investment grade corporate bond UNIT TRUST FOR THE PERIOD ENDED 31 MARCH 2016

St. James's Place Investment Grade Corporate Bond Unit Trust

Manager St. James's Place Unit Trust Group Limited PO Box 9034, Chelmsford, CM99 2XA United Kingdom Freephone: 0800 027 1031

(Authorised and regulated by the Financial Conduct Authority) Directors of the Manager D. C. Bellamy A. M. Croft

I. S. Gascoigne D. J. Lamb

Investment Adviser Loomis, Sayles & Company L.P. One Financial Center Boston, MA 02111 United States of America

(Authorised by the Securities and Exchange Commission) Trustee BNY Mellon Trust & Depositary (UK) Limited 160 Queen Victoria Street London, EC4V 4LA United Kingdom

(Authorised and regulated by the Financial Conduct Authority) Registrar International Financial Data Services (UK) Limited IFDS House St. Nicholas Lane Basildon, SS15 5FS United Kingdom

(Authorised and regulated by the Financial Conduct Authority) Independent Auditor PricewaterhouseCoopers LLP Atria One 144 Morrison Street Edinburgh, EH3 8EX United Kingdom Prospectus and Manager's Reports Copies of the up to date Prospectus (Scheme Particulars) and latest Manager's Report and Financial Statements for the range of St. James's Place Unit Trusts can be requested from a member of the St. James's Place Partnership or, at any time during normal business hours, from the Administration Centre at PO Box 9034, Chelmsford CM99 2XA. Freephone: 0800 027 1031

1

St. James's Place Investment Grade Corporate Bond Unit Trust Report of the Manager The Report of the Manager consists of The Trust's Performance, Risk and Reward Profile, Investment Adviser's Comments, and Portfolio Statement. The Trust's Performance The performance of the Trust since its launch in April 2009, over the five year period since March 2011 and over the period under review is shown below, together with figures for the most commonly quoted indices in comparable markets where the major proportion of the Trust has been invested. 06/04/09 31/03/11 30/09/15 to 31/03/16 to 31/03/16 to 31/03/16 % change % change % change St. James's Place Investment Grade Corporate Bond Unit Trust Income units (offer to offer) +29.3 -1.8 -1.6 Accumulation units (offer to offer) +63.1 +14.0 -0.4 Gross Income units (offer to offer)* -2.2 -1.5 Gross Accumulation units (offer to offer)* +1.7 +0.0

Indices - actual Merrill Lynch British Pound LIBOR 3 month Constant Maturity (TR) Barclays Global AGG GBP

+5.3

+3.4

+0.3

+63.4

+31.9

+9.3

* Gross Income and Gross Accumulation units were made available on 6 October 2014 and the performance shown is from that date. Source: Lipper for Fund returns REMEMBER THAT THE PRICE OF UNITS AND REVENUE FROM THEM MAY GO DOWN AS WELL AS UP. PLEASE BE AWARE THAT PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE PERFORMANCE. Risk and Reward Profile The synthetic risk and reward indicator for the St. James’s Place Investment Grade Corporate Bond Unit Trust, as disclosed in its most recent Key Investor Information Document (KIID), is a 3. It was calculated using performance data up to 1 February 2016. The risk category is recalculated weekly and during the period under review, the risk category did not change. Investment Adviser's Comments The performance of the portfolio followed markets, being lower through January before recovering as the reporting period came to a close. In late 2015 and early 2016 corporate spreads widened as government yields fell due to persistent worries of Chinese and global growth concerns, commodity weakness, “Brexit” anxiety, and the fears of a potential US recession. However, mid-February brought about a turning point in market sentiment. Central banks continued accommodative policies across the globe. After first hiking in December 2015, the US Federal Reserve (the Fed) decided to leave the policy rates unchanged at the March meeting due to global risks. The European Central Bank (ECB) expanded its quantitative easing program. In Asia, the Bank of Japan (BoJ) surprised the market with a negative policy rate and the People’s Bank of China took additional easing measures as well, providing a boon to risk assets. We have been gradually increasing credit allocations during periods of spread widening as valuations were attractive. Spreads had been reflecting a greater recession risk than we believed was likely, which created some opportunities. This strategy to favor credit over some of the more defensive segments of the market is expected to serve as a key driver of return in the short term. The portfolio participated in a round of historically large new issuance by Anheuser-Busch InBev and added Cenovus Energy on weakness, with both names performing well. We sold out of ANZ to add a new issue by Macquarie for a yield advantage and diversity away from the Australian housing market. We also sold down JP Morgan partially and Philip Morris entirely to source a series of bond purchases in names viewed as having greater upside potential.

Information Classification: General 2

St. James's Place Investment Grade Corporate Bond Unit Trust Report of the Manager (continued) Investment grade communications and consumer goods issuers have performed relatively well, such as Verizon Wireless, CCO Safari, Altria, and AB InBev. Positions in financials, primarily banks and insurance companies, have weighed on results. Banks have lagged other credit sectors as investors contemplate lower rates for longer and heightened “Brexit” uncertainty. Additionally, selections from the metals and mining industry underperformed materially in late 2015. We expect the Fed to raise rates in a very gradual manner and only when the growth trajectory can withstand policy adjustment. We believe both the ECB and BoJ will keep policy loose and possibly ease further in coming quarters. Therefore, we remain comfortable with the view that corporate bonds will outperform government bonds in coming periods. Credit selection will be critical in extracting value from oversold parts of the market while avoiding names subject to deteriorating balance sheet quality.

Loomis, Sayles & Company L.P.

14 April 2016

Information Classification: General 3

St. James's Place Investment Grade Corporate Bond Unit Trust Comparative table as at 31 March 2016 (unaudited) Net Asset Value and Ongoing Charges Figure

Income Closing net asset value (£’000) Closing number of units Closing net asset value per unit (p) Operating charges

31/03/16

30/09/15

30/09/14

30/09/13

26,466 21,761,325 121.62 1.28%

21,820 17,623,518 123.81 1.28%

80,192 64,107,721 125.09 1.30%

66,324 53,324,164 124.38 1.30%

31/03/16

30/09/15

30/09/14

30/09/13

Accumulation Closing net asset value (£’000) 1,003,918 914,129 964,414 839,211 Closing number of units 650,220,285 589,906,336 630,977,057 566,376,105 Closing net asset value per unit (p) 154.40 154.96 152.84 148.17 Operating charges 1.28% 1.29% 1.30% 1.30%

Gross Income Closing net asset value (£’000) Closing number of units Closing net asset value per unit (p) Operating charges

31/03/16

30/09/15

79,266 65,250,034 121.48 1.27%

78,506 63,457,996 123.71 1.29%

31/03/16

30/09/15

Gross Accumulation Closing net asset value (£’000) 296,410 272,686 Closing number of units 190,133,891 174,897,114 Closing net asset value per unit (p) 155.90 155.91 Operating charges 1.28% 1.29%

Information Classification: General 4

St. James's Place Investment Grade Corporate Bond Unit Trust Portfolio Statement as at 31 March 2016 (unaudited)

Security EURO DENOMINATED BONDS (0.00%) Abbey National Treasury Services 0.875% 13/01/2020 Abbey National Treasury Services 1.125% 14/01/2022 Abbey National Treasury Services 1.125% 10/03/2025 ABN AMRO Bank 2.875% 30/06/2025 Albemarle 1.875% 08/12/2021 Allianz 2.241% 07/07/2045 America Movil 1.5% 10/03/2024 Anheuser-Busch InBev 1.5% 17/03/2025 Aquarius & Investments PLC for Zurich Insurance 4.25% 02/10/2043 AT&T 2.75% 19/05/2023 AT&T 1.3% 05/09/2023 Autostrade per l'Italia 1.125% 04/11/2021 Autostrade per l'Italia 1.875% 04/11/2025 Autostrade per l'Italia 1.75% 26/06/2026 Aviva 6.125% 05/07/2043 Aviva 3.875% 03/07/2044 Aviva 3.375% 04/12/2045 AXA 5.125% 04/07/2043 AXA 3.375% 06/07/2047 Ball 3.5% 15/12/2020 Bank of America 1.375% 26/03/2025 BNP Paribas 2.625% 14/10/2027 BorgWarner 1.8% 07/11/2022 Brisa Concessao Rodoviaria 2% 22/03/2023 British Telecommunications 0.625% 10/03/2021 Bundesrepublik Deutschland 1% 15/08/2025 Carrefour 1.75% 15/07/2022 Citigroup 1.375% 27/10/2021 Commerzbank 4% 23/03/2026 Credit Agricole 2.625% 17/03/2027 CRH Funding 1.875% 09/01/2024 Delphi Automotive 1.5% 10/03/2025 Deutsche Telekom International Finance 1.5% 03/04/2028 Discovery Communications 1.9% 19/03/2027 EDP Finance 2.375% 23/03/2023 EDP Finance 2% 22/04/2025 Engie 0.5% 13/03/2022 FCE Bank 1.114% 13/05/2020 Goldman Sachs 2% 27/07/2023 HBOS 4.5% 18/03/2030 HSBC 3% 30/06/2025 INEOS Grangemouth 0.75% 30/07/2019 Intesa Sanpaolo 2.855% 23/04/2025 Kraft Heinz Foods 2% 30/06/2023 Legrand 1.875% 16/12/2027 Magna International 1.9% 24/11/2023 Metropolitan Life Global Funding I 0.875% 20/01/2022 Mohawk Industries 2% 14/01/2022 Moody's 1.75% 09/03/2027 Morgan Stanley 1.75% 30/01/2025 Muenchener Rueckversicherungs-Gesellschaft in Muenchen 6% 26/05/2041

5

Holdings

Market Value £000

% of Net Assets

5,270,000 5,365,000 3,790,000 4,345,000 5,000,000 17,000,000 6,495,000 3,800,000 5,000,000

278,881 4,168 4,205 2,862 3,502 3,892 12,664 5,131 3,081 4,313

19.82 0.30 0.30 0.20 0.25 0.28 0.90 0.36 0.22 0.31

805,000 1,420,000 1,745,000 1,755,000 4,865,000 3,770,000 2,660,000 2,940,000 5,260,000 9,565,000 1,285,000 8,355,000 16,825,000 5,330,000 3,500,000 6,500,000 2,470,000 8,790,000 6,960,000 4,445,000 8,260,000 2,385,000 2,925,000 1,680,000

701 1,130 1,418 1,480 4,035 3,338 2,033 2,095 4,784 7,538 1,076 6,487 13,267 4,311 2,768 5,128 2,117 7,373 5,599 3,570 6,492 1,989 2,177 1,352

0.05 0.08 0.10 0.11 0.29 0.24 0.14 0.15 0.34 0.54 0.08 0.46 0.94 0.31 0.20 0.36 0.15 0.52 0.40 0.25 0.46 0.14 0.15 0.10

665,000 855,000 7,635,000 9,100,000 3,580,000 5,920,000 770,000 6,710,000 5,405,000 2,660,000 1,925,000 5,000,000 2,350,000 2,000,000

455 689 5,850 7,174 2,847 4,826 667 5,353 4,391 2,046 1,584 4,193 1,925 1,565

0.03 0.05 0.42 0.51 0.20 0.34 0.05 0.38 0.31 0.15 0.11 0.30 0.14 0.11

10,945,000 3,000,000 2,835,000 2,300,000

8,773 2,378 2,227 2,164

0.62 0.17 0.16 0.15

St. James's Place Investment Grade Corporate Bond Unit Trust Portfolio Statement

(continued)

as at 31 March 2016 (unaudited)

Security Pernod Ricard 1.875% 28/09/2023 PPG Industries 1.4% 13/03/2027 Praxair 1.2% 12/02/2024 Prologis 1.375% 13/05/2021 Prologis 3.375% 20/02/2024 Prologis 3% 02/06/2026 Prologis International Funding II 1.876% 17/04/2025 Publicis 1.125% 16/12/2021 RMAC Securities No 1 FRN 0% 12/06/2044 RTE Reseau de Transport d'Electricite 1.625% 08/10/2024 Santander Issuances 2.5% 18/03/2025 Santander Issuances 3.25% 04/04/2026 Scentre Group Trust 1 1.375% 22/03/2023 Schaeffler Finance 3.25% 15/05/2025 SGSP Australia Assets 2% 30/06/2022 Sky 1.5% 15/09/2021 Sky 2.25% 17/11/2025 Societe Generale 2.625% 27/02/2025 SSE 1.75% 08/09/2023 Standard Chartered 4% 21/10/2025 Unitymedia 3.75% 15/01/2027 Vesteda Finance 2.5% 27/10/2022 WPP Finance Deutschland 1.625% 23/03/2030 ZF North America Capital 2.25% 26/04/2019 ZF North America Capital 2.75% 27/04/2023 STERLING DENOMINATED BONDS (95.43%) Asciano Finance 5% 19/09/2023 AXA 7.125% 15/12/2020 British Telecommunications 5.75% 07/12/2028 Centrica 4.375% 13/03/2029 Co-Operative Bank 4.75% 11/11/2021 CRH Finance UK 4.125% 02/12/2029 Finmeccanica 8% 16/12/2019 Gwynt y Mor OFTO 2.778% 17/02/2034 HSBC 5.75% 20/12/2027 HSBC Bank 5.375% 04/11/2030 Iberdrola Finanzas 7.375% 29/01/2024 Kelda Finance No 3 5.75% 17/02/2020 Kraft Heinz Foods 4.125% 01/07/2027 Legal & General 5.5% 27/06/2064 NWEN Finance 5.875% 21/06/2021 Petrobras Global Finance 6.25% 14/12/2026 Prudential 5% 20/07/2055 QBE Capital Funding IV 7.5% 24/05/2041 Residential Mortgage Securities 22 FRN 0.95288% 14/11/2039 Standard Chartered 5.125% 06/06/2034 Telefonica Emisiones 5.375% 02/02/2026 Tesco 5% 24/03/2023 Time Warner Cable 5.25% 15/07/2042 Trinity Square 2015-1 PLC FRN 1.786% 15/07/2051 UK Treasury 5% 07/03/2025 Veolia Environnement 4.85% Perpetual Virgin Media Secured Finance 4.875% 15/01/2027 Western Power Distribution 3.625% 06/11/2023

6

Holdings 5,000,000 2,085,000 2,875,000 3,925,000 5,680,000 3,465,000 5,250,000 2,800,000 822,363 7,000,000

Market Value £000 4,160 1,621 2,322 3,125 5,048 2,985 4,128 2,244 588 5,832

% of Net Assets 0.30 0.12 0.17 0.22 0.36 0.21 0.29 0.16 0.04 0.41

1,700,000 5,700,000 2,540,000 2,400,000 9,820,000 6,235,000 2,790,000 10,300,000 2,950,000 3,115,000 5,345,000 2,598,000 2,995,000 4,000,000 3,100,000

1,291 4,480 2,021 1,924 7,894 5,047 2,285 8,039 2,411 2,392 3,811 2,147 2,232 3,223 2,448

0.09 0.32 0.14 0.14 0.56 0.36 0.16 0.57 0.17 0.17 0.27 0.15 0.16 0.23 0.17

3,292,000 2,825,000 4,725,000 4,725,000 3,735,000 3,490,000 975,000 1,775,183 3,805,000 5,630,000 1,650,000 3,500,000 1,940,000 1,845,000 5,568,000 3,000,000 3,850,000 1,550,000 1,861,620

97,911 3,462 3,350 5,967 5,140 4,135 3,729 1,131 1,749 4,154 6,025 2,164 3,676 2,051 1,669 5,823 2,059 3,375 1,670 1,695

6.97 0.25 0.24 0.42 0.37 0.29 0.27 0.08 0.12 0.30 0.43 0.15 0.26 0.15 0.12 0.41 0.15 0.24 0.12 0.12

3,440,000 2,800,000 6,445,000 4,035,000 2,110,000 3,750,000 200,000 4,650,000 2,415,000

3,059 3,224 6,477 3,711 2,082 4,919 205 4,429 2,462

0.22 0.23 0.46 0.26 0.15 0.35 0.01 0.31 0.18

St. James's Place Investment Grade Corporate Bond Unit Trust Portfolio Statement

(continued)

as at 31 March 2016 (unaudited)

Security Wods Transmission 3.446% 24/08/2034 US DOLLAR DENOMINATED BONDS (0.00%) 21st Century Fox America 4% 01/10/2023 AbbVie 2.9% 06/11/2022 ABN AMRO Bank 4.75% 28/07/2025 Abu Dhabi National Energy 5.875% 13/12/2021 Actavis Funding SCS 3% 12/03/2020 Actavis Funding SCS 3.45% 15/03/2022 Actavis Funding SCS 3.8% 15/03/2025 Actavis Funding SCS 4.55% 15/03/2035 AerCap 4.625% 30/10/2020 AIA 3.2% 11/03/2025 Air Lease 4.25% 15/09/2024 Aircastle 5% 01/04/2023 Ally Financial 3.75% 18/11/2019 Ally Financial 4.125% 13/02/2022 Altria 4% 31/01/2024 America Movil 4.375% 16/07/2042 American Airlines 2016-1 Class B Pass Through Trust 5.25% 15/07/2025 American International 4.7% 10/07/2035 Anadarko Petroleum 5.55% 15/03/2026 Anheuser-Busch InBev Finance 2.65% 01/02/2021 Anheuser-Busch InBev Finance 3.65% 01/02/2026 Anheuser-Busch InBev Finance 4.7% 01/02/2036 Anheuser-Busch InBev Finance 4.9% 01/02/2046 Anthem 2.25% 15/08/2019 Anthem 3.125% 15/05/2022 Anthem 3.5% 15/08/2024 ArcelorMittal 6.25% 05/08/2020 Arrow Electronics 3.5% 01/04/2022 AT&T 4.45% 01/04/2024 AT&T 3.4% 15/05/2025 AT&T 5.15% 15/03/2042 AT&T 4.3% 15/12/2042 AT&T 4.75% 15/05/2046 Aviation Capital 6.75% 06/04/2021 Aviation Capital 4.875% 01/10/2025 Avnet 4.625% 15/04/2026 BAE Systems 3.85% 15/12/2025 Baidu 3.25% 06/08/2018 Ball 4% 15/11/2023 Baltimore Gas & Electric 3.35% 01/07/2023 Bank of America 2% 11/01/2018 Bank of America 3.3% 11/01/2023 Bank of America 4% 01/04/2024 Bank of America 3.95% 21/04/2025 Bank of Nova Scotia 1.45% 25/04/2018 Barclays 2.875% 08/06/2020 Barclays 4.375% 11/09/2024 Barclays 3.65% 16/03/2025 Barclays 4.375% 12/01/2026 Becton Dickinson 2.675% 15/12/2019 Becton Dickinson 3.734% 15/12/2024 BG Energy 4% 15/10/2021 Bharti Airtel 4.375% 10/06/2025

7

Holdings 4,187,461

Market Value £000 4,319

% of Net Assets 0.31

4,000,000 10,000,000 8,535,000 2,600,000 2,965,000 2,990,000 3,035,000 2,350,000 6,160,000 4,000,000 8,600,000 495,000 8,000,000 9,000,000 9,500,000 2,160,000 4,965,000

944,529 2,994 7,018 5,960 2,017 2,116 2,145 2,182 1,672 4,378 2,774 5,897 343 5,500 6,140 7,191 1,444 3,444

67.19 0.21 0.50 0.42 0.14 0.15 0.15 0.16 0.12 0.31 0.20 0.42 0.02 0.39 0.44 0.51 0.10 0.24

6,000,000 3,630,000 8,800,000 7,555,000 1,295,000 6,515,000 14,001,000 3,000,000 3,000,000 3,740,000 2,040,000 445,000 20,000,000 175,000 4,000,000 4,200,000 3,060,000 1,000,000 4,320,000 5,495,000 2,000,000 600,000 5,000,000 4,000,000 6,000,000 8,000,000 7,175,000 4,000,000 3,080,000 11,150,000 970,000 3,845,000 2,000,000 4,000,000 2,510,000 6,040,000

4,093 2,514 6,258 5,488 966 4,996 9,744 2,091 2,093 2,539 1,416 332 13,867 123 2,513 2,815 2,388 688 3,002 3,893 1,422 411 3,585 2,781 4,195 5,797 4,934 2,772 2,105 7,255 632 2,623 1,418 2,943 1,815 4,259

0.29 0.18 0.45 0.39 0.07 0.36 0.69 0.15 0.15 0.18 0.10 0.02 0.99 0.01 0.18 0.20 0.17 0.05 0.21 0.28 0.10 0.03 0.25 0.20 0.30 0.41 0.35 0.20 0.15 0.52 0.04 0.19 0.10 0.21 0.13 0.30

St. James's Place Investment Grade Corporate Bond Unit Trust Portfolio Statement

(continued)

as at 31 March 2016 (unaudited)

Security BNZ International Funding 2.35% 04/03/2019 BOC Aviation Pte 3% 30/03/2020 BP Capital Markets 3.245% 06/05/2022 Brixmor Operating Partnership 3.875% 15/08/2022 Burlington Northern Santa Fe 5.05% 01/03/2041 Celgene 3.55% 15/08/2022 Celgene 4.625% 15/05/2044 Cemex 7.75% 16/04/2026 Cenovus Energy 3% 15/08/2022 Cenovus Energy 3.8% 15/09/2023 Chesapeake Energy 4.875% 15/04/2022 Cielo 3.75% 16/11/2022 Cigna 3.25% 15/04/2025 CIT 4.25% 15/08/2017 Citigroup 2.65% 26/10/2020 Citigroup 4.4% 10/06/2025 Citigroup 4.45% 29/09/2027 Cloverie via Swiss Re Corporate Solutions 4.5% 11/09/2044 Comcast 4.2% 15/08/2034 COMM 2014-KYO Mortgage Trust RFN 1.338% 11/06/2027 COMM 2014-UBS3 Mortgage Trust 3.819% 10/06/2047 COMM 2015-PC1 Mortgage Trust 3.902% 10/07/2050 Concho Resources 5.5% 01/04/2023 Continental Resources 4.5% 15/04/2023 Continental Resources 3.8% 01/06/2024 Corning 2.9% 15/05/2022 Corp Nacional del Cobre de Chile 4.5% 16/09/2025 Corpbanca 3.875% 22/09/2019 Cox Communications 4.7% 15/12/2042 Cox Communications 4.5% 30/06/2043 Credit Suisse Commercial Mortgage Trust Series 2007-C5 5.695% 15/09/2040 CRH America 3.875% 18/05/2025 Crown Castle International 3.4% 15/02/2021 CVS Health 4.125% 15/05/2021 CVS Health 4.75% 01/12/2022 CVS Health 5.125% 20/07/2045 DDR 4.625% 15/07/2022 Delhaize 5.7% 01/10/2040 Delphi 4.15% 15/03/2024 Delphi Automotive 3.15% 19/11/2020 Delphi Automotive 4.25% 15/01/2026 Delta Air Lines 2015-1 Class B Pass Through Trust 4.25% 30/01/2025 Devon Energy 3.25% 15/05/2022 Devon Energy 5.85% 15/12/2025 Diamond Offshore Drilling 4.875% 01/11/2043 DP World 6.85% 02/07/2037 Eaton 4% 02/11/2032 Ecopetrol 4.125% 16/01/2025 EDP Finance 4.125% 15/01/2020 Embraer Netherlands Finance 5.05% 15/06/2025

8

Holdings 8,000,000 6,000,000 17,725,000 9,365,000 3,000,000 5,915,000 3,000,000 4,600,000 230,000 590,000 6,000,000 8,000,000 3,100,000 3,000,000 7,000,000 6,000,000 10,000,000 4,050,000

Market Value £000 5,593 4,195 12,573 6,329 2,368 4,291 2,113 3,266 141 369 1,479 4,997 2,133 2,115 4,882 4,233 6,923 2,698

% of Net Assets 0.40 0.30 0.89 0.45 0.17 0.31 0.15 0.23 0.01 0.03 0.11 0.36 0.15 0.15 0.35 0.30 0.49 0.19

2,000,000 3,420,000

1,463 2,348

0.10 0.17

1,435,000

1,067

0.08

1,700,000

1,272

0.09

1,485,000 705,000 6,795,000 8,002,000 3,000,000 5,000,000 555,000 650,000 4,133,908

1,005 406 3,787 5,576 2,107 3,546 315 360 2,962

0.07 0.03 0.27 0.40 0.15 0.25 0.02 0.03 0.21

7,000,000 3,000,000 6,500,000 8,105,000 2,530,000 6,725,000 5,660,000 2,560,000 10,255,000 4,045,000 1,033,443

5,000 2,110 4,923 6,288 2,028 4,942 4,216 1,821 7,245 2,901 712

0.36 0.15 0.35 0.45 0.14 0.35 0.30 0.13 0.52 0.21 0.05

990,000 1,665,000 675,000 1,960,000 2,000,000 3,500,000 2,865,000 6,569,000

578 1,108 306 1,392 1,395 2,045 1,992 3,980

0.04 0.08 0.02 0.10 0.10 0.15 0.14 0.28

St. James's Place Investment Grade Corporate Bond Unit Trust Portfolio Statement

(continued)

as at 31 March 2016 (unaudited)

Security Emirates Telecommunications 2.375% 18/06/2019 Enel Finance International 6% 07/10/2039 Energy Transfer Partners 3.6% 01/02/2023 Energy Transfer Partners 5.15% 01/02/2043 ERAC USA Finance 3.8% 01/11/2025 ERAC USA Finance 5.625% 15/03/2042 Express Scripts 4.5% 25/02/2026 FedEx 4.55% 01/04/2046 Flextronics International 4.75% 15/06/2025 Ford Motor 6.625% 01/10/2028 Ford Motor Credit 3.2% 15/01/2021 Ford Motor Credit 3.664% 08/09/2024 Ford Motor Credit 4.134% 04/08/2025 Freeport-McMoRan 5.4% 14/11/2034 Freeport-McMoRan 5.45% 15/03/2043 GE Capital International Funding 2.342% 15/11/2020 GE Capital International Funding 3.373% 15/11/2025 GE Capital International Funding 4.418% 15/11/2035 General Electric 4.125% 09/10/2042 General Motors 6.75% 01/04/2046 General Motors Financial 3.1% 15/01/2019 General Motors Financial 4.375% 25/09/2021 General Motors Financial 4% 15/01/2025 Gilead Sciences 4.75% 01/03/2046 GO Financial Auto Securitization Trust 2015-2 3.27% 15/11/2018 Goldman Sachs 2.75% 15/09/2020 Goldman Sachs 3.625% 22/01/2023 Goldman Sachs 4% 03/03/2024 HCA 5% 15/03/2024 HCA 5.875% 15/02/2026 HCP 3.4% 01/02/2025 Hewlett Packard Enterprise 4.9% 15/10/2025 Hewlett Packard Enterprise 6.2% 15/10/2035 Hewlett Packard Enterprise 6.35% 15/10/2045 Holcim Capital 6.5% 12/09/2043 Hologic 5.25% 15/07/2022 Home Depot 2.625% 01/06/2022 Host Hotels & Resorts 4.75% 01/03/2023 Hyundai Capital America 3% 30/10/2020 Imperial Brands Finance 4.25% 21/07/2025 Intesa Sanpaolo 5.017% 26/06/2024 Intesa Sanpaolo 5.71% 15/01/2026 Itau Unibanco 2.85% 26/05/2018 Jabil Circuit 4.7% 15/09/2022 JPMorgan Chase Commercial Mortgage Securities Trust 2007-LDP11 5.742573% 15/06/2049 JPMorgan Chase 2.55% 29/10/2020 JPMorgan Chase 3.25% 23/09/2022 JPMorgan Chase 3.9% 15/07/2025 Kimco Realty 3.2% 01/05/2021 Kimco Realty 3.4% 01/11/2022 Kimco Realty 4.25% 01/04/2045 Kinder Morgan 5.05% 15/02/2046 Kraft Heinz Foods 5% 04/06/2042 Lennar 4.875% 15/12/2023

9

Holdings 6,000,000 9,380,000 4,000,000 2,570,000 13,530,000 5,503,000 4,750,000 4,800,000 190,000 6,500,000 6,000,000 5,849,000 6,850,000 510,000 2,560,000 10,000,000 10,000,000 10,000,000 12,060,000 335,000 8,000,000 15,000,000 5,000,000 3,000,000 8,082,350

Market Value £000 4,195 7,539 2,403 1,370 9,725 4,314 3,408 3,390 128 5,399 4,246 4,078 4,937 214 1,084 7,082 7,354 7,445 8,778 263 5,602 10,742 3,357 2,269 5,580

% of Net Assets 0.30 0.54 0.17 0.10 0.69 0.31 0.24 0.24 0.01 0.38 0.30 0.29 0.35 0.02 0.08 0.50 0.52 0.53 0.62 0.02 0.40 0.76 0.24 0.16 0.40

15,100,000 10,000,000 3,956,000 5,000,000 2,500,000 3,500,000 2,020,000 2,045,000 3,075,000 2,155,000 3,000,000 10,422,000 6,000,000 9,690,000 13,095,000 2,475,000 3,800,000 6,000,000 5,045,000 1,014,515

10,622 7,161 2,868 3,555 1,779 2,215 1,424 1,382 2,080 1,711 2,161 7,478 4,310 6,825 9,633 1,605 2,558 4,109 3,459 721

0.76 0.51 0.20 0.25 0.13 0.16 0.10 0.10 0.15 0.12 0.15 0.53 0.31 0.49 0.69 0.11 0.18 0.29 0.25 0.05

15,000,000 8,000,000 7,500,000 5,600,000 2,015,000 4,400,000 12,500,000 3,000,000 3,995,000

10,524 5,763 5,505 3,959 1,414 2,893 7,334 2,256 2,753

0.75 0.41 0.39 0.28 0.10 0.21 0.52 0.16 0.20

St. James's Place Investment Grade Corporate Bond Unit Trust Portfolio Statement

(continued)

as at 31 March 2016 (unaudited)

Security Liberty Mutual 4.95% 01/05/2022 Lloyds Bank 2.7% 17/08/2020 Lloyds Banking Group 4.5% 04/11/2024 Lloyds Banking Group 4.65% 24/03/2026 Lockheed Martin 3.8% 01/03/2045 Lockheed Martin 4.7% 15/05/2046 Macquarie Bank 3.9% 15/01/2026 Masco 3.5% 01/04/2021 McGraw Hill Financial 4.4% 15/02/2026 McKesson 4.883% 15/03/2044 Meccanica 6.25% 15/01/2040 Medco Health Solutions 4.125% 15/09/2020 Medtronic 3.5% 15/03/2025 Merck 2.35% 10/02/2022 Methanex 3.25% 15/12/2019 MetLife 4.125% 13/08/2042 MetLife 4.05% 01/03/2045 Mexichem 5.875% 17/09/2044 Micron Technology 5.25% 01/08/2023 Micron Technology 5.625% 15/01/2026 ML-CFC Commercial Mortgage Trust 2007-6 5.485% 12/03/2051 Morgan Stanley 3.875% 29/04/2024 MPLX 5.5% 15/02/2023 MTN Mauritius Investment 4.755% 11/11/2024 Myriad International 5.5% 21/07/2025 Nabors Industries 5% 15/09/2020 NBCUniversal Media 5.15% 30/04/2020 Newfield Exploration 5.625% 01/07/2024 Noble Energy 5.25% 15/11/2043 Northrop Grumman 3.85% 15/04/2045 OCP 6.875% 25/04/2044 Omnicom 3.625% 01/05/2022 OneMain Financial Issuance Trust 2016-2 4.1% 20/03/2028 Pacific Gas & Electric 3.5% 15/06/2025 Pernod Ricard 4.45% 15/01/2022 Pernod Ricard 5.5% 15/01/2042 Pioneer Natural Resources 3.45% 15/01/2021 Pioneer Natural Resources 3.95% 15/07/2022 Pioneer Natural Resources 4.45% 15/01/2026 Principal Financial 3.4% 15/05/2025 Principal Life Global Funding II 2.625% 19/11/2020 Prudential Financial 5.375% 21/06/2020 PulteGroup 4.25% 01/03/2021 QEP Resources 5.375% 01/10/2022 QEP Resources 5.25% 01/05/2023 Quicken Loans 5.75% 01/05/2025 Royal Bank of Scotland 6.4% 21/10/2019 Royal Bank of Scotland 5.125% 28/05/2024 Santander 4.5% 17/07/2025 Santander 4.75% 15/09/2025 Santander Issuances 5.179% 19/11/2025 Scentre Group Trust 1 2.375% 05/11/2019 Sempra Energy 3.75% 15/11/2025 Shell International Finance 2.25% 06/01/2023

10

Holdings 5,000,000 4,300,000 10,130,000 4,845,000 3,930,000 5,680,000 19,190,000 2,400,000 8,755,000 2,005,000 2,000,000 1,900,000 4,000,000 5,000,000 2,252,000 1,620,000 3,005,000 2,300,000 320,000 2,850,000 1,753,559

Market Value £000 3,752 3,013 7,045 3,324 2,615 4,360 13,420 1,680 6,532 1,469 1,319 1,397 2,950 3,530 1,453 1,074 1,950 1,428 186 1,583 1,243

% of Net Assets 0.27 0.21 0.50 0.24 0.19 0.31 0.95 0.12 0.46 0.10 0.09 0.10 0.21 0.25 0.10 0.08 0.14 0.10 0.01 0.11 0.09

15,000,000 2,000,000 690,000 6,180,000 3,000,000 9,565,000 930,000 4,285,000 2,500,000 2,000,000 3,000,000 5,000,000

10,868 1,336 430 4,296 1,797 7,530 609 2,567 1,706 1,441 2,181 3,495

0.77 0.10 0.03 0.31 0.13 0.54 0.04 0.18 0.12 0.10 0.16 0.25

3,000,000 5,000,000 8,490,000 1,600,000 2,000,000 3,460,000 9,111,000 8,000,000 6,513,000 1,745,000 265,000 585,000 2,045,000 6,347,000 14,000,000 6,000,000 5,545,000 1,600,000 5,000,000 3,300,000 16,215,000

2,191 3,736 6,326 1,101 1,407 2,408 6,244 5,611 5,033 1,232 162 356 1,377 4,938 9,376 4,263 3,640 1,070 3,482 2,344 10,902

0.16 0.27 0.45 0.08 0.10 0.17 0.44 0.40 0.36 0.09 0.01 0.03 0.10 0.35 0.67 0.30 0.26 0.08 0.25 0.17 0.78

St. James's Place Investment Grade Corporate Bond Unit Trust Portfolio Statement

(continued)

as at 31 March 2016 (unaudited)

Security Sigma Alimentos 5.625% 14/04/2018 Sky 3.75% 16/09/2024 SM Energy 6.125% 15/11/2022 SM Energy 6.5% 01/01/2023 SM Energy 5% 15/01/2024 SM Energy 5.625% 01/06/2025 Solvay Finance America 3.4% 03/12/2020 Solvay Finance America 4.45% 03/12/2025 Southwestern Electric Power 3.55% 15/02/2022 Spirit Airlines 2015-1 Pass Through Trust B 4.45% 01/10/2025 Standard Chartered 3.95% 11/01/2023 Sydney Airport Finance 3.375% 30/04/2025 Targa Resources Partners 4.125% 15/11/2019 TC Ziraat Bankasi 4.25% 03/07/2019 Telecom Italia Capital 6.375% 15/11/2033 Telecom Italia Capital 6% 30/09/2034 Telefonica Emisiones 5.462% 16/02/2021 Telefonica Emisiones 4.57% 27/04/2023 Telefonica Emisiones 7.045% 20/06/2036 Tenet Healthcare 4.5% 01/04/2021 Tenet Healthcare 4.375% 01/10/2021 Time Warner 5.35% 15/12/2043 Time Warner 4.65% 01/06/2044 Time Warner Cable 5.875% 15/11/2040 Time Warner Cable 5.5% 01/09/2041 Trans-Allegheny Interstate Line 3.85% 01/06/2025 Travelers 4.3% 25/08/2045 TTX 2.6% 15/06/2020 Turkiye Is Bankasi 5% 30/04/2020 Tyson Foods 2.65% 15/08/2019 Tyson Foods 3.95% 15/08/2024 Tyson Foods 4.875% 15/08/2034 United Airlines 2014-1 Class B Pass Through Trust 4.75% 11/10/2023 United Airlines 2014-2 Class B Pass Through Trust 4.625% 03/03/2024 UnitedHealth 2.7% 15/07/2020 UnitedHealth 4.75% 15/07/2045 US Airways 2013-1 Class A Pass Through Trust 3.95% 15/05/2027 US Treasury 0.625% 30/09/2017 US Treasury 1% 15/03/2019 US Treasury 1.125% 28/02/2021 US Treasury 2.5% 15/08/2023 US Treasury 2.5% 15/02/2046 Vale Overseas 4.375% 11/01/2022 Verizon Communications 3.5% 01/11/2024 Verizon Communications 5.05% 15/03/2034 Verizon Communications 3.85% 01/11/2042 Verizon Communications 4.862% 21/08/2046 Verizon Communications 4.522% 15/09/2048 Viacom 4.375% 15/03/2043 Viacom 5.85% 01/09/2043 Viacom 5.25% 01/04/2044 WEA Finance 3.25% 05/10/2020

11

Holdings 3,890,000 6,000,000 140,000 20,000 325,000 1,055,000 2,535,000 1,320,000 7,000,000 4,000,000

Market Value £000 2,854 4,241 70 10 156 502 1,775 932 5,075 2,632

% of Net Assets 0.20 0.30 0.01 0.04 0.13 0.07 0.36 0.19

4,000,000 5,000,000 3,060,000 3,000,000 2,386,000 4,300,000 1,825,000 1,359,000 4,000,000 6,500,000 1,480,000 5,241,000 3,990,000 1,910,000 4,091,000 3,000,000 4,000,000 5,000,000 3,000,000 1,985,000 3,855,000 6,010,000 4,760,464

2,679 3,415 2,008 2,084 1,638 2,814 1,431 1,027 3,471 4,502 1,023 3,883 2,703 1,361 2,796 2,136 2,958 3,469 2,084 1,409 2,825 4,402 3,265

0.19 0.24 0.14 0.15 0.12 0.20 0.10 0.07 0.25 0.32 0.07 0.28 0.19 0.10 0.20 0.15 0.21 0.25 0.15 0.10 0.20 0.31 0.23

4,754,733

3,264

0.23

4,870,000 4,620,000 7,238,760

3,507 3,673 5,146

0.25 0.26 0.37

620,000 9,960,000 10,105,000 22,635,000 3,000,000 2,500,000 2,015,000 8,000,000 11,000,000 6,380,000 4,890,000 2,717,000 60,000 100,000 8,020,000

430 6,937 6,980 16,717 2,024 1,456 1,462 5,966 6,804 4,663 3,369 1,455 40 62 5,649

0.03 0.49 0.50 1.19 0.14 0.10 0.10 0.42 0.48 0.33 0.24 0.10 0.40

St. James's Place Investment Grade Corporate Bond Unit Trust Portfolio Statement

(continued)

as at 31 March 2016 (unaudited)

Security Wells Fargo Commercial Mortgage Trust 2015-NXS4 3.718% 15/12/2048 Welltower 4% 01/06/2025 Whiting Petroleum 5.75% 15/03/2021 Whiting Petroleum 6.25% 01/04/2023 Whiting Petroleum 5% 15/03/2019 Williams Partners 4% 15/09/2025 Williams Partners 5.1% 15/09/2045 Willow No 2 Ireland PLC for Zurich Insurance 4.25% 01/10/2045 WPP Finance 2010 4.75% 21/11/2021 WPP Finance 2010 3.75% 19/09/2024 WPP Finance 2010 5.625% 15/11/2043 YPF 8.5% 23/03/2021 Zimmer Biomet 3.55% 01/04/2025

Holdings 1,234,000

Market Value £000 910

% of Net Assets 0.06

5,695,000 5,265,000 2,384,000 350,000 5,520,000 4,000,000 6,800,000

3,912 2,440 1,117 167 3,084 1,991 4,450

0.28 0.17 0.08 0.01 0.22 0.14 0.32

5,290,000 2,955,000 5,970,000 3,075,000 7,380,000

3,999 2,074 4,243 2,136 5,160

0.28 0.15 0.30 0.15 0.37

NON EQUITY INVESTMENT INSTRUMENTS (2.17%)

-

-

(31,118)

(2.22)

(583)

109

0.01

(40,000,000)

(61)

(0.01)

(20,000,000)

(91)

-

(33,000,000)

(738)

(0.06)

(132,500,000)

(1,785)

(0.12)

(118,651,500)

(1,208)

(0.09)

(45,000,000)

(481)

(0.04)

(250,000,000)

(3,698)

(0.27)

(12,500,000)

(340)

(0.03)

(248,000,000)

(4,515)

(0.32)

(29,000,000)

(262)

(0.02)

(35,000,000)

(1,644)

(0.12)

(78,500,000)

(2,919)

(0.21)

(132,000,000)

(3,666)

(0.26)

(40,000,000)

(1,273)

(0.09)

(165,000,000)

(5,524)

(0.39)

(107,544,800)

(4,076)

(0.29)

(25,000,000)

(1,286)

(0.09)

DERIVATIVES (-0.02%) Futures US Treasury 2 Year Note CBT Futures June 2016 Interest Rate Swaps Morgan Stanley Interest Rate Swap Pay 0.026% 28/10/2017 Morgan Stanley Interest Rate Swap Pay 1.001% 17/11/2017 Morgan Stanley Interest Rate Swap Pay 1.412% 19/10/2020 Morgan Stanley Interest Rate Swap Pay 0.325% 21/10/2020 Morgan Stanley Interest Rate Swap Pay 1.374% 21/10/2020 Morgan Stanley Interest Rate Swap Pay 0.256% 28/10/2020 Morgan Stanley Interest Rate Swap Pay 1.517% 04/11/2020 Morgan Stanley Interest Rate Swap Pay 1.518% 17/11/2020 Morgan Stanley Interest Rate Swap Pay 1.626% 19/11/2020 Morgan Stanley Interest Rate Swap Pay 0.231% 15/01/2021 Morgan Stanley Interest Rate Swap Pay 1.854% 19/10/2025 Morgan Stanley Interest Rate Swap Pay 0.944% 21/10/2025 Morgan Stanley Interest Rate Swap Pay 1.995% 21/10/2025 Morgan Stanley Interest Rate Swap Pay 0.878% 28/10/2025 Morgan Stanley Interest Rate Swap Pay 2.088% 04/11/2025 Morgan Stanley Interest Rate Swap Pay 2.162% 19/11/2025 Morgan Stanley Interest Rate Swap Pay 2.427% 21/10/2035

12

St. James's Place Investment Grade Corporate Bond Unit Trust Portfolio Statement

(continued)

as at 31 March 2016 (unaudited)

Security Morgan Stanley Interest Rate Swap Pay 1.435% 28/10/2035 Morgan Stanley Interest Rate Swap Pay 2.472% 04/11/2035 Morgan Stanley Interest Rate Swap Pay 2.172% 17/11/2035 Morgan Stanley Interest Rate Swap Pay 2.53% 19/11/2035 Morgan Stanley Interest Rate Swap Pay 2.534% 21/10/2045 Morgan Stanley Interest Rate Swap Pay 2.557% 04/11/2045 Morgan Stanley Interest Rate Swap Pay 2.138% 17/11/2045 Morgan Stanley Interest Rate Swap Pay 2.609% 19/11/2045 Forward Currency Contracts Bought USD16,500,000 for GBP11,377,600 Settlement 15/06/2016 Bought USD4,200,000 for GBP2,968,418 Settlement 15/06/2016 Bought USD85,000,000 for GBP59,210,343 Settlement 15/06/2016 Sold USD870,650,000 for GBP613,652,382 Settlement 15/06/2016 Sold USD647,440,000 for GBP456,326,076 Settlement 15/06/2016 Sold USD7,560,000 for GBP5,362,219 Settlement 15/06/2016 Sold USD10,210,000 for GBP7,180,649 Settlement 15/06/2016 Sold USD12,230,000 for GBP8,549,363 Settlement 15/06/2016 Sold USD7,690,000 for GBP5,306,724 Settlement 15/06/2016 Sold EUR6,890,000 for GBP5,355,280 Settlement 15/06/2016

13

Holdings (2,000,000)

Market Value £000 (140)

% of Net Assets (0.01)

(30,000,000)

(1,692)

(0.12)

(11,000,000)

(1,003)

(0.07)

(9,562,650)

(601)

(0.04)

(20,000,000)

(1,371)

(0.10)

(36,000,000)

(2,591)

(0.19)

(1,500,000)

(186)

(0.02)

(5,938,920)

(475)

(0.03)

78

0.01

(53)

-

(198)

(0.01)

9,195

0.65

6,834

0.49

114

0.01

92

0.01

59

-

(32)

-

(99)

(0.01)

St. James's Place Investment Grade Corporate Bond Unit Trust Portfolio Statement

(continued)

as at 31 March 2016 (unaudited)

Security Sold EUR15,000,000 for GBP11,690,400 Settlement 15/06/2016 Sold EUR332,740,000 for GBP257,981,641 Settlement 15/06/2016 Investment assets^ Total other assets (net) Net assets

Market Value £000 (183)

% of Net Assets (0.01)

(5,408)

(0.38)

1,290,203

91.76

115,857

8.24

1,406,060

100.00

Comparative figures shown in brackets relate to 30 September 2015. All investments are approved securities as defined in the Collective Investment Schemes sourcebook unless otherwise stated. Derivative contracts were traded on an eligible derivatives exchange. † During the period under review the Manager decided to place some of the sterling cash held on deposit into the St. James’s Place Money Market Unit Trust in order to spread risk across a number of institutions. The St. James’s Place Money Market Unit Trust is highly liquid and is rated AAA by Standard & Poors. This investment is a related party. ^ Including investment liabilities of (£47,599K).

14

St. James's Place Investment Grade Corporate Bond Unit Trust Material Portfolio Changes Purchases UK Long Gilt Bond Futures December 2015 US Treasury 10 Year Note CBT Futures December 2015 US Treasury 0.625% 30/09/2017 Morgan Stanley Interest Rate Swap Pay 1.626% 19/11/2020 Morgan Stanley Interest Rate Swap Pay 1.517% 04/11/2020 US Treasury 2 Year Note CBT Futures December 2015 US Treasury 2 Year Note CBT Futures March 2016 Euro-Bund Futures December 2015 Morgan Stanley Interest Rate Swap Pay 2.088% 04/11/2025 Morgan Stanley Interest Rate Swap Pay 1.374% 21/10/2020

Cost £000 833,231 668,006 163,352 163,126 161,645 151,530 147,626 109,126 106,686 106,493

Sales UK Long Gilt Bond Futures December 2015 US Treasury 10 Year Note CBT Futures December 2016 US Treasury 0.625% 30/09/2017 Morgan Stanley Interest Rate Swap Pay 1.626% 19/11/2020 Morgan Stanley Interest Rate Swap Pay 1.517% 04/11/2020 US Treasury 2 Year Note CBT Futures December 2016 US Treasury 2 Year Note CBT Futures March 2016 Euro-Bund Futures December 2015 Morgan Stanley Interest Rate Swap Pay 2.088% 04/11/2025 Morgan Stanley Interest Rate Swap Pay 1.374% 21/10/2020

Proceeds £000 772,821 674,557 164,256 163,126 161,645 149,460 137,050 110,818 106,686 106,493

Purchases and sales of futures have been included at the value of their exposure.

15

St. James's Place Investment Grade Corporate Bond Unit Trust Statement of Total Return for the period ended 31 March 2016 (unaudited) 01/10/15 to 31/03/16 £000 £000

01/10/14 to 31/03/15 £000 £000

Income Net capital (losses)/gains Revenue Expenses Interest payable and similar charges

24,233 (8,538) (49)

(1)

Net revenue before taxation Taxation

15,646 (3,522)

10,780 -

(15,821)

45,181 18,079 (7,298)

Net revenue after taxation

12,124

10,780

Total return before distributions Distributions

(3,697) (20,570)

55,961 (17,570)

Change in net assets attributable to unitholders from investment activities

(24,267)

38,391

Statement of Change in Net Assets Attributable to Unitholders for the period ended 31 March 2016 (unaudited) 01/10/15 to 31/03/16 £000 £000 Opening net assets attributable to unitholders 1,287,140 Movement due to creation and cancellation of units: Amounts receivable on creation of units* 247,076 Amounts payable on cancellation of units* (123,157)

01/10/14 to 31/03/15 £000 £000 1,044,606

123,919

128,608

Change in net assets attributable to unitholders from investment activities (see above) Retained distribution on accumulation units

(24,267) 19,268

38,391 14,069

Closing net assets attributable to unitholders

1,406,060

1,225,674

252,958 (124,350)

*Prior year figures in relation to Dilution Levy have been reclassified and included within creations and cancellation of units as this was income and expenses arising from creations and cancellations respectively. Comparative information is provided for the Statement of Change in Net Assets Attributable to Unitholders. Since this information is for the prior interim period, the net assets at the end of that period do not correspond to the net assets at the start of the current period.

Information Classification: General 16

St. James's Place Investment Grade Corporate Bond Unit Trust Balance Sheet as at 31 March 2016 (unaudited) 31/03/16 £000

£000

30/09/15 £000

£000

Assets Investments

1,337,802

1,256,176

Debtors

69,666

28,584

Cash and bank balances

69,831

18,082

1,477,299

1,302,842

(47,599)

(244)

Current assets

Total assets Liabilities Investment liabilities Creditors Bank overdrafts Distribution payable Other creditors Total liabilities Net assets attributable to unitholders

-

(37)

(5,856)

(5,553)

(17,784)

(9,868)

(71,239) 1,406,060

(15,702) 1,287,140

Accounting and Distribution policies for the period ended 31 March 2016 (unaudited) Basis of accounting The Financial Statements have been prepared under the historical cost basis, as modified by the revaluation of investments, in compliance with the Financial Conduct Authority's Collective Investment Schemes Sourcebook. They have been prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 (The Financial Reporting Standard applicable in the UK and Republic of Ireland FRS 102) and in accordance with the Statement of Recommended Practice (SORP) for Financial Statements of Authorised Funds issued by the Investment Management Association May 2014 (IMA SORP 2014). The changes in the SORP 2014 are presentational only and there have been no changes to any figures detailed with the financial statements. The financial statements are prepared on the going concern basis.

Directors' Certificate This report is certified in accordance with the requirements of the rules in the Financial Conduct Authority's Collective Investment Schemes Sourcebook.

A. M. Croft

D. J. Lamb London 27 May 2016

Information Classification: General 17

St. James's Place Investment Grade Corporate Bond Unit Trust Distribution Tables Distributions in pence per unit Group 1

First interim Units purchased prior to 1 October 2015 Second interim Units purchased prior to 1 January 2016

Group 2

First interim Units purchased on or after 1 October 2015 to 31 December 2015 Second interim Units purchased on or after 1 January 2016 to 31 March 2016

Income

Distributions paid to/ Distributions payable Net paid to 31/07/16 revenue Equalisation 31/07/15

Gross revenue

Income tax

Group 1 First interim Second interim

(p) 1.046 1.154

(p) 0.209 0.231

(p) 0.837 0.923

(p) -

(p) 0.837 0.923

(p) 0.806 0.786

Group 2 First interim Second interim

(p) 0.586 0.564

(p) 0.117 0.113

(p) 0.469 0.451

(p) 0.368 0.472

(p) 0.837 0.923

(p) 0.806 0.786

Accumulation

Distributions paid to/ Distributions Net payable paid to revenue Equalisation 31/05/16 31/05/15

Gross revenue

Income tax

Group 1 First interim Second interim

(p) 1.309 1.458

(p) 0.262 0.292

(p) 1.047 1.166

(p) -

(p) 1.047 1.166

(p) 0.983 0.966

Group 2 First interim Second interim

(p) 0.677 0.701

(p) 0.135 0.140

(p) 0.542 0.561

(p) 0.505 0.605

(p) 1.047 1.166

(p) 0.983 0.966

Gross Income

Distributions paid to/ Distributions Net payable paid to revenue Equalisation 31/05/16 31/05/15

Gross revenue

Income tax

Group 1 First interim Second interim

(p) 1.045 1.156

(p) -

(p) 1.045 1.156

(p) -

(p) 1.045 1.156

(p) 1.005 0.980

Group 2 First interim Second interim

(p) 0.536 0.561

(p) -

(p) 0.536 0.561

(p) 0.509 0.595

(p) 1.045 1.156

(p) 1.005 0.980

Gross Accumulation

Distributions paid to/ Distributions Net payable paid to revenue Equalisation 31/05/16 31/05/15

Gross revenue

Income tax

Group 1 First interim Second interim

(p) 1.316 1.468

(p) -

(p) 1.316 1.468

(p) -

(p) 1.316 1.468

(p) 1.228 1.207

Group 2 First interim Second interim

(p) 0.682 0.703

(p) -

(p) 0.682 0.703

(p) 0.634 0.765

(p) 1.316 1.468

(p) 1.228 1.207

Information Classification: General 18

St. James's Place Investment Grade Corporate Bond Unit Trust General Information The Trust St. James's Place Investment Grade Corporate Bond Unit Trust is an authorised Unit Trust scheme under section 243 of the Financial Services and Markets Act (2000) and is constituted by a Trust Deed dated 2 April 2009. The Unit Trust is subject to the rules of the Financial Conduct Authority's Collective Investment Scheme Sourcebook and is classified as a UCITS Scheme. The Trust Manager The Manager of the Trust is St. James's Place Unit Trust Group Limited which is authorised and regulated by the Financial Conduct Authority. Investment Objectives The investment objective of the Scheme is to provide an optimum balance of income generation and capital appreciation. To achieve this, the Scheme will invest predominantly in a portfolio of investment grade* company debt securities. The Scheme may invest in any geographic area. The Scheme is also permitted to invest in other asset classes permitted for UCITS Schemes including transferable securities, debt securities (which may include some or all of government bonds, supranational bonds, asset backed securities and mortgage backed securities), money market instruments, cash and near cash, units in collective investment schemes, and deposits. The Scheme is permitted to invest in derivatives for investment purposes and for the purposes of efficient portfolio management (including hedging). *Investment grade requires a credit rating equivalent to no lower than a ‘BBB minus’ from the ratings agency Standard & Poor’s. Please note that the investment objectives of the Scheme were amended by an Extraordinary General Meeting of Unitholders on 18 August 2015. The investment objectives prior to 19 October 2015 were as follows: The investment objective of the Scheme is to provide an optimum balance of income generation and capital appreciation. To achieve this, the Scheme will invest predominantly in a portfolio of investment grade* UK and EC company debt securities. The Scheme is also permitted to invest in other asset classes permitted for UCITS Schemes including transferable securities, money market instruments, cash and near cash, units in collective investment schemes and deposits. The Scheme is permitted to invest in derivative and forward transactions for the purposes of efficient portfolio management (including hedging). *Investment grade requires a credit rating equivalent to no lower than a 'BBB minus' from the ratings agency Standard & Poor's. It is the Manager's intention that the assets of the Unit Trust will be invested so that the Unit Trust will be eligible for inclusion in an ISA.

Information Classification: General 19

St. James's Place Investment Grade Corporate Bond Unit Trust General Information

(continued)

Efficient Portfolio Management The efficient portfolio management techniques permitted in the fund as at 31 March 2016 comprise of: Technique Exchange Traded Futures Currency Forwards

Counterparty

Exposure (£)

JP Morgan Chase Bank N.A

(88,519,237)

MORGAN STANLEY AND CO INC

481,109,447

BANK OF AMERICA, N.A.

955,883,528

The efficient portfolio management techniques permitted in the fund as at 30 September 2015 comprise of: Technique Exchange Traded Futures

Counterparty

Exposure (£)

JP Morgan Chase Bank N.A

(67,445,640)

The revenues in the period were nil with no collateral placed or received. Unit Dealings Dealings on the Trust take place on a daily basis. Purchase or sale instructions can be made by telephone or in writing to St. James's Place Unit Trust Group Limited, PO Box 9034, Chelmsford, CM99 2XA, United Kingdom, freephone: 0800 027 1031. The Manager adopts a policy of forward pricing, i.e. the order will be transacted on the dealing day following receipt of the client's instructions, or if received before noon, on that dealing day. In the case of telephone purchases of units from the Manager, settlement must be by return of post after receipt of the contract note. In the case of telephone redemptions, the proceeds will not become payable until the receipt at the Administration Centre of a written request. A contract note confirming the subscription or redemption price and the number of units involved will be forwarded, together with a cancellation notice, where appropriate, on the next business day. The most recent issue and redemption prices will be published on the Manager's website: www.sjp.co.uk and are available by calling the Administration Centre on 0800 027 1031. Minimum Investment The minimum lump sum investment is £1,500, thereafter the minimum additional investment is £1,000. The minimum monthly investment is £150 and the minimum monthly increment is £50. The minimum annual investment is £1,500 and the minimum annual increment is £500. Gross Unit Classes On 6 October 2014 the Manager launched gross income and accumulation unit classes in the Scheme. Gross income units and gross accumulation units are only available for investments held within an ISA. Management Charges With effect from 26 October 2015 the Manager changed the charging structure of the Scheme. The annual management charge has been adjusted to include many of the predictable costs, such as trustee fees and administration fees, which were previously charged directly to the Scheme, and to exclude the fees for Investment Advisers, which are now charged directly to the Scheme. These changes were presentational only and there has been no overall increase in the total charges met by the Scheme. In addition, the way the annual management charge is calculated has been changed. The charge was previously calculated monthly, based on the Scheme value on the first business day of the month; with effect from 26 October 2015 it is calculated daily, based on the Scheme value every day. The Trust Deed permits the following management charges which are receivable by the Manager: (a) A Preliminary Charge of 5 per cent which is included in the offer price of the Units. (b) An Annual Management Charge at a rate of 1.12 per cent (1.21 per cent prior to 26 October 2015) of the value of the Trust.

20

Information Classification: General

St. James's Place Investment Grade Corporate Bond Unit Trust General Information

(continued)

Income Distributions Income distributions are made quarterly on or before the 31 January, 30 April, 31 July and 31 October. Accumulation Distributions Revenue due to accumulation unitholders is reflected in the price of their units. Tax Vouchers Income unitholders that receive income distributions by direct credit and accumulation unitholders (where the distribution income is reinvested) receive an annual consolidated tax voucher in May with all the relevant payment and tax information required to complete a tax return. Tax vouchers will be enclosed if income unitholders receive payment by cheque. Report A report is sent semi-annually to all unitholders on or before 31 May and 30 November. Capital Gains Tax The Trust is not liable to tax on capital gains and any individual holding units will not be liable to capital gains tax unless the total chargeable gains for the tax year 2016/2017 exceed £11,100 (2015/2016 £11,100). To calculate capital gains on accumulation units, the total amount of reinvested net revenue (shown on the annual tax credit vouchers) should be added to the base cost of the units purchased. Unitholders should consult their professional advisers for any advice regarding their tax position.

Information Classification: General 21

St. James’s Place Unit Trust Group Ltd is authorised and regulated by the Financial Conduct Authority. St. James’s Place Unit Trust Group Ltd Registered Office: St. James’s Place House, 1 Tetbury Road, Cirencester, Gloucestershire, GL7 1FP, United Kingdom. Registered in England Number 947644.

Perivan Financial Print   240850

Investment Grade Corporate Bond (05/16)