Global Dynamic Equity Fund

Transcription

1 Global Dynamic Equity Fund half-yearly short report for the period 1 January 2010 to 30 June 2010 Terms in italics are explained in the glossary at the end of this document. fund objective The Fund aims to provide long term capital growth predominantly through investment in global equities. investment policy The Fund will invest directly in securities or through collective investment schemes in order to give exposure to a diversified portfolio predominantly investing in global equities. The Fund may have exposure to cash, near cash, money market instruments, permitted deposits and securities. The Fund may invest up to 10% of its property in collective investment schemes including those that are managed or operated by the Authorised Corporate Director (ACD) or an associate of the ACD. The Fund may also invest directly in derivative instruments and forward transactions for the purposes of investment or efficient portfolio management. Forward transactions may also be used with the aim of reducing currency risk for currency hedged share classes. risk profile This Fund includes some exposure to emerging markets, which tend to be less well regulated and more volatile than more established stock markets, so increasing the potential risk to investors. The Fund invests in securities designated in a different currency and the value of the Fund may rise and fall purely as a result of exchange rate fluctuations. This Fund uses derivatives which could pose a risk to the fund if the provider of the derivative becomes insolvent while it owes money to the Fund. This Fund may also undertake contracts in over-the-counter derivatives as well as those which are traded on a recognised exchange. This may expose investors to additional risk as such contracts may be more difficult to value or close. The ACD may use one or more counterparties to undertake derivative contracts on behalf of the Fund and may be required to secure such contracts using assets held by the Fund. There may be a risk that a counterparty will wholly or partially fail to honour its contractual agreements to the detriment of the Fund. The ACD measures the creditworthiness of counterparties as part of its risk management process. This Fund may invest in exchange-traded funds. These funds typically represent a market index but because they are traded on an exchange their price may be higher or lower than the net value of the underlying investments. fund mana er s report Global equities had a mixed start to After some initial weakness, global stock markets rallied strongly in late February and March, buoyed by the ongoing recovery in economic and corporate data. However, these gains were outweighed by losses from late April onwards, which were driven by worries about the high levels of government debt in Greece and other southern European countries, and fears of slower economic growth ahead. The MSCI World Index fell by 2.7% in Sterling terms over the period as a whole. Losses from most overseas markets were smaller for Sterling-based investors thanks to the weakness of the British Pound against many currencies. One notable exception was Europe, where the Euro fell sharply amid the region s debt problems. Emerging markets fared better than developed markets overall, as emerging economies continue to grow at a faster pace and are less saddled with debt than the developed world. At sector level, energy was the clear laggard, hampered by falling oil prices, while materials and information technology were also weak. Consumer-related sectors and industrials were the best-performing areas of the market overall. The Global Dynamic Equity Fund posted a small loss for the period but finished marginally ahead of the IMA Global Growth sector. Manager selection contributed to performance, with returns from Argonaut (European equities), First State (Asia Pacific excluding Japan equities) and Schroders (UK equities) particularly strong compared to their respective stock markets. Both the Argonaut and First State mandates were driven by strong stock selection within the financials and materials sectors. This more than offset weaker performance from the US equity portfolios. Asset allocation decisions had a small positive impact over the period. The preference for Asia Pacific and emerging markets, at the expense of European and US equities, proved beneficial. The mention of any particular fund/stock should not be taken as a recommendation to buy or sell investments.

2 fund facts The Fund offers accumulation shares only, which automatically reinvest any income to increase the capital value of your investment. Fund accounting dates (ex-dividend dates) The table below shows the net accumulation per share in pence since launch. Global Dynamic Equity Fund was launched on 27 March The Euro & US share classes were first offered on 9 April Calendar year 2009 Accumulation* - Fund payment/ accumulation dates 31 December 28 February 30 June 31 August Pence/cents per share 2010 Accumulation** pence 2010 Accumulation Euro*** cents 2010 Accumulation USD*** cents *from 27 March **ex-dividend date of 30 June and payable on 31 August ***from 9 April total expense ratio (TER) The Total Expense Ratio represents all operating charges and expenses as a percentage of a fund s value. It includes the Annual Management Charge as well as all the regular administrative costs incurred by a fund. Share class TER as at 30 June 2010 TER as at 31 December 2009 Accumulation 1.99% 1.99%* Euro 1.99%* n/a USD 2.02%* n/a *estimated share price performance The table below shows the highest and lowest share prices per share in pence/cents for the calendar years indicated. Calendar year Highest price Lowest price 2009 Accumulation* pence pence 2010 Accumulation** pence pence 2010 Accumulation Euro*** cents cents 2010 Accumulation USD*** cents cents *from 27 March 2009 **to 30 June 2010 ***from 9 April to 30 June 2010

3 fund performance Date Net asset value of Fund Shares in issue Net asset value per share 31 December 2009: Accumulation 805,591,360 1,150,654, pence 30 June 2010: 841,892,307 Accumulation 797,867,623 1,169,075, pence Accumulation Euro 5,881,979 8,611, pence Accumulation USD 38,142,705 55,857, pence Percentage change to 30 June months 1 year Since launch* Fund performance - Accumulation -2.44% 24.88% 37.44% *from 27 March 2009 Source: Financial Express. Figures are calculated on a total return and single price basis, with net income reinvested into the Fund. You should not view past performance as an indication of future performance. The value of investments and any income from them may fall as well as rise and you may not get back the amount you invested. Where a fund invests in securities designated in a different currency to the Fund, the value of the Fund may rise and fall purely as a result of exchange rate fluctuations.

4 portfolio allocation as at 30 June 2010 North America, 33.25% Europe, 24.30% Asia Pacific ex Japan, 15.82% Net Current Assets, 8.52% UK, 7.60% Japan, 7.04% Africa, 2.64% South America, 0.83% portfolio allocation as at 31 December 2009 North America, 25.64% Asia Pacific ex Japan, 18.53% Europe, 18.45% Cash, 12.96% UK, 8.70% Japan, 6.59% South America, 6.81% Africa, 2.32%

5 major holdin s The table below shows the top ten holdings of the Fund. All holdings will be shown if there are less than ten holdings. As at 30 June 2010 % As at 31 December 2009 % JPMorgan Global Financials Fund 2.24 Petrol Brasileiros 1.27 China Mobile (Hong Kong) 0.84 Schroder Global Emerging Markets Fund 0.87 Wells Fargo 0.77 Exxon Mobil 0.82 JPMorgan Chase 0.61 Vale 0.67 Newcrest Mining 0.61 Ipath MSCI India Index 0.66 Ipath MSCI India Index Fund 0.60 Tencent Holdings 0.63 Astra 0.59 Gartmore SICAV Latin American Fund 0.60 Novartis 0.58 Wells Fargo 0.58 Nestle 0.56 JPMorgan Chase 0.55 Apple 0.55 Lazard Emerging Markets Institutional Income Fund 0.55 lossary Collective investment schemes are investments, such as OEICS or Unit Trusts, in which money from investors is pooled into a professionally managed fund. Derivatives derivatives are contracts between two or more parties whose value is derived from a related asset. The most common related assets include shares, fixed interest securities, commodities, currencies, interest rates and market indices. Derivatives can be used for speculative purposes but in investment funds they are generally used to reduce risk. Forward transactions forward transactions are also known as futures. Futures are agreements to buy or sell assets for delivery at a certain time in the future for a certain price. Hedge making an investment to reduce the risk of adverse price movements in an asset. Although hedging can reduce potential losses, it can also tend to reduce potential profits. Money market instruments sometimes called near-cash investments because of their short maturities, and their near-liquid nature (almost immediate access upon request). Money market securities are essentially IOU s issued by governments, financial institutions, and large corporations. Near cash assets that can be quickly converted into cash. Net current assets - The amount of money a company has on hand, or will have, in a given year. It is the value of all cash and anything that can be changed into cash less any debts owed, within a 12 month period. Permitted deposits in relation to deposits held with an approved credit institution or an approval financial institution such as banks or an approved investment firm. Securities any investments that can be assigned a value and traded, such as bonds or shares, where there is a right to receive interest or dividends from the investment.

6 report and accounts Copies of the annual and half-yearly Long Form Report and Accounts are available on request. To contact us, please call * or write to: Skandia Investment Management Limited PO Box Blenheim Place Edinburgh EH7 5YB depositary The independent Depositary is the Royal Bank of Scotland plc, whose registered address is: Royal Bank of Scotland plc 36 St Andrew Square Edinburgh United Kingdom EH2 2YB The Depositary is authorised and regulated by the Financial Services Authority, whose address is: Financial Services Authority 25 The North Colonnade Canary Wharf London E14 5HS auditors The Fund s independent auditors are KPMG Audit plc, whose registered address is: KPMG Audit plc 8 Salisbury Square London EC4Y 8BB Authorised Corporate Director (ACD) The Global Dynamic Equity Fund is managed by Skandia Investment Management Limited, which is the Authorised Corporate Director (ACD) of the Fund. Its registered address is: Skandia Investment Management Limited Skandia House Portland Terrace Southampton SO14 7EJ Skandia Investment Management Limited is a company limited by shares, incorporated in England and Wales and authorised and regulated by the Financial Services Authority. how to contact us If you have any questions please contact us or call your financial adviser. Our offices are open on business days between 8.30am and 5.30pm. To contact us, please call * or write to: Skandia Investment Management Limited PO Box Blenheim Place Edinburgh EH7 5YB If you would like general information on the funds or on Skandia Investment Management Limited, you can visit our website: *Calls are charged at a rate of 3p per minute from a BT land line. Customers who have telephone services with other providers may have different call charges. Calls from the mobiles or internet services may be considerably higher. Financial Express and Skandia Investment Management Limited have done all they reasonably can to ensure information contained in this report is accurate. However, neither can accept any responsibility for decisions made by investors nor for any loss investors may suffer as a result of those decisions. Calls may be monitored and recorded for training purposes and to avoid misunderstandings. Skandia Investment Management Limited is registered in England & Wales under number Registered Office: Skandia House, Portland Terrace, Southampton, SO14 7EJ, United Kingdom. Authorised and regulated by the Financial Services Authority. FSA Register number VAT number SK5484/EF//August N