NORTH AMERICAN UNIT TRUST - St. James's Place plc/media/Files/S/sjp-group/document-library/...Nalco...

NORTH AMERICAN UNIT TRUST

FOR THE YEAR ENDED 31 MARCH 2012

H. J. Gladman resigned 31/12/11D. J. LambW. P. Tonks resigned 31/12/11

PricewaterhouseCoopers LLPErskine House68 - 73 Queen StreetEdinburgh, EH2 4NHUnited Kingdom

(Authorised and regulated by the Financial Services Authority)

Auditor

(From 31 January 2012, PricewaterhouseCoopers LLP replaced KPMG Audit Plc as Auditor to the Trust)

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 P.O. Box 9034, Chelmsford CM99 2XA.Freephone: 0800 027 1031

United Kingdom

London, EC4V 4LAUnited Kingdom


RegistrarInternational Financial Data Services (UK) LimitedIFDS HouseSt. Nicholas LaneBasildon, SS15 5FS

160 Queen Victoria Street

TrusteeBNY Mellon Trust & Depositary (UK) Limited

United States of America

(Authorised by the Securities and Exchange Commission)

Los Angeles, CA 90025

Secretary of the ManagerSt. James's Place Administration Limited

Investment AdviserAristotle Capital Management LLC11100 Santa Monica Boulevard, Suite 1700

United KingdomFreephone: 0800 027 1031


Directors of the ManagerM. S. Wilson (Chairman) resigned 23/05/11D. C. BellamyA. M. CroftI. S. Gascoigne

P.O. Box 9034, Chelmsford, CM99 2XA

St. James's Place North American Unit Trust

ManagerSt. James's Place Unit Trust Group Limited

1

06/04/99 to 31/03/12

31/03/07 to 31/03/12

31/03/11 to 31/03/12

% change % change % change

-12.5 +10.0 +4.3-12.5 +10.0 +4.3

+6.5 +22.0 +6.7

(The new name for Reed, Conner & Birdwell LLC)


Report of the Manager

During the year under review, 1 April 2011 to 31 March 2012, the St. James's Place NorthAmerican Unit Trust Income unit offer price rose by 4.3% from 83.84p to 87.46p and theAccumulation unit offer price (in which revenue is reflected in the price rather than distributed)rose by 4.3% from 83.84p to 87.46p. On the 16 May 2012, the latest available date before theprinting of this report, the Income unit offer price was 82.84p and the Accumulation unit offerprice was 82.84p. The estimated yield was 0.00%.

The Trust's Performance

The performance of the Trust since its launch in April 1999, over the five year period since March2007 and over the year under review is shown below, together with figures for the mostcommonly quoted indices in comparable markets where the major proportion of the Trust hasbeen invested.

St. James's Place North American Unit TrustIncome units (offer to offer)Accumulation units (offer to offer)Indices - actualStandard & Poor's 500 Index

Source: Lipper for Fund returns

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

Investment Adviser's Comments

We believe the US economy is finally showing signs of health. The Greek debt crisis and thepossible contagion effect seem to have been solved for now, avoiding a messy and unruly default,although we would point out that it has simply been replaced with a less messy and more orderlydefault.

Consumer confidence appears to be improving with employment numbers moving in the rightdirection. That, coupled with an essentially zero interest rate and low inflation environment, hasbuoyed the S&P 500 Index to within 10% of an all-time high.

As is normally the case at the early stages of an economic expansion, the market has respondedpositively with the more economically sensitive businesses showing the greatest gains. Homebuilders and construction related businesses, which were the first to suffer at the start of thefinancial crisis, have led the pack in performance over the past couple of months. Our holdings inthose industries, Lennar and Loew's Companies, showed some of the strongest returns in theportfolio accounting for almost half of the outperformance over the past three months. Energystocks also continued their rise fuelled by higher oil prices and, elsewhere, US banks are showingsigns of life, with domestic lending in positive territory for the first time since the financial crisisstruck.

Conversely, the Consumer Staples sector, which held up well during the downturn, has notappreciated as rapidly of late and represented the largest detractor to the portfolio. HJ Heinz wasour worst performer in this sector.

Additions to the portfolio over the last few months included large-cap multi-nationals Deere & Coand IBM. As is always the case, stock selection is based on our estimate of the intrinsic values foreach business and our view of their prospects over the next three to five years.

Aristotle Capital Management, LLC 12 April 2012

2

Highest Lowest Highest LowestOffer Bid Offer Bid

p p p p84.99 64.82 84.99 64.8272.69 38.92 72.69 38.9272.06 41.78 72.06 41.7884.40 65.68 84.40 65.6886.60 65.22 86.60 65.2289.18 75.96 89.18 75.96

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

per unit at 02/01/07 per unit at 02/01/07p £ p £- - - -- - - -- - - -- - - -- - - -- - - -

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

£'000 p p1,872,853 94,549,482 73,236 75.95 75.951,907,349 146,641,260 118,404 79.71 79.712,296,935 224,547,477 188,766 83.21 83.21

TER†(%)

1.571.63


Performance Record

Unit Price History

Calendar year

Distributions

Income AccumulationNet revenue distributedNet revenue distributed

* To 31 March 2012

20112012

† The Total Expense Ratio (TER) is the total expenses paid by the Trust in the year against itsaverage net asset value.

March

MarchYear ended

2011

Total Expense Ratio

Income Accumulation

Calendar year2007

20092010

2008

2012

Net Asset Values

Year ended

2008

2010

2011

2012*20112010

2012*

2007

2009

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

3

Security Holdings

MarketValue£000

% ofNet

Assets

UNITED STATES (90.76%) 164,270 87.02

Aerospace & Defence (1.91%) 4,599 2.44General Dynamics 101,400 4,599 2.44

Banks (4.34%) 20,115 10.66Bank of America 705,100 4,192 2.22First Republic Bank 195,000 4,047 2.14JPMorgan Chase 147,900 4,219 2.24M&T Bank 72,500 3,922 2.08SunTrust Banks 247,700 3,735 1.98

Chemicals (2.16%) 4,813 2.55Dow Chemical 225,500 4,813 2.55

Electricity (4.79%) 6,555 3.47AES 806,060 6,555 3.47

Electronic & Electrical Equipment (11.84%)* 5,945 3.15TE Connectivity 263,225 5,945 3.15

Financial Services (13.36%) 7,200 3.82Charles Schwab 389,000 3,467 1.84Morgan Stanley 302,800 3,733 1.98

Fixed Line Telecommunications (0.00%) 3,715 1.97CenturyLink 154,000 3,715 1.97

Food & Drug Retailers (3.38%) - -

Food Producers (3.89%) 14,736 7.81ConAgra Foods 270,400 4,438 2.35Hershey 134,800 5,148 2.73HJ Heinz 154,800 5,150 2.73

Gas, Water & Multi Utilities (0.00%) 4,473 2.37Questar 368,600 4,473 2.37

General Industrials (8.36%) 4,610 2.44General Electric 370,300 4,610 2.44

General Retailers (6.24%) 19,815 10.50eBay 214,100 4,945 2.62JC Penney 189,900 4,233 2.24Lowe's 276,800 5,397 2.86Wal-Mart Stores 138,000 5,240 2.78

Health Care Equipment & Services (3.97%) 14,258 7.56Abbott Laboratories 139,200 5,300 2.81Baxter International 109,600 4,074 2.16Covidien 145,100 4,884 2.59

Household Goods & Home Construction (0.00%) 4,966 2.63Lennar 292,300 4,966 2.63

Industrial Engineering (5.72%) 8,709 4.62Deere 88,100 4,428 2.35SPX 88,700 4,281 2.27

Life Insurance (1.81%) - -

Media (0.00%) 4,668 2.47Time Warner 201,300 4,668 2.47


as at 31 March 2012

Investment Assets

4

Security Holdings

MarketValue£000

% ofNet

Assets


as at 31 March 2012

(continued)Investment Assets

Non Life Insurance (8.45%) - -

Oil & Gas Producers (5.50%) 10,377 5.48Hess 107,300 3,915 2.07Pioneer Natural Resources 56,700 3,726 1.97QEP Resources 147,500 2,736 1.44

Oil Equipment, Services & Distribution (0.00%) 3,958 2.10Halliburton 193,500 3,958 2.10

Pharmaceuticals & Biotechnology (0.00%) 2,902 1.54Hospira 123,300 2,902 1.54

Real Estate & Investment Services (1.24%) - -

Software & Computer Services (3.80%) 7,681 4.05International Business Machines 26,500 3,444 1.81Oracle 231,500 4,237 2.24

Technology Hardware & Equipment (0.00%) 10,175 5.39EMC 306,700 5,661 3.00Texas Instruments 217,900 4,514 2.39

UNITED KINGDOM (5.10%) 10,908 5.78St. James's Place Money Market Unit Trust (Acc)† 10,492,562 10,908 5.78

Investment assets 175,178 92.80

Total other assets (net) 13,588 7.20

Net assets 188,766 100.00

† During the year under review the Manager decided to place some of the sterling cash held ondeposit into the St. James’s Place Money Market Unit Trust in order to spread risk across anumber of institutions. The St. James’s Place Money Market Unit Trust is highly liquid and is ratedAAA by Standard & Poors. Previously named St. James's Place Cash Unit Trust (Acc) until 12September 2011. This investment is a related party.

All investments held are listed, unless otherwise stated.

* Prior year comparative has been restated.

Comparative figures shown in brackets relate to 31 March 2011.

5

Material Portfolio Changes/Movements

PurchasesCost

£000St. James's Place Money Market Unit Trust (Acc)† 59,062SPDR S&P 500 EFT Trust 7,734Wal-Mart Stores 5,388HJ Heinz 5,037Dow Chemical 4,891Hershey 4,874Time Warner 4,868Abbott Laboratories 4,729Deere 4,672ConAgra Foods 4,520Questar 4,433Texas Instruments 4,390JC Penney 4,199eBay 4,163Halliburton 4,147General Dynamics 3,904First Republic Bank 3,898Oracle 3,881Baxter International 3,854CenturyLink 3,814

Other purchases 69,728Total purchases for the year 216,186

SalesProceeds

£000St. James's Place Money Market Unit Trust (Acc)† 54,208SPDR S&P 500 EFT Trust 7,805White Mountains Insurance 7,015Liberty Interactive 6,464Ralcorp 5,913Alleghany 5,791Wendy's 5,581Equifax 5,505Lowe's 5,442Bank of New York Mellon 5,333Coinstar 5,311Teleflex 4,903Tyco International 4,812Yahoo! 4,716Nalco 4,374Woodward 4,347Chesapeake Energy 4,346ITT 3,988Goodrich 2,837Central Garden and Pet Company (non voting shares) 2,707

Other sales 11,382Total sales for the year 162,780


† This investment is a related party. St. James's Place Money Market Unit Trust (Acc) waspreviously named St. James's Place Cash Unit Trust (Acc) until 12 September 2011.

6

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●●

●

●

D. J. Lamb 21 May 2012

Directors' Certificate

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

Directors A. M. Croft 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 North American Unit TrustStatement of the Manager's Responsibilities in relation to the Financial Statements of the Trust

The rules in the Financial Services 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 expenses and the net capital gains on the property of the Trust for the year then ended.

In preparing the Financial Statements the Manager is required to:

select suitable accounting policies and then apply them consistently;

make judgements and 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.

7

London

21 May 2012


Statement of Trustee's Responsibilities

The Trustee is under a duty to take into custody and to hold the property of the Scheme in trustfor the holders of units. It is also the duty of the Trustee to enquire into the conduct of theManager in the management of the Scheme and to ensure that the Scheme is managed inaccordance with all applicable rules and restrictions in each annual accounting period, and toreport thereon to unitholders.

Report of the TrusteeIn our opinion, the Manager has managed the scheme, in all material aspects, during the periodcovered by this Report in accordance with the investment and borrowing powers and therestrictions applicable to the scheme, and otherwise in accordance with the Trust Deed and therules in the Financial Services Authority's Collective Investment Scheme provisions of theSourcebook.

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

8

●

●

●

●

●

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

PricewaterhouseCoopers LLPChartered Accountants & Statutory AuditorsEdinburgh21 May 2012The Financial Statements are published on www sjp.co.uk which is a website maintained by St. James’s Unit Trust Group Limited. Themaintenance and integrity of the website is the responsibility of the directors; the work carried out by the auditors does not involveconsideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to theFinancial Statements since they were initially presented on the website. Visitors to the website need to be aware that legislation in the UnitedKingdom governing the presentation and dissemination of the Financial Statements may differ from legislation in their jurisdiction.

we have obtained all the information and explanations we consider necessary for thepurposes of the audit; and

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

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Collective InvestmentSchemes sourcebook requires us to report to you if, in our opinion:

proper accounting records for the Trust have not been kept; or

In our opinion:

give a true and fair view of the financial position of the Trust at 31 March 2012 and of thenet expenses and the net capital gains of the scheme property of the Trust for the year thenended; and

have been properly prepared in accordance with the Statement of Recommended Practice forAuthorised Funds, the Collective Investment Schemes sourcebook and the Trust Deed.

Opinion on other matters prescribed by the Collective Investment Schemes sourcebook

As explained more fully in the Manager’s Responsibilities Statement the Manager is responsiblefor the preparation of the financial statements and for being satisfied that they give a true andfair view. Our responsibility is to audit and express an opinion on the financial statements inaccordance with applicable law and International Standards on Auditing (UK and Ireland). Thosestandards 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 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.

Scope of the audit of the financial statementsAn audit involves obtaining evidence about the amounts and disclosures in the financialstatements sufficient to give reasonable assurance that the financial statements are free frommaterial misstatement, whether caused by fraud or error. This includes an assessment of: whetherthe accounting policies are appropriate to the Trust’s circumstances and have been consistentlyapplied and adequately disclosed; the reasonableness of significant accounting estimates made by the Authorised Fund Manager; and the overall presentation of the financial statements. Inaddition, we read all the financial and non-financial information in the Annual report to identifymaterial inconsistencies with the audited financial statements. If we become aware of anyapparent material misstatements or inconsistencies we consider the implications for our report.

Opinion on the financial statements

In our opinion the financial statements:

St. James's Place North American Unit Trust (the "Trust")

Independent Auditors' Report to the Unitholders

We have audited the financial statements of the Trust for the year end 31 March 2012 whichcomprise the statement of total return, the statement of change in net assets attributable tounitholders, the balance sheet and the related notes. The financial reporting framework that hasbeen applied in their preparation is applicable law and United Kingdom Accounting Standards(United Kingdom Generally Accepted Accounting Practice) and the Statement of RecommendedPractice ‘Financial Statements of Authorised Funds’ issued by the Investment ManagementAssociation (the “Statement of Recommended Practice for Authorised Funds”).

Respective responsibilities of Manager and Auditors

9

Notes £000 £000 £000 £000

2 8,203 6,1623 2,022 1,2494 (2,200) (1,459)6 (3) (2)

(181) (212)5 (264) (220)

(445) (432)

7,758 5,7306 - -

7,758 5,730

£000 £000 £000 £000118,404 73,236

68,316 42,483

(5,711) (3,086)

62,605 39,397(1) (1)

7,758 5,730- 42

188,766 118,404

Bid Offerp p

83.11 87.4683.11 87.46

Statement of Change in Net Assets Attributable to Unitholders

Income units

Amounts payable on cancellation of units

The prices per unit as at 30 March 2012 (unaudited) were:

Closing net assets attributable to unitholders

The presentation of the financial statements have been changed from £'s to £000's, thecomparatives have been restated accordingly.

Net capital gains


Income

for the year ended 31 March 2012

01/04/11 to 31/03/12 01/04/10 to 31/03/11

01/04/11 to 31/03/12 01/04/10 to 31/03/11

Amounts receivable oncreation of units

Class actions

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

Revenue

Change in net assets attributable to unitholders from investment activities

Finance costs: Equalisation

Expenses

Net expenses before taxation

Total return before equalisation

Finance costs: Interest

Taxation

Net expenses after taxation

Statement of Total Return

Accumulation units

Stamp duty reserve taxChange in net assets attributable to unitholders from investment activities (see above)


10


31/03/12 31/03/11

Notes £000 £000 £000 £000

175,178 113,4968 14,494 1,7769 2,393 10,283

16,887 12,059

192,065 125,555

Creditors 10 (3,299) (4,813)- (2,338)

(3,299) (7,151)

188,766 118,404

Total liabilities

Total assets

Liabilities

Bank overdraft: Sterling

Total other assets

as at 31 March 2012

Balance Sheet

Investment assetsAssets

DebtorsCash and bank balances

Net assets attributable to unitholders

The presentation of the financial statements have been changed from £'s to £000's, thecomparatives have been restated accordingly.

11

1.

(a)

(b)

(c)

(d)

(e)

(f)

(g)

Taxation

Foreign exchange

Expenses

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

Listed investments have been valued at bid market value at 12.00 midday on 30 March2012 (31/03/11: bid market value at 12.00 midday).

All expenses of the Trust are deducted from revenue with the exception of handling chargesand stamp duty reserve tax which are deducted from capital.

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

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 policyThere is no distribution for the current period. Where there is distributable income, theManager may choose to pay all remaining revenue, less revenue expenses and taxation as adistribution 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.

7

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

Accounting and distribution policies

Basis of accounting

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

Revenue

Valuation of investments

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


Notes to the Financial Statements


12


(continued)Notes to the Financial Statements7

(h)

2.01/04/11 to

31/03/1201/04/10 to

31/03/11£000 £000

8,268 6,602(62) (438)

(3) (2)

8,203 6,162

3.01/04/11 to

31/03/1201/04/10 to

31/03/11£000 £000

Overseas dividends 1,984 690Distributions from Regulated Collective Investment Schemes Interest distributions 14 2Bank interest 5 3Revenue from overseas REITs - 550Management charge rebate on underlying holdings 19 4

2,022 1,249

4.01/04/11 to

31/03/1201/04/10 to

31/03/11£000 £000

2,029 1,337

12 9

Audit fee 6 7151 105

2 1

159 113

2,200 1,459Total expenses

Payable to the Trustee

Other expenses

Registrar's feesSafe custody fees

Net capital gains

Handling chargesCurrency lossesNon-derivative securities

Net capital gains

Trustee's fees

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.

Equalisation

Management charge

Expenses

Payable to the Manager

Revenue

Total revenue

13



5.01/04/11 to

31/03/1201/04/10 to

31/03/11£000 £000

(a)264 220

(b)

(181) (212)

(36) (42)

(397) (138)433 197264 203

264 220

(c)

(d)

6.

Equalisation and interest

01/04/11 to 31/03/12

01/04/10 to 31/03/11

£000 £000- -- -

- -3 2

3 2

7.01/04/11 to

31/03/1201/04/10 to

31/03/11£000 £000(445) (432)445 432

- -

8.31/03/12 31/03/11

£000 £00014,313 1,745

178 313 -

14,494 1,776

Net expenses after taxation

Amounts receivable for creation of units

Total debtors

Deficit transferred to capital

Add: Revenue deducted on cancellation of units

Factors that may affect future tax charges

The Equalisation takes account of revenue received on the creation of units and revenuededucted on the cancellation of units and comprises:

At the year end, after offset against revenue taxable on receipt, there is a potential deferredtax asset of £1,081,747 (31/03/11: £648,912) relating to surplus management expenses.No deferred tax asset was recognised in the current or prior year as it was consideredunlikely the Fund would generate sufficient taxable profits in the future to utilise theseamounts.

Irrecoverable overseas tax

Movement in excess management expenses

Factors affecting current tax charge for the year:

The tax assessed for the year is higher than the standard rate of corporation tax in the UKfor an authorised unit trust of 20% (2011: 20%). The differences are explained below:

Taxation

Analysis of charge in year:

Effects of:Non taxable foreign dividends

Corporation Tax at 20% (2011: 20%)

Finance costs

Irrecoverable overseas tax

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

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

Current tax charge for year (note 5a)

Deferred taxation:

Interest

Net equalisation for the year

Debtors

Net equalisation for the year

Deduct: Revenue received on creation of units

Accrued revenue

Total finance costs

Movement between net expenses and net equalisation

Income tax recoverable

Net expenses before taxation

14



9.31/03/12 31/03/11

£000 £0001,772 -

621 10,283

2,393 10,283

10.31/03/12 31/03/11

£000 £0003,285 4,796

14 17

3,299 4,813

11.

12.

13.

14.

●●

Accrued expenses

The Manager's service charge paid to St. James's Place Unit Trust Group Limited is shown innote 4 and details of the value of units created and cancelled by St. James's Place Unit TrustGroup Limited are shown in the Statement of Change in Net Assets Attributable toUnitholders. The net balances due from St. James's Place Unit Trust Group Limited at theyear end in respect of these transactions was £14,313,253 (31/03/11: £1,745,123).

Creditors

Related party transactions

Cash and bank balances

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

Cash and bank balances: Sterling

Total cash and bank balances

Trustee's fees and interest payable to the BNY Mellon Trust & Depositary (UK) Limited andtheir associates are shown in notes 4 and 6 respectively. The net balances due from BNYMellon Trust & Depositary (UK) Limited and their associates at the year end in respect ofthese transactions was £nil (31/03/11: £nil).

Units in issue

Capital commitments and contingent liabilities

Included in the investment portfolio is a holding of 10,492,562 units (31/03/11: 5,832,199)in St. James's Place Money Market Unit Trust (a St. James's Place Unit Trust Group Limitedfund) with a market value of £10,907,899 (31/03/11: £6,041,983). Revenue andmanagement charge rebates from this holding are shown in note 3 as interest distributionsand management charge rebates on the underlying holdings.

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, invests some of their lifeand pension policyholders' funds into the St. James's Place North American Unit Trust. Thevalue of these investments at the year end was £125,402,568 (31/03/11: £79,661,599).

On 31 March 2012, the Trust had no capital commitments (31/03/11: £nil) and nocontingent liabilities (31/03/11: £nil).

Purchases awaiting settlement

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 period satisfies theserequirements.

Total creditors

Cash and bank balances: Overseas

In accordance with the investment objectives, as stated on page 19, the Trust holds certainfinancial instruments. These comprise:

Equity shares, units in collective investment schemes; and

Financial instruments

Cash (including overdrafts) and short-term debtors and creditors that arise directly from its operations.

At the year end there were Income units of 2,296,935 (31/03/11: 1,907,349) andAccumulation units of 224,547,477 (31/03/11: 146,641,260) resulting in equivalent Incomeunits of 226,844,412 (31/03/11: 148,548,609).

15



15.

●

●

●

(a)

(b)

●

●

●

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

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 revenue received.

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

Foreign currency risk

Movements in exchange rates affect the value of investments;

Movements in exchange rates affect short term timing differences; and

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

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

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

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

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

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

Market price risk

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

Risk management

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 FSA 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:

Movements in exchange rates affect revenue received.

The Trust may open currency contracts at a forward exchange rate in order to reduce oreliminate the impact of exchange rate fluctuations on the value of investments and revenuereceivable.

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Monetary exposures

Non-monetary exposures Total

Monetary exposures

Non-monetary exposures Total

£000 £000 £000 £000 £000 £00016,548 10,908 27,456 (609) 6,041 5,432(2,960) 164,270 161,310 5,516 107,456 112,972

13,588 175,178 188,766 4,907 113,497 118,404

(c)

(d)

(e)

(f)

(g)

(h)

(i)

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.

Interest rate risk

31/03/12Net foreign currency assets

31/03/11

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

GBP

Net foreign currency assets

Other short-term debtors and creditors

Other short-term debtors and creditors have been excluded from disclosures of financialinstruments.

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.

Derivative risk

Liquidity risk

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

Fair value of financial assets and liabilities

Securities held by the Trust are valued at bid-price (see Note 1(d)). Other financial assets andliabilities of the Trust are included in the Balance Sheet at fair value.

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

The 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 Manager may use derivative instruments to hedge the value of the investment portfolioagainst market and stock specific risk through investment in warrants, options and futures.The purpose of the financial instruments is efficient portfolio management. In particularfutures may be used to implement the investment policy in a timely manner and to managemarket risk arising from the time lag between funds being receivable or payable by the Trustand investment and disinvestment in underlying securities. No such derivatives were held bythe Trust in the year to 31 March 2012.

Maturity profile of financial liabilities

USD

Currency

17



16.

01/04/11 to 31/03/12

01/04/10 to 31/03/11

01/04/11 to 31/03/12

01/04/10 to 31/03/11

£000 £000 £000 £000216,026 100,466 162,928 61,395

160 94 (147) (48)- - (2) -

160 94 (149) (48)

216,186 100,560 162,779 61,347

Total costs

CommissionsTaxes

Analysis of total trade costs.

Total trades in the year after transaction costs

Purchases Sales

Non-derivative securities

Portfolio transaction costs

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(a)

(b)

Management Charges

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

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

An Annual Management Charge at a rate of 1.5 per cent of the value of the Trust.

The minimum lump sum investment is £1,500, thereafter the minimum additional investment is£1,000. The minimum monthly investment to the Unit Trust Investment Plan is £150 and theminimum monthly increment is £50. The minimum annual investment to the Unit TrustInvestment Plan is £1,500 and the minimum annual increment is £500.

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, P.O. 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 the dealing day, onthat 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.

Telephone instructions are not accepted for ISA wrapped investments or the Unit TrustInvestment Plan (Regular Premium Unit Trust).

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 in the Daily Telegraph and on theManager's website: www.sjp.co.uk.

Minimum Investment

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.

European Savings Directive

It is the Manager's intention that the Trust will not normally hold 15% or more of its value inmoney debt instruments.

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

The Trust Manager

The Manager of the Trust is St. James's Place Unit Trust Group Limited which is a member of theIMA and is authorised and regulated by the Financial Services Authority.

Investment Objectives

The Scheme aims to maximise total return, comprising both capital appreciation and income,through investments principally but not exclusively in North American (United States of America,Canada and Mexico) stock markets. The Scheme will invest in a wide range of North Americansecurities which may include investments that are listed, registered or trading within this area.

St. James's Place North American Unit Trust is an authorised Unit Trust scheme under section 243of the Financial Services and Markets Act (2000) and is constituted by a Trust Deed dated 12March 1999.


General Information

The Trust

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General Information (continued)

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 accumulation unitholders(where the distribution income is reinvested) receive an annual consolidated tax voucher in Maywith all the relevant payment and tax information required to complete a tax return.

Tax vouchers will be enclosed if income unitholders receive payment by cheque.

Report

A report is sent semi-annually to all unitholders on or before 31 May and 30 November each year.

Capital Gains Tax

The Trust is not liable to tax on capital gains and an individual holding units will not be liable tocapital gains tax unless the total chargeable gains for the tax year 2012/2013 exceed £10,600(2011/2012 £10,600).

Tax Vouchers

Income Distributions

Income distributions are made annually on or before 31 May each year.

Accumulation Distributions

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

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UK members of the St. James’s Place Wealth Management Group are authorised and regulated by the Financial Services Authority.

St. James’s Place Unit Trust Group Limited: Registered Offi ceSt. James’s Place House, 1 Tetbury Road, Cirencester, Gloucestershire GL7 1FP

United Kingdom. Registered in England Number 947644

Perivan Financial Print 225401 Alternative Assets (06/12)

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