ALLSHARE INCOME UNIT TRUST FOR THE PERIOD ENDING 30 SEPTEMBER 2016
Manager St. James's Place Unit Trust Group Limited PO Box 9034, Chelmsford, CM99 2XA United Kingdom Freephone: 0800 027 1031 (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 AXA Investment Managers UK Limited 7 Newgate Street London, EC1A 7NX 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: 0800 027 1031 1
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 Allshare Income 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 6 October 2007. 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. Unitholders should note that with effect from 10 November 2014 the St. James s Place Allshare Income Unit Trust was closed to new investment under the limited issue arrangements permitted under the FCA rules for authorised funds. With effect from this date no new Units have been issued in respect of this Scheme, except in relation to existing Unitholders who invest through an existing regular savings facility. However, with effect from 10 October 2016 the Manager, being satisfied that new Units could again be issued without compromising the St. James's Place Allshare Income Unit Trust's investment objective or materially prejudicing existing Unitholders, has permitted additional investment into the Scheme. Investment Objectives & Policy The investment objective of the Scheme is to achieve an above average level of income whilst also providing the potential for capital appreciation over the medium to long-term. The Scheme will be invested in a combination of primarily UK, but also global, equities. The Scheme is also permitted to invest in other asset classes permitted for UCITS schemes under COLL including other types of transferable securities, units and/or shares in collective investment schemes, money market instruments 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 October 2007, over the five year period since September 2011 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 Allshare Income Unit Trust Income units (offer to offer) Accumulation units (offer to offer) Indices - actual FTSE All-Share (Total Return) 01/10/07 to 30/09/11 to 31/03/16 to 30/09/16 30/09/16 30/09/16 % change % change % change +5.0 +41.1 +5.5 +50.7 +72.9 +8.4 +55.6 +68.9 +12.8 Source: Lipper for Fund returns Source: FTSE International Limited ( FTSE ) FTSE 2016. 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. 2
Report of the Manager (continued) Risk and Reward Profile The synthetic risk and reward indicator for the St. James s Place Allshare Income Unit Trust, as disclosed in its most recent Key Investor Information Document (KIID), is a 5. It was calculated using performance data up to 1 February 2016. The risk category is recalculated weekly and for the last eight weeks of the period under review the risk category changed from a category 5 to a category 4. Please note that if the risk category consistently remains as a category 4 for a four month period, the KIID will be amended from a category 5 accordingly. Investment Adviser's Comments The decision by the UK public to vote in favour of exiting the European Union dominated economics, politics and the UK stock market. The most obvious indicator of the impacts of the decision was the performance of sterling, which had been rising in anticipation of a remain result. Once it had become clear that a decision had been taken to exit, the pound plummeted initially by more than 10%. The result also produced political casualties with David Cameron resigning and being replaced relatively quickly, which helped reduce uncertainty. There were dramatic moves in the stock market, with domestically orientated shares plunging, while overseas earners soared. This was well illustrated by the performance of HSBC and Lloyds Banking Group with the former outperforming the latter by over 50%. The overall impact was positive, with the FTSE All-Share Index (total return) rising by just under 13%. The lack of impact on the UK economy of Brexit confounding the views of most economists helped the domestically orientated stocks to show some recovery. The portfolio underperformed with an underweight position in oil and mining stocks being detrimental to performance. In addition, the multicap structure of the fund was unhelpful, with the FTSE 100 outperforming the broad market. New purchases post Brexit were made in Bovis Homes and SIG, and prior to that date Micro Focus International, Accrol and Midwich Group, with the latter two being purchased as they listed on the stock market. Sales included Blue Capital Global Reinsurance, Centrica, esure, Direct Line Group and Juridica. Sterling has continued to fall as controls over immigration appear to be more important than access to the single market. This increases the chances that the impact on the UK economy will be greater. The falls in sterling help UK competitiveness, so should bolster exports and UK-based tourism. The government is looking to increase infrastructure spending and homebuilding which should provide support to economic growth. In addition the Bank of England, having provided an interest rate cut and a renewal of quantitative easing, is likely to be relaxed about some rise in inflation caused by sterling s weakness. AXA Investment Managers UK Limited 14 October 2016 3
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 Income Closing net asset value ( 000) 95,114 100,571 118,327 101,745 Closing number of units 96,300,518 107,263,292 124,173,618 106,626,370 Closing net asset value per unit (p) 98.77 93.76 95.29 95.42 Operating charges** 1.92% 1.86% 1.85% 1.84% 30/09/16 31/03/16 31/03/15 31/03/14 Accumulation Closing net asset value ( 000) 930,833 934,742 1,047,034 903,942 Closing number of units 649,256,143 706,690,745 813,642,478 729,650,601 Closing net asset value per unit (p) 143.37 132.27 128.68 123.89 Operating charges** 1.92% 1.86% 1.85% 1.84% **Operating charges are prepared using the same methodology as the ongoing charges appearing in the KIID, based on the information in this report. 4
Portfolio Statement as at 30 September 2016 (unaudited) Security Holdings Market Value 000 % of Net Assets Aerospace & Defence (1.79%) 19,241 1.88 DP Aircraft I 6,528,000 5,388 0.53 Senior 6,100,000 13,853 1.35 Banks (5.19%) 59,378 5.79 HSBC 6,100,000 34,819 3.39 Lloyds Banking 38,500,000 20,813 2.03 Secure Trust Bank 160,000 3,746 0.37 Construction & Materials (3.86%) 36,639 3.56 Alumasc 1,385,000 2,174 0.21 Epwin 10,000,000 11,125 1.08 Eurocell 4,700,000 8,460 0.82 Low & Bonar 24,000,000 14,880 1.45 Corporate Bonds (0.08%) - - Electricity (0.14%) 1,548 0.15 KSK Power Ventur 500,000 390 0.04 Mytrah Energy 2,400,000 1,158 0.11 Electronic & Electrical Equipment (1.76%) 19,443 1.90 e2v technologies 8,300,000 19,443 1.90 Equity Investment Instruments (8.57%) 69,352 6.77 Carador Income Fund 9,800,000 5,500 0.54 Chenavari Capital Solutions 2,029,270 1,715 0.17 Ecofin Global Utilities And Infrastructure Fund 1,722,459 1,652 0.16 Ef Realisation Company Limited 1,500,000 561 0.05 Fair Oaks Income Fund 11,113,211 8,225 0.80 Foresight Solar Fund 7,150,000 7,275 0.71 GLI Finance 10,425,000 2,476 0.24 Greencoat UK Wind 7,100,000 7,973 0.78 ICG-Longbow Senior Secured UK Property Debt 5,000,000 4,988 0.49 Juridica Investments 577,412 82 0.01 NextEnergy Solar Fund 8,000,000 8,400 0.82 P2P Global Investments Fund 1,200,000 10,116 0.99 Renewables Infrastructure 3,750,000 3,949 0.38 SQN Asset Finance Income Fund 5,750,000 6,440 0.63 Financial Services (5.86%) 54,911 5.35 Intermediate Capital 1,688,888 9,846 0.96 IP 3,464,774 5,852 0.57 Jupiter Fund Management 3,100,000 13,082 1.28 Park 15,900,000 11,011 1.07 Polar Capital 1,607,801 4,839 0.47 Real Estate Credit Investments PCC 3,250,000 5,281 0.51 VPC Specialty Lending Investments 6,250,000 5,000 0.49 Fixed Line Telecommunications (2.49%) 25,592 2.49 KCOM 11,750,000 13,689 1.33 Manx Telecom 5,750,000 11,903 1.16 Food & Drug Retailers (2.39%) 23,439 2.28 Conviviality Retail 11,043,259 23,439 2.28 Food Producers (4.66%) 45,316 4.42 Devro 4,100,000 9,686 0.94 Greencore 2,750,000 9,185 0.90 Hilton Food 4,300,000 26,445 2.58 5
Portfolio Statement (continued) as at 30 September 2016 (unaudited) Security Holdings Market Value 000 % of Net Assets Gas, Water & Multiutilities (2.56%) 14,261 1.39 National Grid 1,300,000 14,261 1.39 General Retailers (4.27%) 37,986 3.69 entu UK 4,889,000 1,516 0.15 Pendragon 35,000,000 10,412 1.01 SafeStyle UK 3,692,001 10,098 0.98 Shoe Zone 2,807,617 4,829 0.47 Topps Tiles 9,916,667 11,131 1.08 Household Goods & Home Construction (0.00%) 19,205 1.87 Accrol 6,980,769 9,215 0.90 Bovis Homes 1,200,000 9,990 0.97 Industrial Engineering (0.49%) 4,363 0.43 Castings 1,021,250 4,363 0.43 Industrial Transportation (0.66%) 6,843 0.67 Amedeo Air Four Plus 4,955,333 5,228 0.51 DX 8,500,000 1,615 0.16 Life Insurance (4.76%) 41,607 4.06 Aviva 1,950,000 8,424 0.82 Legal & General 6,800,000 14,661 1.43 Phoenix 2,100,000 18,522 1.81 Media (3.82%) 37,959 3.70 ITV 4,850,000 8,929 0.87 NAHL 3,750,000 9,469 0.92 Tarsus 7,132,500 19,561 1.91 Mining (1.05%) 16,570 1.61 Anglo Pacific 11,750,000 12,866 1.25 ATH Resources* 790,688 - - Firestone Diamonds 7,192,816 3,704 0.36 Mobile Telecommunications (2.93%) 28,859 2.81 Vodafone 13,100,000 28,859 2.81 Non Equity Investment Instruments (1.53%) 14,305 1.39 St. James's Place Money Market Unit Trust L Acc 13,694,799 14,305 1.39 Non Life Insurance (1.59%) - - Oil & Gas Producers (7.44%) 96,244 9.38 BP 9,250,000 41,542 4.05 Indus Gas 825,000 4,051 0.39 Royal Dutch Shell 'B' Shares 2,525,000 50,651 4.94 Oil Equipment, Services & Distribution (1.36%) - - Personal Goods (1.15%) 13,218 1.29 Unilever 365,000 13,218 1.29 Pharmaceuticals & Biotechnology (7.08%) 82,390 8.03 AstraZeneca 620,000 30,811 3.00 GlaxoSmithKline 2,000,000 32,710 3.19 Quantum Pharmaceutical 7,625,000 5,109 0.50 Vectura 10,000,000 13,760 1.34 Real Estate Investment & Services (0.54%) 7,390 0.72 Sirius Real Estate 16,500,000 7,390 0.72 6
Portfolio Statement (continued) as at 30 September 2016 (unaudited) Security Holdings Market Value 000 % of Net Assets Real Estate Investment Trusts (6.01%) 54,243 5.29 Ediston Property Investment 7,750,000 7,886 0.77 McKay Securities 3,468,000 6,867 0.67 Mucklow A & J 1,782,512 8,734 0.85 NewRiver REIT 6,035,008 19,765 1.93 Redefine International 9,906,932 4,215 0.41 Regional REIT 6,500,000 6,776 0.66 Software & Computer Services (3.92%) 55,598 5.42 Bond International Software 1,525,000 1,693 0.17 Craneware 1,150,000 14,433 1.41 EMIS 1,350,000 12,622 1.23 FDM 2,200,000 13,420 1.31 Micro Focus International 405,680 8,771 0.85 StatPro 4,313,750 4,659 0.45 Support Services (2.50%) 26,563 2.59 ienergizer 6,000,000 4,620 0.45 Matchtech 1,625,000 5,525 0.54 Midwich 1,500,000 3,600 0.35 SIG 5,000,000 5,760 0.56 St Ives 4,250,000 5,663 0.55 Vianet 1,500,000 1,395 0.14 Technology Hardware & Equipment (1.09%) 13,191 1.29 IQE 43,250,000 13,191 1.29 Tobacco (6.95%) 73,758 7.19 Investment Assets 1,014,669 98.90 Total other assets (net) 11,278 1.10 Net assets 1,025,947 100.00 Comparative figures shown in brackets relate to 31 March 2016. All investments held are listed, unless otherwise stated. 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. * Delisted securities. 7
Material Portfolio Changes Cost Purchases 000 St. James's Place Money Market Unit Trust L Acc 78,223 Bovis Homes 9,335 Lloyds Banking 8,885 Accrol 7,004 Fair Oaks Income Fund 6,832 Micro Focus International 6,145 Ecofin Global Utilities And Infrastructure Fund 6,061 SIG 6,036 Midwich 3,121 BP 2,185 Proceeds Sales 000 St. James's Place Money Market Unit Trust L Acc 79,771 KBC Advanced Technologies 14,135 esure 9,406 National Grid 8,308 Ecofin Water & Power Opportunities Fund 8,046 Ashtead 7,088 Fair Oaks Income Fund 6,969 Direct Line Insurance 6,765 Blackstone / GSO Loan Financing 6,516 Blue Capital Global Reinsurance Fund 6,389 This investment is a related party. 8
Statement of Total Return for the period 01 April 2016 to 30 September 2016 (unaudited) Income Net capital gains/(losses) Revenue Expenses Interest payable and similar charges Net revenue before taxation Taxation Net revenue after taxation Total return before distributions Distributions Change in net assets attributable to unitholders from investment activities 01/04/16 to 30/09/16 01/04/15 to 30/09/15 000 000 000 000 60,664 (7,486) 29,802 26,556 (9,783) (10,649) - - 20,019 15,907 - - 20,019 15,907 80,683 8,421 (29,396) (26,148) 51,287 (17,727) 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 30/09/15 000 000 000 000 Opening net assets attributable to unitholders 1,035,313 1,165,361 Movement due to creation and cancellation of units: Amounts receivable on creation of units* 90,712 68,158 Amounts payable on cancellation of units* (177,347) (140,877) Change in net assets attributable to unitholders from investment activities (see above) Retained distribution on accumulation units Closing net assets attributable to unitholders (86,635) (72,719) 51,287 (17,727) 25,982 23,156 1,025,947 1,098,071 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. 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 30/09/2016 31/03/2016 000 000 1,014,669 1,030,223 27,396 6,299 5,543 5,168 1,047,608 1,041,690 (1,145) (1,041) (20,516) (5,336) (21,661) (6,377) 1,025,947 1,035,313 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 2016 10
Distribution Tables Distributions in pence per unit Group 1 First interim Units purchased prior to 1 April 2016 Second interim Units purchased prior to 1 July 2016 Group 2 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 Income Net revenue Equalisation Distributions paid to/ payable 31/12/16 Distributions paid to 31/12/15 Group 1 (p) (p) (p) (p) First interim 1.572-1.572 1.200 Second interim 1.189-1.189 1.006 Group 2 (p) (p) (p) (p) First interim ` 0.714 1.572 1.200 Second interim 0.487 0.702 1.189 1.006 Accumulation Net revenue Equalisation Distributions paid to/ payable 31/12/16 Distributions paid to 31/12/15 Group 1 (p) (p) (p) (p) First interim 2.217-2.217 1.621 Second interim 1.705-1.705 1.375 Group 2 (p) (p) (p) (p) First interim 1.350 0.867 2.217 1.621 Second interim 1.182 0.523 1.705 1.375 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: 0800 027 1031. 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: www.sjp.co.uk and are available by calling the Administration Centre on 0800 027 1031. 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) 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 1.37 per cent of the value of the Trust. Income Distributions Income distributions are made quarterly on or before the 31 March, 30 June, 30 September and 31 December. 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. 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 (2015/2016 11,100). 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. 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 947644. Perivan Financial Print 243234 Allshare Income (11/16)