BALANCED MANAGED UNIT TRUST - St. James's Place plc/media/Files/S/sjp-group/document-library... · The synthetic risk and reward indicator for the St. James’s Place Balanced Managed

BALANCED MANAGED UNIT TRUST

FOR THE YEAR ENDED 31 MARCH 2014

I. S. Gascoigne D. J. Lamb

PricewaterhouseCoopers LLPAtria One144 Morrison StreetEdinburgh, EH3 8EXUnited Kingdom

PO Box 9034, Chelmsford, CM99 2XA

St. James's Place Balanced Managed Unit Trust

ManagerSt. James's Place Unit Trust Group Limited

United KingdomFreephone: 0800 027 1031

(Authorised and regulated by the Financial Conduct Authority)

Directors of the ManagerD. C. BellamyA. M. Croft

London, EC1A 7NX

Secretary of the ManagerSt. James's Place Administration Limited

Investment Adviser AXA Investment Managers UK Ltd7 Newgate Street

St. Nicholas LaneBasildon, SS15 5FS

160 Queen Victoria Street

TrusteeBNY Mellon Trust & Depositary (UK) Limited


RegistrarInternational Financial Data Services (UK) LimitedIFDS House

United Kingdom


United Kingdom

London, EC4V 4LAUnited Kingdom


Independent Auditor

Prospectus and Manager's Reports

Copies of the up to date Prospectus (Scheme Particulars) and latest Manager's Report andFinancial Statements for the range of St. James's Place Unit Trusts can be requested from amember of the St. James's Place Partnership or, at any time during normal business hours, fromthe Administration Centre at PO Box 9034, Chelmsford CM99 2XA.Freephone: 0800 027 1031

1

06/04/10 to 31/03/14

31/03/13 to 31/03/14

% change % change

+32.6 +6.5+36.5 +7.1

+18.8 +4.6+14.8 +14.3+30.7 +1.6+16.9 -20.9+57.4 +19.3


Report of the Manager

During the year under review, 1 April 2013 to 31 March 2014, the St. James's Place Balanced Managed Unit Trust Income unit offer price rose by 6.5% from 124.5p to 132.6p and the Accumulation unit offer price (in which revenue is reflected in the price rather than distributed) rose by 7.1% from 127.4p to 136.5p. On the 28 May 2014, the latest available date before the printing of this report, the Income unit offer price was 134.1p and the Accumulation unit offer price was 138.0p. The estimated yield was 0.50%.

The Trust's Performance

The performance of the Trust since its launch in April 2010 and over the year under review isshown below, together with figures for the most commonly quoted indices in comparable marketswhere the major proportion of the Trust has been invested.

Stock selection was particularly strong in UK, European and Japanese equities. In the UK, the bestperformers were found among more domestic situations, particularly in financials, house-buildersand building materials. St. James’s Place, ITV, Lloyds Bank, Aviva, St Modwen, Quintain, LondonStock Exchange, BT and Barratt Developments were outstanding. Among companies withinternational earnings, Ashtead, Shire and Johnson Matthey stood out. Our bond returns weremixed as we underperformed due to the relatively poor performance of our index-linked stocks;but holding short-dated German Bunds proved beneficial as did being underweight in overseasbonds.

St. James's Place Balanced Managed Unit Trust Income units (offer to offer)Accumulation units (offer to offer)Indices - actualMSCI UK IMIMSCI Europe (excluding UK)Merrill Lynch UK Non-Gilt (net income reinvested)Merrill Lynch 1-10 Year UK Gilt (net income reinvested)S&P 500 Index

Investment Adviser's CommentsReturns from global equities were strong over the past year but there were large variations acrossregions: Europe ex UK was the strongest area, returning 14.3%; the US returned 19.3% and theUK 4.6%; but Pacific ex Japan was -6.5% and emerging markets at -10.8% were very weak. Inthis context the portfolio’s performance was relatively strong, largely driven by good stockselection.

Concern about slowing growth in China and structural problems in a number of emergingeconomies were responsible for weakness in the latter areas. The prospect of tapering USquantitative easing (QE) caused a number of emerging currencies to weaken and their interestrates were generally increased sharply as a result. The UK economy produced stronger-than-expected growth and sterling rose by 7.2% on a trade-weighted basis, reducing the returns fromoverseas investments. Returns from government bonds were negative as investors looked aheadto the end of QE, with sterling’s strength adding to the losses in overseas bonds.We held more cash than usual throughout the year, reflecting our cautious stance towardsgovernment bonds, where returns were negative. We made no significant change to our globalequity weights but maintained a clear bias towards equities, which we considered the mostattractive asset class. However, equities were generally re-rated in relation to the low yieldsavailable from government bonds rather than due to strong earnings growth.

Source: Lipper for Fund returns

REMEMBER THAT THE PRICE OF UNITS AND REVENUE FROM THEM MAY GO DOWN ASWELL AS UP. PLEASE BE AWARE THAT PAST PERFORMANCE IS NOT INDICATIVE OF FUTUREPERFORMANCE.

2

(continued)


Report of the Manager

We expect equities to make modest progress as growth becomes better established; but earningsforecasts need to be achieved for there is little scope for valuations to expand further.

AXA Investment Managers UK Ltd 15 April 2014

3

Highest Lowest Highest LowestOffer Bid Offer Bid

p p p p107.7 86.03 108.3 86.43111.6 90.83 112.9 92.08114.5 98.33 117.1 100.10133.2 109.40 137.1 112.10134.8 122.40 138.7 125.90

per £1,000 per £1,000Invested Invested

at 06/04/10 at 06/04/10p £ p £

0.560 5.60 0.561 5.610.911 9.11 0.919 9.190.842 8.42 0.857 8.570.665 6.65 0.681 6.810.031 0.31 0.032 0.32

Units in Issue Units in Issue Market NAV per Unit NAV per UnitIncome Accumulation NAV of Trust Income Accumulation

£'000 p p1,625,468 1,670,750,479 1,773,290 104.27 106.041,992,686 1,750,859,646 2,116,785 117.89 120.772,771,595 1,944,524,277 2,522,549 125.88 129.55

per unit

20102011201220132014*

per unit

Income AccumulationNet revenue distributed Net revenue distributed

The risk category is recalculated weekly and during the year under review, the risk category didnot change.

* To 31 March 2014

Risk and Reward Profile

2014

Ongoing Charges Figure

The Ongoing Charges Figure ('OCF') is the total expenses paid by the Trust in the year against itsaverage net asset value. It excludes the cost of buying or selling assets for the Trust (unless theseassets are shares of another trust). The OCF can fluctuate as underlying costs change.

The synthetic risk and reward indicator for the St. James’s Place Balanced Managed Unit Trust, asdisclosed in its most recent Key Investor Information Document (KIID), is a 5. It was calculatedusing performance data up to 3 February 2014.

The Ongoing Charges Figure for the year ended 31 March 2014 was 1.68% (31 March 2013:1.69%).

Performance Record


The St. James's Place Balanced Managed Unit Trust was first offered on 6 April 2010 at an offerprice of 100.00p per unit.

Unit Price History

Calendar year

Income Accumulation

20102011201220132014*

Distributions

The record of net distributions paid/payable per unit is shown below:

Calendar year

Net Asset Values

Year endedMarch20122013

4

Security Holdings

MarketValue£000

% ofNet

Assets

AUSTRALIA (0.91%) 15,302 0.61AMP 1,266,890 3,492 0.14Australia & New Zealand Banking 203,148 3,725 0.15Westfield # 1,422,208 8,085 0.32

BELGIUM (0.77%) 19,491 0.77Anheuser-Busch InBev 121,782 7,772 0.31KBC 319,792 11,719 0.46

BERMUDA (0.38%) - -

CANADA (0.54%) 15,315 0.60Catamaran 335,000 8,949 0.35Ithaca Energy 4,272,670 6,366 0.25

DENMARK (0.89%) 18,992 0.75Chr Hansen 327,510 7,823 0.31Novo Nordisk 409,333 11,169 0.44

FRANCE (2.99%) 75,861 3.01BNP Paribas 203,595 9,427 0.37Essilor 97,333 5,954 0.24Legrand 249,565 9,337 0.37LVMH Moet Hennessy Louis Vuitton 42,886 4,729 0.19Michelin 114,339 8,595 0.34Orange 600,673 5,319 0.21Publicis 141,241 7,672 0.31Schneider Electric 118,270 6,308 0.25Societe Generale 323,269 11,955 0.47Sodexo 104,004 6,565 0.26

GERMANY (5.12%) 127,856 5.07Allianz 115,793 11,808 0.47Brenntag 74,209 8,321 0.33Bundesobligation 0.25% 13/04/2018 80,000,000EUR 65,787 2.61Continental 56,144 8,101 0.32Deutsche Post 283,156 6,376 0.25Fresenius Medical Care 140,056 5,897 0.23Linde 58,883 7,086 0.28ProSiebenSat.1 Media 234,146 6,448 0.26SAP 164,797 8,032 0.32

GUERNSEY (0.39%) 9,206 0.36Resolution 3,055,295 9,206 0.36

HONG KONG (1.84%) 47,167 1.87AIA 3,518,600 10,015 0.40Cheung Kong 942,000 9,375 0.37Hang Seng Bank 1,173,200 11,203 0.44Link # 3,814,500 11,285 0.45Wharf 1,381,000 5,289 0.21

JAPAN (3.76%) 114,025 4.52Denso 136,600 3,934 0.16Gulliver International 838,820 3,902 0.15Hitachi 843,000 3,740 0.15Hulic 488,800 4,015 0.16JGC 177,000 3,697 0.15Komeri 256,800 4,197 0.17


Investment Assets

as at 31 March 2014

5

Security Holdings

MarketValue£000

% ofNet

Assets


Investment Assets (continued)

as at 31 March 2014

Kubota 449,000 3,573 0.14LIXIL 248,100 4,106 0.16MISUMI 246,200 4,092 0.16Mitsubishi Estate 268,000 3,809 0.15Nidec 128,000 4,679 0.18Nihon M&A Center 210,600 3,388 0.13Nomura 825,800 3,178 0.13NTN 1,377,000 2,814 0.11Omron 152,400 3,780 0.15OSG 354,300 3,688 0.15Otsuka 53,600 4,203 0.17Resorttrust 328,600 3,051 0.12Sato 241,700 3,363 0.13SBI Japan 534,800 3,870 0.15Seven & I 192,100 4,411 0.17Softbank 105,500 4,782 0.19Sumitomo Electric Industries 387,200 3,460 0.14Sumitomo Mitsui Financial 144,000 3,695 0.15Toho 371,300 4,719 0.19Tokio Marine 195,700 3,526 0.14Tokyo Gas 1,218,000 3,716 0.15Toray Industries 944,000 3,748 0.15Toyota Motor 104,800 3,554 0.14Unicharm 104,000 3,335 0.13

JERSEY (2.22%) 62,120 2.46Glencore Xstrata 5,744,575 17,860 0.71Shire 432,639 12,906 0.51Wolseley 522,161 17,978 0.71WPP 1,100,000 13,376 0.53

NETHERLANDS (1.50%) 31,936 1.27Airbus 180,431 7,861 0.31ING 1,687,683 14,398 0.57Unilever 390,162 9,677 0.39

NORWAY (0.31%) 19,537 0.78DNB 682,947 7,100 0.28Petroleum Geo-Services 918,886 6,542 0.26Telenor 442,340 5,895 0.24

SINGAPORE (0.83%) 15,550 0.62Keppel 1,500,400 7,794 0.31Sembcorp Industries 1,667,000 4,357 0.17Singapore Press 1,705,000 3,399 0.14

SPAIN (0.69%) 15,712 0.62Amadeus IT 336,504 8,210 0.32Inditex 82,676 7,502 0.30

SWEDEN (1.06%) 15,293 0.61Assa Abloy 223,305 7,088 0.28Swedbank 516,425 8,205 0.33

6

Security Holdings

MarketValue£000

% ofNet

Assets



as at 31 March 2014

SWITZERLAND (2.19%) 57,885 2.30Cie Financiere Richemont 111,585 6,408 0.26Nestle 333,710 15,170 0.60Partners 37,507 6,280 0.25Roche 87,707 15,865 0.63Sika 3,273 7,877 0.31Swatch 16,728 6,285 0.25

UNITED KINGDOM (60.00%) 1,483,195 58.81

Aerospace & DefenceRolls-Royce 1,077,000 11,621 0.46

Automobiles & PartsGKN 6,415,000 25,243 1.00

BanksHSBC 7,761,525 47,190 1.87Lloyds Banking Group 31,483,052 23,461 0.93Standard Chartered 1,024,178 12,797 0.51

BeveragesDiageo 1,446,889 27,173 1.08

ChemicalsJohnson Matthey 381,904 12,492 0.50

Construction & MaterialsBalfour Beatty 2,474,492 7,411 0.29

Electronic & Electrical EquipmentMorgan Crucible 3,596,541 12,728 0.51

Financial ServicesLondon Stock Exchange 610,916 12,084 0.48Schroders 327,787 8,516 0.34

Fixed Line TelecommunicationsBT 5,330,000 20,131 0.80

Food ProducersUnilever 546,174 14,009 0.56

Gas, Water & MultiutilitiesCentrica 5,761,874 18,893 0.75National Grid 2,383,550 19,605 0.78

General IndustrialsRexam 2,698,269 13,186 0.52Smiths 668,168 8,506 0.34

General RetailersDebenhams 9,502,150 7,383 0.29Kingfisher 2,500,000 10,465 0.41Sports Direct International 875,374 7,401 0.29

Government BondsUK Treasury 4.75% 07/03/2020 GBP 26,750,000 30,697 1.22UK Treasury 5% 07/03/2025 GBP37,490,000 44,973 1.79UK Treasury Index Linked 2.5% 26/07/2016 GBP7,100,000 24,011 0.95UK Treasury Index Linked 2.5% 16/04/2020 GBP13,338,000 48,438 1.92UK Treasury Index Linked 2.5% 17/07/2024 GBP7,000,000 23,004 0.91

7

Security Holdings

MarketValue£000

% ofNet

Assets



as at 31 March 2014

Health Care Equipment & ServicesSmith & Nephew 1,150,000 10,448 0.41Synergy Health 823,993 11,338 0.45

Household Goods & Home ConstructionBarratt Developments 2,350,000 9,668 0.38Bovis Homes 1,000,000 8,920 0.35Crest Nicholson 2,679,084 10,451 0.42Persimmon 635,000 8,598 0.34

Industrial EngineeringHalma 2,015,436 11,629 0.46IMI 693,607 10,161 0.40Weir 580,530 14,763 0.59

Industrial TransportationBBA Aviation 3,312,364 10,904 0.43

Leisure GoodsPoundland 1,682,332 6,414 0.26

Life InsuranceAviva 2,079,016 9,940 0.39Legal & General 6,978,484 14,418 0.57Partnership Assurance 1,575,000 2,175 0.09St James's Place ‡ 1,494,011 12,445 0.49

MediaDaily Mail & General Trust 1,812,242 15,712 0.62ITV 10,150,000 19,478 0.77Pearson 850,000 8,900 0.35

MiningBHP Billiton 1,143,441 21,205 0.84Rio Tinto 804,910 26,892 1.07

Mobile TelecommunicationsInmarsat 1,260,000 9,192 0.37Vodafone 12,203,161 26,975 1.07

Non Equity Investment InstrumentsAXA Framlington Emerging Markets Fund (Acc) 18,123,622 32,260 1.28AXA World Funds Framlington Emerging Markets Fund (Acc)

800,000 52,720 2.09

St. James's Place Money Market Unit Trust L Acc † 269,338,314 280,603 11.12

Non Life InsuranceNovae 1,932,040 11,196 0.44

Oil & Gas ProducersBG 1,165,499 13,001 0.52BP 8,299,868 40,234 1.59Faroe Petroleum 5,436,913 6,103 0.24Premier Oil 3,904,461 11,467 0.46Royal Dutch Shell 'A' Shares 789,522 17,405 0.69Royal Dutch Shell 'B' Shares 1,477,249 34,819 1.38

Oil Equipment & ServicesHunting 2,072,271 17,749 0.70

8

Security Holdings

MarketValue£000

% ofNet

Assets



as at 31 March 2014

Pharmaceuticals & BiotechnologyAstraZeneca 543,533 21,228 0.84BTG 2,398,184 13,046 0.52GlaxoSmithKline 2,551,554 40,953 1.62

Real Estate Investment & ServicesFoxtons 2,342,510 8,382 0.33Quintain Estates & Development 11,720,000 12,042 0.48St. Modwen Properties 1,830,162 7,330 0.29

Real Estate Investment TrustsShaftesbury 1,516,388 9,932 0.39

Support ServicesAshtead 2,317,515 22,213 0.88Bunzl 895,847 14,298 0.57SIG 3,498,688 7,004 0.28Travis Perkins 794,493 14,992 0.60

Travel & LeisureCompass 1,100,000 10,109 0.40TUI Travel 2,748,323 12,065 0.48

UNITED STATES (13.05%) 344,927 13.66Alexion Pharmaceuticals 95,000 8,529 0.34Amazon.com 48,000 9,756 0.39American Express 204,000 11,085 0.44American Tower # 215,000 10,604 0.42Amgen 145,000 10,499 0.42Apple 31,000 9,997 0.40Celgene 106,000 8,869 0.35Cerner 285,000 9,612 0.38Cognizant Technology Solutions 370,000 11,044 0.44Concho Resources 150,000 11,206 0.44Danaher 210,000 9,317 0.37DIRECTV 245,000 11,140 0.44EOG Resources 99,000 11,725 0.46Estee Lauder 217,000 8,699 0.33F5 Networks 167,000 10,549 0.42Gilead Sciences 200,000 8,235 0.33Google 16,000 10,763 0.43Hexcel 435,000 11,168 0.44ITC 510,000 11,252 0.45Kansas City Southern 85,000 5,087 0.20Monsanto 150,000 10,120 0.40National Oilwell Varco 215,000 10,032 0.40Precision Castparts 73,000 10,853 0.43QUALCOMM 230,000 10,953 0.43Quanta Services 500,000 11,070 0.44Salesforce.com 305,000 10,215 0.40Starbucks 235,000 10,405 0.41

9

Security Holdings

MarketValue£000

% ofNet

Assets



as at 31 March 2014

TJX 290,000 10,472 0.42Tractor Supply 250,000 10,627 0.42Union Pacific 48,000 5,327 0.21Verizon Communications 588,398 16,750 0.66Visa 81,000 10,317 0.41Whole Foods Market 290,000 8,911 0.35WW Grainger 65,000 9,739 0.39

DERIVATIVES (0.00%) (212) (0.01)

Forward Currency ContractsSold EUR79,000,000 for GBP65,294,685 Settlement 02/05/2014 (212) (0.01)

Investment assets^ 2,489,158 98.68

Total other assets (net) 33,391 1.32

Net assets 2,522,549 100.00

Equities 1,886,877 74.80Collective Investment Schemes 365,583 14.49Interest bearing assets 236,910 9.40Derivatives (212) (0.01)Total other assets (net) 33,391 1.32Net assets 2,522,549 100.00

Comparative figures shown in brackets relate to 31 March 2013.

All investments held are listed, unless otherwise stated.

† During the year under review the Manager decided to place some of the sterling cash held ondeposit into the St. James’s Place Money Market Unit Trust in order to spread risk across anumber of institutions. The St. James’s Place Money Market Unit Trust is highly liquid and is ratedAAA by Standard & Poors. This investment is a related party.

‡ This investment is a related party.

Asset Class Split

# Real Estate Investment Trust (REIT).

^ Including investment liabilities of (£211,952).

10

Material Portfolio Changes

PurchasesCost

£000St. James's Place Money Market Unit Trust L Acc † 408,044Bundesobligation 0.25% 13/04/2018 68,524AXA World Funds Framlington Emerging Markets Fund (Acc) 38,031Rolls-Royce 12,089Link # 11,493Starbucks 11,046Centrica 10,734Lloyds Banking Group 10,701WW Grainger 10,391Vodafone 10,292

SalesProceeds

£000St. James's Place Money Market Unit Trust L Acc † 328,714Bundesschatzanweisungen 0.75% 13/09/2013 64,126Brammer 11,133Segro # 10,519Barratt Developments 10,061Smiths 9,592UBM 9,267Arkema 8,429Telecity 8,408BG 8,383

† This investment is a related party.# Real Estate Investment Trust (REIT).


11

●

●

●

●

●

The Manager is responsible for keeping proper accounting records and for the management ofthe Trust in accordance with its Trust Deed, Prospectus and the Rules. The Manager has ageneral responsibility for taking such steps as are reasonably open to it to prevent and detectfraud and other irregularities.

St. James's Place Balanced Managed Unit Trust Statement of the Manager's Responsibilities in relation to the Financial Statements of the Trust

The rules in the Financial Conduct Authority's Collective Investment Schemes Sourcebook ("theRules") require the Manager to prepare Financial Statements for each annual accounting periodwhich give a true and fair view of the financial position of the Trust as at the end of the year andof the net revenue and the net capital gains on the property of the Trust for the year then ended.

In preparing the Financial Statements the Manager is required to:

select suitable accounting policies and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

comply with the requirements of the Statement of Recommended Practice relating toAuthorised Funds and the Trust Deed;

follow applicable UK Accounting Standards (UK Generally Accepted Accounting Practice);and

prepare Financial Statements on the going concern basis unless it is inappropriate topresume that the Trust will continue in operation.

D. J. Lamb 29 May 2014

Directors' Certificate

This report is certified in accordance with the requirements of the rules in the Financial ConductAuthority's Collective Investment Schemes Sourcebook.

Directors A. M. Croft London

12

London

29 May 2014


Statement of Trustee's Responsibilities

The Trustee is under a duty to take into custody and to hold the property of the Trust in trust forthe holders of units. It is also the duty of the Trustee to enquire into the conduct of the Managerin the management of the Trust and to ensure that the Trust is managed in accordance with allapplicable rules and restrictions in each annual accounting period, and to report thereon tounitholders.

Report of the TrusteeIn our opinion, the Manager has managed the Trust, in all material aspects, during the periodcovered by this Report in accordance with the investment and borrowing powers and therestrictions applicable to the Trust and otherwise in accordance with the provisions of the TrustDeed and the rules in the Financial Conduct Authority's Collective Investment Scheme provisionsof the Sourcebook.

For and on behalf of:BNY Mellon Trust & Depositary (UK) Limited

13

Independent Auditors’ Report to the Unitholders of St. James’s Place Balanced Managed Unit Trust

Our opinion

In our opinion the financial statements, defined below:

• give a true and fair view of the financial position of the Trust as at 31 March 2014 and of the net revenue and the net capital gains of the scheme property of the Trust for the year then ended; and

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, the Statement of Recommended Practice for Authorised Funds, the Collective Investment Schemes sourcebook and the TrustDeed.

This opinion is to be read in the context of what we say in the remainder of this report.

What we have audited

The financial statements of St. James’s Place Balanced Managed Unit Trust (the “Trust”), which are prepared by St. James’s Place Unit Trust Group Limited (the “Authorised Fund Manager”), comprise:

• the balance sheet of the Trust as at 31 March 2014;

• the statement of total return of the Trust for the year then ended;

• the statement of change in net assets attributable to unitholders of the Trust for the year then ended;

• the notes to the Trust’s financial statements, which include a summary of significant accounting policies and other explanatory information; and

• the distribution tables.

The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), the Statement of Recommended Practice ‘Financial Statements of Authorised Funds’ issued by the Investment Management Association (the “Statement of Recommended Practice for Authorised Funds”), the Collective Investment Schemes sourcebook and the Trust Deed.

In applying the financial reporting framework, the Authorised Fund Manager has made a number of subjective judgements, for example in respect of significant accounting estimates. In making such estimates, they have made assumptions and considered future events.

14

What an audit of financial statements involves

We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) (“ISAs (UK & Ireland)”). An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of:

• whether the accounting policies are appropriate to the Trust’s circumstances and have been consistently applied and adequately disclosed;

• the reasonableness of significant accounting estimates made by the Authorised Fund Manager; and

• the overall presentation of the financial statements.

In addition, we read all the financial and non-financial information in the Annual Report (the “Annual Report”) to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

Opinions on matters prescribed by the Collective Investment Schemes sourcebook

In our opinion: • we have obtained all the information and explanations we consider necessary

for the purposes of the audit; and

• the information given in the Authorised Fund Manager’s Report for the financial year for which the financial statements are prepared is consistent with the financial statements.

Other matters on which we are required to report by exception Propriety of accounting records and information and explanations received

Under the Collective Investment Schemes sourcebook we are required to report to you if, in our opinion: • proper accounting records have not been kept; or

• the financial statements are not in agreement with the accounting records and returns.

We have no exceptions to report arising from this responsibility.

15

Responsibilities for the financial statements and the audit

Our responsibilities and those of the Authorised Fund Manager

As explained more fully in the Authorised Fund Manager’s Responsibilities Statement set out on page 12, the Authorised Fund Manager is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view.

Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and ISAs (UK & Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.

This report, including the opinions, has been prepared for and only for the Trust’s unitholders as a body in accordance with paragraph 4.5.12 of the Collective Investment Schemes sourcebook and for no other purpose.

We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors Edinburgh 29 May 2014

The maintenance and integrity of the St. James’s Place website is the responsibility of the Fund Manager; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

16

Notes £000 £000 £000 £000

2 148,746 242,2583 50,338 45,4824 (38,648) (30,955)6 - -

11,690 14,5275 (1,488) (1,232)

10,202 13,295

158,948 255,5536 (10,203) (13,551)

148,745 242,002

£000 £000 £000 £0002,116,785 1,773,290

275,050 132,602

(28,171) (44,532)

246,879 88,070(126) (176)

148,745 242,00210,266 13,599

2,522,549 2,116,785

Bid Offerp p

126.0 132.6129.7 136.5Accumulation units

Net capital gains

Statement of Total Return


Income

for the year ended 31 March 2014

01/04/13 to 31/03/14 01/04/12 to 31/03/13


Revenue

Finance costs: Distributions

Expenses

Net revenue before taxation

Total return before distributions

Finance costs: Interest

Taxation

Net revenue after taxation

Change in net assets attributable to unitholders from investment activities

Statement of Change in Net Assets Attributable to Unitholders

01/04/13 to 31/03/14 01/04/12 to 31/03/13

Amounts receivable oncreation of units

Retained distribution on accumulation units

Opening net assets attributable to unitholdersMovement due to creation and cancellation of units:

Stamp duty reserve tax

Income units

Amounts payable on cancellation of units

The prices per unit as at 31 March 2014 (unaudited) were:

Closing net assets attributable to unitholders

Change in net assets attributable to unitholders from investment activities (see above)

17


31/03/14 31/03/13

Notes £000 £000 £000 £000

2,489,370 2,104,8798 23,945 18,5639 12,708 21,888

36,653 40,451

2,526,023 2,145,330

(212) -Creditors 10 (3,261) (28,542)

(1) (3)

Total other liabilities (3,262) (28,545)

(3,474) (28,545)

2,522,549 2,116,785

Balance Sheet

Investment assetsAssets

DebtorsCash and bank balances

Net assets attributable to unitholders

as at 31 March 2014

Total liabilities

Total assets

Liabilities

Distribution payable onincome units

Investment liabilities

Total other assets

18

1.

(a)

(b)

(c)

(d)

(e)

(f)

(g)

(h)

Expenses

UK dividend revenue is disclosed net of any related tax credit. Overseas dividends continueto be disclosed gross of any foreign tax suffered, the tax element being separately disclosedin the tax note.

Equalisation applies only to units purchased during the distribution period. It is the accruedrevenue element of the purchase price of all such units and is refunded to holders of theseunits as a return of capital. Being capital it is not liable to income tax, but must be deductedfrom the cost of units for capital gains tax purposes.

Taxation

Foreign exchange

Distributions are made in respect of quarters ended 31 March, 30 June, 30 September and31 December.

Equalisation

The Financial Statements have been prepared under the historical cost basis, as modified bythe revaluation of investments, in compliance with the Financial Conduct Authority'sCollective Investment Schemes Sourcebook. They have been prepared in accordance withapplicable UK accounting standards and in accordance with the Statement of RecommendedPractice (SORP) for Financial Statements of Authorised Funds issued by the IMA in October2010 (IMA SORP 2010).

Accounting and Distribution policies

Basis of accounting

Dividends receivable from equity investments are credited to the revenue account when theinvestments are first quoted ex-dividend. Interest on deposits is accounted for on an accrualsbasis. Revenue on interest bearing assets is recognised on an effective interest rate basis.Revenue from other authorised collective investment schemes is recognised when theinvestments are quoted ex-dividend. Management fee rebates from underlying funds will betaken to revenue or capital depending on the treatment adopted in the underlying funds.Management fee rebates received from the St. James's Place Money Market Unit Trust arerecognised as revenue on an accruals basis and form part of the distribution.

Revenue

Transactions involving foreign currencies are converted at the rate ruling on the date of thetransaction.

At the end of the accounting period all remaining revenue, less revenue expenses andtaxation, will be attributable to unitholders. In the case of income unitholders this will bepaid as a distribution. In the case of accumulation unitholders the distribution will bereinvested.

Deferred tax is provided for on the liability method on all timing differences. A deferred taxasset is only recognised to the extent that a timing difference will be of future benefit.

Distribution policy

Valuation of investments

Provision is made for corporation tax at the current rate on the excess of taxable revenueover allowable expenses.

Assets and liabilities have been translated into sterling at the exchange rates prevailing atthe Balance Sheet date.


Notes to the Financial Statements


Listed investments have been valued at bid market value at 12.00 midday on 31 March2014 (28/03/13: bid market value at 12.00 midday), net of any accrued interest which isincluded in the Balance Sheet as a revenue related item.

All expenses of the Trust are recognised on an accruals basis and are deducted from revenuewith the exception of handling charges and stamp duty reserve tax which are deducted fromcapital.

19


(continued)Notes to the Financial Statements

(i)

(j)

(k)

2.01/04/13 to

31/03/1401/04/12 to

31/03/13£000 £000

147,697 242,6041,403 -(348) (339)

(6) (7)

148,746 242,258

3.01/04/13 to

31/03/1401/04/12 to

31/03/13£000 £000

25,704 23,977Overseas dividends 15,053 12,478Distributions from Regulated Collective Investment Schemes Franked investment revenue 253 313 Interest distributions 161 398Revenue from UK REITs 336 806Revenue from Overseas REITs 733 1,045Bank interest 41 58Interest on debt securities 5,597 5,053Management charge rebate on underlying holdings 1,767 974Scrip dividends 693 380

50,338 45,482

The Trust may enter into permitted transactions such as derivative contracts or forwardforeign currency transactions. Where these transactions are used to protect or enhancerevenue, the returns are included within net revenue in the Statement of Total Return.

Where the transactions are used to protect or enhance investments, the returns are treatedas capital and included within gains/losses on investments in the Statement of Total Return.Any open positions in these type of transactions at the year end are included in the BalanceSheet at their mark to market value.

Revenue

UK dividends

Total revenue

Net capital gains

Forward currency contracts

Handling chargesCurrency losses

Non-derivative securities

Net capital gains

Special dividends

Special dividends are treated as revenue or a repayment of capital reflecting the facts ofeach particular case.

The ordinary element of stocks received in lieu of cash dividends is recognised as revenueand where applicable, is included in the distribution. In the case of enhanced scripdividends, the value of the enhancement is treated as capital.

Scrip dividends

Derivatives

20



4.01/04/13 to

31/03/1401/04/12 to

31/03/13£000 £000

28,743 23,015

180 152

Audit fee 7 9Investment administration fee 108 115

287 21799 81

3 -Investment adviser's fee 9,221 7,366

9,725 7,788

38,648 30,955

5.01/04/13 to

31/03/1401/04/12 to

31/03/13£000 £000

(a)1,488 1,232

(b)

11,690 14,527

2,338 2,905

(5,228) (4,887)(138) (76)

(3,011) (2,495)(19) (24)78 -

5,980 4,5771,488 1,232

1,488 1,232

(c)

(d)

Payable to the Manager

Analysis of charge in year:

Registrar's feesSafe custody fees

Payable to the Trustee

Total expenses

Other expenses

Tax & compliance fee

Management charge

Expenses

Taxation

Irrecoverable overseas tax

Non taxable foreign dividends

Trustee's fees

Corporation Tax at 20% (2013: 20%)

Income taxable in different periodsEffect of foreign tax expensed

Movement in excess management expensesIrrecoverable overseas tax

Effects of:

Non taxable scrip dividendsUK dividends not subject to corporation tax

Factors affecting current tax charge for the year:

The tax assessed for the year is lower than the standard rate of corporation tax in the UK foran authorised unit trust of 20% (2013: 20%). The differences are explained below:

There is no provision required for deferred taxation at the balance sheet date.

Current tax charge for year (note 5a)

At the year end, after offset against revenue taxable on receipt, there is a potential deferredtax asset of £16,807,654 (31/03/13: £10,571,483) relating to surplus managementexpenses. No deferred tax asset was recognised in the current or prior year as it wasconsidered unlikely the Trust would generate sufficient taxable profits in the future to utilisethese amounts.

Authorised Unit Trusts are exempt from tax on capital gains, therefore any capital return isnot included in the above reconciliation.

Deferred taxation:

Net revenue before taxation

Factors that may affect future tax charges

21



6.

Distributions and interest

01/04/13 to 31/03/14

01/04/12 to 31/03/13

£000 £000First interim distribution 8,814 7,729Second interim distribution 844 3,463Third interim distribution - -Final distribution 621 2,421

10,279 13,61338 37

(114) (99)

10,203 13,551- -

10,203 13,551

7.01/04/13 to

31/03/1401/04/12 to

31/03/13£000 £000

10,202 13,295Corporation tax relief to capital - 255

9 10(8) (9)

10,203 13,551

8.31/03/14 31/03/13

£000 £0008,867 8,0607,965 3,2945,805 5,579

79 440150 197

1,079 993

23,945 18,563

9.31/03/14 31/03/13

£000 £00012,678 20,960

30 928

12,708 21,888

10.31/03/14 31/03/13

£000 £0001,571 23,587

- 8811,690 4,074

3,261 28,542

Cash and bank balances: Overseas

Total debtors

Sales awaiting settlement

Net revenue after taxation

Overseas tax recoverable

Total finance costs

Add: brought forward from previous yearLess: carried forward to next year

Debtors

Net distributions for the year

Purchases awaiting settlement

Cash and bank balances: Sterling

Total cash and bank balances

Finance costs

The distributions take account of revenue received on the creation of units and revenuededucted on the cancellation of units and comprises:

Deduct: Revenue received on creation of units

Accrued revenue

Income tax recoverable

Add: Revenue deducted on cancellation of units

Amounts receivable for creation of units

Interest

Rebate receivable on underlying holdings

Net distributions for the year

Movement between net revenue and net distributions

Cash and bank balances

Creditors

Total creditors

Amounts payable for cancellation of unitsAccrued expenses

22



11.

12.

13.

14.

●

●

●

Included in the investment portfolio is a holding of 1,494,011 shares (31/03/13: 1,805,107)in St. James's Place (a parent company of St. James's Place Unit Trust Group Limited) with amarket value of £12,445,112 (31/03/13: £9,151,892)

The Manager, St. James's Place Unit Trust Group Limited, is a subsidiary of St. James's PlaceWealth Management Group plc ('SJPWMG'). Two fellow subsidiaries of SJPWMG,St. James's Place International plc and St. James's Place UK plc, invest some of their life andpension policyholders' funds into the St. James's Place Balanced Managed Unit Trust . Thevalue of these investments at the year end was £2,342,046,867 (31/03/13:£2,004,185,519).

Trustee's fees and interest payable to the BNY Mellon Trust & Depositary (UK) Limited andtheir associates are shown in notes 4 and 6 respectively. The net balances due from BNYMellon Trust & Depositary (UK) Limited and their associates at the year end in respect ofthese transactions was £nil (31/03/13: £13,231).

At the year end there were Income units of 2,771,595 (31/03/13: 1,992,686) andAccumulation units of 1,944,524,277 (31/03/13: 1,750,859,646) resulting in equivalentIncome units of 2,003,881,528 (31/03/13: 1,795,573,308).

The Manager is a member of the St. James's Place plc group of companies whose ultimateholding company is St. James’s Place plc. On advice of the investment adviser the schemeholds investments in Lloyds Banking Group plc which was a related party up until the 31December 2013. The investment adviser has been appointed to act as discretionaryinvestment adviser to the scheme by St. James’s Place Unit Trust Group. St. James’s PlaceUnit Trust Group has given the investment adviser complete discretion in the investment ofthe property of the scheme in accordance with the Regulations, the Trust Deed and theProspectus. The value of these investments at the year end was £23,461,170 (31/03/13:£8,608,662).

Units in issue

In accordance with the investment objectives, as stated on page 30, the Trust holds certainfinancial instruments. These comprise:

Capital commitments and contingent liabilities

On 31 March 2014, the Trust had no capital commitments (31/03/13: £nil) and nocontingent liabilities (31/03/13: £nil).

Equity shares; interest bearing assets and units in collective investment schemes;

Derivatives which the Trust may enter into (principally futures contracts, forward foreigncurrency contacts, swaps and options) the purpose of which is to manage the market riskarising from the Trust's investment activities (and related financing).

The rules in the Scheme Documents set out the financial instruments in which the Trust mayinvest. The Trust's use of financial instruments during the year satisfies these requirements.

Cash (including overdrafts) and short-term debtors and creditors that arise directly from itsoperations; and

Derivatives and other financial instruments

Included in the investment portfolio is a holding of 269,338,314 units (31/03/13:193,172,337) in St. James's Place Money Market Unit Trust (a St. James's Place Unit TrustGroup Limited fund) with a market value of £280,603,120 (31/03/13: £201,151,899).Revenue and management charge rebates from this holding are shown in note 3 as interestdistributions and management charge rebates on the underlying holdings.

Related party transactionsSt. James's Place Unit Trust Group Limited and BNY Mellon Trust & Depositary (UK) Limitedtogether with their associates are related parties and regarded as controlling parties byvirtue of having the ability to act in respect of operations of the Trust.

The Manager's service charge paid to St. James's Place Unit Trust Group Limited is shown innote 4 and details of the value of units created and cancelled by St. James's Place Unit TrustGroup Limited are shown in the Statement of Change in Net Assets Attributable toUnitholders. The net balances due from St. James's Place Unit Trust Group Limited at theyear end in respect of these transactions was £7,964,582 (31/03/13: £349,048).

23



15.

●

●

●

(a)

Risk management

Market price risk represents the potential loss the Trust might suffer through holding marketpositions in the face of price movements.

Market price risk

The Manager has delegated the investment management of the portfolio to an externalInvestment Adviser who determines the asset allocation and minimises the risk associatedwith particular countries or industry sectors, whilst continuing to follow the Trust’sinvestment objectives. The Manager has the responsibility for monitoring the portfolio toensure compliance with the investment objectives and that an acceptable risk reward profileis maintained.

Ongoing review of the investment performance of the Trust against appropriate benchmarks.

The Manager has delegated the investment management of the portfolio to an externalInvestment Adviser who determines the asset allocation and minimises the risk associatedwith particular countries or industry sectors, whilst continuing to follow the Trust'sinvestment objectives and that an acceptable risk reward profile is maintained.

The main risks arising from the Trust's financial instruments are market price risk, foreigncurrency risk, interest rate risk, credit risk and liquidity risk. The Manager's policies formanaging these risks are summarised below. These policies have remained unchangedsince the beginning of the year to which these financial statements relate.

Initial and ongoing due diligence of Investment Adviser investment and risk managementprocedures – including on site reviews;

Periodic reviews of the investments held by the Trust and their compliance with investmentobjectives and liquidity requirements; and

24



(b)

●

●

●

Monetary exposures

Non-monetary exposures Total

Monetary exposures

Non-monetary exposures Total

£000 £000 £000 £000 £000 £00094,836 1,508,167 1,603,003 13,554 1,308,657 1,322,211

80 15,302 15,382 12 19,329 19,34125 18,992 19,017 168 18,888 19,056

(64,869) 270,856 205,987 (2,100) 234,416 232,316- 47,167 47,167 142 38,953 39,095

747 114,025 114,772 652 79,595 80,247- 19,537 19,537 - 6,584 6,584- 15,550 15,550 - 17,614 17,614

493 15,293 15,786 794 22,332 23,126554 57,885 58,439 (2,840) 46,417 43,577

1,313 406,596 407,909 1,524 312,094 313,618

33,179 2,489,370 2,522,549 11,906 2,104,879 2,116,785

AUD

Currency

Movements in exchange rates affect short term timing differences; and

EUR

USD

The revenue and capital value of the Trust’s investments can be significantly affected bycurrency translation movements as a proportion of the Trust’s assets and revenue that aredenominated in currencies other than sterling, which is the Trust’s functional currency.

Foreign currency risk

HKD

The Trust may be subject to short term exposure to exchange rate movements, for instancewhere there is a difference between the date an investment purchase or sale is entered intoand the date when settlement of the proceeds occurs. When the Trust enters into such atransaction which will involve the buying or selling of foreign currency in order to complete,a foreign exchange contract is entered into as soon as possible after the initial transaction inorder to minimise the exchange rate risk.

The Trust receives revenue in currencies other than sterling and movements in exchangerates can affect the sterling values of this revenue. The Trust converts all receipts of revenueinto sterling on or near the date of receipt, it does not however hedge or otherwise seek toavoid exchange rate risk on revenue accrued but not received.

DKK

An analysis of monetary assets and liabilities for all currencies at the year end is shownbelow:

31/03/14

Movements in exchange rates affect revenue received.

Net foreign currency assets31/03/13

Movements in exchange rates affect the value of investments;

The Manager has identified three principal areas where foreign currency risk could impactthe Trust:

Net foreign currency assets

GBP

NOKJPY

SGDSEKCHF

25



(c)

Floating rate financial

assets

Fixed rate financial

assets

Fixed rate weighted

average interest rate

Fixed rate weighted

average period for

which rate is fixed

Financial assets not

carrying interest Total

£000 £000 % Years £000 £000

12,678 171,123 1.47 8.05 1,419,202 1,603,003- - 15,382 15,382- - 19,017 19,017- 65,787 0.42 4.04 140,200 205,987- - 47,167 47,167- - 114,772 114,772- - 19,537 19,537- - 15,550 15,550- - 15,786 15,786- - 58,439 58,439

30 - 407,879 407,909

12,708 236,910 2,272,931 2,522,549

20,960 184,888 0.55 9.05 1,116,363 1,322,211- - 19,341 19,341

132 - 18,924 19,056188 62,550 0.01 0.45 169,578 232,316

- - 39,095 39,09522 - 80,225 80,247

- - 6,584 6,584- - 17,614 17,614

493 - 22,633 23,126- - 43,577 43,577

97 - 313,521 313,618

21,892 247,438 1,847,455 2,116,785

SEKCHFUSD

EUR

AUDGBP

Total

31/03/13

Interest rate risk

31/03/14

The interest rate risk profile of the Trust's financial assets and liabilities at 31 March 2014was:

Interest rate risk arises due to variability in market interest rates. Some investments held bythe Trust, such as Corporate Bonds or Gilts, are highly sensitive to fluctuations in marketinterest rates. Interest receivable on bank deposits or payable on bank overdraft positionswill also be affected by these fluctuations. This risk is managed by ensuring that the Trust’sassets are diversified.

Currency

GBP

HKD

AUD

JPY

Total

SGDNOK

USD

SEKCHF

DKK

JPY

SGDNOK

HKD

DKKEUR

26



(d)

(e)

(f)

(g)

(h)

Liquidity risk

All financial liabilities of the Trust at the year end are due to settle in one year or less, or ondemand.

Fair value of financial assets and liabilities

There is no material difference between the value of the financial assets and liabilities, asshown in the Balance Sheet, and their fair values.

Liquidity risk arises where liabilities cannot be met when they fall due or can only be met atan uneconomic price. For instance, this could arise if the Trust faces significant redemptionsin a short period of time. In order to manage this risk the manager monitors the Trust withthe aim of ensuring that it contains diversified liquid assets, that the Trust possessessufficient liquidity for the purpose of meeting the redemption of units, and that the Trust hassources of borrowing available to it.

The external Investment Adviser selects acceptable counterparties through whichinvestments are bought and sold. The Manager has responsibility for monitoring the processby which these counterparties are selected to minimise risk.

The Trust’s investments and cash are held on its behalf by State Street Bank and TrustCompany (acting as agent), the custodian to the Trust, and its appointed sub custodians.Bankruptcy or insolvency of the custodian or its sub custodians may cause the Trust’s rightswith respect to securities to be delayed. This risk is managed through ongoing monitoringof the custodian and periodic reviews of its procedures for selecting and monitoring subcustodians, together with ad hoc reviews of custodian and sub custodian credit ratings.

The Manager may use derivative instruments to hedge the value of the investment portfolioagainst market, currency and stock specific risk through investment in warrants, options,forwards and futures. The purpose of the financial instruments is efficient portfoliomanagement. In particular futures may be used to implement the investment policy in atimely manner and to manage market risk arising from the time lag between funds beingreceivable or payable by the Trust and investment and disinvestment in underlying securities.As the trust is not considered a sophisticated fund, the manager uses the commitmentapproach to measure the global exposure to derivatives.

Maturity profile of financial liabilities

Derivative risk

Credit risk

Where the Investment Managers make an investment in a bond with credit risk, that creditrisk is assessed and then compared to the prospective investment return of the security inquestion. The risk is managed by reviewing the credit ratings of those bonds at time ofpurchase and on an ongoing basis.

Certain transactions in securities that the Trust enters into expose it to the risk that thecounterparty will not deliver the investment (purchase) or cash (sale) after the fund hasfulfilled its responsibilities.

Credit risk occurs where there is a risk associated with the uncertainty of a counterparty’sability to meet its obligations. This risk is managed by reviewing the counterparty’s creditrating, at the time of purchase and on an ongoing basis, and ensuring that the portfolio issufficiently diversified. The impact of movements in credit rating and spread, and their effecton market prices, is considered to be part of market price risk, which is discussed above.

27



16.

01/04/13 to 31/03/14

01/04/12 to 31/03/13

01/04/13 to 31/03/14

01/04/12 to 31/03/13

£000 £000 £000 £0001,016,212 803,568 768,698 691,629

702 672 (520) (511)922 567 (41) (3)

1,624 1,239 (561) (514)

1,017,836 804,807 768,137 691,115Total trades in the year after transaction costs

Purchases Sales

Non-derivative securities

Portfolio transaction costs

Analysis of total trade costs.

Total costs

CommissionsTaxes

28

Group 1

Group 2

Netrevenue Equalisation

Distributions paid to/ payable

31/05/14

Distributions paid to

31/05/13

Group 1 (p) (p) (p) (p)First interim 0.485 - 0.485 0.449Second interim 0.045 - 0.045 0.198Third interim - - - -Final 0.031 - 0.031 0.135

Group 2 (p) (p) (p) (p)First interim 0.256 0.229 0.485 0.449Second interim 0.014 0.031 0.045 0.198Third interim - - - -Final 0.025 0.006 0.031 0.135

Netrevenue Equalisation

Distributions paid to/ payable

31/05/14

Distributions paid to

31/05/13

Group 1 (p) (p) (p) (p)First interim 0.497 - 0.497 0.457Second interim 0.046 - 0.046 0.202Third interim - - - -Final 0.032 - 0.032 0.138

Group 2 (p) (p) (p) (p)First interim 0.262 0.235 0.497 0.457Second interim 0.014 0.032 0.046 0.202Third interim - - - -Final 0.026 0.006 0.032 0.138


(continued)Distribution Tables

Distributions in pence per unit

First interim Units purchased prior to 1 April 2013

Final Units purchased prior to 1 January 2014

Second interim Units purchased prior to 1 July 2013Third interim Units purchased prior to 1 October 2013

Accumulation

Final Units purchased on or after 1 January 2014 to 31 March 2014

Income

First interim Units purchased on or after 1 April 2013 to 30 June 2013Second interim Units purchased on or after 1 July 2013 to 30 September 2013Third interim Units purchased on or after 1 October 2013 to 31 December 2013

29

Currency Forwards

St. James's Place Balanced Managed 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 dated12 March 2010.


General Information

The Trust

The Unit Trust is subject to the rules of the Financial Conduct Authority's Collective InvestmentScheme 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 theIMA and is authorised and regulated by the Financial Conduct Authority.

Investment Objectives

The investment objective of the Scheme is to provide capital appreciation over the medium tolong term.

The Scheme will achieve this objective by generally investing in quoted securities on a worldwidebasis. The Scheme will invest, at the Manager's discretion, in UK and overseas equities, UK andoverseas fixed interest and index linked securities, units and/or shares in other collectiveinvestment schemes, cash and near cash.

The Scheme is also permitted to invest in other types of transferable securities, money marketinstruments, cash and near cash, deposits, and derivatives and forward transactions for thepurposes of efficient portfolio management (including hedging).

It is the Manager's intention that the composition of the Scheme will enable it to qualify forinclusion in the Investment Management Association's ‘Mixed Investment 40-85% Shares’Sector (formerly known as the Balanced Managed Sector).

It is the Manager's intention that the assets of the Unit Trust will be invested so that the UnitTrust will be eligible for inclusion in an ISA.

Non-Resident Unitholders - European Union Savings DirectiveUnitholders resident in most European Union countries (not UK) should be aware that the Trustis covered by the European Union Savings Directive, which came into force on 1 July 2005. TheManager is required to identify and report your distributions and repurchase transactions to theUK tax authorities, who are in turn required to pass this information to most other EuropeanUnion national tax authorities.

Unit Dealings

Dealings on the Trust take place on a daily basis. Purchase or sale instructions can be made bytelephone 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 dealingday 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 ofpost after receipt of the contract note. In the case of telephone redemptions, the proceeds willnot 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 unitsinvolved will be forwarded, together with a cancellation notice, where appropriate, on the nextbusiness 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.

Efficient Portfolio Management

Technique Counterparty Exposure (£)

BNP Paribas SA 65,506,637

The efficient portfolio management techniques permitted in the fund as at 31 March 2014comprise of:

The revenues in the year were nil with no collateral placed or received.

30


General Information (continued)

(a)

(b)

Tax Vouchers

Income distributions are made quarterly on or before the 28 February, 31 May, 31 August and30 November.

Accumulation Distributions

Revenue due to accumulation unitholders is reflected in the price of their units.

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 unitspurchased. Unitholders should consult their professional advisers for any advice regarding theirtax position.

Income unitholders that receive income distributions by direct credit and accumulationunitholders (where the distribution income is reinvested) receive an annual consolidated taxvoucher in May with all the relevant payment and tax information required to complete a taxreturn.

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 tocapital gains tax unless the total chargeable gains for the tax year 2014/2015 exceed £11,000(2013/2014 £10,900).

Management ChargesThe Trust Deed permits the following management charges which are receivable by theManager:

A Preliminary Charge of 5 per cent which is included in the offer price of the Units.

An Annual Management Charge at a rate of 1.25 per cent of the value of the Trust.

Income Distributions

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.

Minimum Investment

31

Perivan Financial Print 232503 Balanced Managed (5/14)

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 Offi ce:

St. James’s Place House, 1 Tetbury Road, Cirencester, Gloucestershire, GL7 1FP, United Kingdom. Registered in England Number 947644.