New EMERGING MARKETS EQUITY UNIT TRUST/media/Files/... · 2016. 6. 7. · 28/04/14 to 31/03/16...

EMERGING MARKETS EQUITY UNIT TRUST

FOR THE YEAR ENDING 31 MARCH 2016

I. S. Gascoigne D. J. Lamb

PricewaterhouseCoopers LLPAtria One144 Morrison StreetEdinburgh, EH3 8EXUnited Kingdom

Freephone: 0800 027 1031

PO Box 9034, Chelmsford, CM99 2XA

St. James's Place Emerging Markets Equity Unit Trust

ManagerSt. James's Place Unit Trust Group Limited

United Kingdom

(Authorised and regulated by the Financial Conduct Authority)

Investment Adviser Wasatch Advisors Inc.

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

3rd Floor505 Wakara Way

160 Queen Victoria Street

TrusteeBNY Mellon Trust & Depositary (UK) Limited

Salt Lake CityUT 84108United States of America

(Authorised and regulated by the Securities and Exchange Commission)


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

United Kingdom

London, EC4V 4LAUnited Kingdom

RegistrarInternational Financial Data Services (UK) Limited

St. Nicholas LaneBasildon, SS15 5FS

IFDS House


1

28/04/14 to 31/03/16

31/03/15 to 31/03/16

% change % change

+1.8 -10.8+1.8 -10.8

+3.5 -8.8


Report of the Manager

The Trust's Performance

The performance of the Trust since its launch in April 2014 and over the year under review isshown below, together with figures for the most commonly quoted indices in comparable markets where the major proportion of the Trust has been invested.

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

Income units (offer to offer)

Investment Adviser's Comments

For the 12 months ended 31 March 2016, the portfolio underperformed the broader emergingmarkets in what was a difficult year for emerging market equities.

Accumulation units (offer to offer)

Our greatest detractors from performance for the period were International Container TerminalServices, Inc. of the Philippines and PT Tower Bersama Infrastructure Tbk of Indonesia. Shares ofInternational Container declined on concerns about slowing global trade. PT Tower’s stock pricefell on news that the Indonesian government had decided to abrogate the company’s stock-swapagreement with state-run telecommunications giant PT Telekomunikasi Indonesia (Telkom).

Even after their recent gains, a number of emerging market currencies remain undervalued in ourview. We expect low energy prices to provide a continued boost for emerging economies that arenet importers of oil. While we remain cautious toward countries tied to production of oil andother natural resources, we continue to favour countries such as India, Mexico and thePhilippines. Our view toward China also remains cautious on structural concerns.

During a recent visit to South Korea, we visited a new class of innovative Korean companies thathave begun making inroads into the defence industry and healthcare. Our research into both ofthese areas is ongoing.

Indices - actualMSCI Emerging Markets (Total Return)

Emerging markets mostly declined during the first six months of the year on slowing economicgrowth in China and broader concerns about the health of the global economy. Other negativesincluded falling prices for oil and commodities in general. Markets stabilized during the latter partof the period as a weaker outlook for interest rates in the US and Europe enhanced the appeal ofinvestments denominated in emerging market currencies.

Strong demand from the US helped make Mexico our greatest source of positive performanceduring the year. Meanwhile, we underperformed in Indonesia with a higher-than-benchmarkweight and a few stock-specific disappointments.

Our strongest contributors to performance for the year were Grupo Aeroportuario del Pacifico,S.A.B. de C.V. and Bajaj Finance Limited. Grupo Aeroportuario, which operates airports in Mexicounder contracts with the government, is benefiting from favourable economic conditions andincreasing air travel. Bajaj Finance is an Indian non-bank financial company (NBFC) experiencingstronger demand for its loans.

Wasatch Advisors Inc. 13 April 2016

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.

Risk and Reward ProfileThe synthetic risk and reward indicator for the St. James's Place Emerging Markets Equity UnitTrust, as disclosed in its most recent Key Investor Information Document (KIID), is a 6. It wascalculated using indicative performance data for the type of investments held, as the Schemeitself was only launched on 28 April 2014. The risk category is recalculated weekly and duringthe year under review, the risk category did not change.


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Comparative table

as at 31 March 2016

31/03/16 31/03/15

Income

Change in net assets per unit (p) (p)

Opening net asset value per unit 108.21 100.00Return before operating charges* (9.81) 9.54Operating charges (1.87) (1.33)

Return after operating charges* (11.68) 8.21

Distributions on income units - -

Closing net asset value per unit 96.53 108.21

*after direct transaction costs of: 0.27 0.62

Performance

Return after charges† (10.79%) 8.21%

Other informationClosing net asset value (£’000) 1,022 426Closing number of units 1,059,139 393,315Operating charges** 2.01% 1.98%Direct transaction costs 0.29% 0.86%

PricesHighest unit price (p) 119.20 117.60Lowest unit price (p) 84.79 93.99

Net Asset Value and Ongoing Charges Figure

3


Comparative table (continued)

as at 31 March 2016

31/03/16 31/03/15

Accumulation

Change in net assets per unit (p) (p)

Opening net asset value per unit 108.21 100.00Return before operating charges* (9.79) 9.55Operating charges (1.88) (1.34)

Return after operating charges* (11.67) 8.21

Closing net asset value per unit 96.54 108.21

Retained distributions on accumulation units* - -

*after direct transaction costs of: 0.27 0.62

Performance

Return after charges† (10.78%) 8.21%

Other informationClosing net asset value (£’000) 255,524 138,782Closing number of units 264,690,562 128,257,849Operating charges** 2.01% 1.98%Direct transaction costs 0.29% 0.85%

PricesHighest unit price (p) 119.30 117.60Lowest unit price (p) 84.79 93.99

Income and Accumulation units were made available on 28 April 2014.**Operating charges are prepared using the same methodology as the ongoing chargesappearing in the KIID, based on the information in this report.†This figure may differ from the performance figure quoted in the Investment Report. TheInvestment Report performance figure is calculated using the last available published price for agiven shareclass in the period compared to the equivalent for the prior period. The price per thefinancial statements values the fund on a bid-price basis. The financial statements shareclassvaluation is based on market prices on the last day of the period, which can differ from theintraday pricing point of the Trust.

4

Security Holdings

MarketValue£000

% ofNet

Assets

BRAZIL (7.93%*) 15,213 5.93BB Seguridade Participacoes 800,591 4,671 1.82Raia Drogasil 654,967 6,618 2.58WEG 1,410,654 3,924 1.53

HONG KONG (0.00%*) 4,488 1.75Vitasoy International 3,470,858 4,488 1.75

INDIA (2.76%*) 6,474 2.52Axis Bank GDR 278,304 6,474 2.52

INDONESIA (10.64%*) 9,838 3.83Bank Rakyat Indonesia Persero 10,359,200 6,184 2.41Tower Bersama Infrastructure 11,978,743 3,654 1.42

MEXICO (9.69%*) 58,006 22.61Alsea 2,521,200 6,762 2.64Gentera 7,512,287 10,409 4.06Grupo Aeroportuario del Pacifico 1,821,990 11,214 4.37Grupo Aeroportuario del Sureste 716,285 7,348 2.86Grupo Financiero Interacciones 2,467,082 9,789 3.81Promotora y Operadora de Infraestructura 1,338,412 12,484 4.87

PERU (2.76%*) - -

PHILIPPINES (14.27%*) 20,675 8.06GT Capital Holdings 418,919 8,775 3.42International Container Terminal Services 3,102,396 3,128 1.22Universal Robina 2,688,040 8,772 3.42

SOUTH AFRICA (7.02%*) 7,646 2.98Discovery 1,350,283 7,646 2.98

SOUTH KOREA (0.00%*) 17,808 6.94Hanmi Pharm 10,631 4,512 1.76Medy-Tox 49,755 13,296 5.18

SPAIN (2.25%*) - -

TAIWAN (1.92%*) 11,647 4.54Eclat Textile 816,453 7,451 2.90President Chain Store 831,090 4,196 1.64

THAILAND (5.45%*) 16,748 6.53Bangkok Dusit Medical Services 18,707,123 8,308 3.24Kasikornbank 'A' Shares 2,457,400 8,440 3.29

TURKEY (4.43%*) 5,736 2.24BIM Birlesik Magazalar 380,855 5,736 2.24

UNITED ARAB EMIRATES (1.41%*) 3,416 1.33National Bank of Ras Al-Khaimah 3,198,449 3,416 1.33

UNITED KINGDOM (9.14%*) 23,698 9.24St. James's Place Money Market Unit Trust L Acc† 22,700,699 23,698 9.24

UNITED STATES (2.87%*) 9,492 3.70MercadoLibre 116,162 9,492 3.70


Portfolio Statement

as at 31 March 2016

5

Security Holdings

MarketValue£000

% ofNet

Assets


Portfolio Statement (continued)

as at 31 March 2016

DERIVATIVES (1.30%*) 4,399 1.72

Total Return SwapsMacquarie Total Return Swap Asian Paints 1% 31/05/2016

(5,524,079) 94 0.04

Macquarie Total Return Swap Bajaj Finance 1% 31/05/2016

(7,726,368) 1,238 0.48

Macquarie Total Return Swap Britannia Industries 1% 31/05/2016

(6,451,355) (202) (0.07)

Macquarie Total Return Swap Dexia 1% 31 May 2016

(6,323,133) 520 0.21

Macquarie Total Return Swap Divi's Laboratories 1% 31/05/2016

(7,307,204) 212 0.08

Macquarie Total Return Swap Glenmark Pharmaceuticals 31/05/2016

(6,984,353) 519 0.20

Macquarie Total Return Swap Godrej Consumer Products 1% 31/05/2016

(4,530,843) 702 0.27

Macquarie Total Return Swap Lupin 1% 31/05/2016 (5,925,872) (831) (0.32)Macquarie Total Return Swap United Phosphorus 1% 31/05/2016

(4,839,033) 1,182 0.46

Macquarie Total Return Swap Welspun India 1% 31/05/2016

(4,560,471) 965 0.37

Investments^ 215,284 83.92

Total other assets (net) 41,262 16.08

Net assets 256,546 100.00

Comparative figures shown in brackets relate to 31 March 2015.

All investments held are listed, unless otherwise stated.

Derivative contracts were traded on an eligible derivatives exchange.

Stocks shown as GDRs represent Global 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 is ratedAAA by Standard & Poors. This investment is a related party.

^ Including investment liabilities of (£1,033K).

6

Material Portfolio Changes

PurchasesCost

£000St. James's Place Money Market Unit Trust L Acc† 35,503Medy-Tox 12,989Eclat Textile 7,351CP ALL 7,309Promotora y Operadora de Infraestructura 7,130Grupo Financiero Interacciones 7,023Grupo Aeroportuario del Sureste 6,593Grupo Aeroportuario del Pacifico 5,222Discovery 5,193Alsea 5,086

SalesProceeds

£000St. James's Place Money Market Unit Trust L Acc† 24,550CP ALL 6,103Metropolitan Bank & Trust 4,407International Container Terminal Services 4,043Value Partners 3,704Sanlam 3,509CEMEX LatAm 3,371Coca-Cola Icecek 3,324BBVA Banco Continental 3,315Jasa Marga Persero 3,252

† This investment is a related party.


7

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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 Emerging Markets Equity 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 losses on the property of the Trust for the year thenended.

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.

06 June 2016

Directors' Certificate

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

A. M. Croft D. J. LambLondon

8

For and on behalf ofBNY Mellon Trust & Depositary (UK) Limited160 Queen Victoria StreetLondon EC4V 4LA

Manager

Date 09 April 2016

Report of the Trustee to the unitholders of St. James’s Place Emerging Markets Equity UnitTrust

Trustee's responsibilities

The Trustee is responsible for the safekeeping of all the property of the Trust (other than tangiblemoveable property) which is entrusted to it and for the collection of income that arises from thatproperty.

It is the duty of the Trustee to take reasonable care to ensure that the Trust is managed inaccordance with the Financial Conduct Authority’s Collective Investment Schemes Sourcebook(“COLL”), the Trust Deed and Prospectus, in relation to the pricing of, and dealings in, units inthe Trust; the application of income of the Trust; and the investment and borrowing powers andrestrictions applicable to the Trust.

Report of the Trustee to the unitholders of St. James’s Place Emerging Markets Equity UnitTrust for the year ended 31st March 2016

Having carried out such procedures as we considered necessary to discharge our responsibilitiesas Trustee of the Trust, it is our opinion, based on the information available to us and theexplanations provided, that, in all material respects, the Manager:

(i) has carried out the issue, sale, redemption and cancellation, and calculation of the price of theTrust’s units and the application of the Trust’s income in accordance with the Sourcebook, theTrust Deed and Prospectus, and

(ii) has, observed the investment and borrowing powers and restrictions applicable to the Trust.

9

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Independent Auditors' Report to the Unitholders of


Our opinion

In our opinion, St. James's Place Emerging Markets Equity Unit Trust's financial statements, (the"financial statements"):

give a true and fair view of the financial position of the Trust as at 31 March 2016 and ofthe net expenses and the net capital losses 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 UK Authorised Funds, theCollective Investment Schemes sourcebook and the Trust Deed.

What we have audited

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

the balance sheet of the Trust as at 31 March 2016 ;

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 UK Authorised Funds’issued by the Investment Management Association (the “Statement of Recommended Practice forUK Authorised 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.

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.

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

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Chartered Accountants and Statutory AuditorsEdinburgh06 June 2016The 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

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.

As explained more fully in the Statement of the Manager's Responsibilities set out on page 8, theAuthorised Fund Manager is responsible for the preparation of the financial statements and forbeing satisfied that they give a true and fair view.

we primarily focus our work in these areas by assessing the directors' judgements againstavailable evidence, forming our own judgements, and evaluating the disclosures in thefinancial statements.

we test and examine information, using sampling and other auditing techniques, to theextent we consider necessary to provide a reasonable basis for us to draw conclusions. Weobtain audit evidence through testing the effectiveness of controls, substantive procedures ora combination of both.

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 as abody in accordance with paragraph 4.5.12 of the Collective Investment Schemes sourcebook andfor 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.

11

Notes £000 £000 £000 £000

2 (12,636) 7,1953 2,688 7054 (3,683) (1,088)

- -

(995) (383)

5 (190) (87)

(1,185) (470)

(13,821) 6,7256 102 5

(13,719) 6,730

£000 £000 £000 £000139,208 -

264,146 215,247

(133,089) (82,769)

131,057 132,478

(13,719) 6,730

256,546 139,208

Net capital (losses)/gains

Statement of Total Return


Income

for the year ended 31 March 2016

01/04/15 to 31/03/16 28/04/14 to 31/03/15


Revenue

Equalisation

Expenses

Net expenses before taxation

Total return before equalisation

Interest payable and similar charges

Taxation

Net expenses after taxation

Change in net assets attributable to unitholders from investment activities

Statement of Change in Net Assets Attributable to Unitholders

01/04/15 to 31/03/16 28/04/14 to 31/03/15

Amounts receivable oncreation of units*

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

Amounts payable on cancellation of units*

Closing net assets attributable to unitholders

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

*Prior year figures in relation to Dilution Levy have been reclassified and included withincreations and cancellation of units as this was income and expenses arising from creations andcancellations respectively.

12


31/03/16 31/03/15

Notes £000 £000

216,317 116,716

8 3,472 3,119

9 41,865 21,617

261,654 141,452

Liabilities

(1,033) -

Creditors

10 (4,075) (2,244)

(5,108) (2,244)256,546 139,208

Other creditors

Total liabilitiesNet assets attributable to unitholders

Balance Sheet

Assets

Investments

Current assets

as at 31 March 2016

Cash and bank balances

Investment liabilities

Total assets

Debtors

13

1.

(a)

(b)

(c)

(d)

(e)

(f)

Expenses

Over the Counter (OTC) derivatives, including Total Return Swaps, are held at fair value.Data from a primary source (Markit) will initially be used in valuing derivatives. Howevertolerance checks are also performed between valuations derived from different sources inorder to validate the calculated valuations, detect any potential discrepancies and, ifappropriate, select a secondary or tertiary price for use in the valuation instead.

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.

Taxation

Foreign exchange

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

Accounting and Distribution policies

Basis of accounting

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 the St. James's Place Money Market Unit Trust arerecognised as revenue on an accruals basis and form part of the distribution. Returns ontotal return swap contracts with resets are split between capital and income at the resetdates, with the coupon element of the cash inflows and spread receipts recognised asIncome.

Revenue

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

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.

Valuation of investments


Notes to the Financial Statements


Listed investments have been valued at bid market value at 12.00 midday on 31 March2016, net of any accrued interest which is included in the Balance Sheet as a revenuerelated item.

All expenses of the Trust are recognised on an accruals basis and are deducted from revenuewith the exception of handling charges which is deducted from capital.

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 withUnited Kingdom Generally Accepted Accounting Practice, including Financial ReportingStandard 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) forFinancial Statements of Authorised Funds issued by the Investment Management AssociationMay 2014 (IMA SORP 2014). Both FRS 102 and SORP 2014 have been adopted in thecurrent year. The changes in the SORP 2014 are presentational only and there have been nochanges to any figures detailed with the financial statements. The financial statements areprepared on the going concern basis.

14


(continued)Notes to the Financial Statements

(g)

(h)

(i)

(j)

2.01/04/15 to

31/03/1628/04/14 to

31/03/15£000 £000

(7,507) 2,528(192) 83

(90) (71)(4,847) 4,655

(12,636) 7,195

3.01/04/15 to

31/03/1628/04/14 to

31/03/15£000 £000

Overseas dividends 2,173 576Distributions from Regulated Collective Investment Schemes Interest distributions 23 4Bank interest 72 15Interest on capital 109 48Management charge rebate on underlying holdings 61 19Swap Income* 250 43

2,688 705


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 BalanceSheet at their mark to market value.

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 be deductedfrom the cost of units for capital gains tax purposes.

There is no distribution for the current year. 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.

Equalisation

Handling chargesSwap contracts

Currency (losses)/gains

Total revenue

Revenue

Distribution policy

Non-derivative securities


Special dividends

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

Derivatives

*There has been a reallocation from UK dividends to SWAP income for the prior year but thetotal Net Assets Value remains unchanged.

15



4.01/04/15 to

31/03/1628/04/14 to

31/03/15£000 £000

2,503 707

10 5

Audit fee 6 9Investment administration fee 8 8

1,105 32344 32

Legal fees - 32 15 -

1,170 376

3,683 1,088

5.01/04/15 to

31/03/1628/04/14 to

31/03/15£000 £000

(a)190 87

(b)

(995) (383)

(199) (77)

(435) (115)637 202190 87

(3) (1)

190 96

(c)

(d)

Investment adviser's fee

Payable to the Trustee

Total expenses

ADR Issuance fee

Taxation

Irrecoverable overseas tax

Expenses

Analysis of charge in year:

Safe custody fee

Deloitte fees

Foreign tax expensed

Other expenses

Management charge

Non taxable foreign dividends

Trustee's fee

Corporation Tax at 20% (2015: 20%)

Payable to the Manager

Total tax charge for year (note 5a)

Effects of:

Factors affecting total 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% (2015: 20%). The differences are explained below:

At the year end, after offset against revenue taxable on receipt, there is a potential deferredtax asset of £830,497 (31/03/15: £202,244) relating to surplus management expenses. Nodeferred tax asset was recognised in the current as it was considered unlikely the Fundwould generate sufficient taxable profits in the future to utilise these amounts.

Deferred taxation:

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

Movement in excess management expensesIrrecoverable overseas tax

Net expenses before taxation

Factors that may affect future tax charges

With effect from 26 October 2015 all expenses are now paid by the Manager out of theAnnual Management Charge with exception of the Investment Adviser fee and AMC feerebate. This includes current year Audit Fee of £10,740.

16



6.

01/04/15 to 31/03/16

28/04/14 to 31/03/15

£000 £000Final distribution - -

102 1(204) (6)

(102) (5)

7.01/04/15 to

31/03/1628/04/14 to

31/03/15£000 £000

(1,185) (470)1,083 465

(102) (5)

8.31/03/16 31/03/15

£000 £0001,407 -1,797 2,902

263 2165 1

3,472 3,119

9.31/03/16 31/03/15

£000 £00041,785 21,589

80 28

41,865 21,617

10.31/03/16 31/03/15

£000 £0003,669 2,114

406 130

4,075 2,244

11.

Opening units in issue Creations Cancellations

Units converted

Closing units in issue

393,315 139,477,808 (138,811,984) - 1,059,139128,257,849 137,597,098 (1,164,385) - 264,690,562

Total debtors

Purchases awaiting settlement

Cash and bank balances: Sterling

Total cash and bank balances

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

Net equalisation for the year

Debtors

Net equalisation for the year

Net expense after taxation

Sales awaiting settlement

Equalisation

Units in issue

Cash and bank balances: Overseas

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

Movement between net expenses and net distribution

Cash and bank balances

Other creditors

Reconciliation of the unit movement in the year:

IncomeAccumulation

Total other creditors

Accrued expenses

17



12.

13.

14.

●

●

●

15.

●

●

●

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, interest rate risk, credit risk and liquidity risk. The Manager's policies formanaging these risks are summarised below. These policies have remained unchangedsince the beginning of the year to which these financial statements relate (same for 2015).

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.

Risk management

Included in the investment portfolio is a holding of 22,700,699 units (31/03/15:12,203,372) in St. James's Place Money Market Unit Trust (a St. James's Place Unit TrustGroup Limited fund) with a market value of £23,698,100 (31/03/15: £12,724,700). As at31/03/16 total revenue earned amounts to £83,670. (31/03/15: £23,168).

Equity shares; interest bearing assets and units in collective investment schemes.

Derivatives which the Trust may enter into (principally total return swaps) the purpose ofwhich is to manage the market risk arising from the Trust's investment activities (and relatedfinancing).

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

In accordance with the investment objectives, as stated on page 24, the Trust held certainfinancial instruments. These comprise:

Capital commitments and contingent liabilities

On 31 March 2016, the Trust had no capital commitments (31/03/15: £nil) and nocontingent liabilities (31/03/15: £nil).

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

Financial instruments

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 Emerging Markets Equity Unit Trust.The value of these investments at the year end was £168,978,802 (31/03/15:£93,535,028).

Related party transactions

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

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 inrespect 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 £1,511,612 (31/03/15: £2,892,315).

18



(a)

01/04/15 to 31/03/16

28/04/14 to 31/03/15

% %

15.89 15.89

16.15 16.58

16.05 16.00

(b)

●

●

●

Lowest monthly VaR

Highest monthly VaR

Average monthly VaR

Movements in exchange rates affect revenue received.

The actual VaR is summarised in the table below:

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 transaction inorder to minimise the exchange rate risk.

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.

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.

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

Market price risk

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 standardmeasure of risk in the financial sector. The maximum potential loss that a fund could sufferunder normal market conditions within a given time horizon and a certain degree ofconfidence 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 dailydata is calculated. An annualised VaR limit of 20% is considered for the fund.

Movements in exchange rates affect the value of investments;

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

Movements in exchange rates affect short term timing differences; and

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

19



31/03/16 31/03/15Total Total£000 £000

71,354 38,8893,416 1,932

15,280 10,851- 3,058

4,488 -9,838 14,611

16,258 -58,006 13,150

- 3,74020,765 19,52411,647 2,67016,135 7,431

5,736 6,17215,977 7,676

7,646 9,504

256,546 139,208

(c)

(d)

(e)

Total

Currency

KRWMXNPENPHP

IDR

GBPAEDBRLCOP

An analysis for all currencies at the year end is shown below:

HKD

TRYUSDZAR

Net foreign currency assets

Interest rate risk

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

Liquidity riskLiquidity 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 Trust hassources of borrowing available to it.

The external Investment Adviser selects acceptable counterparties through whichinvestments are bought and sold. The Manager has responsibility for monitoring the processby 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.

TWDTHB

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 is managed by reviewing the counterparty’s creditrating, at the time of purchase and on an ongoing basis, and ensuring that the portfolio issufficiently diversified. The impact of movements in credit rating and spread, and their effecton market prices, is considered to be part of market price risk, which is discussed above.

20



(f)

(g)

(h)

The Manager and Investment Adviser use a risk management process which enables them tomonitor and measure on a daily basis the risk of the Scheme's derivatives and forwardsposition and their impact on the overall risk profile of the Scheme. This process has beennotified to the FCA in accordance with COLL.

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 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.

The Manager may enter into derivatives transactions (including contracts for difference,forwards transactions, futures and options) for investment purposes and for efficientportfolio management purposes (including hedging). A relatively small market movementmay have a potentially larger impact on derivatives than on the underlying assets and theuse of derivatives can therefore increase the volatility of the value of units in the Scheme.However it is not anticipated that the use of derivatives will have a significant effect on therisk profile of the Scheme.

Derivative risk

The use of derivatives may expose the Scheme to a higher degree of risk. For example theamount of initial margin is generally small relative to the size of the contract so thatexposure to investments is leveraged so that they are greater than the total net asset valueof the Scheme. A relatively small market movement may have a potentially larger impact onderivatives than on standard bonds or equities and leveraged positions can thereforeincrease the Scheme's volatility.

Efficient Portfolio ManagementThe efficient portfolio management techniques permitted in the fund as at 31 March 2016comprise of:

Technique Counterparty Exposure (£)MacQuarie Securities Hong Kong Ltd

4,397,801Swaps

The collateral was held in the form of cash, £14,425,332, counterparty listed above(31/03/15: £6,338,901).

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

Technique Counterparty Exposure (£)MacQuarie Securities Hong Kong Ltd

1,796,876Swaps

21



16.

01/04/15 to 31/03/16

28/04/14 to 31/03/15

01/04/15 to 31/03/16

28/04/14 to 31/03/15

£000 £000 £000 £00035,503 32,198 24,550 19,477

153,760 129,512 59,045 22,099

189,263 161,710 83,595 41,576

- - - -258 271 (114) (42)

- - - -

258 271 (114) (42)

- - - -50 60 (88) (19)

- - - -

50 60 (88) (19)

308 331 (202) (61)

189,571 162,041 83,393 41,515

Total taxes

Equities

EquitiesSwaps

Trades in the year after transaction costs

Collective Investment Schemes

Total commissions

Collective Investment SchemesEquitiesSwaps

Swaps

Collective Investment Schemes

Purchases Sales

Portfolio transaction costs

Analysis of total trade costs.

Total costs

Trades in the year before transaction costs

Commissions

Taxes

22



01/04/15 to 31/03/16

28/04/14 to 31/03/15

01/04/15 to 31/03/16

28/04/14 to 31/03/15

% % % %

- - - -0.17 0.21 0.19 0.19

- - - -

- - - -0.03 0.05 0.15 0.09

- - - -

17.

Assets Liabilities Assets Liabilities£000 £000 £000 £000

Level 1 187,188 - 102,194 -Level 2 29,129 (1,033) 14,631 (109)Level 3 - - - -

Total fair value 216,317 (1,033) 116,825 (109)

Level 1: The unadjusted quoted price in an active market for identical assets or liabilities thatthe 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 orliability.

Fair value

Valuation technique

31/03/2016 31/03/2015

The intention of a fair value measurement is to estimate the price at which an asset or aliability 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 forcedtransaction, involuntary liquidation or distress sale) between knowledgeable, willingparticipants on an independent basis.

The purpose of the fair value hierarchy is to prioritise the inputs that should be used tomeasure the fair value of assets and liabilities.

The highest priority is given to quoted prices at which a transaction can be entered into andthe lowest priority to unobservable inputs.

The fund has early adopted the March 2016 amendment to section 34 of FRS102 (Fair ValueHierarchy disclosures that simplify preparation of financial instrument disclosure), which isapplicable to accounting periods beginning on or after 1 January 2017 with earlierapplication permitted.

The average portfolio dealing spread at the balance sheet date was 0.37% (31/03/15:0.36%).

Average portfolio dealing spread

Total costs

%%Commissions 0.20

0.07

0.27

0.500.12

0.62

Swaps

Total transaction cost expressed as a percentage of net asset value.

01/04/15 to 31/03/16 01/04/15 to 31/03/16

Taxes

TaxesCollective Investment SchemesEquities

Collective Investment SchemesEquitiesSwaps

Total transaction cost expressed as a percentage of asset type cost.Purchases Sales

Commissions

23

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.

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.

St. James's Place Emerging Markets Equity Unit Trust is an authorised Unit Trust scheme undersection 243 of the Financial Services and Markets Act (2000) and is constituted by a Trust Deeddated 8 April 2014.


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 authorised andregulated by the Financial Conduct Authority.

Investment Objectives

The investment objective of the Scheme is to seek to achieve long-term capital appreciation.

The Scheme aims to achieve this objective by primarily investing into a focused portfolio of thesecurities of companies which are either listed on the exchanges of countries in emergingmarkets or which are economically exposed to emerging markets.

The Scheme is also permitted to invest in other types of transferable securities, UK and overseasfixed interest and index-linked securities, units and/or shares in collective investment schemes,money market instruments, deposits, cash and near cash, and derivatives and forwardtransactions for the purposes of efficient portfolio management (including hedging).

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.

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

24


General Information (continued)

(a)(b)

Following the implementation of UCITS V in the UK on 18 March 2016, all authorised UCITSManagers are required to comply with the UCITS V Remuneration Code from the start of theirnext accounting year. Under the UCITS V Directive, the Manager is required to discloseinformation relating to the remuneration paid to its staff for the financial year, split into fixedand variable remuneration. The Manager’s Financial Year end is 31 December, it is thereforeanticipated that the Manager’s Remuneration Policy and associated financial disclosures will bemade within the Annual Reports starting from 31 December 2017, following its first fullperformance period. Prior to this date, and in line with the FCA's guidance on the UCITS Vremuneration disclosures, the Manager would be part way through its first performance periodand the information available would not be relevant or provide a proper basis for comparison.

RemunerationSt. James’s Place PLC (“SJP PLC”) personnel providing services to St. James’s Place Unit TrustGroup Limited (“the Manager ”) are subject to the SJP PLC Remuneration Policy (the“Remuneration Policy”). The Remuneration Policy reflects the remuneration requirements ofthe UCITS V Directive (2014/91/EU). Details of the Remuneration Policy are available throughwww1.sjp.co.uk/about-st-james-place/our-responsibilities/corporate-governance which isupdated periodically to reflect changes to the policy.

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 liable tocapital gains tax unless the total chargeable gains for the tax year 2016/2017 exceed £11,100(2015/2016 £11,100).

Management Charges

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

Income Distributions

With effect from 26 October 2015 the Manager changed the charging structure of the Scheme.The annual management charge has been increased to include many of the predictable costs,such as trustee fees and administration fees, which were previously charged directly to theScheme. These changes were presentational only and there has been no overall increase in thetotal charges met by the Scheme. In addition, the way the annual management charge iscalculated has been changed. The charge was previously calculated monthly, based on theScheme value on the first business day of the month; with effect from 26 October 2015 it iscalculated daily, based on the Scheme value every day.

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

An Annual Management Charge at a rate of 1.37 per cent (1.32 per cent prior to 26October 2015) of the value of the Trust.

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.

25

St. James’s Place Unit Trust Group Ltd is authorised and regulated by the Financial Conduct Authority. St. James’s Place Unit Trust Group Ltd Registered Office:

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

Perivan Financial Print 240850 Emerging Markets Equity (05/16)

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