GLOBAL UNIT TRUST - sjp-group.production.investis.com/media/Files/S/sjp-group... · St. James's...

GLOBALUNIT TRUST

FOR THE YEAR ENDING 31 MARCH 2015

I. S. Gascoigne D. J. Lamb

PricewaterhouseCoopers LLPAtria One144 Morrison StreetEdinburgh, EH3 8EXUnited Kingdom

United Kingdom

London, EC4V 4LAUnited Kingdom

RegistrarInternational Financial Data Services (UK) Limited

St. Nicholas LaneBasildon, SS15 5FS

IFDS House

(Authorised and regulated by the Financial Conduct Authority)


Independent Auditor

Prospectus and Manager's Reports

Copies of the up to date Prospectus (Scheme Particulars) and latest Manager's Report andFinancial Statements for the range of St. James's Place Unit Trusts can be requested from amember of the St. James's Place Partnership or, at any time during normal business hours, fromthe Administration Centre at PO Box 9034, Chelmsford CM99 2XA.Freephone: 0800 027 1031

(Authorised by the Securities and Exchange Commission)

United States of America

160 Queen Victoria Street

TrusteeBNY Mellon Trust & Depositary (UK) Limited

875 East Wisconsin Avenue, Suite 800Milwaukee, Wisconsin 53202


Investment AdviserArtisan Partners Limited Partnership

Directors of the ManagerD. C. BellamyA. M. Croft

Freephone: 0800 027 1031

PO Box 9034, Chelmsford, CM99 2XA

St. James's Place Global Unit Trust

ManagerSt. James's Place Unit Trust Group Limited

United Kingdom

1

08/01/07 to 31/03/15

31/03/10 to 31/03/15

31/03/14 to 31/03/15

% change % change % change

+68.5 +77.2 +15.5+88.6 +80.0 +15.6

+77.9 +69.3 +19.7MSCI World**

St. James's Place Global Unit TrustIncome units (offer to offer)*Accumulation units (offer to offer)

Source: Lipper for Fund returns

REMEMBER THAT THE PRICE OF UNITS AND REVENUE FROM THEM MAY GO DOWN ASWELL AS UP. PLEASE BE AWARE THAT PAST PERFORMANCE IS NOT INDICATIVE OF FUTUREPERFORMANCE.

* Income Units were made available on the 1 October 2007.

Investment Adviser's Comments

Volatility returned to the market in the latter half of 2014 as investors were faced with increasingdivergence among global growth rates and corresponding central bank moves. Oil and othercommodity prices fell and emerging markets were broadly pressured by the strengthening USdollar. In January and February 2015, major equity markets advanced in support of central bankactivity, namely the ECB’s larger-than-expected quantitative easing program. Trading conditionswere choppier in March as investors worried about slipping oil prices, lingering troubles inGreece and the upcoming earnings season.

We added Citigroup to the portfolio. Citigroup is one of the world’s largest financial institutionsand credit card issuers, and very well capitalised. The combination of the global bankingfranchise and the potential for substantial excess capital generation makes its valuation highlyattractive. On the sale side, we closed a handful of positions, including Kao and Unilever. Bothcompanies reached our estimate of intrinsic value.

While our team is busy scouring the globe for attractive investments, our cash levels remainelevated as we continue to be cautious about valuations. We continue to adhere to ourdisciplined investment process.

** MSCI World return is from 1 October 2007 to 31 March 2015.

Indices - actual

Global markets finished the period in strongly positive territory. The portfolio posted strongabsolute gains, but trailed the MSCI World Index.

Counted among the portfolio’s top contributors for the period were Medtronic and Cisco.

Performance at medical device company Medtronic was driven by new products, an area of focuswhich is translating into growth. Network products company Cisco was boosted by strength in itscore switching category, where the company is gaining traction with its new products andbeginning to benefit from the positive part of a product cycle. A small number of holdingsdetracted meaningfully from performance, including UK grocer Tesco and auto manufacturer KiaMotors.

Artisan Partners Limited Partnership 15 April 2015


Report of the Manager

During the year under review, 1 April 2014 to 31 March 2015, the St. James's Place Global UnitTrust Income unit offer price rose by 15.5% from 158.4p to 183.0p and the Accumulation unitoffer price (in which revenue is reflected in the price rather than distributed) rose by 15.6% from163.2p to 188.6p.

The Trust's PerformanceThe performance of the Trust since its launch in January 2007, over the five year period sinceMarch 2010 and over the year under review is shown below, together with figures for the mostcommonly quoted indices in comparable markets where the major proportion of the Trust hasbeen invested.

The Manager's Report consists of Report of the Manager, The Trust's Performance, InvestmentAdviser's Comments, Risk and Reward Profile and Portfolio Statement.

2

per £1,000Invested

Offer Bid at 04/01/10p p p £

109.2 86.66 0.542 5.60112.1 88.62 0.745 7.70124.4 102.40 0.166 1.72158.0 117.30 0.173 1.79175.9 143.70 - -185.4 163.40 - -

per £1,000Invested

Offer Bid at 04/01/10p p p £

111.4 88.44 0.550 5.60115.2 91.09 0.760 7.74128.1 105.04 0.171 1.74162.8 120.80 0.178 1.81181.4 148.10 - -191.2 168.40 - -

Market NAV NAVof Class per Unit

£'000 p10,188,806 13,724 134.69 11,501,585 17,325 150.63 11,956,265 20,816 174.10

Market NAV NAVof Class per Unit

£'000 p1,069,142,447 1,484,415 138.84 1,229,516,862 1,909,094 155.27 1,334,095,959 2,394,126 179.46

March

201520142013

Accumulation

Income

Units in Issue

Units in Issue

201520142013MarchYear ended

Year ended

Net Asset Values

The record of net distributions paid/payable per unit is shown below:

Net revenue distributed

20112012201320142015*

20112012201320142015*

Accumulation

Performance Record


* To 31 March 2015

Risk and Reward Profile

Ongoing Charges Figure

The Ongoing Charges Figure ('OCF') is the total expenses paid by the Trust in the year against itsaverage net asset value. It excludes the cost of buying or selling assets for the Trust (unless theseassets are shares of another trust). The OCF can fluctuate as underlying costs change.

The synthetic risk and reward indicator for the St. James’s Place Global Unit Trust, as disclosed inits most recent Key Investor Information Document (KIID), is a 5. It was calculated usingperformance data up to 2 February 2015.

The Ongoing Charges Figure for the year ended 31 March 2015 was 1.74% (31 March 2014:1.77%) for Income units and 1.74% (31 March 2014: 1.77%) for Accumulation units.

The risk category is recalculated weekly and during the year under review, the risk category didnot change.

Unit Price History and Record of Net Distributions Paid/Payable

Income

2010

2010

Highest Lowest

Calendar yearper unit

Highest Lowestper unit

Calendar year

Net revenue distributed

3

Security Holdings

MarketValue£000

% ofNet

Assets

BELGIUM (1.82%) 31,904 1.32Groupe Bruxelles Lambert 568,955 31,904 1.32

BERMUDA (2.88%) 75,278 3.11Arch Capital 1,662,021 70,375 2.91Markit 268,274 4,903 0.20

BRAZIL (0.00%) 2,754 0.11Raia Drogasil 470,200 2,754 0.11

CANADA (2.42%) 45,746 1.89Imperial Oil 1,685,105 45,746 1.89

CAYMAN ISLANDS (0.00%) 12,487 0.52Alibaba ADR 59,168 3,356 0.14Baidu ADR 14,835 2,110 0.09Sands China 344,400 965 0.04Tencent 471,800 6,056 0.25

DENMARK (2.12%) 91,272 3.78Carlsberg 687,672 38,383 1.59Genmab 94,246 4,830 0.20ISS 2,254,628 48,059 1.99

FRANCE (1.85%) 21,453 0.89Vivendi 1,286,813 21,453 0.89

GERMANY (0.00%) 1,824 0.08Zalando 108,219 1,824 0.08

HONG KONG (0.00%) 3,606 0.15Hong Kong Exchanges and Clearing 217,900 3,606 0.15

INDIA (0.16%) - -

IRELAND (0.97%) 94,351 3.90Accenture 247,687 15,805 0.65James Hardie Industries 496,217 3,892 0.16Medtronic 1,409,333 74,654 3.09

ITALY (0.00%) 2,118 0.09Moncler 188,238 2,118 0.09

JAPAN (2.06%) 8,793 0.37FANUC 39,000 5,769 0.24Harmonic Drive Systems 30,126 450 0.02Tokyo Electron 54,500 2,574 0.11

LUXEMBOURG (0.00%) 3,172 0.13Eurofins Scientific 17,522 3,172 0.13

MEXICO (0.00%) 5,467 0.22Infraestructura Energetica Nova 1,008,229 3,712 0.15PLA Administradora Industrial# 1,292,173 1,755 0.07

NETHERLANDS (2.52%) 58,909 2.44ING 5,099,956 50,322 2.08TNT Express 1,996,592 8,587 0.36

NORWAY (1.24%) 23,358 0.97Orkla 4,610,427 23,358 0.97


Portfolio Statement

as at 31 March 2015

4

Security Holdings

MarketValue£000

% ofNet

Assets


Portfolio Statement (continued)

as at 31 March 2015

SINGAPORE (0.73%) 19,834 0.82Flextronics International 2,320,583 19,834 0.82

SOUTH KOREA (3.13%) 102,502 4.25Amorepacific 1,652 3,374 0.14Kia Motors 1,052,376 28,936 1.20Samsung Electronics 80,040 70,192 2.91

SWEDEN (0.00%) 10,433 0.43Electrolux 51,165 993 0.04Hexagon 404,428 9,440 0.39

SWITZERLAND (7.91%) 212,034 8.78ABB 3,437,576 49,276 2.04Adecco 801,311 45,106 1.87Novartis 772,582 51,752 2.14Pargesa 43,997 2,136 0.09TE Connectivity 1,315,677 63,764 2.64

TAIWAN (0.00%) 3,898 0.16Hermes Microvision 100,000 3,898 0.16

UNITED KINGDOM (26.62%) 543,035 22.48AMEC 2,761,004 25,525 1.06Aon 488,235 32,358 1.34ASOS 104,839 3,798 0.16Associated British Foods 57,963 1,641 0.07Burberry 114,485 1,989 0.08Compass 2,960,618 34,906 1.45Diageo 1,333,357 24,894 1.03Direct Line Insurance 1,744,211 5,574 0.23Lloyds Banking Group 50,166,565 39,576 1.64Rotork 80,817 2,004 0.08Royal Bank of Scotland 19,858,126 68,173 2.82Serco 3,281,494 4,450 0.18Serco Rights Issue 16/04/2015 3,281,494 1,231 0.05St. James's Place Money Market Unit Trust L Acc† 217,059,192 226,332 9.37Tesco 28,222,883 69,019 2.86Weir 91,591 1,565 0.06

UNITED STATES (39.60%) 971,096 40.22Abbott Laboratories 152,065 4,838 0.20American Express 870,284 45,882 1.90Anadarko Petroleum 31,934 1,809 0.07Apple 78,237 6,679 0.28Applied Materials 3,923,439 60,334 2.50Bank of New York Mellon‡ 3,306,715 89,993 3.73Biogen 24,643 7,184 0.30Chipotle Mexican Grill 5,405 2,392 0.10Chubb 771,964 53,107 2.20Cisco Systems 3,652,865 68,217 2.82Citigroup 2,159,082 75,317 3.12Citizens Financial 31,499 518 0.02Electronic Arts 73,211 2,942 0.12EQT 38,162 2,132 0.09Facebook 120,677 6,783 0.28Google 'A' Shares 68,852 26,100 1.08Google 'C' Shares 46,704 17,413 0.72IHS 125,823 9,549 0.40Illumina 43,476 5,511 0.23

5

Security Holdings

MarketValue£000

% ofNet

Assets


Portfolio Statement (continued)

as at 31 March 2015

Johnson & Johnson 871,401 59,771 2.48Keurig Green Mountain 32,321 2,488 0.10Marsh & McLennan 1,672,969 63,921 2.65MasterCard 737,296 43,683 1.81McGraw Hill Financial 35,900 2,554 0.11Microsoft 2,321,496 64,215 2.66Monsanto 20,015 1,533 0.06Oracle 3,882,837 113,963 4.72Progressive 1,980,755 36,629 1.52QUALCOMM 1,391,987 64,772 2.68Regeneron Pharmaceuticals 27,300 8,481 0.35Starbucks 82,079 5,323 0.22Visa 154,008 6,829 0.28Walt Disney 60,239 4,320 0.18Workday 101,619 5,914 0.24

DERIVATIVES (0.02%) (74) -

Forward Currency Contracts(74) -

Investment assets^ 2,345,250 97.11

Total other assets (net) 69,692 2.89

Net assets 2,414,942 100.00

# Real Estate Investment Trust (REIT).

^ Including investment liabilities of (£74K).

All investments held are listed, unless otherwise stated.

Derivative contracts were traded on an eligible derivatives exchange.

Stocks shown as ADRs represent American Depositary Receipts.

† During the year under review the Manager decided to place some of the sterling cash held ondeposit into the St. James’s Place Money Market Unit Trust in order to spread risk across anumber of institutions. The St. James’s Place Money Market Unit Trust is highly liquid and israted AAA by Standard & Poors. This investment is a related party.

‡ This investment is a related party.

Comparative figures shown in brackets relate to 31 March 2014.

Sold JPY405,148,201 for GBP2,215,577 Settlement 13/08/2015

6

Material Portfolio Changes

PurchasesCost

£000St. James's Place Money Market Unit Trust L Acc† 159,507Citigroup 62,607QUALCOMM 61,979ABB 46,498ISS 32,233Samsung Electronics 31,917Tesco 19,795Applied Materials 11,739IHS 9,968Serco Rights Issue 16/04/2015 9,759

SalesProceeds

£000St. James's Place Money Market Unit Trust L Acc† 114,6413M 46,248Kao 39,209Apple 36,571Unilever ADR 30,292Aon 25,146Aramark 24,341Compass 21,608Novartis 19,589URS 17,832

† This investment is a related party.

Stocks shown as ADRs and GDRs represent American Depositary Receipts and Global DepositaryReceipts.


7

●

●

●

●

●

D. J. Lamb 3 June 2015

Directors' Certificate

This report is certified in accordance with the requirements of the rules in the Financial ConductAuthority's Collective Investment Schemes Sourcebook.

Directors A. M. Croft London

The Manager is responsible for keeping proper accounting records and for the management ofthe Trust in accordance with its Trust Deed, Prospectus and the Rules. The Manager has ageneral responsibility for taking such steps as are reasonably open to it to prevent and detectfraud and other irregularities.

St. James's Place Global Unit TrustStatement 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 ("theRules") require the Manager to prepare Financial Statements for each annual accounting periodwhich give a true and fair view of the financial position of the Trust as at the end of the year andof the net expenses and the net capital gains 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 toAuthorised 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 topresume that the Trust will continue in operation.

8

London

3 June 2015


Statement of Trustee's Responsibilities

The Trustee is under a duty to take into custody and to hold the property of the Trust in trust forthe holders of units. It is also the duty of the Trustee to enquire into the conduct of the Managerin the management of the Trust and to ensure that the Trust is managed in accordance with allapplicable rules and restrictions in each annual accounting period, and to report thereon tounitholders.

Report of the TrusteeIn our opinion, the Manager has managed the Trust, in all material aspects, during the periodcovered by this Report in accordance with the investment and borrowing powers and therestrictions applicable to the Trust and otherwise in accordance with the provisions of the TrustDeed and the rules in the Financial Conduct Authority's Collective Investment Scheme provisionsof the Sourcebook.

For and on behalf of:BNY Mellon Trust & Depositary (UK) Limited

9

●

●

●

●

●

●

●

●

●

What an audit of financial statements involvesWe conducted our audit in accordance with International Standards on Auditing (UK and Ireland)(“ISAs (UK & Ireland)”). An audit involves obtaining evidence about the amounts and disclosuresin the financial statements sufficient to give reasonable assurance that the financial statementsare free from material misstatement, whether caused by fraud or error. This includes anassessment of:

whether the accounting policies are appropriate to the Trust’s circumstances and have beenconsistently applied and adequately disclosed;

the reasonableness of significant accounting estimates made by the Authorised FundManager; and

the overall presentation of the financial statements.

In addition, we read all the financial and non-financial information in the Annual Report (the “Annual Report”) to identify material inconsistencies with the audited financial statements andto identify any information that is apparently materially incorrect based on, or materiallyinconsistent with, the knowledge acquired by us in the course of performing the audit. If webecome aware of any apparent material misstatements or inconsistencies we consider theimplications for our report.

Independent Auditors' Report to the Unitholders of


Our opinion

In our opinion the financial statements, defined below:give a true and fair view of the financial position of the Trust as at 31 March 2015 and ofthe net expenses and the net capital gains of the scheme property of the Trust for the yearthen ended; and

have been properly prepared in accordance with United Kingdom Generally AcceptedAccounting Practice, the Statement of Recommended Practice for Authorised Funds, theCollective Investment Schemes sourcebook and the Trust Deed.

This opinion is to be read in the context of what we say in the remainder of this report.

What we have audited

The financial statements of St. James’s Place Global Unit Trust (the “Trust”), which are preparedby St. James’s Place Unit Trust Group Limited (the “Authorised Fund Manager”), comprise:

the balance sheet of the Trust as at 31 March 2015;

the statement of total return of the Trust for the year then ended;

the statement of change in net assets attributable to unitholders of the Trust for the yearthen ended; and

the notes to the Trust’s financial statements, which include a summary of significantaccounting policies and other explanatory information.

The financial reporting framework that has been applied in their preparation is applicable lawand United Kingdom Accounting Standards (United Kingdom Generally Accepted AccountingPractice), the Statement of Recommended Practice ‘Financial Statements of Authorised Funds’issued by the Investment Management Association (the “Statement of Recommended Practice forAuthorised Funds”), the Collective Investment Schemes sourcebook and the Trust Deed.

In applying the financial reporting framework, the Authorised Fund Manager has made a numberof subjective judgements, for example in respect of significant accounting estimates. In makingsuch estimates, they have made assumptions and considered future events.

10

(continued)

Independent Auditors' Report to the Unitholders of


●

●

●

●

Responsibilities for the financial statements and the audit

Our responsibilities and those of the Authorised Fund Manager

Chartered Accountants & Statutory AuditorsEdinburgh3 June 2015The maintenance and integrity of the St. James’s Place website is the responsibility of the Fund Manager; the work carried out by theauditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes thatmay 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 inother jurisdictions.

PricewaterhouseCoopers LLP

Our responsibility is to audit and express an opinion on the financial statements in accordancewith applicable law and ISAs (UK & Ireland). Those standards require us to comply with theAuditing Practices Board’s Ethical Standards for Auditors.

This report, including the opinions, has been prepared for and only for the Trust’s unitholders asa body in accordance with paragraph 4.5.12 of the Collective Investment Schemes sourcebookand for no other purpose.

We do not, in giving these opinions, accept or assume responsibility for any other purpose or toany other person to whom this report is shown or into whose hands it may come save whereexpressly agreed by our prior consent in writing.

Opinions on matters prescribed by the Collective Investment Schemes sourcebookIn our opinion:

we have obtained all the information and explanations we consider necessary for thepurposes of the audit; and

the information given in the Authorised Fund Manager’s Report for the financial year forwhich the financial statements are prepared is consistent with the financial statements.

Other matters on which we are required to report by exception

Propriety of accounting records and information and explanations received

Under the Collective Investment Schemes sourcebook we are required to report to you if, in ouropinion:

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.

As explained more fully in the Authorised Fund Manager’s Responsibilities Statement set out onpage 8, the Authorised Fund Manager is responsible for the preparation of the financialstatements and for being satisfied that they give a true and fair view.

11

Notes £000 £000 £000 £000

2 324,646 187,4173 33,544 31,6474 (37,226) (29,915)6 - -

(3,682) 1,732 5 (3,670) (3,031)

(7,352) (1,299)

317,294 186,1186 90 100

317,384 186,218

£000 £000 £000 £0001,926,419 1,498,139

290,066 280,890

(118,991) (38,722)

171,075 242,16876 -

(12) (107)

317,384 186,218- 1

2,414,942 1,926,419

Bid Offerp p

174.0 183.0179.4 188.6

Closing net assets attributable to unitholders

Change in net assets attributable to unitholders from investment activities (see above)

01/04/14 to 31/03/15 01/04/13 to 31/03/14

Amounts receivable oncreation of units

Class actions

Dilution levy charged

Opening net assets attributable to unitholdersMovement due to creation and cancellation of units:

Stamp duty reserve tax

Income units

Amounts payable on cancellation of units

The prices per unit as at 31 March 2015 (unaudited) were:

for the year ended 31 March 2015

Revenue

Finance costs: Equalisation

Expenses

Net (expenses)/revenue before taxation

Total returnbefore equalisation

Finance costs: Interest

Taxation

Net expenses after taxation

Change in net assets attributable to unitholders from investment activities

Statement of Change in Net Assets Attributable to Unitholders

Net capital gains

Statement of Total Return


Income


01/04/14 to 31/03/15 01/04/13 to 31/03/14

Accumulation units

12


31/03/15 31/03/14

Notes £000 £000 £000 £000

2,345,324 1,850,4428 8,421 9,1589 65,296 68,903

73,717 78,061

2,419,041 1,928,503

(74) (40)Creditors 10 (4,025) (2,044)

Total other liabilities (4,025) (2,044)

(4,099) (2,084)

2,414,942 1,926,419

Total liabilities

Total assets

LiabilitiesInvestment liabilities

Total other assets

as at 31 March 2015

Balance Sheet

Investment assetsAssets

DebtorsCash and bank balances

Net assets attributable to unitholders

13

1.

(a)

(b)

(c)

(d)

(e)

(f)

(g)


Notes to the Financial Statements


Listed investments have been valued at bid market value at 12.00 midday on 31 March2015 (31/03/14: bid market value at 12.00 midday), net of any accrued interest which isincluded in the Balance Sheet as a revenue related item.

All expenses of the Trust are recognised on an accruals basis and are deducted from revenuewith the exception of handling charges and stamp duty reserve tax which are deducted fromcapital.

Transactions involving foreign currencies are converted at the rate ruling on the date of thetransaction.

Deferred tax is provided for on the liability method on all timing differences. A deferred taxasset is only recognised to the extent that a timing difference will be of future benefit.

Distribution policy

Valuation of investments

Provision is made for corporation tax at the current rate on the excess of taxable revenueover allowable expenses.

Assets and liabilities have been translated into sterling at the exchange rates prevailing atthe Balance Sheet date.

The Financial Statements have been prepared under the historical cost basis, as modified bythe revaluation of investments, in compliance with the Financial Conduct Authority'sCollective Investment Schemes Sourcebook. They have been prepared in accordance withapplicable UK accounting standards and in accordance with the Statement of RecommendedPractice (SORP) for Financial Statements of Authorised Funds issued by the IMA in October2010 (IMA SORP 2010).

Accounting and Distribution policies

Basis of accounting

Revenue

Taxation

Foreign exchange

There is no distribution for the current period. Where there is distributable income, theManager may choose to pay all remaining revenue, less revenue expenses and taxation as adistribution at the end of the accounting period. In the case of income unitholders this willbe paid as a distribution. In the case of accumulation unitholders the distribution will bereinvested.

Open forward currency contracts are shown in the Portfolio Statement and are valued usingcontracted forward rates. The net gains/(losses) are reflected in "Forward currencycontracts" in Net capital gains.

UK dividend revenue is disclosed net of any related tax credit. Overseas dividends continueto be disclosed gross of any foreign tax suffered, the tax element being separately disclosedin the tax note.

Authorised unit trusts are valued at cancellation price for funds managed by the managerand a bid price for all other funds. Suspended, delisted, unquoted or manually pricedsecurities are valued by the manager taking into account, where appropriate, latest dealingprices, financial performance and other relevant factors.

Expenses

Dividends receivable from equity investments are credited to the revenue account when theinvestments are first quoted ex-dividend. Interest on deposits is accounted for on an accrualsbasis. Revenue from other authorised collective investment schemes is recognised when theinvestments are quoted ex-dividend. Management fee rebates from underlying funds will betaken to revenue or capital depending on the treatment adopted in the underlying funds.Management fee rebates received from St. James's Place Money Market Unit Trust arerecognised as revenue on an accruals basis and form part of the distribution.

14


(continued)Notes to the Financial Statements

(h)

(i)

(j)

(k)

2.01/04/14 to

31/03/1501/04/13 to

31/03/14£000 £000

323,086 181,7931,562 1,064

88 4,576(90) (16)

324,646 187,417

3.01/04/14 to

31/03/1501/04/13 to

31/03/14£000 £000

6,987 7,764Overseas dividends 25,036 22,899Distributions from Regulated Collective Investment Schemes Interest distributions 194 106Bank interest 135 127Revenue from Overseas REITs 60 -Interest on capital 29 -Management charge rebate on underlying holdings 684 565Scrip dividends 419 186

33,544 31,647

Non-derivative securities

Net capital gains

Special dividends

Special dividends are treated as revenue or a repayment of capital reflecting the facts ofeach particular case.

The ordinary element of stocks received in lieu of cash dividends is recognised as revenueand where applicable, is included in the distribution. In the case of enhanced scripdividends, the value of the enhancement is treated as capital.

Scrip dividends

Derivatives

Net capital gains

Forward currency contracts

Handling chargesCurrency gains

Total revenue

Equalisation

Revenue

UK dividends

Equalisation applies only to units purchased during the distribution period. It is the accruedrevenue element of the purchase price of all such units and is refunded to holders of theseunits as a return of capital. Being capital it is not liable to income tax, but must bededucted from the cost of units for capital gains tax purposes.

The Trust may enter into permitted transactions such as derivative contracts or forwardforeign currency transactions. Where these transactions are used to protect or enhancerevenue, the returns are included within net revenue in the Statement of Total Return.

Where the transactions are used to protect or enhance investments, the returns are treatedas 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.

15



4.01/04/14 to

31/03/1501/04/13 to

31/03/14£000 £000

35,392 28,438

170 144

Audit fee 9 7Investment administration fee 99 83

2 -1,413 1,160

137 804 3

1,664 1,333

37,226 29,915

5.01/04/14 to

31/03/1501/04/13 to

31/03/14£000 £000

(a)3,670 3,031

(b)

(3,682) 1,732

(736) 346

(1,397) (1,553)(84) (37)

(5,007) (4,580)(1) -

7,225 5,8243,670 3,031

3,670 3,031

(c)

(d) Factors that may affect future tax charges

There is no provision required for deferred taxation at the balance sheet date.

Current tax charge for year (note 5a)

At the year end, after offset against revenue taxable on receipt, there is a potential deferredtax asset of £22,201,954 (31/03/14: £14,976,239) relating to surplus managementexpenses. No deferred tax asset was recognised in the current or prior year as it wasconsidered unlikely the Trust would generate sufficient taxable profits in the future to utilisethese amounts.

Authorised Unit Trusts are exempt from tax on capital gains, therefore any capital return isnot included in the above reconciliation.

Deferred taxation:

Net (expenses)/revenue before taxation

Irrecoverable overseas tax

Effects of:

Non taxable scrip dividendsUK dividends not subject to corporation tax

Factors affecting current tax charge for the year:

The tax assessed for the year is higher than the standard rate of corporation tax in the UKfor an authorised unit trust of 20% (2014: 20%). The differences are explained below:

Eligible unrelieved foreign taxationMovement in excess management expenses

Non taxable foreign dividends

Trustee's fee

Corporation Tax at 20% (2014: 20%)

Taxation

Irrecoverable overseas tax

Other expenses

Tax & compliance fee

Management charge

Expenses

Analysis of charge in year:

Registrar's feeProfessional fees

Safe custody fee

Payable to the Trustee

Total expenses

Payable to the Manager

16



6.

Equalisation and interest

01/04/14 to 31/03/15

01/04/13 to 31/03/14

£000 £0005 44

(95) (144)

(90) (100)

(90) (100)

7.01/04/14 to

31/03/1501/04/13 to

31/03/14£000 £000

(7,352) (1,299)7,262 1,192

- 7

(90) (100)

8.31/03/15 31/03/14

£000 £0001,956 4852,484 6,2442,407 930

60 491,511 1,450

3 -

8,421 9,158

9.31/03/15 31/03/14

£000 £00063,461 68,104

1,835 799

65,296 68,903

10.31/03/15 31/03/14

£000 £0003,003 1,880

818 -204 164

4,025 2,044

11.

Total creditors

Amounts payable for cancellation of unitsAccrued expenses

Related party transactions

Cash and bank balances

St. James's Place Unit Trust Group Limited and BNY Mellon Trust & Depositary (UK) Limitedtogether with their associates are related parties and regarded as controlling parties byvirtue 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 innote 4 and details of the value of units created and cancelled by St. James's Place Unit TrustGroup Limited are shown in the Statement of Change in Net Assets Attributable toUnitholders. The net balances due from St. James's Place Unit Trust Group Limited at theyear end in respect of these transactions was £1,666,018 (31/03/14: £6,244,469).

Creditors

Finance costs

The equalisation takes account of revenue received on the creation of units and revenuededucted on the cancellation of units and comprises:

Deduct: Revenue received on creation of units

Accrued revenueIncome tax recoverable

Deficit transferred to capital

Add: Revenue deducted on cancellation of units

Amounts receivable for creation of units

Net equalisation for the year

Debtors

Net equalisation for the year

Movement between net expenses and net distribution

Purchases awaiting settlement

Cash and bank balances: Sterling

Total cash and bank balances

Dilution Levy Receivable

Sales awaiting settlement

Net expense after taxation

Overseas tax recoverable

Total finance costs

Add: brought forward from previous year

Cash and bank balances: Overseas

Total debtors

17



12.

13.

●

●

●

14.

●

●

●

Initial and ongoing due diligence of Investment Adviser investment and risk managementprocedures – including on site reviews;

Periodic reviews of the investments held by the Trust and their compliance with investmentobjectives and liquidity requirements; and

The rules in the Scheme Documents set out the financial instruments in which the Trust mayinvest. The Trust's use of financial instruments during the year satisfies these requirements.

Included in the investment portfolio is a holding of 217,059,192 units (31/03/14:174,019,476) in St. James's Place Money Market Unit Trust (a St. James's Place Unit TrustGroup Limited fund) with a market value of £226,331,961 (31/03/14: £181,297,667).Revenue and management charge rebates from this holding are shown in note 3 as interestdistributions and management charge rebates on the underlying holdings.

Included in the investment portfolio is a holding of 3,306,715 units (31/03/14: 3,259,891)in Bank of New York Mellon with a market value of £89,993,250 (31/03/14: 68,729,260).Revenue from this holding is shown in note 3 as overseas dividends.

The Manager’s objectives in managing investment risk are to ensure that the investmentprofile of the Trust is consistent with its stated investment objectives and risk profile, and toensure appropriate liquidity. Day to day responsibility for managing investment risk isdelegated to the Investment Adviser, who is required to manage the Trust in accordancewith FCA regulations, the Prospectus and the terms of their Investment ManagementAgreement with the Manager. The Manager monitors the activities of the InvestmentAdviser, through a variety of mechanisms including the following:

The main risks arising from the Trust's financial instruments are market price risk, foreigncurrency risk, credit risk and liquidity risk. The Manager's policies for managing these risksare summarised below. These policies have remained unchanged since the beginning of theyear to which these financial statements relate (same for 2014).

Ongoing review of the investment performance of the Trust against appropriate benchmarks.

Cash (including overdrafts) and short-term debtors and creditors that arise directly from itsoperations; and

Derivatives and other financial instruments

Risk management

In accordance with the investment objectives, as stated on page 22, the Trust held certainfinancial instruments. These comprise:

Capital commitments and contingent liabilities

On 31 March 2015, the Trust had no capital commitments (31/03/14: £nil) and nocontingent liabilities (31/03/14: £nil).

Equity shares and units in collective investment schemes;.

Derivatives which the Trust may enter into (principally futures contracts, options andcontracts for difference) for investment purposes as well as managing the market risk arisingfrom the Trust's investment activities (and related financing).

The Manager, St. James's Place Unit Trust Group Limited, is a subsidiary of St. James's PlaceWealth 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 andpension policyholders' funds into the St. James's Place Global Unit Trust. The value of theseinvestments at the year end was £1,540,616,281 (31/03/14: £1,315,394,250).

Trustee's fees and interest payable to BNY Mellon Trust & Depositary (UK) Limited and theirassociates are shown in notes 4 and 6 respectively. The net balances due from BNY MellonTrust & Depositary (UK) Limited and their associates at the year end in respect of thesetransactions was £nil (31/03/14: £nil).

18



(a)

(b)

●

●

●

Monetary exposures

Non-monetary exposures Total

Monetary exposures

Non-monetary exposures Total

£000 £000 £000 £000 £000 £00067,695 510,677 578,372 107,929 440,346 548,275

(46) 3,892 3,846 - - -(6) 2,754 2,748 - - -18 45,746 45,764 100 46,602 46,702

963 148,270 149,233 891 98,637 99,528511 91,272 91,783 (282) 40,944 40,662480 119,380 119,860 654 119,268 119,922

(322) 10,627 10,305 - - -(2,316) 8,793 6,477 (32,726) 39,859 7,1331,209 102,502 103,711 332 60,244 60,576

8 5,467 5,475 - - -- 23,358 23,358 - 23,888 23,888

21 10,433 10,454 - - -- 3,898 3,898 94 - 94

1,403 1,258,255 1,259,658 (615) 980,254 979,639

69,618 2,345,324 2,414,942 76,377 1,850,042 1,926,419

NOKMXN

SEK

KRW

The revenue and capital value of the Trust’s investments can be significantly affected bycurrency translation movements as a proportion of the Trust’s assets and revenue aredenominated in currencies other than sterling, which is the Trust’s functional currency. Theoverall currency exposure for this fund is reduced by the open forwards exposure.

Foreign currency risk

CAD

An analysis of monetary assets and liabilities for all currencies at the year end is shownbelow:

31/03/15

Movements in exchange rates affect revenue received.

Net foreign currency assets31/03/14

Movements in exchange rates affect the value of investments;

The Manager has identified three principal areas where foreign currency risk could impactthe Trust:

Net foreign currency assets

GBP

JPY

EURHKD

The Trust may be subject to short term exposure to exchange rate movements, for instancewhere there is a difference between the date an investment purchase or sale is entered intoand the date when settlement of the proceeds occurs. When the Trust enters into such atransaction 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 transactionin order to minimise the exchange rate risk.

BRL

DKK

The Trust receives revenue in currencies other than sterling and movements in exchangerates can affect the sterling values of this revenue. The Trust converts all receipts of revenueinto sterling on or near the date of receipt, it does not however hedge or otherwise seek toavoid exchange rate risk on revenue accrued but not received.

TWDUSD

CHF

Market price risk represents the potential loss the Trust might suffer through holding marketpositions in the face of price movements.

Market price risk

Currency

The Manager has delegated the investment management of the portfolio to an externalInvestment Adviser who determines the asset allocation and minimises the risk associatedwith particular countries or industry sectors, whilst continuing to follow the Trust’sinvestment objectives. The Manager has the responsibility for monitoring the portfolio toensure compliance with the investment objectives and that an acceptable risk and rewardprofile is maintained.

Movements in exchange rates affect short term timing differences; and

AUD

19



(c)

(d)

(e)

(f)

(g)

(h)

Credit risk

Certain transactions in securities that the Trust enters into expose it to the risk that thecounterparty will not deliver the investment (purchase) or cash (sale) after the fund hasfulfilled its responsibilities.

Credit risk occurs where there is a risk associated with the uncertainty of a counterparty’sability to meet its obligations. This risk for bonds and money market funds is managed byreviewing 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 creditrating and spread, and their effect on market prices, is considered to be part of market pricerisk, which is discussed above.

The Manager may use derivative instruments to hedge the value of the investment portfolioagainst market, currency and stock specific risk through investment in warrants, options,forwards and futures. The purpose of the financial instruments is efficient portfoliomanagement. In particular futures may be used to implement the investment policy in atimely manner and to manage market risk arising from the time lag between funds beingreceivable or payable by the Trust and investment and disinvestment in underlyingsecurities. Forwards have been used to manage currency risk. As the trust is not considereda sophisticated fund, the manager uses the commitment approach to measure the globalexposure to derivatives.

Maturity profile of financial liabilities

Derivative risk

The external Investment Adviser selects acceptable counterparties through whichinvestments are bought and sold. The Manager has responsibility for monitoring theprocess by which these counterparties are selected to minimise risk.

The Trust’s investments and cash are held on its behalf by State Street Bank and TrustCompany (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 rightswith respect to securities to be delayed. This risk is managed through ongoing monitoringof the custodian and periodic reviews of its procedures for selecting and monitoring subcustodians, together with ad hoc reviews of custodian and sub custodian credit ratings.

Liquidity risk

All financial liabilities of the Trust at the year end are due to settle in one year or less, or ondemand.

Fair value of financial assets and liabilities

There is no material difference between the value of the financial assets and liabilities, asshown in the Balance Sheet, and their fair values.

Liquidity risk arises where liabilities cannot be met when they fall due or can only be met atan uneconomic price. For instance, this could arise if the Trust faces significant redemptionsin a short period of time. In order to manage this risk the manager monitors the Trust withthe aim of ensuring that it contains diversified liquid assets, that the Trust possessessufficient liquidity for the purpose of meeting the redemption of units, and that the Trusthas sources of borrowing available to it.

Interest rate risk

Interest receivable on bank deposits or payable on bank overdraft positions will be affectedby fluctuations in interest rates.

20



15.

01/04/14 to 31/03/15

01/04/13 to 31/03/14

01/04/14 to 31/03/15

01/04/13 to 31/03/14

£000 £000 £000 £000710,114 719,335 534,983 519,146

401 549 (276) (273)307 898 (15) (5)

708 1,447 (291) (278)

710,822 720,782 534,692 518,868

Total costs

CommissionsTaxes

Total trades in the year after transaction costs

Purchases Sales

Non-derivative securities*

Portfolio transaction costs

Analysis of total trade costs.

*This includes transactions in St. James Place Money Market Unit Trust which does notincur transactions costs.

21

The efficient portfolio management techniques permitted in the fund as at 31 March 2015comprise of:

The revenues in the year were nil with no collateral placed or received.

State Street Bank And Trust Company

2,532,673

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.

Minimum Investment

A contract note confirming the subscription or redemption price and the number of unitsinvolved will be forwarded, together with a cancellation notice, where appropriate, on the nextbusiness 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.

Efficient Portfolio Management

Technique Counterparty Exposure (£)

Unit Dealings

Dealings on the Trust take place on a daily basis. Purchase or sale instructions can be made bytelephone 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 dealingday 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 ofpost after receipt of the contract note. In the case of telephone redemptions, the proceeds willnot become payable until the receipt at the Administration Centre of a written request.

Currency Forwards

It is the Manager's intention that the assets of the Unit Trust will be invested so that the UnitTrust will be eligible for inclusion in an ISA.

European Savings Directive

It is the Manager's intention that the Trust will not normally hold 15% or more of its value inmoney debt instruments.

St. James's Place Global Unit Trust is an authorised Unit Trust scheme under section 243 of theFinancial Services and Markets Act (2000) and is constituted by a Trust Deed dated 8 January2007.


General Information

The Trust

The Unit Trust is subject to the rules of the Financial Conduct Authority's Collective InvestmentScheme Sourcebook and is classified as a UCITS Scheme.

The Trust Manager

The Manager of the Trust is St. James's Place Unit Trust Group Limited which is a member of theInvestment Association and is authorised and regulated by the Financial Conduct Authority.

Investment Objectives

The investment objective of the Scheme is to achieve capital appreciation through investment ina global portfolio. The Scheme will invest primarily in UK and overseas equities and may alsoinvest in fixed interest and index linked securities and cash. The Scheme is also permitted toinvest in other transferable securities, money market instruments, units in collective investmentschemes and deposits. The Scheme will concentrate on seeking opportunities for exceptionalgrowth in stocks which, in the opinion of the Investment Adviser, offer good value for money.The Scheme may also invest in transferable securities in new and emerging markets.

The Scheme is permitted to invest in derivative and forward transactions for the purposes ofefficient portfolio management (including hedging).

22


General Information (continued)

(a)

(b)

Management ChargesThe Trust Deed permits the following management charges which are receivable by theManager:

A Preliminary Charge of 5 per cent which is included in the offer price of the Units.

An Annual Management Charge at a rate of 1.67 per cent of the value of the Trust.

Income Distributions

Tax Vouchers

Income distributions are made annually on or before the 31 May.

Accumulation Distributions

Revenue due to accumulation unitholders is reflected in the price of their units.

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 unitspurchased. Unitholders should consult their professional advisers for any advice regarding theirtax position.

Income unitholders that receive income distributions by direct credit and accumulationunitholders (where the distribution income is reinvested) receive an annual consolidated taxvoucher in May with all the relevant payment and tax information required to complete a taxreturn.

Tax vouchers will be enclosed if income unitholders receive payment by cheque.

Report

A report is sent semi-annually to all unitholders on or before 31 May and 30 November.

Capital Gains Tax

The Trust is not liable to tax on capital gains and any individual holding units will not be liableto capital gains tax unless the total chargeable gains for the tax year 2015/2016 exceed£11,100 (2014/2015 £11,000).

23

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 Offi ce:

St. James’s Place House, 1 Tetbury Road, Cirencester, Gloucestershire, GL7 1FP, United Kingdom. Registered in England Number 947644.

Perivan Financial Print 236685 Global (5/15)

GLOBAL UNIT TRUST - sjp-group.production.investis.com/media/Files/S/sjp-group... · St. James's...

Documents

Transcript of GLOBAL UNIT TRUST - sjp-group.production.investis.com/media/Files/S/sjp-group... · St. James's...