INVESTMENT GRADE CORPORATE BOND UNIT TRUST

INVESTMENT GRADE CORPORATE BOND UNIT TRUST FOR THE PERIOD ENDED 31 MARCH 2014

Manager St. James's Place Unit Trust Group Limited PO Box 9034, Chelmsford, CM99 2XA United Kingdom Freephone: 0800 027 1031 (Authorised and regulated by the Financial Conduct Authority) Directors of the Manager D. C. Bellamy A. M. Croft I. S. Gascoigne D. J. Lamb Secretary of the Manager St. James's Place Administration Limited Investment Adviser Loomis, Sayles & Company L.P. One Financial Center Boston, MA 02111 United States of America (Authorised and regulated by the Securities and Exchange Commission) Trustee BNY Mellon Trust & Depositary (UK) Limited 160 Queen Victoria Street London, EC4V 4LA United Kingdom (Authorised and regulated by the Financial Conduct Authority) Registrar International Financial Data Services (UK) Limited IFDS House St. Nicholas Lane Basildon, SS15 5FS United Kingdom (Authorised and regulated by the Financial Conduct Authority) Auditor PricewaterhouseCoopers LLP Atria One 144 Morrison Street Edinburgh, EH3 8EX United Kingdom Prospectus and Manager's Reports Copies of the up to date Prospectus (Scheme Particulars) and latest Manager's Report and Financial Statements for the range of St. James's Place Unit Trusts can be requested from a member of the St. James's Place Partnership or, at any time during normal business hours, from the Administration Centre at PO Box 9034, Chelmsford CM99 2XA. Freephone: 0800 027 1031 1

Report of the Manager During the period under review, 1 October 2013 to 31 March 2014, the St. James's Place Investment Grade Corporate Bond Unit Trust Income unit offer price fell by 0.5% from 132.1p to 131.5p and the Accumulation unit offer price (in which revenue is reflected in the price rather than distributed) rose by 0.8% from 156.5p to 157.7p. On the 28 May 2014, the latest available date before the printing of this report, the Income unit offer price was 132.5p and the Accumulation unit offer price was 159.8p. The estimated yield was 3.27%. The Trust's Performance The performance of the Trust since its launch in April 2009 and over the period under review is shown below, together with figures for the most commonly quoted indices in comparable markets where the major proportion of the Trust has been invested. St. James's Place Investment Grade Corporate Bond Unit Trust Income units (offer to offer) Accumulation units (offer to offer) Indices - actual Merrill Lynch Sterling Non-Gilts All Stocks Index Source: Lipper for Fund returns 06/04/09 to 30/09/13 to 31/03/14 31/03/14 % change % change +31.5-0.5 +57.7 +0.8 +59.1 +2.4 REMEMBER THAT THE PRICE OF UNITS AND REVENUE FROM THEM MAY GO DOWN AS WELL AS UP. PLEASE BE AWARE THAT PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE PERFORMANCE. Investment Adviser's Comments For the six months ending 31 March 2014, the portfolio has benefited from yield-curve positioning, although security selections have combined to hinder performance relative to the Merrill Lynch Sterling Non-Gilts, 25% FINCL Cap, 1-15yrs Index ( the index ). The UK investment-grade credit market continued to perform well relative to gilts. The market has been supported by an improving economic situation in the UK and ongoing banking sector repair. Overall, there is steady economic recovery underway, highlighted by manufacturing and unemployment, which has been on the decline. Consumption remains a key growth driver, with capital expenditure showing signs of improvement as well. Security selections have been detrimental to relative performance. Choices within the insurance, services, banking and utility sectors have weighed particularly heavily on results when compared to the index. Issuers tied to water services underperformed in a tough political and regulatory environment for the business segment. However, these losses were partially mitigated by preferences within the technology & electronics, real estate and communications sectors. More specifically, names in the cable and telecom industries added value, including sterling-issued bonds by Comcast, Telefonica, and Telecom Italia. Sector-allocation decisions have had a mixed impact on relative performance. Underweight exposure to government-related issuers (supranational organizations and government agencies) contributed positively to relative performance. Value added was offset by overweight exposure to the automotive, capital goods, communications, consumer goods and energy industries. We continue to prefer corporate bonds over government-related issues as outperformance would be expected if the global economy gains traction and private sector balance sheets remain healthy. Overall, portfolio duration remains closely aligned with that of the index, generally neutral with a slight bias towards the longer end of the curve. UK yields are expected to rise gradually over the course of 2014, as growth and inflation paths take hold while easier monetary policy partially subsides. The Bank of England may be one of the first developed central banks to implement a rate hike, but this is not being priced in until 2015 as policymakers seek to support real income growth and household balance sheets. Loomis, Sayles & Company L.P. 08 April 2014 2

Performance Record The St. James's Place Investment Grade Corporate Bond Unit Trust was first offered on 6 April 2009 at an offer price of 100.00p per unit. Unit Price History and Record of Net Distributions Paid/Payable The record of net distributions paid/payable per unit is shown below: Income Calendar year 2009 2010 2011 2012 2013 2014* Accumulation Calendar year 2009 2010 2011 2012 2013 2014* Net revenue distributed Highest Lowest per 1,000 Invested Offer Bid per unit at 06/04/09 p p p 129.5 96.39 4.074 40.74 135.0 122.50 6.264 62.64 133.1 118.40 5.631 56.31 135.0 120.10 3.560 35.60 137.7 123.50 3.111 31.11 132.5 123.10 0.779 7.79 Net revenue distributed Highest Lowest per 1,000 Invested Offer Bid per unit at 06/04/09 p p p 132.3 96.39 4.122 41.22 144.6 126.60 6.601 66.01 146.3 132.70 6.223 62.23 156.9 136.50 4.091 40.91 162.1 145.90 3.672 36.72 158.8 147.50 0.935 9.35 Net Asset Values Income Year ended September 2011 2012 2013 2014* Accumulation Year ended September 2011 2012 2013 2014* Market NAV NAV Units in Issue of Class per Unit '000 p 27,899,439 32,881 117.86 44,480,194 56,205 126.36 53,324,164 66,324 124.38 57,869,950 71,660 123.83 Market NAV NAV Units in Issue of Class per Unit '000 p 303,632,512 402,508 132.56 453,552,931 666,299 146.91 566,376,105 839,211 148.17 589,316,618 880,208 149.36 Ongoing Charges Figure The Ongoing Charges Figure for the period ended 31 March 2014 was 1.30% (30 September 2013: 1.30%). The Ongoing Charges Figure ('OCF') is the total expenses paid by the Trust in the period, annualised, against its average net asset value. It excludes the cost of buying or selling assets for the Trust (unless these assets are shares of another trust). The OCF can fluctuate as underlying costs change. * To 31 March 2014 3

Performance Record (continued) Risk and Reward Profile The synthetic risk and reward indicator for the St. James s Place Investment Grade Corporate Bond Unit Trust, as disclosed in its most recent Key Investor Information Document (KIID), is a 4. It was calculated using performance data up to 3 February 2014. The risk category is recalculated weekly and for the last thirteen weeks of the period under review the risk category changed from a category 4 to a category 3. Please note that if the risk category consistently remains as a category 3 for a four month period, the KIID will be amended from a category 4 accordingly. 4

Investment Assets as at 31 March 2014 (unaudited) Security Holdings Market Value 000 % of Net Assets STERLING DENOMINATED BONDS (97.42%) 923,663 97.04 Allianz Finance II 4.5% 13/03/2043 3,400,000 3,428 0.36 Allied Domecq Financial Services 6.625% 12/06/2014 2,400,000 2,424 0.25 American International 5% 26/04/2023 7,400,000 8,058 0.85 Anglian Water Osprey Financing 7% 31/01/2018 2,700,000 2,886 0.30 Anheuser-Busch InBev 6.5% 23/06/2017 13,104,000 14,962 1.57 Anheuser-Busch InBev 4% 24/09/2025 1,000,000 1,006 0.11 Asciano Finance 5% 19/09/2023 3,500,000 3,588 0.38 AT&T 5.875% 28/04/2017 7,000,000 7,754 0.81 Aviva 6.625% 03/06/2041 9,200,000 10,160 1.07 AXA 7.125% 15/12/2020 5,265,000 6,200 0.65 AXA 5.625% 16/01/2054 2,595,000 2,576 0.27 BAE Systems 4.125% 08/06/2022 9,900,000 10,068 1.06 Bank of America 5.5% 22/11/2021 8,100,000 8,822 0.93 Bank of Scotland 10.5% 16/02/2018 9,500,000 11,683 1.23 Bank of Scotland 6.375% 16/08/2019 2,680,000 2,963 0.31 Barclays Bank 5.75% 14/09/2026 21,414,000 22,828 2.40 BG Energy Capital 5.125% 07/12/2017 9,600,000 10,601 1.11 BHP Billiton Finance 3.25% 25/09/2024 11,100,000 10,503 1.10 BMW Finance 3.375% 14/12/2018 9,300,000 9,718 1.02 BNP Paribas 5.75% 24/01/2022 4,270,000 4,705 0.49 Bouygues 5.5% 06/10/2026 4,150,000 4,463 0.47 BP Capital Markets 4.325% 10/12/2018 9,500,000 10,288 1.08 British American Tobacco 5.5% 15/09/2016 9,600,000 10,490 1.10 British Sky Broadcasting 6% 21/05/2027 5,800,000 6,684 0.70 British Telecommunications 6.625% 23/06/2017 10,300,000 11,694 1.23 BSKYB Finance UK 5.75% 20/10/2017 3,500,000 3,907 0.41 BUPA Finance 5% 25/04/2023 5,400,000 5,407 0.57 Carlsberg Breweries 7.25% 28/11/2016 11,500,000 13,045 1.37 Centrica 4.375% 13/03/2029 15,605,000 15,369 1.61 Citigroup 5.5% 18/11/2015 2,500,000 2,662 0.28 Citigroup 7.625% 03/04/2018 5,140,000 6,131 0.64 Comcast 5.5% 23/11/2029 3,300,000 3,720 0.39 Commonwealth Bank of Australia 3% 04/09/2026 3,000,000 2,799 0.29 Co-Operative Bank 4.75% 11/11/2021 3,735,000 3,971 0.42 Daimler International Finance 3.5% 06/06/2019 15,839,000 16,540 1.74 Deutsche Bahn Finance 1.375% 30/10/2017 15,118,000 14,973 1.57 Deutsche Bahn Finance 3.125% 24/07/2026 10,470,000 10,097 1.06 Deutsche Telekom International Finance 6.5% 17,860,000 21,240 2.23 08/04/2022 Direct Line 9.25% 27/04/2042 2,900,000 3,665 0.39 Eastern Power Networks 4.75% 30/09/2021 10,000,000 10,765 1.13 Enel 6.25% 20/06/2019 2,600,000 2,945 0.31 Enel Finance International 5.625% 14/08/2024 8,000,000 8,631 0.91 ENW Finance 5.875% 21/06/2021 3,268,000 3,431 0.36 European Investment Bank 4.375% 08/07/2015 12,000,000 12,541 1.32 European Investment Bank 4.75% 15/10/2018 9,300,000 10,373 1.09 Experian Finance 3.5% 15/10/2021 4,050,000 4,050 0.43 FCE Bank 4.825% 15/02/2017 3,800,000 4,065 0.43 FCE Bank 3.25% 19/11/2020 3,200,000 3,180 0.33 Finmeccanica Finance 8% 16/12/2019 1,400,000 1,611 0.17 Gatwick Funding 4.625% 27/03/2036 2,650,000 2,585 0.27 GDF Suez 6.125% 11/02/2021 7,600,000 8,978 0.94 GE Capital UK Funding 4.375% 31/07/2019 7,706,000 8,279 0.87 GE Capital UK Funding 4.125% 13/09/2023 2,500,000 2,592 0.27 Glencore Finance Europe 6% 03/04/2022 3,500,000 3,860 0.41 5

Investment Assets (continued) as at 31 March 2014 (unaudited) Security Holdings Market Value 000 % of Net Assets Goldman Sachs 6.125% 14/02/2017 1,400,000 1,552 0.16 Goldman Sachs 4.25% 29/01/2026 1,785,000 1,788 0.19 Hammerson 6% 23/02/2026 5,100,000 5,905 0.62 Health Care REIT 4.8% 20/11/2028 5,250,000 5,244 0.55 Heathrow Funding 5.225% 15/02/2025 4,700,000 5,146 0.54 Heathrow Funding 4.625% 31/10/2048 2,850,000 2,759 0.29 HJ Heinz Finance 6.25% 18/02/2030 4,033,000 4,078 0.43 Holcim GB Finance 8.75% 24/04/2017 4,000,000 4,756 0.50 HSBC Bank 5.375% 04/11/2030 11,800,000 12,307 1.29 Hutchison Whampoa Finance UK 5.625% 7,000,000 7,790 0.82 24/11/2017 Hutchison Whampoa Finance UK 5.625% 5,300,000 6,000 0.63 24/11/2026 Iberdrola Finanzas 7.375% 29/01/2024 3,800,000 4,664 0.49 Imperial Tobacco Finance 5.5% 22/11/2016 17,300,000 18,852 1.98 Imperial Tobacco Finance 4.875% 07/06/2032 2,400,000 2,393 0.25 Johnson & Johnson 5.5% 06/11/2024 4,300,000 5,117 0.54 JPMorgan Chase 3.5% 18/12/2026 8,200,000 7,845 0.82 KFW 5.55% 07/06/2021 16,800,000 20,001 2.10 Linde Finance 6.5% 29/01/2016 700,000 763 0.08 Linde Finance 5.875% 24/04/2023 4,300,000 5,102 0.54 Lloyds Bank 5.5% 25/09/2016 5,247,000 5,689 0.60 London Power Networks 5.125% 31/03/2023 13,895,000 15,087 1.58 Macquarie Bank 3.5% 18/12/2020 10,150,000 10,128 1.06 MetLife 5.375% 09/12/2024 5,300,000 5,988 0.63 Motability Operations 6.625% 10/12/2019 1,750,000 2,094 0.22 Motability Operations 5.375% 28/06/2022 2,500,000 2,833 0.30 Muenchener Rueckversicherungs 7.625% 21/06/2028 7,975,000 9,351 0.98 National Westminster Bank 6.5% 07/09/2021 3,000,000 3,277 0.34 Network Rail Infrastructure Finance 1% 07/12/2017 6,590,000 6,438 0.68 Network Rail Infrastructure Finance 4.625% 56,605,000 63,873 6.71 21/07/2020 Nordea Bank 2.125% 13/11/2019 4,500,000 4,365 0.46 Northern Gas Networks Finance 4.875% 30/06/2027 8,000,000 8,366 0.88 Northumbrian Water Finance 6% 11/10/2017 2,560,000 2,887 0.30 Orange 5% 12/05/2016 8,400,000 8,937 0.94 Pearson Funding One 6% 15/12/2015 6,200,000 6,655 0.70 Petrobras Global Finance 5.375% 01/10/2029 4,000,000 3,487 0.37 Porterbrook Rail Finance 4.625% 04/04/2029 3,500,000 3,486 0.37 Prudential 6.875% 20/01/2023 1,100,000 1,365 0.14 Rabobank Nederland 4% 10/09/2015 3,370,000 3,507 0.37 Rabobank Nederland 5.25% 14/09/2027 4,000,000 4,128 0.43 Reed Elsevier Investments 5.625% 20/10/2016 7,150,000 7,802 0.82 RL Finance Bonds No.2 6.125% 30/11/2043 2,200,000 2,221 0.23 Roche Finance Europe 5.375% 29/08/2023 5,039,000 5,899 0.62 Royal Bank of Scotland 6.625% 17/09/2018 2,000,000 2,323 0.24 Scottish Widows 5.5% 16/06/2023 2,000,000 2,037 0.22 Severn Trent Utilities Finance 3.625% 16/01/2026 9,530,000 9,078 0.95 SGSP Australia Assets 5.125% 11/02/2021 4,450,000 4,806 0.50 Siemens Financieringsmaatschappij 2.75% 9,400,000 8,478 0.89 10/09/2025 Southern Gas Networks 4.875% 21/12/2020 7,700,000 8,393 0.88 Southern Gas Networks 4.875% 21/03/2029 2,550,000 2,684 0.28 Southern Water Services Finance 4.5% 31/03/2038 7,300,000 7,186 0.75 Standard Chartered Bank 7.75% 03/04/2018 11,000,000 12,750 1.34 Svensk Exportkredit 1.875% 21/12/2018 20,000,000 19,794 2.08 Svenska Handelsbanken 3% 20/11/2020 3,000,000 3,010 0.32 6

Investment Assets (continued) as at 31 March 2014 (unaudited) Security Holdings Market Value 000 % of Net Assets Telecom Italia 5.875% 19/05/2023 10,200,000 10,354 1.09 Telefonica Emisiones 5.289% 09/12/2022 9,900,000 10,544 1.11 Total Capital 3.875% 14/12/2018 7,000,000 7,534 0.79 Transport for London 2.25% 09/08/2022 11,000,000 10,288 1.09 Unilever 2% 19/12/2018 4,000,000 3,992 0.42 United Utilities Water 5.375% 14/05/2018 4,700,000 5,203 0.55 Verizon Communications 4.75% 17/02/2034 8,350,000 8,332 0.88 Virgin Media Secured Finance 6% 15/04/2021 1,600,000 1,692 0.18 Virgin Media Secured Finance 5.5% 15/01/2025 4,800,000 4,827 0.51 Volkswagen Financial Services 1.25% 15/12/2016 7,990,000 7,934 0.83 Volkswagen Financial Services 2.625% 22/07/2019 6,860,000 6,876 0.72 Volkswagen Financial Services 2.75% 02/10/2020 9,000,000 8,908 0.94 Wells Fargo 3.5% 12/09/2029 1,600,000 1,490 0.16 Wessex Water Services Finance 4% 24/09/2021 7,232,000 7,440 0.78 Western Power Distribution West Midlands 3.875% 9,000,000 8,833 0.93 17/10/2024 Westfield UK & Europe Finance 4.25% 11/07/2022 7,000,000 7,569 0.80 WPP 6% 04/04/2017 10,300,000 11,419 1.20 NON EQUITY INVESTMENT INSTRUMENTS (0.24%) 8,165 0.86 St. James's Place Money Market Unit Trust L Acc 7,837,303 8,165 0.86 DERIVATIVES (-0.08%) (92) (0.01) Futures UK Long Gilt Futures June 2014 (340) (92) (0.01) Investment assets^ 931,736 97.89 Total other assets (net) 20,132 2.11 Net assets 951,868 100.00 Comparative figures shown in brackets relate to 30 September 2013. All investments are approved securities as defined in the Collective Investment Schemes sourcebook unless otherwise stated. Derivative contracts were traded on an eligible derivatives exchange. During the period under review the Manager decided to place some of the sterling cash held on deposit into the St. James s Place Money Market Unit Trust in order to spread risk across a number of institutions. The St. James s Place Money Market Unit Trust is highly liquid and is rated AAA by Standard & Poors. This investment is a related party. ^ Including investment liabilities of ( 91,800). Summary of Investment Assets by Credit Ratings Rating Block Investment grade 891,298 93.63 Speculative grade 28,879 3.04 Unrated 3,486 0.37 Total bonds 923,663 97.04 Other 28,205 2.96 Net assets 951,868 100.00 7

Material Portfolio Changes Cost Purchases 000 UK Long Gilt Futures March 2014 97,028 St. James's Place Money Market Unit Trust L Acc 94,151 UK Long Gilt Futures December 2013 61,639 Network Rail Infrastructure Finance 4.625% 21/07/2020 61,545 Svensk Exportkredit 1.875% 21/12/2018 19,890 Deutsche Telekom International Finance 6.5% 08/04/2022 16,541 Centrica 4.375% 13/03/2029 15,748 London Power Networks 5.125% 31/03/2023 15,193 Network Rail Infrastructure Finance 1% 07/12/2017 14,849 Macquarie Bank 3.5% 18/12/2020 10,113 Proceeds Sales 000 UK Long Gilt Futures March 2014 98,566 St. James's Place Money Market Unit Trust L Acc 88,194 Network Rail Infrastructure Finance 1% 07/12/2017 46,200 UK Long Gilt Futures June 2014 37,087 SSE 5% 01/10/2018 14,909 European Investment Bank 4.75% 15/10/2018 11,188 Tesco 5% 24/03/2023 10,923 Vodafone 5.375% 05/12/2017 10,917 Northumbrian Water Finance 6% 11/10/2017 9,375 Deutsche Telekom International Finance 4.875% 23/09/2014 9,090 This investment is a related party. 8

Statement of Total Return for the period 01 October 2013 to 31 March 2014 (unaudited) Income Net capital gains Revenue Expenses Finance costs: Interest Net revenue before taxation Taxation Net revenue after taxation Total return before distributions Finance costs: Distributions Change in net assets attributable to unitholders from investment activities 01/10/13 to 31/03/14 01/10/12 to 31/03/13 000 000 000 000 1,127 12,427 14,883 12,346 (6,013) (5,063) (1) (1) 8,869 7,282 - - 8,869 7,282 9,996 19,709 (14,460) (12,010) (4,464) 7,699 Statement of Change in Net Assets Attributable to Unitholders for the period 01 October 2013 to 31 March 2014 (unaudited) 01/10/13 to 31/03/14 01/10/12 to 31/03/13 000 000 000 000 Opening net assets attributable to unitholders 905,534 722,505 Movement due to creation and cancellation of units: Amounts receivable on creation of units 66,006 119,863 Amounts payable on cancellation of units (26,090) (11,580) 39,916 108,283 Dilution levy charged 30 - Change in net assets attributable to unitholders from investment activities (see above) (4,464) 7,699 Retained distribution on accumulation units 10,852 9,194 Closing net assets attributable to unitholders 951,868 847,681 Comparative information is provided for the Statement of Change in Net Assets Attributable to Unitholders. 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. The prices per unit as at 31 March 2014 (unaudited) were: Income units Accumulation units Bid Offer p p 125.0 131.5 149.9 157.7 9

Balance Sheet as at 31 March 2014 (unaudited) Assets Investment assets Debtors Cash and bank balances Total other assets Total assets 31/03/14 30/09/13 000 000 000 000 931,828 884,370 30,810 26,423 9,142 7,285 39,952 33,708 971,780 918,078 Liabilities Investment liabilities (92) (743) Creditors (18,939) (10,975) Distribution payable on income units (881) (826) Total other liabilities (19,820) (11,801) Total liabilities Net assets attributable to unitholders Accounting and Distribution policies for the period 01 October 2013 to 31 March 2014 (unaudited) Basis of accounting (19,912) (12,544) 951,868 905,534 The interim financial statements have been prepared on the same basis as the audited annual financial statements for the year ended 30 September 2013. They have been prepared under the historical cost basis, as modified by the revaluation of investments, and in accordance with the Statement of Recommended Practice (SORP) for Financial Statements of Authorised Funds issued by the Investment Management Association (IMA) in October 2010 (the IMA SORP 2010). Directors' Certificate This report is certified in accordance with the requirements of the rules in the Financial Conduct Authority's Collective Investment Schemes Sourcebook. Directors A. M. Croft D. J. Lamb London 29 May 2014 10

Distribution Tables Distributions in pence per unit Group 1 First interim Units purchased prior to 1 October 2013 Second interim Units purchased prior to 1 January 2014 Group 2 First interim Units purchased on or after 1 October 2013 to 31 December 2013 Second interim Units purchased on or after 1 January 2014 to 31 March 2014 Income Gross revenue Income tax Net revenue Equalisation Distributions paid to/ payable 31/07/14 Distributions paid to 31/07/13 Group 1 (p) (p) (p) (p) (p) (p) First interim 0.969 0.194 0.775-0.775 0.776 Second interim 0.974 0.195 0.779-0.779 0.759 Group 2 (p) (p) (p) (p) (p) (p) First interim 0.479 0.096 0.383 0.392 0.775 0.776 Second interim 0.433 0.087 0.346 0.433 0.779 0.759 Accumulation Gross revenue Income tax Net revenue Equalisation Distributions paid to/ payable 31/07/14 Distributions paid to 31/07/13 Group 1 (p) (p) (p) (p) (p) (p) First interim 1.154 0.231 0.923-0.923 0.902 Second interim 1.168 0.233 0.935-0.935 0.888 Group 2 (p) (p) (p) (p) (p) (p) First interim 0.570 0.114 0.456 0.467 0.923 0.902 Second interim 0.507 0.101 0.406 0.529 0.935 0.888 11

General Information The Trust St. James's Place Investment Grade Corporate Bond Unit Trust is an authorised Unit Trust scheme under section 243 of the Financial Services and Markets Act (2000) and is constituted by a Trust Deed dated 2 April 2009. The Unit Trust is subject to the rules of the Financial Conduct Authority's Collective Investment Scheme Sourcebook and is classified as a UCITS Scheme. The Trust Manager The Manager of the Trust is St. James's Place Unit Trust Group Limited which is a member of the IMA and is authorised and regulated by the Financial Conduct Authority. Investment Objectives The investment objective of the Scheme is to provide an optimum balance of income generation and capital appreciation. To achieve this, the Scheme will invest predominantly in a portfolio of investment grade* UK and EC company debt securities. The Scheme is also permitted to invest in other asset classes permitted for UCITS Schemes including transferable securities, money market instruments, cash and near cash, units in collective investment schemes, deposits, and derivative and forward transactions for the purposes of efficient portfolio management (including hedging). * Investment grade requires a credit rating equivalent to no lower than a 'BBB minus' from the ratings agency Standard & Poor's. It is the Manager's intention that the assets of the Unit Trust will be invested so that the Unit Trust will be eligible for inclusion in an ISA. Non-Resident Unitholders - European Union Savings Directive Unitholders resident in most European Union countries (not UK) should be aware that the Trust is covered by the European Union Savings Directive. The Manager is required to identify and report your distributions and repurchase transactions to the UK tax authorities, who are in turn required to pass this information to most other European Union national tax authorities. Efficient Portfolio Management The efficient portfolio management techniques permitted in the fund as at 31 March 2014 comprise of: Technique Counterparty Exposure ( ) Exchange Traded JP Morgan Chase Bank N.A. (37,179,000) Futures The revenues in the period were nil with no collateral placed or received. Unit Dealings Dealings on the Trust take place on a daily basis. Purchase or sale instructions can be made by telephone or in writing to St. James's Place Unit Trust Group Limited, PO Box 9034, Chelmsford, CM99 2XA, United Kingdom, freephone: 0800 027 1031. The Manager adopts a policy of forward pricing, i.e. the order will be transacted on the dealing day following receipt of the client's instructions, or if received before noon, on that dealing day. In the case of telephone purchases of units from the Manager, settlement must be by return of post after receipt of the contract note. In the case of telephone redemptions, the proceeds will not become payable until the receipt at the Administration Centre of a written request. A contract note confirming the subscription or redemption price and the number of units involved will be forwarded, together with a cancellation notice, where appropriate, on the next business day. The most recent issue and redemption prices will be published on the Manager's website: www.sjp.co.uk and are available by calling the Administration Centre on 0800 027 1031. 12

General Information (continued) Minimum Investment The minimum lump sum investment is 1,500, thereafter the minimum additional investment is 1,000. The minimum monthly investment is 150 and the minimum monthly increment is 50. The minimum annual investment is 1,500 and the minimum annual increment is 500. Management Charges The Trust Deed permits the following management charges which are receivable by the Manager: (a) A Preliminary Charge of 5 per cent which is included in the offer price of the Units. (b) An Annual Management Charge at a rate of 1.21 per cent of the value of the Trust. Income Distributions Income distributions are made quarterly on or before the 31 January, 30 April, 31 July and 31 October. Accumulation Distributions Revenue due to accumulation unitholders is reflected in the price of their units. Tax Vouchers Income unitholders that receive income distributions by direct credit and accumulation unitholders (where the distribution income is reinvested) receive an annual consolidated tax voucher in May with all the relevant payment and tax information required to complete a tax return. Tax vouchers will be enclosed if income unitholders receive payment by cheque. Report A report is sent semi-annually to all unitholders on or before 31 May and 30 November. Capital Gains Tax The Trust is not liable to tax on capital gains and any individual holding units will not be liable to capital gains tax unless the total chargeable gains for the tax year 2014/2015 exceed 11,000 (2013/2014 10,900). To calculate capital gains on accumulation units, the total amount of reinvested net revenue (shown on the annual tax credit vouchers) should be added to the base cost of the units purchased. Unitholders should consult their professional advisers for any advice regarding their tax position. 13

St. James s Place Unit Trust Group Ltd is authorised and regulated by the Financial Conduct Authority. St. James s Place Unit Trust Group Ltd Registered Office: St. James s Place House, 1 Tetbury Road, Cirencester, Gloucestershire, GL7 1FP, United Kingdom. Registered in England Number 947644. Perivan Financial Print 232503 Investment Grade Corporate Bond (5/14)