GLOBAL EQUITY INCOME UNIT TRUST

GLOBAL EQUITY INCOME UNIT TRUST FOR THE YEAR ENDED 31 MARCH 2018

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 A. M. Croft I. S. Gascoigne Trustee National Westminster Bank Plc 250 Bishopsgate London, EC2M 4AA United Kingdom Independent Auditors PricewaterhouseCoopers LLP Atria One 144 Morrison Street Edinburgh, EH3 8EX United Kingdom C. G. Gentle D. J. Lamb On 1 January 2018 C. G. Gentle joined and D. C. Bellamy retired from the board of St. James's Place Unit Trust Group Limited. Investment Adviser Manulife Asset Management (US) LLC 197 Clarendon Street Boston, MA 02117 United States of America (Authorised and regulated by the US Securities and Exchange Commission) BNY Mellon Trust & Depositary (UK) Limited 160 Queen Victoria Street London, EC4V 4LA United Kingdom Following a full review and tender of trustee and depositary services provided to the St. James s Place range of authorised unit trusts, National Westminster Bank plc were appointed as the new Trustee to the funds, replacing BNY Mellon Trust & Depositary (UK) Limited. The change took place on 1 December 2017. (Authorised and regulated by the Financial Conduct Authority) Registrar DST Financial Services Europe Limited DST House St. Nicholas Lane Basildon, SS15 5FS United Kingdom The name of the registrar changed from International Financial Data Services (UK) Limited to DST Financial Services Europe Limited on 14 August 2017. (Authorised and regulated by the Financial Conduct Authority) 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 is an authorised Unit Trust scheme under section 243 of the Financial Services and Markets Act (2000) and is constituted by a Trust Deed dated 12 March 2012. The Unit Trust is subject to the rules of the Financial Conduct Authority's Collective Investment Scheme Sourcebook and is classified as a UCITS Scheme. Investment Objectives & Policy The investment objective of the Scheme is to provide income, together with the potential for longterm capital appreciation, through investing primarily in global equities. 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, 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 level of income generated by the investments of the Scheme will enable it to qualify for inclusion in the Investment Management Association s Global Equity Income Sector. It is the Manager's intention that the assets of the Unit Trust will be invested so that the Unit Trust will be eligible for inclusion in an ISA. The Trust's Performance The performance of the Trust since its launch in April 2012, over the five year period since March 2013 and over the year 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 10/04/12 to 31/03/13 to 31/03/17 to 31/03/18 31/03/18 31/03/18 % change % change % change +57.7 +30.7-7.9 +84.5 +50.0-5.5 - +4.1-5.9 - +0.8-4.8 * 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

Report of the Manager (continued) Risk and Reward Profile The synthetic risk and reward indicator for the, as disclosed in its most recent Key Investor Information Document (KIID), is a 5. It was calculated using performance data up to 5 February 2018. The risk category is recalculated weekly and during the year under review, the risk category did not change. Investment Adviser's Comments Global equity markets strong 2017 performance was supported by earnings growth expansion, low inflation, accommodative monetary policy, and US tax reform. Volatility returned in 2018 on concerns over inflation, China trade war tensions, and data breaches from technology firms. Despite the recent pullback, Emerging Markets, due to a weak dollar and Information Technology, due to a growth and momentum lead market, were the best performers during the 12-month period. Growth and momentum were serious headwinds to our global fund that is focused on quality, intrinsic valuation, income and downside protection. Traditionally defensive stocks Roche and British American Tobacco as well as a more defensive industrial Johnson Controls were key detractors as each company respectfully announced cautious profitability, weaker than expected sales growth and reduced guidance on revenue growth. Stock selection in Financials along with underweight exposure to Utilities and Real Estate sectors contributed positively to the strategy s performance. Deutsche Boerse reported better than expected fourth quarter net profit and positive 2018 guidance. Cisco Systems reported better than expected second quarter earnings and raised third quarter guidance. Wolters Kluwer reported strong full year results highlighting 2017 net profit rose 37%, announced an increased 2018 dividend, and provided positive future guidance. Transactions are entirely a result of valuation and individual stock opportunities that we uncover. We sold Honeywell as it approached our fair value and purchased Johnson Controls on weakness. Johnson Controls is a multi-industrial transformation story with significant margin expansion opportunities driven by the Tyco merger synergies, solid end market growth and an under-valued battery segment. We sold Bridgestone as it also approached our fair value and purchased Michelin which offered more attractive valuation. Michelin is a leading tire manufacturer where the market is underestimating a business that is 70% replacement, has strong brand power and whose management is finally fixing the cost basis and the capex/depreciation relationship to improve free cash flow. With the escalation of trade war pressures and the transition to a more hawkish Fed, we expect volatility to remain heightened throughout the year. Due to our continued concerns over high debt levels, our portfolio has a defensive bias, focuses on companies with lower than average leverage, and on high cash generative businesses trading at lower than average multiples. We believe valuation is the key to outperformance going forward. Manulife Asset Management (US) LLC 13 April 2018 3

Comparative Table as at 31 March 2018 Net Asset Value and Ongoing Charges Figure 31/03/18 31/03/17 31/03/16 L Income Change in net assets per unit (p) (p) (p) Opening net asset value per unit 161.89 131.18 133.53 Return before operating charges* (5.94) 37.31 2.78 Operating charges (2.74) (2.50) (2.14) Return after operating charges* (8.68) 34.81 0.64 Distributions on income units (4.18) (4.10) (2.99) Closing net asset value per unit 149.03 161.89 131.18 *after direct transaction costs of: 0.18 0.12 0.12 Performance Return after charges (5.36%) 26.54% 0.48% Other information Closing net asset value ( 000) 241,480 250,729 178,274 Closing number of units 162,032,480 154,875,489 135,897,778 Operating charges** 1.71% 1.70% 1.70% Direct transaction costs 0.11% 0.08% 0.10% Prices Highest unit price (p) 168.77 173.80 145.10 Lowest unit price (p) 146.74 126.50 115.30 31/03/18 31/03/17 31/03/16 L Accumulation Change in net assets per unit (p) (p) (p) Opening net asset value per unit 185.70 146.41 145.05 Return before operating charges* (7.00) 42.12 3.71 Operating charges (3.18) (2.83) (2.35) Return after operating charges* (10.18) 39.29 1.36 Distributions on accumulation units (4.83) (4.62) (3.26) Retained distributions on accumulation units 4.83 4.62 3.26 Closing net asset value per unit 175.52 185.70 146.41 *after direct transaction costs of: 0.21 0.14 0.14 Performance Return after charges (5.48%) 26.84% 0.94% Other information Closing net asset value ( 000) 2,175,906 2,112,338 1,413,095 Closing number of units 1,239,716,928 1,137,473,504 965,149,097 Operating charges** 1.71% 1.70% 1.70% Direct transaction costs 0.11% 0.08% 0.10% Prices Highest unit price (p) 193.78 198.10 157.60 Lowest unit price (p) 171.73 141.20 126.30 4

Comparative Table as at 31 March 2018 (continued) Net Asset Value and Ongoing Charges Figure 31/03/18 31/03/17 H Accumulation Change in net assets per unit (p) (p) Opening net asset value per unit 185.36 167.50 Return before operating charges* (6.93) 19.16 Operating charges (4.09) (1.30) Return after operating charges* (11.02) 17.86 Distributions on accumulation units (4.82) (1.61) Retained distributions on accumulation units 4.82 1.61 Closing net asset value per unit 174.34 185.36 *after direct transaction costs of: 0.21 0.15 Performance Return after charges (5.95%) 10.66% Other information Closing net asset value ( 000) 18 10 Closing number of units 10,229 5,423 Operating charges** 2.21% 2.21% Direct transaction costs 0.11% 0.08% Prices Highest unit price (p) 193.05 197.80 Lowest unit price (p) 170.59 166.70 5

Comparative Table as at 31 March 2018 (continued) Net Asset Value and Ongoing Charges Figure 31/03/18 31/03/17 Y Accumulation Change in net assets per unit (p) (p) Opening net asset value per unit 186.38 167.50 Return before operating charges* (7.28) 19.45 Operating charges (1.87) (0.57) Return after operating charges* (9.15) 18.88 Distributions on accumulation units (4.87) (1.62) Retained distributions on accumulation units 4.87 1.62 Closing net asset value per unit 177.23 186.38 *after direct transaction costs of: 0.21 0.15 Performance Return after charges (4.91%) 11.27% Other information Closing net asset value ( 000) 3,712 31 Closing number of units 2,094,253 16,976 Operating charges** 1.00% 0.96% Direct transaction costs 0.11% 0.08% Prices Highest unit price (p) 195.39 190.20 Lowest unit price (p) 173.40 166.70 H Accumulation and Y Accumulation units were made available on 1 December 2016. **Operating charges are prepared using the same methodology as the ongoing charges appearing in the KIID, based on the information in this report. This figure may differ from the performance figure quoted in the Investment Report. The Investment Report performance figure is calculated using the last available published price for a given unit class in the period compared to the equivalent for the prior period. The price per the financial statements values the fund on a bid-price basis. The financial statements unit class valuation is based on market prices on the last day of the period, which can differ from the intraday pricing point of the Trust. 6

Portfolio Statement as at 31 March 2018 Security Holdings Market Value 000 % of Net Assets AUSTRALIA (4.17%) 83,152 3.43 Amcor 10,762,310 83,152 3.43 BRAZIL (0.00%) 35,998 1.49 Cielo 8,107,200 35,998 1.49 FRANCE (4.45%) 277,453 11.46 Airbus 442,772 36,533 1.51 Cie Generale des Etablissements Michelin 639,515 66,441 2.74 Safran 645,040 48,581 2.01 Sanofi 964,922 55,084 2.28 TOTAL 1,759,487 70,814 2.92 GERMANY (2.12%) 31,031 1.28 Deutsche Boerse 321,754 31,031 1.28 HONG KONG (3.44%) 88,325 3.65 China Mobile 8,045,000 52,414 2.17 CK Hutchison 4,222,736 35,911 1.48 IRELAND (0.00%) 66,884 2.76 CRH 1,283,380 31,148 1.29 Medtronic 640,461 35,736 1.47 JAPAN (6.03%) - - LUXEMBOURG (2.68%) - - NETHERLANDS (11.52%) 213,118 8.80 Heineken 929,757 71,377 2.95 Koninklijke Ahold Delhaize 1,742,443 29,295 1.21 Koninklijke Philips 2,457,168 66,819 2.76 Wolters Kluwer 1,216,170 45,627 1.88 SOUTH KOREA (0.00%) 39,604 1.64 Samsung Electronics Preference Shares 29,313 39,604 1.64 SWITZERLAND (12.61%) 308,561 12.74 Chubb 686,197 67,476 2.79 Nestle 1,758,578 98,639 4.07 Novartis 1,077,902 61,966 2.56 Roche 492,020 80,480 3.32 TAIWAN (2.04%) 27,029 1.12 Taiwan Semiconductor Manufacturing ADR 890,508 27,029 1.12 UNITED KINGDOM (7.66%) 255,093 10.54 British American Tobacco 1,457,561 59,986 2.48 Direct Line Insurance 9,632,320 36,574 1.51 Experian 1,957,527 30,214 1.25 St. James's Place Money Market Unit Trust L Acc 67,979,763 70,995 2.93 Unilever 1,431,786 57,324 2.37 UNITED STATES (42.37%) 978,688 40.42 Affiliated Managers 261,950 34,447 1.42 Apple 593,682 70,289 2.90 Arthur J. Gallagher 368,373 17,859 0.74 Cisco Systems 975,754 28,902 1.19 Exxon Mobil 1,171,324 60,667 2.51 Huntington Bancshares 5,135,030 54,814 2.26 Johnson & Johnson 1,073,556 97,312 4.02 Johnson Controls International 2,555,281 62,276 2.57 JP Morgan Chase 492,228 37,792 1.56 KeyCorp 2,573,263 35,246 1.46 7

Portfolio Statement (continued) as at 31 March 2018 Security Holdings Market Value 000 % of Net Assets Microsoft 1,310,102 83,275 3.44 Mondelez International 1,903,673 54,924 2.27 Oracle 1,525,368 48,794 2.02 Procter & Gamble 783,048 43,893 1.81 United Technologies 668,647 59,173 2.44 Verizon Communications 2,179,101 74,385 3.07 Wells Fargo 1,994,708 73,013 3.02 Whirlpool 387,231 41,627 1.72 Investment Assets 2,404,936 99.33 Total other assets (net) 16,180 0.67 Net assets 2,421,116 100.00 Comparative figures shown in brackets relate to 31 March 2017. All investments held are listed, unless otherwise stated. Stocks shown as ADRs represent American Depositary Receipts. During the year 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 & Poor's. This investment is a related party. 8

Material Portfolio Changes Cost Purchases 000 St. James's Place Money Market Unit Trust L Acc 668,506 Johnson Controls International 81,519 Cie Generale des Etablissements Michelin 71,270 Unilever 56,552 Cisco Systems 55,415 Johnson & Johnson 53,556 KDDI 52,119 Samsung Electronics Preference Shares 51,840 Safran 49,528 Apple 47,678 Proceeds Sales 000 St. James's Place Money Market Unit Trust L Acc 644,137 PNC Financial Services 70,524 Honeywell International 70,379 Japan Tobacco 68,849 HSBC 66,135 Philip Morris International 52,834 Bridgestone 51,540 Koninklijke Ahold Delhaize 47,268 Oracle 46,274 KDDI 45,717 This investment is a related party. 9

Statement of the Manager's Responsibilities in relation to the Financial Statements of the Trust The rules in the Financial Conduct Authority's Collective Investment Schemes Sourcebook ("the Rules") require the Manager to prepare Financial Statements for each annual accounting period which give a true and fair view of the financial position of the Trust as at the end of the year and of the net revenue and the net capital losses on the property of the Trust for the year then ended. In preparing the Financial Statements the Manager is required to: select suitable accounting policies and then apply them consistently; make judgements and estimates that are reasonable and prudent; comply with the requirements of the Statement of Recommended Practice relating to Authorised Funds and the Trust Deed; follow applicable UK Accounting Standards (UK Generally Accepted Accounting Practice); and prepare Financial Statements on the going concern basis unless it is inappropriate to presume that the Trust will continue in operation. The Manager is responsible for keeping proper accounting records and for the management of the Trust in accordance with its Trust Deed, Prospectus and the Rules. The Manager has a general responsibility for taking such steps as are reasonably open to it to prevent and detect fraud and other irregularities. 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 30 May 2018 10

Statement of the Trustee's Responsibilities and Report of the Trustee to the Unitholders of the ("the Scheme") for the year ended 31 March 2018 The Trustee must ensure that the Scheme is managed in accordance with the Financial Conduct Authority's Collective Investment Schemes Sourcebook, the Financial Services and Markets Act 2000, as amended, (together "the Regulations"), the Trust Deed and Prospectus (together "the Scheme documents") as detailed below. The Trustee must in the context of its role act honestly, fairly, professionally, independently and in the interests of the Scheme and its investors. The Trustee is responsible for the safekeeping all of custodial assets and maintaining a record of all other assets of the Scheme in accordance with the Regulations. The Trustee must ensure that: the Scheme s cash flows are properly monitored and that cash of the Scheme is booked into the cash accounts in accordance with the Regulations; the sale, issue, redemption and cancellation of units are carried out in accordance with the Regulations; the value of units in the Scheme is calculated in accordance with the Regulations; any consideration relating to transactions in the Scheme s assets is remitted to the Scheme within the usual time limits; the Scheme s income is applied in accordance with the Regulations; and the instructions of the Authorised Fund Manager ( the AFM ) are carried out (unless they conflict with the Regulations). The Trustee also has a duty to take reasonable care to ensure that the Scheme is managed in accordance with the Regulations and the Scheme documents in relation to the investment and borrowing powers applicable to the Scheme. Having carried out such procedures as we consider necessary to discharge our responsibilities as Trustee of the Scheme, it is our opinion, based on the information available to us and the explanations provided, that in all material respects the Scheme, acting through the AFM: (i) has carried out the issue, sale, redemption and cancellation, and calculation of the price of the Scheme s units and the application of the Scheme s income in accordance with the Regulations and the Scheme documents; and (ii) has observed the investment and borrowing powers and restrictions applicable to the Scheme. For and on behalf of National Westminster Bank Plc 250 Bishopsgate London, EC2M 4AA Manager Date 30 May 2018 11

Independent Auditors' Report to the Unitholders of Report on the audit of the financial statements Opinion In our opinion, 's financial statements: give a true and fair view of the financial position of the Trust as at 31 March 2018 and of the net revenue and the net capital losses on its scheme property for the year then ended; and have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland, and applicable law), the Statement of Recommended Practice for UK Authorised Funds, the Collective Investment Schemes sourcebook and the Trust Deed. We have audited the financial statements, included within the Annual Report (the Annual Report ), which comprise: the balance sheet as at 31 March 2018; the statement of total return and the statement of change in net assets attributable to unitholders for the year then ended; the distribution tables; and the notes to the financial statements, which include a description of the significant accounting policies. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) ( ISAs (UK) ) and applicable law. Our responsibilities under ISAs (UK) are further described in the Auditors responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence We remained independent of the Trust in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, which includes the FRC s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. Conclusions relating to going concern We have nothing to report in respect of the following matters in relation to which ISAs (UK) require us to report to you when: the Manager s use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or the Manager has not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Trust s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the Trust s ability to continue as a going concern. Reporting on other information The other information comprises all of the information in the Annual Report other than the financial statements and our auditors report thereon. The Manager is responsible for the other information. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except to the extent otherwise explicitly stated in this report, any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify an apparent material inconsistency or material misstatement, we are required to perform procedures to conclude whether there is a material misstatement of the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report based on these responsibilities. 12

Independent Auditors' Report to the Unitholders of (continued) Report of the Manager In our opinion, the information given in the Report of the Manager for the financial year for which the financial statements are prepared is consistent with the financial statements. Responsibilities for the financial statements and the audit Responsibilities of the Manager for the financial statements As explained more fully in the Statement of the Manager's Responsibilities set out on page 10, the Manager is responsible for the preparation of the financial statements in accordance with the applicable framework and for being satisfied that they give a true and fair view. The Manager is also responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Manager is responsible for assessing the Trust s ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless the Manager either intend to wind up or terminate the Trust, or have no realistic alternative but to do so. Auditors responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors report. Use of this report This report, including the opinions, has been prepared for and only for the Trust s unitholders as a body in accordance with paragraph 4.5.12 of the Collective Investment Schemes sourcebook and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing. Other required reporting Opinion on matter required by the Collective Investment Schemes sourcebook In our opinion, we have obtained all the information and explanations we consider necessary for the purposes of the audit. Collective Investment Schemes sourcebook exception reporting Under the Collective Investment Schemes sourcebook we are also required to report to you if, in our opinion: proper accounting records have not been kept; or the financial statements are not in agreement with the accounting records and returns. We have no exceptions to report arising from this responsibility. PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors Edinburgh 30 May 2017 The maintenance and integrity of the St. James s Place website is the responsibility of the Fund Manager; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. 13

Statement of Total Return for the year ended 31 March 2018 Income Net capital (losses)/gains Revenue Expenses Interest payable and similar charges Net revenue before taxation Taxation Net revenue after taxation 01/04/17 to 31/03/18 01/04/16 to 31/03/17 Note 000 000 000 000 2 (164,290) 446,999 3 71,748 60,878 4 (42,386) (33,619) (8) (7) 29,354 27,252 5 (7,510) (6,150) 21,844 21,102 Total return before distributions (142,446) 468,101 Distributions 6 (64,230) (54,729) Change in net assets attributable to unitholders from investment activities (206,676) 413,372 Statement of Change in Net Assets Attributable to Unitholders for the year ended 31 March 2018 01/04/17 to 31/03/18 01/04/16 to 31/03/17 000 000 000 000 Opening net assets attributable to unitholders 2,363,108 1,591,369 Movement due to creation and cancellation of units: Amounts receivable on creation of units 221,757 331,499 Amounts payable on cancellation of units (15,280) (22,839) Change in net assets attributable to unitholders from investment activities (see above) Retained distribution on accumulation units Closing net assets attributable to unitholders 206,477 308,660 (206,676) 413,372 58,207 49,707 2,421,116 2,363,108 14

Balance Sheet as at 31 March 2018 Assets Investments Current assets Debtors Cash and bank balances Total assets Liabilities Creditors Bank overdrafts Distribution payable Other creditors Total liabilities Net assets attributable to unitholders 31/03/18 31/03/17 Note 000 000 2,404,936 2,341,506 8 12,237 13,807 9 18,563 16,703 2,435,736 2,372,016 - (642) (2,596) (2,791) 10 (12,024) (5,475) (14,620) (8,908) 2,421,116 2,363,108 15

Notes to the Financial Statements for the year ended 31 March 2018 1. (a) (b) (c) (d) (e) (f) Accounting and Distribution policies 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. Revenue Dividends receivable from equity investments are credited to the income account when the investments are first quoted ex-dividend. Revenue from other authorised collective investment schemes is recognised when the investments are quoted ex-dividend. Management fee rebates from underlying funds will be taken to revenue or capital depending on the treatment adopted in the underlying funds. Management fee rebates received from the St. James's Place Money Market Unit Trust are recognised as revenue on an accruals basis and form part of the distribution. Expenses All expenses of the Trust are deducted from revenue with the exception of handling charges which are deducted from capital. The manager has agreed that 100% of the annual management charge and all other expenses are to be transferred to capital for the purpose of calculating the distribution, as permitted by the Collective Investment Schemes Sourcebook. Valuation of investments Listed investments have been valued at bid market value at 12.00 midday on 29 March 2018 (31/03/17: bid market value at 12.00 midday), net of any accrued interest which is included in the Balance Sheet as a revenue related item. Authorised unit trusts are valued at cancellation price for funds managed by the manager and a bid price for all other funds. Suspended, delisted, unquoted or manually priced securities are valued by the manager taking into account, where appropriate, latest dealing prices, financial performance and other relevant factors. Foreign exchange Assets and liabilities have been translated into sterling at the exchange rates prevailing at the Balance Sheet date. Transactions involving foreign currencies are converted at the rate ruling on the date of the transaction. Taxation Provision is made for corporation tax at the current rate on the excess of taxable revenue over allowable expenses. UK dividend revenue is disclosed net of any related tax credit. Overseas dividends continue to be disclosed gross of any foreign tax suffered, the tax element being separately disclosed in the tax note. Deferred tax is provided for on the liability method on all timing differences. A deferred tax asset is only recognised to the extent that a timing difference will be of future benefit. 16

Notes to the Financial Statements (continued) for the year ended 31 March 2018 (g) (h) (i) (j) 2. 3. Distribution policy Distributions are made in respect of quarters ended 31 March, 30 June, 30 September and 31 December. At the end of the accounting period all remaining revenue, less revenue expenses and taxation, will be attributable to unitholders. In the case of income unitholders this will be paid as a distribution. In the case of accumulation unitholders the distribution will be reinvested. Equalisation on distributions received is deducted from the cost of the investment. Equalisation Equalisation applies only to units purchased during the distribution period. It is the accrued revenue element of the purchase price of all such units and is refunded to holders of these units as a return of capital. Being capital it is not liable to income tax, but must be deducted from the cost of units for capital gains tax purposes. Special dividends Special dividends are treated as revenue or a repayment of capital reflecting the facts of each particular case. Derivatives The Trust may enter into permitted transactions such as derivative contracts or forward foreign currency transactions. Where these transactions are used to protect or enhance revenue, and the circumstances support this, the returns are included within net revenue in the Statement of Total Return. Where the transactions are used to protect or enhance investments, and the circumstances support this, the returns are treated as capital and included within gains/losses on investments in the Statement of Total Return. Any open positions in these type of transactions at the year end are included in the Balance Sheet at their mark to market value. Net capital (losses)/gains Non-derivative securities Forward currency contracts Currency gains/(losses) Handling charges Net capital (losses)/gains Revenue 01/04/17 to 31/03/18 01/04/16 to 31/03/17 000 000 (165,182) 447,968 5-896 (964) (9) (5) (164,290) 446,999 01/04/17 to 31/03/18 01/04/16 to 31/03/17 000 000 UK dividends 3,749 7,771 Overseas dividends 67,804 52,517 Distributions from Regulated Collective Investment Schemes Interest distributions 9 12 Bank interest 2 3 Management charge rebate on underlying holdings 184 148 Scrip dividends - 427 Total revenue 71,748 60,878 17

Notes to the Financial Statements (continued) for the year ended 31 March 2018 4. 5. (a) (b) (c) (d) Expenses 01/04/17 to 31/03/18 01/04/16 to 31/03/17 000 000 Payable to the Manager Management charge 33,778 26,837 Other expenses Investment adviser's fees 8,608 6,782 Total expenses 42,386 33,619 All expenses are paid by the Manager out of the Annual Management Charge with exception of the Investment Adviser fees and AMC fee rebates. This includes current year Audit Fee of 9,640 (31/03/17: 9,360). Taxation Analysis of charge in year: Irrecoverable overseas tax Factors affecting total tax charge for the year: 01/04/17 to 01/04/16 to 31/03/18 31/03/17 000 000 7,510 6,150 The tax assessed for the year is higher than the standard rate of corporation tax in the UK for an authorised unit trust of 20% (2017: 20%). The differences are explained below: Net revenue before taxation 29,354 27,252 Corporation Tax at 20% (2017: 20%) Effects of: UK dividends not subject to corporation tax Non taxable scrip dividends Non taxable foreign dividends Movement in excess management expenses Irrecoverable overseas tax Total tax charge for year (note 5a) 5,871 5,450 (750) (1,554) - (85) (13,561) (10,503) 8,440 6,692 7,510 6,150 7,510 6,150 Authorised Unit Trusts are exempt from tax on capital gains, therefore any capital return is not included in the above reconciliation. Deferred taxation: There is no provision required for deferred taxation at the balance sheet date. Factors that may affect future tax charges At the year end, after offset against revenue taxable on receipt, there is a potential deferred tax asset of 25,185,952 (31/03/17: 16,746,225) relating to surplus management expenses. No deferred tax asset was recognised in the current or prior year as it was considered unlikely the Trust would generate sufficient taxable profits in the future to utilise these amounts. 18

Notes to the Financial Statements (continued) for the year ended 31 March 2018 6. Distributions The distributions take account of revenue received on the creation of units and revenue deducted on the cancellation of units and comprises: 01/04/17 to 31/03/18 01/04/16 to 31/03/17 000 000 First interim distribution 24,307 19,341 Second interim distribution 14,739 10,325 Third interim distribution 10,534 10,093 Final distribution 15,278 15,983 64,858 55,742 Add: Revenue deducted on cancellation of units 39 45 Deduct: Revenue received on creation of units (667) (1,058) Net distributions for the year 64,230 54,729 7. Movement between net revenue and net distributions 01/04/17 to 31/03/18 01/04/16 to 31/03/17 000 000 Net revenue after taxation 21,844 21,102 Management charge paid out of capital 33,778 26,845 Other expenses paid out of capital 8,608 6,782 Add: brought forward from previous year 1 1 Less: carried forward to next year (1) (1) Net distributions for the year 64,230 54,729 8. Debtors 31/03/18 31/03/17 000 000 Sales awaiting settlement 2,115 - Amounts receivable for creation of units 2,067 5,325 Accrued revenue 4,031 5,444 Rebate receivable on underlying holdings 24 11 Overseas tax recoverable 3,996 3,023 Corporation tax recoverable 4 4 Total debtors 12,237 13,807 9. Cash and bank balances 31/03/18 31/03/17 000 000 Cash and bank balances: Sterling 13,160 15,779 Cash and bank balances: Overseas 5,403 924 Total cash and bank balances 18,563 16,703 10. Other creditors Purchases awaiting settlement Amounts payable for cancellation of units Accrued expenses Total other creditors 31/03/18 31/03/17 000 000 8,271-67 11 3,686 5,464 12,024 5,475 19

Notes to the Financial Statements (continued) for the year ended 31 March 2018 11. Units in issue Reconciliation of the unit movement in the year: L Income L Accumulation H Accumulation Y Accumulation 12. Opening units Units Units Closing units in in issue converted Units Created Cancelled issue 154,875,489-10,069,607 (2,912,616) 162,032,480 1,137,473,504-107,845,684 (5,602,260) 1,239,716,928 5,423-4,806-10,229 16,976-2,234,971 (157,694) 2,094,253 Related party transactions St. James's Place Unit Trust Group Limited together with the subsidiaries including associates are related parties and regarded as controlling parties by virtue of having the ability to act in respect of operations of the Trust. The Manager's service charge paid to St. James's Place Unit Trust Group Limited is shown in note 4 and details of the value of units created and cancelled by St. James's Place Unit Trust Group Limited are shown in the Statement of Change in Net Assets Attributable to Unitholders. The net balances due to St. James's Place Unit Trust Group Limited at the year end in respect of these transactions was 747,740 (31/03/17: 2,607,497). The Manager, St. James's Place Unit Trust Group Limited, is a subsidiary of St. James's Place Wealth Management Group plc ('SJPWMG'). Two fellow subsidiaries of SJPWMG, St. James's Place International plc and St. James's Place UK plc, invest some of their life and pension policyholders' funds into the. The value of these investments at the year end was 1,472,605,347 (31/03/17: 1,439,461,070). Included in the investment portfolio is a holding of nil units (31/03/17: 44,656,453) in St. James's Place Money Market Unit Trust (St. James's Place Unit Trust Group Limited fund) with a market value of nil (31/03/17: 46,637,726). Revenue and management charge rebates from this holding are shown in note 3 as interest distributions and management charge rebates on the underlying holdings. As at 31/03/18 total revenue earned amounts to 193,812 (31/03/17: 160,186). All transactions with related parties (connected persons) have been entered into in the ordinary course of business and on normal commercial terms. 13. Capital commitments and contingent liabilities On 31 March 2018, the Trust had no capital commitments (31/03/17: nil) and no contingent liabilities (31/03/17: nil). 14. Derivatives and other financial instruments In accordance with the investment objectives, as stated on page 2, the Trust held certain financial instruments. These comprise: Equity shares and units in collective investment schemes. Cash (including overdrafts) and short-term debtors and creditors that arise directly from its operations; and Derivatives which the Trust may enter into (principally futures contracts, options and contracts for difference) for the purpose of which is to manage the market risk arising from the Trust's investment activities (and related financing). The rules in the Scheme Documents set out the financial instruments in which the Trust may invest. The Trust's use of financial instruments during the 'per' satisfies these requirements. 20

Notes to the Financial Statements (continued) for the year ended 31 March 2018 15. Risk management The Manager s objectives in managing investment risk are to ensure that the investment profile of the Trust is consistent with its stated investment objectives and risk profile, and to ensure appropriate liquidity. Day to day responsibility for managing investment risk is delegated to the Investment Adviser, who is required to manage the Trust in accordance with FCA regulations, the Prospectus and the terms of their Investment Management Agreement with the Manager. The Manager monitors the activities of the Investment Adviser, through a variety of mechanisms including the following: Initial and ongoing due diligence of Investment Adviser investment and risk management procedures including on site reviews; Periodic reviews of the investments held by the Trust and their compliance with investment objectives and liquidity requirements; and Ongoing review of the investment performance of the Trust against appropriate benchmarks. The main risks arising from the Trust's financial instruments are market price risk, foreign currency risk, interest rate risk, credit risk and liquidity risk. The Manager's policies for managing these risks are summarised below. These policies have remained unchanged since the beginning of the year to which these financial statements relate (same for 2017). (a) Market price risk Market price risk represents the potential loss the Trust might suffer through holding market positions in the face of price movements. The Manager has delegated the investment management of the portfolio to an external Investment Adviser who determines the asset allocation and minimises the risk associated with particular countries or industry sectors, whilst continuing to follow the Trust s investment objectives. The Manager has the responsibility for monitoring the portfolio to ensure compliance with the investment objectives and that an acceptable risk and reward profile is maintained. The sensitivity of the fund to market risk is calculated using the Value-at-Risk (VaR) approach. VaR is a mathematical-statistical concept and is commonly used as a standard measure of risk in the financial sector. The maximum potential loss that a fund could suffer under normal market conditions within a given time horizon and a certain degree of confidence is estimated. An absolute VaR is calculated using the historic return series of each fund. Using the Historical VaR approach, a 1% 20-day VaR using 10 years of historical daily data is calculated. An annualised VaR limit of 20% is considered for the fund. The actual VaR is summarised in the table below: 01/04/17 to 31/03/18 01/04/16 to 31/03/17 % % Lowest monthly VaR 13.44 13.46 Highest monthly VaR 13.46 13.46 Average monthly VaR 13.46 13.46 (b) Foreign currency risk The revenue and capital value of the Trust s investments can be significantly affected by currency translation movements as a proportion of the Trust s assets and revenue are denominated in currencies other than sterling, which is the Trust s functional currency. The overall currency exposure for this fund is reduced by the open forwards exposure. The Manager has identified three principal areas where foreign currency risk could impact the Trust: Movements in exchange rates affect the value of investments; Movements in exchange rates affect short term timing differences; and Movements in exchange rates affect revenue received. 21

Notes to the Financial Statements (continued) for the year ended 31 March 2018 The Trust may be subject to short term exposure to exchange rate movements, for instance where there is a difference between the date an investment purchase or sale is entered into and the date when settlement of the proceeds occurs. When the Trust enters into such a transaction which will involve the buying or selling of foreign currency in order to complete, a foreign exchange contract is entered into as soon as possible after the initial transaction in order to minimise the exchange rate risk. The Trust receives revenue in currencies other than sterling and movements in exchange rates can affect the sterling values of this revenue. The Trust converts all receipts of revenue into sterling on or near the date of receipt, it does not however hedge or otherwise seek to avoid exchange rate risk on revenue accrued but not received. An analysis for all currencies at the year end is shown below: Net foreign currency assets 31/03/18 31/03/17 Currency Total Total 000 000 GBP 235,902 197,080 AUD 81,197 98,460 BRL 36,597 - CHF 244,739 236,001 EUR 582,336 454,444 HKD 88,325 118,758 JPY 1,598 143,038 KRW 39,870 - USD 1,110,552 1,115,327 Total 2,421,116 2,363,108 (c) Interest rate risk Interest receivable on bank deposits or payable on bank overdraft positions will be affected by fluctuations in interest rates. (d) Credit risk Credit risk occurs where there is a risk associated with the uncertainty of a counterparty s ability to meet its obligations. This risk is managed by reviewing the counterparty s credit rating, at the time of purchase and on an ongoing basis, and ensuring that the portfolio is sufficiently diversified. The impact of movements in credit rating and spread, and their effect on market prices, is considered to be part of market price risk, which is discussed above. The Trust s investments and cash are held on its behalf by State Street Bank and Trust Company (acting as agent), the custodian to the Trust, and its appointed sub custodians. Bankruptcy or insolvency of the custodian or its sub custodians may cause the Trust s rights with respect to securities to be delayed. This risk is managed through ongoing monitoring of the custodian and periodic reviews of its procedures for selecting and monitoring sub custodians, together with ad hoc reviews of custodian and sub custodian credit ratings. Certain transactions in securities that the Trust enters into expose it to the risk that the counterparty will not deliver the investment (purchase) or cash (sale) after the fund has fulfilled its responsibilities. The external Investment Adviser selects acceptable counterparties through which investments are bought and sold. The Manager has responsibility for monitoring the process by which these counterparties are selected to minimise risk. (e) Liquidity risk Liquidity risk arises where liabilities cannot be met when they fall due or can only be met at an uneconomic price. For instance, this could arise if the Trust faces significant redemptions in a short period of time. In order to manage this risk the manager monitors the Trust with the aim of ensuring that it contains diversified liquid assets, that the Trust possesses sufficient liquidity for the purpose of meeting the redemption of units, and that the Trust has sources of borrowing available to it. 22

Notes to the Financial Statements (continued) for the year ended 31 March 2018 (f) (g) Maturity profile of financial liabilities All financial liabilities of the Trust at the year end are due to settle in one year or less, or on demand. (h) 16. Derivative risk The Manager may use derivative instruments to hedge the value of the investment portfolio against market, currency and stock specific risk through investment in warrants, options, forwards and futures. The purpose of the financial instruments is efficient portfolio management. In particular futures may be used to implement the investment policy in a timely manner and to manage market risk arising from the time lag between funds being receivable or payable by the Trust and investment and disinvestment in underlying securities. No such derivatives were held by the Trust in the year to 31/03/2018. Fair value of financial assets and liabilities There is no material difference between the value of the financial assets and liabilities, as shown in the Balance Sheet, and their fair values. Portfolio transaction costs Analysis of total trade costs. Collective Investment Schemes Equities Trades in the year before transaction costs Commissions Collective Investment Schemes Equities Total commissions Taxes Collective Investment Schemes Equities Total taxes Total costs Trades in the year after transaction costs Purchases Sales 01/04/17 to 01/04/16 to 01/04/17 to 01/04/16 to 31/03/18 31/03/17 31/03/18 31/03/17 000 000 000 000 668,506 399,476 644,137 386,917 1,407,468 1,007,673 1,206,095 679,477 2,075,974 1,407,149 1,850,232 1,066,394 - - - - 908 812 (674) (525) 908 812 (674) (525) - - - - 1,162 308 (105) (24) 1,162 308 (105) (24) 2,070 1,120 (779) (549) 2,078,044 1,408,269 1,849,453 1,065,845 Total transaction cost expressed as a percentage of asset type cost. Purchases Sales 01/04/17 to 01/04/16 to 01/04/17 to 01/04/16 to 31/03/18 31/03/17 31/03/18 31/03/17 % % % % Commissions Collective Investment Schemes - - - - Equities 0.06 0.08 0.06 0.08 Taxes Collective Investment Schemes Equities - - - - 0.08 0.03 0.01 0.00 23

Notes to the Financial Statements (continued) for the year ended 31 March 2018 17. Total transaction cost expressed as a percentage of net asset value. 01/04/17 to 31/03/18 01/04/16 to 31/03/17 % % Commissions Taxes Total costs 0.06 0.05 0.11 0.06* 0.02 0.08* *Restated. Average portfolio dealing spread The average portfolio dealing spread at the balance sheet date was 0.04% (31/03/2017: 0.04%). There have been no soft commission arrangements relating to dealings in the property of the scheme during the year (31/03/17: nil). Fair value The intention of a fair value measurement is to estimate the price at which an asset or a liability could be exchanged in the market conditions prevailing at the measurement date. The measurement assumes the exchange is an orderly transaction (that is, it is not a forced transaction, involuntary liquidation or distress sale) between knowledgeable, willing participants on an independent basis. The purpose of the fair value hierarchy is to prioritise the inputs that should be used to measure the fair value of assets and liabilities. The highest priority is given to quoted prices at which a transaction can be entered into and the lowest priority to unobservable inputs. Valuation technique Level 1 Level 2 Level 3 Total fair value 31/03/18 31/03/17 Assets Liabilities Assets Liabilities 000 000 000 000 2,333,941-2,294,868-70,995-46,638 - - - - - 2,404,936-2,341,506 - Level 1: The unadjusted quoted price in an active market for identical assets or liabilities that the entity can access at the measurement date. Level 2: Inputs other than quoted prices included within Level 1 that are observable (i.e. developed using market data) for the asset or liability, either directly or indirectly. Level 3: Inputs are unobservable (i.e. for which market data is unavailable) for the asset or liability. 24