GLOBAL EMERGING MARKETS UNIT TRUST

Transcription

1 GLOBAL EMERGING MARKETS UNIT TRUST FOR THE PERIOD ENDED 30TH SEPTEMBER 2011

2 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 M. S. Wilson (Chairman) D. C. Bellamy A. M. Croft I. S. Gascoigne H. J. Gladman D. J. Lamb W. P. Tonks Secretary of the Manager St. James's Place Administration Limited Investment Adviser First State Investment Management (UK) Limited 23 St. Andrew Square Edinburgh, EH2 1BB 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 KPMG Audit Plc Saltire Court 20 Castle Terrace Edinburgh, EH1 2EG 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:

3 Report of the Manager During the period under review, 1 April 2011 to 30 September 2011, the St. James's Place Global Emerging Markets Unit Trust Income unit offer price fell by 7.2% from 110.5p to 102.5p and the Accumulation unit offer price (in which revenue is reflected in the price rather than distributed) fell by 7.2% from 110.5p to 102.5p. On the 15 November 2011, the latest available date before the printing of this report, the Income unit offer price was 107.3p and the Accumulation unit offer price was 107.3p. The estimated yield was 0.00%. The Trust's Performance The performance of the Trust since its launch in April 2010 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 Global Emerging Markets Unit Trust Income units (offer to offer) Accumulation units (offer to offer) Indices - actual MSCI Emerging Markets Source: Lipper for Fund returns 06/04/10 to 31/03/11 to 30/09/11 30/09/11 % change % 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 Emerging Markets fell alongside the more developed global markets over the six months to 30 September 2011 on concerns about the European sovereign debt crisis and the outlook for global growth. However, the portfolio substantially outperformed the MSCI Emerging Markets index. Emerging Asia outperformed over the period as Indonesia, Thailand and the Philippines held up better than other markets and investors remained relatively positive about their economies. Latin America underperformed as Brazil dropped substantially on commodity price weakness and Emerging Europe also struggled as Eastern European markets and Russia fell heavily on rising risk aversion. At a sector level, Consumer Staples and Telecom Services outperformed as investors sought companies with more defensive characteristics. Energy and Materials lagged as the oil price and other commodity prices fell on concerns about the outlook for global growth. Chunghwa Telecom (Taiwan) outperformed over the period as investors were attracted by its defensive earnings and Quanta Computer (Taiwan) gained because of the strength of its franchise and attractive valuation. On the negative side, Holcim, the Indian Materials company, underperformed as cement was negatively impacted by concerns about overcapacity and a delayed recovery in construction. In addition, Oil Search (Papua New Guinea) fell with the oil price. Significant new positions over the period included Axiata Group, a well-managed Malaysian telecoms operator executing successfully on its overseas expansion strategy and AIA Group, a dominant Asian insurance company likely to improve under new management. We sold Shinsegae (South Korea) following the de-merger of the business as we prefer the supermarket franchise and FEMSA (Mexico) on valuation grounds. Recent market falls have slightly broadened our universe of companies of sufficient quality at attractive valuations. We welcome the sell-off of emerging market currencies, as many the Brazilian real in particular have been significantly overvalued. Our outlook is positive as the portfolio is defensively positioned, invested in businesses with quality franchises and managements with strong track records. First State Investment Management (UK) Limited 14 October

4 Performance Record The St. James's Place Global Emerging Markets Unit Trust was first offered on 6 April 2010 at an offer price of p per unit. Unit Price History Calendar year * Income Accumulation Highest Lowest Highest Lowest Offer Bid Offer Bid p p p p Distributions The record of net distributions paid per unit is shown below: Income Accumulation Net revenue distributed Net revenue distributed per 1,000 per 1,000 Invested Invested per unit at 06/04/10 per unit at 06/04/10 Calendar year p p * Net Asset Values Year ended March * Units in Issue Units in Issue Market NAV per Unit NAV per Unit Income Accumulation NAV of Trust Income Accumulation '000 p p 3,582, ,288, , ,133, ,148, , Total Expense Ratio Year ended March * TER (%) The Total Expense Ratio (TER) is the total expenses paid by the Trust in the period, annualised, against its average net asset value. * To 30 September

5 Investment Assets as at 30 September 2011 (unaudited) Security Holdings Market Value % of Net Assets BELGIUM (3.06%) 18,319, Anheuser-Busch InBev 535,876 18,319, BRAZIL (5.10%) 13,230, All America Latina Logistica 162, , Banco Bradesco 461,679 3,700, Tele Norte Leste Participacoes 66, , Weg 1,334,100 8,559, CHINA (3.48%) 8,094, China Telecom 19,910,000 8,094, CZECH REPUBLIC (2.75%) 2,442, CEZ 99,085 2,442, GREECE (4.53%) 6,972, Coca Cola Hellenic Bottling 619,189 6,972, HONG KONG (3.62%) 21,347, AIA 4,584,600 8,432, Hong Kong & China Gas 8,886,300 12,914, INDIA (4.70%) 14,259, Bharti Airtel 551,745 2,731, Hindustan Unilever 2,589,160 11,527, INDONESIA (0.00%) 6,959, Telekomunikasi Indonesia 3,240,000 1,784, Telekomunikasi Indonesia ADR 243,813 5,174, MALAYSIA (0.00%) 11,752, Axiata 12,719,600 11,752, MEXICO (3.36%) 5,663, Grupo Televisa ADR 470,341 5,663, PAPUA NEW GUINEA (4.27%) 9,682, Oil Search 2,743,798 9,682, PHILIPPINES (2.04%) 6,593, Philippine Long Distance Telephone 121,725 3,916, Philippine Long Distance Telephone ADR 83,933 2,676, POLAND (4.31%) 12,437, Telekomunikacja Polska 3,720,812 12,437, SOUTH AFRICA (16.01%) 42,729, AngloGold Ashanti 499,546 12,945, Shoprite Holdings 730,510 6,515, Standard Bank 1,542,029 11,064, Tiger Brands 748,536 12,203, SOUTH KOREA (10.75%) 31,416, E-Mart 20,059 3,253, LG Electronics 77,201 2,895, NHN 51,344 6,344, Samsung Electronics 9,991 4,562, Samsung Fire & Marine Insurance 122,145 14,360, SWITZERLAND (3.11%) 12,753, Holcim 361,775 12,753,

6 Investment Assets (continued) as at 30 September 2011 (unaudited) Security Holdings Market Value % of Net Assets TAIWAN (13.04%) 40,934, AU Oprtinics 6,389,000 1,666, Chunghwa Telecom 2,431,800 5,167, Delta Electronics 2,809,000 4,279, Quanta Computer 4,388,000 5,484, Taiwan Semiconductor Manufacturing 14,025,000 20,657, Uni-President Enterprises 4,387,340 3,678, THAILAND (3.27%) 7,814, Siam Commercial Bank 3,590,800 7,814, TURKEY (0.00%) 511, Akbank 203, , UNITED KINGDOM (4.83%) 17,734, Anglo American 134,734 2,976, SABMiller 717,645 14,758, Investment assets 291,651, Total other assets (net) 16,965, Net assets 308,617, Comparative figures shown in brackets relate to 31 March Stocks shown as ADRs represent American Depositary Receipts. 5

7 Summary of Material Portfolio Changes Cost Purchases Axiata 12,861,252 Anheuser-Busch InBev 11,598,917 Taiwan Semiconductor Manufacturing 9,832,569 AIA 9,021,966 Holcim 8,790,688 Delta Electronics 6,035,856 Coca Cola Hellenic Bottling 5,094,608 Telekomunikasi Indonesia ADR 5,081,660 AngloGold Ashanti 4,266,428 SABMiller 4,133,815 Samsung Fire & Marine Insurance 4,098,155 Weg 4,005,214 Uni-President Enterprises 3,931,511 Telekomunikacja Polska 3,898,779 Standard Bank 3,628,578 Tiger Brands 3,444,015 Hong Kong & China Gas 3,299,875 Oil Search 3,243,791 Chunghwa Telecom 3,045,263 Anglo American 3,005,196 Other purchases 27,860,712 Total purchases for the period 140,178,848 Proceeds Sales Chunghwa Telecom 11,731,908 Coca Cola Hellenic Bottling 7,446,367 CEZ 4,471,649 AngloGold Ashanti 3,902,228 Siam Commercial Bank 3,557,372 China Telecom 3,256,901 Fomento Economico Mexicano ADR 3,256,748 Quanta Computer 2,980,437 Oil Search 1,384,154 Taiwan Semiconductor Manufacturing 1,319,603 Tele Norte Leste Participacoes 1,227,956 Bharti Airtel 1,098,027 Shinsegae 1,069,988 LG Electronics 982,792 Banco Bradesco 246,599 Chunghwa Telecom ADR 245,998 All America Latina Logistica 174,947 Total sales for the period 48,353,674 Stocks shown as ADRs represent American Depositary Receipts. 6

8 Statement of Total Return for the period 01 April 2011 to 30 September 2011 (unaudited) Income Net capital (losses)/gains Revenue Expenses Finance costs: Interest Net revenue before taxation Taxation Net revenue after taxation Total return before equalisation Finance costs: Equalisation Change in net assets attributable to unitholders from investment activities 01/04/11 to 30/09/11 06/04/10 to 30/09/10 (25,345,042) 3,902,188 6,012, ,070 (2,970,375) (457,448) (37) - 3,041, ,622 (791,834) (138,004) 2,249, ,618 (23,095,130) 4,211, , ,258 (22,677,317) 4,651,064 Statement of Change in Net Assets Attributable to Unitholders for the period 01 April 2011 to 30 September 2011 (unaudited) 01/04/11 to 30/09/11 06/04/10 to 30/09/10 Opening net assets attributable to unitholders 243,633,445 - Movement due to creation and cancellation of units: Amounts receivable on creation of units 88,798, ,909,414 Amounts payable on cancellation of units (1,133,631) - Stamp duty reserve tax Change in net assets attributable to unitholders from investment activities (see above) Closing net assets attributable to unitholders 87,664, ,909,414 (2,983) (393) (22,677,317) 4,651, ,617, ,560,085 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. The prices per unit as at 30 September 2011 were: Income units Accumulation units Bid Offer p p

9 Balance Sheet as at 30 September 2011 (unaudited) Assets Investment assets Debtors Cash and bank balances Total other assets Total assets 30/09/11 31/03/11 291,651, ,701,960 3,333,124 5,611,297 16,111,965 15,325,860 19,445,089 20,937, ,096, ,639,117 Liabilities Creditors (2,479,155) (2,005,672) Total liabilities Net assets attributable to unitholders Accounting policies for the period 01 April 2011 to 30 September 2011 (unaudited) (2,479,155) (2,005,672) 308,617, ,633,445 Basis of accounting The interim financial statements have been prepared on the same basis as the audited annual financial statements for the year ended 31 March They 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 H. J. Gladman London A. M. Croft 17 November

10 General Information The Trust St. James's Place Global Emerging Markets 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 22 March The Unit Trust is subject to the rules of the Financial Services Authority's Collective Investment Scheme Sourcebook and is classified as a UCITS 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 achieve long-term capital appreciation. The Scheme aims to achieve this objective by principally investing worldwide in equities in emerging economies, including those of companies listed on developed market exchanges whose activities predominantly take place in emerging market countries. The Scheme 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, 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. European Savings Directive It is the Manager's intention that the Trust will not normally hold 15% or more of its value in money debt instruments. 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 5 per cent which is included in the offer price of the Units. (b) An Annual Management Charge at a rate of 1.25 per cent of the value of the Trust. 9

11 General Information (continued) Income Distributions Income distributions are made annually on or before 31 May 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 2011/2012 exceed 10,600 (2010/ ,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 NOTES 11

13 NOTES 12

14 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 Global Emerging Markets (11/11)