standard life investments global slcav
TRANSCRIPT
2 5 AOUT 2004
STANDARD LIFE INVESTMENTS
Standard Life Investments Global SlCAV Unaudited interim report for the period 1 January 2004 to 30 June 2004
No subscription can be received on the basis of financial reports. Subscriptions are only valid if made on the basis of the current prospectus accompanied by the latest annual and the most recent semi-annual report, if published thereafter.The figures stated in this report are historical and not necessarily indicative of future performance.
Standard Life Investments Global SlCAV Societk d'lnvestissement a Capital Variable
Registered Office 5, rue Plaetis L-2338 Luxembourg
Board of Directors
Chairman Mr Neil J. McPherson Head of European Development Standard Life Investments Limited Edinburgh Scotland
I Members I Mr James B. Aird
Managing Director - Mutual Funds Standard Life Investments Limited Edinburgh Scotland
Mr Robert Knight Chief Executive Officer Standard Life (Asia) Limited Hong Kong
Mr Kevin Smith Chief Executive Officer Standard Life Investments (Asia) Limited Hong Kong
Mr Christian Kremer Avocat a la Cour Kremer Associes & Clifford Chance Luxembourg
I
Administration and Advisors
Custodian and Central Administration J.P. Morgan Bank Luxembourg S.A. 5, rue Plaetis L-2338 Luxembourg
Portfolio Manager Standard Life Investments Limited 1, George Street Edinburgh EH2 2LL Scotland
Independent Auditor PricewaterhouseCoopers $.a r.1. Reviseur d'entreprises 400, route d'Esch B.P. 1443 L-1 01 4 Luxembourg
Legal Advisor Kremer Associes & Clifford Chance 6, rue Heinrich Heine L-1720 Luxembourg
Sub-portfolio Manager Standard Life Investments Inc 1001, Blvd de Maisonneuve West, Suite 700 Montreal, Quebec H3A 3C8 Canada
Standard Life Investments (Asia) Limited 1, George Street Edinburgh EH2 2LL Scotland
Investment Markets Overview
Combined Statement of Net Assets
Combined Statement of Operations and Changes in Net Assets
Statement of Changes in the Number of Shares
Statistics
US Equities Fund Objective and Policy of the Fund Fund Performance Review and Outlook Economic Classification Ten Largest Holdings Schedule of Investments
European Equities Fund Objective and Policy of the Fund Fund Performance Review and Outlook Geographical Classification Ten Largest Holdings Schedule of Investments
Asian Equities Fund Objective and Policy of the Fund Fund Performance Review and Outlook Geographical Classification Ten Largest Holdings Schedule of Investments
t ong Kong Equities Fund Objective and Policy of the Fund Fund Performance Review and Outlook Economic Classification Ten Largest Holdings Schedule of Investments
Japanese Equities Fund Objective and Policy of the Fund Fund Performance Review and Outlook Economic Classification Ten Largest Holdings Schedule of Investments
Page no
4
6
8
10
11
12
17
21
25
29
Page no Taiwan Equities Fund 36
Objective and Policy of the Fund Fund Performance Review and Outlook Economic Classification Ten Largest Holdings Schedule of Investments
Korean Equities Fund Objective and Policy of the Fund Fund Performance Review and Outlook Economic Classification Ten Largest Holdings Schedule of Investments
Global Equities Fund Objective and Policy of the Fund Fund Performance Review and Outlook Geographical Classification Ten Largest Holdings Schedule of Investments
Global Bond Fund Objective and Policy of the Fund Fund Performance Review and Outlook Geographical Classification Ten Largest Holdings Schedule of Investments
39
43
49
Pan European Corporate Bond Fund 51 Objective and Policy of the Fund Fund Performance Review and Outlook Geographical Classification Ten Largest Holdings Schedule of Investments
Reserve Fund Objective and Policy of the Fund Fund Performance Review and Outlook Economic Classification Schedule of Investments
55
Notes to the Financial Statements 57
Statement of Changes in the Portfolio 63
General Information 63
,
Investment Markets Overview
01 / North America (cont) Outlook Investors focused on global investment issues such as economic data and oil prices.
For the first time in four years, the US announced a 0.25% increase in interest rates.
Global economic growth continued to broaden out during the first half of 2004, with improvements seen in all major developed countries. At times, equities were buoyed by positive economic news from the US, Japan and the Pacific Basin and excellent corporate results from around the world. However, investors' confidence was tempered by the rising oil price, concerns over whether the Chinese government could engineer a gentle slowdown in its economy and, most importantly, the direction of US interest rates. Investors' expectations for US interest rates rose sharply and bond markets ended the period in negative territory.
01 / North America In the US, the Federal Reserve bowed to increasing economic pressure and announced an interest rate rise of 0.25% in June, the first upward move since May 2000. High oil prices dominated markets during much of the period, reaching a record high of more than $42 per barrel, before OPEC moved to ease the pressure by boosting output. The mood during the quarterly earnings reporting seasons was also positive, with the large majority of companies exceeding forecasts, although reaction was muted as the markets began to price in interest rate hikes.
Later in the period, investors overcame worries about inflation and a growing trade deficit to push stocks moderately higher. However, the major indices remained hesitant ahead of the June Federal Reserve meeting and the transfer of power in Iraq and continued to trade within narrow ranges.
02 / Europe (Excluding UK) European equities enjoyed a strong start to the year despite giving back some of their gains towards the end of the first quarter. Security issues also affected investor sentiment after the Madrid bombings. On the economic front, the German Ifo survey of business confidence fell in both February and March, after nine consecutive monthly rises, casting some doubt on the fragile European economic recovery. Earnings announcements were generally positive, while merger and acquisition activity, be it rumoured or real, drove equities higher as corporate restructuring continued and companies looked for ways to expand. European equities fared well during a volatile second quarter with a late rally towards the end of June helping them to outperform most of their international counterparts. With macroeconomic issues dominating investor sentiment for much of the period, markets generally failed to reward companies for positive corporate earnings news until late in the period.
Standard Life Investments Global SlCAV Report and Accounts 4
I nvest m ent Markets Overview (con tin ued)
03 / Japan The Japanese equity market performed strongly during the first quarter of 2004, backed by data showing the fastest economic growth rate in 13 years. The robust figures encouraged ratings agency Standard 8 Poor's to upgrade its outlook for Japan from negative to stable. Generally, the Japanese corporate reporting season was positive but there was little reaction from the market. Japanese equity markets rose in yen terms during the second quarter. Concerns over possible interest rate hikes in the US and China combined with rising oil prices buffeted the market during May. However, better than expected economic growth, supported by stronger domestic demand, helped to alleviate investor fears over the sustainability of the Japanese recovery. Economic news remained positive with growing household consumption, falling unemployment and rising machinery orders.
04 / Pacific Basin Asian markets were volatile during the period, rising in the first quarter and giving back some of their gains in the second quarter. Investors remained worried about surging oil prices and the effects of monetary tightening in China and the US. This encouraged funds to flow out of Asia in favour of dollar-denominated assets. Regional economic indicators were positive overall and exports remained at high levels. In Hong Kong, consumer prices were strong and first quarter economic growth came in above expectations a t 6.8% year on year.
04 / Pacific Basin (cont) More encouragingly, there was evidence of growth broadening out, with increases in domestic consumption and investment. A gradual slowdown in the Chinese economy finally began to emerge with industrial production growth and loan growth falling back slightly. Political issues remained in the news, especially in Taiwan, where an election recount was demanded following a controversial victory for the DPP party.
Global Bonds After a quiet first quarter, government bond markets fell sharply in the second quarter, as strong economic data in most regions and rising oil prices led investors to raise their expectations for interest rate rises. All government bond markets ended the second quarter in negative territory, with the US Treasury market the worst performing region. The trigger to the fall in global bond prices was April's US non-farm payrolls report, which showed that the US jobs market was finally participating in the economic recovery. Investors had been waiting for the first signs of strength in US employment before starting to factor in higher interest rates to Treasury prices. As a result, there was a sharp reaction in bond markets and ten-year yields rose by around 1 % over the second quarter.
Standard Life Investments Global SICAV Report and Accounts
Standard Life Investments Global SICAV
Combined Statement of Net Assets as at 30 June 2004
US European Asian Hong Kong japanese Taiwan
Equities Fund Equities Fund Equities Fund Equities Fund Equities Fund Equities Fund
( U W (EUR) (USW ( H W (JW (USW
Assets Investments in Securities at Market Value
Aquisition Cost: Cash at Bank Amounts Receivable on Sale of Investments interest and Dividends Receivable, Net Reimbursement receivable from Portfolio Manager (note 3) Unrealised Gain on Forward Foreign Exchange Contracts (note 6) Unrealised Gain on Swap agreements (note 7)
Total Assets
Liabilities Bank overdraft Amounts Payable on Purchase of Investments Fees Payable (notes 3 and 5) Unreaiised Loss on Forward Foreign Exchange Contracts (note 6)
Total Liabilities
Total Net Assets
Number of A Shares Outstanding Net Asset Value Per A Share
Number of D Shares Outstanding Net Asset Value Per D Share
Number of Z Shares Outstanding Net Asset Value Per Z Share
9,983,155 8,048,069 16,788,287 89,765,200 631,101,700 10,314,095
9,470,316 8,818,440 15,825,126 88,829,851 571,588,450 9,464,343 220,144 54,488 3,018,768 7,423,088 433,929
22,589 92,079 - 13,828,035 6,243 15,489 32,121 169,185 21 3,135 47,933
6,358 1 1,282 61.1 60 2,036,493 7,632
10,215,900 8,097,429 16,966,975 93,014,313 654,602,451 10,803,589
61,179 - 1,190,588 9,939,153
10,257 8,920 15,241 110,573 1,156,824 10,803
10,257 70,099 15,241 1,301,161 1 1,095,977 10,803
10,205,643 8,027,330 16,951,734 91,713,152 643,506,474 10,792,786
21,123 13,382 27,338 24,202 6,752 2,811 9.1 2 6.22 11.37 104.18 1.1 80.1 8 12.82
1,065,000 1,240,000 1,420,000 830,000 520,000 787,985 9.40 6.41 11.72 107.46 1,222.1 9 13.65
The accompanying notes form an integral part of these financial statements.
Standard Life investments Global SICAV Report and Accounts 6
Standard Life Investments Global SICAV
Combined Statement of Net Assets (continued)
Assets
Investments in Securities at Market Value
Aquisition Cost:
Cash at Bank Amounts Receivable on Sale of Investments Interest and Dividends Receivable, Net Reimbursement receivable from Portfolio Manager (note 3) Unrealised Gain on Forward Foreign Exchange Contracts (note 6) Unrealised Gain on Swap agreements (note 7)
Total Assets
Liabilities Bank overdraft
Amounts Payable on Purchase of Investments Fees Payable (notes 3 and 5) Unreaiised Loss on Forward Foreign Exchange Contracts (note 6)
Total Liabilities
Total Net Assets
Number of A Shares Outstanding Net Asset Value Per A Share
Number of D Shares Outstanding Net Asset Value Per D Share
Number of Z Shares Outstanding
Net Asset Value Per Z Share
Korean Global Equities Fund Equities Fund
( U W W D )
10,348,330 21,288,762
8,310,118 19,012,979 190,892 358,938
2,016 24,385
8,417
Pan European
Global Corporate Bond Fund Bond Fund
(USD) W R )
25,856,639 14,905,879
23,118,390 15,025,635 974,261 597,906 435,563 461,464 270,472
Reserve Combined
Fund
W D ) ( U W
8,985,550 148,715,727
8,985,550 139,750,688 509,177 3,922,334
682,103 3 944,685
I
148 5,049 7,638 76,556
620 752 10,754 13,045
10,549.655 21,672,085 27,728,075 15,790,680 9,502,368 154,355.202
74,210 425,813 249,615 972,569
10,451 20,538 30,174 8,838 10,249 154,060
49.41 5 49,415
10.451 20.538 505.402 258.453 10.249 1.250.254
10,539,204 21,651,547 27,222,673 15,532,227 9,492,119 153,104,948
2,919 7,955 32,554 10,512 17,147 11.66 13.08 12.84 10.25 10.47
787,985 1,575,970 2,048,873 10,000 880,662 13.33 13.67 13.08 10.31 10.57
The accompanying notes form an integral part of these financial statements.
- 1,480,000 10.35
7 Standard Life Investments Global SICAV Report and Accounts
.-
Standard Life Investments Global SICAV
Combined Statement of Operations and Changes in Net Assets for the period ended 30 June 2004
Net Assets at the Beginning of the Period
Income Dividend Income, Net Interest Income, Net Bank Interest, Net
Total Income
Expenses All Inclusive Fees (note 3) Professional Fees Printing Sr Publication Fees Transaction Fees Taxe d'abonnement (note 5) Sundry Expenses
Total Expenses
Net Investment Income
Net Realised Cain/(Loss) on Sale of Investments Net Realised Cain/(Loss) on Forward Foreign Exchange Contracts Net Realised Cain/(Loss) on Foreign Exchange
Net Realised Gain/(Loss) for the Period
US European Asian Hong Kong Japanese Taiwan
Equities Fund Equities Fund Equities Fund Equities Fund Equities Fund Equities Fund
(U 5 D) (FUR) (USD) (HKW ( IPV (USD)
10,102,420 7,540,567 17,295,230 94,009,075 575,828,052 1 1,164,022
48,374 141,647 306,437 1,663,938 3,412,856 233,795
536
48,374 141,647 306,437 1,663,938 3,412,856 2 34,3 3 1
26,527 20,124 46,171 250,385 1,533,683 29,248 7,096 5,831 10,031 55,402 745,378 7,096
80 66 80 628 8,736 80 1,723 725 8,453 51,410 388,044 1,787
567 420 959 5,732 32,723 577 146 629 1,226 85 622 3
36,139 27,795 66,920 363,642 2,709,186 38,791
12,235 11 3,852 239,517 1,300,296 703,670 195,540
467,093 (84,720) 608,929 5,457,765 38,361,714 487,160
(1 28) (2,805) 290 3,387 (794) (3,724)
464,288 (84,430) 61 2.1 88 5,456,971 38,361.71 4 483.436
Change in Net Unrealised Appreciation/(Depreciation) on:
Investments (285,307) 481,798 (1,258,651) (9,349,340) 25,421,146 (1,012,764) Forward Foreign Exchange Contracts
Foreign Exchange (4) 108 (643) 66 (2,927) Swap agreements
Change in Net Unrealised
Appreciation/(Depreciation) for the Period (285,311) 481,906 (1,259,294) (9,349,274) 25,421,146 (1,015,691)
Increase/(Decrease) in Net Assets
as a Result of Operations 191,212 $1 1,328 (407,589) (2,592,007) 64,486,530 (336,715)
Movements in Share Capital
Subscriptions 2051 3 41,285 139,576 720,000 5,375,217 6,387 Redemptions (1 08,502) (65,850) (75,483) (423,916) (2,183,325) (40,908)
Increase/(Decrease) in Net Assets as a Result of
Movements in Share Capital (87,989) (24,565) 64,093 296,084 3,191,892 (34,521)
Net Assets at the End of the Period 10,205,643 8,027,330 16.95 1,734 91,713,152 643,506,474 10,792,786
The accompanying notes form an integral part of these financial statements.
Standard Life Investments Global SICAV Report and Accounts 8
Standard Life Investments Global SICAV
Combined Statement of Operations and Changes in Net Assets (continued)
Net Assets at the Beginning of the Period
Income Dividend Income, Net Interest Income, Net Bank Interest, Net
Total Income
Expenses All Inclusive Fees (note 3) Professional Fees Printing & Publication Fees Transaction Fees Taxe d'abonnement (note 5) Sundry Expenses
Total Expenses
Net Investment Income
Net Realised Gain/(Loss) on Sale of Investments Net Realised Cain/(Loss) on Forward Foreign Exchange Contracts Net Realised Cain/(Loss) on Foreign Exchange
Net Realised Gain/(Loss) for the Period
Pan European Korean Global Global Corporate Reserve Combined
Equities Fund Equities Fund Bond Fund Bond Fund Fund
(U5W ( U W ( U W ( E W ( U W W D ) 10,863,664 20,74a,ia3 27,747,836 i5,i 70,369 9,485,703 i52,299,4i I *
153,370 232,680 - 1,391,167 495,653 458,747 43,995 1,096,108
34 3 524 1,403
153,713 233,204 495,653 45 8,74 7 43,995 2,488,678
28,371 53,840 69,859 959 23,860 349,643
80 ao 80 66 80 881 690 5,618 408 932 254 31,100 582 1,115 1,478 796 487 8,276
9 227 2 15 2,408
36.81 9 67,758 79,148 8,586 31,792 473.01 3
7,096 7,096 7,096 5,831 7,096 ao, 705
1 16,894 165,446 41 6,505 450,161 12,203 2,015,665
1 77,221 1,817,152 1 , I 50,508 (1 6,399) - 5,637,637
(455) (1 23,862) 75 3 - (123,532) 1,426 (7,331) 69,049 (1,359) 2 58,606
178,647 1,809,366 1,095,695 (1 7,005) 2 5,572,711
Change in Net Unrealised Appreciation/(Depreciation) on:
Forward Foreign Exchange Contracts 242,915 620 243,667 (8) (2) (61,482) Foreign Exchange (1 45) (363) (57,528)
Swap agreements (1,590) (1.929)
Investments (592,669) (1,043,532) (2,227,220) (75,607) - (6,892,527)
Change in Net Unrealised Appreciation/(Depreciation) for the Period (592,ai 4) (I ,043,895) (2,041,833) (76,585) (2) (6,712,271)
Increase/(Decrease) in Net Assets as a Result of Operations
Movements in Share Capital Subscriptions Redemptions
(297,273) 930,917 (529,633) 356,571 12,203 876,105
28,206 20,478 5,287 14,106 427,460 (27,187) (55,759) (1 6,008) (1 9,893) (498,028)
Increase/(Decrease) in Net Assets as a Result of Movements in Share Capital (27,187) (27,553) 4,470 5,287 (5,787) (70,568)
Net Assets at the End of the Period 10,539,204 21,651,547 27,222,673 15,532,227 9,492,119 153,104,948
*The opening combined balance was based on the foreign exchange rates as at 30 June 2004. The same combined net assets using the foreign exchange rates as at 31 December 2003 reflected a figure of USD 153,541,102.
The accompanying notes form an integral part of these financial statements.
9 Standard Life Investments Global SICAV Report and Accounts
Standard Life Investments Global SICAV
Statement of Changes in the Number of Shares as a t 30 June 2004
US European Asian Hong Kong Japanese Taiwan
Equities Fund Equities Fund Equities Fund Equites Fund Equites Fund Equltes Fund Number of A Shares in issue at the Beginning of the Period Number of A Shares Subscribed Number of A Shares Redeemed Number of A Shares in Issue at the End of the Period Number of D Shares in issue a t the Beginning of the Period Number of D Shares Subscribed Number of D Shares Redeemed Number of D Shares in Issue at the End of the Period Number of Z Shares in Issue at the Beginning of the Period Number of Z Shares Subscribed Number of Z Shares Redeemed Number of Z Shares in Issue at the End of the Period Total Number of Shares in Issue at the End of the Period
Number of A Shares in Issue at the Beginning of the Period Number of A Shares Subscribed Number of A Shares Redeemed Number of A Shares in Issue at the End of the Period Number of D Shares in Issue at the Beginning of the Period Number of D Shares Subscribed Number of D Shares Redeemed Number of D Shares in Issue at the End of the Period Number of Z Shares in Issue at the Beginning of the Period Number of Z Shares Subscribed Number of Z Shares Redeemed Number of Z Shares in Issue at the End of the Period Total Number of Shares in Issue at the End of the Period
31,033 17,644 21,785 21,314 4,368 5,138 2,240 6,638 11,853 6,888 4,498 473
(12,150) (10,900) (6,300) (4,000) (2,114) (2,800)
21,123 13,382 27,338 24,202 6,75 2 2,811
1,065,000 1,240,000 1,420,000 8 30,000 5 2 0,000 787,985
1.065.000 1.240.000 1.420.000 830.000 520,000 7a7.985
1,086,123 1,253,382 1,447,338 854,202 526,752 790,796
Pan European Korean Global Global Corporate Reserve
Equities Fund Equities Fund Bond Fund Bond Fund Fund
5,149 10,135 32,212 10,000 17,700 2,170 1,542 51 2 1,347
(2,230) (4,350) (1,200) (1,900)
2,919 7,955 32,554 10,512 17,147
787,985 1,575,970 2,048,873 10,000 880,662
787,985 I ,575,970 2,048,873 10,000 880,662
- 1,480,000
- 1.480.000
790,904 1,583,925 2,081,427 1,500,512 897,809
The accompanying notes form an integral part of these financial statements.
Standard Life Investments Global SICAV Report and Accounts 10
Standard Life Investments Global SICAV
Statistics as at 30 June 2004
US European Asian Hong Kong
Equities Fund Equities Fund Equities Fund Equites Fund
Japanese Taiwan
Equites Fund Equites Fund
(JW (USD) ( U W
10,205,643 10,102,420 7,714,605 9,986,211
9.1 2 8.98 7.05 9.23
9.40 9.22 7.1 8 9.32
Korean
(EUR)
8,027,3 30 7,540,567 6,455,241 9,690,764
6.22 5.85 5.08 7.70
6.41 6.00 5.16 7.77
Global
Total Net Assets: 30 June 2004 31 December 2003 31 December 2002 31 December 2001
Net Asset Value per A Share 30 June 2004 31 December 2003 31 December 2002 31 December 2001
Net Asset Value per D Share 30 June 2004 31 December 2003 31 December 2002 31 December 2001
Net Asset Value per Z Share 30 June 2004 31 December 2003
I 643,506,474 10,792,786 575,828,052 11,164,022 475,113,820 8,036,936 576,357,914
I
16,951,734 91,713,152 17,295,230 94,009,075 12,374,236 65,021,384 14,167,311 76,873,238
11.37 104.1 8 1 1.69 107.58 8.51 75.39 9.84 90.34
1,180.1 8 1,065.1 3
885.99 1,083.52
12.82 I
13.27 9.69
11.72 107.46 12.00 1 10.50 8.66 76.77 9.93 91.25
1,222.1 9 1,098.41
905.71 1,098.64
13.65 14.08 10.19
Pan European Global Corporate
Bond Fund Bond Fund
(USD) (EUR)
Reserve Fund
(USD)
Equities Fund Equities Fund
WSD) W D )
Total Net Assets: 30 June 2004 31 December 2003 31 December 2002 31 December 2001
Net Asset Value per A Share 30 June 2004 31 December 2003 31 December 2002 31 December 2001
Net Asset Value per D Share 30 June 2004 31 December 2003 31 December 2002 31 December 2001
Net Asset Value per Z Share 30 June 2004 31 December 2003
10,539,204 21,651,547 10,863,664 20,748,183 8,103,108 16,276,612
27,222,673 15,532,227 27,747,836 15,170,369 24,798,962 21,262,443
9,492,119 9,485,703
11,987,418 13,486,592
1 1.66 13.08 12.04 12.57 9.1 1 10.01
12.84 10.25 13.12 10.08 11.85 10.23
10.47 10.47 10.45 10.37
13.33 13.67 13.71 13.08 10.27 10.32
13.08 10.31 13.34 10.10 11.99 10.29
10.57 10.56 10.52 10.40
10.35 10.1 1
The accompanying notes form an integral part of these financial statements.
11 Standard Life Investments Global SICAV Report and Accounts
Standard Life Investments Global SICAV
US Equities Fund
US Equities Fund Objective The objective of the Sub-fund is to achieve long-term growth in the share price through capital appreciation of the underlying equity portfolio. It is intended that income will not be a prime consideration.
US Equities Fund Investment Policy The Sub-fund will achieve this objective primarily through investment in equities and equity related securities of corporations domiciled in the US, or companies that derive a significant proportion of their revenues or profits from US operations or have a significant proportion of their assets there.
Performance Review During the first quarter of 2004, Fund performance benefited from the high weighting in energy stocks, which have been beneficial for returns for some time. On the negative side, overweight positions in materials and industrials were damaging, while low levels of exposure to telecoms and utilities also detracted from returns.
Economic Classification as at 30 June 2004 (expressed as a percentage of the net assets)
Performance Review (Continued) Overall, sector positions contributed positively to performance during the second quarter, while stock positions generally held performance back. Positive contributions came from the Fund's heavy investment in energy and light positions in consumer discretionary and utilities. Meanwhile, stock selection within the energy sector and industrials sector was positive with EOC Resources and Tyco International two of the top performing stocks. Stock selection in healthcare, technology and telecoms was damaging, however, with Flextronics and Juniper Networks both contributing negatively to the Fund's return.
Industrials 15.82%
Information Technology 18.33% Cash and Others 2.1 8%
-Telecomunication Services 1.01 %
Outlook We remain well positioned to benefit from an environment of gradually rising interest rates, reflecting our view of an extended recovery cycle. We believe consumer spending may slow around the middle of 2005, although corporate earnings growth and increased capital expenditure by companies is likely to take up the slack.
We continue to favour the energy, industrials and materials sectors, which should benefit from longer term growth, especially in overseas markets, although we have been reducing our exposure in energy to lock in some of the rise in stock prices. We moved to a more defensive position when the market was at i t s most volatile, but we have subsequently reduced our investment in consumer areas and increased our holdings in technology stocks.
Ten Largest Holdings as at 30 June 2004 (expressed as a percentage of the net assets)
Exxon Mobil Corp
Microsoft Corp
General Electric
Pfizer Inc
Walt Disney
Tyco International
United Technologies Corp
Bank of America Corp
IT Industries Inc
Kohl's Corp
I Financials 19.1 1 %
Standard Life Investments Global SICAV Report and Accounts
4.76
4.21
3.71
3.50
2.97
2.94
2.75
2.40
2.33
2.28
12
Standard Life Investments Global SICAV - US Equities Fund
Schedule of Investments (Expressed in USD) as at 30 June 2004
Quantity/ Nominal Denomination
Value Currency Name o f Securities
Transferable Securities Admitted to an Official Exchange Listing
% of Net
Assets Market
Value
Aerospace & Defense 3,100 USD United Technologies Corp
Total f o r Aerospace & Defense
280,643
280,643
2.75
2.75
Aluminum
4,900 USD Alcan Iric
Total for Aluminum
201,782
201,782
1.98
1.98
Apparel Accessories & Luxury Goods 3,500 USD Polo Ralph Lauren Corp
Total f o r Apparel Accessories & luxu ry Goods
1 19,665
1 19,665
1.17
1.17
Asset Management 6T Custody Banks 2,800 USD Franklin Resources Inc
Total for Asset Management & Custody Banks
140,252
140,252
1.37
1.37
Communications Equipment 9,300 USD Cisco Systems Inc
Total f o r Communications Equipment
220,503
220,503
2.1 6
2.16
Computer Hardware 1,400 USD International Business Machines Corp
Total for Computer Hardware
123,606
123,606
1.21
1.21
Computer Storage & Peripherals 1,900 USD Lexmark International Inc ' A
Total for Computer Storage & Peripherals
181,811
181,811
1.78
1.78
Department Stores 5,500 USD Kohl's Corp
Total f o r Department Stores
232,595
232,595
2.28
2.28
Diversified Banks 2,900 USD 5,500 USD
Bank of America Corp US Bancorp
Total for Diversified Banks
245,253 150,975
396,228
2.40 1.48
3.88
Diversified Chemicals 3,400 USD D u Pont (E.I.) de Nemours
Total for Diversified Chemicals
150,110
150,110
1.47
1.47
13 Standard Life Investments Global SICAV Report and Accounts
I
I
Standard Life Investments Global SICAV - US Equities Fund
Schedule of Investments (Expressed in USD) (continued)
Quantity/ Nominal Denomlnatlon
Value Currency Name of Securities
Transferable Securities Admitted to an Official Exchange Listing
Diversified Metals & Mining 6,400 USD lnco
Total for Diversified Metals & Mining
Electronic Manufacturing Services 8,800 USD Flextronics International
Total for Electronic Manufacturing Services
Fertilizers & Agricultural Chemicals I 1,800 USD Potash Corp of Saskatchewan
Total for Fertilizers & Agricultural Chemicals
Health Care Equipment 3,400 USD Boston Scientific Corp 3,900 USD Medtronic Inc
I Total for Health Care Equipment
Household Products 4,000 USD Procter & Gamble
Total for Household Products
Industrial Conglomerates 1 1,700 USD General Electric 9,100 USD Tyco International
Total for Industrial Conglomerates I Industrial Machinery
2,900 USD Ingersoll-Rand ‘A 2,900 USD ilT Industries Inc
Market Value
222,784
222,784
140,624
140,624
170,694
170,694
139,366 190,710
3 30,076
21 9,400
21 9,400
3 78,26 1 300,391
678,652
195,344 238,119
Total for Industrial Machinery 433,463
Integrated Oil & Gas 10,900 USD Exxon Mobil Corp 485,813
Total for Integrated Oil & Gas 485,813
Integrated Telecommunication Services 5,900 USD Sprint Corp-FON Group 103,250
Yo of Net
Assets
2.1 8
2.18
1.38
1.38
1.67
1.67
1.37 1.87
3.24
2.1 5
2.15
3.71 2.94
6.65
1.91 2.33
4.24
4.76
4.76
1.01
1.01 Total for Integrated Telecommunlcatlon Services 103,250
Standard Life Investments Global SICAV Report and Accounts 14
Standard Life Investments Global SICAV - US Equities Fund
Schedule of Investments (Expressed in USD) (continued)
Quantity/ Nominal Denomination
Value Currency Name of Securities
Transferable Securities Admitted to an Official Exchange Listing
Investment Banking & Brokerage 5,500 USD 2,300 USD 4,300 USD 2,800 USD
IT Consulting & Other Services 4,300 USD
Life & Health Insurance 4,700 USD 4,800 USD
Movies & Entertainment 6,100 USD
1 1,900 USD
Networking Equipment 6,300 USD
Oil & Gas Exploration C Production 3,600 USD 2,100 USD
Other Diversified Financial Services 4,100 USD
Personal Products 4,400 USD
Pharmaceuticals 2,600 USD 2,800 USD 3,700 USD
10,400 USD
Publishing 2,200 USD
AG Edwards Inc Coldman Sachs Group Inc Merrill Lynch Inc Morgan Stanley
Total for Investment Banking & Brokerage
Accenture 'A'
Total for IT Consulting & Other Services
Lincoln National Corp Prudential Financial Inc
Total for Life & Health Insurance
Time Warner Inc Walt Disney
Total for Movies & Entertainment
Juniper Networks Inc
Total for Networking Equipment
Burlington Resources Inc EOG Resources Inc
Total for Oil & Gas Exploration & Production
Citigroup Inc
Total for Other Diversified Financial Services
Avon Products
Total for Personal Products
Abbott Laboratories Johnson 6r Johnson Merck Inc Pfizer Inc
Total for Pharmaceuticals
Knight-Ridder Inc
Total for Publishing
Market Value
187,000 21 6,200 232,243 146,636
782,079
1 16,788
116,788
21 9,631 221,856
441,487
106,140 303,331
409,471
151,830
151,830
128,088 124,593
252,68 1
189,953
189,953
200,156
200,156
107,380 156,072 1 75,195 357,136
795,783
158,972
158,972
Yo of Net
Assets
1.83 2.12 2.28 1.44
7.67
1.14
1.14
2.1 5 2.1 8
4.33
1.04 2.97
4.01
1.49
1.49
1.26 1.22
2.48
1.86
1.86
1.96
1.96
1 .os 1.53 1.72 3.50
7.80
1.56
1.56
15 Standard Life Investments Global SICAV Report and Accounts
Standard Life Investments Global SICAV - US Equities Fund
Schedule of Investments (Expressed in USD) (continued)
Quantity/ Nominal Denomination
Value Currency Name of Securities
Transferable Securities Admitted to an Official Exchange Listing
Railroads 5,250 CAD Canadian National Railway
Market Value
010 of Net
Assets
221,798 2.1 7
Total for Railroads 221,798 2.1 7
Semiconductors 6,200 USD lntei Corp 5,300 USD Texas Instruments Inc 2,700 USD Xilinx Inc
170,996 1.68 127,465 1.25 88,506 0.87
Total for Semiconductors 386,967 3.80
Soft Drinks 3,700 USD PepsiCo Inc 198,690 1.9s
Total for Soft Drinks 198,690 1.95
Specialty Stores 7,900 USD TJX Cos Inc 189,521 1.86
Total for Specialty Stores 189,521 1.86
Systems Software 15,100 USD Microsoft Corp 4,300 USD Veritas Software Corp
429,897 4.21 1 19,669 1.17
Total for Systems Software 549,566 5.38
Tobacco 2,100 USD Altria Group Inc 105,462 1.03
Total for Tobacco 105,462 1.03
Total Transferable Securities Admitted to an Official Exchange Listing 9,983,155 97.82 Total Investments 9,983,155 97.82
Cash at bank 220,144 2.16
Other Net Assets 2,344 0.02
Total Net Assets 10,205,643 100.00
The accompanying notes form an integral part of these financial statements.
Standard Life Investments Global SICAV Report and Accounts 16
Standard Life Investments Global SICAV
European Equities Fund
European Equities Fund Objective The objective of the Sub-fund is to achieve long-term growth in the share price through capital appreciation of the underlying equity portfolio. It is intended that income will not be a prime consideration.
European Equities Fund Investment Policy It will achieve this objective primarily through investment in equities and equity related securities of corporations domiciled in European countries (which might include emerging markets of Europe), or companies that derive a significant proportion of their revenues or profits from European operations or have a significant proportion of their assets there.
Performance Review The Fund benefited from the rally in European markets that occurred in the early part of the first quarter of 2004, but lost some of i t s gains towards the end of the period as weaker data and security fears drove the market lower. Sector selection was neutral for performance, but good stock selection enabled the Fund to outperform the benchmark index. The best performing stocks were Vivendi Universal, "02, Acambis and Balfour Beatty. Negative contributors included BASF, T-Online and Boots.
The pan-European markets performed well relative to other global markets in the second quarter and showed good absolute returns. Relative to the market the Fund was slightly weaker over the quarter. Most of the performance was driven by stock selection rather than asset allocation themes. Warner Chilcott (women's healthcare provider), "02 (UK mobile operator) and Nokia that were the main negatives.
Geographical Classification as at 30 June 2004 (expressed as a percentage of the net assets)
I Sweden 2s10/0
r
Euroland 45.25%
Performance Review (Continued) Our holding in Royal Bank of Scotland was also weak as fears of interest rate rises and the subsequent slowdown in the housing market hit the stock. In technology, CSR (the Bluetooth integrated chip designer) and lsoft performed well. In the consumer discretionary sector, Marks & Spencer, Continental (the tyre maker), lnchcape and Porsche were all positive.
Outlook Looking ahead, we continue to believe Euro-zone growth will be moderate, supported by the broadening of the global economic recovery and the ECB keeping interest rates on hold. We continue to favour the economically sensitive areas of the economy that have predictable earnings growth and that are well placed to deliver increased profits. Stock specific issues rather than activity within sectors will remain key to market movements over the short term, and we expect earnings momentum to become a key market driver again.
Ten Largest Holdings as at 30 June 2004 (expressed as a percentage of the net assets)
HSBC Hldgs
Vodafone Group
ClaxoSmithKline
BP
Total
Royal Bank of Scotland Group
Novartis (Regd)
BNP Paribas
Royal Dutch Petroleum
UBS (Regd)
3.78
3.68
3.05
2.91
2.73
2.44
2.00
1.91
1.79
1.74
I7 Standard Life Investments Global SICAV Report and Accounts
Standard Life Investments Global SlCAV - European Equities Fund
Schedule of Investments (Expressed in EUR) as a t 30 June 2004
Quantity/ Nominal Denomination
Value Currency Name of Securities
Transferable Securities Admitted to an Official Exchange Listing
Finland 11.250
France 770
3,000 3,272
646 1,000
725 1,400 2,800 2,152 1,490 2,000 1,390 1,600 3,850
Germany 375 366
2,600 1,850
1,460 3,500 4,350
620 148
2,750 920
2,085 6,950
1 ,I so
Greece 4,683
Ireland 23,100
EUR
EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR
EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR
EUR
EUR
Market Value
Nokia 133,200
Total for Finland 133,200
Aventis BNP Paribas Credit Agricole Iliad Lafa rg e Pernod-Ricard Peugeot Publicis Croupe SNECMA Societe T616vision Francaise 1 (TF1) Thomson (ex-TMM) Total Veolia Environnement Vivendi Universal
48,240 153,300 65,636 12,649 73,400 76,923 63,630 68,376 34,346 39,038 32,220
21 8,925 37,440 89,436
Total for France 1,013,559
Adidas-Salomon Allianz (Regd) BASF Continental Deutsche Bank (Regd) Deutsche Boerse Deutsche Telekom (Regd) lnfineon Technologies Muenchener Rueckversicherungsgesellschaft (Regd) Porsche Pref REpower Systems SAP Siemens (Regd) T-Online International
37,200 32,933
1 15,960 73,057 75,049 61,291 50,925 48,546 56,172 82,812 50,600
126,472 124,015 64,983
Total for Germany 1,000,015
Alpha Bank 96,470
Total f o r Greece 96,470
Eircom Group 34,419
Total for Ireland 34/41 9
Yo of N e t
Assets
1.66
1.66
0.60 1.91 0.82 0.1 6 0.91 0.96 0.79 0.85 0.43 0.49 0.40 2.73 0.47 1.11
12.63
0.46 0.41 1.44 0.92 0.93 0.76 0.64 0.60 0.70 1.03 0.63 1.58 1 .55 0.81
12.46
1.20
1.20
0.43
0.43
Standard Life Investments Global SlCAV Report and Accounts 18
Standard Life Investments Global SICAV - European Equities Fund
Schedule of Investments (Expressed in EUR) (continued)
Quantity/ Nominal Denomination
Value Currency Name of Securities
Transferable Securities Admitted to an Official Exchange Listing
Italy 7,090 4,930 21,148 14,000 12,350
Luxembourg 5,000
Netherlands 3,670 $1 00 4,400 3,380 12,000 400
5,381 2,250
Spain 1,553 7,050 2,700 5,171 10,824
Sweden 6,800 1,860 26,100
Switzerland 71 0
2,900 61 0
4,400 1,450 2,400 582
EUR EUR EUR EUR EUR
EUR
EUR EUR EUR EUR EUR EUR EUR EUR
EUR EUR EUR EUR EUR
SEK SEK SEK
CHF CHF CHF CHF CHF CHF CHF
ENI-Ente Nazionale ldrocarburi Riunione Adriatica di Sicurta Telecom ltalia TIM UniCredito ltaliano
Total for Italy
Arce I o r
Total for Luxembourg
ABN Amro Hldg ASML Hldg Koninklijke Philips Electronics Royal Dutch Petroleum Royal KPN Unilever 'CVA Vedior 'CVA' VNU
Total for Netherlands
Banco de Sabadell Banco Santander Central Hispano Gas Natural SDC Cestevision Telecinco Telefonica
Total for Spain
Skandinaviska Enskilda Banken 'A' SKF 'B' Telefonaktiebolaget LM Ericsson 'E'
Total for Sweden
Ciba Specialty Chemicals (Regd) Credit Suisse Group Nestle (Regd) Novartis (Regd) Roche Hldg 'Cenusschein' UBS (Regd) Zurich Financial Services
Total for Switzerland
Market Value
1 1 6,843 73,753 54,350 65,380 50,635
360,961
69,250
69,250
66,023 71,808 98,604 143,481 74,280 22,640 65,056 53,663
595,555
27,379 61,194 54,054 63,448 132,269
338,344
81,166 56,623 64,308
202,097
41,997 85,768 134,308 160,504 1 1 8,595 140,076 76,162
757,410
Yo of Net
Assets
1.46 0.92 0.68 0.81 0.63
4.50
0.86
0.86
0.82 0.89 1.23 1.79 0.93 0.28 0.81 0.67
7.42
0.34 0.76 0.67 0.79 1.65
4.21
1.01 0.71 0.80
2.52
0.52 1.07 1.67 2.00 1.48 1.74 0.95
9.43
19 Standard Life Investments Global SICAV Report and Accounts
Standard Life Investments Global SICAV - European Equities Fund
Schedule of Investments (Expressed in EUR) (continued)
Quantity/ Nominal Denomination
Value Currency Name of Securities
Transferable Securities Admitted to an Official Exchange Listing
United Kingdom 8,906 2,415
1 1,500 8,750
2,905,000 17,500 12,110 4,900 3 1,895 11,176 8,100 12,100 7,000 5,896 4,400 30,000 6,000 14,550 10,975 23,200 24,565 2,500 7,100 47,640 14,550 20,400 48,000 11,700 32,500 3,100 8,149
1 5,300 40,500 16,914 22,491 5,000
163,000 4,400 8,500 10,583
GBP GBP GBP GBP GBP GBP GBP GBP GEP GBP CBP GBP GBP GBP GBP GBP GBP GBP GBP GBP CBP CBP CBP CBP GBP GBP GBP GBP GBP GBP CBP CBP CBP CBP GBP CBP CBP GBP GBP CBP
Acam bis AstraZeneca Aviva AWG AWG Red Balfour Beatty Barclays Boots Group BP BPB British SKY Broadcasting BT Group Compass Group CSR Diageo First Choice Holidays Galen Hldgs ClaxoSmithKline HBOS HMV Croup HSBC Hldgs lnchcape &OFT Croup Legal & General Group Marks & Spencer Group MFI Furniture "02 Peninsular and Oriental Steam Navigation PHS Group Reckitt Benckiser Royal Bank of Scotland Croup Shell Transport & Trading Skyepharma Taylor Nelson Sofres Tesco Unilever Vodafone Group Whitbread Xstrata Yell Croup
Market Value
45,553 89,887 98,434 76,592 4,159 70,068 86,048 50,710 233,409 67,746 75,552 36,087 35,230 35,753 49,538 55,473 62,272 245,175 1 1 2,761 83,981 303,307 64,196 45,288 67,489 78,610 46,695 67,283 37,729 39,134 73,374 195,735 93,032 39,558 53,471 89,776 40,598 295,324 55,213 92,656 53,893
Yo of Net
Assets
0.57 1.12 1.23 0.95 0.05 0.87 1.07 0.63 2.91 0.84 0.94 0.45 0.44 0.45 0.62 0.69 0.78 3.05 1.40 1 .os 3.78 0.80 0.56 0.84 0.98 0.58 0.84 0.47 0.49 0.91 2.44 1.16 0.49 0.67 1.12 0.51 3.68 0.69 1.15 0.67
Total for United Kingdom 3,446,789 42.94
Total Transferable Securities Admitted to an Official Exchange Listing 8,048,069 100.26 8,048,069 100.26 Total Investments
Bank Overdraft (61,179) (0.76)
Other Net Assets 40,440 0.50
Total Net Assets 8,027,330 100.00
The accompanying notes form an integral part of these financial statements.
Standard Life Investments Global SICAV Report and Accounts 20
Standard Life Investments Global SICAV
Asian Equities Fund
Asian Equities Fund Objective The objective of the Sub-fund is to achieve long-term growth in the share price through capital appreciation of the underlying equity portfolio. It is intended that income will not be a prime consideration.
Asian Equities Fund Investment Policy The Sub-fund will achieve this objective primarily through investment in equities and equity related securities of corporations domiciled in Asia, or companies that derive a significant proportion of their revenues or profits from Asian operations or have a significant proportion of their assets there.
Performance Review (Continued) At the start of the second quarter, the overall positioning of the Fund was beneficial for performance, with our light investment in China the main positive. Although this position became negative during May, when the Chinese market performed strongly, our underweight position in the poorly performing Indonesian market helped to offset this. In June, performance was held back by our investment in the Taiwanese market, which was softer despite solid economic and corporate newsflow. At a stock level, our investments in China, Singapore, Hong Kong, Malaysia and Thailand were successful with holdings in Singapore Press, Li & Fung, Shin Corp and PlTEP driving performance.
Performance Review The Fund's performance slipped over the first quarter of 2004. Asset allocation was generally positive, but weak stock selection in China, Hong Kong and Singapore was a drag on performance, with holdings in China Unicorn and Li 6r Fung particularly disappointing. At a country level, maintaining the Fund's light position in China, reducing exposure to Thailand and increasing exposure to Malaysia all contributed positively.
Geographical Classification as at 30 June 2004 (expressed as a percentage of the net assets)
I Taiwan 18.25% Thailand 4.53% UK 1.79% China 2.51 % Singapore 1 1 .OO% I Indonesia 1.67%
Cash and Others 0.96%
Hong Kong 25.66940
Outlook We believe that concerns over a hard landing for the Chinese economy and the extent of US interest rate increases are overdone. We also think companies have learnt the lessons of over- investment in the past and are now in a much stronger position to face interest rate rises and fluctuations in global demand.
We are maintaining the Fund's heavy investment in Taiwan and Hong Kong. In Taiwan, we remain confident in the sustainability of earnings momentum in both the technology and financial sectors. We expect company earnings to positively surprise the market and valuations currently look attractive. We remain light in China, as we are concerned about rising cost pressures on Chinese corporations. Instead, we are exposed to Chinese growth through companies listed in other markets, such as Hong Kong.
I
I
I I I
Ten Largest Holdings as at 30 June 2004 (expressed as a percentage of the net assets)
Samsung Electronics
United Overseas Bank
China Mobile (HK)
Kookmin Bank
DBS Group Hldgs
Sun Hung Kai Properties
Hutchison Whampoa
United Microelectronics Corp
Posco
Taiwan Semiconductor
Manufacturing
8.04
2.99
2.96 2.72
2.72
2.57
2.38
2.34
2.1 1
2.09
I South Korea 26.44%
21 Standard Life Investments Global SICAV Report and Accounts
Standard Life Investments Global SICAV - Asian Equities Fund
Schedule of Investments (Expressed in USD) as a t 30 June 2004
Quantity/ Nominal Denominatlon
Value Currency Name of Securities
Transferable Securities Admitted to an Official Exchange Listing
China 480,000 184,000
Hong Kong 35,393 45,000
166,000 280,000 41,000
350,000 48,000 14,000 59,000 1 3,300
120,000 59,000
100,000 127,800 196,000 824,000 53,000 47,500 3 7,000
169,000 20,000
Indonesia 200,000 223,000
Malaysia 13,500
154,000 32,000
275,000 70,000 18,000 60,200 55,800
HKD HKD
HKD HKD HKD HKD HKD HKD HKD HKD HKD HKD USD HKD HKD HKD H KD HKD HKD HKD HKD HKD HKD
IDR IDR
MYR MYR MYR MYR MYR MYR MYR MYR
China Petroleum & Chemical Corp 'H' Ping An Insurance Group Co of China
Total for China
Bank of East Asia Cheung Kong Hldgs China Mobile (HK) China Resources Power Hldgs CLP Hldgs Comba Telecom Systems Hldgs Dah Sing Banking Group DAH Sing Financial Hang Lung Group Hang Seng Bank Hongkong Land Hldgs Hutchison Whampoa Johnson Electric Hldgs Li & Fung PCCW Skyworth Digital Hldgs Sun Hung Kai Properties Swire Pacific 'A' Television Broadcasts Varitronix International Wing Hang Bank
Total for Hong Kong
HM Sampoerna Teiekomunikasi Indonesia
Total for Indonesia
British American Tobacco (Malaysia) Commerce Asset Hldgs Genting Magnum Corp Malayan Banking Resorts World Telekom Malaysia Tenaga Nasional
Total for Malaysia
Market Value
175,390 250,059
425,449
101,191 331,741 502,273 157,954 224,456 205,295
78,772 82,567 79,426
170,518 187,200 402,801 101,926 186,791 133,184 21 6,571 434,886 307,542 158,441 166,839 1 1 8,722
4,349,096
107,619 175,834
283,453
179,408 196,958 128,842 175,855 184,210 42,395
163,174 148,311
1,219,153
% of Net
Assets
1.03 1.48
2.51
0.60 1.96 2.96 0.93 1.32 1.21 0.46 0.49 0.47 1.01 1.10 2.38 0.60 1.10 0.79 1.28 2.57 1.81 0.93 0.98 0.70
25.65
0.63 1.04
1.67
1.06 1.16 0.76 1.04 1.09 0.25 0.96 0.87
7.19
Standard Life Investments Global SICAV Report and Accounts 22
Standard Life Investments Global SICAV - Asian Equities Fund
Schedule of Investments (Expressed in USD) (continued)
Quantity/ Nominal Denomination
Value Currency Name of Securities
Transferable Securities Admitted to an Official Exchange Listing
Singapore 31,000 3,100 55,000 10,000 21 6,000 1 14,750 180,000 65,000
South Korea 8,960 14,840 14,500 7,050 5,250 2,770 3,300 4,350 2,100 19,400 1,030 1,270
Taiwan 95,000 102,000 305,250 152,775 16,000 192,135 107,000 90,466 120,000 157,300 246,861 100,000 535,065 237,000
Thailand 320,000 42,000 302,000 20,100
SCD SCD SCD SCD SCD SGD SGD SCD
KRW KRW KRW KRW KRW KRW KRW KRW KRW KRW KRW KRW
TWD TWD TWD TWD TWD TWD TWD TWD TWD TWD TWD TWD TWD TWD
TH B TH B TH B TH B
City Developments City Developments Wts 10.05.06 DBS Group Hldgs Oversea-Chinese Banking Corp Singapore Exchange Singapore Press Holdings Singapore Telecommunications United Overseas Bank
Total for Singapore
Hyundai Motor Kookmin Bank Korea Electric Power Corp KT Corp LC Electronics Inc Posco Samsung Electronics Samsung Fire & Marine Insurance Samsung SDI Shinhan Financial Group Shinsegae SK Telecom
Total for South Korea
Cathay Financial Hldg China Motor Corp Chinatrust Financial Hldg Delta Electronics Inc MediaTek Inc Nan Ya Plastic Corp Premier Image Technology Corp President Chain Store Corp Quanta Computer Inc Synnex Technology International Corp Taiwan Semiconductor Manufacturing Topco Scientific United Microelectronics Corp Yageo Corp
Total for Talwan
Krung Thai Bank (Frgn Mkt) P7T Exploration & Production (Frgn Mkt) Shin Corp (Frgn Mkt) Siam Cement (Frgn Mkt) (Regd)
Total for Thailand
Market Value
98,267 5,301
460,652 69,796 209,806 278,983 235,561 506,601
1,864,96 7
344,690 461,081 233,416 235,824 248,994 357,203
1,362,326 278,216 220,823 282,072 247,817 208,836
4,481,298
1 70,180 138,927 338,936 190,895 126,965 252,023 129,897 170,094 254,049 253,837 353,776 196,903 396,074 121,402
3 , 0 9 3 ~ ~ ~ 8
87,447 283,860 274,478 121,625
767,410
% of Net
Assets
0.58 0.03 2.72 0.41 1.24 1.65 1.39 2.99
11.01
2.03 2.72 1.38 1.39 1.47 2.1 1 8.04 1.64 1.30 1.66 1.46 1.23
26.43
1 .oo 0.82 2.00 1.13 0.75 1.49 0.77 1 .oo 1 .so 1 .so 2.09 1.15 2.34 0.72
18.26
0.52 1.67 1.62 0.72
4.53
23 Standard Life Investments Global SICAV Report and Accounts
1 Standard Life Investments Global SICAV - Asian Equities Fund
Schedule of Investments (Expressed in USD) (continued)
Quantity / Nominal Denomination
Value Currency Name of Securities
Transferable Securities Admitted to an Official Exchange Listing
United Kingdom 10,000 HKD HSBC Hldgs (HK Regd) 9,500 HKD Standard Chartered
Market Value
% of Net
Assets
150,646 0.89 152,857 0.90
Total for United Kingdom 303,503 1.79
Total Transferable Securities Admitted to an Official Exchange Listlng 16,788,287 99.04
Total Investments 16,788,287 99.04
Cash at bank 54,488 0.32
Other Net Assets 108,959 0.64
Total Net Assets 16,95 1,734 100.00 ~ ~~~ ~~ ~
The accompanying notes form an integral part of these financial statements.
Standard Life Investments Global SICAV Report and Accounts 24
Standard Life Investments Global SICAV
Hong Kong Equities Fund
Hong Kong Equities Fund Objective The objective of the Sub-fund is to achieve long-term growth in the share price through capital appreciation of the underlying equity portfolio. It is intended that income will not be a prime consideration.
Hong Kong Equities Fund Investment Policy The Sub-fund will achieve this objective primarily through investment in equities and equity related securities of corporations domiciled in Hong Kong, or companies that derive a significant proportion of their revenues or profits from Hong Kong operations or have a significant proportion of their assets there.
Economic Classification as at 30 June 2004 (expressed as a percentage of the net assets)
Performance Review The Fund performed broadly in line with the benchmark over the first quarter of 2004. Performance suffered throughout the period from the market shift towards more defensive stocks. This resulted in a particularly strong performance from the utility sector, where the Fund remained underweight in preference to investment in recovery stocks. At a stock level, the sharp fall in share prices of China Unicom and Li & Fung were major negative factors for the Fund's performance. Positive contributions came from Sun Hung Kai Properties, Giordano and Comba Telecom, which has gained market share in the telecom equipment sector.
During the second quarter, the Fund's performance was held back slightly by our underweight position in strongly performing Chinese stocks.
I 7 I IF
Information Technology 4.1 7% Industrials 8.83% Utilities 4.1 1 Yo Cash and Others 2.1 2% Consumer Staples 2.76%
Telecommunication Services 8.53% Consumer Discretionary 7.42%
Performance Review (Continued) Our exposure to retail stocks, such as Ciordano and Sa Sa, was the main positive contributor to petformance as the sector outperformed due to the broadening economic recovery. Offsetting these performances somewhat was our investment in property stocks, which underperformed due to concerns over rising interest rates and slower momentum in primary market sales.
Outlook
I
We are continuing to invest in companies listed in Hong Kong that are exposed to growing parts of the Chinese economy. From a stock selection perspective, we favour those areas where we have conviction that a genuine recovery in earnings will take place, and where this is not yet discounted in valuations. We are continuing to favour banks but have switched the emphasis of our investment exposure from smaller to larger banks, which are better positioned in an environment of rising interest rates.
Ten Largest Holdings as at 30 June 2004 (expressed as a percentage of the net assets)
HSBC Hldgs (HK Regd) 8.30
Hang Seng Bank 5.86
China Mobile (HK) 5.02
Hutchison Whampoa 4.88
Wing Hang Bank 4.29
Sun Hung Kai Properties 3.98
Li & Fung 3.81
Swire Pacific 'A' 3.80
Bank of East Asia 3.75
Standard Chartered 3.45 Financials 62.06Yo
25 Standard Life Investments Global SICAV Report and Accounts
1 Standard Life Investments Global SICAV - Hong Kong Equities Fund
Schedule of Investments (Expressed in HKD) as at 30 June 2004
Quantity/ Nominal Denomination
Value Currency Name of Securities
Transferable Securities Admitted to an Official Exchange Listing
Agricultural Products 890,000 HKD Chaoda Modern Agriculture
Market Value
1,935,750
Total for Agricultural Products 1,93S,750
Alternative Carriers 430,000 HKD PCCW 2,279,000
Total for Alternative Carriers 2,279,000
I Apparel Retail
466,000 HKD Ciordano International 2,295,050
Total for Apparel Retail 2,295,050
Asset Management Sr Custody Banks 268,000 HKD JCG Hldgs 1,715,200
Total for Asset Management & Custody Banks 1,715,200
Broadcasting & Cable TV 83,000 HKD Television Broadcasts 2,772,200
Total for Broadcasting & Cable lV 2,772,200
Communications Equipment 21 4,000 HKD Comba Telecom Systems Hldgs 979,050
Total for Communications Equipment 979,050
Construction & Engineering 103,000 HKD Cheung Kong Infrastructure Hldgs 1,936,400
Total for Construction & Engineering 1,936,400
Diversified Banks 154,111 179,400 20,200 5 3,700 64,762 25,000 85,000 31,000
HKD HKD HKD HKD HKD CBP HKD HKD
Bank of East Asia Dah Sing Banking Group DAH Sing Financial Hang Seng Bank HSBC Hldgs (HK Regd) Standard Chartered Wing Hang Bank Wing Lung Bank
3,436,675 2,296,320 929,200
5,370,000 7,609,535 3,159,885 3,935,500 1,658,500
%o of Net
Assets
2.1 1
2.1 1
2.48
2.48
2.50
2.50
1.87
1.87
3.02
3.02
1.07
1.07
2.1 1
2.1 1
3.75 2.50 1.01 5.86 8.30 3.45 4.29 1.81
30.97 Total for Diversified Banks 28,395,615
Standard Life Investments Global SICAV Report and Accounts 26
Standard Life Investments Global SICAV - Hong Kong Equities Fund
Schedule of Investments (Expressed in HKD) (continued)
Quantity1 Nominal Denomination
Value Currency Name of securities
Transferable Securities Admitted to an Official Exchange Listing
Electric Utilities 21 0,000 H KD
Electrical Components & Equipment 336,000 H KD
Electronic Equipment Manufacturers 370,000 H KD
Multi-line Insurance 430,000 HKD 84,000 HKD
Multi-Sector Holdings 84,000 HKD 69,000 HKD 39,000 H KD
Oil & Gas Exploration C Production 862,000 H KD
Packaged Foods dT Meats 1 1 7,000 HKD
China Resources Power Hldgs
Total for Electrlc Utilities
Johnson Electric Hldgs
Total for Electrical Components & Equipment
Varitronix International
Total for Electronic Equipment Manufacturers
China Insurance International Hldgs Ping An Insurance Group Company of China
Total for Multi-line Insurance
Hutchison Whampoa Swire Pacific 'A' Wharf Hldgs
Total for Multi-Sector Holdings
CNOOC
Total for Oil & Cas Exploration & Production
China Mengniu Diary
Total for Packaged Foods & Meats
Real Estate Management & Development 48,000 H KD Cheung Kong Hldgs 164,000 H KD Hang Lung Group 205,500 H KD Hang Lung Properties
209,000 USD Hongkong Land Hldgs 85,000 H KD Henderson Land Development
57,000 H KD Sun Hung Kai Properties
Total for Real Estate Management & Development
Market Value
924,000
924,000
2,671,200
2,671,200
2,849,000
2,849,000
1,483,500 890,400
2,3 73,900
4,473,000 3,484,500 873,600
8/83 1,100
2,844,600
2,844,600
596,700
596,700
2,760,000 1,722,000 2,065,2 75 2,856,000 2,543,030 3,648,000
15,594,305
% of Net
Assets
1.01
1.01
2.91
2.91
3.1 1 3.1 1
1.62 0.97
2.59
4.88 3.80 0.95
9.63
3.1 0 3.10
0.65
0.65
3.01 1.88 2.25 3.1 1 2.77 3.98
17.00
27 Standard Life Investments Global SICAV Report and Accounts
I Standard Life Investments Global SICAV - Hong Kong Equities Fund
Schedule of Investments (Expressed in HKD) (continued)
Quantity / Nominal Denomination
Value Currency Name of Securities
Transferable Securities Admitted to an Official Exchange Listing
Specialty Stores 570,000 HKD
Trading Companies & Distributors 306,200 HKD
Wireless Telecommunication Services 195,000 HKD 153,000 HKD
Sa Sa International Hldgs
Total for Specialty Stores
Market Value
Yo of Net
Assets
1,738,500 1.90
1,738,500 1.90
Li & Fung 3,490,680 3.81
Total for Trading Companles & Distributors 3,490,480 3.81
China Mobile (HK) 4,602,000 5.02 China Unicom 940,950 1.02
Total for Wireless Telecommunication Services 5,542,950 6.04 . .
Total Transferable Securities Admitted to an Official Exchange Listing 89,765,200 97.88
Total Investments 89,765,200 97.88
Cash at bank 3,018,768 3.29
Other Net Liabilities (1,070,81 6) (1.17)
Total Net Assets 91,713,152 100.00
The accompanying notes form an integral part of these financial statements.
Standard Life Investments Global SICAV Report and Accounts 28
Standard Life Investments Global SICAV
Japanese Equities Fund
Japanese Equities Fund Objective The objective of the Sub-fund is to achieve long-term growth in the share price through capital appreciation of the underlying equity portfolio. It is intended that income will not be a prime consideration.
Japanese Equities Fund Investment Policy The Sub-fund will achieve this objective primarily through investment in equities and equity related securities of corporations domiciled in Japan, or companies that derive a significant proportion of their revenues or profits from Japanese operations or have a significant proportion of their assets there.
Performance Review The Fund performed broadly in line with the Topix Index during the first quarter of 2004. Positive contributions came from the real estate, housing and constructions sectors. These sectors were helped by improvements in the domestic economy feeding through into higher occupancy rates and increases in the number of construction orders.
Economic Classification as at 30 June 2004 (expressed as a percentage of the net assets)
Performance Review (Continued) Outlook Negative influences were our overweight positions in the automobile sector and precision instrument comoanies.
The prospects for Japan's domestic economy look robust, subject to any external shocks. Corporate profitability has been stronq for the past three
Both sectors were adversely affected by the strength of the yen against the dollar. Looking at individual stocks, Fuji TV and UMC Japan were negative contributors to performance.
The Fund fell modestly against the benchmark during the second quarter. The main negatives were our heavy positions in semi-conductor makers and LCD related stocks. These companies fell on concerns that the high level of investment in these areas would result in large price reductions when new capacity i s released in the second half of the year. However, our heavy investment in the automobile sector and the precision instrument sector was positive for performance. Both sectors benefited from the weakness in the yen against the US dollar. Japanese auto companies were also boosted by new model launches and strong demand for fuel-efficient cars.
years and this investment. In turn, income levels are expected to improve and this will lead to increased consumer spending. The banking sector's improving financial health should also encourage more lending opportunities through time. In addition, the market has successfully absorbed an environment of rising interest rates during the second quarter and this should encourage the Bank of Japan to keep its monetary policy accommodative. As well as our bias to banking stocks, we will maintain our slight overweight holding in telecommunications operators. We feel that much of the pricing concerns, due to new technologies and a change in pricing plans have been discounted in share prices. We plan to increase our investment in this area once the pricing environment improves. A stabilisation in market share of subscriber additions would be a trigger for this.
now feeding into
Ten Largest Holdings as at 30 June 2004 (expressed as a percentage of the net assets)
Information Technology 16.82yo
Consumer Discretionary 25.81 %
Toyota Motor Corp 4.88
Mitsubishi Tokyo
Financial Group Inc 4.24
Honda Motor 2.86
Sumitomo Mitsui Materials 10.92% Telecommunication Services 4.05%
Financial Group Inc 2.67 Cash and Others 1.92%
Obic 2.53 Consumer Staples 3.85% Healthcare 5.21 Yo Canon Inc 2.32
Utilities 0.66% JFE Hldgs Inc 2.29
Financials 16.89% Seven - Eleven Japan 2.21
COMSYS Holdings Corp 2.07
Industrials 13.87% NEC Electronics Corp 1.98
29 Standard Life Investments Global SICAV Report and Accounts
Standard Life Investments Global SICAV - Japanese Equities Fund
Schedule of Investments (Expressed in JPY) as a t 30 June 2004
Yo of Net
Assets
Quantity / Nominal Denominatlon
Value Currency Name of Securities
Transferable Securities Admitted to an Official Exchange Listing
Market Value
Agricultural Products 8,000 I PY Ajinomoto Inc
Total for Agrlcultural Products
10,512,000
1 0,5 1 2,000
1.63
1.63
Aluminum 36,000 I PY Nippon Light Metal
Total for Aluminum
9,324,000
9,3 24,000
1.45
1.45
Apparel Accessories & Luxury Goods 6,000 I PY Citizen Watch 7,416,000
Total for Apparel Accessories & Luxury Goods 7,416,000
1.15
1.15
Application Software 4,000 I PY 1,000 JPY
Cresco Nomura Research Institute
Total for Application Software
4,680,000 11,630,000
16,310,000
0.73 1.81
2.54
Auto Parts & Equipment 3,400 I py 4,300 J PY
Aisin Seiki Denso Corp
7,735,000 10,922,000
1.20 1.70
2.90 Total for Auto Parts & Equipment 1 8,657,000
Automobile Manufacturers 3,500 J PY
26,000 I PY 5,100 I PY 7,100 I py
Honda Motor 18,410,000 Mazda Motor Corp 9,984,000 Suzuki Motor Corp 9,802,200 Toyota Motor Corp 31,382,000
Total for Automobile Manufacturers 69,578,200
2.86 1.55 1.52 4.88
10.81
Broadcasting & Cable TV 24 I py TV Asahi Corp 4,944,000
Total for Broadcasting & Cable TV 4,944,000
0.77
0.77
Building Products 2,100 I py 5,000 J PY
Komeri Tostem lnax Hldg Corp
Total for Building Products
6,132,000 11,775,000
17,907,000
0.95 1.83
2.78
Standard Life Investments Global SICAV Report and Accounts 30
Standard Life Investments Global SICAV - Japanese Equities Fund
Schedule of Investments (Expressed in JPY) (continued)
Quantity/ Nominal Denomination
Value Currency Name of Securities
Transferable Securities Admitted to an Official Exchange Listing
Commodity Chemicals 6,000 I PY Kuraray
30,000 I PY Tosoh Corp
Total for Commodity Chemicals
Computer Storage & Peripherals 900 J PY Melco Holdings Inc
Total for Computer Storage & Peripherals
Construction & Engineering 15,000 I PY COMSYS Holdings Corp
Total for Construction & Engineering
Construction & Farm Machinery & Heavy Trucks 4,000
Consumer Electronics 3,100 14,000 5,000
Consumer Finance 2,500
Department Stores 5,300
Diversified Banks 1 1,000
27 13 23
Hitachi Construction Machinery
Total for Construction & Farm Machinery & Heavy Trucks
Pioneer Corp Sanyo Electric Sharp Corp
Total for Consumer Electronics
Sanyo Electric Credit
Total for Consumer Finance
Marui
Total for Department Stores
Bank of Fukuoka Mitsubishi Tokyo Financial Group Inc Mizuho Financial Group Inc Sumitomo Mitsui Financial Group Inc
Total for Diversified Banks
Market Value
5,358,000 1 1,820,000
1 7,178,000
2,493,000
2,493,000
13,290,000
13,290,000
5,168,000
5,168,000
8,742,000 6,286,000 8,715,000
23,743,000
6,062,500
6,062,500
7,791,000 7,791,000
7,117,000 27,270,000 6,435,000 17,204,000
58,026,000
Yo of Net
Assets
0.83 1.84
2.67
0.39
0.39
2.07
2.07
0.80
0.80
1.36 0.98 1.35
3.69
0.94
0.94
1.21
1.21
1.11 4.24 1 .oo 2.67
9.02
31 Standard Life Investments Global SICAV Report and Accounts
Standard Life Investments Global SICAV - Japanese Equities Fund
Schedule of Investments (Expressed in JPY) (continued)
O!O of Net
Assets
Quanti t y l Nominal Denomination
Value Currency Name of Securities Market
Value
Transferable Securities Admitted to an Official Exchange Listing
Diversified Chemicals 1 ,I 00 J PY
33,000 J PY Nitto Denko Corp Ube Industries
Total for Diversified Chemicals
6,138,000 5,610,000
11,748,000
0.9s 0.87
1.82
Electrical Components & Equipment 17,000 J PY 18,000 J PY
1.37 1.23
Hitachi Cable Toshiba Corp
Total for Electrical Components & Equipment
8,823,000 7,902,000
16,725,000 2.60
Electronlc Equipment Manufacturers Hitachi Keyence Corp Murata Manufacturing
Total for Electronic Equipment Manufacturers
6,008,000 4,978,000 11,818,000
0.93 0.77 1.84
8,000 200
1,900
22,804,000 3.54
Food Retail 4,000 2.21
2.21
Seven - Eleven Japan
Total for Food Retail
14,240,000
1 4,240,000
Gas Utilities 1 1,000 Tokyo Gas
Total for Gas Utilities
4,25 7,000
4,257,000
0.66
0.66
Health Care Supplies 900 10,278,000
10,278,000
1.60
1.60
Hoya Corp
Total for Health Care Supplies
Homebuilding 4,000 0.79
0.79
Daiwa House Industry
Total for Homebuilding
5,064,000
5,064,000
Household Appliances 2,200 4,543,000
4,543,000
0.71
0.71
TH K
Total for Household Appliances
Standard Life Investments Global SlCAV Report and Accounts 32
Standard Life Investments Global SICAV - Japanese Equities Fund
Schedule of Investments (Expressed in JPY) (continued)
Quantity/ Nominal Denomination
Value Currency Name of Securities
Transferable Securities Admitted to an Official Exchange Listing
Industr ial Machinery 700 I PY 700 I PY
Integrated Telecommunication Services 9 I PY 17 I PY
Investment Banking & Brokerage 9,000 I PY 3,000 I PY
IT Consulting & Other Services 700 I py
Leisure Products 4,000 I PY
Mar ine 22,000 I PY
Office Electronics 2,600 I PY 4,000 IPY
Other Diversified Financial Services 10,000 J PY
Fanuc SMC Corp
Total for Industrial Machinery
KDDl Corp Nippon Telegraph & Telephone Corp
Total for Integrated Telecommunication Services
Daiwa Securities Group Inc Mitsubishi Securities
Total for Investment Banking & Brokerage
Obic
Total f o r IT Consulting & Other Services
Bandai
Total for Leisure Products
Nippon Yusen Kabushiki Kaisha
Total for Marine
Canon Inc Ricoh
Total f o r Office Electronics
Shinko Securities
Total for Other Diversified Financial Services
Market Value
4,557,000 8,260,000
12,817,000
5,616,000 9,911,000
15,527,000
7,05 6,000 4,299,000
11,355,000
16,275,000
16,275,000
1 1,880,000
11,880,000
1 1,066,000 1 1,066,000
14,950,000 9,280,000
24,230,000
4,030,000
4,030,000
% of N e t
Assets
0.71 1.28
1.99
0.87 1.54
2.41
1.10 0.64
1.76
2.53
2.53
1.85
1.85
1.72
1.72
2.32 1.44
3.76
0.63
0.63
33 Standard Life Investments Global SlCAV Report and Accounts
I
Standard Life Investments Global SICAV - Japanese Equities Fund
Schedule of Investments (Expressed in JPY) (continued)
Quantity/ Nominal Denomination
Value Currency Name of Securities
vi of Net
Assets Market
Value
Transferable Securities Admitted to an Official Exchange Listing
Pharmaceuticals 6,500 I PY Chugai Pharmaceutical 4,700 I PY Fujisawa Pharmaceutical
Total for Pharmaceuticals
Property & Casualty Insurance 4 I PY Millea Hldgs Inc
1 1,128,000 1 2,149,500
23,277,500
1.73 1.89
3.62
6,480,000 6,480,000
1.01
1.01 Total for Property & Casualty Insurance
Publishing 5,000 I PY Toppan Printing
Total for Publishing
I Real Estate Management & Development 700 I PY Coldcrest
5,000 I py Mitsui Fudosan I
6,175,000
6,175,000
0.96
0.96
5,257,000 6,540,000
0.81 1.02
Total for Real Estate Management & Development 11,797,000 1.83
Regional Banks 7,000 I PY Chiba Bank 4,676,000
4,676,000
0.73
0.73 Total for Regional Banks
Restaurants 2,000 I PY Plenus 6,240,000
6,240,000
0.97
0.97 Total for Restaurants
Semiconductor Equipment 700 I PY Tokyo Electron 4,284,000
4,284,000
0.67
0.67 Total for Semiconductor Equipment
Semiconductors 1,900 I PY NEC Electronics Corp
700 I PY Rohm
Total for Semiconductors
12,730,000 9,142,000
21,872,000
1.98 1.42
3.40
Standard Life Investments Global SICAV Report and Accounts 34
Standard Life Investments Global SICAV - Japanese Equities Fund
Schedule of Investments (Expressed in JPY) (continued)
Quantity f Nominal Denomination
Value Currency Name of Securities
Transferable Securities Admitted to an Official Exchange Listing
Specialized Finance 1,900 I py Credit Saison
Total for Specialized Finance
Specialty Chemicals 2,200 I py Shin-Etsu Chemical
1 1,000 I py Zeon Corp
Total for Specialty Chemicals
Steel 5,500 I py JFE Hldgs Inc
Total for Steel
Trading Companies & Distributors 7,000 I PY Sumitomo Corp
Total for Trading Companies & Distributors
Trucking 6,000 I py Seino Transportation
Total for Trucking
54 I py NTT DoCoMo Inc Wireless Telecommunication Services
Total for Wireless Telecommunication Services
Market Value
6,2 32,000
6,23 2,000
8,580,000 8,701,000
17,281,000
14,712,500
14,712,500
5,544,000
5,544,000
6,762,000
6,762,000
10,530,000
10,530,000
Yo of Net
Assets
0.97
0.97
1.33 1.3s
2.68
2.29
2.29
0.86
0.86
1 .os 1 .os
1.64
1.64
Total Transferable Securities Admitted to an Official Exchange Listing 631,101,700 98.08
Total Investments 631,101,700 98.08
Cash at bank 7,423,088 1.15
Other Net Assets 4,98 1,686 0.77
Total Net Assets 643,506,474 100.00
The accompanying notes form an integral part of these financial statements.
35 Standard Life Investments Global SICAV Report and Accounts
Standard Life Investments Global SICAV
Taiwan Equities Fund
Taiwan Equities Fund Objective The objective of the Sub-fund is to achieve long-term growth in the share price through capital appreciation of the underlying equity portfolio. It is intended that income will not be a prime consideration.
Taiwan Equities Fund Investment Policy The Sub-fund will achieve this objective primarily through investment in equities and equity related securities of corporations domiciled in Taiwan, or companies that derive a significant proportion of their revenues or profits from Taiwanese operations or have a significant proportion of their assets there.
Performance Review The Fund underperformed over the first quarter of 2004. At the sector level, our preference for technology stocks over steel companies contributed negatively to performance, as steel outperformed and technology struggled due to concerns over demand.
Performance Review (Continued) Positive contributions at a stock level came from heavy position in technology companies, Synnex Technology, and Yageo. In the financial sector, Fubon had a positive impact on the Fund's returns. Negative contributions came from our heavy position in the power supplies and components maker Delta.
The Fund outperformed its peer group over the second quarter. Fund performance during April benefited from our heavy investment in the technology sector and light position in the poorly performing plastics sector. During May, performance benefited from a positive contribution from Delta Electronics, which started to perform well due to signs that a restructuring of its product lines is feeding through to improved margins. Weak performance from the semiconductor foundry UMC, which we are heavily invested in, hindered the Fund's performance during most of the period. Towards the end of the quarter, stock selection was positive while the Fund's heavy investment in technology and light investment in steel continued to be negative.
Economic Classification as at 30 June 2004 (expressed as a percentage of the net assets)
7 Telecommunication Services 5.93% Consumer Discretionary 13.32% Cash and Others 4.44Oh
r Materials 4.79%
I Information Technology 46.6896
Performance Review (Continued) Domestically driven stocks performed the most strongly in June. Chinatrust, which is the largest financial holding in the Fund, outperformed the market by 5.7% on the back of continued strength in consumer loan growth and overall retail spending.
Outlook Despite recent share price declines, we continue to feel confident in the sustainability of near term earnings momentum which, combined with potential inflow from the MSCl re- weighting, could lead to strong performance in the third quarter. We maintain a preference for electronics and financial stocks, which should continue to post good earnings growth but trade at highly supportive valuations. For example, we maintain a heavy holding in UMC, which is trading close to a trough price-to-book valuation and for which order volumes and pricing should improve going through to the third quarter of 2004. We also have heavy investment in Chinatrust, which we consider to be the best managed retail bank in Taiwan. Meanwhile, we will maintain our light exposure to chemical and steel stocks, which appear expensive.
Ten Largest Holdings as at 30 June 2004 (expressed as a percentage of the net assets)
United Microelectronics Corp 8.95 Taiwan Semiconductor
Manufacturing 8.77
Synnex Technology
International Corp 5.62 Chinatrust Financial Hldg 5.57
Nan Ya Plastic Corp 4.79
Topco Scientific 4.74
Quanta Computer Inc 4.49
Delta Electronics Inc 4.27
Cathay Financial Hldg 4.23
President Chain Store Corp 4.07
Standard Life Investments Global SICAV Report and Accounts 36
Standard Life Investments Global SICAV - Taiwan Equities Fund
Schedule of Investments (Expressed in USD) as a t 30 June 2004
Quantity/ Nominal Denomination
Value Currency Name of Securities
Yo of Net
Assets Market
Value
Transferable Securities Admitted to an Official Exchange Listing
Automobile Manufacturers 11 5,000 TWD China Motor Corp
Total for Automobile Manufacturers
156,634
156,634
1.45
1.45
Commodity Chemicals 393,726 TWD Nan Ya Plastic Corp
Total for Commodity Chemicals
51 6,450
5 16,450
4.79
4.79
Computer Hardware 228,800 TWD 375,600 TWD
Quanta Computer Inc Synnex Technology International Corp
Total for Computer Hardware
484,387 606,111
1,090,498
4.49 5.61
10.10
Diversified Banks 541,680 TWD 464,880 TWD
Chinatrust Financial Hldg Mega Financial Hldg
Total for Diversified Banks
601,457 305,579
907,036
5.57 2.83
8.40
Electrical Components & Equipment 368,655 TWO Delta Electronics Inc
Total for Electrical Components & Equipment
460,641
460,641
4.27
4.27
Electronic Equipment Manufacturers 95,000 TWD 54,200 TWD
806,000 TWD
Asustek Computer Inc HON HA1 Precision Industry Yageo Corp
Total for Electronic Equipment Manufacturers
21 5,187 200,604 41 2,868
828,659
1.99 1.86 3.83
7.68
Food Retail 233,488 TWD President Chain Store Corp
Total for Food Retail
439,004
439,004
4.07
4.07
Household Appliances 184,000 TWD Tsann Kuen Enterprise
Total for Household Appliances
228,822
228,822
2.1 2
2.1 2
Integrated Telecommunication Services 164,000 TWD Chunghwa Telecom 281,645 2.61
2.61 Total for Integrated Telecommunication Services 281,645
37 Standard Life Investments Global SlCAV Report and Accounts
Standard Life Investments Global SICAV - Taiwan Equities Fund
Schedule of Investments (Expressed in USD) (continued)
010 of Net
Assets
Quantity/ Nominal Denomination
Value Currency Name of Securities Market
Value
Transferable Securities Admitted to an Official Exchange Listing
leisure Products 305,000 TWD Giant Manufacturing
Total for leisure Products
370,266
3 70,266
3.43
3.43
l i fe & Health Insurance 255,000 TWD 456,800
456,800
4.23
4.23
Cathay Financial Hldg
Total for l i fe & Health Insurance
Other Diversified Financial Services 481,000 TWD Fubon Financial Hldg
Total for Other Diversified Financial Services
41 7,295
41 7,295
3.87
3.87
Photographic Products 223,000 TWD Premier Image Technology Corp
Total for Photographic Products
270,719
270,719
2.51
2.51
Semiconductors 41,000 TWD
121,000 TWD 145,400 TWD 660,288 TWD
1,304,907 TWD
MediaTek Inc MIN AIK Technology Realtek Semiconductor Corp Taiwan Semiconductor Manufacturing United Microelectronics Corp
Total for Semiconductors
325,349 188,094 182,111 946,257 965,939
2,607,750
3.01 1.74 1.69 8.77 8.95
24.16
Technology Distributors 259,960 TWD 4.74
4.74
Topco Scientific
Total for Technology Distributors
51 1,869
511,869
Textiles 264,600 TWD Formosa Chemicals & Fibre
Total for Textiles
41 1,320
41 1,320
3.81
3.81
Wireless Telecommunication Services 378,560 TWD Taiwan Cellular Corp
Total for Wireless Telecommunication Services
358,687
358,687
3.32
3.32
Total Transferable Securities Admitted to an Official Exchange listing 10,314,095 95.56
Total Investments 10,314,095 95.56
Cash at bank 433,929 4.03
Other Net Assets 44,762 0.41
Total Net Assets 1 0,792,786 100.00
The accompanying notes form an integral part of these financial statements.
Standard Life Investments Global SICAV Report and Accounts 38
Standard Life Investments Global SICAV
Korean Equities Fund
Korean Equities Fund Objective The objective of the Sub-fund is to achieve long-term growth in the share price through capital appreciation of the underlying equity portfolio. It is intended that income will not be a prime consideration.
Korean Equities Fund Investment Policy The Sub-fund will achieve this objective primarily through investment in equities and equity related securities of corporations domiciled in Korea, or companies that derive a significant proportion of their revenues or profits from Korean operations or have significant proportion of their assets there.
Economic Classification as at 30 June 2004 (expressed as a percentage of the net assets)
Performance Review The Fund underperformed the local index in the first quarter 2004, mainly due to its structural underweight position in Samsung Electronics, which makes up about 35% of the benchmark. Our overweight position in other quality technology companies partly compensated for this. The Fund's heavy position in financials and underweight holdings in utilities contributed positively to performance.
The Fund performed well during the second quarter primarily due to our heavy investment in consumer related companies such as the discount store Shinsegae and the cosmetics company, Amore Pacific. The Fund's investment in information technology was negative for performance as the sector was badly hit by the sell off from foreign investors.
Outlook Going forward, we will closely monitor government policies that have the ability to boost consumer sentiment. The president and ruling party have prioritised reforms by tackling corruption and inequality. They have, however, been faced with strong resistance from some establishments, particularly the conservative media, which has influence over the middle to upper classes. The concern of these people is the government's future direction on wealth redistribution. We believe that this is one reason for consumer sentiment remaining weak.
However, we expect Korean export growth to remain robust in the short term and feed through to domestic demand in the second half of 2004, as higher capacity utilisation creates more jobs and increases household income. Given this outlook, we continue to favour banks and consumer discretionary stocks, where we also believe valuations are attractive. Within exporters, we will focus on quality companies with good earnings momentum and strong balance sheets.
Ten Largest Holdings as at 30 June 2004 (expressed as a percentage of the net assets)
Consumer Discretionary 23.1 1 % Samsung Electronics 8.54
7 Materials 10.88% Shinsegae 6.62
Kookmin Bank 5.75 Information Technology 20.62%
Cash and Others 1.81 % Hyundai Motor 4.89
Industrials 8.67%
Telecommunication Services 8.93% SK Telecom
Samsung SDI 4.99
KT Corp 4.79
Shinhan Financial Group 4.1 4
4.1 3
Posco 4.06
LC Electronics Inc 4.05 Financials 18.44%
Consumer Staples 7.54%
39 Standard Life Investments Global SICAV Report and Accounts
I
Standard Life Investments Global SICAV - Korean Equities Fund
Schedule of Investments (Expressed in USD) as at 30 June 2004
Quantity/ Nominal Denomination
Value Currency Name of Securities
Transferable Securities Admitted to an Official Exchange Listing I
?h of Net
Assets Market
Value
Advertising 2,000 KRW Cheil Communications Inc
Total for Advertising
271,755
271,755
2.58
2.58
Auto Parts & Equipment 9,500 KRW Hyundai Mobis
Total for Auto Parts & Equipment
421,784
421,784
4.00
4.00
Automobile Manufacturers
I 13,400 KRW 12,000 KRW
Hyundai Motor Kia Motors Corp
Total for Automobile Manufacturers
51 5,496 102,506
618,002
4.89 0.97
5.86
Brewers I 2,500 KRW Hite Brewery
Total for Brewers
177,420
177,420
1.68
1.68
Commodity Chemicals 15,000 KRW
I 2,000 KRW 5,000 KRW
Cheil industries Inc Kumgang Korea Chemical LC Chem
Total for Commodity Chemicals
173,958 205,115 169,198
548,27 1
1.65 1.95 1.61
5.21
1 Communications Equipment 8,300 KRW 2.21
2.21
You Ea1 Electronics
Total for Communications Equipment
233,100
233,100
Construction 6r Englneering 14,000 KRW LC Engineering h Construction Corp
Total for Constructlon & Engineering
230,819
230,819
2.1 9
2.19
Construction & Farm Machinery & Heavy Trucks 12,300 KRW Daewoo Shipbuilding & Marine Engineering
Total for Construction & Farm Machinery & Heavy Trucks
Consumer Electronics 9,000 KRW LC Electronics Inc
Total for Consumer Electronics
Department Stores 2,900 KRW Shinsegae
Total for Department Stores
148,501 1.41
148,501 1.41
426,84 7
426,847
4.05
4.05
697,737
697,737
6.62
6.62
Standard Life Investments Global SICAV Report and Accounts 40
Standard Life Investments Global SICAV - Korean Equities Fund
Schedule of Investments (Expressed in USD) (continued)
Quantity/ Nominal Denomination
Value Currency Name of Securities
Transferable Securities Admitted to an Official Exchange Listing
Diversified Banks 10,000 KRW 19,500 KRW 38,000 KRW
Diversified Commercial Services 12,500 KRW
Diversified Metals & Mining 20,000 KRW
Electrical Components & Equipment 5,956 KRW
Electronic Equipment Manufacturers 1 0,300 KRW 5,000 KRW
Integrated Telecommunication Services 15,100 KRW
Investment Banking & Brokerage 7,000 KRW
Office Electronics 4,500 KRW
Other Diversified Financial Services 30,000 KRW
Packaged Foods & Meats 4,600 KRW
Hana Bank Kookmin Bank Pusan Bank
Total for Diversified Banks
SI Corp
Total for Diversified Commercial Services
Poongsan Corp
Total for Diversified Metals & Mining
Kumho Electric
Total for Electrical Components & Equipment
Samsung Electro-Mechanics Samsung SDI
Total for Electronlc Equipment Manufacturers
KT Corp
Total for Integrated Telecommunication Services
Samsung Securities
Total for Investment Banking & Brokerage
Sindo Ricoh
Total for Office Electronics
Shinhan Financial Group
Total for Other Diversified Financial Services
CJ Corp
Total for Packaged Foods & Meats
Market Value
211,173 605,868 21 0,481
1,027,522
292,094
292,094
169,977
169,977
242,786
242,786
291,942 525,769
81 7,711
505,098
505,098
1 14,804
1 14,804
221,991
221,991
436,194
436,194
248,821
248,821
Yo of N e t
Assets
2.00 5.75 2.00
9.75
2.77
2.77
1.61
1.61
2.30
2.30
2.77 4.99
7.76
4.80
4.80
1.09
1.09
2.1 1
2.1 1
4.1 4
4.14
2.36
2.36
41 Standard Life Investments Global SICAV Report and Accounts
Standard Life Investments Global SICAV - Korean Equities Fund
Schedule of Investments (Expressed in USD) (continued)
Quantity/ Nominal Denomination
Value Currency Name of securities
Transferable Securities Admitted to an Official Exchange Listing
Personal Products 2,000 KRW
Property & Casualty insurance 5,700 KRW
Semiconductors 2,180 KRW
Steel 3,320 KRW
Wlreless Telecommunication Services 2,650 KRW
Amorepacific Corp
Total for Personal Products
Samsung Fire & Marine Insurance
Total for Property & Casualty Insurance
Samsung Electronics
Total for Semiconductors
Posco
Total for Steel
SK Telecom
Total f o r Wireless Telecommunication Services
Market Value
368,688
368,688
364,559
364,559
899,961
899,961
428,127
428,127
435,761
435,761
O!o of Net
Assets
3.50
3.50
3.46
3 -46
8.54
8.54
4.06
4.06
4.1 3
4.13
Total Transferable Securities Admi t ted to an Official Exchange Listing 1 0,348,330 98.19 Total investments 1 0,348,330 98.19
Cash a t bank 190,892 1.81
Other N e t Liabilities (18) (0.00)
Total Net Assets 10,539,204 100.00
The accompanying notes form an integral part of these financial statements.
Standard Life Investments Global SICAV Report and Accounts 42
Standard Life Investments Global SICAV
Global Equities Fund
Global Equities Fund Objective The objective of the Sub-fund is to achieve long-term growth in the share price through capital appreciation of the underlying equity portfolio. It is intended that income will not be a prime consideration.
Global Equities Fund Investment Policy The Sub-fund will achieve this objective primarily through investment in equities and equity related securities of corporations registered on recognized stock exchanges.
Performance Review In the early part of the period, the telecom sector was among the top performers with merger and acquisition speculation boosting share prices. Luxury goods also performed well, supported by strong consumer demand.
Geographical Classification as at 30 June 2004 (expressed as a percentage of the net assets)
Performance Review (Continued) The Fund's exposure to the healthcare sector was the biggest negative for performance. In particular, ClaxoSmithKline performed poorly, following a number of successful patent challenges from generic manufacturers. The best performing stocks included Sprint PCS, Samsung Electronics, N Asahi and America Movil.
During the second quarter of 2004, the Fund underperformed i t s benchmark due to heavy positions in the poorly performing financial and telecom sectors. Stock selection was positive however, with strong contributions coming from the industrial and utility sectors. Tyco, the diversified US manufacturing company performed well and the German electricity and gas utility, E.On, also saw it share price rewarded after strong profit growth. Avon added to returns thanks to strong revenues from new markets. The worst contributors at a stock level were Nokia, Jabil, the US circuit board manufacturer, and Aisin Seiki, the Japanese auto parts maker.
Brazil 0.93% 7 Cash and Others 1.68%
Outlook Equities are torn between positive earnings surprises and uncertainty about monetary policy changes. Going forward though, we expect corporate newsflow to increasingly become the more dominant driver, allowing stock markets to makes gains. We believe that the global economy will benefit from an extended growth phase of the business cycle. Therefore, we maintain a bias towards the economically sensitive areas of the market, such as the industrials and materials sectors, where stocks should benefit from the recovery in corporate capital spending. Our principal focus, however, is on areas where there is a secular growth story rather than a purely cyclical impetus. On a sector basis, we favour telecoms and industrials largely as a result of bottom-up stock selection. Given the prospects for higher interest rates and their impact on the profitability of the banks, we are light in the financials sector.
Ten Largest Holdings as at 30 June 2004 (expressed as a percentage of the net assets)
SPDR Trust Series 1 2.94
General Electric 2.50
Exxon Mobil Corp 2.1 2
Bank of America Corp 1.75
Citigroup Inc 1.60
ClaxoSmithKline 1.54
Tyco International 1.52
Pfizer Inc 1.51
Intel Corp 1 .so Royal Bank of Scotland Group 1.42
L Europe 35.1 1 O h
43 Standard Life Investments Global SICAV Report and Accounts
Standard Life Investments Global SICAV - Global Equities Fund
Schedule of Investments (Expressed in USD) as a t 30 June 2004
Quantity/ Nominal Denomination
Value Currency Name of Securities
Transferable Securities Admitted to an Official Exchange Listing
Bermuda 2,295 9,965
Brazil 2,180 12,970
Canada 3,425
Denmark 2,342
Finland 5,292
France 8,181 1,880 1 ,I 90 3,330 1,450
Germany 9,490 3,510 750
3,926 1,159
Greece 4.41 0
Hong Kong 41,000 7431 9
USD USD
USD USD
CAD
DKK
EU R
EUR EUR EUR EUR EU R
EUR EUR EUR
EUR EUR
EU R
HKD HKD
Ingersoll-Rand 'A' Tyco International
Total for Bermuda
Cia Vale d o Rio Doce ADR Telesp Celular ParticipaFBes ADR Pref
Total for Brazil
Canadian National Railway
Total for Canada
Novo-Nordisk 'B'
Total for Denmark
Nokia
Total for Finland
Credit Agricole Lafarge Pernod-Ricard Sanofi-Synthelabo Total
Total for France
Deutsche Telekom (Regd) E.ON Muenchener Rueckversicherungsgesellschaft (Regd) RWE SAP
Total for Germany
Alpha Bank
Total for Greece
Bank of East Asia Hang Lung Properties
Total for Hong Kong
Market Value
154,591 328,945
483,536
101,959
202,217
100,258
144,697
144,697
121,159
121,159
75,994
75,994
199,042 167,364 153,133 21 2,440 276,985
1 , 008,964
167,470 253,553
82,413 184,514 193,241
881,191
110,183
110,183
1 1 7,222 96,018
21 3,240
Yo of Net
Assets
0.71 1.52
2.23
0.47 0.46
0.93
0.67
0.67
0.56
0.56
0.35
0.35
0.92 0.77 0.71 0.98 1.28
4.66
0.77 1.17
0.38 0.86 0.89
4.07
0.51
0.51
0.54 0.44
0.98
Standard Life Investments Global SICAV Report and Accounts 44
Standard Life Investments Global SICAV - Global Equities Fund
Schedule of Investments (Expressed in USD) (continued)
Quantity/ Nominal Denomination
Value Currency Name of Securities
Transferable Securities Admitted to an Official Exchange Listing
Hungary 2,110
Israel 2,272
Italy 6,130
11,416 7,650
51,500 21,196
20,150
Japan 22,000 1 1,400 15,000 3,700
20 9,000 1,900 2,000
21 9,000 6,700 6,700 5,000 4,500
50 83,000
Mexico 3,300
Netherlands 10,740 5,730 5,071
OTP Bank (Regd) CDR
Total for Hungary
Taro Pharmaceuticals Industries
Total for Israel
Assicurazioni Cenerali Enel ENI-Ente Nazionale ldrocarburi Fiat Telecom ltalia Terna
Total for Italy
Amada Chugai Pharmaceutical Daiwa Securities Group Inc Honda Motor KDDl Corp Mitsubishi Securities Murata Manufacturing Shin-Etsu Chemical Sumitomo Mitsui Financial Group Inc Sumitomo Realty & Development Suzuki Motor Corp TH K Tostem lnax Hldg Corp Toyota Motor Corp N Asahi Corp Ube Industries
Total for Japan
America Movil ADR 'L'
Total for Mexico
ASML Hldg ING Groep 'CVA Koninklijke Philips Electronics
Total for Netherlands
Market Value
86,553
86,553
100,763
1 00,763
165,498 161,786 228,180 64,206
160,527 45,759
825,956
145,528 179,308 108,044 178,805 1 14,658 1 18,490 108,576 71,661
144,315 11 1,792 118,310 127,112 108,181 182,737 94,630
129,634
2,041 , 781
11 7,447
1 17,447
183,406 136,004 137,830
457,240
Yo of Net
Assets
0.40
0.40
0.47
0.47
0.76 0.75 1.05 0.30 0.74 0.21
3.81
0.67 0.82 0.50 0.83 0.53 0.55 0.50 0.33 0.67 0.52 0.55 0.59 0.50 0.83 0.44 0.60
9.43
0.54
0.54
0.84 0.63 0.64
2.1 1
45 Standard Life Investments Global SICAV Report and Accounts
Standard Life Investments Global SICAV - Global Equities Fund
Schedule of Investments (Expressed in USD) (continued)
Quantity / Nominal Denomination
Value Currency Name of Securities
Transferable Securities Admitted to an Official Exchange Listing
Russia and former Republics of the Soviet Union 1,670
Singapore 10,491
South Korea 340
Spain 7,950 7,203
1 3,740
Sweden 41 9
6,500
Switzerland 3,700 891
1,875 825
United Kingdom 31,685 10,481 18,800
1 1 3,500 16,269 13,188 4,736 55,640 26,627 10,523 10,000 124,781 13,033
USD
USD
KRW
EUR EUR EUR
SEK SEK
CHF CHF CHF CHF
CBP GBP CBP EUR GBP GBP GBP GBP GBP CBP CBP GBP CBP
Yukos ADR
Total for Russia and former Republics of the Soviet Union
Flextronics International
Total for Singapore
Samsung Electronics
Total for South Korea
Banco de Sabadeli lberdrola Telefonica
Total for Spain
Ainax Volvo 'B'
Total for Sweden
Holcim (Regd) Nestle (Regd) Roche Hldg 'Genusschein' Swiss Life Hldg
Total for Swltzerland
BAE Systems Barclays BP Eircom Group ClaxoSmithKline HSBC Hldgs lnchcape Kidde Rolls-Royce Group Royal Bank of Scotland Group Trinity Mirror Vodafone Group Xstrata
Total for United Kingdom
Market Value
53,073
53,073
167,646
167,646
140,361
140,361
169,991 151,485 203,641
525,117
13,773 225,320
239,093
198,933 237,935 185,997 1 1 5,556
738,421
125,642 90,325 166,863 205,111 332,492 197,493 147,498 120,757 120,890 306,556 1 1 7,016 274,200 172,308
2,377,lS 1
Yo of Net
Assets
0.25
0.25
0.77
0.77
0.65
0.65
0.79 0.70 0.94
2.43
0.06 1.04
1.10
0.92 1.10 0.86 0.53
3.41
0.58 0.42 0.77 0.95 1.54 0.91 0.68 0.56 0.56 1.42 0.54 1.26 0.79
10.98
Standard Life Investments Global SICAV Report and Accounts 46
Standard Life Investments Global SICAV - Global Equities Fund
Schedule of Investments (Expressed in USD) (continued)
Quantity/ Nominal Denomination
Value Currency Name of securities
Transferable Securities Admitted to an Official Exchange Listing
United States of America 2,605 USD 1,673 USD 2,635 USD 4,370 USD 4,470 USD 3,160 USD 8,472 USD 7,497 USD 4,200 USD 4,986 USD 2,664 USD
10,321 USD 2,200 USD 2,600 USD 2,990 US0
1 6,744 USD 2,714 USD 4,510 USD
11,776 USD 1,358 USD 5,450 USD 1,443 USD 2,387 USD 2,599 USD 1,388 USD 3,599 USD 4,927 USD 3,968 USD 7,967 USD 3,000 USD 2,190 USD 9,492 USD 1,610 USD 4,790 USD 2,968 USD 3,340 USD 4,960 USD 4,700 USD 5,580 USD
12,280 USD 4,360 US0 4,250 USD 2,045 USD 9,389 USD 3,681 USD 2,660 USD 4,962 USD
Altria Group Inc American Express American International Group Inc Avon Products Bank of America Corp Burlington Resources Inc Cisco Systems Inc Citigroup Inc Compass Bancshares Inc Dell Inc El i Lilly Exxon Mobil Corp Federated Department Stores FedEx Corp Franklin Resources Inc General Electric Goldman Sachs Group Inc Hewlett-Packard Intel Corp International Business Machines Corp Jabil Circuit Inc Knight-Ridder Inc Lincoln National Corp Lowe's Inc MBNA Corp Medtronic Inc Merck Inc Merrill Lynch Inc Microsoft Corp Monsanto PepsiCo Inc Pfizer Inc Phelps Dodge Corp Polo Ralph Lauren Corp Procter & Gamble Prudential Financial Inc Rockwell Collins Inc SouthTrust Corp SPDR Trust Series 1 Sprint Corp-FON Group Sysco Corp TJX Cos Inc United Technologies Corp US Bancorp Veritas Software Corp Viacom Inc 'E' Non Vtg Wachovia Corp
Market Value
130,823 85,775
188,007 1 98,791 378,028 11 2,433 200,8 7 1 347,336 179,340 177,751 187,146 460,007 107,470 210,782 149,769 541,334 255,116 95,161
324,782 1 19,898 136,686 104,271 11 1,545 1 36,759 35,769
175,991 233,293 214,312 226,820 11 1,600 11 7,603 325,955 123,213 163,770 162,795 154,375 164,672 181,232 635,673 21 4,900 156,088 101,958 185,134 257,728 102,442 93,446
220,561
Yo of Net
Assets
0.60 0.40 0.87 0.92 1.75 0.52 0.93 1.60 0.83 0.82 0.86 2.1 2 0.50 0.97 0.69 2.50 1.18 0.44 1.50 0.55 0.63 0.48 0.52 0.63 0.1 7 0.81 1.08 0.99 1 .os 0.52 0.54 1.51 0.57 0.76 0.75 0.71 0.76 0.83 2.94 0.99 0.72 0.47 0.86 1.19 0.47 0.43 1.02
I
47 Standard Life Investments Global SICAV Report and Accounts
Standard Life Investments Global SICAV - Global Equities Fund
Schedule of Investments (Expressed in USD) (continued)
Quantity/ Nominal Denomination
Value Currency Name of securities Market
Value
Yo of Net
Assets
Transferable Securities Admitted to an Official Exchange Listing
United States of America (continued) 3,487 USD Wal-Mart Stores Inc 181,254 0.84 9,698 USD Walt Disney 247,202 1.14 2,474 USD Wells Fatgo 141,884 0.66
17,600 USD Williams Inc 209,088 0.97 3,000 USD Xilinx Inc 98,340 0.45
Total for United States of America IO, 1 76,979 47.01
Total Transferable Securities Admitted to an Official Exchange Listing 21,288,762 98.32
Total Investments 21,288,762 98.32
Cash at bank 358,938 1.66
Other Net Assets 3,847 0.02
Total Net Assets 21,65 1,547 100.00
The accompanying notes form an integral part of these financial statements.
Standard Life Investments Global SICAV Report and Accounts
Standard Life Investments Global SICAV
Global Bond Fund
Global Bond Fund Objective The objective of the Sub-fund is to achieve long term growth in the share price with capital appreciation being of secondary importance.
Global Bond Fund Investment Policy The Sub-fund will achieve this objective through investing in debt securities issued by sovereign and non- governmental agencies and corporate transferable debt securities in the constituent countries of the Salomon Brothers World Bond Index. Holdings will principally be of investment grade bonds. Returns on the Sub-fund will be both through the reinvestment of income and from capital gains.
Geographical Classification as at 30 June 2004 (expressed as a percentage of the net assets)
Performance Review The Fund performed in line with the benchmark over the first quarter of 2004. US inflation protected treasury bonds (TIPs) provided a positive contribution to performance. The Fund's overweight position in Euro- zone bonds was a negative factor as currency movements reduced returns.
During the second quarter, the Fund's heavy investment in Europe and light position in Japan contributed positively to performance, as did our investment in TIPs. The Fund's performance initially suffered during April due to our off-benchmark holdings in corporate bonds, which had been a prolonged source of good performance. However, this was offset by our heavy weighting in US bonds compared to the benchmark and our neutral holding in UK bonds.
Japan 27.40%
Germany 18.1 6% Cash and Others 5.02% I Canada 4.679'0
France 4.569'0
USA 21.1 59'0
UK 1.56%
Spain 17.48%
Outlook With the prospects of higher interest rates, bond yields are likely to move higher. The extent of the moves will depend on whether the markets perceive authorities to be moving fast enough to curb inflation. Within government bond markets, our preference is broadly unchanged. We expect Euro-zone bonds to perform best, as the economy remains fragile relative to the rest of the world, despite some signs of improvement. After the Euro-Zone our preferences are the UK, followed by the US and Japan.
We have become increasingly worried about the valuation of inflation-linked bonds, particularly in the UK and US, where the downward pressure on yields has stretched the gap between them and fixed-coupon yields to unsustainable levels. In addition, given the relatively low liquidity in the inflation-linked market, the prudent approach is to maintain a light position a t current prices.
Ten Largest Holdings as at 30 June 2004 (expressed as a percentage of the net assets)
Japan Government Bond 20.09.1 2 I 1.3000/0 9.20 Spain Government Bond 30.07.07 13.000% 9.09 Rheinische Hypothekenbank 05.07.10 / 5.750% 8.72 Spain Government Bond 30.07.1 1 1 5.400% 8.39 Deutsche Bundesrepublik 19.08.05 / 5.000% 7.85 Japan Bank for International Cooperation 19.03.08 1 0.350% 7.55 Japan Finance Corp for Municipal Enterprises 26.1 1.1 3 / 1.350% 7.10 United States Treasury Note 15.08.1 0 1 5.750% 6.38 Fannie Mae 15.09.09 / 6.625% 5.66 United States Treasury Note 15.05.1 4 / 4.750% 4.74
49 Standard Life Investments Global SICAV Report and Accounts
Standard Life Investments Global SICAV - Global Bond Fund
Schedule of Investments (Expressed in USD) as a t 30 June 2004
Quantity/ Nominal Denomination
Value Currency Name of Securities
Transferable Securities Admitted to an Official Exchange Listing
Canada 1,596,000 CAD
France 970,000 EUR
Germany 300,000 EUR
1,714,000 EUR 1,794,000 EUR
Japan 225,000,000 JPY . 21 8,000,000 J PY
100,000,000 I PY 278,000,000 JPY
Spain 1,742,000 EUR 2,050,000 EUR
United Kingdom 350,000 EUR
United States of America 1,400,000 USD 1,000,000 USD
1,600,000 USD 1,284,000 USD
Market Value
%o of Net
Assets
Canada Government Bond 01.06.1 1 1 6.000% 1,270,862 4.67
Total for Canada 1,270,862 4.67
France Government Bond OAT 25.04.1 2 I 5.000% 1,242,582 4.56
Total for France
Deutsche Bundesrepublik 04.01.30 / 6.250% Deutsche Bundesrepublik 19.08.05 I 5.000% Rheinische Hypothekenbank 0507.1 0 1 5.750%
Total for Germany
Japan Bank for International Cooperation 19.03.08 I 0.350% Japan Finance Corp for Municipal Enterprises 26.1 1.1 3 I 1.350% Japan Government Bond 21.1 2.20 1 2.500% Japan Government Bond 20.09.1 2 / 1.300%
Total for Japan
Spain Government Bond 30.07.1 1 / 5.400% Spain Government Bond 30.07.07 / 3.000%
Total for Spain
HBOS Treasury Services 23.10.1 3 / 4.500%
Total for United Kingdom
Fannie Mae 15.09.09 I 6.625% United States Treasury Inflation Indexed Bonds 15.01.1 1 I 3.472% United States Treasury Note 15.08.1 0 I 5.750% United States Treasury Note 15.05.14 / 4.750%
1,242,582
432,369 2,137,760 2,374,508
4,944,63 7
2,056,514
1,933,433 964,867
2,503,392
7,458,206
2,284,977 2,473,414
4,758,391
424,676
424,676
1,540,727
1,191,441 1,735,500 1,289,617
4.56
1.59 7.85 8.72
18.16
7.55
7.1 0 3.54 9.20
27.39
8.39 9.09
17.48
1.56
1.56
5.66
4.38 6.38 4.74
Total for United States of America 5,757,285 21.16
25,856,639 94.98 Total Transferable Securities Admitted to an Official Exchanqe Listinq
Total Investments 25,856,639 94.98
Cash at bank 974,26 1 3.58 ~
Other Net Assets 391,773 1.44
Total Net Assets 27,222,673 100.00
The accompanying notes form an integral part of these financial statements.
Standard Life Investments Global SICAV Report and Accounts 50
Standard Life Investments Global SICAV
Pan European Corporate Bond Fund
Pan European Corporate Bond Fund Objective The objective of the Sub-fund is to achieve long term growth in the share price with capital appreciation being of secondary importance.
Pan European Corporate Bond Fund Investment Policy The Sub-fund will achieve the objective through investing substantially in debt securities issued by corporations and agencies domiciled in European countries or whose securities are quoted on European stock exchanges. Holdings will principally be of investment grade bonds. To a lesser extent, the Sub-fund can also hold government guaranteed securities. Non-Euro denominated issues will generally be hedged back into that currency. Returns on the Sub-fund will be both through the reinvestment of income and from capital gains.
Geographical Classification as at 30 June 2004 (expressed as a percentage of the net assets)
Performance Review The Fund underperformed slightly over the first quarter of 2004 suffering from i t s exposure to the high yield segment. Bonds in this area were affected by the increased volatility in the equity markets and an increase in the number of new high yield Euro issues. Within the investment grade segment, the underperformance of lower rated bonds, where the Fund holds an overweight position, was another negative performance factor. The increased volatility in equity markets encouraged investors to move into higher rated issues causing lower rated issues to underperform.
Initially, corporate bonds performed well in the second quarter and provided better returns than government bonds thanks to low levels of supply, strong demand and good company results. In these circumstances, our light weighting in AAA bonds contributed positively to performance.
I I I I I
I - I
Italy 3.64Yo Cash and Others 4.03% Belgium 1.22% Netherlands 25.25940 Australia 1.68% Ireland 1.279’0 Sweden 3.16% Netherlands Antilles 0.67%
Jersey 1.58% Germany 3.30% France 5.96% Guernsey 1 .&I % Luxembourg 2.02%
Spain 3.91%
USA 18.59%
UK 21.91 Yo
Performance Review (Continued) Our stance also paid off in the latter part of the period, as strong economic data, particularly in the US, enabled corporate bonds to outperform government bonds. In June, however, higher quality bonds suffered, particularly those in the auto sector and mortgage banks. As a result, our heavy investments in CM and Volkswagen were negative. We were, however, only lightly invested in mortgage focused UK banks and this was beneficial.
Outlook The fundamental backdrop is finely balanced. The positive economic and corporate environment is supportive, but spreads are at historic lows and typically widen as interest rates rise. We continue to prefer high-yield corporate issues to investment-grade bonds, as higher-yielding bonds tend to perform better when inflation and interest rates are rising.
Ten Largest Holdings as at 30 June 2004 (expressed as a percentage of the net assets)
Deutsche Telekom International Finance 11.07.1 1 / 7.625% 3.65 France Telecom 28.01.1 3 1 7.250% 2.60 General Motors Acceptance Corp 06.06.1 1 15.375% 2.55 Caja de Ahorros y Monte de Piedad de Madrid Sub Nts 10.04.1 2 I 6.250% 2.14 Veolia Environnement 28.05.1 3 / 4.875% 1.93 Autostrade 09.06.14 / 5.000% 1.91 MPS Capital Trust I 29.1 2.49 1 7.990% (var) 1.87 DaimlerChrysler International Finance 21.03.1 1 I 7.000% 1.83 Olivetti Finance 24.01.1 3 1 6.875% 1.81 Credit Suisse Group Finance Guernsey Sub Nts 07.06.1 3 1 6.375% 1.81
51 Standard Life Investments Global SICAV Report and Accounts
Standard Life Investments Global SICAV - Pan European Corporate Bond Fund
Schedule of Investments (Expressed in EUR) as at 30 June 2004
Quantity/ Nominal Denomination
Value Currency Name of Securities
Transferable Securities Admitted to an Official Exchange Listing
Australia 250,000
Belgium 100,000 80,000
France 100,000 100,000 350,000 300,000
Germany 250,000 250,000
Guernsey 250,000
Ireland 200,000
Italy 300,000 250,000
Jersey 250,000
Luxembourg 100,000 100,000 100,000
EUR
EUR EUR
EUR EUR EUR EUR
EUR EUR
EUR
EUR
EUR EUR
EUR
EUR EUR EUR
Market Value
Australia & New Zealand Banking Group 07.02.07 / 4.875% 260,274
Total for Australia 260,274
Barry Callebaut Services Sub Nts 15.03.1 0 / 9.250% 1 1 1,000 Telenet Communications 15.1 2.1 3 1 9.000%
Total for Belgium
BSN Glasspack Obligation 01.08.09 1 9.250% FIMEP 15.02.1 3 / 1 1 .OOO% France Telecom 28.01.1 3 / 7.250% Veoiia Environnement 28.05.1 3 14.875%
Total for France
Deutsche Bank 31.01.1 3 / 5.125% RWE 14.02.33 / 5.750%
Total for Germany
Credit Suisse Group Finance Guernsey Sub Nts 07.06.1 3 16.375Yo Total for Guernsey
Bank of Ireland Sub Nts 27.02.1 9 / 4.625% (var)
Total for Ireland
Autostrade 09.06.1 4 1 5.000% Banca lntesa Sub Nts 08.05.14 / 5.850% (var)
Total for Italy
HSBC Capital Funding LPIJersey Channel Islands Sub Nts Perpetual 1 5.1 30% (var)
Total for Jersey
Antargaz Finance 15.07.1 1 1 1 O.OOOoh Kloeckner Pentaplast 15.02.1 2 / 9.375% Lighthouse International 30.04.1 4 / 8.000% Total for Luxembourg
79;200
190,200
105,500 1 1 6,750 404,023 299,280
925,553
257,488 255,013
51 2,501
281,083
281,083
197,000
197,000
296,565 268,824
565,389
245,814
245,814
1 1 1,000 106,500 96,685
3 14,185
Yo of Net
Assets
1.68
1.68
0.71 0.51
1.22
0.68 0.75 2.60 1.93
5.96
1.66 1.64
3.30
1.81
1.81
1.27
1.27
1.91 1.73
3.64
1.58
1.58
0.71 0.69 0.62
2.02
Standard Life Investments Global SICAV Report and Accounts 52
Standard Life Investments Global SICAV - Pan European Corporate Bond Fund
Schedule of Investments (Expressed in EUR) (continued)
Quantity/ Nominal Denomination
Value Currency Name of Securities
Transferable Securities Admitted to an Official Exchange Listing
Netherlands 250,000 100,000 250,000 100,000 250,000
500,000
250,000 100,000 100,000 250,000 250,000 250,000
250,000 250,000 250,000 250,000
Netherlands Antilles 100,000
Spain 300,000
250,000
Sweden 250,000
250,000
United Kingdom 250,000 250,000 250,000 250,000 105,000 250,000 250,000 250,000
EUR EUR EUR EUR EUR
EUR
EUR EUR EUR EUR EUR EUR
EUR EUR EUR EUR
EUR
EUR
EUR
EUR
EUR
EUR EUR EUR EUR EUR EUR EUR EUR
Allianz Finance II Sub Nts 31.05.22 1 6.1 25% (var) Ardagh Glass Finance 01.07.1 3 / 8.875% BMW Finance 06.04.1 1 / 3.875% Carmeuse Lime 15.07.1 2 / 10.750% DaimlerChrysler International Finance 21.03.1 1 / 7.000% Deutsche Telekom International Finance 11.07.1 1 / 7.625% E.ON International Finance 29.05.09 / 5.750% Flowserve Finance Sub Nts 15.08.1 0 / 12.250% IFCO Systems 15.1 0.1 0 I 10.375% Munich Re Finance 21.06.23 / 6.75O0h (var) Ohvetti Finance 24.01.1 3 / 6.875% Portugal Telecom International Finance 07.04.09 / 4.625% SNS Bank 14.06.12 / 5.625% Telefonica Europe 14.02.1 3 / 5.1 259'0 TPSA Eurofinance 13.03.07 / 6.500% Volkswagen International Fin 22.05.1 3 / 4.875%
Market Value
269,450 104,173 243,890 1 12,000
283,675
566,750 269,782 1 12,500 106,215 275,426 281 ,I 75
256,011 268,425 256,537 269,336 245,775
Total for Netherlands 3,921,120
Olivetti International 09.02.09 / 5.000% 103,580
Total for Netherlands Antilles 103,580
Caja de Ahorros y Monte de Piedad de Madrid Sub Nts 10.04.1 2 / 6.250% 333,866 Santander Central Hispano Issuances Sub Nts 14.03.1 1 / 6.0009'0 273,184
Total for Spain 607,050
Skandinaviska Enskilda Banken Sub Nts 28.05.1 5 / 4.1 25% (var) Vattenfall Treasury 29.04.24 / 5.375%
247,935 243,638
Total for Sweden 491,573
Allied Domecq Financial Services 12.06.09 1 5.875% Aviva Sub Nts Perpetual / 5.700% (var) Barclays Bank Sub Nts 08.03.1 1 / 5.750% BPB 1 7.03.1 0 I 6.500% Eco-Bat Finance 31.01 .I 3 / 10.1 25 Callaher Group 06.08.08 / 5.875% HBOS Sub Nts Perpetual / 4.875% (var) HBOS Treasury Services 23.06.10 / 3.375%
267,224 258,081 270,213 275,825 1 1 6,287 267,021 244,837 240,525
% of Net
Assets
1.73 0.68 1.57 0.72
1.83
3.65 1.74 0.72 0.69 1.77 1.81
1.65 1.73 1.65 1.73 1.58
25.25
0.67
0.67
2.14
1.76
3.90
1.60 1.57
3.1 7
1.72 1.66 1.74 1.78 0.74 1.72 1.58 1.55
53 Standard Life Investments Global SICAV Report and Accounts
Standard Life Investments Global SICAV - Pan European Corporate Bond Fund
Schedule of Investments (Expressed in EUR) (continued)
Quantity1 Nominal Denomination
Value Currency Name of Securities
Transferable Securities Admitted to an Official Exchange Listing
United Kingdom (continued) 250,000 EUR Imperial Tobacco Finance 06.06.07 1 6.250% 150,000 EUR Lloyds TSB Bank Sub Nts Perpetual 6.350% (var) 250,000 EUR " 0 2 25.01.07 I 6.375% 250,000 EUR Rexam 27.03.07 16.625% 250,000 EUR Royal Bank of Scotland
250,000 EUR Vodafone Group 04.06.1 8 I 5.000% Sub Nts Perpetual I 5,125% (var)
Total for United Kingdom
United States of America 250,000 250,000 250,000 250,000
400,000
100,000 250,000 100,000
EUR EUR EUR EUR
EUR
EU R EUR EUR
Autoliv Inc 23.05.06 15.875% Citigroup Inc 01.1 0.1 0 / 6.1 25% Citigroup Inc Sub Nts 10.02.1 9 1 4.750% (var) Deutsche Bank Capital Trust IV Sub Nts 15.330% (var) General Motors Acceptance Corp 06.06.1 1 I 5.375% General Motors Corp 05.07.33 18.375% Goldman Sachs Group Inc 24.04.1 3 I 5.125% lohnsondiversey Inc Sub Nts 15.05.1 2 1 9.625%
Market Value
267,212 164,088 267,887 269,648
249,615 244,861
3,403,324
262,403 2 76,334 249,414
252,325
396,370 110,175 255,016 108,500
Yo of Net
Assets
1.71 1.06 1.72 1.74
1.61 1.58
21.91
1.69 1.78 1.61
1.62
2.55 0.71 1.65 0.69
250,000 EUR Lehman Brothers Holdings Inc 10.05.1 1 / 6.375% 277,413 1.79 250,000 EU R MPS Capital Trust I 29.1 2.49 / 7.990% (var) 290,671 1.87 250,000 EUR Pemex Project Funding Master Trust
04.04.1 0 1 6.625% 263,125 1.69 50,000 CBP Warner Music Group Sub Nts 15.04.1 4 1 8.1 25% 70,832 0.46
Total for United States of America 2,812,578 18.1 1
Total Transferable Securities Admitted to an Official Exchange Listing 1 4,83 1,224 95.49
Transferable Securities Dealt in on Another Regulated Market
United States of America 63,000 EUR TRW Automotive Inc Sub Nts 15.02.1 3 I 11.750% 74,655 0.48
Total for United States of America 74,655 0.48
74,655 0.48 Total Transferable Securities Dealt in on Another Regulated Market
Total Investments 14,905,879 95.97
Cash at bank 597,906 3.85
Other Net Assets 28,442 0.18
Total Net Assets 15,532,227 100.00
The accompanying notes form an integral part of these financial statements.
Standard Life Investments Global SICAV Report and Accounts 54
Standard Life Investments Global SICAV
Reserve Fund
Reserve Fund Objective The objective of this Sub-fund is to provide returns in line with US treasury market short rates with low volatility.
Reserve Fund Investment Policy The Sub-fund aims to provide a stable, low risk and high liquidity investment. The investment policy of the Sub-fund is to invest in high quality short term (not exceeding 12 months) fixed interest securities (not including shares in companies or securities of UCls) and to hold liquidities on an ancillary basis. Investment will only be made in securities of investment grade status.
Performance Review Our holdings in US Treasury bills pro- vided a safe and liquid investment dur- ing the period and added to the stable performance of the Fund. The upbeat mood in the US, where the economic recovery is now well under way, also benefited performance.
Outlook We expect a combination of strong corporate cashflow and carefully controlled interest rate increases will ensure the economic upturn remains sustainable. The key feature for monetary policy moving into 2005 will be core inflation rather than employment data. If increases to core inflation, currently at 1.7% pa, are contained then the Federal Reserve will continue to be gradual in i t s approach to interest rates increases. The dollar i s likely to resume its downward trend as investors turn their attentions back to the huge US current account deficit.
Economic Classification as at 30 June 2004 (expressed as a percentage of the net assets)
Cash and Others 5.34% r--
55 Standard Life Investments Global SICAV Report and Accounts
Standard Life Investments Global SICAV - Reserve Fund
Schedule of Investments (Expressed in USD) as a t 30 June 2004
Quantity/ Nominal Denomination
Value Currency Name of Securities
Transferable Securities Admitted to an Official Exchange Listing
United States of America 1,000,000 USD 1,000,000 USD 1,000,000 USD 1,000,000 USD 1,000,000 USD 1,000,000 USD 2,000,000 USD 1,000,000 USD
United States Treasury Bill 01.07.04 / 0.000% United States Treasury Bill 08.07.04 / 0.000% United States Treasury Bill 15.07.04 / 0.000% United States Treasury Bill 22.07.04 / 0.000% United States Treasury Bill 02.09.04 / 0.000% United States Treasury Bill 09.09.04 / 0.000% United States Treasury Bill 16.09.04 / 0.000% United States Treasury Bill 23.09.04 / 0.000%
Total for United States of America
Market Value
999,974 999,796 999,612 999,404 997,969 997,547
1,994,304 996,944
8,985,550
Yo of Net
Assets
10.53 10.53 10.53 10.53 10.51 10.51 21.02 10.50
94.66
Total Transferable Securities Admitted to an Official Exchange Listing 8,985,550 94.66
Total investments 8,985,550 94.66
Cash at bank 509,177 5.36
Other Net Liabilities (2,608) (0.02) Total Net Assets 9,492,119 100.00
The accompanying notes form an integral part of these financial statements.
Standard Life Investments Global SICAV Report and Accounts 56
Standard Life Investments Global SICAV Soci 6 t 6 d ' I nves t i sse m en t a Capita I Va ria b I e
Notes to the Financial Statements as at 30 June 2004
1. Organisation Standard Life Investments Global SlCAV (the "Company") has been incorporated on 16 November 2000 under the laws of the Grand-Duchy of Luxembourg as a "Sociktk d'lnvestissement a Capital Variable" ("SICAV") with multiple sub-funds for an unlimited period. The Company has received approval from the Luxembourg authorities for registration under Part I of the law of 30 March 1988 relating to undertakings for collective investment in transferable securities (the "UCITS Law") in conformity with the European Council Directive No. 85/61 1 of 20 December 1985.
The legal notice ("notice Ikgale") required by Luxembourg laws in connection with the issue and sale of Shares in the Company has been deposited with the Registrar of Companies of the District Court of Luxembourg (the "Registrar"). The Company's articles of incorporation have also been deposited with the Registrar and have been published in the Recueil des SocietPs e t Associations (the "M6morial") on 19 December 2000. The Company has been registered under number B 78797 at the Luxembourg Commercial Register.
As a t 30 June 2004, the Company has issued shares in the following eleven sub-funds:
Name of Sub-Fund
Equity Sub-Funds Standard Life Investments Global SICAV US Equities Fund Standard Life Investments Global SlCAV European Equities Fund Standard Life Investments Global SlCAV Asian Equities Fund Standard Life Investments Global SICAV Hong Kong Equities Fund Standard Life Investments Global SlCAV Japanese Equities Fund Standard Life Investments Global SlCAV Taiwan Equities Fund Standard Life Investments Global SICAV Korean Equities Fund Standard Life Investments Global SlCAV Global Equities Fund
Class A
USD EUR USD HKD
J PY USD USD USD
Share Class
Class D
USD EU R USD H KD
J PY USD USD USD
Bond Sub-Funds Standard Life Investments Global SICAV Global Bond Fund USD USD Standard Life Investments Global SICAV Pan European Corporate Bond Fund EUR EUR
Reserve Sub-Fund Standard Life Investments Global SICAV Reserve Fund USD USD
Class Z
EUR
As at 30 June 2004, 3 classes of shares are offered to investors: Class A Shares, D Shares and Z Shares, which differ in the fee structure applying to them. Class D Shares are reserved for institutional investors.
As a t 30 June 2004 Class Z Shares are only available in the Pan European Corporate Bond Fund. Class 2 Shares are reserved for members of the Standard Life group of companies and for any other institutional investors with whom separate arrangements have been made to remunerate the Portfolio Manager and the relevant Sub-portfolio Manager.
57 Standard Life Investments Global SICAV Report and Accounts
Standard Life Investments Global SlCAV Socikte d'lnvestissement a Capital Variable
Notes to the Financial Statements as at 30 June 2004 (continued)
2.
I
Significant Accounting Policies a) General
These financial statements are prepared in accordance with generally accepted accounting principles in the Grand Duchy of Luxembourg on Investment Funds.
b) Investment valuation
In determining the value of the assets of the Company each security which is quoted or dealt in on a stock exchange is valued at its latest available price on the stock exchange which is normally the principal market for such securities, and each security dealt in on an over-the-counter market is valued in a manner as near as possible to that for quoted securities.
The value of securities not quoted or dealt in on a stock exchange or an over-the-counter market, and of securities which are so quoted or dealt in but in respect of which no price quotation is available or the price quoted is not representative of the security's fair market value, is determined prudently and in good faith on the basis of their reasonably foreseeable sale prices.
Short-term investments purchased and maturing within 90 days from the date of purchase are valued a t amortised cost, which approximates market value. Any discount or premium is amortised on a straight-line basis to maturity.
c) Conversion of foreign currencies
The books and records of each sub-fund are denominated in the base currency of the corresponding sub-fund. Amounts denominated in other currencies are translated into the base currency on the following basis: (i) investment valuations and other assets and liabilities initially expressed in other currencies are converted each business day into the base currency upon exchange rates prevailing on each business day; (ii) purchases and sales of foreign investments, income and expenses are converted into the base currency using currency exchange rates prevailing on the respective dates of such transactions.
Net realised gains and losses on foreign exchange represent: (i) foreign exchange gains and losses from the sale and holding of foreign currencies; (ii) gains and losses between trade date and settlement date on securities transactions and forward foreign exchange contracts; (iii) gains and losses arising from the difference between amounts of dividends and interest recorded and the amounts actually received.
The resulting profits and losses on transactions are included in the Combined Statement of Operations and Changes in Net Assets.
The reference currency of the combined statements is US dollars.
Securities transactions are recorded on a trade date basis. Dividend income is accrued on the ex-dividend date. Realised gains and losses are determined on the basis of the average cost of securities sold. Interest income is accrued on a daily basis.
The formation expenses of the Company and each of the Sub-funds have been borne by the Standard Life group of companies.
d) Securities transactions and investment income
e) Formation expenses
Standard Life Investments Global SlCAV Report and Accounts 58
Standard Life Investments Global SICAV Societe d'lnvestissement a Capital Variable
Notes to the Financial Statements as at 30 June 2004 (continued)
3. All-Inclusive Fee
The Company pays for the various Sub-funds an all-inclusive fee (the "All-inclusive Fee"), monthly in arrears and accrued daily determined on the average daily net assets of each Sub-fund (before deduction of the All-inclusive fee) at the current annual rates set forth in the table below. The Company is entitled to pay a maximum All-inclusive Fee of up to 2% per annum of the net assets of each Sub-fund. At least three months' prior notice will be given to all shareholders in respect of any increase in the All-inclusive Fee from its current stated level.
Name of Sub-fund All-inclusive Fee Class A Class D Class Z
Standard Life Investments Global SICAV US Equities Fund Standard Life Investments Global SICAV European Equities Fund Standard Life Investments Global SICAV Asian Equities Fund
1.35% pa 0.50% pa 1.35% pa 0.50% pa 1.35% pa 0.50% pa
Standard Life Investments Global SlCAV Hong Kong Equities Fund Standard Life Investments Global SlCAV Japanese Equities Fund Standard Life Investments Global SlCAV Taiwan Equities Fund Standard Life Investments Global SICAV Korean Equities Fund Standard Life Investments Global SICAV Global Equities Fund Standard Life Investments Global SICAV Global Bond Fund Standard Life Investments Global SICAV Pan European Corporate Bond Fund Standard Life Investments Global SICAV Reserve Fund
1.35% pa 1.35% pa 1 .3S0/6 pa 1.35% pa 1.35% pa 1 .OOYo pa
1.35% pa 0.75940 pa
0.50% pa 0.50% pa 0.50% pa 0.50% pa 0.50% pa 0.50°h pa
0.50%pa 0% pa 0.50% pa
This All-inclusive Fee is used to pay the Central Administration, the Custodian, the Portfolio Manager, any distributors and any permanent representatives in places of registration of the Company or any Sub-fund.
The All-inclusive Fee also covers all the costs incurred by the Company and the Sub-funds, with the exception of all taxes levied on the assets and income of the Company (in particular, but not limited to, the "taxe d'abonnement" and any stamp duties payable), fees for auditing services, printing services, costs of any proposed listings and of maintaining such listings, customary transaction fees and charges charged by the Custodian and its agents (including free payments and receipts and any reasonable out-of-pocket expenses, ie. stamp taxes, registration costs, scrip fees, special transportation costs, etc.), customary brokerage fees and commissions charged by banks and brokers for securities transactions and similar transactions, costs of extraordinary measures carried out in the interests of shareholders (in particular, but not limited to, arranging expert opinions and dealing with legal proceedings), all reasonable out-of- pocket expenses of the Directors, registration fees and other expenses payable to governmental and supervisory authorities in any relevant jurisdictions, insurance costs (but not beyond the portion of the blanket insurance policy, if any, maintained by the Standard Life group of companies attributable to the Company) and interest, which shall be borne by the Company.
The allocation of costs and expenses to be borne by the Company will be made pro rata to the net assets of each Sub- fund in accordance with the articles of incorporation of the Company.
59 Standard Life Investments Global SICAV Report and Accounts
Standard Life Investments Global SICAV Societe d'lnvestissement a Capital Variable
Notes to the Financial Statements as at 30 June 2004 (continued)
3. All-Inclusive Fee (continued) The fees so paid during the period ended 30 June 2004 were as follows:
Breakdown of All-Inclusive Fee European
US Equities Equities Fund Fund USD EUR
All-inclusive Fee Custody Fees 229 490
Fund Accounting Fees 15,883 11,915
Transfer Agency Fees 2,349 1,698
Fiduciary Fees 2,653 1,990
Legal & Regulatory Fees 5,098 3,790
Paying Agency Fees 31 5 241
Total 26,527 20,124
Asian Hong Kong Equities Equities
Fund Fund USD HKD
7,897 13,546
23,116 143,910
3,419 19,682
3,861 24,040
7,419 46,331
459 2.876
Japanese Equities
Fund J PY
17,582
922,332
121,418
154,071
299,156
19.1 24
46,17 1 250,385 1,533,683
Breakdown of All-Inclusive Fee (continued) Taiwan Korean Global Global Pan European Equities Equities Equities Bond Corporate Bond Reserve
Fund Fund Fund Fund Fund Fund USD USD USD USD EU R USD
All-inclusive Fee Custody Fees 5,619 4,SO 7 2,407 4,208 51 178
Fund Accounting Fees 14,514 14,475 31,380 40,192 54 3 14,547
Transfer Agency Fees 1,743 1,738 4,117 5,049 92 1,747
Fiduciary Fees 2,425 2,418 5,242 6,714 91 2,430
Legal & Regulatory Fees 4,659 4,646 10,072 12,899 172 4,669
Paying Agency Fees 288 287 622 797 10 289
Total 29,248 28,371 53,840 69,859 959 23,860
4. Dividend No dividends have been paid since the launch of the Company.
Standard Life Investments Global SICAV Report and Accounts 60
Standard Life Investments Global SICAV Societe d'lnvestissement a Capital Variable
Notes to the Financial Statements as at 30 June 2004 (continued)
5. Taxation
a) Taxe d 'abonnement
Under current law and practice, the Company is not liable to any Luxembourg income tax, nor are dividends paid by the Company liable to any Luxembourg withholding tax. The Company is not subject to any tax in Luxembourg except to an annual tax ("taxe d'abonnement"), calculated and payable quarterly, at the rates set out below:
I I
Equity sub-funds Class A Equity sub-funds Class D Bond sub-funds Class A Bond sub-funds Class D
Bond sub-funds Class 2 Reserve sub-fund Class A Reserve sub-fund Class D
b) Provision for foreign taxes
0.05% of total net assets of the class 0.01 % of total net assets of the Class 0.05Y0 of total net assets of the Class 0.01 YO of total net assets of the Class 0.01 % of total net assets of the Class 0.01 % of total net assets of the Class 0.01 % of total net assets of the Class
Capital gains, dividends and interest on securities received from other countries may be subject to withholding or capital gains taxes imposed by such countries. It is the Company's policy to provide for any potential liability to foreign capital gains and income taxes.
6. Forward Foreign Exchange Contracts The forward foreign exchange contracts are valued on the basis of forward foreign exchange rates prevailing on 30 June 2004 and the resulting net change in unrealised gain or loss is included in the Statement of Operations and Changes in Net Assets.
As at 30 June 2004 the Company had the following outstanding forward foreign exchange contracts:
Standard Life Investments Global SICAV Global Bond Fund
Unrealised
Gain/(Loss)
Purchase Sale Maturity in USD
Currency Amount Currency Amount Date Amount
USD
USD
J PY
4,155,798 EUR 3,409,679 07-Sept-04 25,064
3,590,052 JPY 397,113,912 07-Sept-04 (69,282)
193,694,009 USD 1,790,052 07-Sept-04 (5,197) (49,415)
Standard Life Investments Global SICAV Pan European Corporate Bond Fund
U n reallsed
Gain
Purchase Sale Maturity in EUR
Amount Currency Amount Date Amount
74,818 GBP 50,000 07-Sept-04 620
620
Currency
EUR
61 Standard Life Investments Global SICAV Report and Accounts
Standard Life Investments Global SICAV Societk d'lnvestissement a Capital Variable
Notes to the Financial Statements as at 30 June 2004 (continued)
7.
8.
9.
10,
Swap Contracts The interest rate Swap is valued at the fair value based on current market interest rates and the resulting net change in unrealised appreciation/(depreciation) is included in the Combined Statement of Operations.
As at 30 June 2004 the Company had the following outstanding Swap contracts:
Standard Life Investments Global SICAV Pan European Corporate Bond Fund Unrealised
Cain/( Loss) Termination Notional in USD Date Contract Currency Amount Amount 03-Apr-2014 Pay fixed 4.330%,
30-Apr-2009 Receive fixed 3.563%,
30-Apr-2034 Pay fixed 4.980%,
Receive floating rate Euribor 6m EUR 2,500,000 13,347
Pay floating rate Euribor 6m EUR 500,000 (2,708)
Receive floating rate Euribor 6m EUR 200,000 115 10,754
Value Of Financial Instruments And Associated Risks The Company enters into forward foreign exchange and financial futures contracts which, to varying degrees, represent a market risk in excess of the amount reflected on the Combined Statement of Net Assets. The amount of the contracts represents the extent of the Company's participation in these financial instruments. Market risks associated with such contracts arise due to the possible movements in foreign exchange rates, indices, and security values underlying these instruments. Other market and credit risks include the possibility that there may be an illiquid market for the contracts, that a change in the value of the contracts may not directly correlate with changes in the value of underlying currencies, indices, or securities, or that the counterparty to a contract defaults on i ts obligation to perform under the terms of the contract.
Soft Commission The Portfolio Manager will not enter any soft commission arrangements in relation to the Company. Neither the Portfolio Manager nor any of its connected persons have or are entitled to retain any cash rebates from any broker or dealer in consideration of directing transactions on behalf of Sub-funds to that broker or dealer. Any such cash rebates received shall be held for the accounts of the relevant Sub-funds.
Related Party Transactions The Sub-Portfolio Manager and Portfolio Manager are related parties. The fee structure of services rendered by them are described in Note 3.
Standard Life Investments Global SICAV Report and Accounts 62
Standard Life Investments Global SlCAV Societ6 d'lnvestissement a Capital Variable
Statement of Changes in the Portfolio A statement giving the changes in the portfolio of investments for the period ended 30 June 2004 can be obtained free of charge from the registered office of the Company.
General Information The Company's articles of incorporation may be amended from time to time by a meeting of shareholders, subject to the quorum and majority requirements provided by Luxembourg law. Any amendment thereto shall be published in the Memorial, in a Luxembourg daily newspaper and, if necessary, in the official publications specified for the respective countries in which Company Shares are sold. Such amendments become legally binding on all shareholders, following their approval by the general meeting of shareholders.
Any amendments affecting the rights of the holders of Shares of any Class vis-a-vis those of any other Class shall be subject further to the said quorum and majority requirements in respect of each relevant Class.
The Company is a single legal entity. However, each Sub-fund is regarded as being separate from the others and is liable for all of i t s own obligations, unless other terms have been specifically agreed with i ts creditors.
The first annual general meeting of shareholders was held a t the registered office of the Company on the first Thursday in May 2002 and will be held on the same date each year thereafter (unless such date falls on a legal bank holiday, in which case on the next Luxembourg Business Day) at midday.
Notices of all annual general meetings are sent by mail to all registered shareholders at their registered address at least eight days prior to each such meeting, and notices of all extraordinary general meetings at least 21 days prior to each such meeting. Such notice will indicate the time and place of such meeting and the conditions of admission thereto, will contain the agenda and will refer to the requirements of Luxembourg law with regard to the necessary quorum and majorities at such meeting. To the extent required by Luxembourg law, further notices will be published in the Memorial and in one Luxembourg newspaper.
Audited annual reports and unaudited semi-annual reports are mailed to Shareholders at their registered addresses and are made available at the registered office of the Company. The accounting year of the Company terminates on 31 December in each year.
The net asset value per share and the issue and redemption price can be obtained from the registered office of the Company.
63 Standard Life Investments Global SlCAV Report and Accounts
Standard Life Investments Global SICAV' ("SICAV") is an umbrella type investment company with variable capital registered in Luxembourg (no. 878797) Registered Office 5, rue Plaetis, L-2338 Luxembourg, Grand Duchy of Luxembourg.
Standard Life Investments Limited**, tel. 0131 225 2345, a company registered in Scotland (no. SC 123321) Registered Office 1 George Street, Edinburgh, EH2 2LL is the Portfolio Manager of the SICAV. Standard Life Investments (Asia) Limited***, a company registered in Scotland (no. SC 193436) Registered Office 1 George Street as above and Standard Life Investments Inc., a company registered in Canada (060962-5) Registered Office 1001 de Maisonneuve Blvd West, Suite 700, Montreal, Quebec H3A 3C8 are Sub-portfolio Managers of the SICAV.
'Authorised by the Commission de Surveillance du Secteur Financier, Luxembourg.
**Authorised and regulated in the UK by the Financial Services Authority.
***Licensed with and regulated by the Securities and Futures Commission in Hong Kong.
Standard Life Investments may record and monitor telephone calls to help improve customer service.
INVRT548