uk growth unit trust/media/files/s/sjp-asia/documents/...st. james's place uk growth unit trust...

UK Growth UNIt trUSt

FOR THE YEAR ENDED 30 SEPTEMBER 2017

I. S. Gascoigne D. J. Lamb

National Westminster Bank Plc250 BishopsgateLondon, EC2M 4AAUnited Kingdom

PricewaterhouseCoopers LLPAtria One144 Morrison StreetEdinburgh, EH3 8EXUnited Kingdom

Following a full review and tender of trustee and depositary services provided to the St. James’sPlace range of authorised unit trusts, National Westminster Bank plc are to be appointed the newTrustee to the funds, replacing BNY Mellon Trust & Depositary (UK) Limited. The change isexpected to take place on 1 December 2017.

United Kingdom

DST Financial Services Europe Limited

St. Nicholas LaneBasildon, SS15 5FS

DST House

Registrar

(Authorised and regulated by the Financial Conduct Authority)

PO Box 9034, Chelmsford, CM99 2XAUnited Kingdom

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

Freephone: 0800 027 1031


On 1 January 2018 D. C. Bellamy will retire from the board of St. James's Place Unit Trust GroupLimited.

St. James's Place UK Growth Unit Trust

ManagerSt. James's Place Unit Trust Group Limited

10 Old Bailey

Investment AdviserMajedie Asset Management Limited

BNY Mellon Trust & Depositary (UK) Limited 160 Queen Victoria Street

London, EC4M 7NGUnited Kingdom


Trustee

London, EC4V 4LAUnited Kingdom


Independent Auditors

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

The name of the registrar changed from International Financial Data Services (UK) Limited to DSTFinancial Services Europe Limited on 14 August 2017.

1

08/01/07 to 30/09/17

30/09/12 to 30/09/17

30/09/16 to 30/09/17

% change % change % change

+47.8 +52.5 +11.1+78.5 +63.5 +12.8

- - +7.8- - +4.0Y Accumulation units (offer to offer)**

Source: Lipper for Fund Return


The Report of the Manager consists of The Trust, Investment Objectives & Policy, The Trust'sPerformance, Risk and Reward Profile, Investment Adviser's Comments and Portfolio Statement.

Investment Objectives & Policy

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.

The Trust's Performance

The performance of the Trust since its launch in January 2007, over the five year period sinceSeptember 2012 and over the year under review is shown below.

The investment objective of the Scheme is to provide capital appreciation through investment ina concentrated portfolio of quoted UK securities. The Scheme will be invested, at the Manager’sdiscretion, primarily in UK equities and may also be invested in cash and near cash. The Schemeis also permitted to invest in other transferable securities, money market instruments, units incollective investment schemes and deposits.

The Scheme is permitted to invest in derivatives and forward transactions for the purposes ofefficient portfolio management (including hedging).

Report of the Manager

L Accumulation units (offer to offer)H Accumulation units (offer to offer)**

* Income Units were made available on the 1 October 2007.

** Class H Accumulation and Y Accumulation units were made available on 1 December 2016and the performance shown is from that date.

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.

The Trust

St. James's Place UK Growth Unit Trust is an authorised Unit Trust scheme under section 243 ofthe Financial Services and Markets Act (2000) and is constituted by a Trust Deed dated 8 January2007.

The Unit Trust is subject to the rules of the Financial Conduct Authority's Collective InvestmentScheme Sourcebook and is classified as a UCITS Scheme.

St. James's Place UK Growth Unit TrustL Income units (offer to offer)*

2


Report of the Manager (continued)

On the negative tack, Centrica continued to experience adverse sentiment on the risk of politicalinterference in the sector. However, we remain very satisfied with the 6%+ dividend yield thatthe company offers. Our avoidance of Glencore softened the portfolio’s outperformance. In thetelecoms sector, BT delivered a profit warning but we still like the franchise.We retain our cautious view on the growth outlook and have continued to move the portfolio toa more defensive shape. We have stepped away from sectors likely to struggle in the event of aneconomic downturn, such as mining (e.g. Anglo American and BHP Billiton) and bought intoGold. We have extended moves to reduce our Financials’ position (e.g. HSBC) and continued tomove to resilient UK businesses – Smith and Nephew, Next and Centrica.In summary, we have been adding to domestic exposure, where companies have low valuationsand are far into their structural change. In the background, there is the possibility of sterlingtrending upwards which would lessen the disposable income squeeze. A second theme runningthrough the portfolio is energy: there is a rebalancing in the oil market and the majors arelearning to live with lower oil prices and still pay decent dividends. Finally, the portfolio ispositioned to take advantage of disruption, whether in consumer staples, tobacco, food retail,home or personal care. Amid all this, we have a strong undercurrent of Darwinian winners eatingaway at their competition.

Markets displayed resilience to political uncertainty during the period, helped by almost a decadeof expansionary policy by central banks. The election of Donald Trump soon gave a fillip tofinancial stocks. Sterling dropped to new lows after the UK government triggered Article 50 inMarch 2017. The UK consumer initially seemed resilient, but the general election, and theweakened Conservative government that emerged from it, meant investors then faced a lessstable political environment. Inflation ticked up, denting consumer confidence and the FTSE All-Share drew strength particularly from overseas earners who benefited from the weaker pound.

The portfolio performed strongly.

KAZ Minerals and Anglo American contributed positively to the portfolio. This followed a strongrebound in metal prices, helped by a weaker dollar and robust demand from China. In the mid-cap space, Electrocomponents was strong, posting a healthy set of results and signalled raisedprofit expectations. Not holding Shire, the Pharmaceuticals stock, also contributed to relativeoutperformance.

Majedie Asset Management Limited 13 October 2017

Investment Adviser's Comments

Risk and Reward ProfileThe synthetic risk and reward indicator for the St. James's Place UK Growth Unit Trust, asdisclosed in its most recent Key Investor Information Document (KIID), is a 5. It was calculatedusing performance data up to 6 February 2017. The risk category is recalculated weekly and during the year under review, the risk category didnot change.

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Comparative Table

as at 30 September 2017

30/09/17 30/09/16 30/09/15

L Income

Change in net assets per unit (p) (p) (p)

Opening net asset value per unit 135.50 120.97 126.23Return before operating charges* 20.40 19.14 (0.60)Operating charges (3.12) (2.62) (2.80)

Return after operating charges* 17.28 16.52 (3.40)Distributions on income units (1.97) (1.99) (1.86)

Closing net asset value per unit 150.81 135.50 120.97

*after direct transaction costs of: 0.30 0.16 0.40

PerformanceReturn after charges† 12.75% 13.66% (2.69%)

Other informationClosing net asset value (£’000) 2,950 2,901 2,838Closing number of units 1,956,120 2,141,000 2,345,834Operating charges** 2.10% 2.09% 2.11%Direct transaction costs 0.20% 0.13% 0.30%

PricesHighest unit price (p) 155.64 145.70 148.70Lowest unit price (p) 136.81 108.70 116.00

30/09/17 30/09/16 30/09/15

L Accumulation

Change in net assets per unit (p) (p) (p)

Opening net asset value per unit 150.47 132.40 136.08Return before operating charges* 22.65 20.93 (0.67)Operating charges (3.47) (2.86) (3.01)

Return after operating charges* 19.18 18.07 (3.68)Distributions on accumulation units (2.19) (2.18) (2.01)Retained distributions on accumulation units 2.19 2.18 2.01

Closing net asset value per unit 169.65 150.47 132.40

*after direct transaction costs of: 0.34 0.17 0.43

PerformanceReturn after charges† 12.75% 13.65% (2.70%)

Other informationClosing net asset value (£’000) 304,118 275,323 274,277Closing number of units 179,265,221 182,978,185 207,155,225Operating charges** 2.10% 2.09% 2.11%Direct transaction costs 0.20% 0.13% 0.30%

PricesHighest unit price (p) 172.82 159.50 160.30Lowest unit price (p) 151.92 118.90 125.10

Net Asset Value and Ongoing Charges Figure

4


Comparative Table (continued)



30/09/17

H Accumulation

Change in net assets per unit (p)

Opening net asset value per unit 155.60Return before operating charges* 16.95Operating charges (3.60)

Return after operating charges* 13.35Distributions on accumulation units (1.03)Retained distributions on accumulation units 1.03

Closing net asset value per unit 168.95

*after direct transaction costs of: 0.34

PerformanceReturn after charges† 8.58%

Other informationClosing net asset value (£’000) 11Closing number of units 6,402Operating charges** 2.60%Direct transaction costs 0.20%

PricesHighest unit price (p) 172.39Lowest unit price (p) 155.60

5


Comparative Table (continued)



30/09/17

Y Accumulation

Change in net assets per unit (p)

Opening net asset value per unit 155.60Return before operating charges* 17.00Operating charges (1.96)

Return after operating charges* 15.04Distributions on accumulation units (2.70)Retained distributions on accumulation units 2.70

Closing net asset value per unit 170.64

*after direct transaction costs of: 0.34

PerformanceReturn after charges† 9.67%

Other informationClosing net asset value (£’000) 21Closing number of units 12,039Operating charges** 1.41%Direct transaction costs 0.20%

PricesHighest unit price (p) 173.56Lowest unit price (p) 155.60

**Operating charges are prepared using the same methodology as the ongoing chargesappearing in the KIID, based on the information in this report.†This figure may differ from the performance figure quoted in the Investment Report. TheInvestment Report performance figure is calculated using the last available published price for agiven unit class in the period compared to the equivalent for the prior period. The price per thefinancial statements values the fund on a bid-price basis. The financial statements unit classvaluation is based on market prices on the last day of the period, which can differ from theintraday pricing point of the Trust.

H Accumulation and Y Accumulation units were made available on 1 December 2016.

6

Security Holdings

MarketValue£000

% ofNet

Assets

Aerospace & Defence (1.20%) 7,502 2.44BAE Systems 806,651 5,106 1.66Cobham 926,259 1,354 0.44QinetiQ 48,936 122 0.04Rolls-Royce 103,144 920 0.30Banks (14.73%) 34,983 11.39Barclays 3,929,937 7,545 2.46HSBC 2,160,530 15,850 5.16Royal Bank of Scotland 2,584,374 6,924 2.25Standard Chartered 629,660 4,664 1.52Construction & Materials (0.29%) 1,257 0.41Marshalls 288,254 1,257 0.41Electricity (0.00%) 862 0.28SSE 61,606 862 0.28Financial Services (0.54%) 1,245 0.413i 136,168 1,245 0.41Fixed Line Telecommunications (3.14%) 8,076 2.63BT 2,839,110 8,076 2.63Food & Drug Retailers (7.37%) 27,753 9.03J Sainsbury 1,735,108 4,152 1.35Tesco 6,837,694 12,814 4.17WM Morrison Supermarkets 4,563,037 10,787 3.51Food Producers (0.00%) 1,792 0.58Associated British Foods 56,217 1,792 0.58Forestry & Paper (1.35%) 4,108 1.34Mondi 205,482 4,108 1.34Gas, Water & Multiutilities (1.58%) 10,912 3.56Centrica 5,429,411 10,153 3.31National Grid 81,947 759 0.25General Retailers (3.07%) 19,965 6.48Card Factory 691,087 2,070 0.67Dixons Carphone 637,510 1,209 0.39Dunelm 102,847 721 0.23Kingfisher 1,123,426 3,351 1.09Marks & Spencer 2,244,017 7,960 2.59Next 11,855 625 0.20Saga 2,055,830 4,029 1.31Health Care Equipment & Services (0.66%) 3,288 1.07Smith & Nephew 242,807 3,288 1.07Life Insurance (1.01%) 5,024 1.64Aviva 972,632 5,024 1.64Media (1.32%) 5,564 1.81Daily Mail & General Trust 553,930 3,468 1.13Pearson 343,935 2,096 0.68Mining (9.28%) 19,372 6.31Acacia Mining 312,521 584 0.19Anglo American 491,625 6,551 2.13BHP Billiton 198,365 2,625 0.85Fresnillo 78,552 1,111 0.36Hochschild Mining 457,103 1,037 0.34KAZ Minerals 698,578 5,313 1.73Lonmin 761,861 539 0.18Polymetal International 111,897 938 0.31Rio Tinto 19,395 674 0.22


Portfolio Statement


7

Security Holdings

MarketValue£000

% ofNet

Assets


Portfolio Statement (continued)


Mobile Telecommunications (4.31%) 11,107 3.62Vodafone 5,337,182 11,107 3.62Non Equity Investment Instruments (8.83%) 27,788 9.05Majedie UK Smaller Companies Fund B Acc 7,788,214 27,788 9.05Nonlife Insurance (0.44%) 2,677 0.88Jardine Lloyd Thompson 69,613 848 0.28RSA Insurance 292,598 1,829 0.60Oil & Gas Producers (15.51%) 44,275 14.42BP 4,266,274 20,406 6.64Royal Dutch Shell 970,799 22,285 7.26Tullow Oil 850,236 1,584 0.52Oil Equipment, Services & Distribution (0.00%) 1,430 0.47AMEC 279,580 1,430 0.47Personal Goods (0.69%) 704 0.23Unilever 16,265 704 0.23Pharmaceuticals & Biotechnology (6.11%) 9,056 2.95GlaxoSmithKline 606,390 9,056 2.95Real Estate Investment & Services (0.00%) 412 0.13Purplebricks 110,486 412 0.13Software & Computer Services (1.12%) 4,986 1.62FDM 154,463 1,484 0.48Sage 502,119 3,502 1.14Support Services (10.48%) 26,733 8.70Aggreko 138,684 1,304 0.42De La Rue 253,940 1,629 0.53Electrocomponents 1,053,492 6,537 2.13Hays 825,111 1,574 0.51Mears 351,499 1,600 0.52Rentokil Initial 2,702,024 8,082 2.63Serco 3,148,540 3,703 1.21Travis Perkins 158,008 2,304 0.75Tobacco (0.46%) 1,244 0.41British American Tobacco 26,556 1,244 0.41Travel & Leisure (3.40%) 15,299 4.99Enterprise Inns 635,755 885 0.29Firstgroup 3,851,910 4,545 1.48Greene King 254,472 1,407 0.46GVC 250,028 2,054 0.67Ladbrokes 1,076,636 1,322 0.43Ryanair 267,721 3,793 1.24William Hill 513,057 1,293 0.42

Investment Assets 297,414 96.85

Total other assets (net) 9,686 3.15

Net assets 307,100 100.00

Comparative figures shown in brackets relate to 30 September 2016.

All investments held are listed, unless otherwise stated.

8

Material Portfolio Changes

PurchasesCost

£000Centrica 8,763Marks & Spencer 7,392BT 4,674GlaxoSmithKline 4,590Kingfisher 4,283Aviva 4,135Vodafone 2,968WM Morrison Supermarkets 2,608Royal Dutch Shell 2,308BP 2,180

SalesProceeds

£000HSBC 8,387BHP Billiton 7,470Anglo American 6,627Rentokil Initial 6,134GlaxoSmithKline 5,940Rio Tinto 5,587Barclays 5,291AstraZeneca 5,008Standard Chartered 4,542Royal Dutch Shell 3,514


9

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London

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 UK Growth Unit TrustStatement 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 thenended.

In preparing the Financial Statements the Manager is required to:

select suitable accounting policies and then apply them consistently;

make judgements and 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.

Directors of the Managers' Certificate

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

A. M. Croft D. J. Lamb

27 November 2017

10

The Depositary must ensure that:

• any consideration relating to transactions in the Trust’s assets is remitted to the Trust withinthe usual time limits;

• the Trust’s income is applied in accordance with the Regulations; and

• the sale, issue, repurchase and cancellation of units are carried out in accordance with theRegulations;

• the value of units of the Trust are calculated in accordance with the Regulations;

• the instructions of the Authorised Fund Manager (“the AFM”), which is the UCITSManagement Company, are carried out (unless they conflict with the Regulations).

(ii) has observed the investment and borrowing powers and restrictions applicable to the Trust inaccordance with the Regulations and the Scheme documents of the Trust.

For and on behalf ofBNY Mellon Trust & Depositary (UK) Limited160 Queen Victoria StreetLondon EC4V 4LA

Manager

Date 27 November 2017

The Depositary also has a duty to take reasonable care to ensure that the Trust is managed inaccordance with the Regulations and the Scheme documents of the Trust in relation to theinvestment and borrowing powers applicable to the Trust.

Having carried out such procedures as we considered necessary to discharge our responsibilitiesas Depositary of the Trust, it is our opinion, based on the information available to us and theexplanations provided, that, in all material respects the Trust, acting through the AFM:

(i) has carried out the issue, sale, redemption and cancellation, and calculation of the price ofthe Trust’s units and the application of the Trust’s income in accordance with the Regulationsand the Scheme documents of the Trust; and

Statement of the Depositary's Responsibilities in Respect of the Scheme and Report of theDepositary to the Unitholders of the St. James's Place UK Growth Unit Trust for the yearended 30 September 2017

The Depositary in its capacity as Trustee of St. James's Place UK Growth Unit Trust must ensurethat the Trust is managed in accordance with the Financial Conduct Authority’s CollectiveInvestment Schemes Sourcebook, and, from 22 July 2014 the Investment Funds Sourcebook, theFinancial Services and Markets Act 2000, as amended, (together “the Regulations”), the TrustDeed and Prospectus (together “the Scheme documents”) as detailed below.

• the Trust’s cash flows are properly monitored and that cash of the Trust is booked in cashaccounts in accordance with the Regulations;

The Depositary must in the context of its role act honestly, fairly, professionally, independentlyand in the interests of the Trust and its investors.

The Depositary is responsible for the safekeeping all of custodial assets and maintaining a recordof all other assets of the Trust in accordance with the Regulations.

11

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the Manager’s use of the going concern basis of accounting in the preparation of thefinancial statements is not appropriate; or

We remained independent of the Trust in accordance with the ethical requirements that arerelevant to our audit of the financial statements in the UK, which includes the FRC’s EthicalStandard, and we have fulfilled our other ethical responsibilities in accordance with theserequirements.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which ISAs (UK)require us to report to you when:

the Manager has not disclosed in the financial statements any identified materialuncertainties that may cast significant doubt about the Trust’s ability to continue to adoptthe going concern basis of accounting for a period of at least twelve months from the datewhen the financial statements are authorised for issue.

have been properly prepared in accordance with United Kingdom Generally AcceptedAccounting Practice (United Kingdom Accounting Standards, comprising FRS 102 “TheFinancial Reporting Standard applicable in the UK and Republic of Ireland”, and applicablelaw), the Statement of Recommended Practice for UK Authorised Funds, the CollectiveInvestment Schemes sourcebook and the Trust Deed.

We have audited the financial statements, included within the Annual Report (the “AnnualReport”), which comprise: the balance sheet as at 30 September 2017; the statement of totalreturn and the statement of change in net assets attributable to unitholders for the year thenended; the distribution tables; and the notes to the financial statements, which include adescription of the significant accounting policies.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs(UK)”) and applicable law. Our responsibilities under ISAs (UK) are further described in theAuditors’ responsibilities for the audit of the financial statements section of our report. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basis for ouropinion.

Independence

Independent Auditors' Report to the Unitholders of

Our opinion

In our opinion, St. James's Place UK Growth Unit Trust financial statements:give a true and fair view of the financial position of the Trust as at 30 September 2017 andof the net revenue and the net capital gains of the scheme property of the Trust for the yearthen ended; and


Report on the audit of the financial statements

However, because not all future events or conditions can be predicted, this statement is not aguarantee as to the Trust’s ability to continue as a going concern.

Reporting on other information The other information comprises all of the information in the Annual Report other than thefinancial statements and our auditors’ report thereon. The Manager is responsible for the otherinformation. Our opinion on the financial statements does not cover the other information and,accordingly, we do not express an audit opinion or, except to the extent otherwise explicitlystated in this report, any form of assurance thereon.

In connection with our audit of the financial statements, our responsibility is to read the otherinformation and, in doing so, consider whether the other information is materially inconsistentwith the financial statements or our knowledge obtained in the audit, or otherwise appears to bematerially misstated. If we identify an apparent material inconsistency or material misstatement,we are required to perform procedures to conclude whether there is a material misstatement ofthe financial statements or a material misstatement of the other information. If, based on thework we have performed, we conclude that there is a material misstatement of this otherinformation, we are required to report that fact. We have nothing to report based on theseresponsibilities.

12

Independent Auditors' Report to the Unitholders of

St. James's Place UK Growth Unit Trust (continued)

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Report of the Manager

This report, including the opinions, has been prepared for and only for the Trust’s unitholders as abody in accordance with paragraph 4.5.12 of the Collective Investment Schemes sourcebook andfor no other purpose. We do not, in giving these opinions, accept or assume responsibility for anyother purpose or to any other person to whom this report is shown or into whose hands it maycome save where expressly agreed by our prior consent in writing.

Other required reporting

We have no exceptions to report arising from this responsibility.

In preparing the financial statements, the Manager is responsible for assessing the Trust’s abilityto continue as a going concern, disclosing as applicable, matters related to going concern andusing the going concern basis of accounting unless the Manager either intend to wind up orterminate the Trust, or have no realistic alternative but to do so.

Auditors’ responsibilities for the audit of the financial statementsOur objectives are to obtain reasonable assurance about whether the financial statements as awhole are free from material misstatement, whether due to fraud or error, and to issue anauditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, butis not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect amaterial misstatement when it exists. Misstatements can arise from fraud or error and areconsidered material if, individually or in the aggregate, they could reasonably be expected toinfluence the economic decisions of users taken on the basis of these financial statements.

Opinion on matter required by the Collective Investment Schemes sourcebook

In our opinion, we have obtained all the information and explanations we consider necessary forthe purposes of the audit.

Responsibilities of the Manager for the financial statementsAs explained more fully in the Statement of the Manager's Responsibilities set out on page 10,the Manager is responsible for the preparation of the financial statements in accordance with theapplicable framework and for being satisfied that they give a true and fair view. The Manager isalso responsible for such internal control as they determine is necessary to enable the preparationof financial statements that are free from material misstatement, whether due to fraud or error.

A further description of our responsibilities for the audit of the financial statements is located onthe Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. Thisdescription forms part of our auditors’ report.

Use of this report

Collective Investment Schemes sourcebook exception reporting

In our opinion, the information given in the Report of the Manager for the financial year for whichthe financial statements are prepared is consistent with the financial statements.

Responsibilities for the financial statements and the audit

Under the Collective Investment Schemes sourcebook we are also required to report to you if, inour opinion:

proper accounting records have not been kept; or

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

The maintenance and integrity of the St. James’s Place website is the responsibility of the Fund Manager; the work carried out by theauditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes thatmay 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 inother jurisdictions.

PricewaterhouseCoopers LLPChartered Accountants and Statutory AuditorsEdinburgh27 November 2017

13

Note £000 £000 £000 £000

2 31,081 29,5043 10,381 9,9944 (6,359) (5,675)

- -

4,022 4,319

5 (3) (3)

4,019 4,316

35,100 33,8206 (4,019) (4,316)

31,081 29,504

£000 £000 £000 £000278,224 277,115

17,263 12,813

(23,390) (45,193)

(6,127) (32,380)

31,081 29,5043,922 3,985

307,100 278,224

Statement of Total Return

for the year ended 30 September 2017

01/10/16 to 30/09/17 01/10/15 to 30/09/16


01/10/16 to 30/09/17 01/10/15 to 30/09/16

Amounts receivable on creation of units

Retained distribution on accumulation units

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

Change in net assets attributable to unitholders from investment activities

Statement of Change in Net Assets Attributable to Unitholders

Amounts payable on cancellation of units

Closing net assets attributable to unitholders

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

Income


Revenue

Distribution

Expenses

Net revenue before taxation

Total return before distribution

Interest payable and similar charges

Taxation

Net revenue after taxation

Net capital gains

14


30/09/17 30/09/16

Note £000 £000

297,414 269,561

7 778 646

10,014 10,750

308,206 280,957

Liabilities

Creditors

(38) (43)

8 (1,068) (2,690)

(1,106) (2,733)307,100 278,224

Other creditors

Total liabilitiesNet assets attributable to unitholders

Assets

Investments

Total assets

Distribution payable


Current assets

Cash and bank balances

Balance Sheet

Debtors

15

1.

(a) Basis of accounting

(b)

(c)

(d)

(e)

(f)

(g)

(h)

Expenses

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

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.

Authorised unit trusts are valued at cancellation price for funds managed by the managerand a bid price for all other funds.

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

The manager has chosen to pay all revenue less revenue expenses and taxation as a finaldistribution at the end of the accounting period. In the case of income unitholders this willbe paid as a distribution. In the case of accumulation unitholders the distribution will bereinvested. Equalisation on distributions received is deducted from the cost of theinvestment.

Equalisation

Revenue

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

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

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


Accounting and Distribution policies

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 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 St. James's Place Money Market Unit Trust arerecognised as revenue on an accruals basis and form part of the distribution.

Notes to the Financial Statements


Listed investments have been valued at bid market value at 12.00 midday on 29 September2017 (30/09/16: 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 which are deducted from capital.

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 withUnited Kingdom Generally Accepted Accounting Practice, including Financial ReportingStandard 102 (The Financial Reporting Standard applicable in the UK and Republic of IrelandFRS 102) and in accordance with the Statement of Recommended Practice (SORP) forFinancial Statements of Authorised Funds issued by the Investment Management AssociationMay 2014 (IMA SORP 2014). The financial statements are prepared on the going concernbasis.

16


(continued)Notes to the Financial Statements


(i)

(j)

(k)

2.01/10/16 to

30/09/1701/10/15 to

30/09/16£000 £000

31,094 29,506(3) (1)

(10) (1)

31,081 29,504

3.01/10/16 to

30/09/1701/10/15 to

30/09/16£000 £000

9,316 9,377Overseas dividends 142 42Distributions from Regulated Collective Investment Schemes Franked investment revenue 577 557 Unfranked investment revenue 9 -Bank interest 1 2Scrip dividends 336 -Underwriting commission - 16

10,381 9,994

4.01/10/16 to

30/09/1701/10/15 to

30/09/16£000 £000

4,094 3,816

Investment adviser's fees 2,265 1,859

6,359 5,675

Underwriting commission

Net capital gains

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 scrip dividends,the value of the enhancement is treated as capital.

Scrip dividends

Underwriting commission is recognised when the issue takes place. Where the Trust isrequired to take up some or all of the shares underwritten, an appropriate proportion of thecommission earned is deducted from the cost of those shares.

Currency lossesNon-derivative securities

Handling charges

Net capital gains

Revenue

Other expenses

Special dividends

Total expenses

Total revenue

Management charge

Expenses

Expenses include irrecoverable VAT where applicable.

UK dividends

All expenses are paid by the Manager out of the Annual Management Charge withexception of the Investment Adviser fees and AMC fee rebates. This includes current yearAudit Fee of £9,360 (30/09/16: £9,360).

Payable to the Manager

17




5.01/10/16 to

30/09/1701/10/15 to

30/09/16£000 £000

(a)3 3

(b)

4,022 4,319

804 864

(1,979) (1,987)(67) -(28) (8)

1,270 1,1313 3

3 3

(c)

(d)

6.

01/10/16 to 30/09/17

01/10/15 to 30/09/16

£000 £000Final distribution 3,960 4,029

130 362(71) (75)

4,019 4,316

7.30/09/17 30/09/16

£000 £000182 426265 -328 215

3 1- 4

778 646

Irrecoverable overseas tax

Sales awaiting settlement

Total debtors

Accrued revenueIncome tax recoverable

Add: Revenue deducted on cancellation of units

Amounts receivable for creation of units

Factors affecting total tax charge for the year:

Debtors

Non taxable foreign dividends

Analysis of charge in year:

Overseas tax recoverable

Taxation

At the year end, after offset against revenue taxable on receipt, there is a potential deferredtax asset of £7,795,364 (30/09/16: £6,525,602) relating to surplus management expenses.No deferred tax asset was recognised in the current or prior year as it was consideredunlikely the Trust would generate sufficient taxable profits in the future to utilise theseamounts.

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

Deferred taxation:

Net distribution for the year

The distribution takes 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

Net revenue before taxation

The tax assessed for the year is lower than the standard rate of corporation tax in the UK foran authorised unit trust of 20% (2016: 20%). The differences are explained below:

Factors that may affect future tax charges

Corporation Tax at 20% (2016: 20%)

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

Movement in excess management expensesIrrecoverable overseas tax

Effects of:

Non taxable scrip dividendsUK dividends not subject to corporation tax

Total tax charge for year (note 5a)

Distribution

18




8.30/09/17 30/09/16

£000 £000341 707

7 1,335720 648

1,068 2,690

9.

Opening units in issue

Units converted Units Created

Units Cancelled

Closing units in issue

2,141,000 - 297,492 (482,372) 1,956,120182,978,185 - 10,209,250 (13,922,214) 179,265,221

- - 6,402 - 6,402- - 12,039 - 12,039

10.

11.

12. Derivatives and other financial instruments

●

●

Equity shares; units in collective investment schemes and;

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.

All transactions with related parties (connected persons) have been entered into in theordinary course of business and on normal commercial terms.

Related party transactions

Units in issue

In accordance with the investment objectives, as stated on page 2, the Trust held certainfinancial instruments. These comprise:

Purchases awaiting settlementAmounts payable for cancellation of unitsAccrued expenses

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 UK Growth Unit Trust. The value ofthese investments at the year end was £176,035,237 (30/09/16: £158,903,229).

Other creditors

Total other creditors

St. James's Place Unit Trust Group Limited together with the subsidiaries including associatesare related parties and regarded as controlling parties by virtue of having the ability to act inrespect 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 to St. James's Place Unit Trust Group Limited at the yearend in respect of these transactions was £343,829 (30/09/16: £1,642,276).

Capital commitments and contingent liabilities

On 30 September 2017, the Trust had no capital commitments (30/09/16: £nil) and nocontingent liabilities (30/09/16: £nil).

Reconciliation of the unit movement in the year:

L Income L AccumulationH AccumulationY Accumulation

19




13.

●

●

●

(a)

01/10/16 to 30/09/17

01/10/15 to 30/09/16

% %15.61 15.5615.85 15.8515.81 15.67

(b)

●

●

● Movements in exchange rates affect the revenue received.

The revenue and capital value of the Trust's investments can be affected by currencytranslation movements as a proportion of the Trust's asset and revenue are denominated incurrencies other than sterling, which is the Trust's functional currency.

Foreign currency risk

The Manager’s objectives in managing investment risk are to ensure that the investmentprofile of the Trust is consistent with its stated investment objectives and risk profile, and toensure appropriate liquidity. Day to day responsibility for managing investment risk isdelegated to the Investment Adviser, who is required to manage the Trust in accordancewith FCA regulations, the Prospectus and the terms of their Investment ManagementAgreement with the Manager. The Manager monitors the activities of the InvestmentAdviser, through a variety of mechanisms including the following:

The main risks arising from the Trust's financial instruments are market price risk, foreigncurrency risk, credit risk and liquidity risk. The Manager's policies for managing these risksare summarised below. These policies have remained unchanged since the beginning of theyear to which these financial statements relate (same for 2016).

Lowest monthly VaRHighest monthly VaRAverage monthly VaR

Movements in exchange rates affect short term timing differences; and

The actual VaR is summarised in the table below:

The sensitivity of the fund to market risk is calculated using the Value-at-Risk (VaR)approach. VaR is a mathematical-statistical concept and is commonly used as a standardmeasure of risk in the financial sector. The maximum potential loss that a fund could sufferunder normal market conditions within a given time horizon and a certain degree ofconfidence is estimated. An absolute VaR is calculated using the historic return series of eachfund. Using the Historical VaR approach, a 1% 20-day VaR using 10 years of historical dailydata is calculated. An annualised VaR limit of 20% is considered for the fund.

No currency risk table has been provided as the overall exposure to foreign currencies is lessthan 10% of the assets of the Trust.

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

Risk management

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

Movements in exchange rates affect the value of investments;

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

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 and rewardprofile is maintained.

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

Market price risk

20




(c) Interest rate risk

(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.

Interest receivable on bank deposits or payable on bank overdraft positions will be affectedby fluctuations in interest rates.

Maturity profile of financial liabilities

Credit risk

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.

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 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.

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.

Derivative risk

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.

21




14.

01/10/16 to 30/09/17

01/10/15 to 30/09/16

01/10/16 to 30/09/17

01/10/15 to 30/09/16

£000 £000 £000 £000- 460 1,635 3,125

92,484 50,802 95,129 79,064

92,484 51,262 96,764 82,189

- - - -78 43 (89) (58)

78 43 (89) (58)

- - - -453 244 (1) (1)

453 244 (1) (1)

531 287 (90) (59)

93,015 51,550 96,674 82,130

01/10/16 to 30/09/17

01/10/15 to 30/09/16

01/10/16 to 30/09/17

01/10/15 to 30/09/16

% % % %

- - - -0.08 0.08 0.09 0.07

- - - -0.49 0.48 0.00 0.00

Collective Investment SchemesEquities

Total taxes

Total transaction cost expressed as a percentage of asset type cost.

Total transaction cost expressed as a percentage of net asset value.

01/10/16 to 30/09/17

Sales

Commissions

Trades in the year after transaction costs

Purchases Sales

01/10/15 to 30/09/16

Total commissions


Purchases

Taxes

Total costs

%%Commissions 0.05

0.15


Portfolio transaction costs

Analysis of total trade costs.

Total costs

Trades in the year before transaction costs

Commissions

Taxes

The average portfolio dealing spread at the balance sheet date was 0.06% (30/09/16:

0.07%). There have been no soft commission arrangements relating to dealings in the property of thescheme during the year (30/09/16: £nil).

0.20

0.040.09

0.13

Average portfolio dealing spread

TaxesCollective Investment SchemesEquities


22




15.

Assets Liabilities Assets Liabilities£000 £000 £000 £000

269,626 - 245,005 -27,788 - 24,556 -

- - - -

297,414 - 269,561 -Total fair value

Level 1: The unadjusted quoted price in an active market for identical assets or liabilities thatthe entity can access at the measurement date.

Level 2: Inputs other than quoted prices included within Level 1 that are observable (i.e.developed using market data) for the asset or liability, either directly or indirectly.

Level 3: Inputs are unobservable (i.e. for which market data is unavailable) for the asset orliability.

Fair value

Valuation technique

30/09/17 30/09/16

Level 1Level 2Level 3

The intention of a fair value measurement is to estimate the price at which an asset or aliability could be exchanged in the market conditions prevailing at the measurement date.The measurement assumes the exchange is an orderly transaction (that is, it is not a forcedtransaction, involuntary liquidation or distress sale) between knowledgeable, willingparticipants on an independent basis.

The purpose of the fair value hierarchy is to prioritise the inputs that should be used tomeasure the fair value of assets and liabilities.

The highest priority is given to quoted prices at which a transaction can be entered into andthe lowest priority to unobservable inputs.

The fund has early adopted the March 2016 amendment to section 34 of FRS102 (Fair ValueHierarchy disclosures that simplify preparation of financial instrument disclosure), which isapplicable to accounting periods beginning on or after 1 January 2017 with earlierapplication permitted.

23

Group 1

Group 2

L Income

Netrevenue Equalisation


30/11/17

Distributions paid

30/11/16

Group 1 (p) (p) (p) (p)Final 1.970 - 1.970 1.991

Group 2 (p) (p) (p) (p)Final 1.279 0.691 1.970 1.991

L Accumulation



30/11/17

Distributions paid

30/11/16

Group 1 (p) (p) (p) (p)Final 2.188 - 2.188 2.179

Group 2 (p) (p) (p) (p)Final 1.406 0.782 2.188 2.179

H Accumulation



30/11/17

Group 1 (p) (p) (p)Final 1.032 - 1.032

Group 2 (p) (p) (p)Final 1.032 - 1.032

Y Accumulation



30/11/17

Group 1 (p) (p) (p)Final 2.697 - 2.697

Group 2 (p) (p) (p)Final 2.697 - 2.697

Final Units purchased on or after 1 October 2016 to 30 September 2017

H Accumulation and Y Accumulation units were made available on 1 December 2016.

Final Units purchased prior to 1 October 2016


Distribution Tables

Distribution in pence per unit

24

(a)

(b)

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

A contract note confirming the subscription or redemption price and the number of units involvedwill be forwarded, together with a cancellation notice, where appropriate, on the next businessday.

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.

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.

Tax Certificates

Income distributions are made annually on or before the 30 November.

Accumulation Distributions

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


General Information

Management Charges

A Preliminary Charge of 5 per cent which is included in the offer price of the Units. For ClassY units the Preliminary Charge is 0 per cent.

Income Distributions

The Trust Deed permits the following management charges which are receivable by the Manager:

An Annual Management Charge at a rate of 1.35 per cent for Class L Income andAccumulation Units; 1.85 per cent for Class H Accumulation Units; and 0.66 per cent forClass Y Accumulation Units of the value of the Trust.

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 certificates will be enclosed if income unitholders receive payment by cheque.

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 2017/2018 exceed £11,300(2016/2017 £11,100).

Renaming of Unit Classes

On 10 October 2016 the Manager denominated the existing unit class in the fund as ‘Class L’units. This change will have no impact on the way in which the fund is managed or how dailyunit prices are calculated.

H & Y Unit Classes

On 10 October 2016 the Manager launched Class H and Class Y accumulation unit classes.Restrictions apply to all Class H and Class Y units, please see the Prospectus for details. Pleasenote that Class H and Class Y accumulation units were first issued on 1 December 2016.

25


General Information (continued)

RemunerationSt. James’s Place PLC (“SJP PLC”) personnel providing services to St. James’s Place Unit TrustGroup Limited (“the Manager ”) are subject to the SJP PLC Remuneration Policy (the“Remuneration Policy”). The Remuneration Policy reflects the remuneration requirements of theUCITS V Directive (2014/91/EU). Details of the Remuneration Policy are available throughwww1.sjp.co.uk/about-st-james-place/our-responsibilities/corporate-governance which is updated periodically to reflect changes to the policy.

Following the implementation of UCITS V in the UK on 18 March 2016, all authorised UCITSManagers are required to comply with the UCITS V Remuneration Code from the start of theirnext accounting year. Under the UCITS V Directive, the Manager is required to discloseinformation relating to the remuneration paid to its staff for the financial year, split into fixed andvariable remuneration. The Manager’s Financial Year end is 31 December, it is thereforeanticipated that the Manager’s Remuneration Policy and associated financial disclosures will bemade within the Annual Reports starting from 31 December 2017, following its first fullperformance period. Prior to this date, and in line with the FCA's guidance on the UCITS Vremuneration disclosures, the Manager would be part way through its first performance periodand the information available would not be relevant or provide a proper basis for comparison.

26

Perivan Financial Print 247640 UK Growth (11/17)

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.