notes 2026 US$1,855,000 1, Koninklijke KPN 8.375% Bonds 2030 US$919, , US Dollar Denominated Long Term Bonds 1.76% ( %) Freeport-McMoRan 5.4% Notes 2034 US$160, Centrica 5.375% Notes 2043 US$1,000, Bank of America 5% Notes 2044 US$530, Petrobras Global Finance 7.25% Notes 2044 US$1,572,000 1, Mexico City Airport Trust 5.5% Bonds 2046 US$3,200,000 2, Republic of Argentine 7.625% Bonds 2046 US$300,

16 Portfolio Statement (continued) US Dollar Denominated Long Term Bonds (continued) Holding at Market Value % of net s assets Petroleos del Peru 5.625% Bonds 2047 US$318, Enel 8.75% Bonds 2073 US$331, Friends Life Holdings 7.875% Perpetual Notes US$1,218, , US Dollar Denominated Derivatives (0.09)% ( (0.29)%) Forward to sell US$14,678,053 for 10,808,780 US$(14,678,053) (315) (0.08) US Long Bond Futures December 2017 (41) US 10 Year Ultra Bond Futures December (16) (0.01) Citigroup Japan 2017 Credit Default Swap Buy Protection 1 US$3,300,000 (6) 0.00 Credit Suisse Japan 2017 Credit Default Swap Buy Protection 1 US$1,500,000 (3) 0.00 BNP Paribas Lowe s Companies 2018 Credit Default Swap Buy Protection 1 US$1,078,000 (4) 0.00 Johnson Controls 2018 Credit Default Swap Buy Protection 1 US$3,615,000 (26) (0.01) JPMorgan Lowe s Companies 2018 Credit Default Swap Buy Protection 1 US$1,122,000 (4) 0.00 BNP Paribas Mondelez International 2020 Credit Default Swap Buy Protection 1 US$755,000 (13) 0.00 JPMorgan Mondelez International 2020 Credit Default Swap Buy Protection 1 US$770,000 (14) 0.00 JPMorgan Inflation Linked Swap receive 0% pay % 1 US$26,380,000 (21) (0.01) (349) (0.09) Portfolio of investments 2 373, Net other assets 19, Net assets attributable to unitholders 392,

17 Portfolio Statement (continued) Market Value % of net 000 s assets Investment grade securities 314, Below Investment grade securities 40, Unrated securities 19, Total debt securities 374, Unless otherwise stated the above securities are admitted to official stock exchange listings or traded on a regulated market. 1 Over the counter derivative instruments not listed on recognised exchanges. 2 Including derivative liabilities. 17

18 Summary of Portfolio Transactions Largest purchases Largest sales Cost For the six months ended 10 October s European Investment Bank 4.625% Bonds ,411 Anheuser-Busch InBev 2.85% Notes ,629 European Investment Bank 4.5% Bonds ,469 Annington Funding 3.935% Notes ,413 Heathrow Funding 4.625% Notes ,040 LafargeHolcim Sterling Finance Netherlands 3% Notes ,516 Treasury 3.25% Stock ,474 Centrica 4.25% Notes ,445 GKN Holdings 3.375% Notes ,319 High Speed Rail Finance % Notes ,049 Proceeds For the six months ended 10 October s European Investment Bank 5.625% Bonds ,113 Treasury 0.5% Stock ,719 Treasury 3.25% Stock ,611 E.ON International Finance 6.375% Notes ,198 Western Power Distribution West Midlands 5.75% Notes ,081 Ziggo Secured Finance 4.25% Bonds ,676 Imperial Brands Finance 4.875% Notes ,629 Telefonica Emisiones 5.375% Notes ,584 Treasury 4.5% Stock ,506 Tesco 5.125% Notes ,041 18

19 Statement of the Manager s Responsibilities The Financial Conduct Authority s Collective Investment Schemes sourcebook (COLL) requires the Manager to prepare accounts for each annual and half yearly accounting period, in accordance with United Kingdom Generally Accepted Accounting Practice, which give a true and fair view of the financial position of the fund and of its net revenue and the net capital losses on the property of the fund for the period. In preparing the accounts 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 (SORP) for UK Authorised Funds issued by the Investment Management Association (IMA (now the Investment Association (IA))) in May 2014; follow generally accepted accounting principles and applicable accounting standards; prepare the accounts on the basis that the fund will continue in operation unless it is inappropriate to do so; keep proper accounting records which enable it to demonstrate that the accounts as prepared comply with the above requirements; make judgements and estimates that are prudent and reasonable. The Manager is responsible for the management of the fund in accordance with its Trust Deed, the Prospectus and the COLL, and for taking reasonable steps for the prevention and detection of fraud, error and non-compliance with law or regulations. The Manager s report and accounts for the period ended 10 October 2017 were signed on 24 November 2017 on behalf of the Manager by: J.A. Walker-Hazell Directors R.E. Stoakley 19

20 Statement of Total Return (unaudited) For the six months ended 10 October s 000 s 000 s 000 s Income Net capital (losses)/gains (5,504) 32,709 Revenue 7,456 6,687 Expenses (386) (365) Net revenue before taxation 7,070 6,322 Taxation 0 0 Net revenue after taxation 7,070 6,322 Total return before distributions 1,566 39,031 Distributions 772 (12) Change in net assets attributable to unitholders from investment activities 2,338 39,019 Statement of Change in Net Assets Attributable to Unitholders (unaudited) For the six months ended 10 October s 000 s 000 s 000 s Opening net assets attributable to unitholders 315, ,559 Amounts receivable on issue of units 81,415 9,383 Amounts payable on cancellation of units (7,140) (17,523) 74,275 (8,140) Dilution adjustment Change in net assets attributable to unitholders from investment activities 2,338 39,019 Closing net assets attributable to unitholders 392, , The Opening net assets attributable to unitholders for the current period do not equal the Closing net assets attributable to unitholders for the comparative period as they are not consecutive periods. 20

21 Balance Sheet (unaudited) As at 10 October s 000 s Assets Investments 382, ,140 Current assets Debtors 9,843 5,359 Cash and bank balances 11,760 8,082 Total assets 403, ,581 Liabilities Investment liabilities (8,848) (6,761) Creditors Bank overdrafts (610) (221) Other creditors (1,872) (102) Total liabilities (11,330) (7,084) Net assets attributable to unitholders 392, ,497 21

22 Notes to the Accounts (unaudited) Basis of preparation The accounts have been prepared under the historical cost basis, as modified by the revaluation of investments, and in accordance with the SORP for UK Authorised Funds issued by the IMA in May 2014 and 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)). Accounting policies The accounting policies applied are consistent with those of the annual accounts for the year ended 10 April 2017 and are described in those annual accounts. 22

23 General Information Manager Schroder Unit Trusts Limited 31 Gresham Street London EC2V 7QA Authorised and regulated by the Financial Conduct Authority Registrar Schroder Unit Trusts Limited 31 Gresham Street London EC2V 7QA Authorised and regulated by the Financial Conduct Authority Investment Adviser Schroder Investment Management Limited 31 Gresham Street London EC2V 7QA Authorised and regulated by the Financial Conduct Authority Trustee J.P. Morgan Europe Limited Chaseside Bournemouth BH7 7DA Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority Administration Details Schroders FREEPOST RLTZ-CHSY-HBUT PO Box 1102 Chelmsford Essex CM99 2XX Investor Services Dealing Fax Independent Auditors PricewaterhouseCoopers LLP Atria One 144 Morrison Street Edinburgh EH3 8EX Authorisation The fund is an authorised unit trust and is constituted pursuant to the COLL and is structured as a trust. The fund is a UCITS scheme for the purpose of the categorisation of the COLL. 23

24 For further literature please contact Schroder Investor Services on or at or visit our website at Issued in November 2017 by Schroder Unit Trusts Limited, 31 Gresham Street, London EC2V 7QA. Registered No: England. Authorised and regulated by the Financial Conduct Authority. w35641