Annual Report
Standard Life Investments Dynamic Distribution Fund
Annual Report and Financial Statements
For the year ended 31 March 2015
Contents
1
Trust Profile and Information*
2
Statement of Manager’s Responsibilities
2
Manager’s Statement*
3
Statement of Trustee’s Responsibilities
3
Report of the Trustee
4
Independent Auditors’ Report
6
The Registrar of the Trust
7
Investment Report*
9
Comparative Tables
12
Financial Statements
14
Portfolio Statement*
15
Notes to the Financial Statements
22 Distribution Tables
28 Treatment by Corporate Unitholders
* These items comprise the Manager’s Report for the purposes
of the rules contained in the Collective Investment Schemes
sourcebook (“the Sourcebook”).
Standard Life Investments Dynamic Distribution
Fund Annual Report & Financial Statements
Trust Profile and Information
of companies managing AIFs and enhances transparency towards
investors and as such Standard Life Investments (Mutual Funds)
Limited complies with all the relevant requirements of the Directive
in full.
Launch Date
14 February 2006
Objective
The objective of the Standard Life Investments Dynamic Distribution
Fund (“the Trust”) is to provide a total return from income and
capital appreciation over the longer term.
Policy
The policy of the Trust is to invest predominantly in a range of
collective investment schemes managed or operated within or
outwith the Standard Life Investments group to achieve a broad
exposure to diversified investments, including equities, interest
bearing securities and property. The Manager may, from time to
time, select collective investment schemes managed or operated
outside the Standard Life Investments group. The underlying funds
may invest anywhere in the world with the Trust maintaining a UK
focus. The Trust may also invest in transferable securities issued
anywhere in the world.
Remuneration Policy
Following the implementation of AIFMD in the UK, all authorised
AIFM’s are required to comply with the AIFMD Remuneration Code.
On 7 July Standard Life Investments (Mutual Funds) Limited became
an AIFM. The AIFM’s Financial Year end is 31 December and is
anticipated that the AIFM’s Remuneration Policy and associated
financial disclosures will be made within these Annual Reports
from 31 December 2015, following its first full performance period.
Prior to this date the AIFM would be part way through its first
performance period and the information available would not be
relevant or provide a proper basis for comparison.
Benchmark
IA Mixed Investment 20-60% shares
Non-Sterling denominated assets may be hedged back to Sterling.
Reporting dates
Risk Profile
Interim
30 September
While the level of income provision is likely to be relatively stable,
the investor must be able to accept significant temporary losses to
capital and the possibility of fluctuations in the income level due to
the volatile nature of equity, bond, property and currency markets,
and should therefore have an investment time horizon of at least 5 years.
Annual
31 March
Interim
1 July, 1 October, 1 January
Alternative Investment Fund Managers Directive
Annual
1 April
Standard Life Investments (Mutual Funds) Limited was authorised
by the Financial Conduct Authority (“FCA”) as a full scope UK
Alternative Investment Fund Manager (“AIFM”), in accordance
with the newly created, European wide, Alternative Investment
Fund Managers Directive (“AIFMD”), with permission to manage
Alternative Investment Funds (“AIFs”). At this time the Standard Life
Investments Dynamic Distribution Fund as a non-UCITS scheme,
became an AIF. The AIFMD is intended to strengthen the monitoring
XD dates
Payment date
Interim
31 August, 30 November, 28 February (29
February in a leap year)
Annual
31 May
Trust Information
Manager
Directors of the
Manager
Secretary of the
Manager
Trustee
Independent
Auditors
Registrar
Investment
Adviser
Standard Life
Investments
(Mutual Funds)
Limited
1 George Street
Edinburgh
EH2 2LL
A.S. Acheson
S.A. Fitzgerald
J. Lowe
D.E. Thomas
S.R. Wemyss
R. J. McKillop
L. Scott
S.E. Crewes
(resigned
26 May 2015)
Citibank
International
Limited*
Citigroup Centre
Canada Square
Canary Wharf
London
E14 5LB
Pricewaterhouse
Coopers LLP
Atria One
144 Morrison
Street
Edinburgh
EH3 8EX
International
Financial
Data Services
Limited**
IFDS House
St Nicholas Lane
Basildon
Essex
SS15 5FS
Standard Life
Investments
Limited
1 George Street
Edinburgh
EH2 2LL
0345 113 6966
H.S. Kidd
(appointed
26 May 2015)
*Citibank International plc changed its name to Citibank International Limited on 31 October 2014.
**Prior to 13 July 2015 the Registrar was The Bank of New York Mellon (International) Limited.
1
Standard Life Investments Dynamic Distribution Fund Annual Report & Financial Statements
Standard Life Investments Dynamic Distribution
Fund Annual Report & Financial Statements
Statement of Manager’s Responsibilities
Manager’s Statement
The Regulations require the Manager to prepare financial statements
for each annual and half-yearly accounting period which give a
true and fair view of the financial position of the Trust and of its net
revenue and net gains on the property of the Trust for the year. In
preparing the financial statements the Manager is required to:
The Manager is Standard Life (Mutual Funds) Limited which is
authorised and regulated by the Financial Conduct Authority (FCA)
for investment business.
▸▸ select suitable accounting policies and then apply them
consistently;
▸▸ comply with the disclosure requirements of the Statement of
Recommended Practice for Financial Statements of Authorised
Funds issued by the IMA in October 2010;
▸▸ follow generally accepted accounting principles and applicable
accounting standards;
▸▸ make judgements and estimates which are prudent;
▸▸ keep proper accounting records which enable it to demonstrate
that the financial statements as prepared comply with the
above requirements; and
▸▸ prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the Trust will continue
in operation.
The Manager is responsible for the management of the Trust in
accordance with the Trust Deed, Prospectus and the Sourcebook
and for taking reasonable steps for the prevention and detection of
fraud and other irregularities.
The Trust is constituted as a non-UCITS retail scheme for the
purposes of the FCA roles.
Copies of the most recent Prospectus are available online at
standardlifeinvestments.com.
Distributions are made from positive net revenue where gross
revenue exceeds expenses and tax. The total return consists
of investment and currency gains and losses in addition to net
revenue. In situations where the Trust has a negative total return
but a positive net revenue position, there will be a distribution.
We hereby certify the Annual Report and Financial Statements on
behalf of the Directors of the Manager, Standard Life Investments
(Mutual Funds) Limited.
Directors
Edinburgh
24 July 2015
The Manager confirms that suitable accounting policies have
been used and applied consistently and reasonable and prudent
judgements and estimates have been made in the preparation of
the financial statements for the year ended 31 March 2015.
The Manager also confirms that applicable accounting standards
have been followed and that the financial statements have been
prepared on a going concern basis.
Standard Life Investments Dynamic Distribution Fund Annual Report & Financial Statements
2
Standard Life Investments Dynamic Distribution
Fund Annual Report & Financial Statements
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 for the holders of units. Under the
Sourcebook relating to the Reports it is the duty of the Trustee to
enquire into the conduct of the Manager in the management of
the Trust in each annual accounting year and report thereon to
unitholders in a report which shall contain the matters prescribed
by the Sourcebook. A copy of the Trustee’s report is included below.
Report of the Trustee to the Unitholders
of the Standard Life Investments Dynamic
Distribution Fund
Having carried out such procedures as we considered necessary
to discharge our responsibilities as Trustee of the Trust, it is our
opinion based on the information available and the explanations
provided, that the Manager has, in all material respects, managed
the Trust during the year to 31 March 2015, in accordance with the
investment and borrowing powers and restrictions applicable to the
Trust, and otherwise in accordance with the provisions of the Trust
Deed and the rules in the FCA’s Collective Investment Schemes
Sourcebook.
Citibank International Limited
London
24 July 2015
3
Standard Life Investments Dynamic Distribution Fund Annual Report & Financial Statements
Standard Life Investments Dynamic Distribution
Fund Annual Report & Financial Statements
Independent Auditors’ Report to the Unitholders of Dynamic Distribution Fund
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 2015 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 Trust Deed.
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 Standard Life Investments Dynamic
Distribution Fund (the “Trust”), which are prepared by Standard
Life Investments (Mutual Funds) Limited (the “Authorised Fund
Manager”), comprise :
▸▸ the balance sheet of the Trust as at 31 March 2015;
▸▸ 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.
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 & Financial Statements (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.
Responsibilities for the financial statements and the audit
Our responsibilities and those of the Authorised Fund
Manager
As explained more fully in the Statement of Manager’s
Responsibilities set out on page 2, 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.
Standard Life Investments Dynamic Distribution Fund Annual Report & Financial Statements
4
Standard Life Investments Dynamic Distribution
Fund Annual Report & Financial Statements
Independent Auditors’ Report
(Continued)
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.
Notes:
a. The maintenance and integrity of the Standard Life Investments
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.
b. Legislation in the United Kingdom governing the preparation
and dissemination of financial statements may differ from
legislation in other jurisdictions.
PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
Edinburgh
24 July 2015
5
Standard Life Investments Dynamic Distribution Fund Annual Report & Financial Statements
Standard Life Investments Dynamic Distribution
Fund Annual Report & Financial Statements
The Registrar of the Trust
The Manager is the Registrar of the Standard Life Investments
Dynamic Distribution Fund. From 13 July 2015 the Manager has
delegated certain aspects of the registrar’s operational duties to
International Financial Data Services Limited (“IFDS Limited”).
The Registrar is responsible to the Trustee for the maintenance of a
register of unitholders in the Trust. The register can be inspected free
of charge at the offices of IFDS Limited at IFDS House, St Nicholas
Lane, Basildon, Essex, SS15 5FS.
The Registrar is also responsible for the distribution of the Interim
and Annual Report and Financial Statements and tax vouchers to
unitholders at the addresses recorded on the register.
Prior to 13 July 2015 the Registrar was The Bank of New York Mellon
(International) Limited.
Standard Life Investments Dynamic Distribution Fund Annual Report & Financial Statements
6
Standard Life Investments Dynamic Distribution
Fund Annual Report & Financial Statements
Investment Report
Trust Manager: Iain McLeod
Market review
Global equities delivered a positive return over the 12 months
to the end of March 2015, outperforming most government
and corporate bond markets. Driving sentiment was ongoing
accommodative monetary policy from the world’s central banks,
improving US economic data and positive corporate activity. There
were headwinds, however, notably evolving geopolitical tensions
(Russia/Ukraine and the Middle East), worries about a US Federal
Reserve (‘Fed’) rate-hike, concerns over China’s economy and a
disruptive Greek election outcome. The plunge in the oil price and
US dollar strength also created winners and losers over the year.
Divergent monetary policy was one of the main forces behind
markets during the year. China, Japan and Europe remained firmly
on an accommodative monetary tack, while the US Fed finally
concluded its bond-buying programme, prompting speculation over
when it might raise rates. However, despite improving US economic
momentum, the Fed nonetheless resisted the urge to tighten policy
without firmer evidence of a sustainable recovery. For its part, in
January the European Central Bank (ECB) finally announced a bold,
if belated, programme of quantitative easing aimed at kick-starting
the Eurozone economy and staving off deflation. This gave a
significant lift to global equities in the final three months.
Core government bonds delivered positive returns in the review
period and yields edged still lower, driven largely by ongoing
support from global central banks.
Investment activity
The investment strategy of the Trust is to invest in a range of funds
managed by Standard Life Investments to achieve a diversified
investment mix across equities, bonds and property.
Responding to strong cash inflows, we made a number of purchases
in the first three months, but without altering the overall investment
allocation. In the second quarter of the period, we delayed
investing new cash, as we had a number of short-term concerns
about the market. Over this time, we allowed our cash allocation to
rise from around 6.25% to almost 10.80%, as we waited for a more
opportune buying window. In the latter half of the review period, we
resumed our investment of cash inflows. Our purchases favoured
UK equity and fixed interest but, as before, we made no material
changes to asset allocation.
7
The following table highlights the material (greater than 5% of
opening Net Asset Value) purchases made to the portfolio in the
year to 31 March 2015:
Purchases
Cost
£’000
SLI UK Equity High Income Fund
12,450
Other purchases
42,627
Total purchases
55,077
The total proceeds from sales was £499,000.
Performance
During the year the Trust returned 8.29% compared with the IA
Mixed Investment 20-60% Shares sector average of 8.51% (source:
Morningstar).
Our investments in the UK Property, Global REITS and Emerging
Market Debt Funds contributed positively in the first three months,
and indeed for much of the review period, as investors sought
out higher-yielding assets. We also saw positive returns from the
Corporate Bond Fund for much of the year.
In the first quarter of the review period, the worst performer was
the UK Smaller Companies Fund. A number of other UK equity funds
also posted losses, including the UK Equity Unconstrained and UK
Equity Recovery Funds. These three funds were again among the
largest negative contributors in the subsequent quarter.
In the final quarter of the period under review, Absolute Return
Global Bond Strategies Fund again underperformed other funds
held, although nevertheless delivered a positive return to recover
ground lost in the previous quarter.
Outlook and future strategy
Although equity markets have made a strong start to 2015, many
risks remain. These include simmering geopolitical tensions,
Greece’s ongoing bailout negotiations and the possibility of a
pronounced slowdown in China. Market participants have also
been factoring in a US rate hike for a while which, when it happens,
could have a knock-on effect on a number of emerging markets.
Nonetheless, we think that the global economic recovery can
continue over the medium term: central bank policy remains
supportive, inflation is contained and traditional imbalances,
such as current account or credit growth issues, are relatively low.
This should allow for positive corporate earnings growth.
Standard Life Investments Dynamic Distribution Fund Annual Report & Financial Statements
Standard Life Investments Dynamic Distribution
Fund Annual Report & Financial Statements
Investment Report
(continued)
There are a number of reasons to expect core government bond
yields to remain relatively well-anchored in the near term, given the
launch of the ECB’s quantitative easing programme, persistently
weak inflation readings and a gradual approach to interest rate
hikes by the US Fed. These factors, combined with a steadily
improving global economic backdrop, should encourage investors
to continue chasing yield. This should prove positive for risk assets,
including corporate bonds.
We expect compelling positive total returns for UK commercial real
estate investors over a three-year period, with a solid income yield
and reasonable capital growth expectations contributing to returns.
With improving economic drivers and a constrained pipeline of
future new developments, real estate remains attractive. Rising
interest rates are an emerging risk. However, there is a reasonable
buffer in pricing to compensate, should investors price in any
further acceleration of rate rises.
Synthetic Risk & Reward Indicator
Lower risk
Typically lower rewards
1
2
3
Higher risk
Typically Higher rewards
4
5
6
7
Cautionary note
It should be remembered that past performance is not a guide
to future performance. The value of investments may go down as
well as up and, therefore, investors may not get back the amount
originally invested.
Composition of Portfolio
%
as at 31 March 2015
Bond Funds (29.83%)
30.23
Equity Funds (53.35%)
53.29
Property Funds (14.38%)
15.22
Net other assets (2.44%)
1.26
The percentage figures in brackets show the comparative holding as
at 31 March 2014.
Ten Largest Holdings (by market value)
%
as at 31 March 2015
This indicator reflects the volatility of the Trust’s unit price over the
last five years which in turn reflects the volatility of the underlying
assets in which the Trust invests. Historical data may not be a
reliable indication of the future. Where the unit class does not have
a history of five years, an alternative unit class or a representative
benchmark has been used to show how the Trust price may have
behaved over the period.
The Synthetic Risk Reward Indicator was changed from category 5 to
4, effective 8th January 2015. Please note that these amendments
are not due to a change in the investment objectives of the Trust,
but are due to market movements during the reporting period.
The current rating, which is the same for all unit classes, is not
guaranteed and may change if the volatility of the assets in which
the Trust invests changes. The lowest rating does not mean risk free.
SLI UK Equity High Income Fund
26.93
SLI Corporate Bond Fund
13.89
SLI UK Property Fund
13.48
SLI Higher Income Fund
10.11
SLI UK Equity Income Unconstrained Fund
10.08
SLI UK Equity Unconstrained Fund
7.33
SLI Strategic Bond Fund
3.50
SLI UK Smaller Companies Fund
2.74
SLI Global Absolute Return Strategies Fund
2.17
SLI Global Equity Income Fund
2.06
All investment involves risk. This Trust offers no guarantee against
loss or that the Trust’s objective will be attained.
For further information on the risks that may not be fully captured
by the risk and reward indicator, please refer to the current Key
Investor Information Document (KIID).
Standard Life Investments Dynamic Distribution Fund Annual Report & Financial Statements
8
Standard Life Investments Dynamic Distribution
Fund Annual Report & Financial Statements
Comparative Tables
Accounting
period
Retail accumulation
Institutional accumulation
Retail income
Institutional income
Institutional regulated income
Standard Life accumulation
Institutional regulated accumulation
Platform 1 accumulation
Platform 1 income
9
Net asset
Net asset value
Units
in issue
value
per unit
£’000
p
31 March 2013
95,305
67.24
141,749,087
31 March 2014
94,828
75.89
124,959,726
31 March 2015
30,253
81.56
37,090,408
31 March 2013
810
70.71
1,145,924
31 March 2014
14,870
80.45
18,483,416
31 March 2015
26,916
87.09
30,907,441
31 March 2013
9,473
51.90
18,253,139
31 March 2014
8,377
56.43
14,843,929
31 March 2015
6,369
58.67
10,855,680
31 March 2013
385
54.84
700,996
31 March 2014
2,506
60.10
4,170,377
31 March 2015
4,272
62.93
6,788,088
31 March 2013
0
55.33
693
31 March 2014
0
60.79
693
31 March 2015
0
63.83
693
31 March 2013
1
71.51
1,942
31 March 2014
167
81.84
204,329
31 March 2015
293
89.03
329,256
31 March 2013
85,857
71.82
119,546,921
31 March 2014
94,474
81.84
115,435,703
31 March 2015
166,553
88.81
187,532,331
31 March 2013
48
57.86
83,047
31 March 2014
6,672
65.67
10,159,212
31 March 2015
44,376
71.04
62,465,612
31 March 2013
130
55.56
233,422
31 March 2014
2,807
60.76
4,619,341
31 March 2015
11,846
63.57
18,635,275
Standard Life Investments Dynamic Distribution Fund Annual Report & Financial Statements
Standard Life Investments Dynamic Distribution
Fund Annual Report & Financial Statements
Comparative Tables
(continued)
Retail accumulation
Institutional accumulation
Retail income
Institutional income
Institutional regulated income
Standard Life accumulation
Calendar
Distribution
Highest
Lowest
year
per unit
price
price
p
p
p
2010
1.8845
57.68
49.10
2011
2.2970
59.80
50.80
2012
2.4557
63.24
54.46
2013
2.7282
74.73
63.68
2014
2.6381
79.93
73.96
2015**
0.7264
84.25
78.93
2010
1.9616
59.59
50.52
2011
2.3418
62.03
52.80
2012
2.6031
66.37
56.72
2013
2.9731
79.07
66.84
2014
2.8113
85.17
78.30
2015**
0.7767
89.94
84.14
2010
1.6351
48.99
42.39
2011
1.8972
49.95
41.69
2012
2.0006
49.79
44.37
2013
2.1035
56.29
49.76
2014
1.9583
58.39
54.90
2015**
0.5269
61.15
57.29
2010
1.6936
50.82
43.80
2011
1.9759
51.96
43.52
2012
2.0989
52.50
46.40
2013
2.3113
59.79
52.45
2014
2.0939
62.49
58.70
2015**
0.5657
65.58
61.35
2010
1.7103
51.17
44.06
2011
1.9953
52.36
43.89
2012
2.1067
53.06
46.82
2013
2.2268
60.62
53.00
2014
2.1303
63.36
59.60
2015**
0.5694
66.53
62.18
2010
1.9700
60.12
50.88
2011
2.3719
62.57
53.32
2012
2.6661
67.18
57.33
2013
3.5227
80.36
67.66
2014
2.3815
86.93
79.60
2015**
0.7952
91.94
85.92
Standard Life Investments Dynamic Distribution Fund Annual Report & Financial Statements
10
Standard Life Investments Dynamic Distribution
Fund Annual Report & Financial Statements
Comparative Tables
(continued)
Institutional regulated accumulation
Platform 1 accumulation
Platform 1 income
Calendar
Distribution
Highest
Lowest
year
per unit
price
price
p
p
p
2010
1.9695
60.34
51.11
2011
2.3827
62.86
53.53
2012
2.6397
67.38
57.52
2013
2.9115
80.40
67.86
2014
2.8567
86.78
79.63
2015**
0.7916
91.72
85.75
2012*
1.4581
54.34
47.62
2013
2.6943
64.58
54.72
2014
2.3038
69.48
63.94
2015**
0.6358
73.37
68.64
2012*
1.4410
53.23
47.62
2013
2.4833
60.37
53.17
2014
2.1251
63.13
59.31
2015**
0.5731
66.24
61.98
*from commencement of the unit class on 18 April
**to 31 March
Ongoing Charges Figure (OCF)
2015
2014
Retail accumulation
1.62%
1.62%
Institutional accumulation
0.77%
0.62%
Retail income
1.62%
1.62%
Institutional income
0.77%
0.62%
Institutional regulated income
0.42%
0.42%
Standard Life accumulation
0.12%
0.12%
Institutional regulated accumulation
0.42%
0.42%
Platform 1 accumulation
0.82%
0.92%
Platform 1 income
0.82%
0.92%
The ongoing charges figure (OCF) shows the annualised operating expenses of each unit class as a percentage of the average net
asset value of the class over the same period.
With effect from 9 June 2014 the management fee increased from 0.50% to 0.65% for Institutional units and decreased from 0.75%
to 0.65% for Platform units.
11
Standard Life Investments Dynamic Distribution Fund Annual Report & Financial Statements
Standard Life Investments Dynamic Distribution
Fund Annual Report & Financial Statements
Financial Statements
Statement of Total Return
for the year ended 31 March 2015
2015
Notes
£’000
£’000
2014
£’000
£’000
Income:
Net capital gains
4
Revenue
6
9,475
8,504
Expenses
7
(2,131)
(2,057)
Finance costs: Interest
9
(29)
(79)
Net revenue before taxation
Taxation
13,701
7,315
8
Total return before distributions
Finance costs: Distributions
6,368
(576)
Net revenue after taxation
9
Change in net assets attributable
to unitholders from investment
activities
19,032
(564)
6,739
5,804
20,440
24,836
(8,704)
(7,509)
11,736
17,327
Statement of Change in Net Assets Attributable to Unitholders
for the year ended 31 March 2015
2015
£’000
Opening net assets attributable to
unitholders
Amounts receivable on issue of
units
Less: Amounts payable on
cancellation of units
£’000
224,701
145,314
Stamp duty reserve tax
£’000
192,009
42,553
(99,053)
(34,272)
46,261
Change in net assets attributable
to unitholders from investment
activities (see above)
Retained distribution on
accumulation units
Closing net assets attributable to
unitholders
2014
£’000
(8)
8,281
(44)
11,736
17,327
8,188
7,128
290,878
224,701
Standard Life Investments Dynamic Distribution Fund Annual Report & Financial Statements
12
Standard Life Investments Dynamic Distribution
Fund Annual Report & Financial Statements
Financial Statements
(continued)
Balance Sheet
as at 31 March 2015
2015
Notes
£’000
£’000
2014
£’000
£’000
Assets
Investment assets
Debtors
287,208
10
Cash and bank balances
219,220
4,314
4,610
23
1,338
Total other assets
Total assets
4,337
5,948
291,545
225,168
Liabilities
Creditors
Distribution payable on
income units
(465)
(325)
(202)
(142)
Total other liabilities
(667)
(467)
Total liabilities
(667)
(467)
Net assets attributable to
unitholders
13
11
290,878
Standard Life Investments Dynamic Distribution Fund Annual Report & Financial Statements
224,701
Standard Life Investments Dynamic Distribution
Fund Annual Report & Financial Statements
Portfolio Statement
as at 31 March 2015
Market
Holding
Collective Investment Schemes (97.56%)
Bond Funds (29.83%)
245,553 SLI Absolute Return Global Bond Strategies Fund
79,705,426 SLI Corporate Bond Fund
4,314,269 SLI Emerging Market Debt Fund
59,958,684 SLI Higher Income Fund
9,414,931 SLI Short Duration Credit Fund
Percentage
value
of total
£’000
net assets
287,208
98.74
87,924
30.23
2,753
0.95
40,395
13.89
2,281
0.78
29,410
10.11
2,916
1.00
10,169
3.50
155,006
53.29
7,123,259 SLI Global Absolute Return Strategies Fund
6,303
2.17
8,374,187 SLI Global Equity Income Fund
5,999
2.06
14,780,547 SLI Strategic Bond Fund
Equity Funds (53.35%)
2,124,410 SLI UK Equity High Alpha Fund
2,186
0.75
117,549,447 SLI UK Equity High Income Fund
78,312
26.93
29,318
10.08
3,581
1.23
12,917,909 SLI UK Equity Unconstrained Fund
21,328
7.33
6,228,985 SLI UK Smaller Companies Fund
7,979
2.74
44,278
15.22
10,834,581 SLI Global REIT Fund
5,068
1.74
39,823,467 SLI UK Property Fund
39,210
13.48
287,208
98.74
50,288,812 SLI UK Equity Income Unconstrained Fund
2,291,217 SLI UK Equity Recovery Fund
Property Funds (14.38%)
Total investment assets
Net other assets
3,670
1.26
Total Net Assets
290,878
100.00
All investments are regulated collective investment schemes within the meaning of the FCA rules unless otherwise stated.
The percentage figures in brackets show the comparative holding as at 31 March 2014.
Standard Life Investments Dynamic Distribution Fund Annual Report & Financial Statements
14
Standard Life Investments Dynamic Distribution
Fund Annual Report & Financial Statements
Notes to the Financial Statements
as at 31 March 2015
1 Accounting Policies
a) Basis of Preparation
The financial statements have been prepared on a going concern basis in accordance with the Statement of Recommended Practice
(SORP) for Authorised Funds issued Investment Management Association (IMA)* in October 2010.
b) Valuation of Investments
The investments of the Trust have been valued at close of business on the reporting date. If an investment is quoted at a single price
then it is that price which will be used. Collective investment schemes are valued by reference to their net asset value. c) Revenue
I. Distribution from collective investment schemes are recognised when they are first quoted on an ex-dividend basis.
II. Equalisation received and accrued from collective investment scheme distributions is treated as capital and distributed to
unitholders.
III. Interest from short-term deposits is recognised on a daily accruals basis.
d) Expenses
The Manager’s periodic charge is borne by the capital property of the Trust for distribution purposes. All expenses are accounted for
on an accruals basis.
e) Taxation
Tax is calculated using the marginal basis i.e. the tax effect of revenue and expenditure is allocated between capital and revenue on
the same basis as the particular item to which it relates.
f) Deferred Taxation
Deferred tax is provided for on all timing differences that have originated but not reversed by the balance sheet date. Deferred tax is
not recognised on permanent differences. Deferred tax assets are only recognised where it is more likely than not that there will be
suitable taxable profits against which the future reversal of underlying timing differences can be deducted.
g) Unit class allocation
Revenue and non unit class specific expenses are allocated daily, pro rata to the net asset value of assets attributable to each
unit class. Unit class specific expenses are allocated based on the rates as stated in the Prospectus; the Ongoing Charges Figure
disclosed within this annual report and financial statements shows the impact of the different rates of unit class specific expenses.
Tax is calculated daily at a unit class level; where one unit class is in a tax paying position but the fund as a whole is not, a transfer
is made to the other classes to compensate for this.
h) Unitholders’ rights
All unit classes have the same rights on winding-up.
*The Investment Management Association changed to the Investment Association (IA) in January 2015.
2 Distribution Policies
a) Basis of distribution
I. The distribution is calculated at a unit class level as per the unit class allocation accounting policy. All of the net revenue
available for distribution at the end of the year will be distributed or reinvested in the Trust.
15
Standard Life Investments Dynamic Distribution Fund Annual Report & Financial Statements
Standard Life Investments Dynamic Distribution
Fund Annual Report & Financial Statements
Notes to the Financial Statements
(continued) 2 Distribution Policies (continued)
II. Where the Manager has discretion about the extent to which revenue and expenses are recognised within the distributable
income property of the Trust, the approach adopted, at all times, will be governed by the aim of maximising the total return to
unitholders through limiting avoidable taxation costs.
III. The Manager has elected to recognise the equalisation received from Collective Investment Schemes within the distribution.
b) Equalisation
In order that each unitholder in the same unit class shall receive the same rate of distribution per unit the buying price of each unit
contains an amount called equalisation. This is equivalent to the net of distributable income less expenses accrued in the Trust at
the time of purchase. As part of the distribution payment the average amount of this equalisation is returned to Group 2 unitholders.
The equalisation element of the distribution to Group 2 unitholders is treated as a repayment of capital and is therefore not liable to
income tax. This amount should, however, be deducted from the cost of the units for capital gains tax purposes.
3 Risk Management Policies
In accordance with the investment objectives, the Trust may hold certain financial instruments. These comprise:
▸▸ securities held in accordance with the investment objective and policies;
▸▸ cash and short-term debtors and creditors arising directly from operations; and
▸▸ derivatives.
The main risks arising from the Trust’s financial instruments are market price, interest rate, credit and liquidity risk.
The policies for managing these risks are summarised below and have been applied consistently throughout the year, and prior year.
Market price risk
The Trust’s investment portfolio is exposed to market price fluctuations which are monitored by the Trust Manager in pursuance of
the investment objectives and policies. Adherence to investment guidelines and to investment and borrowing powers set out in the
Trust Deed, the Scheme Documents and the Collective Investment Schemes sourcebook mitigates the risk of excessive exposure to
any particular type of security or issuer.
Interest rate risk
Interest receivable on bank deposits or payable on bank overdrafts will be affected by fluctuations in interest rates. The Trust Manager
continuously reviews interest rates and inflation expectations. The assessment of this may result in a change in investment strategy.
Credit risk
All cash exposures are carefully managed to ensure that money is placed on deposit with counterparties that meet the minimum
credit rating deemed appropriate for this Trust. In certain circumstances, the Trust Manager may deliberately invest in securities
(e.g. corporate bonds) with a well defined and published credit rating. In this case the Trust would be deliberately taking credit risk
in order to seek additional rewards.
Liquidity risk
The Trust’s assets comprise mainly readily realisable securities. The main liabilities of the Trust are the redemption of any units that
investors wish to sell and the settlement of stock purchases. The Trust Manager reviews the cash and liability position continuously,
and should an increase in liquidity be required the Trust Manager will sell securities.
Numerical disclosures of the financial instruments are disclosed on page 21.
Standard Life Investments Dynamic Distribution Fund Annual Report & Financial Statements
16
Standard Life Investments Dynamic Distribution
Fund Annual Report & Financial Statements
Notes to the Financial Statements
(continued) 4 Net Capital Gains
Non-derivative securities
Equalisation component of distributions from collective investment schemes
Handling charges taken from the capital account
Net capital gains
2015
2014
£’000
£’000
13,409
18,945
294
87
(2)
13,701
0
19,032
5 Purchases, Sales and Transaction Costs
There are no transaction costs associated with the purchases or sales of investments during the year, or in the prior year.
During the year the Trust made purchases of £55,077,000 (2014: £14,674,000) and sales of £499,000 (2014: £7,131,000).
6 Revenue
Property income distributions
2015
2014
£’000
£’000
1,073
0
Deemed interest distribution on distributions from collective investment schemes
128
0
Franked component of dividend distributions from collective investment schemes
4,434
3,582
39
1,412
17
9
3,769
3,494
15
1
0
6
9,475
8,504
Unfranked non-foreign component of dividend distributions from collective
investment schemes
Unfranked foreign component of dividend distributions from collective investment
schemes
Interest distributions from collective investment schemes
Bank interest
Interest from HMRC
Total revenue
7 Expenses
2015
2014
£’000
£’000
1,863
1,861
Payable to the Manager, associates of the Manager and agents of either of them:
Manager's periodic charge taken from the capital account
Dealing charge taken from the capital account
Registration fees taken from the capital account
17
1
208
161
2,088
2,023
35
26
8
8
2,131
2,057
Payable to the Trustee, associates of the Trustee and agents of either of them:
Trustee’s fees
Other:
Audit fee
Total expenses
17
Standard Life Investments Dynamic Distribution Fund Annual Report & Financial Statements
Standard Life Investments Dynamic Distribution
Fund Annual Report & Financial Statements
Notes to the Financial Statements
(continued)
8 Taxation
2015
2014
£’000
£’000
576
564
(a) Analysis of charge in the year
UK corporation tax
Double tax relief
Overseas withholding tax
Total taxation
(4)
(3)
4
3
576
564
(b) Factors affecting current tax charge for year
The tax assessed for the year is different from the standard rate of corporation tax in the UK for authorised Unit Trusts (20%).
The differences are explained below:
Net revenue before taxation
7,315
6,368
Corporation tax at 20% (2014: 20%)
1,463
1,274
Effects of:
Franked component of dividend distributions from other collective investment
schemes
Current tax charge (Note 8(a))
9 Finance Costs
(887)
(710)
576
564
2015
2014
£’000
£’000
(a) Distributions and interest
The distributions take account of income received on the issue of units and income deducted on the cancellation of units
and comprise:
First interim distribution
1,819
1,525
Second interim distribution
2,710
2,374
Third interim distribution
1,723
1,368
Final distribution
2,596
2,298
8,848
7,565
166
119
Add: Income deducted on cancellation of units
Deduct: Income received on issue of units
Net distribution for the year
Interest
Total finance costs
(311)
(175)
8,703
7,509
29
79
8,733
7,588
Details of the distribution per unit are set out in this Trust’s distribution tables.
Standard Life Investments Dynamic Distribution Fund Annual Report & Financial Statements
18
Standard Life Investments Dynamic Distribution
Fund Annual Report & Financial Statements
Notes to the Financial Statements
(continued) 9 Finance Costs (continued)
2015
2014
£’000
£’000
(b) Difference between net revenue and distribution
Net revenue after taxation for the year
6,739
5,804
Add: Manager's periodic charge taken from the capital account
1,863
1,861
Add: Registration fees taken from the capital account
208
161
Add: Dealing charges taken from the capital account
17
1
294
87
Add: Equalisation component of distributions from collective investment schemes
Deduct: Marginal tax benefit
Net distribution for the year
10 Debtors
(405)
7,509
2015
2014
£’000
£’000
Amounts receivable from the Manager for the issue of units
1,510
1,872
Accrued revenue
1,982
1,897
822
841
4,314
4,610
2015
2014
£’000
£’000
293
72
Income tax recoverable
Total debtors
11 Creditors
Amounts payable to the Manager for the cancellation of units
Purchases awaiting settlement
Accrued expenses payable to the Manager
0
60
160
183
Accrued expenses payable to the Trustee
4
2
Other accrued expenses
8
8
465
325
Total creditors
19
(418)
8,703
Standard Life Investments Dynamic Distribution Fund Annual Report & Financial Statements
Standard Life Investments Dynamic Distribution
Fund Annual Report & Financial Statements
Notes to the Financial Statements
(continued) 12 Related Parties Transactions
Standard Life Investments (Mutual Funds) Limited, as Manager, is a related party and acts as principal in respect of all
transactions of units in the Trust.
The aggregate monies received through issue and paid on cancellation of units are disclosed in the statement of change in net
assets attributable to unitholders.
Investments in Standard Life Investments (Mutual Funds) Limited are disclosed in the portfolio statement.
Any amounts due from or due to Standard Life Investments (Mutual Funds) Limited at the end of the accounting period are
disclosed in notes 10 and 11.
Amounts payable to Standard Life Investments (Mutual Funds) Limited, in respect of periodic charge and registration services,
are disclosed in note 7 and any amounts due at the period end in note 11.
Citibank International Limited, as Trustee, is a related party. Any monies paid to the Trustee are shown in note 7. Any balance
due from or due to the Trustee and their associates are disclosed in notes 10 and 11.
2015
2014
£’000
£’000
Sale of units by Trust
14,538
1,201
Purchase of units by Trust
14,676
1,665
5,278
5,022
58.3%
69.5%
Transactions during the year with Standard Life group companies are as follows:
Distributions made by Trust
The percentage value of the Trust held by Standard Life group companies is:
All purchases and sales in the year were related party transactions. Please refer to Note 5 for total purchases and sales amounts.
Standard Life Investments Dynamic Distribution Fund Annual Report & Financial Statements
20
Standard Life Investments Dynamic Distribution
Fund Annual Report & Financial Statements
Notes to the Financial Statements
(continued) 13 Financial Instruments
Risks
The risks associated with this Trust are market price, foreign currency, interest rate, liquidity and credit risk. Narrative
disclosures are included in the risk management policies on page 16.
Short-term debtors and creditors
Short-term debtors and creditors have been excluded from all disclosures of financial instruments other than those relating to
foreign currency disclosure, which are detailed below.
Interest rate risk profile of financial assets and liabilities
The interest rate risk profile of the Trust’s financial assets and liabilities is:
Floating rate
Financial assets
financial
not carrying
assets
interest
Total
£’000
£’000
£’000
23
287,208
287,231
1,338
219,220
220,558
2015
Currency
Sterling
2014
Currency
Sterling
Floating rate interest was earned at rates based on LIBOR.
There are no amounts of non-interest bearing financial assets other than holdings in Collective Investment Schemes, which do
not have a maturity date.
21
Standard Life Investments Dynamic Distribution Fund Annual Report & Financial Statements
Standard Life Investments Dynamic Distribution
Fund Annual Report & Financial Statements
Distribution Tables
Dividend distribution
for the three months ended 30 June 2014
Group 1 - shares purchased prior to 1 April 2014
Group 2 - shares purchased between 1 April 2014 and 30 June 2014
Net income
Equalisation
Distribution paid
Distribution paid
2014
2014
2014
2013
pence per unit
pence per unit
pence per unit
pence per unit
Group 1
0.5665
-
0.5665*
0.5514
Group 2
0.3706
0.1959
0.5665*
0.5514
Retail accumulation
Institutional accumulation
Group 1
0.6012
-
0.6012*
0.5805
Group 2
0.3405
0.2607
0.6012*
-
Retail income
Group 1
0.4209
-
0.4209**
0.4260
Group 2
0.2717
0.1492
0.4209**
0.4260
Institutional income
Group 1
0.4488
-
0.4488**
0.4503
Group 2
0.3042
0.1446
0.4488**
-
Group 1
0.4235
-
0.4235**
0.4415
Group 2
-
-
Group 1
0.6116
-
0.6116*
0.5974
Group 2
0.4989
0.1127
0.6116*
0.5974
Group 1
0.6117
-
0.6117*
0.5896
Group 2
0.2800
0.3317
0.6117*
0.5896
Institutional regulated income
-
-
Standard Life accumulation
Institutional regulated accumulation
Standard Life Investments Dynamic Distribution Fund Annual Report & Financial Statements
22
Standard Life Investments Dynamic Distribution
Fund Annual Report & Financial Statements
Distribution Tables
(continued) Net income
Equalisation
Distribution paid
Distribution paid
2014
2014
2014
2013
pence per unit
pence per unit
pence per unit
pence per unit
Group 1
0.4907
-
0.4907*
0.4766
Group 2
0.2627
0.2280
0.4907*
0.4766
Group 1
0.4537
-
0.4537**
0.4574
Group 2
0.2416
0.2121
0.4537**
0.4574
Platform 1 accumulation
Platform 1 income
* Distribution accumulated on 30 June 2014
** Distribution paid on 29 August 2014
Dividend distribution
for the three months ended 30 September 2014
Group 1 - shares purchased prior to 1 July 2014
Group 2 - shares purchased between 1 July 2014 and 30 September 2014
Net income
Equalisation
Distribution paid
Distribution paid
2014
2014
2014
2013
pence per unit
pence per unit
pence per unit
pence per unit
Retail accumulation
Group 1
0.8026
-
0.8026*
0.8548
Group 2
0.5229
0.2797
0.8026*
0.8548
Institutional accumulation
Group 1
0.8551
-
0.8551*
1.0255
Group 2
0.4812
0.3739
0.8551*
1.0255
Retail income
23
Group 1
0.5916
-
0.5916**
0.6550
Group 2
0.4304
0.1612
0.5916**
0.6550
Standard Life Investments Dynamic Distribution Fund Annual Report & Financial Statements
Standard Life Investments Dynamic Distribution
Fund Annual Report & Financial Statements
Distribution Tables
(continued) Net income
Equalisation
Distribution paid
Distribution paid
2014
2014
2014
2013
pence per unit
pence per unit
pence per unit
pence per unit
Group 1
0.6340
-
0.6340**
0.8385
Group 2
0.3070
0.3270
0.6340**
0.8385
Group 1
0.6398
-
0.6398**
0.7357
Group 2
-
-
Group 1
0.8669
-
0.8669*
2.0823
Group 2
0.2821
0.5848
0.8669*
2.0823
Institutional income
Institutional regulated income
-
-
Standard Life accumulation
Institutional regulated accumulation
Group 1
0.8683
-
0.8683*
0.9413
Group 2
0.6839
0.1844
0.8683*
0.9413
Platform 1 accumulation
Group 1
0.6999
-
0.6999*
1.4687
Group 2
0.3474
0.3525
0.6999*
1.4687
Platform 1 income
Group 1
0.6470
-
0.6470**
1.1051
Group 2
0.3001
0.3469
0.6470**
1.1051
* Distribution accumulated on 30 September 2014
** Distribution paid on 28 November 2014
Standard Life Investments Dynamic Distribution Fund Annual Report & Financial Statements
24
Standard Life Investments Dynamic Distribution
Fund Annual Report & Financial Statements
Distribution Tables
(continued) Dividend distribution
for the three months ended 31 December 2014
Group 1 - shares purchased prior to 1 October 2014
Group 2 - shares purchased between 1 October 2014 and 31 December 2014
Net income
Equalisation
Distribution paid
Distribution paid
2014
2014
2014
2013
pence per unit
pence per unit
pence per unit
pence per unit
Group 1
0.4933
-
0.4933*
0.5102
Group 2
0.2846
0.2087
0.4933*
0.5102
Retail accumulation
Institutional accumulation
Group 1
0.5302
-
0.5302*
0.5310
Group 2
0.1937
0.3365
0.5302*
0.5310
Retail income
Group 1
0.3635
-
0.3635**
0.3861
Group 2
0.2510
0.1125
0.3635**
0.3861
Institutional income
Group 1
0.3891
-
0.3891**
0.3676
Group 2
0.1667
0.2224
0.3891**
0.3676
Group 1
0.4360
-
0.4360**
0.3989
Group 2
-
-
Group 1
0.5410
-
0.5410*
0.0000
Group 2
0.1243
0.4167
0.5410*
0.0000
Group 1
0.5411
-
0.5411*
0.5221
Group 2
0.3751
0.1660
0.5411*
0.5221
Institutional regulated income
-
-
Standard Life accumulation
Institutional regulated accumulation
25
Standard Life Investments Dynamic Distribution Fund Annual Report & Financial Statements
Standard Life Investments Dynamic Distribution
Fund Annual Report & Financial Statements
Distribution Tables
(continued) Net income
Equalisation
Distribution paid
Distribution paid
2014
2014
2014
2013
pence per unit
pence per unit
pence per unit
pence per unit
Group 1
0.4330
-
0.4330*
0.0780
Group 2
0.2204
0.2126
0.4330*
0.0780
Group 1
0.3933
-
0.3933**
0.2427
Group 2
0.1859
0.2074
0.3933**
0.2427
Platform 1 accumulation
Platform 1 income
* Distribution accumulated on 31 December 2014
** Distribution paid on 27 February 2015
Dividend distribution
for the three months ended 31 March 2015
Group 1 - units purchased prior to 1 January 2015
Group 2 - units purchased between 1 January 2015 and 31 March 2015
Net income
Equalisation
Distribution paid
Distribution paid
2015
2015
2015
2014
pence per unit
pence per unit
pence per unit
pence per unit
Retail accumulation
Group 1
0.7264
-
0.7264*
0.7757
Group 2
0.4061
0.3203
0.7264*
0.7757
Institutional accumulation
Group 1
0.7767
-
0.7767*
0.8248
Group 2
0.4152
0.3615
0.7767*
0.8248
Retail income
Group 1
0.5269
-
0.5269**
0.5823
Group 2
0.2330
0.2939
0.5269**
0.5823
Group 1
0.5657
-
0.5657**
0.6220
Group 2
0.2957
0.2700
0.5657**
0.6220
Institutional income
Standard Life Investments Dynamic Distribution Fund Annual Report & Financial Statements
26
Standard Life Investments Dynamic Distribution
Fund Annual Report & Financial Statements
Distribution Tables
(continued) Net income
Equalisation
Distribution
Distribution paid
2015
2015
payable 2015
2014
pence per unit
pence per unit
pence per unit
pence per unit
Group 1
0.5694
-
Group 2
-
-
Group 1
0.7952
-
0.7952*
0.3620
Group 2
0.2357
0.5595
0.7952*
0.3620
Group 1
0.7916
-
0.7916*
0.8356
Group 2
0.4475
0.3441
0.7916*
0.8356
Institutional regulated income
0.5694**
-
0.6310
-
Standard Life accumulation
Institutional regulated accumulation
Platform 1 accumulation
Group 1
0.6358
-
0.6358*
0.6802
Group 2
0.3100
0.3258
0.6358*
0.6802
Platform 1 income
Group 1
0.5731
-
0.5731**
0.6311
Group 2
0.2222
0.3509
0.5731**
0.6311
* Distribution accumulated on 31 March 2015
** Distribution payable on 29 May 2015
27
Standard Life Investments Dynamic Distribution Fund Annual Report & Financial Statements
Standard Life Investments Dynamic Distribution
Fund Annual Report & Financial Statements
Treatment by Corporate Unitholders (unaudited)
Corporate unitholders should account for the current year’s dividends shown in the distribution tables as follows:
1st Interim
2nd Interim
3rd Interim
Final
Dividend
Dividend
Dividend
Dividend
Distribution
Distribution
Distribution
Distribution
Treat as a UK corporate dividend
64.71%
78.85%
52.72%
71.82%
Treat as unfranked investment income*
35.29%
21.15%
47.28%
28.18%
*After deduction of income tax at the lower rate. This amount is liable to corporation tax.
Standard Life Investments Dynamic Distribution Fund Annual Report & Financial Statements
28
Standard Life Investments Limited is registered in Scotland (SC123321) at 1 George Street, Edinburgh EH2 2LL.
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