RBS Stakeholder Investment Fund ICVC Annual Short Report for the year ended 31 March 2015
Table of Contents Report of the Authorised Corporate Director 1 Economic and Market Overview 2 Statistics 3 Major Holdings and Portfolio Categories 4 Investor Information 5
Report of the Authorised Corporate Director The Company RBS Stakeholder Investment Fund ICVC ( the Company or the Fund ) is an Open Ended Investment Company ( OEIC ) with variable share capital incorporated in England and Wales on 24 December 2004. The property of the Company ( Scheme Property ) is entrusted to JP Morgan Europe Limited ( the Depositary ) for safekeeping. The shareholders are not liable for the debts of the Company. The investment policy of the Company is to invest the Scheme Property in a mixed portfolio of transferable securities (UK equities and bonds), derivatives (for the purposes of efficient portfolio management), deposits and in units in collective investment schemes, as permitted by the Collective Investment Schemes Sourcebook ( the Regulations ) published by the Financial Conduct Authority. The Company is classed as a UCITS (Undertakings for Collective Investment in Transferable Securities) Scheme for the purposes of the regulations and has one Sub-Fund. Its investment objective is to provide long term capital growth and income. Authorised Status From 24 December 2004, the Company was authorised as an Open-Ended Investment Company under Regulation 12 of the Open-Ended Investment Companies Regulations 2001. The Report We are pleased to present this report, for the year ended 31 March 2015, as required by the Regulations. Information for the Fund has been included on the following pages along with a review of the performance of the Fund during the year. We hope that you find our review useful and informative. We believe this short report provides a clear and concise overview for our customers. We have also prepared the long form financial statements, which contain additional information including the financial statements and lists of investments held. If you would like to receive long form financial statements please call us on 0345 300 2585 (calls may be recorded for training and monitoring purposes) or write to us at RBS Collective Investment Funds Limited, PO Box 9908, Chelmsford, Essex CM99 2AF. Depositary The Depositary, JP Morgan Europe Limited, provides its services under an agreement dated 15 July 2014 between the Company, the ACD and the Depositary which took effect on 21 July 2014. The agreement was novated from the previous Depositary, JP Morgan Trustee and Depositary Company Limited, another company in the JP Morgan Chase Bank group. Michael Larkin for and on behalf of RBS Collective Investment Funds Limited Authorised Corporate Director 10 June 2015 1
Economic and Market Overview General Information Fund Size: 761.9m Fund Launch: 6 April 2005 Benchmark IA* Mixed Investment 20% 60% Shares Investment Objective To provide long term capital growth and income. Investment Policy The Fund s investment policy is to invest in a mixed portfolio of transferable securities (UK equities and bonds), derivatives (for the purpose of efficient portfolio management), deposits and in units in collective investment schemes. Performance The RBS Stakeholder Fund (A share class) returned 8.30 per cent over the twelve months to the end of March 2015. Its peer group, the Investment Association Mixed Investment 20-60% Shares sector, delivered an average return of 8.52 per cent. Portfolio Summary Gilts rallied sharply as slumping oil prices helped push UK inflation to a record low, and as global government bond yields plunged after the European Central Bank said it would implement quantitative easing to boost economic growth. UK government bonds, as measured by the FTA Gilts All Stocks Index, returned 13.9 per cent. Although a warning by the Bank of England (BoE), that interest rates could rise sooner than markets expected, brought a steady decline in yields to an abrupt end in February, markets recovered in March after the government said it will need to sell less debt than expected in the coming year. While annual inflation fell to zero per cent in February and the central bank warned it could temporarily turn negative, it also said the threat of deflation was not as severe as in the euro zone and that inflation would return to its two-per-cent target within two years. UK shares rose as demand for riskier assets was buoyed by extremely loose monetary policy and a steady improvement in both global and domestic economic data. However, steep falls in commodity prices meant the UK market, which is laden with the shares of a large number of the world s biggest commodity producers, underperformed most international peers. The FTSE All-Share Index returned 6.6 per cent. Shares fell sharply in the second half of 2014, as a clutch of companies warned profits were being hurt by a stronger pound and on increased concern about the impact of weak economic growth in the euro zone, Britain s main trading partner. However, the European Central Bank s decision to finally implement quantitative easing boosted confidence. Healthcare equipment, household goods and media were among the best performing sectors, while shares in food retailers, miners, and oil & gas companies fell sharply. Outlook We expect UK shares to climb further over the medium term aided by an improving domestic economy. However, we are more cautious in the short term. Shares are, for now, largely brushing aside concerns over the result of May s general election, supported by encouraging economic data and low interest rates. However, both the stock and gilt markets could turn choppier as the vote nears. Furthermore, conditions could remain volatile as investors focus on the prospect of interest rates starting to rise in both the US and UK. Source: Fund performance figures Lipper Hindsight, mid to mid basis with net income reinvested in GBP, with no initial charges applied. Important Information Unless stated otherwise, information has been sourced by Aviva Investors Global Services Limited. Except where stated as otherwise, any future returns or opinions expressed are those of Aviva Investors Global Services Limited (Aviva Investors). They should not be viewed as a guarantee of a return from an investment in the funds nor as advice of any nature. The content of the commentary should not be viewed as a recommendation to invest nor buy or sell any securities and should not to be relied on by anyone else for the purpose of making investment decisions. Past performance is not a guide to the future. The value of a fund and the income from it may go down as well as up, and the investor may not get back the original amount invested. Aviva Investors Global Services Limited, registered in England No. 1151805. Registered Office: No. 1 Poultry, London EC2R 8EJ. Authorised and regulated by the Financial Conduct Authority and a member of The Investment Association (formerly the IMA). Contact us at Aviva Investors Global Services Limited, No. 1 Poultry, London EC2R 8EJ. Statutory Performance IA* Mixed Investment Stakeholder Fund 20%-60% Six month period end % Shares**% 30 September 2012 2.70 1.94 31 March 2013 7.19 8.04 30 September 2013 (0.39) 0.47 31 March 2014 2.20 3.06 30 September 2014 2.03 1.94 31 March 2015 6.15 6.46 All figures are in sterling terms Source: Lipper Hindsight * IA (formerly the IMA) is The Investment Association, the industry s trade body. ** Represents the average performance of all Funds within the same sector. Past performance is not a guide to future performance. The value of shares may fall as well as rise and is not guaranteed. The performance shown is net of tax and charges taken from the Fund. It does not take account of any additional product charges. 2
Statistics Synthetic Risk and Reward Indicator Lower risk Typically lower rewards Higher risk Typically higher rewards 1 2 3 4 5 6 7 These ratings indicate how this Fund may perform and the risk of losing some or all of your capital. Generally the potential for higher gains also means a higher risk of losses. The lowest rating does not mean a risk free investment. This Fund is ranked at 4 because funds of this type have experienced average rises and falls in value in the past. The risk and reward category for this Fund is not guaranteed to remain unchanged, and may shift over time. Historical data, such as is used for calculating the rating, may not be a reliable indication of the future risk profile of this Fund. More information on the Synthetic Risk and Reward Indicator is contained in the Risk and Reward Profile of the Key Investor Information Document (KIID), which is available from the ACD on request. Full information on the risks applicable to the Fund is detailed in the Prospectus. Ongoing Charge 31/03/2015 Share Class % Accumulation Shares 1.50 The charges you pay are used to pay the costs of running this Fund, including the costs of marketing and distributing it. These charges reduce the growth of your investment. The Ongoing Charge figure is based on the expenses for the year ending 31/03/2015, and this figure may vary from year to year. The Ongoing Charge figure shown in the KIID may be calculated at a different point in time and therefore there could be immaterial differences between the two. Yield 31/03/2015 31/03/2014 Share Class % % Accumulation Shares 1.44 2.33 Distribution XD Dates Annual Interim Accumulation Shares 31 March N/A Distribution Payment Dates Annual Interim Accumulation Shares 31 May N/A Period End Period End 31 March 31 March 2015 2014 Accumulation Shares (p) (p) Final distribution 31 March 2.4626 2.3468 Total distribution for the year 2.4626 2.3468 Net Asset Value History by Share Class Accumulation Shares Net Asset Pence Shares as at Value ( ) per share in issue 31/03/13 628,820,947 154.6 406,745,475 31/03/14 672,890,998 157.8 426,478,240 31/03/15 761,931,035 170.9 445,743,407 Share Price Range Calendar Year Highest Price Lowest Price Accumulation Shares (p) (p) 2010 133.5 116.9 2011 137.4 126.0 2012 147.1 132.9 2013 159.6 147.1 2014 165.6 155.3 2015 (to 31 March) 174.3 163.9 3
Major Holdings and Portfolio Categories Major Holdings 31/03/2015 31/03/2014* Holding % % HSBC 2.81 2.88 BP 2.05 2.24 Royal Dutch Shell A 2.01 2.13 GlaxoSmithKline 1.94 1.95 British American Tobacco 1.67 1.59 Vodafone 1.50 1.47 AstraZeneca 1.50 1.22 UK Treasury 4.25% 07/6/2032 1.49 1.48 UK Treasury 5% 07/3/2025 1.47 1.55 UK Treasury 4% 07/3/2022 1.40 1.45 *Comparatives shown for equivalents only, does not represent top ten for year ending 31 March 2014. Portfolio Category 31/03/2015 31/03/2014 Investments % % United Kingdom Equities 54.77 51.24 UK Government Stocks 41.32 41.49 Derivatives 0.02 Cash & Others 3.89 7.27 Total Net Assets 100.00 100.00 4
Investor Information Authorised Corporate Director and Registered Office RBS Collective Investment Funds Limited 24-25 St Andrew Square, Edinburgh EH2 1AF Client Enquiries: 0345 300 2585 Dealing: 0345 300 2585 Directors of RBS Collective Investment Funds Limited Ian McLaughlin Michael Larkin John Young Gayle Schumacher (Appointed 1 May 2014) Depositary JP Morgan Europe Limited 25 Bank Street, Canary Wharf, London E14 5JP Investment Adviser Aviva Investor Global Services Limited No 1 Poultry, London EC2R 8EJ Registrar and Administration Aviva Life Services UK Limited who sub-delegates this responsibility to International Financial Data Services (UK) Limited at: PO Box 9908, Chelmsford, Essex, CM99 2AF Child Trust Fund Administrator The Bank of New York Mellon (International) Limited Bank of New York Mellon Financial Centre 160 Queen Victoria Street London EC4V 4LA Junior ISA Administrator Capita Life & Pensions Regulated Services Limited 71 Victoria Street Westminster London SW1H 0XA Auditor Deloitte LLP Lomond House 9 George Square Glasgow, G2 1QQ Authorisation RBS Collective Investment Funds Limited is authorised and regulated by the Financial Conduct Authority. RBS Collective Investment Funds Limited. Registered in Scotland No SC46694. Registered Office: 24 25 St Andrew Square, Edinburgh EH2 1AF 5
RBS Collective Investment Funds Limited Registered in Scotland No SC46694 Registered Office: 24 25 St Andrew Square, Edinburgh, EH2 1AF Authorised and regulated by the Financial Conduct Authority 6 99696_v6