ETHICAL UNIT TRUST FOR THE PERIOD ENDED 30 SEPTEMBER 2018

Transcription

1 ETHICAL UNIT TRUST FOR THE PERIOD ENDED 30 SEPTEMBER 2018

2 Manager St. James's Place Unit Trust Group Limited PO Box 9034, Chelmsford, CM99 2XA United Kingdom Freephone: (Authorised and regulated by the Financial Conduct Authority) Directors of the Manager A. M. Croft I. S. Gascoigne C. G. Gentle D. J. Lamb Investment Adviser Aberdeen Asset Managers Limited 10 Queen Street Aberdeen, AB10 1YG United Kingdom (Authorised and regulated by the Financial Conduct Authority) Trustee National Westminster Bank Plc 250 Bishopsgate London, EC2M 4AA United Kingdom As part of an internal reorganisation, trustee and depositary services provided to the St. James s Place range of authorised unit trusts by National Westminster Bank plc will be transferred to the newly established NatWest Trustee and Depositary Services Limited. The change is scheduled to be completed by the end of December (Authorised and regulated by the Financial Conduct Authority) Registrar DST Financial Services Europe Limited DST House St. Nicholas Lane Basildon, SS15 5FS United Kingdom (Authorised and regulated by the Financial Conduct Authority) Independent Auditors PricewaterhouseCoopers LLP Atria One 144 Morrison Street Edinburgh, EH3 8EX United Kingdom Prospectus and Manager's Reports Copies of the up to date Prospectus (Scheme Particulars) and latest Manager's Report and Financial Statements for the range of St. James's Place Unit Trusts can be requested from a member of the St. James's Place Partnership or, at any time during normal business hours, from the Administration Centre at PO Box 9034, Chelmsford CM99 2XA. Freephone:

3 Report of the Manager The Report of the Manager consists of The Trust, Investment Objectives & Policy, The Trust's Performance, Risk and Reward Profile, Investment Adviser's Comments and Portfolio Statement. The Trust is an authorised Unit Trust scheme under section 243 of the Financial Services and Markets Act (2000) and is constituted by a Trust Deed dated 12 February 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. With effect from 19 November 2018, the name of the Scheme has been changed to the St. James s Place Sustainable & Responsible Equity Unit Trust. Investment Objectives & Policy The investment objective of the Scheme is to achieve capital appreciation over the medium to long term by investing worldwide in companies that meet generally accepted ethical criteria (a statement of the ethical investment principles is available on request). The Scheme will invest principally in equities and convertible stock and may hold fixed interest securities. In selecting assets, the Manager will not knowingly invest in any company, industry or country whose business or behaviour offends against generally accepted ethical criteria. The Scheme is permitted to invest in derivative and forward transactions for the purposes of efficient portfolio management (including hedging). Please note that the Investment Objectives & Policy of the Scheme were amended by an EGM of Unitholders on 17 October With effect from 19 November 2018, the Investment Objectives & Policy are now as follows: The investment objective of the Scheme is to achieve capital appreciation over the medium to long term by predominantly investing worldwide in companies which demonstrate strong environmental, social and governance credentials and are positioned to benefit from positive opportunities arising from the transition to a more sustainable global economy. The Scheme is also permitted to invest in other types of transferable securities, UK and overseas fixed interest and index linked securities, units and/or shares in other collective investment schemes, money market instruments, deposits and cash and near cash instruments. These typically make a small amount of the fund s assets. The Scheme is permitted to use derivative 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 1999, over the five year period since September 2013 and over the period under review is shown below. L Income units (offer to offer) L Accumulation units (offer to offer) H Accumulation units (offer to offer)* Y Accumulation units (offer to offer)* Source: Lipper for Fund returns 06/04/99 to 30/09/13 to 31/03/18 to 30/09/18 30/09/18 30/09/18 % change % change % change * Class H Accumulation and Y Accumulation units were made available on 1 December 2016 and the performance shown is from that date. REMEMBER THAT THE PRICE OF UNITS AND REVENUE FROM THEM MAY GO DOWN AS WELL AS UP. PLEASE BE AWARE THAT PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE PERFORMANCE. 2

4 Report of the Manager (continued) Risk and Reward Profile The synthetic risk and reward indicator for the S James's Ethical Unit Trust, as disclosed in its most recent Key Investor Information Document (KIID), is a 5. It was calculated using performance data up to 5 February The risk category is recalculated weekly and during the year under review, the risk category did not change. Investment Adviser's Comments Global equities rose as positive economic data spurred global stock markets higher in spite of a widening US-China trade rift. The US and its trading partners unleashed import duties in tit-fortat moves, but progress in a US-Canada-Mexico trade deal, and the restraint subsequently shown by the US and China cheered investors. Oil prices advanced as OPEC and Russia stood firm on production caps despite an expected supply shortfall. The fund rose, although it underperformed the broader market. Notably, the underweight to the surging US market detracted. Stock selection there also proved costly as the rally was driven by a narrow group of tech stocks, such as Apple, Amazon and Microsoft which we do not hold. Further hurting the fund was the overweight to Brazil, which was pressured by an extended strike by truckers and concerns over economic reforms. Our Brazilian holdings, lender Banco Bradesco and fuel distributor Ultrapar, fell in tandem with the broader market in spite of good operational performances. Conversely, our choice of stocks in Switzerland was beneficial. Financial software firm Temenos rose after it decided not to raise its bid for UK technology group Fidessa, and following its inclusion in the MSCI benchmark. Not having any exposure to Italy lifted returns too, with several stocks hammered by political uncertainty after polls ended in a stalemate. We introduced Chinese internet giant Tencent for its long-term growth opportunities, and Swiss security group Dormakaba, which has a solid global presence. We also bought US derivatives exchange CME Group for its attractive fundamentals, as well as online travel provider Booking Holdings, which is underpinned by structural growth drivers. Against these, we divested Ultrapar due to deteriorating fundamentals and increased regulatory constraints. We also exited South African telecom MTN Group, given rising political risk on the back of the proposed fine by the Nigerian government, and Argentine steel pipe producer Tenaris, as we considered it fully valued. Global markets are likely to remain on edge, dampened by trade tensions, a strengthening US dollar and tighter monetary policies. Other threats such as political uncertainty in Europe continue to linger, while the tech rally in the US appears to have lost momentum. Nevertheless, we believe that our holdings, which possess structural growth drivers, wide competitive moats and solid balance sheets, will have the resilience to navigate these difficult times. Aberdeen Asset Managers Limited 12 October 2018 From 19 November 2018, Impax Asset Management Limited replaced Aberdeen Asset Managers Limited as Investment Adviser to the Trust. 3

5 Comparative Table as at 30 September 2018 (unaudited) Net Asset Value and Ongoing Charges Figure 30/09/18 31/03/18 31/03/17 L Income Closing net asset value ( 000) 5,172 4,760 4,295 Closing number of units 2,712,527 2,710,915 2,468,485 Closing net asset value per unit (p) Operating charges* 1.61% 1.61% 1.60% 30/09/18 31/03/18 31/03/17 L Accumulation Closing net asset value ( 000) 290, , ,953 Closing number of units 129,374, ,794, ,864,063 Closing net asset value per unit (p) Operating charges* 1.61% 1.61% 1.60% 30/09/18 31/03/18 31/03/17 H Accumulation Closing net asset value ( 000) Closing number of units 4,787 4,787 5,313 Closing net asset value per unit (p) Operating charges* 2.11% 2.11% 2.11% 30/09/18 31/03/18 31/03/17 Y Accumulation Closing net asset value ( 000) Closing number of units 9,550 9,550 10,008 Closing net asset value per unit (p) Operating charges* 0.91% 0.91% 0.89% H Accumulation and Y Accumulation units were made available on 1 December *Operating charges are prepared using the same methodology as the ongoing charges appearing in the KIID, based on the information in this report. 4

6 Portfolio Statement as at 30 September 2018 (unaudited) Security Holdings Market Value 000 % of Net Assets BERMUDA (3.34%) 11, Jardine Matheson 94,600 4, Kerry Logistics Network 5,319,500 6, BRAZIL (3.21%) 6, Banco Bradesco ADR 1,095,476 6, CANADA (2.51%) 7, Ritchie Bros Auctioneers 124,000 3, TELUS 159,200 4, CAYMAN ISLANDS (0.00%) 4, Tencent 132,300 4, CURACAO (2.28%) 7, Schlumberger 154,400 7, FRANCE (1.46%) 4, Essilor International 41,000 4, GERMANY (4.22%) 13, Fielmann 40,200 1, Infineon Technologies 233,200 4, Linde 41,900 7, GUERNSEY (1.76%) 6, Amdocs 124,170 6, HONG KONG (4.64%) 14, AIA 1,562,000 10, Swire Pacific 2,472,500 3, INDIA (0.97%) 6, HDFC Bank ADR 87,400 6, ISRAEL (2.35%) 8, Check Point Software Technologies 97,400 8, JAPAN (11.36%) 29, Calbee 120,200 3, Daito Trust Construction 26,800 2, FANUC 36,900 5, Japan Exchange 219,800 2, Keyence 13,900 6, Mitsubishi Estate 300,000 3, Shimano 41,700 5, JERSEY (2.64%) 7, Experian 374,000 7, LUXEMBOURG (4.21%) 6, Samsonite International 2,186,500 6, SINGAPORE (4.06%) 13, Oversea-Chinese Banking 925,952 5, Singapore Telecommunications 3,942,100 7, SOUTH AFRICA (1.36%) - - SOUTH KOREA (2.69%) 6, Samsung Electronics GDR 10,600 6, SWEDEN (1.61%) 7, Atlas Copco 'A' Shares 196,300 4, Epiroc 366,500 3,

7 Portfolio Statement as at 30 September 2018 (unaudited) Security Holdings Market Value 000 (continued) % of Net Assets SWITZERLAND (2.06%) 9, dormakaba 7,869 4, Temenos 37,900 4, TAIWAN (4.59%) 13, Taiwan Mobile 1,605,000 4, Taiwan Semiconductor Manufacturing ADR 265,200 9, THAILAND (1.97%) 6, Kasikornbank 1,189,700 6, UNITED KINGDOM (11.60%) 33, AVEVA 208,000 6, St. James's Place Money Market Unit Trust L Acc 14,765,510 15, Standard Chartered 966,736 6, Vodafone 3,723,300 6, UNITED STATES (24.32%) 72, Alphabet 6,470 5, Booking 2,000 3, CME 22,900 3, Cognizant Technology Solutions 101,400 5, EOG Resources 80,700 7, Intercontinental Exchange 80,000 4, Jones Lang LaSalle 34,800 3, M&T Bank 63,000 8, Oracle 149,600 5, TJX 84,300 7, Visa 101,200 11, Yum China 204,600 5, Investment Assets 296, Total other liabilities (net) (227) (0.08) Net assets 295, Comparative figures shown in brackets relate to 31 March All investments held are listed, unless otherwise stated. Stocks shown as ADRs and GDRs represent American Depositary Receipts and Global Depositary Receipts. During the period under review the Manager decided to place some of the sterling cash held on deposit into the St. James s Place Money Market Unit Trust in order to spread risk across a number of institutions. The St. James s Place Money Market Unit Trust is highly liquid and is rated AAA by Standard & Poors. This investment is a related party. 6

8 Material Portfolio Changes Cost Purchases 000 St. James's Place Money Market Unit Trust L Acc 30,854 Tencent 4,567 HDFC Bank ADR 3,650 Booking 2,933 CME 2,831 Alphabet 2,618 Standard Chartered 2,115 Singapore Telecommunications 2,013 dormakaba 1,993 Epiroc 1,874 Proceeds Sales 000 St. James's Place Money Market Unit Trust L Acc 23,654 Whitbread 7,831 Comcast 5,378 Tenaris ADR 5,121 Daito Trust Construction 3,069 Oracle 2,816 MTN 1,908 AVEVA 1,780 TJX 1,772 Jones Lang LaSalle 1,684 Stocks shown as ADRs represent American Depositary Receipts. This investment is a related party. 7

9 Statement of Total Return for the period 01 April 2018 to 30 September 2018 (unaudited) Income Net capital gains Revenue Expenses Interest payable and similar charges Net revenue before taxation Taxation Net revenue after taxation Total return before equalisation Equalisation Change in net assets attributable to unitholders from investment activities 01/04/18 to 30/09/18 01/04/17 to 30/09/ ,882 2,498 3,956 3,691 (2,322) (2,072) - - 1,634 1,619 (321) (278) 1,313 1,341 23,195 3, ,206 3,850 Statement of Change in Net Assets Attributable to Unitholders for the period 01 April 2018 to 30 September 2018 (unaudited) 01/04/18 to 30/09/18 01/04/17 to 30/09/ Opening net assets attributable to unitholders 267, ,280 Movement due to creation and cancellation of units: Amounts receivable on creation of units 9,903 7,692 Amounts payable on cancellation of units (4,311) (4,180) 5,592 3,512 Change in net assets attributable to unitholders from investment activities (see above) 23,206 3,850 Closing net assets attributable to unitholders 295, ,642 Comparative information is provided for the Statement of Change in Net Assets Attributable to Unitholders. Since this information is for the prior interim period, the net assets at the end of that period do not correspond to the net assets at the start of the current period. 8

10 Balance Sheet as at 30 September 2018 (unaudited) Assets Investments Current assets Debtors Cash and bank balances Total assets Liabilities Creditors Distribution payable Other creditors Total liabilities Net assets attributable to unitholders 30/09/18 31/03/ , ,946 7,981 1,069 1,577 1, , ,430 - (16) (9,785) (352) (9,785) (368) 295, ,062 Accounting and Distribution policies for the period 01 April 2018 to 30 September 2018 (unaudited) Basis of accounting The Financial Statements have been prepared under the historical cost basis, as modified by the revaluation of investments, in compliance with the Financial Conduct Authority's Collective Investment Schemes Sourcebook. They have been prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 (The Financial Reporting Standard applicable in the UK and Republic of Ireland FRS 102) and in accordance with the Statement of Recommended Practice (SORP) for Financial Statements of Authorised Funds issued by the Investment Management Association May 2014 (IMA SORP 2014). The financial statements are prepared on the going concern basis. Directors of the Managers' Certificate This report is certified in accordance with the requirements of the rules in the Financial Conduct Authority's Collective Investment Schemes Sourcebook. C. G. Gentle D. J. Lamb London 29 November

11 General Information Unit Dealings Dealings on the Trust take place on a daily basis. Purchase or sale instructions can be made by telephone or in writing to St. James's Place Unit Trust Group Limited, PO Box 9034, Chelmsford, CM99 2XA, United Kingdom, freephone: The Manager adopts a policy of forward pricing, i.e. the order will be transacted on the dealing day following receipt of the client's instructions, or if received before noon, on that dealing day. In the case of telephone purchases of units from the Manager, settlement must be by return of post after receipt of the contract note. In the case of telephone redemptions, the proceeds will not become payable until the receipt at the Administration Centre of a written request. A contract note confirming the subscription or redemption price and the number of units involved will be forwarded, together with a cancellation notice, where appropriate, on the next business day. The most recent issue and redemption prices for Class H and Class L Units will be published on the Manager s website: Prices for all Units are available by calling the Administration Centre on Minimum Investment Class H and Class L - The minimum lump sum investment is 1,500, thereafter the minimum additional investment is 1,000. The minimum monthly investment is 150 and the minimum monthly increment is 50. The minimum annual investment is 1,500 and the minimum annual increment is 500. After any withdrawal the minimum holding value is 500. Class Y The minimum lump sum investment is 10,000,000 thereafter the minimum additional investment is 10,000. After any withdrawal the minimum holding value is 1,000,000. Please note further investment restrictions also apply to Class H and Class Y Units as detailed in the Prospectus. Management Charges The Trust Deed permits the following management charges which are receivable by the Manager: (a) A Preliminary Charge of 5 per cent which is included in the offer price of the Units. For Class Y units the Preliminary Charge is 0 per cent. (b) An Annual Management Charge at a rate of 1.37 per cent for Class L Income and Accumulation Units; 1.87 per cent for Class H Accumulation Units; 0.67 per cent for Class Y Accumulation Units of the value of the Trust. Income Distributions Income distributions are made annually on or before the 31 May. Accumulation Distributions Revenue due to accumulation unitholders is reflected in the price of their units. Tax Certificates Income unitholders that receive income distributions by direct credit and accumulation unitholders (where the distribution income is reinvested) receive an annual consolidated tax voucher in May with all the relevant payment and tax information required to complete a tax return. Tax certificates will be enclosed if income unitholders receive payment by cheque. Capital Gains Tax The Trust is not liable to tax on capital gains and any individual holding units will not be liable to capital gains tax unless the total chargeable gains for the tax year 2018/2019 exceed 11,700 (2017/ ,300). To calculate capital gains on accumulation units, the total amount of reinvested net revenue (shown on the annual tax credit vouchers) should be added to the base cost of the units purchased. Unitholders should consult their professional advisers for any advice regarding their tax position. 10

12 St. James s Place Unit Trust Group Ltd is authorised and regulated by the Financial Conduct Authority. St. James s Place Unit Trust Group Ltd Registered Office: St. James s Place House, 1 Tetbury Road, Cirencester, Gloucestershire, GL7 1FP, United Kingdom. Registered in England Number Perivan Financial Print Ethical (11/18)