Distribution Number 20. Legal & General UK Index Trust Interim Manager s Report for the period ended 6 April 2015 (Unaudited)

Transcription

1 Distribution Number 20 Legal & General UK Index Trust Interim Manager s Report for the period ended 6 April 2015 (Unaudited)

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3 Contents Page Number Manager s Investment Report 2 Authorised Status 5 Directors Statement 5 Portfolio Statement 6 Statement of Total Return 23 Statement of Change in Net Assets attributable to Unitholders 23 Balance Sheet 24 Notes to the Financial Statements 25 Trust Facts 26 Risk and Reward Profile 27 Performance Record 28 General Information 33 1

4 Manager s Investment Report Investment Objective and Policy The objective of this Trust is to track the capital performance of the UK equity market, as represented by the FTSE All-Share Index, by investment in a representative sample of stocks selected from all economic sectors. Securities in the FTSE All-Share Index will be held with weightings generally proportionate to their company s market capitalisation. From time to time non-index constituents may be held as a result of corporate actions and these holdings will be sold or transferred as soon as reasonably practical. Manager s Investment Report During the period under review, the bid price of the Trust s R-Class distribution units rose by 4.94%. FTSE, the Index compiler, calculates the benchmark Index at the end of the business day using closing prices, whereas the Trust is valued using prevailing prices at 12 noon. Therefore, for tracking purposes the Trust has been revalued using closing prices. On this basis, over the review period from the close of business on 6 October 2014 to the close of business on 2 April 2015 (the first and last working days of the accounting period), the Trust rose by 5.51% on a capital only basis compared with the FTSE All-Share Index increase of 5.49% on a capital only basis (Source: Bloomberg), producing a tracking difference of +0.02%. Past performance is not a guide to future performance. The value of investments and any income from them may go down as well as up. Exchange rate changes may cause the value of any overseas investments to rise or fall. The FTSE All-Share Index is calculated by FTSE International Limited ( FTSE ). FTSE does not sponsor, endorse or promote this product. All copyright in the Index values and constituent list belongs to FTSE. Legal & General has obtained full licence from FTSE to use such copyright in the creation of this product. FTSE TM, FT-SE and Footsie are trademarks of the London Stock Exchange Plc and The Financial Times Limited and are used by FTSE International Limited ( FTSE ) under license. All-Share is a trademark of FTSE. Market/Economic Review Divergent economic trends exerted a strong influence on the performance of equity markets over the review period. The US economy rebounded strongly and grew at its fastest pace in 11 years during the third quarter, although growth slowed over the closing months of The UK economy saw a marked turnaround, led by a revival in the dominant services sector. In both economies, the central banks signalled a shift towards a gradual tightening of monetary policy provided the recovery is maintained. Wall Street indices recorded an all-time high in the first quarter of 2015, as the Dollar reached a four-year peak against a basket of currencies, enhancing returns for UK-based investors. Pressure to raise interest rates eased in recent 2

5 Manager s Investment Report continued months as the oil price fell dramatically, declining to a six-year low in January. In contrast, the UK equity market struggled to make headway as the mining and oil & gas sectors, which comprise a substantial proportion of the FTSE 100 Index, were weighed down by the weakness of commodity markets. The FTSE All-Share Index comprises the FTSE 250 Index (+13.0%), which was the best performing element over the review period, the FTSE SmallCap Index (+5.9%) and the FTSE 100 Index (+4.1%) (Source: Bloomberg). Over the review period, major sectors such as Industrial Metals & Mining (+47.5%), Food & Drug Retailers (+32.2%), and Forestry & Paper (+29.8%) showed the largest positive returns; the most underperforming sectors were Oil Equipment, Services & Distribution (-15.7%), Mining (-14.0%) and Oil & Gas Producers (-11.4%). Trust Review Companies held within the Trust are held with weightings generally proportionate to those of the benchmark Index. Therefore, investment activity, other than to raise or invest cash, is only necessary when there are changes to the benchmark Index, or as a result of corporate action. During the period under review there were two quarterly Index reviews. At the quarterly Index review in December 2014, there were two additions: the footwear manufacturer Jimmy Choo and the solar investment company NextEnergy Solar Fund. There were four deletions: BlueCrest AllBlue Fund, mining company Petropavlovsk, oil and gas exploration company JKX Oil & Gas and the Indonesia-based thermal coal producer Asia Resource Minerals. The largest increases to changes in free share capital were for online takeaway ordering services provider Just Eat, London Stock Exchange Group and media firm Informa. The largest decreases to free share capital were for BP, BHP Billiton and the catering company Compass Group. At the quarterly Index review in March 2015, there were four additions: automobile insurance and breakdown coverage provider AA, retail banking company Virgin Money Holdings, biopharmaceutical company Oxford BioMedica and mining company Petropavlovsk. Hardy Oil & Gas was the sole deletion. The largest increases to changes in free share capital were for BT Group, entertainment facilities company Merlin Entertainments and leisure & travel services company TUI AG. The largest decreases to free share capital were for International Consolidated Airlines Group, Royal Dutch Shell and the advertising firm WPP. Merger and acquisition activities outside the FTSE quarterly reviews included the household products company Reckitt Benckiser demerging its addiction unit Indivior; TUI Travel merging with German TUI AG to form TUI Group; engineer Amec acquiring Foster Wheeler AG (USA) to become AMEC Foster Wheeler; the oil & gas explorer Ophir Energy acquiring Salamander Energy to increase their global presence in Africa and South East Asia; the acquisition of construction design and 3

6 Manager s Investment Report continued engineering company Hyder Consulting by the Netherlands-based Arcadis NV to increase synergies; and the acquisition and privatisation of the internet media company Perform Group by the private company AI PG LLC. Other corporate activities included the purchase of a 9.99% stake in International Consolidated Airlines Group by Qatar Airways, resulting in a free float decrease. Spire Healthcare Group, Merlin Entertainments, telecommunication services provider Inmarsat, plastic piping supplier Polypipe and caterer SSP all saw their free float increase after strategic holders reduced their stakes. Capital raising activities to fund expansion included rights issues by the business information services provider UBM, the medical devices provider Consort Medical, the containers and packaging company RPC, the insurance management company Charles Taylor and distributions company Connect Group. There were also primary placings to fund growth opportunities by BT Group, the building materials company CRH and the retailer Poundland Group. In addition, TSB Banking Group increased its free float to 50% subsequent to a secondary share placing by Lloyds Banking Group. At the end of the period the Trust had holdings in all of the 642 companies in the Index. The three largest stocks in the Index at the end of the period were Royal Dutch Shell (6.0%), HSBC (5.1%) and BP (3.7%). Outlook UK economic momentum looks set to continue through 2015 and, with inflation tumbling, the Bank of England seems likely to wait until next year before raising interest rates. A steady improvement in global growth is expected throughout In the UK, stronger growth is feeding back into an improvement in the public finances, but this needs to develop into a multi-year expansion to reduce the deficit to sustainable levels. Bank of England Governor Mark Carney has brushed aside the drop in unemployment numbers to below 7%, the threshold previously mentioned as the potential trigger for a rate hike. Instead, rate increases will now be contingent on a more enigmatic combination of sustained growth in jobs, incomes and spending hinting that easy monetary conditions are set to continue for the foreseeable future. For now there is sufficient slack to allow the Bank of England to keep rates on hold through to next year, but if productivity stagnates and unemployment falls more rapidly, pressure to begin normalising interest rates will eventually increase. The election added some uncertainty, but policy is unlikely to derail the recovery. The Trust is well positioned to capture performance from this sustained recovery. Legal & General Investment Management Limited (Investment Adviser) 24 April

7 Authorised Status Authorised Status This Trust is an Authorised Unit Trust Scheme as defined in section 243 of the Financial Services and Markets Act 2000 and is a UCITS Retail Scheme within the meaning of the FCA Collective Investment Schemes sourcebook. Directors Statement We hereby certify that this Manager s Report has been prepared in accordance with the requirements of the FCA Collective Investment Schemes sourcebook. A. J. C. Craven S. D. Thomas (Director) (Director) Legal & General (Unit Trust Managers) Limited 27 May

8 Portfolio Statement Portfolio Statement as at 6 April 2015 All investments are in ordinary shares unless otherwise stated. The percentages in brackets show the equivalent sector holdings at 6 October Holding/ Market % of Nominal Value Net Value Investment Assets UNITED KINGDOM 92.42% (92.77%) Oil & Gas Producers 11.30% (13.59%) 2,440,559 Afren 76,878 7,700,626 BG Group 65,447, ,235,311 BP 181,187, ,368,400 Cairn Energy 2,157, ,615,962 Enquest 585, ,720 Nostrum Oil & Gas 624, ,488,388 Ophir Energy 2,000, ,215,029 Premier Oil 1,620, ,835 Royal Dutch Shell 'A' 14,730, ,081,754 Royal Dutch Shell 'A' (Dutch) 164,379, ,518,235 Royal Dutch Shell 'B' 117,345, ,931 SOCO International 813, ,037,027 Tullow Oil 5,724, ,695, Oil Equipment, Services & Distribution 0.43% (0.49%) 876,149 AMEC Foster Wheeler 7,850, ,354 Hunting 1,497, ,091 John Wood Group 5,393, ,733 Lamprell 640, ,678 Petrofac 5,740, ,122, Alternative Energy 0.00% (0.00%) 67,777 Porvair 196,723 Chemicals 0.71% (0.63%) 461,632 Alent 1,771, ,128 Carclo 191, ,778 Croda International 8,670, ,073,298 Elementis 3,145, ,721 Johnson Matthey 15,647, ,179 Victrex 3,539, ,851 Yule Catto 1,775, ,742, Forestry & Paper 0.22% (0.18%) 824,280 Mondi (UK) 10,740, Industrial Metals & Mining 0.05% (0.03%) 1,150,605 EVRAZ 2,244, ,622 Ferrexpo 202,161 2,446, Mining 4.16% (4.98%) 366,915 African Barrick Gold 991, ,945,569 Anglo American 29,455,

9 Portfolio Statement continued Holding/ Market % of Nominal Value Net Value Investment Assets Mining (cont.) 318,337 Anglo Pacific Group 262, ,218 Antofagasta 5,835, ,781,971 BHP Billiton 68,788, ,781 Fresnillo 2,737, ,549 Hochschild Mining 308, ,755 Kazakhmys 1,265, ,891 Lonmin 1,171, ,792 Petra Diamonds 1,733, ,434,947 Petropavlovsk 535, ,798 Polymetal International 2,845, ,123 Randgold Resources 10,014, ,823,158 Rio Tinto 77,848, ,122 Vedanta Resources 1,105, ,898, Construction & Materials 0.31% (0.29%) 1,560,898 Balfour Beatty 3,619, ,088 Boot (Henry) 444, ,798 Costain Group 476, ,207 Galliford Try 2,701, ,649 Keller 1,561, ,618 Kier Group 1,860, ,907 Low & Bonar 381, ,087 Lupus Capital 1,269, ,064 Marshalls Group 1,272, ,190 Morgan Sindall 646, ,233,616 Norcros 197, ,133 Polypipe Group 924, ,067 Volution Group 207,299 15,563, Aerospace & Defence 2.14% (2.13%) 55,988 Avon Rubber 436, ,133,224 BAE Systems 37,378, ,567 Chemring Group 955, ,706,383 Cobham 8,351, ,840,862 Meggitt 10,106, ,465,988 QinetiQ 2,791, ,222,388 Rolls-Royce Holdings 39,774, ,415 Senior 2,977, ,003 Ultra Electronics Holdings 2,541, ,313, General Industrials 0.68% (0.63%) 61,010 British Polythene Industries 415, ,568,009 Rexam 9,047, ,646 RPC Group 3,839, ,107,242 Smith (David S) Holdings 7,263, ,117 Smiths Group 9,677, ,028 Vesuvius 2,973, ,216, Electronic & Electrical Equipment 0.48% (0.43%) 68,217 Dialight 526,

10 Portfolio Statement continued Holding/ Market % of Nominal Value Net Value Investment Assets Electronic & Electrical Equipment (cont.) 257,758 Domino Printing Sciences 2,402, ,967 E2V Holdings 959, ,587 Halma 6,101, ,489 HellermannTyton Group 1,496, ,777 Morgan Crucible 2,223, ,191 Oxford Instruments 960, ,824 Renishaw 1,950, ,562 Spectris 6,014, ,797 TT Electronics 499, ,988 Xaar 677, ,813, Industrial Engineering 0.81% (0.90%) 443,435 Bodycote 3,119, ,953 Fenner 895, ,495 Goodwin 158, ,919 Hill & Smith Holdings 1,132, ,925 IMI 7,999, ,311,608 Melrose 6,403, ,340 Renold 253, ,743 Rotork 4,975, ,127 Severfield-Rowen 468, ,370 Spirax-Sarco Engineering 5,900, ,400 Trifast 228,971 97,373 Vitec Group 616, ,068 Weir Group 8,133, ,286, Industrial Transportation 0.27% (0.27%) 985,543 BBA Aviation 3,301, ,561 Braemar Seascope Group 226,161 52,909 Clarkson 1,173, ,931 Fisher (James) & Sons 1,445, ,391,156 Royal Mail 6,123, ,153 Stobart Group 658, ,862 UK Mail Group 227, ,759 Wincanton 429, ,586, Support Services 3.91% (3.80%) 542,541 Aggreko 8,479, ,132,067 Ashtead Group 12,226, ,405 Atkins (WS) 2,910, ,137,886 Babcock International Group 11,168, ,403 Berendsen 4,452, ,070 Brammer 1,130, ,919 Bunzl 13,762, ,517,134 Capita Group 16,900, ,020,121 Carillion 3,299, ,332 Communisis 209, ,689 Connect Group 1,329, ,817 De La Rue 1,255, ,684 Diploma 2,051, ,482 Electrocomponents 2,332,

11 Portfolio Statement continued Holding/ Market % of Nominal Value Net Value Investment Assets Support Services (cont.) 194,443 Exova Group 301, ,184 Filtrona 6,005, ,501,029 G4S 10,471, ,065 Grafton Group 3,883, ,457 Gulf Marine Services 328, ,188,380 Hays 5,018, ,405 Hogg Robinson Group 275, ,117 Homeserve 2,356, ,403,898 Howden Joinery Group 6,320, ,024 Interserve 1,823, ,831 Intertek Group 9,161, ,566 Lavendon Group 592, ,062,804 Management Consulting Group 164, ,986 Mears Group 911, ,564 Menzies (John) 382, ,878 Michael Page International 3,702, ,062 Mitie Group 2,321, ,870 Northgate 1,762, ,986 PayPoint 1,205, ,194 Premier Farnell 1,512, ,137,039 Rentokil Initial 5,667, ,931 Ricardo 873, ,696 Robert Walters 570, ,767 RPS Group 1,102, ,297,183 Serco Group 1,864, ,297,183 Serco Group (Rights) 606, ,380 Shanks Group 896, ,274,437 SIG 2,598, ,221,770 Speedy Hire 855, ,382 St. Ives 444, ,297 SThree 854, ,648 Travis Perkins 10,899, ,382 Tribal Group 203,767 46,229 VP 300, ,581 Wolseley 23,873, ,182 Xchanging 682, ,304, Automobiles & Parts 0.27% (0.25%) 3,643,373 GKN 13,116, Beverages 3.84% (3.83%) 237,550 AG Barr 1,457, ,388 Britvic 3,797, ,695,055 Diageo 106,611, ,136,282 SABMiller 76,510, ,153 Stock Spirits Group 866, ,243, Food Producers 2.34% (2.24%) 45,973 Anglo-Eastern Plantations 266, ,933 Associated British Foods 22,318, ,650 Carr s Milling Industries 222, ,796 Cranswick 1,506, ,236 Dairy Crest Group 1,350, ,869 Devro 1,061, ,867 Greencore Group 3,039,

12 Portfolio Statement continued Holding/ Market % of Nominal Value Net Value Investment Assets Food Producers (cont.) 132,597 Hilton Food Group 574, ,703,078 Premier Foods 711, ,070,791 Tate & Lyle 6,703, ,726,452 Unilever 77,294, ,050, Household Goods & Home Construction 2.85% (2.60%) 153,395 AGA Rangemaster Group 136,521 2,246,306 Barratt Developments 11,725, ,302 Bellway 5,471, ,905 Berkeley Group 7,553, ,711 Bovis Homes Group 2,948, ,832 Crest Nicholson 2,293, ,013 McBride 384, ,533 McColls Retail Group 197,950 72,345 MJ Gleeson Group 289, ,321 Persimmon 11,658, ,447,423 Reckitt Benckiser Group 84,153, ,022 Redrow Group 1,799, ,469,086 Taylor Wimpey 11,502, ,115, Leisure Goods 0.02% (0.02%) 53,291 Games Workshop 263, ,365 Photo-Me International 658, , Personal Goods 0.46% (0.42%) 1,002,014 Burberry Group 17,364, ,757 Jimmy Choo 352, ,402 PZ Cussons 2,433, ,835 SuperGroup 791, ,780 Ted Baker 1,482, ,424, Tobacco 4.40% (4.41%) 4,213,855 British American Tobacco 149,275, ,177,534 Imperial Tobacco 67,547, ,822, Health Care Equipment & Services 0.65% (0.58%) 127,207 Al Noor Hospitals 1,271, ,728 Cambian Group 466, ,846 Consort Medical 971, ,564 NMC Health 914, ,178 Optos 541, ,026,455 Smith & Nephew 23,162, ,887 Spire Healthcare Group 1,715, ,192 Synergy Healthcare 2,964, ,008, Pharmaceuticals & Biotechnology 8.08% (7.99%) 2,855,648 AstraZeneca 132,901, ,689 BTG 6,601,

13 Portfolio Statement continued Holding/ Market % of Nominal Value Net Value Investment Assets Pharmaceuticals & Biotechnology (cont.) 166,525 Circassia Pharmaceuticals 482, ,897 Dechra Pharmaceuticals 2,014, ,724 Genus 1,824, ,002,853 GlaxoSmithKline 172,249, ,976 Hikma Pharmaceuticals 6,684, ,445,991 Indivior 2,876, ,704,651 Oxford BioMedica 435, ,329,312 Shire 69,722, ,361 Skyepharma 699, ,012,095 Vectura 1,482, ,976, Food & Drug Retailers 1.65% (1.28%) 3,596,625 Booker Group 5,215, ,687 Greggs 2,431, ,997 Just Eat 2,714, ,897,400 Morrison (Wm) Supermarkets 9,569, ,612 Ocado Group 3,211, ,204,073 Sainsbury (J) 8,340, ,481 SSP Group 2,436, ,393,399 Tesco 44,484, ,161 United Drug 2,693, ,097, General Retailers 2.36% (2.05%) 1,205,097 AA 4,422, ,231 AO World 672, ,672 Ashley (Laura) Holdings 136, ,618 Brown (N) Group 1,096, ,448 Card Factory 1,068, ,186 Carpetright 503, ,172,826 Carphone Warehouse Group 8,971, ,829,077 Debenhams 2,133, ,491 Dignity 2,176, ,003 Dunelm Group 1,735, ,111 Findel 418, ,840 GAME Digital 473, ,472 Halfords Group 2,062, ,928,567 Home Retail Group 3,124, ,081,571 Inchcape 8,733, ,432 JD Sports Fashion 645, ,132,873 Kesa Electricals 759, ,313,337 Kingfisher 19,255, ,123 Lookers 977, ,786,334 Marks & Spencer Group 21,184, ,727 Moss Brothers Group 159, ,108 Mothercare 689, ,447 Next 23,441, ,101,377 Pendragon 1,217, ,029 Pets at Home Group 1,131, ,972 Poundland Group 1,455, ,613 Sports Direct International 3,475, ,195 Topps Tiles 361, ,833 WH Smith 3,505, ,987,

14 Portfolio Statement continued Holding/ Market % of Nominal Value Net Value Investment Assets Media 2.53% (2.30%) 53,142 4imprint Group 542, ,935 Bloomsbury Publishing 244,403 2,364,718 BSkyB 23,410, ,917 Centaur Holdings 210, ,019 Chime Communications 593, ,428 Euromoney Institutional Investor 887, ,569 Huntsworth 226, ,477,107 Informa 8,545, ,404 ITE Group 1,111, ,442,267 ITV 21,105, ,285 Johnston Press 266, ,027,434 Moneysupermarket.com 2,772, ,833,640 Pearson 26,257, ,568,688 Reed Elsevier 29,694, ,661 Rightmove 6,392, ,123 STV Group 228, ,735 Trinity Mirror 1,258, ,114 UTV Media 318, ,068 Zoopla Property Group 722, ,788, Travel & Leisure 3.58% (3.11%) 332, Holdings 500, ,148 Betfair Group 3,974, ,264 Carnival 13,546, ,565 Cineworld 2,119, ,759,120 Compass Group 44,320, ,653 Domino s Pizza UK & Ireland 2,407, ,174 easyjet 10,368, ,130,665 Enterprise Inns 1,128, ,820,169 FirstGroup 2,746, ,371 Flybe Group 250, ,565 Fuller Smith & Turner 736, ,205 Go-Ahead Group 2,284, ,426 Greene King 4,353, ,915 InterContinental Hotels Group 14,186, ,057,207 Ladbrokes 2,086, ,271,118 Marston s 1,976, ,508,964 Merlin Entertainments 6,696, ,728 Millennium & Copthorne Hotels 1,923, ,982 Mitchells & Butlers 2,192, ,207 National Express 2,631, ,726 Punch Taverns 457, ,880 Rank Group 693, ,156 Restaurant Group 2,922, ,522,343 Spirit Pub Company 1,724, ,781 Sportech 200, ,597 Stagecoach 3,463, ,342,772 Thomas Cook 4,766, ,173 Tui Group 11,006, ,690 Wetherspoon (JD) 1,762, ,288 Whitbread 21,417, ,995,568 William Hill 7,423, ,270, Fixed Line Telecommunications 1.92% (1.70%) 18,858,765 BT Group 83,157,

15 Portfolio Statement continued Holding/ Market % of Nominal Value Net Value Investment Assets Fixed Line Telecommunications (cont.) 6,422,028 Cable & Wireless Communications 4,065, ,528 Colt Telecom 1,000, ,152,111 KCOM Group 1,039, ,208,732 TalkTalk Telecom Group 4,284, ,330 Telecom Plus 1,213, ,761, Mobile Telecommunications 2.89% (2.79%) 993,109 Inmarsat 9,255, ,090,189 Vodafone Group 132,979, ,235, Electricity 0.76% (0.85%) 939,760 Drax Group 3,369, ,900 Infinis Energy 306, ,236,466 Scottish & Southern Energy 33,569, ,245, Gas, Water & Multiutilities 2.76% (3.00%) 11,232,922 Centrica 28,340, ,531,007 National Grid 74,774, ,795 Pennon Group 7,394, ,781 Severn Trent 11,243, ,537,872 United Utilities 14,348, ,101, Banks 10.38% (11.28%) 70,803 Bank of Georgia Holdings 1,270, ,116,360 Barclays 93,774, ,117,169 HSBC Holdings 250,424, ,363,464 Lloyds Banking Group 96,508, ,885,938 Royal Bank of Scotland Group 17,012, ,575,675 Standard Chartered 49,211, ,625 TSB Banking Group 1,898, ,456 Virgin Money Holdings 907, ,007, Nonlife Insurance 0.81% (0.80%) 438,866 Admiral Group 6,806, ,113,420 Amlin 5,622, ,076 Brit Insurance 647, ,356,552 Direct Line Insurance Group 10,717, ,948 Esure 1,178, ,733 Jardine Lloyd Thompson Group 2,915, ,664 Novae Group 1,034, ,282,099 RSA Insurance Group 9,712, ,649 Saga 1,685, ,321, Life Insurance 4.68% (4.23%) 6,664,780 Aviva 36,689, ,450 Chesnara 1,006, ,398 Just Retirement Group 742, ,437,456 Legal & General Group 37,624, ,063,215 Old Mutual 25,024,

16 Portfolio Statement continued 14 Holding/ Market % of Nominal Value Net Value Investment Assets Life Insurance (cont.) 334,232 Partnership Assura 465, ,766,869 Prudential 96,508, ,157,619 St. James s Place Capital 10,985, ,412,668 Standard Life 21,251, ,300, Real Estate Investment & Services 0.59% (0.50%) 1,690,440 Capital & Counties Properties 6,841, ,400,826 Capital & Regional 798, ,479 CLS Holdings 714, ,961 Countrywide 1,954, ,647 Daejan Holdings 613, ,731 Development Securities Capital 716, ,291 Foxtons Group 1,365, ,565 Grainger Trust 1,902, ,419 Helical Bar 932, ,426 IRP Property Investments 428, ,616 LSL Property Services 638, ,478 Mountview Estates 255, ,147,675 Picton Properties 811, ,145,611 Quintain Estates & Development 1,102, ,015 Safestore 1,615, ,569 Savills 2,324, ,131,643 Schroder Real Estate Investment Trust 704, ,177 St. Modwen Properties 1,670, ,626 Standard Life Investment Property Income Trust 459, ,720 UK Commercial Property Trust 730, ,327 Unite Group 2,497, ,079, Real Estate Investment Trusts 2.01% (1.74%) 298,441 Big Yellow Group 1,972, ,278,759 British Land 19,050, ,067,045 Capital Shopping Centres 7,236, ,592 Custodian REIT 420, ,500 Derwent London 7,501, ,752 Great Portland Estates 6,429, ,771,060 Hammerson 11,812, ,494,736 Hansteen Holdings 1,832, ,784,832 Land Securities Group 22,310, ,360,951 London & Stamford Property 2,233, ,901 McKay Securities 440, ,063 Mucklow (A&J) Group 421, ,372 Primary Health Properties 907, ,695,509 SEGRO 7,102, ,167 Shaftesbury 5,557, ,706 Town Centre Securities 252, ,202,621 Tritax Big Box REIT 1,404, ,406 Workspace Group 2,127, ,013, Financial Services 2.48% (2.06%) 2,167,936 3i Group 10,406, ,253,025 Aberdeen Asset Management 10,465,

17 Portfolio Statement continued Holding/ Market % of Nominal Value Net Value Investment Assets Financial Services (cont.) 177,379 Allied Minds 1,197, ,648 Arrow Global Group 995, ,891 Ashmore Group 2,666, ,079 Brewin Dolphin 1,702, ,421 Charles Taylor Consulting 183,213 37,037 Charles Taylor Consulting (Rights) 20,370 57,207 City of London Investment Group 190, ,066 Close Brothers Group 5,317, ,406 Hargreaves Lansdown 5,761, ,211,303 ICAP 6,528, ,243 IG Group 6,056, ,926 Intermediate Capital Group 4,680, ,005 International Personal Finance 2,661, ,161,464 Investec 6,637, ,093,075 IP Group 2,478, ,740 Jupiter Fund Management 3,874, ,525 Liontrust Asset Management 190, ,851 London Stock Exchange 15,826, ,644,227 Man Group 7,536, ,635 OneSavings Bank 358, ,103 Paragon Group 2,994, ,449 Provident Financial 9,116, ,052 Rathbone Brothers 2,035, ,815 S&U 75, ,631 Schroders (Non-voting) 8,178, ,035 SVG Capital 2,371, ,371 Tullett Prebon 1,728, ,236, Equity Investment Instruments 3.06% (2.97%) 413,222 Aberdeen Asian Income Fund 831, ,916 Aberdeen Asian Smaller Companies Investment Trust 716, ,915 Aberdeen New Dawn Investment Trust 526, ,963 Aberdeen New Thai Investment Trust 223, ,950 Aberforth Geared Income Trust 385, ,363 Aberforth Smaller Companies Trust 2,349, ,354 Acencia Debt Strategies 143,389 1,244,044 Alliance Trust 6,381, ,842 Artemis Alpha Trust 223, ,090 Baillie Gifford Japan Trust 783, ,960 Baillie Gifford Shin Nippon 312, ,621 Bankers Investment Trust 1,595, ,901 Baring Emerging Europe 296, ,991 Biotechnology Trust 1,095, ,812 BlackRock Commodities Investment Trust 157, ,004 BlackRock Frontiers Investment Trust 372, ,926 BlackRock Greater Europe Investment Trust (Subscription Shares) 596, ,748 BlackRock Latin American Investment Trust 344, ,612 BlackRock New Energy Investment Trust 15

18 Portfolio Statement continued Holding/ Market % of Nominal Value Net Value Investment Assets Equity Investment Instruments (cont.) 140,755 BlackRock North American Income Investment Trust 167, ,931 BlackRock Smaller Companies Investment Trust 864, ,795 BlackRock World Mining Trust 1,228, ,331 BlueCrest AllBlue 1,677, ,953 British Assets Trust 885, ,158 British Empire Securities & General Trust 1,783, ,122 Brunner Investment Trust 437, ,329 Caledonia Investments 1,654, ,626 Candover Investments 159,472 6,145 Capital Gearing Trust 199, ,096 City Natural Resources High Yield Trust 169, ,213 City of London Investment Trust 2,766, ,038 Dexion (Redemption Shares) 13, ,146 Dexion Absolute 282, ,198 Dexion Equity Alternative* ,382 Dunedin Enterprise Investment Trust 145, ,019 Dunedin Income Growth Investment Trust 1,004, ,823 Dunedin Smaller Companies Investment Trust 170,215 69,530 Eastern European Trust 151, ,212 Ecofin Water & Power Opportunities 673, ,435 Edinburgh Dragon Trust 1,302, ,222 Edinburgh Investment Trust 2,956, ,325 Edinburgh UK Tracker Trust 759, ,050 Edinburgh US Tracker Trust 612, ,848 Edinburgh Worldwide Investment Trust 500, ,399 Electra Investment Trust 2,516, ,500 Electric & General Investment Trust* 108,677 EP Global Opportunities Trust 280, ,609 F&C Capital and Income Investment Trust 523, ,435 F&C Eurotrust 752, ,285,736 F&C Investment Trust 5,703, ,032 F&C Private Equity Trust 376, ,820 F&C Smaller Companies 1,170, ,643 F&C US Smaller Companies 317, ,616 Fidelity Asian Values 354, ,264,070 Fidelity China Special Situations 1,861, ,763 Fidelity Japanese Values 189, ,651 Fidelity Special Values 1,116, ,467 Finsbury Growth & Income Trust 1,379, ,250 Fundsmith Emerging Equities Trust 432, ,166 Graphite Enterprise Trust 1,068, ,000,358 Greencoat UK Wind Trust 1,097, ,147 Hansa Trust 44,213 8,251 Hansa Trust 'A' 67,246 42,226 Henderson European Focus Investment Trust 462, ,852 Henderson EuroTrust 515, ,681 Henderson Global Trust 361, ,447 Henderson High Income Trust 458,

19 Portfolio Statement continued Holding/ Market % of Nominal Value Net Value Investment Assets Equity Investment Instruments (cont.) 175,098 Henderson Smaller Companies Investment Trust 1,027, ,321 Henderson TR Pacific Investment Trust 377, ,773 Herald Investment Trust 1,200, ,268 HG Capital Trust 844, ,908,464 HICL Infrastructure 4,540, ,894 Impax Environmental Markets Trust 838, ,230 International Biotech Trust 537, ,991,225 International Public Partnerships 2,733, ,698 Invesco Asia Trust 438, ,693 Invesco Income Growth Trust 380, ,710 Invesco Perpetual UK Smaller Companies Investment Trust 479, ,872 JPMorgan American Investment Trust 1,773, ,661 JPMorgan Asian Investment Trust 606, ,088 JPMorgan Chinese Investment Trust 332, ,153 JPMorgan Claverhouse Investment Trust 752, ,054 JPMorgan Emerging Markets Investment Trust 1,827, ,090 JPMorgan European Investment Trust (Growth Shares) 523, ,609 JPMorgan European Investment Trust (Income Shares) 158, ,660 JPMorgan European Smaller Companies Trust 940, ,582 JPMorgan Global Emerging Markets Income Trust 798, ,487 JPMorgan Indian Investment Trust 1,416, ,002 JPMorgan Japan Smaller Companies Trust 5, ,289 JPMorgan Japanese Investment Trust 1,028, ,014 JPMorgan Japanese Smaller Companies Investment Trust 248, ,554 JPMorgan Mid Cap Investment Trust 470, ,133 JPMorgan Overseas Investment Trust 658, ,588 JPMorgan Russian Securities 410, ,365 JPMorgan Smaller Companies Investment Trust 356, ,273 JPMorgan US Smaller Companies Investment Trust 3, ,051 Jupiter European Opportunities Trust 1,195, ,512 Keystone Investment Trust 543, ,735 Law Debenture 1,392, ,337 LMS Capital 182,965 40,598 London & St Lawrence Investment Company 146,660 60,813 Lowland Investment Company 790, ,866 Majedie Investments 138,687 87,338 Martin Currie Pacific Trust 275, ,609 Martin Currie Portfolio Investment Trust 518, ,608 Mercantile Investment Trust 3,428, ,566 Merchants Trust 1,222, ,538 Monks Investment Trust 2,207,

20 Portfolio Statement continued 18 Holding/ Market % of Nominal Value Net Value Investment Assets Equity Investment Instruments (cont.) 32,205 Montanaro Eurpean Smaller Companies Trust 165,212 77,617 Montanaro UK Smaller Companies Investment Trust 357, ,911 Murray Income Trust 1,124, ,814 Murray International Trust 2,872, ,177 New India Investment Trust 501, ,533 North Atlantic Smaller Companies Investment Trust 505, ,020 P2P Global Investments 998, ,084 Pacific Assets Trust 576, ,686 Pacific Horizon Investment Trust 291, ,120 Pantheon International Participations Fund 1,087, ,302 Perpetual Income & Growth Investment Trust 2,149, ,623 Personal Assets Trust 1,276, ,817 Polar Capital Global Financials Trust 421, ,098 Polar Capital Global Healthcare Growth & Income Trust 424, ,623 Polar Capital Technology Trust 1,703, ,213 RCM Technology Investment Trust 363, ,188 RIT Capital Partners 4,548, ,831 Riverstone Energy 1,173, ,180 Ruffer 751, ,786 Schroder Asia Pacific Fund 1,139, ,545 Schroder Income Growth Fund 418, ,097 Schroder Japan Growth Fund 448, ,273 Schroder Oriental Income Fund 1,049, ,695 Schroder UK Growth Fund 555, ,276 Schroder UK Mid & Small Cap Fund 345, ,230 Scottish American Investment Trust 708, ,192 Scottish Investment Trust 1,594, ,812,559 Scottish Mortgage Investment Trust 7,537, ,507 Scottish Oriental Smaller Companies Trust 582, ,188 Securities Trust of Scotland 328, ,253 Shires Income 172,440 87,869 Standard Life Equity Income Trust 362, ,163 Standard Life European Private Equity Trust 394, ,606 Standard Life UK Smaller Companies Trust 397, ,382 SVM Global Fund 224, ,085 Temple Bar Investment Trust 1,757, ,953 Templeton Emerging Markets Investment Trust 4,192, ,481 The Diverse Income Trust 661, ,715 Throgmorton Trust 486, ,196 TR European Growth Trust 721, ,139 TR Property Investment Trust 2,192, ,144 Troy Income & Growth Investment Trust 329, ,900 Value & Income Trust 265, ,998 Witan Investment Trust 3,549, ,001 Witan Pacific Investment Trust 392,

21 Portfolio Statement continued Holding/ Market % of Nominal Value Net Value Investment Assets Equity Investment Instruments (cont.) 109,573 Worldwide Healthcare Investment Trust 2,064, ,874, Software & Computer Services 0.66% (0.62%) 643,186 Anite 540, ,898 Aveva Group 2,190, ,408 Computacenter 1,274, ,063 FDM Group 655, ,102 Fidessa Group 1,809, ,311,429 Innovation Group 583, ,841 Micro Focus International 4,080, ,979 NCC Group 831, ,191 Playtech 3,551, ,400 Rm 205,409 2,415,496 Sage Group 11,331, ,037 SDL 794, ,400 Servelec Group 332, ,101 Telecity 4,278, ,459, Technology Hardware & Equipment 0.92% (0.80%) 3,144,729 ARM Holdings 34,686, ,249 CSR 3,204, ,128 Imagination Technologies 1,099, ,479 Laird Group 2,197, ,906 Pace 2,387, ,033 Sepura 128,590 1,653,679 Spirent Communications 1,438, ,141, AUSTRALIA 0.03% (0.03%) Industrial Metals & Mining 0.03% (0.03%) 2,495,729 Centamin Egypt 1,486, BERMUDA 0.31% (0.28%) Mining 0.01% (0.01%) 2,892,249 Aquarius Platinum 262, Nonlife Insurance 0.28% (0.25%) 766,117 Catlin Group 5,443, ,986 Hiscox 5,456, ,294 Lancashire Holdings 2,728, ,627, Equity Investment Instruments 0.02% (0.02%) 482,450 Utilico Emerging Markets Investment Trust 923, BRITISH VIRGIN ISLANDS 0.10% (0.09%) Mining 0.01% (0.01%) 261,635 Gem Diamonds 359,

22 Portfolio Statement continued Holding/ Market % of Nominal Value Net Value Investment Assets Life Insurance 0.09% (0.08%) 519,191 Phoenix Group 4,285, CHANNEL ISLANDS 4.12% (4.12%) Oil Equipment, Services & Distribution 0.01% (0.02%) 268,035 Cape 640, General Industrials 1.37% (1.73%) 24,163,788 Glencore International 67,682, Support Services 0.57% (0.52%) 2,242,885 Experian Group 25,097, ,426,041 Regus 3,185, ,283, Media 1.04% (0.86%) 137,492 Tarsus Group 309, ,010,852 United Business Media 5,372, ,969,374 WPP 45,312, ,995, Life Insurance 0.03% (0.01%) 2,348,105 Assura Group 1,438, Nonlife Insurance 0.07% (0.07%) 1,143,637 Beazley 3,302, Real Estate Investment & Services 0.13% (0.12%) 1,080,585 F&C Commercial Property Trust 1,484, ,512 Kennedy Wilson Europe Real Estate 3,300, ,220 Macau Property Opportunities Fund 316, ,302 MedicX Fund 598, ,070,724 Raven Russia 521, ,832 Real Estate Credit Investments 258,300 6,480, Financial Services 0.40% (0.31%) 2,424,164 Henderson Group 6,819, ,083,189 Resolution 13,017, ,836, Equity Investment Instruments 0.50% (0.48%) 1,362,170 3I Infrastructure 2,167, ,518 Advance Developing Markets Fund 510, ,758 Alcentra European Floating Rate Income Fund 355, ,182 BACIT 953, ,113 BH Credit Catalysts 199,492 64,600 BH Global 844, ,348 BH Macro (EUR) 1,811, ,244 Bluefield Solar Income Trust 666, ,032 City Merchants High Yield Trust 329, ,580 CVC Credit Partners European Opportunities Trust 573, ,367 Fidelity European Values 1,649, ,494 Foresight Solar Fund 511,

23 Portfolio Statement continued Holding/ Market % of Nominal Value Net Value Investment Assets Equity Investment Instruments (cont.) 1,291,221 GCP Infrastructure 1,523, ,468 Genesis Emerging Markets Fund 1,641, ,898 Henderson Diversified Income 297, ,473 Henderson Far East Income 791, ,675 ICG - Longbow Senior Secured UK Property Debt Instruments 244, ,600 John Laing Environmental Asset Group 194,417 1,556,686 John Laing Infastructure Fund 1,920, ,392 JPMorgan Global Convertibles Income Trust 511, ,329 Middlefield Canadian Income Trusts Investment Company 216,169 2,806,202 NB Global Floating Rate Income Fund 2,691, ,550 New City High Yield 396, ,678 NextEnergy Solar Fund 554, ,134,741 Renewables Infrastructure Group 1,171, ,292 SQN Asset Finance Income Fund 330, ,099 Starwood European 503, ,800 TwentyFour Income Trust 829, ,300 TwentyFour Select Monthly Income Fund 300, ,693, IRELAND 0.81% (0.63%) Mining 0.00% (0.01%) 5,723,309 Kenmare Resources 178,045 Construction & Materials 0.65% (0.49%) 1,837,355 CRH 31,951, Support Services 0.16% (0.13%) 189,424 DCC 7,864, ISLE OF MAN 0.04% (0.03%) Oil & Gas Producers 0.01% (0.01%) 245,993 Exillon Energy 309, Life Insurance 0.00% (0.00%) 146,713 Hansard Global 120,305 Real Estate Investment & Services 0.03% (0.02%) 2,157,795 Redefine International 1,257, ISRAEL 0.00% (0.00%) Technology Hardware & Equipment 0.00% (0.00%) 684,047 BATM Advanced Communications 85,506 LUXEMBOURG 0.03% (0.02%) Equity Investment Instrument 0.03% (0.02%) 986,729 Bilfinger Berger Global Infrastructure 1,233, SINGAPORE 0.01% (0.01%) Electronic & Electrical Equipment 0.01% (0.01%) 29,956 XP Power 437,

24 Portfolio Statement continued Holding/ Market % of Nominal Value Net Value Investment Assets SPAIN 0.54% (0.39%) Travel & Leisure 0.54% (0.39%) 1,624,160 Bwin.Party Digital Entertainment 1,300, ,256,914 International Consolidated Airlines Group 25,349, ,650, SWITZERLAND 0.11% (0.13%) Beverages 0.11% (0.13%) 449,172 Coca-Cola HBC 5,605, CANADA 0.03% (0.03%) Media 0.03% (0.03%) 442,862 Entertainment One 1,334, FUTURES 0.00% (-0.01%) 355 FTSE 100 Index Future June 2015 Expiry (175,927) Portfolio of investments 4,852,680, Net other assets 71,497, Total net assets 4,924,178, % * These are delisted securities and have been valued at the Manager s best assessment of their fair value. Total purchases for the period: 192,949,344. Total sales for the period: 23,139,

25 Financial Statements Statement of Total Return for the period ended 6 April /04/15 06/04/14 Income Net capital gains 244,262, ,391,379 Revenue 77,928,135 72,170,353 Expenses (8,404,638) (9,198,920) Finance costs: Interest (663) (8) Net revenue before taxation 69,522,834 62,971,425 Taxation (5,632) (4,424) Net revenue after taxation for the period 69,517,202 62,967,001 Total return before distributions 313,779, ,358,380 Finance costs: Distributions (69,588,082) (63,049,320) Change in net assets attributable to Unitholders from investment activities 244,191, ,309,060 Statement of Change in Net Assets attributable to Unitholders for the period ended 6 April /04/15 06/04/14 Opening net assets attributable to Unitholders 4,507,522,415 4,375,386,220 Amounts received on creation of units 338,666, ,559,775 Amounts paid on cancellation of units (207,595,957) (85,890,000) 131,070,272 48,669,775 Stamp Duty Reserve Tax (884,120) Change in net assets attributable to Unitholders from investment activities 244,191, ,309,060 Retained distribution on accumulation units 41,389,549 36,655,419 Unclaimed distribution 4, Closing net assets attributable to Unitholders 4,924,178,450 4,651,136,786 The difference between the opening net assets and the comparative closing net assets is the movement in the second half of the year. 23

26 Financial Statements continued Balance Sheet as at 6 April /04/15 06/10/14 ASSETS Investment assets 4,852,856,390 4,441,363,518 Debtors 48,033,294 16,805,383 Cash and bank balances 61,936,288 86,206,238 Cash held at futures clearing house and brokers 1,310,932 1,668,921 Total other assets 111,280, ,680,542 Total assets 4,964,136,904 4,546,044,060 LIABILITIES Investment liabilities (175,927) (498,702) Creditors (11,047,180) (6,183,915) Bank overdrafts (240) Distribution payable on distribution units (28,735,107) (31,839,028) Total other liabilities (39,782,527) (38,022,943) Total liabilities (39,958,454) (38,521,645) Net assets attributable to Unitholders 4,924,178,450 4,507,522,415 24

27 Notes to the Financial Statements 1. Accounting Policies The accounting policies applied are consistent with the most recent annual Financial Statements. (a) Basis of accounting The financial statements have been prepared on a going concern basis under the historical cost convention, as modified by the revaluation of investments and in accordance with UK Generally Accepted Accounting Practice and the Statement of Recommended Practice for Authorised Funds issued by The Investment Association in October

28 Trust Facts Distribution Information R-Class The distribution payable on 6 June 2015 is p net per unit for distribution units and p net per unit for accumulation units. I-Class The distribution payable on 6 June 2015 is p net per unit for distribution units and p net per unit for accumulation units. L-Class The distribution payable on 6 June 2015 is p net per unit for distribution units. F-Class The distribution payable on 6 June 2015 is p net per unit for distribution units and p net per unit for accumulation units. C-Class The distribution payable on 6 June 2015 is p net per unit for distribution units and p net per unit for accumulation units. Ongoing Charges Figures 6 Apr 15 6 Oct 14 R-Class 0.56% 0.56% I-Class 0.10% 0.17% L-Class 0.02% 0.02% F-Class 0.36% 0.36% C-Class 0.06% 0.10% The Ongoing Charges Figure (OCF) is the ratio of the Trust s total discloseable costs (excluding overdraft interest) to the average net assets of the Trust. The OCF is intended to provide a reliable figure which gives the most accurate measure of what it costs to invest in a trust and is calculated based on the last period s figures. 26

29 Risk and Reward Profile Lower risk Higher risk Potentially lower rewards Potentially higher rewards This risk and reward profile is based on historical data which may not be a reliable indication of the Trust s risk and reward category in the future. The category is based on the rate at which the value of the Trust has moved up and down in the past. This Trust is in category five because it invests in company shares which generally provide higher rewards and higher risks than other investments such as bonds, cash or commercial property The Trust s category is not guaranteed to remain the same and may change over time. Even a trust in the lowest category is not a risk free investment. 27

30 Performance Record Net Asset Values Net Asset Net Asset Number Of Value Of Value Per Units Accounting Date Trust Unit In Issue 6 Oct 12 R-Class Distribution Units 930,852, p 761,469,021 Accumulation Units 1,657,139, p 900,300,451 I-Class Distribution Units 382,669, p 312,990,496 Accumulation Units 578,523, p 307,265,683 L-Class Distribution Units 324,675, p 265,516,125 6 Oct 13 R-Class Distribution Units 1,022,329, p 744,616,482 Accumulation Units 1,821,467, p 854,630,652 I-Class Distribution Units 423,031, p 308,053,931 Accumulation Units 778,876, p 355,960,622 L-Class Distribution Units 327,880, p 238,719,464 F-Class* Distribution Units 735, p 533,069 Accumulation Units 1,064, p 496,363 6 Oct 14 R-Class Distribution Units 961,093, p 689,219,581 Accumulation Units 1,742,537, p 782,025,691 I-Class Distribution Units 450,440, p 322,976,088 Accumulation Units 890,470, p 387,743,230 L-Class Distribution Units 384,095, p 275,360,945 F-Class* Distribution Units 1,111, p 793,105 Accumulation Units 2,245, p 999,115 C-Class** Distribution Units 32,314, p 23,147,060 Accumulation Units 43,212, p 18,799,577 * F-Class launched on 19 December ** C-Class launched on 9 December Past performance is not a guide to future performance. The price of units and any income from them may go down as well as up. Exchange rate changes may cause the value of any overseas investments to rise or fall. 28

31 Performance Record Net Asset Values Continued Net Asset Net Asset Number Of Value Of Value Per Units Accounting Date Trust Unit In Issue 6 Apr 15 R-Class Distribution Units 974,707, p 664,132,293 Accumulation Units 1,766,893, p 743,520,362 I-Class Distribution Units 406,160, p 276,691,234 Accumulation Units 1,065,277, p 433,969,004 L-Class Distribution Units 486,408, p 331,318,579 F-Class* Distribution Units 1,766, p 1,197,519 Accumulation Units 3,296, p 1,373,966 C-Class** Distribution Units 101,472, p 69,060,167 Accumulation Units 118,194, p 48,096,049 * F-Class launched on 19 December ** C-Class launched on 9 December Past performance is not a guide to future performance. The price of units and any income from them may go down as well as up. Exchange rate changes may cause the value of any overseas investments to rise or fall. 29

32 Performance Record continued Unit Price Range and Net Revenue R-Class Units Highest Lowest Net Year Offer Bid Revenue Distribution Units p p p p p p p p p p p p p p p 2015 (1) p p p Accumulation Units p p p p p p p p p p p p p p p 2015 (1) p p p I-Class Units Highest Lowest Net Year Offer Bid Revenue Distribution Units p p p p p p p p p p p p p p p 2015 (1) p p p Accumulation Units p p p p p p p p p p p p p p p 2015 (1) p p p (1) The above tables show the highest offer and lowest bid prices to 6 April 2015 and the net revenue per unit to 6 June Past performance is not a guide to future performance. The price of units and any income from them may go down as well as up. Exchange rate changes may cause the value of any overseas investments to rise or fall. 30