INDEX LINKED GILTS UNIT TRUST

Transcription

1 INDEX LINKED GILTS UNIT TRUST FOR THE PERIOD ENDING 30 SEPTEMBER 2016

2 Manager St. James's Place Unit Trust Group Limited PO Box 9034, Chelmsford, CM99 2XA United Kingdom Freephone: (Authorised and regulated by the Financial Conduct Authority) Directors of the Manager D. C. Bellamy A. M. Croft I. S. Gascoigne D. J. Lamb Investment Adviser BlackRock Investment Management (UK) Limited 12 Throgmorton Avenue London, EC2N 2DL United Kingdom (Authorised and regulated by the Financial Conduct Authority) Trustee BNY Mellon Trust & Depositary (UK) Limited 160 Queen Victoria Street London, EC4V 4LA United Kingdom (Authorised and regulated by the Financial Conduct Authority) Registrar International Financial Data Services (UK) Limited IFDS House St. Nicholas Lane Basildon, SS15 5FS United Kingdom (Authorised and regulated by the Financial Conduct Authority) Independent Auditor PricewaterhouseCoopers LLP Atria One 144 Morrison Street Edinburgh, EH3 8EX United Kingdom Prospectus and Manager's Reports Copies of the up to date Prospectus (Scheme Particulars) and latest Manager's Report and Financial Statements for the range of St. James's Place Unit Trusts can be requested from a member of the St. James's Place Partnership or, at any time during normal business hours, from the Administration Centre at PO Box 9034, Chelmsford CM99 2XA. Freephone:

3 Report of the Manager 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 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 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 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, money market instruments, cash and near cash, and deposits. The Scheme is permitted to invest in 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. The Trust's Performance The performance of the Trust since its launch in April 2012 and over the period under review is shown below, together with figures for the most commonly quoted indices in comparable markets where the major proportion of the Trust has been invested. St. James's Place Index Linked Gilts Unit Trust units (offer to offer) Accumulation units (offer to offer) Gross units (offer to offer)* Gross Accumulation units (offer to offer)* Indices - actual FTSE British Government Index Linked Gilts < 5 Years (Total Return) FTSE British Government Index Linked Gilts 5-15 Years (Total Return) 10/04/12 to 31/03/16 to 30/09/16 30/09/16 % change % change * Class Gross and Accumulation units were made available on 06 October 2014 and the performance shown is from that date. Source: FTSE International Limited ( FTSE ) FTSE FTSE is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under licence. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE s express written consent. 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. 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 Key Investor Information Document (KIID), is a 3. It was calculated using performance data up to 31 May The risk category is recalculated weekly and during the period under review, the risk category did not change. 2

4 Report of the Manager Investment Adviser's Comments (continued) Global bond markets were volatile over the reporting period. The yield on 10-year gilts rose to a peak of 1.67% on 26 April before trending lower to end September at 0.75%. Leading up to the UK referendum, concerns over the outcome superseded fears about the slowdown in China and collapsing commodity prices. In May, the Bank of England (BoE) cut the UK's growth forecast for the year to 2.0% from the 2.2% projected in February, reflecting how referendum-related uncertainty was already weighing on the economy. The leave vote took markets by surprise with risk assets falling sharply in the immediate aftermath while sterling plunged more than 10% intraday in a record one-day drop that took the currency to levels not seen since A flight to safety following the result saw sovereign bond yields decline sharply. The momentous moves in bond markets saw 10-year yields turn negative in Germany ahead of the referendum and plunge below 1% in the UK following the result. In a bid to address fears of an economic slowdown, in August the BoE delivered a stimulus package that included additional government and corporate bond purchases; it also cut its interest rate for the first time since 2009 to 0.25%; the lowest level in its 322-year history. Although the rate cut was anticipated, another bout of quantitative easing was introduced earlier than generally expected and the 10bn corporate bond-buying package surprised markets. The corporate package came on top of an additional 60bn of government bond purchases, taking the total stock to 435bn. By the end of the period under review, the short-term economic fallout from Brexit appeared more benign than initially feared. Reflecting a swathe of positive data, forecast Q3 GDP growth was revised up to 0.3% compared to the 0.1% forecast in August. In September, the BoE kept interest rates on hold. The bank concluded that although asset prices and the housing market performed better than anticipated and business confidence rebounded faster than forecast it still expects Britain's growth rate to more than halve next year to 0.8% and the longer-term effects remain unclear. BlackRock Investment Management (UK) Limited 14 October

5 Comparative Table as at 30 September 2016 (unaudited) Net Asset Value and Ongoing Charges Figure 30/09/16 31/03/16 31/03/15 31/03/14 Closing net asset value ( 000) 3,967 4,650 5,021 11,820 Closing number of units 3,984,658 4,972,274 5,258,338 12,556,933 Closing net asset value per unit (p) Operating charges** 1.18% 1.16% 1.20% 1.18% 30/09/16 31/03/16 31/03/15 31/03/14 Accumulation Closing net asset value ( 000) 106,075 92,025 83,206 90,748 Closing number of units 102,104,757 94,395,104 84,556,435 94,317,461 Closing net asset value per unit (p) Operating charges** 1.18% 1.17% 1.20% 1.18% 30/09/16 31/03/16 31/03/15 Gross Closing net asset value ( 000) 14,959 14,882 14,078 Closing number of units 15,028,238 15,921,978 14,747,673 Closing net asset value per unit (p) Operating charges** 1.18% 1.16% 1.20% 30/09/16 31/03/16 31/03/15 Gross Accumulation Closing net asset value ( 000) 66,888 56,950 45,021 Closing number of units 64,203,715 58,220,703 45,726,720 Closing net asset value per unit (p) Operating charges** 1.18% 1.16% 1.20% **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 2016 (unaudited) Security Holdings Market Value 000 % of Net Assets UK GOVERNMENT INDEX LINKED GILTS (99.67%) 190, UK Treasury Index Linked 1.25% 22/11/ ,112,410 31, UK Treasury Index Linked 0.125% 22/11/ ,355,000 17, UK Treasury Index Linked 2.5% 16/04/ ,365,880 45, UK Treasury Index Linked 1.875% 22/11/ ,283,410 16, UK Treasury Index Linked 0.125% 22/03/2024 9,937,000 12, UK Treasury Index Linked 2.5% 17/07/2024 4,477,950 16, UK Treasury Index Linked 0.125% 22/03/2026 4,635,000 5, UK Treasury Index Linked 1.25% 22/11/2027 9,341,000 18, UK Treasury Index Linked 0.125% 22/03/2029 9,305,000 13, UK Treasury Index Linked 4.125% 22/07/2030 3,155,000 12, Investment Assets 190, Total other assets (net) Net assets 191, Comparative figures shown in brackets relate to 31 March All investments are approved securities as defined in the Collective Investment Schemes sourcebook unless otherwise stated. 5

7 Material Portfolio Changes Cost Purchases 000 UK Treasury Index Linked 2.5% 16/04/ ,285 UK Treasury Index Linked 1.25% 22/11/ ,687 UK Treasury Index Linked 0.125% 22/11/2019 7,090 UK Treasury Index Linked 0.125% 22/03/2026 2,159 UK Treasury Index Linked 2.5% 17/07/2024 1,368 UK Treasury Index Linked 1.25% 22/11/2027 1,253 UK Treasury Index Linked 4.125% 22/07/2030 1,085 UK Treasury Index Linked 1.875% 22/11/ UK Treasury Index Linked 0.125% 22/03/ UK Treasury Index Linked 0.125% 22/03/ Proceeds Sales 000 UK Treasury Index Linked 2.5% 26/07/ ,249 UK Treasury Index Linked 2.5% 17/07/2024 1,283 UK Treasury Index Linked 4.125% 22/07/2030 1,098 UK Treasury Index Linked 1.25% 22/11/2027 1,033 UK Treasury Index Linked 0.125% 22/03/ UK Treasury Index Linked 1.875% 22/11/ UK Treasury Index Linked 0.125% 22/03/ UK Treasury Index Linked 1.25% 22/11/ UK Treasury Index Linked 0.125% 22/03/

8 Statement of Total Return for the period 01 April 2016 to 30 September 2016 (unaudited) Net capital gains/(losses) Revenue Expenses Interest payable and similar charges Net (expenses)/revenue before taxation Taxation Net (expenses)/revenue after taxation Total return before distributions Change in net assets attributable to unitholders from investment activities 01/04/16 to 30/09/16 01/04/15 to 30/09/ ,403 (2,813) (80) 1,562 (1,048) (927) - - (1,128) (1,128) ,275 (2,178) (84) (1,457) 11,191 (3,635) Statement of Change in Net Assets Attributable to Unitholders for the period 01 April 2016 to 30 September 2016 (unaudited) 01/04/16 to 30/09/16 01/04/15 to 30/09/ Opening net assets attributable to unitholders 168, ,325 Movement due to creation and cancellation of units: Amounts receivable on creation of units* 40,924 62,700 Amounts payable on cancellation of units* (28,808) (38,088) Change in net assets attributable to unitholders from investment activities (see above) Retained distribution on accumulation units Closing net assets attributable to unitholders 12,116 24,612 11,191 (3,635) 75 1, , ,465 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. *Prior year figures in relation to Dilution Levy have been reclassified and included within creations and cancellation of units as this was income and expenses arising from creations and cancellations respectively. 7

9 Balance Sheet as at 30 September 2016 (unaudited) Assets Investments Current assets Debtors Cash and bank balances Total assets Liabilities Creditors Distribution payable Other creditors Total liabilities Net assets attributable to unitholders 30/09/16 31/03/ , ,959 1, , ,858 - (113) (278) (238) (278) (351) 191, ,507 Accounting and Distribution policies for the period 01 April 2016 to 30 September 2016 (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 changes in the SORP 2014 are presentational only and there have been no changes to any figures detailed with the financial statements. 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. A. M. Croft D. J. Lamb 25 November

10 Distribution Tables in pence per unit Group 1 Group 2 First interim Units purchased prior to 1 April 2016 Second interim Units purchased prior to 1 July 2016 First interim Units purchased on or after 1 April 2016 to 30 June 2016 Second interim Units purchased on or after 1 July 2016 to 30 September 2016 Gross revenue tax Net revenue Equalisation paid to/ payable 30/11/16 paid to 30/11/15 Group 1 (p) (p) (p) (p) (p) (p) First interim Second interim Group 2 (p) (p) (p) (p) (p) (p) First interim Second interim Accumulation Gross revenue tax Net revenue Equalisation paid to/ payable 30/11/16 paid to 30/11/15 Group 1 (p) (p) (p) (p) (p) (p) First interim Second interim Group 2 (p) (p) (p) (p) (p) (p) First interim Second interim Gross Gross revenue tax Net revenue Equalisation paid to/ payable 30/11/16 paid to 30/11/15 Group 1 (p) (p) (p) (p) (p) (p) First interim Second interim Group 2 (p) (p) (p) (p) (p) (p) First interim Second interim Gross Accumulation Gross revenue tax Net revenue Equalisation paid to/ payable 30/11/16 paid to 30/11/15 Group 1 (p) (p) (p) (p) (p) (p) First interim Second interim Group 2 (p) (p) (p) (p) (p) (p) First interim Second interim

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 will be published on the Manager's website: and are available by calling the Administration Centre on Minimum Investment The minimum lump sum investment is 1,500, thereafter the minimum additional investment is 1,000. The minimum monthly investment is 150 and the minimum monthly increment is 50. The minimum annual investment is 1,500 and the minimum annual increment is 500. Renaming of Unit Classes On 10 October 2016 the Manager denominated the existing unit class in the fund as Class L units. This change will have no impact on the way in which the fund is managed or how daily unit prices are calculated. H & Y Unit Classes On 10 October 2016 the Manager launched Class H and Class Y accumulation unit classes. Restrictions apply to all Class H and Class Y units, please see the Prospectus for details. Management Charges The Trust Deed permits the following management charges which are receivable by the Manager: (a) (b) A Preliminary Charge of 5 per cent which is included in the offer price of the Units. An Annual Management Charge at a rate of 1.12 per cent of the value of the Trust. distributions are made quarterly on or before the 28 February, 31 May, 31 August and 30 November. Accumulation Revenue due to accumulation unitholders is reflected in the price of their units. Tax Vouchers 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. 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 2016/2017 exceed 11,100 (2015/ ,100). 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 Index Linked Gilts (11/16)