INDEX LINKED GILTS UNIT TRUST

Transcription

1 INDEX LINKED GILTS UNIT TRUST FOR THE PERIOD ENDED 30 SEPTEMBER 2012

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3 Manager St. James's Place Unit Trust Group Limited P.O. Box 9034, Chelmsford, CM99 2XA United Kingdom Freephone: (Authorised and regulated by the Financial Services Authority) Directors of the Manager D. C. Bellamy I. S. Gascoigne A. M. Croft D. J. Lamb Secretary of the Manager St. James's Place Administration Limited Investment Adviser BlackRock Investment Management (UK) Limited 12 Throgmorton Avenue London, EC2N 2DL United Kingdom (Authorised and regulated by the Financial Services Authority) Trustee BNY Mellon Trust & Depositary (UK) Limited 160 Queen Victoria Street London, EC4V 4LA United Kingdom (Authorised and regulated by the Financial Services Authority) Registrar International Financial Data Services (UK) Limited IFDS House St. Nicholas Lane Basildon, SS15 5FS United Kingdom (Authorised and regulated by the Financial Services Authority) Auditor PricewaterhouseCoopers LLP Erskine House Queen Street Edinburgh, EH2 4NH 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 P.O. Box 9034, Chelmsford CM99 2XA. Freephone:

4 Report of the Manager During the period under review, 10 April 2012 to 30 September 2012, the St. James's Place Index Linked Gilts Unit Trust Income unit offer price rose by 0.1% from 100.0p to 100.1p and the Accumulation unit offer price (in which revenue is reflected in the price rather than distributed) rose by 0.3% from 100.0p to 100.3p. On the 15 November 2012, the latest available date before the printing of this report, the Income unit offer price was 100.2p and the Accumulation unit offer price was 100.8p. The estimated yield was 1.40%. The Trust's Performance The performance of the Trust since its launch in April 2012 is shown below, together with figures for the most commonly quoted indices in comparable markets where the major proportion of the Trust has been invested. St. James's Place Index Linked Gilts Unit Trust Income units (offer to offer) Accumulation units (offer to offer) Indices - actual FTSE British Government Index Linked < 5 Years index FTSE British Government Index Linked 5-15 Years index Source: Lipper for Fund returns 10/04/12 to 30/09/12 % change REMEMBER THAT THE PRICE OF UNITS AND REVENUE FROM THEM MAY GO DOWN AS WELL AS UP. PLEASE BE AWARE THAT PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE PERFORMANCE. Investment Adviser's Comments The real yield on index-linked bonds increased during the reporting period. The 10-year real yield only increased by 0.03% but the 5 and 30-year real yields increased by 0.12% and 0.23% respectively. By contrast, conventional government bond yields fell. As a result, the break even inflation rate for 10-year bonds fell from around 2.75% to 2.44% over the period. Real yields remain in negative territory for maturities up to 15 years. Inflation has fallen significantly during the period, the CPI inflation rate for March was reported at 3.5% with the RPI inflation rate at 3.6%. By August (data reported in September) these figures had fallen to 2.5% for CPI and 2.9% for RPI. Broader domestic and international economic data releases were generally weaker than expected for most of the review period and expectations on growth were revised down. Both first and second quarter GDP growth was negative. The release of the first quarter GDP growth confirmed that the UK economy had fallen back into recession. The first estimate of second quarter GDP growth reported a decline of 0.7% which, although affected by holidays and subsequently revised higher, was significantly weaker than expected. The Bank of England s Monetary Policy Committee left the Bank Rate unchanged at 0.5% during the period but did vote to increase the Quantitative Easing programme by an additional 50bn to 375bn at its July meeting. In September, the Consumer Prices Advisory Committee announced a consultation on possible changes to the calculation methodology for the Retail Prices Index (RPI), which is the measure of inflation used to index payments for index-linked gilts. A range of options are available, including no change, which could lead to a potentially significant reduction in the measured RPI inflation rate. BlackRock Investment Management (UK) Limited 12 October

5 Performance Record The St. James's Place Index Linked Gilts Unit Trust was first offered on 10 April 2012 at an offer price of p per unit. Unit Price History Calendar year 2012* Income Accumulation Highest Lowest Highest Lowest Offer Bid Offer Bid p p p p Distributions The record of net distributions paid/payable per unit is shown below: Income Accumulation Net revenue distributed Net revenue distributed per 1,000 per 1,000 Invested Invested per unit at 10/04/12 per unit at 10/04/12 Calendar year p p 2012* Net Asset Values Year ended March 2012* Units in Issue Units in Issue Market NAV per Unit NAV per Unit Income Accumulation NAV of Trust Income Accumulation '000 p p 3,261,453 35,882,078 37, Ongoing Charges The Ongoing Charges Figure for the period ended 30 September 2012 was 1.27%. From July 2012, following the modification to the Financial Service Authority s regulations for Non-UCITS unit trusts, the Total Expense Ratio (TER) has been replaced by an Ongoing Charges Figure (OCF). Both figures aim to provide an indication of the annual operating expenses of the unit trust, the main difference between them is that the OCF additionally includes certain portfolio transaction based fees charged by the custodian. Risk and Reward Profile The synthetic risk and reward indicator for the St. James s Place Index Linked Gilts Unit Trust, as disclosed in its most recent Non-UCITS retail scheme Key Investor Information Document (NURS- KIID), is a 4. It was calculated using performance data up to 31 May The risk category is recalculated weekly and in the period from 31 May 2012 to 30 September 2012, the risk category did not change. * To 30 September

6 Investment Assets as at 30 September 2012 (unaudited) Security Holdings Market Value 000 % of Net Assets UK GOVERNMENT INDEX LINKED GILTS 37, UK Treasury Index Linked 2.5% 16/08/2013 2,910,350 8, UK Treasury Index Linked 2.5% 26/07/2016 3,076,850 10, UK Treasury Index Linked 1.25% 22/11/2017 2,570,410 3, UK Treasury Index Linked 2.5% 16/04/2020 1,384,880 5, UK Treasury Index Linked 1.875% 22/11/2022 3,368,410 5, UK Treasury Index Linked 2.5% 17/07/2024 1,434,950 4, Investment assets 37, Total other assets (net) Net assets 37, All investments are approved securities as defined in the Collective Investment Schemes sourcebook unless otherwise stated. UK Government Gilts are all rated as investment grade. 4

7 Material Portfolio Changes Cost Purchases 000 UK Treasury Index Linked 2.5% 26/07/ ,729 UK Treasury Index Linked 2.5% 16/08/2013 8,245 UK Treasury Index Linked 2.5% 16/04/2020 5,105 UK Treasury Index Linked 1.875% 22/11/2022 5,086 UK Treasury Index Linked 2.5% 17/07/2024 4,803 UK Treasury Index Linked 1.25% 22/11/2017 3,732 Proceeds Sales 000 UK Treasury Index Linked 2.5% 26/07/ UK Treasury Index Linked 1.875% 22/11/ UK Treasury Index Linked 1.25% 22/11/ UK Treasury Index Linked 2.5% 16/08/ UK Treasury Index Linked 2.5% 17/07/

8 Statement of Total Return for the period 10 April 2012 to 30 September 2012 (unaudited) Income Net capital losses Revenue Expenses Finance costs: Interest Net revenue before taxation Taxation Net revenue after taxation Total return before distributions Finance costs: Distributions Change in net assets attributable to unitholders from investment activities 10/04/12 to 30/09/ (123) (87) 81 (6) (183) (189) Statement of Change in Net Assets Attributable to Unitholders for the period 10 April 2012 to 30 September 2012 (unaudited) Assets transferred from St. James's Place Index Linked Gilts Exempt Managed Fund Assets transferred from St. James's Place Index Linked Gilts Offshore Managed Fund Movement due to creation and cancellation of units: Amounts receivable on creation of units Amounts payable on cancellation of units Change in net assets attributable to unitholders from investment activities (see above) Retained distribution on accumulation units Closing net assets attributable to unitholders 10/04/12 to 30/09/ ,087 (256) 3,961 2,026 31,831 (189) ,811 The prices per unit as at 28 September 2012 (unaudited) were: Income units Accumulation units Bid Offer p p

9 Balance Sheet as at 30 September 2012 (unaudited) Assets Investment assets Debtors Cash and bank balances Total other assets Total assets 30/09/ , Liabilities Creditors (1,195) Distribution payable on income units Total liabilities Net assets attributable to unitholders Accounting and Distribution policies (12) 37,383 1,635 39,018 (1,207) 37,811 for the period 10 April 2012 to 30 September 2012 (unaudited) Basis of accounting The interim financial statements have been prepared under the historical cost basis, as modified by the revaluation of investments, and in accordance with the Statement of Recommended Practice (SORP) for Financial Statements of Authorised Funds issued by the Investment Management Association (IMA) in October 2010 (the IMA SORP 2010). Directors' Certificate This report is certified in accordance with the requirements of the rules in the Financial Services Authority's Collective Investment Schemes Sourcebook. Directors A. M. Croft London D. J. Lamb 19 November

10 Distribution Tables Distributions in pence per unit Group 1 First interim Units purchased prior to 10 April 2012 Second interim Units purchased prior to 1 July 2012 Group 2 First interim Units purchased on or after 10 April 2012 to 30 June 2012 Second interim Units purchased on or after 1 July 2012 to 30 September 2012 Income Gross revenue Income tax Net revenue Equalisation Distributions paid to/ payable 30/11/12 Group 1 (p) (p) (p) (p) (p) First interim Second interim Group 2 (p) (p) (p) (p) (p) First interim Second interim Accumulation Gross revenue Income tax Net revenue Equalisation Distributions paid to/ payable 30/11/12 Group 1 (p) (p) (p) (p) (p) First interim Second interim Group 2 (p) (p) (p) (p) (p) First interim Second interim All distributions are interest distributions and consist of 100% unfranked income. 8

11 General Information The Trust St. James's Place Index Linked Gilts Unit Trust is an authorised Unit Trust scheme under section 243 of the Financial Services and Markets Act (2000) and is constituted by a Trust Deed dated 12 March The Unit Trust is subject to the rules of the Financial Services Authority's Collective Investment Scheme Sourcebook and is classified as a Non-UCITS retail scheme. The Trust Manager The Manager of the Trust is St. James's Place Unit Trust Group Limited which is a member of the IMA and is authorised and regulated by the Financial Services Authority. Investment Objectives The investment objective of the Scheme is to provide a combination of growth and income, by investing primarily in a portfolio of UK index linked gilts. The Scheme may also invest in other, non-uk, highly rated government backed index linked securities, and is also permitted to invest in other types of transferable securities, units and/or shares in collective investment schemes (including unregulated schemes such as hedge funds), money market instruments, cash and near cash, deposits, and derivatives and forward transactions 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. Non-Resident Unitholders - European Union Savings Directive Unitholders resident in most European Union countries (not UK) should be aware that the Trust is covered by the European Union Savings Directive, which came into force on 1 July The Manager is required to identify and report your distributions to the UK tax authorities, who are in turn required to pass this information to most other European Union national tax authorities. 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, P.O. 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 the dealing day, 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. Telephone instructions are not accepted for ISA wrapped investments or the Unit Trust Investment Plan (Regular Premium Unit Trust). A contract note confirming the subscription or redemption price and the number of units involved will be forwarded, together with a cancellation notice, where appropriate, on the next business day. The most recent issue and redemption prices will be published in the Daily Telegraph and on the Manager's website: Minimum Investment The minimum lump sum investment is 1,500, thereafter the minimum additional investment is 1,000. The minimum monthly investment to the Unit Trust Investment Plan is 150 and the minimum monthly increment is 50. The minimum annual investment to the Unit Trust Investment Plan is 1,500 and the minimum annual increment is 500. Management Charges The Trust Deed permits the following management charges which are receivable by the Manager: (a) A Preliminary Charge of 3.75 per cent which is included in the offer price of the Units. (b) An Annual Management Charge at a rate of 1 per cent of the value of the Trust. 9

12 General Information (continued) Income Distributions Income distributions are made quarterly on or before 28 February, 31 May, 31 August and 30 November each year. Accumulation Distributions Revenue due to accumulation unitholders is reflected in the price of their units. Tax Vouchers Income unitholders that receive income distributions by direct credit and accumulation unitholders (where the distribution income is reinvested) receive an annual consolidated tax voucher in May with all the relevant payment and tax information required to complete a tax return. Tax vouchers will be enclosed if income unitholders receive payment by cheque. Report A report is sent semi-annually to all unitholders on or before 31 May and 30 November each year. Capital Gains Tax The Trust is not liable to tax on capital gains and an individual holding units will not be liable to capital gains tax unless the total chargeable gains for the tax year 2012/2013 exceed 10,600. 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

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16 UK members of the St. James s Place Wealth Management Group are authorised and regulated by the Financial Services Authority. St. James s Place Unit Trust Group Limited: Registered Office St. James s Place House, 1 Tetbury Road, Cirencester, Gloucestershire GL7 1FP United Kingdom. Registered in England Number Perivan Financial Print Index Linked Gilts (11/12)