UK AND INCOME INVESTMENT FUNDS ICVC INTERIM LONG REPORT FOR THE SIX MONTH PERIOD ENDED 31 AUGUST 2015 (UNAUDITED)

Transcription

1 UK AND INCOME INVESTMENT FUNDS ICVC INTERIM LONG REPORT FOR THE SIX MONTH PERIOD ENDED 31 AUGUST 2015 (UNAUDITED)

2 Scottish Widows UK and Income Investment Funds ICVC The Company and Head Office Scottish Widows UK and Income Investment Funds ICVC Registered Office: 15 Dalkeith Road Edinburgh EH16 5WL Incorporated in Great Britain under registered number IC Authorised and regulated by the Financial Conduct Authority. Authorised Corporate Director (ACD), Authorised Fund Manager and Registrar Scottish Widows Unit Trust Managers Limited Registered Office: Head Office: Charlton Place 15 Dalkeith Road Andover Edinburgh SP10 1RE EH16 5WL Authorised and regulated by the Financial Conduct Authority and a member of The Investment Association (previously the Investment Management Association (IMA)). Investment Adviser Aberdeen Asset Investments Limited Head Office: Correspondence Address: Bow Bells House 40 Princes Street 1 Bread Street Edinburgh London EH2 2BY EC4M 9HH Authorised and regulated by the Financial Conduct Authority and a member of The Investment Association (previously the Investment Management Association (IMA)). Depositary State Street Trustees Limited Registered Office: 20 Churchill Place Canary Wharf London E14 5HJ Authorised and regulated by the Financial Conduct Authority. Correspondence Address: 525 Ferry Road Edinburgh EH5 2AW Independent Auditors PricewaterhouseCoopers LLP Level 4, Atria One 144 Morrison Street Edinburgh EH3 8EX

3 Contents Page 2 About the Company* 4 Report of the Authorised Corporate Director* 5 Notes to the Financial Statements Investment Markets Overview*, Portfolio Statement*, Material Portfolio Changes*, Performance Record and Financial Statements for: 6 Corporate Bond Fund 23 Environmental Investor Fund 31 Ethical Fund 39 Gilt Fund 49 High Income Bond Fund 63 High Reserve Fund 77 SafetyPlus Fund 84 Strategic Income Fund 100 UK Equity Income Fund 112 UK Growth Fund 124 UK Select Growth Fund 132 General Information *Collectively, these comprise the Authorised Corporate Director's Report. SafetyPlus is a registered trademark of Scottish Widows plc.

4 About the Company Welcome to the Interim Long Report for the Scottish Widows UK and Income Investment Funds ICVC (the "Company") covering the six month period ended 31 August 2015 (the "Report"). The Authorised Corporate Director (the "ACD") and Authorised Fund Manager of the Company is Scottish Widows Unit Trust Managers Limited, a private company limited by shares which was incorporated in England and Wales on 19 April Its ultimate holding company is Lloyds Banking Group plc ("Lloyds"), which is incorporated in Scotland. The Company is an Open-Ended Investment Company ("OEIC") with variable capital, incorporated in Great Britain under registration number IC and is authorised and regulated by the Financial Conduct Authority "the FCA" (previously the Financial Services Authority "the FSA") under regulation 12 of the Open-Ended Investment Companies Regulations 2001 (SI2001/1228) ("the OEIC Regulations"), with effect from 15 March Shareholders are not liable for the debts of the Company. The Company is a UCITS scheme which complies with Chapter 5 of the Financial Conduct Authority Collective Investment Schemes sourcebook (the "COLL sourcebook"). The Company is structured as an umbrella fund, in that the scheme property of the Company is currently divided among 11 sub-funds, each with different investment objectives. The assets of each sub-fund will be treated as separate from those of every other sub-fund and will be invested in accordance with the investment objective and investment policy applicable to that sub-fund. The investment objective and policies and a review of the investment activities during the six month period are disclosed in the Financial Statements of the individual sub-funds. New sub-funds may be established from time to time by the ACD with the approval of the FCA and Depositary. Each sub-fund would, if it were a separate investment company with variable capital, also be a UCITS scheme which complies with Chapter 5 of the COLL sourcebook. The assets of each Fund belong exclusively to that sub-fund and shall not be used or made available to discharge (directly or indirectly) the liabilities of, or claims against, any other person or body, including the Company and any other sub-fund and shall not be available for such purpose. Whilst the provisions of the OEIC Regulations provide for segregated liability between Funds, the concept of segregated liability is relatively new. Accordingly, where claims are brought by local creditors in foreign courts or under foreign law contracts, it is not yet known whether a foreign court would give effect to the segregated liability and cross-investments provisions contained in the OEIC Regulations. Therefore, it is not possible to be certain that the assets of a Fund will always be completely insulated from the liabilities of another Fund of the Company in every circumstance. The financial statements have been prepared on an individual basis for the 11 sub-funds in existence during the six month period covered by this Interim Long Report, as permitted by the OEIC Regulations and the COLL sourcebook. The Report of the Authorised Corporate Director is defined as those items highlighted in the contents page in accordance with paragraph of the COLL sourcebook. During the six month period there have been a number of changes to the Company: These changes are detailed in the section Prospectus changes. Prospectus changes During the six month period and up to the date of this report, the following changes were made to the Company and therefore the following changes were reflected in the Prospectus of Scottish Widows UK and Income Investment Funds ICVC: With effect from 24 July 2015, the risk wording in the Prospectus was updated as explained further below in the Important Information section. With effect from 24 July 2015, the Prospectus and Instrument of the Company were updated by: adding a definition of a US resident investor (the US Person ); and adding a restriction on such a US Person holding shares in the Company. With effect from 24 July 2015, the Prospectus was updated to explain that the ACD may choose to make use of the Delivery Versus Payment exemption within the FCA s client money and asset (CASS) rules. This period means that when Shares are purchased or redeemed there could be a time (up to close of business the day after the ACD has received the proceeds from any such transaction) where the payment or redemption monies for these Shares is not protected under the CASS rules. If in the unlikely event that the ACD became insolvent during this period, there is a risk that the impacted investor may not receive back the payment or redemption monies. With effect from 24 July 2015, the available eligible securities markets were updated for the UK Equity Income Fund by the addition of a number of US markets and a Swiss Market. 2

5 About the Company (continued) With effect from 24 July 2015, the Prospectus and Instrument of the Company were updated to: (i) amend the investment objective of the Environmental Investor Fund and the Ethical Fund (each a Fund and together the Funds ), which are both sub-funds of the Scheme, to remove references to (a) a positive commitment to the protection and preservation of the natural environment in the investment objective of the Environmental Investor Fund and (b) positive ethical attributes in the investment objective of the Ethical Fund; In addition further amendments were made to the Prospectus on this date to: (i) amend the investment policy of the Funds to remove references to (a) a positive commitment to the protection and preservation of the natural environment in the investment policy of the Environmental Investor Fund and (b) positive ethical attributes in the investment policy of the Ethical Fund; (ii) include a specific reference in the investment policy of each Fund to the existing power to invest in international companies; (iii) remove references in the investment policy of each Fund to the Advisory Body as being responsible for agreeing the environmental/ethical (as appropriate) criteria which determine each Fund s investment universe; and (iv) update the environmental/ethical (as appropriate) criteria set out in the investment policy of each Fund to reflect current Environmental, Social and Governance issues and to permit each Fund to use a negative screening process rather than both negative and positive criteria. A copy of the Prospectus is available on request. Important information High Income Bond It is our intention to change the wording in the investment policy for the High Income Bond Fund to clarify the extent to which the Fund may hold non-investment grade securities. The relevant part of this fund s investment policy will be amended to state The majority of the Fund will be invested in non-investment grade securities, including corporate bonds and other investment securities. The current investment policy allows the Authorised Corporate Director (ACD) to invest in non-investment grade securities at its discretion. Please note that this is a clarification to the wording of the investment policy and not a change to the strategy or risk profile of the High Income Bond Fund. The proposed change has been approved by the FCA and we have agreed with the Depositary of the UK and Income Investment Funds ICVC to provide shareholders with 30 days notice. This change will, therefore, be effective from 3 December This change will be consistent with the objective and policy description in the High Income Bond Fund s Key Investor Information Document (KIID) which already discloses that the majority of the fund will be invested in non-investment grade securities. The KIID for the High Income Bond can be found on our website at Fund risk wording review: We have reviewed the risk wordings in the Prospectuses for all Funds alongside wording in the Key Investor Information Documents (KIIDs). As a result of our review we have added further risk wording to the Prospectuses and we recommend you read the risk section of the Prospectus for the Fund(s) you are invested in within the Company. The Prospectuses can be found on the following web page: Please note there have been no changes to the risk profiles of the Funds or to the investment strategies or objectives of the Funds in the Company. Holdings in Other Sub-Funds of the Company As at 31 August 2015 there were no shares in sub-funds of the Scottish Widows UK and Income Investment Funds ICVC held by other sub-funds of the company. 3

6 Report of the Authorised Corporate Director In accordance with the requirements of the COLL sourcebook as issued and amended by the Financial Conduct Authority, we hereby certify the Report on behalf of Scottish Widows Unit Trust Managers Limited, the Authorised Corporate Director. James Clatworthy Director Scottish Widows Unit Trust Managers Limited 23 October

7 Notes to the Financial Statements Accounting and Distribution Policies The interim financial statements for each of the Funds have been prepared in accordance with the Statement of Recommended Practice (SORP) for Authorised Funds issued by the Investment Management Association (IMA) in May 2014 (the IMA SORP 2014). The accounting and distribution policies applied are consistent with those of the financial statements for the year ended 28 February 2015 and are described in those annual financial statements. 5

8 Corporate Bond Fund Investment Markets Overview for the six month period ended 31 August 2015 (unaudited) Investment Objective and Policy To provide an attractive level of income, whilst having regard to capital value, through investments denominated in the currency of the United Kingdom, predominantly corporate bonds and other fixed interest securities issued principally by companies operating in the United Kingdom or Europe. The Fund will invest in a diversified portfolio of securities which may include, directly or indirectly, secured and unsecured loan stock, government and other public securities, other bonds, convertible securities, preference shares and shares, however the Fund may invest in other types of investment at the discretion of the ACD. Derivatives may be used for efficient portfolio management purposes only. Synthetic Risk and Reward Indicator There are several different ways of measuring risk. The table below uses an industry standard measure of Fund risk based on measuring a Fund's volatility using its returns over the past five years. Volatility is generated by both rising and falling prices. Volatility doesn't tell you how much a Fund has lost or gained; it indicates how volatile its returns were historically. The Fund's ranking may change over time and may not be a reliable indication of its future risk profile. This is a separate measure to Scottish Widows' Investment Approaches (where we use our own methodology to take an overall look at funds' risks and aims and categorise our funds as Secure, Cautious, Balanced, Progressive, Adventurous or Specialist). You can read more about them at The Fund is ranked at 4* because it has experienced medium levels of volatility over the past 5 years. *As disclosed in the key investor information document dated 25 June Investment Review Performance Corporate Bond Fund A Accumulation Corporate Bond Sector Average Return Typically lower rewards, lower risks Typically higher rewards, higher risks /03/15 01/03/14 01/03/13 29/02/12 01/03/11 01/03/10 to 31/08/15 to 28/02/15 to 28/02/14 to 28/02/13 to 28/02/12 to 28/02/11 % % % % % % (3.76) (2.32) Source: Lipper for Corporate Bond Fund and Corporate Bond Sector Average Return (funds which invest at least 80% of their assets in Sterling denominated (or hedged back to Sterling), triple BBB minus or above corporate bond securities (as measured by Standard & Poor's or an equivalent external rating agency). This excludes convertibles, preference shares and permanent interest bearing shares (PIBs)). Basis: Net revenue reinvested and net of expenses. Past performance is not a reliable indicator of future results. The value of an investment and any revenue from it is not guaranteed and can go down as well asup depending on investment performance and currency exchange rates. The government bond market started the review period strongly, with yields falling materially in March and prices rising on investor nervousness. The onset of quantitative easing (QE), falling commodity prices, softer economic data and ongoing global conflicts all contributed to an environment of ever-falling yields and positive returns from conventional bonds. However, corporate bonds weakened after the European Central Bank (ECB) commenced purchases of government bonds early in March. This was a result of widening yield spreads that is, the failure of corporate bond yields to keep up with the rapid fall in government yields. From April onwards, bond markets were volatile. Part of this move could be explained by commodity price moves and oil in particular, which moved higher and partly by investor positioning (long positions having been built up by fixed income investors in anticipation of Eurozone QE). In May and June, government bond yields continued to move higher a continuation of the aforementioned unwinding of long investor positioning. Meanwhile, investment grade markets in Europe lost ground, largely due to uncertainty caused by an escalation of concerns over Greek debt negotiations. August was a poor month for investment grade corporate bonds, with yield spreads widening sharply as the market digested concerns over China and the impact of slowing economic growth on global gross domestic product and commodity prices. 6

9 Corporate Bond Fund Investment Markets Overview (continued) Throughout the review period, the Scottish Widows Corporate Bond Fund was overweight relative to benchmark in financials and higher-yielding corporates, and was positioned with a broadly neutral duration. Bonds issued by banks and insurers were among our key overweight positions, and these were generally positive for performance, although latterly the insurance sector was weak. High yield bonds added value for most of the review period, as this asset class continued to attract new flows of investment. Returns from stock selection were mixed. Holdings in the banking sector such as Royal Bank of Scotland and Lloyds added significant value, as did Italian utility Enel SPA. Meanwhile, market allocation to technology, media and telecoms and multi-utilities detracted from performance. Insurer Aviva was the largest detractor in August, as completion of its merger with Friends Life drew closer. Looking ahead, corporate bond valuations have become cheaper, driven by negative sentiment broadening out from commodity-related issues to a more general rise in risk aversion. While this may be an over-reaction, deflationary forces currently dominating markets may prevent an upturn in sentiment on corporate debt in the near-term. Aberdeen Asset Investments Limited September 2015 Investment markets and conditions can change rapidly and as such the views expressed should not be taken as statements of fact nor should reliance be placed on these views when making investment decisions. 7

10 Corporate Bond Fund Portfolio Statement Nominal Values Market Value Total Net Assets % ASSET-BACKED SECURITIES (4.37%*) 164, Annington Finance No 1 8% 02/10/2021 GBP4,735,575 5, Annington Finance No 4 0% 07/12/2022 GBP9,560,000 7, Annington Finance No % 10/01/2023 GBP15,210,000 15, Annington Repackaging No % 10/01/2023 GBP9,240,000 10, BL Superstores Finance 4.482% 04/10/2030 GBP4,271,034 4, BL Superstores Finance 5.27% 04/10/2030 GBP13,653,517 14, Canary Wharf Finance II 6.8% 22/10/2033 GBP3,716,382 4, Dignity Finance % 31/12/2049 GBP11,401,000 12, Finance for Residential Social Housing 8.369% 04/10/2058 GBP3,810,024 6, Freshwater Finance 4.607% 17/10/2036 GBP2,569,112 2, Greene King Finance (FRN) % 15/12/2033 GBP6,917,287 6, Housing Association Funding 8.25% 07/06/2027 GBP4,788,967 6, Meadowhall Finance 4.986% 12/07/2037 GBP6,680,128 7, Meadowhall Finance 4.988% 12/07/2037 GBP11,992,972 13, Mitchells & Butlers Finance 5.574% 15/12/2030 GBP3,147,793 3, Mitchells & Butlers Finance (FRN) % 15/12/2033 GBP15,504,000 13, SLM Student Loan Trust % 15/12/2039 GBP5,081,376 4, SLM Student Loan Trust % 15/03/2038 GBP10,660,000 9, Telereal Securitisation % 10/12/2033 GBP3,220,952 3, Telereal Securitisation % 10/12/2033 GBP2,963,571 3, Telereal Securitisation % 10/12/2033 GBP1,597,944 1, Telereal Securitisation % 10/12/2033 GBP3,974,742 4, CORPORATE BONDS (86.18%*) 3,234, AA Bond % 02/07/2043 GBP8,420,000 8, Abbey National Treasury Services 1.875% 17/02/2020 GBP11,140,000 10, Abbey National Treasury Services 3.875% 15/10/2029 GBP6,900,000 7, ABN AMRO Bank 4.875% 16/01/2019 GBP7,041,000 7, Aegon 6.625% 16/12/2039 GBP3,230,000 4, America Movil 5.75% 28/06/2030 GBP10,989,000 13, America Movil 4.948% 22/07/2033 GBP7,881,000 8, America Movil 6.375% 06/09/2073 GBP8,562,000 9, Amgen 5.5% 07/12/2026 GBP10,805,000 12, Amgen 4% 13/09/2029 GBP9,367,000 9, Amlin 6.5% 19/12/2026 GBP3,535,000 3, Anglian Water Services Financing 4.5% 05/10/2027 GBP6,298,000 6, Apple 3.6% 31/07/2042 GBP22,680,000 21, APT Pipelines 3.5% 22/03/2030 GBP16,500,000 15, Artesian Finance II 6% 30/09/2033 GBP3,415,000 4, ASIF III Jersey 5.375% 14/10/2016 GBP21,049,000 21, Aspire Defence Finance 4.674% 31/03/2040 GBP18,098,287 20, Aster Treasury 4.5% 18/12/2043 GBP8,721,000 9, AT&T 7% 30/04/2040 GBP8,000,000 10, AT&T 4.25% 01/06/2043 GBP31,816,000 28, AT&T 4.875% 01/06/2044 GBP10,330,000 10, Aviva 6.125% 14/11/2036 GBP7,000,000 7, Aviva 6.625% 03/06/2041 GBP23,545,000 25, Aviva 5.125% 04/06/2050 GBP10,500,000 9, Aviva 6.875% 20/05/2058 GBP12,073,000 13, Aviva % Perpetual GBP3,462,000 3, Aviva 6.125% Perpetual GBP3,510,000 3, AXA 5.453% Perpetual GBP33,228,000 33, AXA % Perpetual GBP10,748,000 11, Bank of America 7.75% 30/04/2018 GBP9,000,000 10,

11 Corporate Bond Fund Portfolio Statement (continued) Nominal Values Market Value Total Net Assets % Bank of America 7% 31/07/2028 GBP26,850,000 36, Bank of Scotland 9.375% 15/05/2021 GBP21,070,000 26, Barclays 7.875% Perpetual GBP9,200,000 9, Barclays Bank 10% 21/05/2021 GBP43,833,000 56, Barclays Bank 6.75% 16/01/2023 GBP6,156,000 6, Barclays Bank 8.25% Perpetual GBP5,940,000 6, Barclays Bank 14% Perpetual GBP13,674,000 17, BAT International Finance 6% 29/06/2022 GBP14,500,000 17, BAT International Finance 7.25% 12/03/2024 GBP4,522,000 5, BAT International Finance 6% 24/11/2034 GBP4,354,000 5, BG Energy Capital 5.125% 01/12/2025 GBP9,331,000 10, BG Energy Capital 6.5% 30/11/2072 GBP16,088,000 17, BHP Billiton Finance 3.25% 25/09/2024 GBP5,000,000 4, BHP Billiton Finance 4.3% 25/09/2042 GBP6,000,000 5, BNP Paribas 5.954% Perpetual GBP10,350,000 10, British Telecommunications 5.75% 07/12/2028 GBP4,174,000 4, British Telecommunications 6.375% 23/06/2037 GBP7,823,000 10, Centrica 4.25% 12/09/2044 GBP12,000,000 11, Centrica 5.25% 10/04/2075 GBP14,300,000 14, Cie de St-Gobain 5.625% 15/11/2024 GBP4,950,000 5, Cie de St-Gobain 4.625% 09/10/2029 GBP12,855,000 13, Circle Anglia Social Housing 7.25% 12/11/2038 GBP5,100,000 7, Citigroup 7.625% 03/04/2018 GBP9,585,000 10, Citigroup 5.125% 12/12/2018 GBP3,576,000 3, Citigroup 4.5% 03/03/2031 GBP30,896,000 31, Citigroup 6.8% 25/06/2038 GBP8,072,000 11, Close Brothers Finance 3.875% 27/06/2021 GBP10,500,000 10, CNP Assurances 7.375% 30/09/2041 GBP10,000,000 11, Cooperatieve Centrale Raiffeisen-Boerenleenbank 4.625% 23/05/2029 GBP8,850,000 8, Cooperatieve Centrale Raiffeisen-Boerenleenbank 5.25% 23/05/2041 GBP10,000,000 11, Credit Agricole 5% Perpetual GBP7,954,000 8, Credit Agricole 8.125% Perpetual GBP3,300,000 3, Daily Mail & General Trust 6.375% 21/06/2027 GBP3,250,000 3, Danske Bank 5.375% 29/09/2021 GBP5,966,000 6, Deutsche Telekom International Finance 6.5% 08/04/2022 GBP19,398,000 23, Deutsche Telekom International Finance 8.875% 27/11/2028 GBP3,407,000 5, Deutsche Telekom International Finance 7.625% 15/06/2030 GBP10,000,000 14, Digital Stout 4.25% 17/01/2025 GBP12,597,000 12, DIRECTV Financing 4.375% 14/09/2029 GBP13,552,000 13, DIRECTV Financing 5.2% 18/11/2033 GBP23,619,000 24, E.ON International Finance 6.375% 07/06/2032 GBP16,183,000 19, E.ON International Finance 5.875% 30/10/2037 GBP16,500,000 19, E.ON International Finance 6.75% 27/01/2039 GBP3,500,000 4, Eastern Power Networks 6.25% 12/11/2036 GBP19,060,000 25, EE Finance 4.375% 28/03/2019 GBP13,542,000 14, Electricite de France 6.25% 30/05/2028 GBP18,600,000 23, Electricite de France 5.875% 18/07/2031 GBP8,588,000 10, Electricite de France 5.5% 17/10/2041 GBP29,000,000 33, Electricite de France 5.125% 22/09/2050 GBP25,450,000 28, Electricite de France 6% 23/01/2114 GBP10,300,000 12, Electricite de France 5.875% Perpetual GBP4,100,000 4, Electricite de France 6% Perpetual GBP23,800,000 24, Electricity North West 8.875% 25/03/2026 GBP6,137,000 9, Enel 5.75% 22/06/2037 GBP2,173,000 2,

12 Corporate Bond Fund Portfolio Statement (continued) Nominal Values Market Value Total Net Assets % Enel 6.625% 15/09/2076 GBP630, Enel Finance International 5.625% 14/08/2024 GBP4,586,000 5, Enel Finance International 5.75% 14/09/2040 GBP26,116,000 30, ESB Finance 6.5% 05/03/2020 GBP4,522,000 5, Firstgroup 8.75% 08/04/2021 GBP17,992,000 22, Friends Life 8.25% 21/04/2022 GBP11,467,000 13, Gatwick Funding 6.125% 02/03/2028 GBP3,553,000 4, Gatwick Funding 4.625% 27/03/2036 GBP10,013,000 10, Gatwick Funding 6.5% 02/03/2043 GBP7,979,000 10, GE Capital UK Funding 5.125% 24/05/2023 GBP19,144,000 22, GE Capital UK Funding 5.875% 18/01/2033 GBP3,459,000 4, GE Capital UK Funding 6.25% 05/05/2038 GBP16,307,000 22, GE Capital UK Funding 8% 14/01/2039 GBP5,956,000 9, General Electric Capital 5.5% 07/06/2021 GBP10,496,000 12, General Electric Capital 5.25% 07/12/2028 GBP13,241,000 16, General Electric Capital 4.875% 18/09/2037 GBP2,630,000 2, General Electric Capital 6.5% 15/09/2067 GBP25,996,000 26, GKN 6.75% 28/10/2019 GBP7,724,000 8, GKN 5.375% 19/09/2022 GBP20,039,000 22, GlaxoSmithKline Capital 6.375% 09/03/2039 GBP11,499,000 15, GlaxoSmithKline Capital 5.25% 10/04/2042 GBP7,652,000 9, Glencore Canada Financial 7.375% 27/05/2020 GBP11,486,000 12, Glencore Finance Europe 6.5% 27/02/2019 GBP21,100,000 22, Glencore Finance Europe 6% 03/04/2022 GBP8,350,000 8, Grainger 5% 16/12/2020 GBP5,900,000 6, Great Rolling Stock 6.5% 05/04/2031 GBP8,459,370 10, Great Rolling Stock 6.875% 27/07/2035 GBP5,529,437 7, Guinness Partnership 9.125% 31/01/2025 GBP8,000,000 11, Guinness Trustees 7.5% 30/11/2037 GBP6,575,580 9, HBOS Capital Funding 6.461% Perpetual GBP10,000,000 10, Health Care REIT 4.8% 20/11/2028 GBP5,943,000 6, Heathrow Finance 7.125% 01/03/2017 GBP7,130,000 7, Heathrow Finance 5.75% 03/03/2025 GBP7,865,000 7, Heathrow Funding 6% 20/03/2020 GBP10,136,000 11, Heathrow Funding 5.225% 15/02/2023 GBP8,800,000 9, Heathrow Funding 7.125% 14/02/2024 GBP23,862,000 29, Heathrow Funding 7.075% 04/08/2028 GBP4,009,000 5, Heathrow Funding 6.45% 10/12/2031 GBP10,921,000 14, Heathrow Funding 4.625% 31/10/2048 GBP9,864,000 10, Highbury Finance 7.017% 20/03/2023 GBP8,906,599 10, HJ Heinz Finance UK 6.25% 18/02/2030 GBP6,387,000 7, HSBC 6.375% 18/10/2022 GBP3,650,000 3, HSBC 6.5% 20/05/2024 GBP19,225,000 23, HSBC 6.75% 11/09/2028 GBP10,750,000 12, HSBC 7% 07/04/2038 GBP7,400,000 9, HSBC 6% 29/03/2040 GBP21,659,000 24, HSBC Bank 4.75% 29/09/2020 GBP9,710,000 9, HSBC Bank 4.75% 24/03/2046 GBP8,659,000 8, HSBC Bank Capital Funding Sterling % Perpetual GBP10,000,000 10, Hutchison Whampoa Finance UK 5.625% 24/11/2026 GBP14,000,000 16, Imperial Tobacco Finance 9% 17/02/2022 GBP33,388,000 43, Imperial Tobacco Finance 8.125% 15/03/2024 GBP4,483,000 5, Imperial Tobacco Finance 5.5% 28/09/2026 GBP11,839,000 13, ING Bank 5.375% 15/04/2021 GBP12,950,000 14,

13 Corporate Bond Fund Portfolio Statement (continued) Nominal Values Market Value Total Net Assets % ING Bank 6.875% 29/05/2023 GBP22,864,000 25, InterContinental Hotels 3.875% 28/11/2022 GBP9,790,000 9, InterContinental Hotels 3.75% 14/08/2025 GBP16,000,000 15, Intu Metrocentre Finance 4.125% 06/12/2023 GBP10,950,000 11, Intu SGS Finance 3.875% 17/03/2028 GBP6,872,000 6, Koninklijke KPN 5% 18/11/2026 GBP6,082,000 6, Koninklijke KPN 5.75% 17/09/2029 GBP4,000,000 4, Kraft Heinz Foods 4.125% 01/07/2027 GBP6,000,000 6, Lafarge 10% 30/05/2017 GBP5,911,000 6, Legal & General 5.5% 27/06/2064 GBP10,000,000 9, Legal & General 6.385% Perpetual GBP8,000,000 8, Linde Finance 8.125% 14/07/2066 GBP6,222,000 6, Lloyds Bank 7.625% 22/04/2025 GBP3,230,000 4, Lloyds Bank 5.75% 09/07/2025 GBP19,827,000 21, Lloyds Bank 6.5% 17/09/2040 GBP16,773,000 23, Lloyds Bank 13% Perpetual GBP1,675,000 2, Lloyds Banking 7% Perpetual GBP13,776,000 13, Lloyds Banking 7.625% Perpetual GBP4,850,000 5, Lloyds Banking 7.875% Perpetual GBP6,443,000 6, London & Quadrant Housing Trust 4.625% 05/12/2033 GBP18,250,000 20, Manchester Airport Funding 4.75% 31/03/2034 GBP5,620,000 6, Marks & Spencer 4.75% 12/06/2025 GBP22,558,000 24, MetLife 5.25% 29/06/2020 GBP9,812,000 11, Mexico Government International Bond 5.625% 19/03/2114 GBP8,944,000 8, Mondelez International 3.875% 06/03/2045 GBP7,746,000 6, Motability Operations 6.625% 10/12/2019 GBP6,305,000 7, Motability Operations 3.75% 16/07/2026 GBP15,000,000 15, Motability Operations 5.625% 29/11/2030 GBP5,667,000 7, Muenchener Rueckversicherungs-Gesellschaft 6.625% 26/05/2042 GBP5,000,000 5, National Express 6.25% 13/01/2017 GBP4,567,000 4, National Grid Electricity Transmission 6.5% 27/07/2028 GBP15,090,000 20, National Grid Electricity Transmission 7.375% 13/01/2031 GBP3,480,000 5, National Westminster Bank 7.875% 09/09/2015 GBP14,690,000 14, National Westminster Bank 7.125% Perpetual GBP2,630,000 2, Nats En Route 5.25% 31/03/2026 GBP7,705,891 8, Network Rail Infrastructure Finance 4.625% 21/07/2020 GBP3,677,000 4, NGG Finance 5.625% 18/06/2073 GBP7,690,000 8, NIE Finance 6.375% 02/06/2026 GBP9,690,000 12, Nordea Bank 2.125% 13/11/2019 GBP6,286,000 6, Northern Gas Networks Finance 4.875% 30/06/2027 GBP22,419,000 25, Northern Powergrid Yorkshire 2.5% 01/04/2025 GBP7,700,000 7, Northumbrian Water Finance 5.625% 29/04/2033 GBP6,555,000 8, Northumbrian Water Finance 5.125% 23/01/2042 GBP12,002,000 13, Orange 5.25% 05/12/2025 GBP2,962,000 3, Orange 8.125% 20/11/2028 GBP11,827,000 16, Orange 5.625% 23/01/2034 GBP13,139,000 15, Orange 5.375% 22/11/2050 GBP12,450,000 14, Orange 5.75% Perpetual GBP4,775,000 4, Orange 5.875% Perpetual GBP8,697,000 8, Paragon Treasury 3.625% 21/01/2047 GBP6,600,000 6, Peabody Capital 5.25% 17/03/2043 GBP6,460,000 7, PGH Capital 5.75% 07/07/2021 GBP7,000,000 7, PICTS 5.218% 20/01/2039 GBP7,800,018 8, Places for People Homes 5.875% 23/05/2031 GBP17,110,000 20,

14 Corporate Bond Fund Portfolio Statement (continued) Nominal Values Market Value Total Net Assets % Places for People Homes 5.09% 31/07/2043 GBP7,700,000 8, Porterbrook Rail Finance 7.125% 20/10/2026 GBP5,814,000 7, Porterbrook Rail Finance 4.625% 04/04/2029 GBP4,199,000 4, Premiertel 6.175% 08/05/2032 GBP6,717,734 7, Prudential 1.25% 16/11/2015 GBP14,849,000 14, Prudential % 29/05/2039 GBP12,600,000 15, Prudential 5% 20/07/2055 GBP24,900,000 23, Prudential 5.7% 19/12/2063 GBP8,000,000 8, QBE Capital Funding IV 7.5% 24/05/2041 GBP15,788,000 17, Rio Tinto Finance 4% 11/12/2029 GBP15,540,000 15, RMPA Services 5.337% 30/09/2038 GBP10,521,594 12, Rolls-Royce 3.375% 18/06/2026 GBP7,688,000 7, Royal Bank of Scotland 7.5% 29/04/2024 GBP17,579,000 22, Royal Bank of Scotland 6.875% 17/05/2025 GBP12,640,000 16, RSA Insurance 5.125% 10/10/2045 GBP9,600,000 9, RWE Finance 6.5% 20/04/2021 GBP5,489,000 6, RWE Finance 6.25% 03/06/2030 GBP9,270,000 10, RWE Finance 4.75% 31/01/2034 GBP9,000,000 8, RWE Finance 6.125% 06/07/2039 GBP3,000,000 3, Sanctuary Capital 5% 26/04/2047 GBP2,174,000 2, Santander UK 9.625% 30/10/2023 GBP3,157,000 3, Santander UK 7.375% Perpetual GBP5,710,000 5, Santander UK 7.5% Perpetual GBP14,212,000 14, Scotland Gas Networks 4.75% 21/02/2017 GBP5,749,000 6, Scottish Power UK 8.375% 20/02/2017 GBP8,319,000 9, Scottish Widows 5.5% 16/06/2023 GBP2,128,000 2, Scottish Widows 7% 16/06/2043 GBP7,752,000 8, Scottish Widows 5.125% Perpetual GBP9,945,000 9, Severn Trent Utilities Finance 6.125% 26/02/2024 GBP6,898,000 8, Severn Trent Utilities Finance 4.875% 24/01/2042 GBP11,246,000 12, Slate No.1 0% 24/07/2017 GBP6,559,336 6, Societe Generale 8.875% Perpetual GBP16,762,000 18, Society of Lloyd's 4.75% 30/10/2024 GBP16,138,000 16, Society of Lloyd's 7.421% Perpetual GBP16,084,000 16, South East Water Finance % 30/09/2019 GBP10,783,000 11, Southern Gas Networks 5.125% 02/11/2018 GBP3,366,000 3, Southern Gas Networks 4.875% 21/12/2020 GBP4,070,000 4, Southern Gas Networks 6.375% 15/05/2040 GBP10,000,000 13, Southern Water Services Finance 6.125% 31/03/2019 GBP3,991,000 4, Southern Water Services Finance 6.192% 31/03/2029 GBP5,233,000 6, Sovereign Housing Capital 5.705% 10/09/2039 GBP2,500,000 3, SSE 8.375% 20/11/2028 GBP15,232,000 22, SSE 3.875% Perpetual GBP19,100,000 18, SSE 5.453% Perpetual GBP23,499,000 23, Standard Chartered 5.125% 06/06/2034 GBP8,527,000 7, Standard Chartered Bank 7.75% Perpetual GBP19,530,000 22, Standard Life 5.5% 04/12/2042 GBP3,611,000 3, Standard Life 6.75% Perpetual GBP14,900,000 16, Sunderland SHG Finance 6.38% 31/03/2042 GBP12,000,000 15, Svenska Handelsbanken 4% 18/01/2019 GBP9,625,000 10, Svenska Handelsbanken 2.75% 05/12/2022 GBP11,780,000 11, Swiss Reinsurance % Perpetual GBP17,300,000 18, Telecom Italia 7.375% 15/12/2017 GBP5,100,000 5, Telecom Italia 6.375% 24/06/2019 GBP12,150,000 13,

15 Corporate Bond Fund Portfolio Statement (continued) Nominal Values Market Value Total Net Assets % Telefonica Emisiones 5.289% 09/12/2022 GBP8,250,000 9, Telefonica Emisiones 5.375% 02/02/2026 GBP3,675,000 4, Telefonica Emisiones 5.445% 08/10/2029 GBP9,500,000 10, Thames Water Kemble Finance 7.75% 01/04/2019 GBP5,000,000 5, Thames Water Kemble Finance 5.875% 15/07/2022 GBP7,500,000 7, Thames Water Utilities Cayman Finance 4% 19/06/2025 GBP6,280,000 6, Thames Water Utilities Cayman Finance 5.375% 21/07/2025 GBP4,822,000 5, Thames Water Utilities Cayman Finance 4.375% 03/07/2034 GBP4,485,000 4, Thames Water Utilities Cayman Finance 5.5% 11/02/2041 GBP3,776,000 4, Thames Water Utilities Cayman Finance 7.241% 09/04/2058 GBP8,225,000 9, Thames Water Utilities Finance 6.75% 16/11/2028 GBP6,950,000 9, THFC Funding No % 21/12/2037 GBP13,800,000 15, THFC Funding No % 08/07/2041 GBP1,898,000 2, THFC Funding No 3 5.2% 11/10/2043 GBP9,661,000 11, Time Warner Cable 5.75% 02/06/2031 GBP13,466,000 13, UBS 6.625% 11/04/2018 GBP8,688,000 9, UBS Jersey 8.75% 18/12/2025 GBP7,581,000 10, UNITE USAF II 3.374% 30/06/2028 GBP4,328,000 4, United Utilities Water 5.75% 25/03/2022 GBP3,916,000 4, UPP Bond 1 Issuer % 28/02/2040 GBP4,055,210 4, Vattenfall 6.875% 15/04/2039 GBP4,504,000 6, Verizon Communications 4.75% 17/02/2034 GBP13,500,000 14, Vodafone 5.9% 26/11/2032 GBP5,000,000 5, Volkswagen Financial Services 1.75% 21/08/2017 GBP8,010,000 8, Wales & West Utilities Finance 5.125% 02/12/2016 GBP5,407,000 5, Wessex Water Services Finance 5.375% 10/03/2028 GBP12,403,000 14, Western Power Distribution East Midlands 5.25% 17/01/2023 GBP7,816,000 8, Western Power Distribution East Midlands 6.25% 10/12/2040 GBP4,522,000 6, Western Power Distribution West Midlands 6% 09/05/2025 GBP13,537,000 16, Western Power Distribution West Midlands 5.75% 16/04/2032 GBP8,358,000 10, Whitbread 3.375% 16/10/2025 GBP6,207,000 6, GOVERNMENT BONDS (3.39%*) 46, States of Guernsey 3.375% 12/12/2046 GBP8,715,000 8, UK Treasury 1.75% 07/09/2022 GBP6,500,000 6, UK Treasury 3.25% 22/01/2044 GBP5,950,000 6, UK Treasury 4.25% 07/12/2055 GBP16,646,000 24, MORTGAGE-BACKED SECURITIES (3.68%*) 167, Aire Valley Mortgages (FRN) Class 2A % 20/09/2066 GBP3,440,042 3, Aire Valley Mortgages (FRN) Class 2A % 20/09/2066 GBP1,993,683 1, Aire Valley Mortgages (FRN) Class 2A % 20/09/2066 GBP1,993,683 1, Aire Valley Mortgages (FRN) Class 3A % 20/09/2066 GBP11,726,155 11, Alba (FRN) % 25/11/2042 GBP10,236,439 9, Alba (FRN) % 15/12/2038 GBP7,651,400 6, Arkle Master Issuer 4.681% 17/05/2060 GBP5,471,000 5, Canary Wharf Finance II 6.455% 22/10/2033 GBP4,883,180 6, Delamare Finance % 19/02/2029 GBP3,530,000 3, Equity Release Funding No % 26/04/2033 GBP2,652,000 3, Fosse Master Issuer 4.635% 18/10/2054 GBP12,080,000 12, Gemgarto (FRN) % 16/02/2047 GBP4,869,203 4, Land Securities Capital Markets 5.376% 30/09/2029 GBP10,097,000 12, Longstone Finance 4.791% 19/04/2036 GBP7,738,792 8, Paragon Mortgages NO 23 (FRN) % 15/01/2043 GBP16,642,000 16, Permanent Master Issuer 4.805% 15/07/2042 GBP7,777,000 8, Precise Mortgage Funding (FRN) % 12/03/2048 GBP4,292,263 4,

16 Corporate Bond Fund Portfolio Statement Market Value (continued) Total Net Assets % Holdings or Nominal Values Precise Mortgage Funding B (FRN) % 12/06/2048 GBP13,200,000 13, Precise Mortgage Funding No 1 (FRN) % 12/03/2047 GBP4,008,702 3, Sanctuary Housing Association 8.375% 01/09/2031 GBP2,388,282 3, Tesco Property Finance % 13/07/2039 GBP4,512,810 5, Tesco Property Finance % 13/10/2040 GBP4,947,663 4, Tesco Property Finance % 13/10/2041 GBP5,440,939 5, THRONES (FRN) % 15/11/2049 GBP11,063,221 10, DERIVATIVES (-0.02%*) (181) - Futures Long Gilt Futures December (181) - Portfolio of investments^ 3,612, Net other assets 95, Total net assets 3,708, Any derivative contracts were traded on an eligible derivatives exchange. Stocks shown as FRNs represent Floating Rate Notes - debt instruments that pay a floating rate of interest, usually based on an accepted market benchmark rate such as LIBOR. *Comparative figures shown in brackets relate to 28 February ^Including derivative liabilities. This investment is a related party. Summary of portfolio by credit ratings Rating block AAA 147, AA+ 122, AA 82, AA- 102, A+ 314, A 255, A- 572, BBB+ 639, BBB 879, BBB- 259, BB+ 112, BB 61, BB- 41, B+ 22, Total bonds 3,612, Other 95, Total net assets 3,708, The credit ratings used in the above table have been supplied by Standard & Poor s, Moody s or Fitch Ratings. 14

17 Corporate Bond Fund Material Portfolio Changes for the six month period ended 31 August 2015 (unaudited) Major purchases Cost Major sales Proceeds Long Gilt Futures September ,855 Long Gilt Futures September ,981 Long Gilt Futures June ,029 UK Treasury 3.25% 22/01/ ,815 Prudential 5% 20/07/ ,631 UK Treasury 5% 07/03/ ,630 Long Gilt Futures December ,753 UK Treasury 4.25% 07/12/ ,094 Apple 3.6% 31/07/ ,548 British Telecommunications 6.375% 23/06/ ,998 APT Pipelines 3.5% 22/03/ ,849 Barclays SLCSM Funding 6.14% Perpetual 20,771 Paragon Mortgages NO 23 (FRN) % 15/01/ ,642 Sovereign Housing Capital 4.768% 01/06/ ,730 SSE 8.375% 20/11/ ,950 UK Treasury 6% 07/12/ ,981 InterContinental Hotels 3.75% 14/08/ ,844 Lloyds Bank % 29/05/ ,093 Verizon Communications 4.75% 17/02/ ,394 BP Capital Markets 4.325% 10/12/ ,649 Purchases and sales of Futures have been included at the value of their exposure. 15

18 Corporate Bond Fund Performance Record Net Asset Value and Ongoing Charges Figure Share Class A Accumulation 28/02/13 Accumulation 28/02/14 Accumulation 28/02/15 Accumulation 31/08/15 Share Class A Income 28/02/13 Income 28/02/14 Income 28/02/15 Income 31/08/15 Share Class B Accumulation 28/02/13 Accumulation 28/02/14 Accumulation 28/02/15 Accumulation 31/08/15 Share Class B Income 28/02/13 Income 28/02/14 Income 28/02/15 Income 31/08/15 Share Class G Accumulation 28/02/13 Accumulation 28/02/14 Accumulation 28/02/15 Accumulation 31/08/15 Share Class G Income 28/02/13 Income 28/02/14 Income 28/02/15 Income 31/08/15 Share Class W Accumulation (Gross) 28/02/15 Accumulation (Gross) 31/08/15 Net Asset Value of share class ( ) 3,386,500,086 1,333,058, ,898,474,833 1,496,626, ,861, ,150, ,859, ,450, ,267, ,650, ,958, ,167, ,441, ,853, ,451, ,613, ,778,456 67,207,534 68,690,684 63,721, , , , ,984 3,136,560,796 2,869,761,443 28,109,903 25,266,803 23,344,803 22,482,403 88,224,692 75,157, ,053,188 68,495, ,560,194 62,589, ,295,370 59,813, , , , ,611 Shares in issue 133, , , ,200 2,795,780,794 2,636,270,794 Net Asset Value per share (p) , , , , *Ongoing Charges Figure (%) *The Ongoing Charges Figure (OCF) is the total expenses paid by each share class in the six month period, annualised, against its average net asset value. It excludes the cost of buying or selling assets for the Fund (unless these assets are shares of another fund). The OCF can fluctuate as underlying costs change

19 Corporate Bond Fund Statement of Total Return for the six month period ended 31 August 2015 (unaudited) 01/03/15 to 31/08/15 01/03/14 to 31/08/14 Income Net capital (losses)/gains (199,159) 119,359 Revenue 85, ,923 Expenses (6,573) (9,773) Interest payable and similar charges (4) - Net revenue before taxation 79,102 94,150 Taxation - - Net revenue after taxation 79,102 94,150 Total return before distributions (120,057) 213,509 Distributions (79,101) (93,847) Change in net assets attributable to shareholders from investment activities (199,158) 119,662 Statement of Change in Net Assets Attributable to Shareholders for the six month period ended 31 August 2015 (unaudited) Opening net assets attributable to shareholders Assets transferred from Pension and Life Funds 10 April 2014* Assets transferred to Scottish Widows Corporate Bond Tracker Fund 12 June 2014** Assets transferred to Scottish Widows Corporate Bond Tracker Fund 13 June 2014** Amounts receivable on creation of shares Less: Amounts payable on cancellation of shares Dilution adjustment Change in net assets attributable to shareholders from investment activities Retained distribution on accumulation shares Unclaimed distributions Closing net assets attributable to shareholders **Relating to the transfer of assets to a related party. 01/03/15 to 31/08/15 01/03/14 to 31/08/14 4,072,798 4,529, ,746 - (998,028) - (953,479) 78, ,372 (316,028) (207,286) (237,769) 66, (199,158) 119,662 72,577 82, ,708,487 3,640,362 *Relating to the transfer of assets from related parties: CMIG Unit Linked Life Gilt & Fixed Interest Fund, CMIG Unit Linked Life Distribution Gilt & Fixed Interest Fund and CM Gilt & Fixed Interest Pension Fund. Comparative information is provided for the Statement of Change in Net Assets Attributable to Shareholders. Since this information is for the prior interim period, the net assets at the end of that period do not correspond to the net assets at the start of the current period. 17

20 Corporate Bond Fund Balance Sheet Assets Fixed assets Investments Current assets Debtors Cash and bank balances Total assets Liabilities Investment liabilities Creditors Distribution payable* Other creditors* Total liabilities Net assets attributable to shareholders 31/08/15 28/02/15 3,612,860 3,975,698 96, ,021 22,286 33,374 3,731,325 4,138,093 (181) (650) (2,940) (3,002) (19,717) (61,643) (22,838) (65,295) 3,708,487 4,072,798 *Prior period figures have been updated as a result of the 2014 IMA SORP. 18

21 Corporate Bond Fund Distribution Tables for the six month period ended 31 August 2015 (unaudited) Distribution in pence per share Group 1 First interim Shares purchased prior to 1 March 2015 Second interim Shares purchased prior to 1 April 2015 Third interim Shares purchased prior to 1 May 2015 Fourth interim Shares purchased prior to 1 June 2015 Fifth interim Shares purchased prior to 1 July 2015 Sixth interim Shares purchased prior to 1 August 2015 Group 2 First interim Shares purchased on or between 1 March 2015 and 31 March 2015 Second interim Shares purchased on or between 1 April 2015 and 30 April 2015 Third interim Shares purchased on or between 1 May 2015 and 31 May 2015 Fourth interim Shares purchased on or between 1 June 2015 and 30 June 2015 Fifth interim Shares purchased on or between 1 July 2015 and 31 July 2015 Sixth interim Shares purchased on or between 1 August 2015 and 31 August 2015 Share Class A - Accumulation Distributions paid/payable to 15/10/2015 Distributions paid to 15/10/2014 Gross revenue Income tax Net revenue Equalisation Group 1 (p) (p) (p) (p) (p) (p) First interim Second interim Third interim Fourth interim Fifth interim Sixth interim Group 2 (p) (p) (p) (p) (p) (p) First interim Second interim Third interim Fourth interim Fifth interim Sixth interim Share Class A - Income Distributions paid/payable to 15/10/2015 Distributions paid to 15/10/2014 Gross revenue Income tax Net revenue Equalisation Group 1 (p) (p) (p) (p) (p) (p) First interim Second interim Third interim Fourth interim Fifth interim Sixth interim Group 2 (p) (p) (p) (p) (p) (p) First interim Second interim Third interim Fourth interim Fifth interim Sixth interim

22 Corporate Bond Fund Distribution Tables for the six month period ended 31 August 2015 (unaudited) (continued) Share Class B - Accumulation Distributions paid/payable to 15/10/2015 Distributions paid to 15/10/2014 Gross revenue Income tax Net revenue Equalisation Group 1 (p) (p) (p) (p) (p) (p) First interim Second interim Third interim Fourth interim Fifth interim Sixth interim Group 2 (p) (p) (p) (p) (p) (p) First interim Second interim Third interim Fourth interim Fifth interim Sixth interim Share Class B - Income Distributions paid/payable to 15/10/2015 Distributions paid to 15/10/2014 Gross revenue Income tax Net revenue Equalisation Group 1 (p) (p) (p) (p) (p) (p) First interim Second interim Third interim Fourth interim Fifth interim Sixth interim Group 2 (p) (p) (p) (p) (p) (p) First interim Second interim Third interim Fourth interim Fifth interim Sixth interim

23 Corporate Bond Fund Distribution Tables for the six month period ended 31 August 2015 (unaudited) (continued) Share Class G - Accumulation Distributions paid/payable to 15/10/2015 Distributions paid to 15/10/2014 Gross revenue Income tax Net revenue Equalisation Group 1 (p) (p) (p) (p) (p) (p) First interim Second interim Third interim Fourth interim Fifth interim Sixth interim Group 2 (p) (p) (p) (p) (p) (p) First interim Second interim Third interim Fourth interim Fifth interim Sixth interim Share Class G - Income Distributions paid/payable to 15/10/2015 Distributions paid to 15/10/2014 Gross revenue Income tax Net revenue Equalisation Group 1 (p) (p) (p) (p) (p) (p) First interim Second interim Third interim Fourth interim Fifth interim Sixth interim Group 2 (p) (p) (p) (p) (p) (p) First interim Second interim Third interim Fourth interim Fifth interim Sixth interim