S UK Ra Ea F F T ˘ A - · PDF fileC S UK Ra Ea F F T ˘ A 31 2016. Report and Audited Financial Statements for the year ended 31 March 2016 1 OVERVIEW Trust Information* 2 ... 2016

Schroder�UK�Real�Estate�Fund�Feeder�Trust

Report and Audited Financial Statements

For�the�Year�Ended

31 March 2016

CONTENTSSchroder�UK�Real�Estate�Fund�Feeder�Trust Report and Audited Financial Statements for the year ended 31 March 2016

Report and Audited Financial Statements for the year ended 31 March 2016 1

OVERVIEWTrust Information* 2

GOVERNANCEReport of the Authorised Fund Manager and statement of responsibilities* 4AIFM employee remuneration disclosure 5Trustee’s Report 6

FINANCIAL STATEMENTSIndependent Auditors’ Report 7Statement of Total Return 10Statement of Change in Net Assets Attributable to Unitholders 10Balance Sheet 11Cash Flow Statement 12Notes to the Financial Statements 13Unaudited Additional Information 20Key Service Providers* 22

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167762 Schroder UK REFF 2016_167762 Schroder UK REFF 2016 21/07/2016 00:29 Page 1

The Trust

Schroder UK Real Estate Fund Feeder Trust (“theTrust”) is an authorised unit trust in umbrella formand authorised by the FCA (Financial ConductAuthority) with effect from 31 July 2012. TheTrust has unlimited duration.

Trust objectives

The investment objective of the Trust is toachieve a blend of income and capital growth byinvesting solely in the Schroder UK Real EstateFund.

2 Schroder UK Real Estate Fund Feeder Trust

OVERVIEWTrust Information

Performance As at/For the As at/For the As at/For the year to year to year to 31 March 31 March 31 March 2016 2015 2014

Net asset value per unit £42.26 £39.26 £34.68.................................................................................................................................................................................................................................................................................................................................................................

Total gross distribution per unit payable £1.44 £1.50 £1.45.................................................................................................................................................................................................................................................................................................................................................................

Number of units in issue 3,726,875.933 1,891,575.962 1,723,353.359.................................................................................................................................................................................................................................................................................................................................................................

Net asset value £157,497,779 £74,263,272 £59,765,894.................................................................................................................................................................................................................................................................................................................................................................

Gross asset value £158,126,859 £74,968,217 £60,020,766.................................................................................................................................................................................................................................................................................................................................................................

Gross yield on year and net asset value 3.4% 3.9% 4.2%.................................................................................................................................................................................................................................................................................................................................................................

Total return during year 11.5% 17.9% 11.4%.................................................................................................................................................................................................................................................................................................................................................................

Total Net Asset Value of scheme property £157,497,779 £74,263,272 £59,765,894.................................................................................................................................................................................................................................................................................................................................................................

Highest price per unit £42.51 £39.26 £34.68.................................................................................................................................................................................................................................................................................................................................................................

Lowest price per unit £39.59 £34.90 £32.03.................................................................................................................................................................................................................................................................................................................................................................

Net income distributed £3,155,233 £2,296,707 £1,160,695


The performance of the Trust, which mirrors theperformance of the Schroder UK Real EstateFund is summarised in the below table. Theperformance summary of the three and five year

figures is included within the Schroder UK RealEstate Fund audited Report and Accounts for theyear ended 31 March 2016.


OVERVIEWTrust Information continued

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As at/For the As at/For the Year to Year to 31 March 2016 31 March 2015

Investments.................................................................................................................................................................................................................................................................................................................................................................

Annual Total Return* 11.5% 17.9%.................................................................................................................................................................................................................................................................................................................................................................

Benchmark Total Return* 10.6% 16.6%

*Returns are quoted net of fees but gross of tax. Investors in the Feeder Fund receive all distributable income as dividenddistributions, net of corporation tax at 20%

Portfolio Statement as at 31 March 2016 Market Value Total Net £’000 asset %

Investments.................................................................................................................................................................................................................................................................................................................................................................

Schroder UK Real Estate Fund 157,498 100%.................................................................................................................................................................................................................................................................................................................................................................

Total investments 157,498 100%.................................................................................................................................................................................................................................................................................................................................................................

Total net assets 157,49 100%


8

GOVERNANCEReport of the Authorised Fund Manager and Statement ofResponsibilities

The Financial Statements

We are pleased to present the Report andAudited annual financial statements of the Trustfor the year ended 31 March 2016.

Statement of the Authorised FundManager’s Responsibilities

The Collective Investment Schemes Sourcebookof the FCA (Financial Conduct Authority) requiresthe Authorised Fund Manager to prepare financialstatements for each accounting period whichgive a true and fair view of the financial positionof the Trust at the period end and of the netincome and net gains or losses on the schemeproperty of the Trust for the period then ended.

In preparing the financial statements the Manageris required to:

– follow applicable accounting standards;

– make judgements and estimates that arereasonable and prudent;

– select suitable accounting policies and thenapply them consistently;

– prepare the financial statements on the goingconcern basis unless it is inappropriate topresume that the Trust will continue inoperation for the foreseeable future; and

– comply with the disclosure requirements of theStatement of Recommended Practice for UKAuthorised Funds issued by the IMA(Investment Management Association) in May2014.

The Manager is required to keep properaccounting records and to manage the Trust inaccordance with the Regulations and theInstrument of Incorporation.

The Manager is responsible for taking reasonablesteps for the prevention and detection of fraudand other irregularities.

We hereby approve the Report and FinancialStatements of the Schroder UK Real Estate FundFeeder Trust for the year to 31 March 2016 inaccordance with the requirements of theCollective Investment Schemes Sourcebook ofthe FCA.

J. Walker-Hazell

P. Chislett

Schroder Unit Trusts Limited21 July 2016



GOVERNANCEAlternative Investment Fund Managers (AIFM) RemunerationDisclosures for Schroder Unit Trust Limited (SUTL) as at 31 December 2015

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The following disclosures are required under theAlternative Investment Fund Managers Directive(AIFMD).

These disclosures should be read in conjunctionwith the Schroders Remuneration Report onpages 68 to 86 of the 2015 Annual Report &Accounts (available on the Group’s website –www.schroders.com/ir), which provides moreinformation on the activities of our RemunerationCommittee and our remuneration principles andpolicies.

Details of the AIFM Remuneration Code can befound at www.fca.org.uk, in the SeniorManagement Arrangements, Systems andControls Sourcebook (SYSC 19B).

The Remuneration Committee of Schroders plchas established an AIFM Remuneration Policy toensure the requirements of the AIFMRemuneration Code are met proportionately forall AIFM Remuneration Code Staff. You can getdetails of the latest remuneration policy atwww.schroders.com/Remuneration-disclosures.

The total amount of remuneration paid by SUTLto its staff is nil as SUTL has no employees. AIFMRemuneration Code Staff of SUTL are employedand paid by other Schroders group companies.Employees who serve as Directors of SUTLreceive no additional fees in respect of their roleon the Board of SUTL.

SUTL manages a total of £42,989 million assetsunder management, £16,753 million of which arein Alternative Investment Funds (AIFs).

SUTL’s Code Staff are individuals in roles whichcan materially affect the risk of SUTL or any AIF itmanages. These individuals are employed by andprovide services to other companies in, andclients of, the Schroders Group. As a result, onlya portion of remuneration for those individuals isincluded in the aggregate remuneration figuresthat follow, based on an objective apportionmentto reflect the balance of each role. The aggregatetotal remuneration paid to the 140 AIFMRemuneration Code Staff of SUTL is£11,548,623, of which £3,891,982 is paid toSenior Management and £7,656,641 is paid toother AIFM Remuneration Code Staff.



GOVERNANCETrustee’s Report

Statement of Responsibilities


Statement of the Depositary’sResponsibilities and Report of theDepositary to the Shareholders ofSchroder UK Real Estate Fund (“theCompany”) for the Period Ended31 March 2016.

The Depositary must ensure that the Company ismanaged in accordance with the FinancialConduct Authority’s Collective InvestmentSchemes Sourcebook, the Investment FundsSourcebook, the Open-Ended InvestmentCompanies Regulations 2001 (SI 2001/1228) (theOEIC Regulations), as amended, the FinancialServices and Markets Act 2000, as amended,(together “the Regulations”), the Company’sInstrument of Incorporation and Prospectus(together “the Scheme documents”) as detailedbelow.

The Depositary must in the context of its role acthonestly, fairly, professionally, Independently andin the interests of the Company and its investors.

The Depositary is responsible for the safekeepingof all custodial assets and maintaining a record ofall other assets of the Company in accordancewith the Regulations.

The Depositary must ensure that:

– the Company’s cash flows are properlymonitored and that cash of the Company isbooked into the cash accounts in accordancewith the Regulations;

– the sale, issue, redemption and cancellation ofshares are carried out in accordance with theRegulations;

– the value of shares of the Company arecalculated in accordance with the Regulations;

– any consideration relating to transactions inthe Company’s assets is remitted to theCompany within the usual time limits;

– the Company’s income is applied inaccordance with the Regulations; and

– the Instructions of the Alternative InvestmentFund Manager (“the AIFM”) are carried out(unless they conflict with the Regulations).

The Depositary also has a duty to takereasonable care to ensure that the Company ismanaged in accordance with the Schemedocuments and the Regulations in relation to theinvestment and borrowing powers applicable tothe Company.

Having carried out such procedures as weconsider necessary to discharge ourresponsibilities as Depositary of the Company, itis our opinion, based on the information availableto us and the explanations provided, that in allmaterial respects the Company, acting throughthe AIFM:

(i) has carried out the issue, sale, redemption andcancellation, and calculation of the price of theCompany’s shares and the application of theCompany’s income in accordance with theRegulations and the Scheme documents ofthe Company, and

(ii) has observed the investment and borrowingpowers and restrictions applicable to theCompany.

Natwest PLC – 21 July 2016


Report on the financial statements

Our opinion

In our opinion the financial statements, definedbelow:

– give a true and fair view of the financialposition of the Trust as at 31 March 2016 andof the net revenue, the net capital gains onthe scheme property and the cash flows ofthe Trust for the year then ended; and

– have been properly prepared in accordancewith United Kingdom Generally AcceptedAccounting Practice, the Statement ofRecommended Practice for Authorised Trusts,the Collective Investment Schemessourcebook and the Trust Deed.

This opinion is to be read in the context of whatwe say in the remainder of this report.

What we have audited

The financial statements of Schroder UK RealEstate Fund Feeder Trust (the “Trust”), which areprepared by Schroder Unit Trusts Limited (the“Authorised Fund Manager”), included within theReport and Audited Financial Statementscomprise:

– the balance sheet of the Trust as at 31 March2016;

– the statement of total return of the Trust forthe year then ended;

– the statement of change in net assetsattributable to unitholders of the Trust for theyear then ended;

– the cash flow statement of the Trust for theyear then ended;

– the notes to the Trust’s financial statements,which include a summary of significantaccounting policies and other explanatoryinformation; and

– the distribution table.

The financial reporting framework that has beenapplied in the preparation of the financialstatements is United Kingdom AccountingStandards, comprising FRS 102 “The FinancialReporting Standard applicable in the UK andRepublic of Ireland”, and applicable law (UnitedKingdom Generally Accepted AccountingPractice), the Statement of RecommendedPractice ‘Financial Statements of UK AuthorisedFunds’ issued by the Investment ManagementAssociation (the “Statement of RecommendedPractice for Authorised Funds”), the CollectiveInvestment Schemes sourcebook and the TrustDeed.

In applying the financial reporting framework, theAuthorised Fund Manager has made a number ofsubjective judgements, for example in respect ofsignificant accounting estimates. In making suchestimates, they have made assumptions andconsidered future events.

Opinions on matters prescribed bythe Collective Investment Schemessourcebook

In our opinion:

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

– the information given in the Authorised FundManager’s Report for the financial year forwhich the financial statements are prepared isconsistent with the financial statements.


FINANCIAL STATEMENTSIndependent Auditors’ ReportTo the Unitholders of Schroder UK Real Estate Fund Feeder Trust

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Other matters on which we arerequired to report by exceptionPropriety of accounting records andinformation and explanations received

Under the Collective Investment Schemessourcebook we are required to report to you if, inour opinion:

– proper accounting records have not beenkept; or

– the financial statements are not in agreementwith the accounting records.

We have no exceptions to report arising from thisresponsibility.

Responsibilities for the financialstatements and the auditOur responsibilities and those of theAuthorised Fund Manager

As explained more fully in the Report of theAuthorised Fund Manager and statement ofresponsibilities set out on page 4, the AuthorisedFund Manager is responsible for the preparationof the financial statements and for being satisfiedthat they give a true and fair view.

Our responsibility is to audit and express anopinion on the financial statements in accordancewith applicable law and International Standardson Auditing (UK and Ireland) (“ISAs (UK &Ireland)”). Those standards require us to complywith the Auditing Practices Board’s EthicalStandards for Auditors.

This report, including the opinions, has beenprepared for and only for the Trust’s unitholdersas a body in accordance with paragraph 4.5.12of the Collective Investment Schemessourcebook and for no other purpose.

We do not, in giving these opinions, accept orassume responsibility for any other purpose or toany other person to whom this report is shown or

into whose hands it may come save whereexpressly agreed by our prior consent in writing.

What an audit of financial statementsinvolves

We conducted our audit in accordance withInternational Standards on Auditing (UK andIreland) (“ISAs (UK & Ireland)”). An audit involvesobtaining evidence about the amounts anddisclosures in the financial statements sufficientto give reasonable assurance that the financialstatements are free from material misstatement,whether caused by fraud or error. This includesan assessment of:

– whether the accounting policies areappropriate to the Trust’s circumstances andhave been consistently applied andadequately disclosed;

– the reasonableness of significant accountingestimates made by the Authorised FundManager; and

– the overall presentation of the financialstatements.

We primarily focus our work in these areas byassessing the Authorised Fund Manager’sjudgements against available evidence, formingour own judgements, and evaluating thedisclosures in the financial statements.

We test and examine information, using samplingand other auditing techniques, to the extent weconsider necessary to provide a reasonable basisfor us to draw conclusions. We obtain auditevidence through testing the effectiveness ofcontrols, substantive procedures or acombination of both.

In addition, we read all the financial and non-financial information in the Annual Report toidentify material inconsistencies with the auditedfinancial statements and to identify anyinformation that is apparently materially incorrectbased on, or materially inconsistent with, the


FINANCIAL STATEMENTSIndependent Auditors’ ReportTo the Unitholders of Schroder UK Real Estate Fund Feeder Trustcontinued


knowledge acquired by us in the course ofperforming the audit. If we become aware of anyapparent material misstatements orinconsistencies we consider the implications forour report.

PricewaterhouseCoopers LLPChartered Accountants and Statutory AuditorsLondon21 July 2016

Notes:

a) The maintenance and integrity of the SchroderUK Real Estate Fund Feeder Trust website isthe responsibility of the Authorised FundManager; the work carried out by the auditorsdoes not involve consideration of thesematters and, accordingly, the auditors acceptno responsibility for any changes that mayhave occurred to the financial statementssince they were initially presented on thewebsite.

b) Legislation in the United Kingdom governingthe preparation and dissemination of financialstatements may differ from legislation in otherjurisdictions.


FINANCIAL STATEMENTSIndependent Auditors’ ReportTo the Unitholders of Schroder UK Real Estate Fund Feeder Trustcontinued

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Year to Year to 31 March 31 March 2016 2015 Notes £’000 £’000

Income.................................................................................................................................................................................................................................................................................................................................................................

Net capital gains 5 4,658 7,217.................................................................................................................................................................................................................................................................................................................................................................

Revenue 6 3,813 2,814.................................................................................................................................................................................................................................................................................................................................................................

Expenses – –

Net revenue before taxation 3,813 2,814

Taxation 12 (658) (517)..............................................................................................................................................................................................................................................................................

Net revenue after taxation 3,155 2,297

Total return before distribution 7,813 9,514

Finance costs: distributions 7 (3,155) (2,297)

Change in net assets attributable to unitholders from investment activities 4,658 7,217

Statement of Change in Net Assets Attributable to Unitholders Year to Year to 31 March 31 March 2016 2015 £’000 £’000

Opening net assets 73,166 59,766.................................................................................................................................................................................................................................................................................................................................................................

Amounts receivable on issue of units 79,712 6,599.................................................................................................................................................................................................................................................................................................................................................................

Amounts payable on cancellation of units (38) (416)

Net amounts receivable on issue of units 152,840 65,949

Change in net assets attributable to unitholders from investment activities 4,658 7,217

Closing net assets 157,498 73,166

FINANCIAL STATEMENTSStatement of Total Return



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As at As at 31 March 31 March 2016 2015 Notes £’000 £’000

ASSETS.................................................................................................................................................................................................................................................................................................................................................................

Investment Asset 157,498 73,166.................................................................................................................................................................................................................................................................................................................................................................

Debtors 8 874 242.................................................................................................................................................................................................................................................................................................................................................................

Cash and bank balances 9 115 477

Total other assets 989 719

Total assets 158,487 73,885

LIABILITIES.................................................................................................................................................................................................................................................................................................................................................................

Creditors 10 658 516.................................................................................................................................................................................................................................................................................................................................................................

Distribution payable on income units 331 203

Total liabilities 989 719

Net assets attributable to shareholders 157,498 73,166

Balance Sheet



Year to Year to 31 March 31 March Notes 2016 2015

Net cash inflow from operating activities 15 3,181 2,799.................................................................................................................................................................................................................................................................................................................................................................

Tax paid in the year (519) (283).................................................................................................................................................................................................................................................................................................................................................................

Net cash generated from operating activities 2,662 2,516

Investing activities.................................................................................................................................................................................................................................................................................................................................................................

Purchases of investments (79,674) (6,183).................................................................................................................................................................................................................................................................................................................................................................

Net cash used in investing activities (79,674) (6,183)

Financing activities.................................................................................................................................................................................................................................................................................................................................................................

Amounts received on issue of units 79,712 6,599.................................................................................................................................................................................................................................................................................................................................................................

Amount paid on redemption of units (38) (416).................................................................................................................................................................................................................................................................................................................................................................

Distributions paid (3,024) (2,294).................................................................................................................................................................................................................................................................................................................................................................

Net cash inflow from financing activities 76,650 3,889

(Decrease)/Increase in cash in the year (362) 222.................................................................................................................................................................................................................................................................................................................................................................

Net cash at the start of the year 477 255.................................................................................................................................................................................................................................................................................................................................................................

Net cash at the end of the year 115 477

Cash Flow Statement



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1. Accounting policies(a) Basis of accounting

The accounts have been prepared under thehistorical cost basis, as modified by therevaluation of investments, and in accordancewith the SORP for UK Authorised Funds issuedby the IMA in May 2014, which supersedes theSORP issued by the IMA in October 2010 and inaccordance with United Kingdom GenerallyAccepted Accounting Practice, includingFinancial Reporting Standard 102 (The Financialreporting Standard Applicable in the UK andRepublic of Ireland (FRS 102)). Both of whichbecame effective for the accounting periodscommencing on or after 1 January 2015. Therewere no adjustments arising on transition of theprior year balances to FRS102.

The Schroder UK Real Estate Fund Feeder Trust(the ‘Trust’) was authorised on 31 July 2012. TheTrust is a non-UCITS Fund.

The principle accounting policies, which havebeen applied consistently throughout the year areset out below.

(b) Basis of valuation of investments

Investments are valued at the NAV price asprovided by the relevant managers, inaccordance with industry practice and thestatement of recommended practice (SORP). TheTrust invests solely in the Schroder UK RealEstate Fund.

(c) Recognition of revenue

Revenue from shares is recognised when thedividend from investments is declared.

(d) Expenses

Expenses of the Trust are borne in full by theSchroder UK Real Estate Fund.

(e) Cash flow statement

In accordance with the requirements of FRS 102(Revised) and the IMA SORP 2014, a cash flowstatement has been provided.

(f) Taxation

Provision is made for taxation at current rates onthe excess of investment revenue over allowableexpenses, with relief for overseas taxation whereappropriate.

Income received from investment in the SchroderUK Real Estate Fund is taxed depending on theincome stream. Property Income being taxed at20%, interest income being taxed at 20% anddividend income at 0%.

Deferred tax is provided on all timing differencesthat have originated but not reversed by thebalance sheet date.

Deferred tax is not recognised on permanentdifferences.

Deferred tax assets are recognised only to theextent that it is more likely than not that there willbe taxable profits from which the future reversalof the underlying timing differences can bededucted.

(g) Change in accounting estimate

The investment in the Schroder UK Real EstateFund is held at fair value, which is an accountingestimate. Following guidance issued by the IMA,the fair value has been calculated using the NAVas at 31 March 2016 rather than the cancellationprice. This has increased the value of the Feeder,and the unrealised capital gains recognised in theyear, by £2.348 million.

2. Distribution PoliciesBasis of distribution

Revenue is generated by the Trust’s investmentsduring each accounting year. Where revenueexceeds expenses, the net income of the Trust isavailable to be distributed to unitholders. Allincome is distributed, at unit class level, to theunitholders in accordance with the Trust’sprospectus on a monthly basis. Incomeequalisation will not apply to the Fund.

FINANCIAL STATEMENTSNotes to the Financial Statements



3. Risk Management Policies(a) Market risk and valuations of property

The exposure to market risk arising from theprevailing general economic conditions and marketsentiment, may affect the balance sheet and totalreturn of the Trust. Valuations are subject touncertainty and there is no assurance that theestimates resulting from the valuation process willreflect the actual sales price even where a saleoccurs shortly after the valuation date.

Market risk is reduced through holdinginvestments that have a geographically diversifiedportfolio that invests across various propertysectors. The Manager adheres to the investmentguidelines and investment and borrowing powersestablished in the Prospectus, scheme particularsand in the rules governing the operation of openended investment companies.

(b) Credit and liquidity risk

The Trust can be exposed to credit risk arisingfrom the possibility that another party fails to fulfilits obligations and liquidity risk surrounding itscapacity to meet its liabilities.

The Manager’s policy for managing this risk is to:

1. Operate a strict unit redemption policy suchthat unitholders may only serve notice toredeem at the end of each quarter.

2. Raise sufficient cash resources within theTrust to finance a limited number ofredemptions.

3. Review the need for and maintain asappropriate a borrowing facility.

4. Reserve the right to defer payment ofredemptions.

(c) Currency risk

All financial assets and financial liabilities of the Trustare in Sterling, thus the Trust has no exposure tocurrency risk at the balance sheet date.

(d) Interest rate risk

The Trust has the ability to access debt facilities,but did not have any debt facilities during the year.

There were no changes to the risk managementpolicies during the year to 31 March 2016.

Notes to the Financial Statements continued

4. Portfolio transaction costs

There were nil transaction costs during the year to 31 March 2016 (2015: nil).

For the For the year ended year ended 31 March 31 March 2016 2015 £’000 £’000

Analysis of total purchase costs.................................................................................................................................................................................................................................................................................................................................................................

Purchase in year before transaction costs 79,674 6,183

Gross purchase total 79,674 6,183

For the For the year ended year ended 31 March 31 March 2016 2015 £’000 £’000

Analysis of total sales costs.................................................................................................................................................................................................................................................................................................................................................................

Gross sales in year before transaction costs – –

Total sales net of transaction costs – –

As at the balance sheet date the average portfolio dealing spread was 6.13% (2015: 5.99%)



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5. Net capital gains Year to Year to 31 March 31 March 2016 2015 £’000 £’000

Gain in the year on Investment 4,658 7,217

Net capital gains 4,658 7,217

All gains during the year to 31 March 2016 are unrealised (2015: all gains unrealised).

6. Revenue Year to Year to 31 March 31 March 2016 2015 £’000 £’000

Franked investment income 523 229.................................................................................................................................................................................................................................................................................................................................................................

Unfranked investment income 3,290 2,585

Total revenue 3,813 2,814

7. Finance Costs: Distributions Year to Year to 31 March 31 March 2016 2015 £’000 £’000

April 190 187.................................................................................................................................................................................................................................................................................................................................................................

May 181 198.................................................................................................................................................................................................................................................................................................................................................................

June 182 196.................................................................................................................................................................................................................................................................................................................................................................

July 223 183.................................................................................................................................................................................................................................................................................................................................................................

August 227 183.................................................................................................................................................................................................................................................................................................................................................................

September 211 186.................................................................................................................................................................................................................................................................................................................................................................

October 278 186.................................................................................................................................................................................................................................................................................................................................................................

November 267 187.................................................................................................................................................................................................................................................................................................................................................................

December 325 183.................................................................................................................................................................................................................................................................................................................................................................

January 357 194.................................................................................................................................................................................................................................................................................................................................................................

February 380 209.................................................................................................................................................................................................................................................................................................................................................................

March 334 205

Gross distribution for the year 3,155 2,297




8. Debtors As at As at 31 March 31 March 2016 2015 £’000 £’000

Distributions due from investment 874 242

Total debtors 874 242

9. Cash and bank balances As at As at 31 March 31 March 2016 2015 £’000 £’000

Cash and bank balances 115 477

Total cash and bank balances 115 477

10. Creditors As at As at 31 March 31 March 2016 2015 £’000 £’000

Taxes payable 658 516

Total creditors 658 516

11. Contingent liabilities and commitments

There were no contingent liabilities or commitments as at 31 March 2016 (2015: nil).


(a) Analysis of charge in year Year to Year to 31 March 31 March 2016 2015 £’000 £’000

Current tax charge (note 12b) 658 517.................................................................................................................................................................................................................................................................................................................................................................

(b) Factors affecting the current tax charge for the yearThe tax assessed for the year is the standard rate of corporation tax for authorised unit trusts (AUT) (20%). The differences areexplained below:

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Net revenue before taxation 3,813 2,814.................................................................................................................................................................................................................................................................................................................................................................

Corporation tax at 20% 763 563.................................................................................................................................................................................................................................................................................................................................................................

Effects of:.................................................................................................................................................................................................................................................................................................................................................................

Revenue not subject to taxation (105) (46).................................................................................................................................................................................................................................................................................................................................................................

Tax deductible interest distributions – –.................................................................................................................................................................................................................................................................................................................................................................

Current corporation tax charge for the year (note 12a) 658 517.................................................................................................................................................................................................................................................................................................................................................................

12. Taxation

The Trust is exempt from United Kingdom tax oncapital gains realised on the disposal of theirinvestment in the Schroder UK Real Estate Fund.

The Trust will pay all distributable income asdividend distributions net of corporation tax at20%.



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(c) Provision for deferred tax

There was no provision required for deferred taxat the balance sheet date.


14. Reconciliation of movement in net cash Year to Year to 31 March 31 March 2016 2015 £’000 £’000

Cash and cash equivalents.................................................................................................................................................................................................................................................................................................................................................................

Opening cash 477 255.................................................................................................................................................................................................................................................................................................................................................................

Cashflows (362) 222

As at 31 March 115 477

15. Reconciliation of net revenue before taxation to net cash inflow fromoperating activities Year to Year to 31 March 31 March 2016 2015 £’000 £’000

Net revenue before taxation 3,813 2,814.................................................................................................................................................................................................................................................................................................................................................................

(Increase)/decrease in debtors (632) 15

Net cash inflow from operating activities 3,181 2,799

16. Financial instruments

The primary financial instruments held by theTrust at 31 March 2016 were property relatedinvestments, cash, short term assets andliabilities to be settled in cash. The Trust did nothold, and was not a counterparty to, anyderivative instruments either during the year or atthe year end.

The policies applied to the management of thefinancial instruments are set out in note 3. Thefair values of the Trust’s assets and liabilities arerepresented by the values shown in the balancesheet on page 11. There is no material differencebetween the value of the financial assets andliabilities, as shown in the balance sheet, andtheir fair value.

13. Expenses

All fees and expenses of the Trust will be paid bythe Schroder UK Real Estate Fund to ensureparity of Unit prices in the Funds and shareprices of the relevant classes of the Schroder UKReal Estate Fund. As a result of this arrangement,Unitholders will bear their proportionate share ofthe fees and expenses of the Trust through theirindirect investment in the Schroder UK RealEstate Fund. No charges or expenses for their

establishment and ongoing administration will bepayable by the Trust. In the event that thisarrangement is changed, the applicable fees willbe set out in this section of the Prospectus.

The audit fee for the Fund for the year to31 March 2016 is £18,430 (2015: £15,950)which is borne in full by the Schroder UK RealEstate Fund.



17. Fair Value measurement

The fair values of financial assets and liabilitiesare not materially different from their carryingvalues in the financial statements.

The fair value hierarchy levels are as follows:

Level 1 – quoted prices (unadjusted) in activemarkets for identical assets and liabilities

Level 2 – inputs other than quoted pricesincluded within level 1 that are observable for the

asset or liability, either directly (i.e. as prices) orindirectly (i.e. derived from prices); and

Level 3 – inputs for the assets or liability that arenot based on observable market data(unobservable inputs).

The only financial asset of the feeder is theinvestment in the Schroder UK Real Estate Fund(£157.5m) which has been classified as level 2,as it has been valued at the NAV provided by themanager.


18. Related parties

(a) Fees receivable by the Trustee

The Trustee acts as the depositary to theSchroder UK Real Estate Fund. It is not making aseparate charge in relation to the Trust.

(b) Fees receivable by the Registrar

The Registrar acts as the registrar to theSchroder UK Real Estate Fund. It is not making aseparate charge in relation to the Trust.

(c) Fees receivable by the Authorised FundManager

The Manager’s annual fees (and any VAT) arecharged within its authorised corporate director

fee in the Schroder UK Real Estate Fund (whichis based on the Net Asset Value of the SchroderUK Real Estate Fund); there is no additionalmanagement fee charged within the Trust.

(d) Schroder UK Real Estate Fund

The Manager of the Schroder UK Real EstateFund Feeder Trust, which invests solely into theSchroder UK Real Estate Fund, is part of thesame group as the Authorised Corporate Directorof the Schroder UK Real Estate Fund. During theyear to 31 March 2016, the Schroder UK RealEstate Fund Feeder Trust was paid grossdistributions totalling £3.8 million (2015:£2.8 million).



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Monthly distributions payable for the year to 31 March 2016 in pence per unit. There is a single netunit class within the Trust for the year to 31 March 2016.

Year to Year to 31 March 31 March 2016 2015

Net Income Shares.................................................................................................................................................................................................................................................................................................................................................................

Final distribution payable 117.857085 123.211375

Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14


Final distribution payable 10.809960 10.751230 10.597993 9.942843 9.845156 9.973398

Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15



Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15



Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16



FINANCIAL STATEMENTSDistribution Table



FINANCIAL STATEMENTSUnaudited Additional Information

2016 2015 2014

Change in net assets per unit.................................................................................................................................................................................................................................................................................................................................................................

Opening net asset value per unit £39.26 £34.68 £31.99.................................................................................................................................................................................................................................................................................................................................................................

Return before operating charges* £4.18 £5.81 £3.88.................................................................................................................................................................................................................................................................................................................................................................

Operating charges £0.00 £0.00 £0.00.................................................................................................................................................................................................................................................................................................................................................................

Return after operating charges* £4.18 £5.81 £3.88.................................................................................................................................................................................................................................................................................................................................................................

Distribution on income units (£1.18) (£1.23) (£1.19).................................................................................................................................................................................................................................................................................................................................................................

Closing net asset value per unit £42.26 £39.26 £34.68.................................................................................................................................................................................................................................................................................................................................................................

Retained distributions on accumulation units.................................................................................................................................................................................................................................................................................................................................................................

* after direct transaction costs of (£’000)

£0.00 £0.00 £0.00

Performance.................................................................................................................................................................................................................................................................................................................................................................

Return after charges (1) 10.6% 16.8% 12.1%.................................................................................................................................................................................................................................................................................................................................................................

Other Information.................................................................................................................................................................................................................................................................................................................................................................

Closing net asset value (£’000) £157,497,777 £74,263,272 £59,765,894.................................................................................................................................................................................................................................................................................................................................................................

Closing number of units 3,726,875.93 1,891,575.96 1,723,353.36.................................................................................................................................................................................................................................................................................................................................................................

Operating charges 0.00% 0.00% 0.00%.................................................................................................................................................................................................................................................................................................................................................................

Direct transaction costs 0.00% 0.00% 0.00%.................................................................................................................................................................................................................................................................................................................................................................

Prices.................................................................................................................................................................................................................................................................................................................................................................

Highest unit price £42.51 £39.26 £34.68.................................................................................................................................................................................................................................................................................................................................................................

Lowest unit price £39.59 £34.90 £32.36.................................................................................................................................................................................................................................................................................................................................................................

(1) performance return is different compared to the Schroder UK Real Estate Fund due to the impact of the tax deducted inthe Schroder UK Real Estate Feeder Fund

General Information

Schroder UK Real Estate Fund Feeder Trust (“theTrust”) is an authorised unit trust in umbrella formand authorised by the FCA with effect from31 July 2012. The Trust has an unlimitedduration. Unitholders are not liable for the debtsof the Trust.

Accordingly, the information in this document isdirected at eligible counterparties, authorisedpersons, professional clients, existing investors inthe Trust and clients and newly accepted clientsof the Schroder Group, where reasonable stepshave been taken to ensure that investment in theTrust is suitable. This material should not berelied upon by persons of any other description.

In any case, a recipient who is in any doubtabout investment in the Trust should consult anauthorised person who specialises in investmentsof this nature.

The Trust’s past performance is not a guide tothe future. The Trust invests via the Schroder UKReal Estate Fund in real property, the value ofwhich is generally a matter of a valuer’s opinion.There is no recognised market for units in theTrust and an investment is not readily realisable. Itmay be difficult to trade in the units or to sellthem at a reasonable price. The price of unitsand the income from them may fluctuateupwards or downwards and cannot beguaranteed.



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FINANCIAL STATEMENTSUnaudited Additional Information continued

Socially Responsible Investment andSustainability

A full copy of the Schroder Real Estate policy onResponsible Real Estate Investment is availableon request.

Purchase of Units

The dealing day for subscription for units is thefirst business day of each month. Applicationforms, top-up forms and cleared funds must bereceived by the Registrar before the cut-off pointfor subscriptions. Forms received after this timewill be carried forward to the following dealingday for subscription. Applicants may amend orwithdraw an application form or a top-up form atany time up until the cut-off point forsubscriptions. Thereafter, applicants have no rightto amend or withdraw their application.

Settlement is due by midday on the business daybefore the relevant dealing day for subscription.Applicants are required to transfer funds viaCHAPS or another form of electronic paymentunless the Registrar agrees to an alternativemethod of payment.

Redemption of Units

Redemption forms must be received by theRegistrar before the relevant cut-off point forredemptions, that is midday on the date fallingthree months prior to the business day before therelevant dealing day for redemption. Validinstructions will be processed by the Registrar atthe bid price on the relevant dealing day forredemption (that falls three months after therelevant cut-off point for redemption), except inthe case where dealing has been suspended asset out in section 2.19 of the Prospectus.

Manager Contacts

For general information and queries on secondarymarket availability, please contact:

Olivia PemberProduct Manager [email protected]+44 (0)20 7658 3552

James LassFund Manager [email protected]+44 (0)20 7658 3980

For valuations, to place trades, tax reclaims,dividend/distribution information, please contactthe Registrar:

Northern Trust Global Services Ltd.Schroder Unit Trusts Limited – Schroder UK Real Estate Fund PO BOX 3733 Wootton Bassett Swindon SN4 4BGTel: +44 (0) 870 870 8059Fax: +44 (0) 20 7643 3892Email: [email protected]

Distributions

The net income of the Trust, after deduction of allexpenses and liabilities (actual, estimated orcontingent) of the Trust including any deductionsin respect of taxes, is distributed to unitholders inproportion to the number of units held by them.Distributions are calculated on a monthly basis,with the distributions paid to unitholders on thelast working day of the following month.


Authorised Fund ManagerSchroder Unit Trusts Limited 31 Gresham StreetLondon EC2V 7QA

Schroder Unit Trusts Limited is authorised and regulated by the FCA.

RegistrarNorthern Trust Global Services Limited 50 Bank StreetCanary Wharf E14 5NT

TrusteeNational Westminster Bank plc 135 BishopsgateLondon EC2M 3UR

Legal Adviser Eversheds LLP One Wood Street LondonEC2V 7WS

Independent Auditors PricewaterhouseCoopers LLP 7 More London Riverside LondonSE1 2RT

Key Service Providers





www.schroders.com/sref

Documents

S UK Ra Ea F F T ˘ A - · PDF fileC S UK Ra Ea F F T ˘ A 31 2016. Report and Audited Financial Statements for the year ended 31 March 2016 1 OVERVIEW Trust Information* 2 ... 2016