Interim Report. Standard Life Investments. Global SICAV II Société d'investissement à Capital Variable. Interim Report as at 30 June 2017

Transcription

1 Interim Report Standard Life Investments Global SICAV II Société d'investissement à Capital Variable Interim Report as at 30 June 2017 Standard Life Investments No subscription can be received on the basis of financial reports. Subscriptions are only valid if made on the basis of the current prospectus accompanied by the latest annual and the most recent semi-annual report, if published thereafter. R.C.S. Luxembourg B

2 Registered Office 2-4, rue Eugène Ruppert L-2453 Luxembourg Grand Duchy of Luxembourg Board of Directors Members Mr Alan Stephen Acheson Chairman Director, Global Strategic Partnerships Standard Life Investments Limited 1 George Street Edinburgh EH2 2LL Scotland Mr Michael McKenna Chief Operating Officer Ireland Standard Life Employee Services Limited 90 St Stephen s Green Dublin 2 Ireland Mr Manuel Hauser Independent Director 11, rue Beaumont L-1219 Luxembourg Grand Duchy of Luxembourg Ms Jennifer Richards Head of Distribution, Ireland Standard Life Investments 90 St Stephen s Green Dublin 2 Ireland Mr Stephen Campbell Investment Director, Product Management and Governance Standard Life Investments Limited 1 George Street Edinburgh EH2 2LL Scotland Investment Manager Standard Life Investments Limited 1 George Street Edinburgh EH2 2LL Scotland Management Company Standard Life Investments (Mutual Funds) Limited 1 George Street Edinburgh EH2 2LL Scotland Auditor** KPMG Luxembourg Société coopérative 39, Avenue John F. Kennedy L-1855 Luxembourg Grand Duchy of Luxembourg Legal Advisor Clifford Chance 10 boulevard G.D. Charlotte L-1011 Luxembourg Grand Duchy of Luxembourg Principal Distributor Standard Life Investments Limited 1 George Street Edinburgh EH2 2LL Scotland Mr Robert Curtis (from 4 May 2017)** Investment Director Fund Governance Standard Life Investments Limited 1 George Street Edinburgh EH2 2LL Scotland Mr Ian Boyland (from 4 May 2017)** Independent Director 25, rue du Schlamestee L-5770 Weiler-la-Tour Luxembourg Administration and Advisors Registrar, Transfer Agent, Corporate and Domiciliary Agent, Central Administrator and Depositary Agent The Bank of New York Mellon SA/NV* 2-4, rue Eugène Ruppert L-2453 Luxembourg Grand Duchy of Luxembourg *Effective 1 April 2017, BNY Mellon has merged its legal entity The Bank of New York Mellon (Luxembourg) S.A., including its Milan branch, into The Bank of New York Mellon SA/NV. **See note 11 for details.

3 Contents Page Report of the Board of Directors... 2 General Information... 3 Investment Markets Overview... 4 Statement of Net Assets... 5 Statement of Operations and Changes in Net Assets... 7 Statement of Changes in Number of Shares... 9 Statistics Notes to the Financial Statements Appendix 1: Share classes issued in the Sub-funds Appendix 2: Securities Financing Transactions Regulations ( SFTR ) Disclosure Sub-fund Objective and Investment Policy Sub-fund Performance Review and Outlook Schedule of Investments Enhanced-Diversification Multi Asset Fund MyFolio Multi-Manager Sub-funds Investment Markets Overview MyFolio Multi-Manager I Fund MyFolio Multi-Manager II Fund MyFolio Multi-Manager III Fund MyFolio Multi-Manager IV Fund MyFolio Multi-Manager V Fund

4 Report of the Board of Directors At the period end, the total net assets of Standard Life Investments Global SICAV II (the Company ) stood at EUR 23,158,796. The Company's objective continues to be to provide the shareholder with a choice of professionally managed sub-funds (the Sub-funds ) investing in a wide range of transferable securities in order to achieve an optimum return from capital invested, while reducing investment risk through diversification. The Board of Directors adheres to the Association of the Luxembourg Fund Industry ( ALFI ) code of conduct for Luxembourg investment funds (revised June 2013). The code of conduct sets a framework of high-level principles and best practice recommendations for the governance of Luxembourg investment funds. The Board of Directors Luxembourg, 16 August 2017 The figures stated in this report are historical and not necessarily indicative of future performance. 2

5 General Information Standard Life Investment Global SICAV II (the Company ) was incorporated on 15 March 2016 under Luxembourg Law as a Société d Investissement à Capital Variable (SICAV). The Company s articles of incorporation have also been deposited with the Luxembourg Trade and Companies Register and have been published in the Mémorial, Recueil des Sociétés et Associations (the Mémorial ) on 8 April The Company has been registered under number B with the Luxembourg Trade and Companies Register. The Company has appointed Standard Life Investments (Mutual Funds) Limited, incorporated in Scotland under the Companies Acts (registered number SC123322), to act as its management company with effect as of 1 June The Company's articles of incorporation may be amended from time to time by a meeting of shareholders, subject to the quorum and majority requirements provided by Luxembourg law. Any amendment thereto shall be published in the Mémorial, in a Luxembourg daily newspaper and, if necessary, in the official publications specified for the respective countries in which Company shares are sold. Such amendments become legally binding on all shareholders, following their approval by the general meeting of shareholders. Any amendments affecting the rights of the holders of shares of any class vis-à-vis those of any other class shall be subject further to the said quorum and majority requirements in respect of each relevant class. The Company is a single legal entity. However, each Sub-fund is regarded as being separate from the others and is liable for all of its own obligations, unless other terms have been specifically agreed with its creditors. The first annual general meeting of shareholders was held at the registered office of the Company on the first Thursday in May 2017 and will be held on the same day each year thereafter (unless such date falls on a legal bank holiday, in which case on the next Luxembourg business day) at 2pm (Luxembourg time). Notices of all general meetings are sent by mail to all registered shareholders at their registered address at least 8 days prior to each such meeting. Such notice will indicate the time and place of such meeting and the conditions of admission thereto, will contain the agenda and will refer to the requirements of Luxembourg law with regard to the necessary quorum and majorities at such meeting. To the extent required by Luxembourg law, further notices will be published in the Mémorial and in one Luxembourg newspaper. Audited annual reports and unaudited semi-annual reports will be made available on the Standard Life Investments Website ( and at the registered office of the Company. The Company s financial year ends on 31 December of each year. The net asset value per share and the issue and redemption price can be obtained from the registered office of the Company. Statement of Changes in Portfolio A statement giving the changes in the Schedule of Investments for the period ended 30 June 2017 can be obtained free of charge from the registered office of the Company. 3

6 Investment Markets Overview Global Overview Market themes Equities Global equity markets continued to perform well in the first half of the year. Corporate results were largely positive and there was some easing of geopolitical tension. The UK economy was stronger than expected, although the snap election did cause some loss of confidence. Global equity markets extended last year s strong performance into the first half of 2017, with investors adopting a more optimistic tone given the improving global economy, generally positive corporate results and a modest easing of political tensions. Early in the review period, there were hopes that US President Donald Trump s proposed policies (tax cuts, infrastructure and defence spending, regulatory rollback) would boost economic growth and lift corporate profits. Meanwhile, Emmanuel Macron won the French election, triumphing over his anti-eu rival Marine Le Pen. In other developments, the US Federal Reserve increased interest rates in March, and again in June, while the European Central Bank unsettled markets when it hinted that it might start to reduce quantitative easing later this year. The UK economy proved more robust than expected in the aftermath of the EU referendum, which underpinned equity market gains as we moved into For example, business activity growth hit a three-month high in March a considerable rebound from February s five-month low. Corporate activity and business optimism did subsequently weaken, but this was attributed to political upheaval generated by the snap general election. Purchasing Managers Index figures showed a slowdown in the second quarter but remained robust. Surveys also illustrated that the number of new jobs created was at its highest rate for the last few years. Fixed income The Brexit negotiations were in focus for government bond investors. Investors eyed the actions of central banks with caution. The Bank of England s bond-buying programme continued to provide support to corporate bond markets. In the gilt market, much emphasis fell upon the negotiations between the UK and the EU. Meanwhile, survey data showed domestic economic signals were relatively upbeat. That said, higher inflation complicated discussions for the Bank of England s (BoE) Monetary Policy Committee. However, gilts were not severely impacted as they benefited from difficulties in European bonds, with investors seeking a substitute market to avoid developing political uncertainty in the region. As the period progressed, the increasingly assertive tone from central banks, hinting that low inflation may not on its own be enough to prevent a shift to gradual policy tightening, did not sit comfortably with investors. Corporate bond markets performed well, with the Bank of England continuing its corporate bond-buying programme. This provided good support to the market, while domestic economic data remained resilient. Although Brexit remained a feature, its impact on credit markets was limited, and investors remained unmoved by the triggering of Article 50. Another feature of the review period was the clear outperformance of financials relative to non-financials, and of those bonds not eligible for purchase under the Bank of England s corporate bond purchase scheme compared to those that are. UK direct real estate Capital values recovered early in the period and continued to make progress thereafter. Rental growth was healthy during the period. Overseas investors were active market participants. Having turned positive in the first quarter, UK commercial real estate capital values continued to rise during the review period, while rental growth also remained positive. In sector terms, the industrial and long-income type sectors were notably upbeat. Meanwhile, retail continued to suffer. Turning to investment activity, trading volumes were lower than the same period last year, and overseas investors remained the largest net investors in the UK. Market outlook Equities Looking ahead, global equities have performed well over the year to date, and we have confidence in the outlook for earnings, cashflow and dividends. Despite this, political uncertainty remains with elections in Germany and, potentially, Italy on the horizon. The UK also has the thorny task of negotiating its exit from the EU; the recent inconclusive election result has made the government s job all the more daunting. President Trump s policy agenda also faces numerous headwinds, while geopolitics will remain an ever-present source of volatility. Fixed income Government bond markets are struggling with the current messaging from central banks and in adjusting to the slow retreat from ultraaccommodative monetary policy. There appear to be increasing signs that central banks are gaining confidence in the robustness of economies and are prepared to take a pre-emptive stance on inflation. However, with both risk markets and yields failing to adjust to policy tightening so far, financial conditions remain extremely loose. Within corporate bonds, there should be a reasonable outcome for global growth and therefore credit spreads could well grind a little tighter. Because of this, we remain long of credit risk but at a more modest level overall than at this time last year. UK direct real estate UK real estate dynamics remain supportive although we expect moderate market returns. In a low growth environment, UK real estate continues to provide an elevated yield compared with other assets. Given the backdrop of continuing heightened uncertainty, however, we expect more polarised performance between prime and secondary assets. 4

7 Statement of Net Assets As at 30 June 2017 Enhanced- Diversification Multi Asset Fund MyFolio Multi- Manager I Fund MyFolio Multi- Manager II Fund MyFolio Multi- Manager III Fund (EUR) (EUR) (EUR) (EUR) Assets Investments in securities at market value (note 2b) 12,635,945 1,683,193 1,283,296 2,237,151 Acquisition cost: 12,676,706 1,661,260 1,258,896 2,210,797 Cash and cash equivalents 3,185, ,502 34,477 20,956 Cash collateral Margin account 260,266 Receivables resulting from sale of securities 3,486 9,064 Receivables resulting from subscriptions 4,600 Other receivables 204,699 51,030 52,916 54,066 Unrealised appreciation on: Open forward foreign exchange contracts (note 2f) 120,074 Open exchange traded futures contracts (note 2h) 12,683 Swap contracts at market value (note 2g) 439,952 Option/swaption contracts at market value (note 2i) Total assets 16,862,760 1,867,725 1,370,689 2,325,837 Liabilities Bank overdraft 46,111 3,097 Cash collateral 130,000 Margin account 73,507 Payables resulting from purchases of securities 1,016,106 42,378 Payables resulting from redemptions 35,000 Fees payable 185,549 39,860 41,410 43,274 Unrealised depreciation on: Open forward foreign exchange contracts (note 2f) 175,856 Open exchange traded futures contracts (note 2h) 26,799 Swap contracts at market value (note 2g) 233,572 Option/swaption contracts at market value (note 2i) 50,728 Total liabilities 1,938,228 82,238 41,410 81,371 Total net assets prior to swing adjustment 14,924,532 1,785,487 1,329,279 2,244,466 Adjustment due to swing pricing (note 8) 28,356 Total net assets after swing adjustment 14,952,888 1,785,487 1,329,279 2,244,466 The accompanying notes form an integral part of these financial statements. 5

8 Statement of Net Assets (continued) As at 30 June 2017 MyFolio Multi- Manager IV Fund MyFolio Multi- Manager V Fund Combined (EUR) (EUR) (EUR) Assets Investments in securities at market value (note 2b) 1,574,227 1,243,925 20,657,737 Acquisition cost: 1,549,523 1,212,164 20,569,346 Cash and cash equivalents 16,271 12,965 3,403,826 Cash collateral Margin account 260,266 Receivables resulting from sale of securities 12,550 Receivables resulting from subscriptions 4,293 8,893 Other receivables 50,895 50, ,108 Unrealised appreciation on: Open forward foreign exchange contracts (note 2f) 120,074 Open exchange traded futures contracts (note 2h) 12,683 Swap contracts at market value (note 2g) 439,952 Option/swaption contracts at market value (note 2i) Total assets 1,641,393 1,311,685 25,380,089 Liabilities Bank overdraft 49,208 Cash collateral 130,000 Margin account 73,507 Payables resulting from purchases of securities 1,058,484 Payables resulting from redemptions 35,000 Fees payable 39,361 38, ,139 Unrealised depreciation on: Open forward foreign exchange contracts (note 2f) 175,856 Open exchange traded futures contracts (note 2h) 26,799 Swap contracts at market value (note 2g) 233,572 Option/swaption contracts at market value (note 2i) 50,728 Total liabilities 39,361 38,685 2,221,293 Total net assets prior to swing adjustment 1,602,032 1,273,000 23,158,796 Adjustment due to swing pricing (note 8) 28,356 Total net assets after swing adjustment 1,602,032 1,273,000 23,187,152 The accompanying notes form an integral part of these financial statements. 6

9 Statement of Operations and Changes in Net Assets For the period ended 30 June 2017 Enhanced- Diversification Multi Asset Fund MyFolio Multi- Manager I Fund MyFolio Multi- Manager II Fund MyFolio Multi- Manager III Fund (EUR) (EUR) (EUR) (EUR) Net assets at the beginning of the period after Swing Adjustment 12,379,424 1,012,126 1,012,431 1,012,522 Reversal of prior year swing adjustment (22,243) Net assets at the beginning of the period before Swing Adjustment 12,357,181 1,012,126 1,012,431 1,012,522 Income Dividend income, net (note 2d) 7,586 2,077 1,982 2,866 Bank interest 3 Interest income on swap contracts (note 2g) 73 Total income 7,662 2,077 1,982 2,866 Expenses Annual management charges (note 3a) 2, ,453 Management company fees (note 3e) Central administration fees (note 3d) 24,947 7,480 7,480 7,480 Depositary fees (note 3b) 9,675 3,817 4,077 4,252 Professional fees 3,248 3,457 3,457 3,457 Transfer agency fees 8,260 5,054 6,257 7,063 Taxe d'abonnement (note 5a) Bank interest 10, Interest expense on swap contracts (note 2g) 9,804 Sundry expenses 30,105 24,303 24,363 24,403 Total expenses before reimbursement 99,124 45,328 46,595 50,419 Expense reimbursement (note 3f) 69,755 42,772 44,444 44,915 Total expenses after reimbursement 29,369 2,556 2,151 5,504 Net (deficit) (21,707) (479) (169) (2,638) Net realised appreciation/(depreciation) on: Investments (161,144) 1,611 1,668 1,988 Forward foreign exchange contracts (note 2f) (119,365) Swap contracts (note 2g) 94,548 Exchange traded futures contracts (note 2h) 389,344 Option/swaption contracts (note 2i) 326,996 Foreign currencies on other transactions (14,212) Net realised appreciation for the period 516,167 1,611 1,668 1,988 Net change in unrealised appreciation/(depreciation) on: Investments (25,721) 16,701 18,864 20,728 Forward foreign exchange contracts (note 2f) (51,868) Swap contracts (note 2g) (6,762) Exchange traded futures contracts (note 2h) (24,651) Option/swaption contracts (note 2i) (103,932) Foreign currencies on other transactions 571 Net change in unrealised (depreciation)/appreciation for the period (212,363) 16,701 18,864 20,728 Increase in net assets as a result of operations 282,097 17,833 20,363 20,078 Movements in share capital Subscriptions 14,824,002 1,799,554 1,357,840 2,295,139 Redemptions (12,538,748) (1,044,026) (1,061,355) (1,083,273) Increase in net assets as a result of movements in share capital 2,285, , ,485 1,211,866 Total net assets prior to Swing Adjustment at the end of the period 14,924,532 1,785,487 1,329,279 2,244,466 Adjustment due to swing pricing (note 8) 28,356 Total net assets after Swing Adjustment at the end of the period 14,952,888 1,785,487 1,329,279 2,244,466 The accompanying notes form an integral part of these financial statements. 7

10 Statement of Operations and Changes in Net Assets (continued) For the period ended 30 June 2017 MyFolio Multi- Manager IV Fund MyFolio Multi- Manager V Fund Combined (EUR) (EUR) (EUR) Net assets at the beginning of the period after Swing Adjustment 1,012,328 1,011,805 17,440,636 Reversal of prior year swing adjustment (22,243) Net assets at the beginning of the period before Swing Adjustment 1,012,328 1,011,805 17,418,393 Income Dividend income, net (note 2d) 2,213 1,497 18,221 Bank interest 3 Interest income on swap contracts (note 2g) 73 Total income 2,213 1,497 18,297 Expenses Annual management charges (note 3a) 1,959 1,140 10,566 Management company fees (note 3e) Central administration fees (note 3d) 7,480 7,480 62,347 Depositary fees (note 3b) 3,731 3,644 29,196 Professional fees 3,457 3,457 20,533 Transfer agency fees 4,663 4,262 35,559 Taxe d'abonnement (note 5a) Bank interest ,591 Interest expense on swap contracts (note 2g) 9,804 Sundry expenses 24,283 24, ,720 Total expenses before reimbursement 45,804 44, ,693 Expense reimbursement (note 3f) 42,136 41, ,861 Total expenses after reimbursement 3,668 2,584 45,832 Net (deficit) (1,455) (1,087) (27,535) Net realised appreciation/(depreciation) on: Investments 7,955 5,703 (142,219) Forward foreign exchange contracts (note 2f) (119,365) Swap contracts (note 2g) 94,548 Exchange traded futures contracts (note 2h) 389,344 Option/swaption contracts (note 2i) 326,996 Foreign currencies on other transactions (14,212) Net realised appreciation for the period 7,955 5, ,092 Net change in unrealised appreciation/(depreciation) on: Investments 19,271 26,852 76,695 Forward foreign exchange contracts (note 2f) (51,868) Swap contracts (note 2g) (6,762) Exchange traded futures contracts (note 2h) (24,651) Option/swaption contracts (note 2i) (103,932) Foreign currencies on other transactions 571 Net change in unrealised appreciation/(depreciation) for the period 19,271 26,852 (109,947) Increase in net assets as a result of operations 25,771 31, ,610 Movements in share capital Subscriptions 1,867,463 1,394,808 23,538,806 Redemptions (1,303,530) (1,165,081) (18,196,013) Increase in net assets as a result of movements in share capital 563, ,727 5,342,793 Total net assets prior to Swing Adjustment at the end of the period 1,602,032 1,273,000 23,158,796 Adjustment due to swing pricing (note 8) 28,356 Total net assets after Swing Adjustment at the end of the period 1,602,032 1,273,000 23,187,152 The accompanying notes form an integral part of these financial statements. 8

11 Statement of Changes in Number of Shares For the period ended 30 June 2017 Shares outstanding at the beginning of the period Shares issued Shares redeemed Shares outstanding at the end of the period Enhanced-Diversification Multi Asset Fund A Accumulation Shares 4, (2,335) 2,261 A Accumulation Hedged CHF Shares A Accumulation Hedged SEK Shares 5,000 5,000 A Accumulation Hedged USD Shares B Accumulation Shares B Accumulation Hedged CHF Shares B Accumulation Hedged SEK Shares 5,000 5,000 D Accumulation Shares , ,820 D Accumulation Hedged CHF Shares D Accumulation Hedged SEK Shares 5,000 5,000 D Accumulation Hedged USD Shares K Accumulation Shares 100 1,198,610 1,198,710 K Accumulation Hedged CHF Shares K Accumulation Hedged SEK Shares 5,000 5,000 K Accumulation Hedged USD Shares S Accumulation Shares S Accumulation Hedged CHF Shares S Accumulation Hedged SEK Shares 5,000 5,000 S Accumulation Hedged USD Shares Z Accumulation Shares 1,212,643 30,121 (1,194,492) 48,272 Total number of shares in issue at the end of the period 1,470,763 MyFolio Multi-Manager I Fund A Accumulation Shares 100 1,070 1,170 A Distribution Shares ,070 (1,440) 36,730 B Accumulation Shares B Distribution Shares D Accumulation Shares , ,349 D Distribution Shares Z Accumulation Shares 100,100 36,614 (100,000) 36,714 Total number of shares in issue at the end of the period 175,263 MyFolio Multi-Manager II Fund A Accumulation Shares A Distribution Shares ,889 (2,419) 25,570 B Accumulation Shares B Distribution Shares D Accumulation Shares , ,512 D Distribution Shares Z Accumulation Shares 100,100 3,503 (100,000) 3,603 Total number of shares in issue at the end of the period 130,125 MyFolio Multi-Manager III Fund A Accumulation Shares 100 7,974 (2) 8,072 A Distribution Shares ,388 (3,993) 76,495 B Accumulation Shares B Distribution Shares D Accumulation Shares , ,544 D Distribution Shares Z Accumulation Shares 100,100 33,464 (100,000) 33,564 Total number of shares in issue at the end of the period 218,975 9

12 Statement of Changes in Number of Shares (continued) For the period ended 30 June 2017 Shares outstanding at the beginning of the period Shares issued Shares redeemed Shares outstanding at the end of the period MyFolio Multi-Manager IV Fund A Accumulation Shares ,137 (18,405) 6,832 A Distribution Shares ,678 (6,248) 19,530 B Accumulation Shares B Distribution Shares D Accumulation Shares , ,415 D Distribution Shares Z Accumulation Shares 100,100 28,379 (100,000) 28,479 Total number of shares in issue at the end of the period 155,556 MyFolio Multi-Manager V Fund A Accumulation Shares ,470 (8,362) 9,208 A Distribution Shares 100 7,950 (2,283) 5,767 B Accumulation Shares B Distribution Shares D Accumulation Shares , ,421 D Distribution Shares Z Accumulation Shares 100,100 7,287 (100,000) 7,387 Total number of shares in issue at the end of the period 123,083 10

13 Statistics Currency 30 June December 2016 Enhanced-Diversification Multi Asset Fund Total net assets EUR 14,924,532 12,357,181 Net asset value per share of: A Accumulation Shares EUR A Accumulation Hedged CHF Shares CHF A Accumulation Hedged SEK Shares SEK A Accumulation Hedged USD Shares USD B Accumulation Shares EUR B Accumulation Hedged CHF Shares CHF B Accumulation Hedged SEK Shares SEK D Accumulation Shares EUR D Accumulation Hedged CHF Shares CHF D Accumulation Hedged SEK Shares SEK D Accumulation Hedged USD Shares USD K Accumulation Shares EUR K Accumulation Hedged CHF Shares CHF K Accumulation Hedged SEK Shares SEK K Accumulation Hedged USD Shares USD S Accumulation Shares EUR S Accumulation Hedged CHF Shares CHF S Accumulation Hedged SEK Shares SEK S Accumulation Hedged USD Shares USD Z Accumulation Shares EUR MyFolio Multi-Manager I Fund Total net assets EUR 1,785,487 1,012,126 Net asset value per share of: A Accumulation Shares EUR A Distribution Shares EUR B Accumulation Shares EUR B Distribution Shares EUR D Accumulation Shares EUR D Distribution Shares EUR Z Accumulation Shares EUR MyFolio Multi-Manager II Fund Total net assets EUR 1,329,279 1,012,431 Net asset value per share of: A Accumulation Shares EUR A Distribution Shares EUR B Accumulation Shares EUR B Distribution Shares EUR D Accumulation Shares EUR D Distribution Shares EUR Z Accumulation Shares EUR MyFolio Multi-Manager III Fund Total net assets EUR 2,244,466 1,012,522 Net asset value per share of: A Accumulation Shares EUR A Distribution Shares EUR B Accumulation Shares EUR B Distribution Shares EUR D Accumulation Shares EUR D Distribution Shares EUR Z Accumulation Shares EUR Total net assets for each Sub-fund is before any adjustment due to swing pricing. The net asset value per share class is after any adjustment due to swing pricing. 11

14 Statistics (continued) Currency 30 June December 2016 MyFolio Multi-Manager IV Fund Total net assets EUR 1,602,032 1,012,328 Net asset value per share of: A Accumulation Shares EUR A Distribution Shares EUR B Accumulation Shares EUR B Distribution Shares EUR D Accumulation Shares EUR D Distribution Shares EUR Z Accumulation Shares EUR MyFolio Multi-Manager V Fund Total net assets EUR 1,273,000 1,011,805 Net asset value per share of: A Accumulation Shares EUR A Distribution Shares EUR B Accumulation Shares EUR B Distribution Shares EUR D Accumulation Shares EUR D Distribution Shares EUR Z Accumulation Shares EUR Total net assets for each Sub-fund is before any adjustment due to swing pricing. The net asset value per share class is after any adjustment due to swing pricing. 12

15 Notes to the Financial Statements as at 30 June Organisation Standard Life Investments Global SICAV II (the "Company") was incorporated on 15 March 2016 under the laws of the Grand Duchy of Luxembourg as a "" ("SICAV") with multiple Sub-funds for an unlimited period. The Company has received approval from the Luxembourg authorities for registration under Part I of the law of 17 December 2010, as amended, relating to Undertakings for Collective Investment in Transferable Securities (the "UCITS Law") in conformity with Directive 2009/65/EC (the UCITS Directive ). The Company is not a self-managed SICAV. A management company was appointed on 1 June The legal notice ("notice légale") required by Luxembourg laws in connection with the issue and sale of shares in the Company has been deposited with the Registrar of Companies of the District Court of Luxembourg (the "Registrar"). The Company's articles of incorporation have also been deposited with the Registrar and have been published in the Recueil des Sociétés et Associations (the "Mémorial") on 8 April The Company has been registered under number B at the Luxembourg Commercial Register. During the period ended 30 June 2017, there were 6 Sub-funds available for investment and 11 classes of shares were offered to investors: Class A, Class A Hedged, Class B, Class B Hedged, Class D, Class D Hedged, Class K, Class K Hedged, Class S, Class S Hedged and Class Z, which differ in the fee structure applying to them. Details of the classes of shares issued in the Sub-funds are noted in the Statistics on pages 11 and 12 and in Appendix 1 on page 18 of these financial statements. Further details of each Share Class can also be found in the Prospectus. 2. Significant Accounting Policies a) General These financial statements are prepared in accordance with Luxembourg regulations applicable to Undertakings for Collective Investment Funds. b) Investment valuation In determining the value of the assets of the Company each security which is quoted or dealt in on a stock exchange is valued at its latest available price on the stock exchange which is normally the principal market for such securities, and each security dealt in on an over-the-counter market is valued in a manner as near as possible to that for quoted securities. The value of securities not quoted or dealt in on a stock exchange or an over-the-counter market, and of securities which are so quoted or dealt in but in respect of which no price quotation is available or the price quoted is not representative of the security's fair market value, is determined prudently and in good faith on the basis of their reasonably foreseeable sale prices. Suspended or delisted securities held at 30 June 2017 have been valued at fair value as instructed by the Investment Manager; details of these securities are included in the Schedule of Investments. Short-term investments purchased and maturing within 90 days from the date of purchase are valued at amortised cost, which approximates market value. Any discount or premium is amortised on a straight-line basis to maturity. In the event of material changes in market conditions, the valuation basis of the investment is adjusted to the new market yields. Shares or units in open-ended investment funds are valued at the latest price or total net assets as reported or provided by such undertakings or their agents. c) Conversion of foreign currencies The books and records of each Sub-fund are denominated in the base currency of the corresponding Sub-fund. Amounts denominated in other currencies are translated into the base currency on the following basis: (i) investment valuations and other assets and liabilities initially expressed in other currencies are converted on each business day into the base currency using exchange rates prevailing on each business day; and (ii) purchases and sales of foreign investments, income and expenses are converted into the base currency using currency exchange rates prevailing on the respective dates of such transactions. Net realised gains and losses on foreign exchange represent: (i) foreign exchange gains and losses from the sale and holding of foreign currencies; (ii) gains and losses between trade date and settlement date on securities transactions; and (iii) gains and losses arising from the difference between amounts of dividends and interest recorded and the amounts actually received. The resulting gains and losses on transactions are included in the Statement of Operations and Changes in Net Assets. Main exchange rates used as at 30 June 2017 are as follows: 1 EUR = AUD 1 EUR = JPY 1 EUR = CAD 1 EUR = 1, KRW 1 EUR = CHF 1 EUR = NOK 1 EUR = DKK 1 EUR = SEK 1 EUR = GBP 1 EUR = SGD 1 EUR = HKD 1 EUR = USD 1 EUR = INR d) Securities transactions and investment income Securities transactions are recorded on a trade date basis. Dividend income is accrued on the ex-dividend date. Realised gains and losses are determined on the basis of the average cost of securities sold. Interest income is accrued on a daily basis. e) Formation expenses The formation expenses of the Company and each of the Sub-funds have been borne by the Standard Life group of companies. 13

16 Notes to the Financial Statements as at 30 June 2017 (continued) 2. Significant Accounting Policies (continued) f) Forward foreign exchange contracts The Forward foreign exchange contracts are valued on the basis of forward foreign exchange rates prevailing at the Statement of Net Assets date and the resulting net change in unrealised appreciation/(depreciation) on Forward foreign exchange contracts is included in the Statement of Operations and Changes in Net Assets, under the heading Net Change in unrealised appreciation/(depreciation) on Forward foreign exchange contracts. The realised appreciation/(depreciation) on Forward foreign exchange contracts is disclosed in the Statement of Operations and Changes in Net Assets, under the heading Net realised appreciation/(depreciation) on Forward foreign exchange contracts. g) Swap contracts The interest rate swap contracts are valued at their fair value based on current market interest rates. The value of the interest rate swap includes the amount of accrued interest as at the date of valuation. The interest income/(expenses) on swap contracts are included in the Statement of Operations and Changes in Net Assets under the heading Interest income on swap contracts and Interest expense on swap contracts respectively. The inflation linked swaps, interest rate swaps, credit default swaps and total return swaps are valued at their fair value daily based on broker prices. The receivable and payable for swap contracts is recorded in the Statement of Net Assets under the heading Swap contracts at market value. The net change in unrealised appreciation/(depreciation) on swap contracts is included in the Statement of Operations and Changes in Net Assets, under the heading Net change in unrealised appreciation/(depreciation) on Swap contracts. Realised appreciation/(depreciation) on swap contracts are disclosed in the Statement of Operations and Changes in Net Assets under the heading Net realised appreciation/(depreciation) on swap contracts. h) Exchange traded futures contracts The Exchange traded future contracts are valued on the basis of future contracts exchange rates prevailing on the Statement of Net Assets date and the resulting net change in unrealised appreciation/(depreciation) on Exchange traded future contracts is included in the Statement of Operations and Changes in Net Assets, under the heading Net change in unrealised appreciation/(depreciation) on Exchange traded future contracts. The realised appreciation/(depreciation) on Exchange traded future contracts is disclosed in the Statement of Operations and Changes in Net Assets under the heading Net realised appreciation/(depreciation) on Exchange traded future contracts. i) Option/swaption contracts The Option/swaption contracts are valued on the basis of option/swaption contracts exchange rates prevailing at the Statement of Net Assets date and the resulting net change in unrealised appreciation/(depreciation) on Option/swaption contracts is included in the Statement of Operations and Changes in Net Assets under the heading Net change in unrealised appreciation/(depreciation) on Option/swaption contracts. The realised appreciation/(depreciation) on Option/swaption contracts is disclosed in the Statement of Operations and Changes in Net Assets under the heading Net realised appreciation/(depreciation) on Option/swaption contracts. 3. Expenses a) Annual management charges The annual management charges are used to pay the Investment Manager, the principal distributor and any appointed sub-distributor. The table below lists the Annual Management Charges for all the Sub-funds: Sub-fund Class A Class B Class D Class K Class S Class Z Enhanced-Diversification Multi Asset Fund MyFolio Multi-Manager I Fund TBD TBD 0.00 MyFolio Multi-Manager II Fund TBD TBD 0.00 MyFolio Multi-Manager III Fund TBD TBD 0.00 MyFolio Multi-Manager IV Fund TBD TBD 0.00 MyFolio Multi-Manager V Fund TBD TBD 0.00 The Annual Management Charge will be determined at the launch of the classes of shares. b) Depositary fees The depositary fee is calculated at a rate determined by the territory or country in which the Sub-fund assets are invested. Currently, the lowest rate is % and the highest rate is 0.50% of the net asset value of the relevant Sub-fund annually. c) Transaction costs Transaction costs may arise on the acquisition and disposal of investments and these costs may include fees and commissions paid to agents, advisors, brokers and dealers. These are included in Net realised appreciation/(depreciation) on investments in the Statement of Operations and Changes in Net Assets. Dealing commission is usually paid for transactions in securities and derivatives over an exchange (eg. equities, futures and options). Transaction costs may not be separately identifiable for transactions that do not occur over an exchange as the costs may be included in the transaction price (eg. bonds and money market instruments). For the period ended 30 June 2017, the Sub-funds incurred commission expenses relating to the sale and purchase of Exchange traded future contracts which have been included in the Statement of Operations and Changes in Net Assets as Net realised appreciation/(depreciation) on Exchange traded futures contracts. Similarly, during the period ended 30 June 2017, the Sub-funds incurred commission expenses relating to the sale and purchase of Option contracts which have been included in the Statement of Operations and Changes in Net Assets as Net realised appreciation/(depreciation) on Option/swaption contracts. During the period ended 30 June 2017, there were no transaction costs incurred relating to the trading of swaps. d) Central administration fees The highest rate that can be charged per Sub-fund is 0.35% of the Net Asset Value of the relevant Sub-fund annually. 14

17 Notes to the Financial Statements as at 30 June 2017 (continued) 3. Expenses (continued) e) Management company charge Standard Life Investments (Mutual Funds) Limited has been appointed as management company (the Management Company ) to the Company. The Company is entitled to pay an annual charge to the Management Company (the "Management Company Charge ), up to a maximum of 5 basis points accrued daily and determined on the average daily net assets of each Sub-fund (before deduction of the Management Company Charge). The Management Company Charge is payable monthly in arrears. During the period from 1 January 2017 to 30 June 2017 Management Company Charge was levied at a rate of 0.5 basis points. The Management Company Charge shall be used to pay the Management Company for the services it provides to the Company (in particular the performance of its monitoring role) and shall include reimbursement for any additional regulatory capital costs incurred by the Management Company by reason of its appointment. f) Expense waiver Under the expense cap arrangement that is in place for all Sub-funds, expenses of a Sub-fund (excluding the annual management charges and the taxe d'abonnement) exceeding 20 basis points (10 basis points for Enhanced-Diversification Multi Asset Fund) of that Sub-fund's net asset value will be borne by the Investment Manager. 4. Dividend The Board of Directors may decide to pay interim dividends in the form and under the conditions as provided by Luxembourg law. During the period ended 30 June 2017, there were no dividend distributions. 5. Taxation a) Taxe d abonnement Under current law and practice, the Company is not liable to any Luxembourg income tax, nor are dividends paid by the Company liable to any Luxembourg withholding tax. Under legislation and regulations prevailing in Luxembourg, the Sub-funds are subject to the "taxe d'abonnement" (subscription tax) at the rate of 0.05% per annum, except for the share classes which benefit from a reduced tax rate of 0.01% like the classes of shares dedicated to institutional investors. Class D shares are reserved for institutional investors (as such term is interpreted by the supervisory authority and any applicable laws and regulations from time to time in force in Luxembourg) and, for the avoidance of doubt, any institutional nominees acting on behalf of retail and institutional investors to whom the Directors offer such Class. Class Z shares are reserved for members of the Standard Life group of companies and for other institutional investors with whom separate arrangements have been made to remunerate the Investment Manager and to pay other costs. The taxe d'abonnement is calculated and payable quarterly, at the rates set out below: Class A Class B Class D Class K Class S Class Z 0.05% of total net assets of the Class 0.05% of total net assets of the Class 0.01% of total net assets of the Class 0.01% of total net assets of the Class 0.01% of total net assets of the Class 0.01% of total net assets of the Class b) Provision for foreign taxes Capital gains, dividends and interest on securities received from other countries may be subject to withholding or capital gains taxes imposed by such countries. It is the Company's policy to provide for any potential liability to foreign capital gains and income taxes. 6. Soft commission The Investment Manager did not enter any soft commission arrangements in relation to the Company. Neither the Investment Manager nor any of its connected persons have, or are entitled to, retain any cash rebates from any broker or dealer in consideration of directing transactions on behalf of the Sub-funds to that broker or dealer. In any such cases rebates received shall be held for the accounts of the relevant Sub-funds. 7. Related parties There are no related parties other than the Directors, the Investment Manager, the Management Company and the Principal Distributor. Mr. Alan Stephen Acheson and Mr. Stephen Campbell serve as Directors of the Management Company and as Directors of the Investment Manager and the Principal Distributor. Ms. Jennifer Richards and Mr. Robert Curtis are employees of the Investment Manager and the Principal Distributor. Mr. Michael McKenna is an employee of Standard Life Employee Services Limited, a company related to the Investment Manager. As at 30 June 2017, the following Sub-funds had holdings in Standard Life Investments Global SICAV: Enhanced-Diversification Multi Asset Fund Market Value Investment Fund EUR % of net Assets of the Sub-fund Standard Life Investments Global SICAV - Emerging Market Local Currency Debt Fund 1,051, % Standard Life Investments Global SICAV - Indian Equity Midcap Opportunities Fund 363, % MyFolio Multi-Manager I Fund Market Value Investment Fund EUR % of net Assets of the Sub-fund Standard Life Investments Global SICAV - Emerging Market Local Currency Debt Fund 16, % Standard Life Investments Global SICAV - Global Absolute Return Strategies Fund 20, % Standard Life Investments Global SICAV - Global Corporate Bond Fund 157, % Standard Life Investments Global SICAV - Global Inflation-Linked Bond Fund 8, % 15

18 Notes to the Financial Statements as at 30 June 2017 (continued) 7. Related parties (continued) MyFolio Multi-Manager II Fund Market Value Investment Fund EUR % of net Assets of the Sub-fund Standard Life Investments Global SICAV - Emerging Market Local Currency Debt Fund 21, % Standard Life Investments Global SICAV - Global Absolute Return Strategies Fund 29, % Standard Life Investments Global SICAV - Global Corporate Bond Fund 79, % Standard Life Investments Global SICAV - Global Inflation-Linked Bond Fund 24, % MyFolio Multi-Manager III Fund Market Value Investment Fund EUR % of net Assets of the Sub-fund Standard Life Investments Global SICAV - Emerging Market Local Currency Debt Fund 51, % Standard Life Investments Global SICAV - Global Absolute Return Strategies Fund 74, % Standard Life Investments Global SICAV - Global Corporate Bond Fund 74, % Standard Life Investments Global SICAV - Global Inflation-Linked Bond Fund 59, % MyFolio Multi-Manager IV Fund Market Value Investment Fund EUR % of net Assets of the Sub-fund Standard Life Investments Global SICAV - Emerging Market Local Currency Debt Fund 45, % Standard Life Investments Global SICAV - Global Absolute Return Strategies Fund 68, % Standard Life Investments Global SICAV - Global Corporate Bond Fund 18, % Standard Life Investments Global SICAV - Global Inflation-Linked Bond Fund 13, % MyFolio Multi-Manager V Fund Market Value Investment Fund EUR % of net Assets of the Sub-fund Standard Life Investments Global SICAV - Emerging Market Local Currency Debt Fund 7, % Standard Life Investments Global SICAV - Global Absolute Return Strategies Fund 61, % 8. Swing price adjustment The swinging single pricing process is intended to ensure the fair treatment of all investors in the fund. Inflows / outflows to a fund may require the purchase or sale of portfolio investments with the associated dealing costs. These costs, unless attributed to the investors generating those flows, will result in a reduction (dilution) of the value of the fund. In order to protect the existing investors of the fund against the impact of this dilution, a swing pricing mechanism is used to adjust the fund s price. This means that the fund s price may be swung, i.e. adjusted up (to an Offer basis) or down (to a Bid basis), to reflect the estimated dealing costs. If applied, this dilution adjustment will be paid into the fund for the benefit of its investors. For the avoidance of doubt, all investors who buy or sell units in the fund on the day receive the same price i.e. shares are single priced such that the same basis price applies whether investors are subscribing or redeeming on any dealing day across all share classes. The funds are initially assigned a long term pricing basis, (Bid, Mid (NAV), or Offer). This basis reflects the longer term trend of flows into or out of the fund. Therefore a fund generally experiencing inflow will price on an offer basis, whilst a fund generally experiencing outflow will price on a bid basis. In the absence of a strong trend, a mid basis will be assigned. The funds may also swing away from the long term basis where large daily net flows, against the long term basis, occur. These daily swings are applied automatically using pre-defined fund flow thresholds which are reviewed periodically by a committee of the Investment Advisor. The purpose of this long term basis approach is to prevent regular small flows having a cumulative diluting impact on the fund. The adjustment is recorded in the statement of net assets as adjustment due to swing pricing. Further information can be found at 9. Collateral The table below provides the cash collateral received in relation to derivative contracts held as at 30 June 2017: Sub-fund Counterparty Currency Collateral received Collateral expressed as a percentage of total net assets Enhanced-Diversification Multi Asset Fund BNP Paribas EUR 130, % 10. Directors remuneration The Company pays Directors fees of EUR 30,000 per annum. These fees are accrued across all Sub-funds at share class level and are paid semiannually. Directors fees were EUR 10,897 for the period ended 30 June 2017, these were the only Directors fees charged to the Company. 16

19 Notes to the Financial Statements as at 30 June 2017 (continued) 11. Significant events Effective 1 April 2017, BNY Mellon has merged its legal entity The Bank of New York Mellon (Luxembourg) S.A., including its Milan branch, into The Bank of New York Mellon SA/NV. Mr Robert Curtis was appointed as a Director of the Company on 4 May Mr Ian Boyland was appointed as an Independent Director of the Company on 4 May KPMG Luxembourg Société coopérative was appointed as the auditor of the Company on 4 May Previously, the auditor of the Company was PricewaterhouseCoopers, Société cooperative. At the reporting date, the Manager, Standard Life Investments (Mutual Funds) Limited was a subsidiary of Standard Life plc. On 14 August 2017, Standard Life plc and Aberdeen Asset Management Plc completed a merger to form Standard Life Aberdeen plc. There were no other significant events affecting the Company during the period. 12. Subsequent events On 27 July 2017, the Global Equity Impact Fund was launched. There were no other subsequent events affecting the Company since the period end. 17