01 Cover & Aggregate_ASC311220 09-Apr-21 10:56 AM Page 1
Aberdeen Standard Capital Offshore Strategy Fund Limited Annual Report and Audited Financial Statements for the year ended 31 December 2020 01 Cover & Aggregate_ASC311220 09-Apr-21 10:56 AM Page 2
Aberdeen Standard Capital Offshore Strategy Fund Limited Annual Report and Audited Financial Statements
Table of contents Notice of Annual General Meeting 3 Management and Administration 4
Annual Report Chairman's Statement 6 Report of the Custodian 8 Report of the Directors 9 Statement of Directors' Responsibilities 15 Independent Auditor’s Report to the members of Aberdeen Standard Capital Offshore Strategy Fund Limited 16 Aggregated Financial Statements 19 Notes to the Aggregated Financial Statements 21
Bridge Class 31 Fund Report 31 Statistics 33 Portfolio Statement 35 Financial Statements 39 Notes to the Financial Statements 41 Distribution Statements 49
Global Equity Class 50 Fund Report 50 Statistics 52 Portfolio Statement 54 Financial Statements 56 Notes to the Financial Statements 58 Distribution Statements 65
Global Fixed Interest Class 66 Fund Report 66 Statistics 69 Portfolio Statement 71 Financial Statements 96 Notes to the Financial Statements 98 Distribution Statements 106
Income Class 108 Fund Report 108 Statistics 110 Portfolio Statement 112 Financial Statements 116 Notes to the Financial Statements 118 Distribution Statements 126
Sterling Fixed Interest Class 128 Fund Report 128 Statistics 130 Portfolio Statement 132 Financial Statements 141 Notes to the Financial Statements 143 Distribution Statements 151
UK Equity Class 153 Fund Report 153 Statistics 155 Portfolio Statement 157 Financial Statements 160 Notes to the Financial Statements 162 Distribution Statements 168
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Aberdeen Standard Capital Offshore Strategy Fund Limited Annual Report and Audited Financial Statements
Notice of Annual General Meeting
Notice is hereby given that the Annual General Meeting of the By Order of the Board Aberdeen Standard Capital Offshore Strategy Fund Limited Aberdeen Standard Capital (CI) Limited Company Secretary (‘‘the Company’’) will be held on 27 May 2021 at IFC 1, The 1st Floor, Sir Walter Raleigh House Esplanade, St Helier, Jersey, Channel Islands, at 3 p.m. 48-50 Esplanade for the transaction of the following business: St Helier, Jersey 1 To receive and adopt the Financial Statements of the JE2 3QB Company for the year ended 31 December 2020 and the 8 April 2021 Directors' and Auditor’s reports thereon. In recognition of the current UK Government guidelines which 2 To re-appoint KPMG Channel Islands Limited as Auditor of have been applied in response to the Covid-19 pandemic, we the Company. regret that shareholders may not be permitted to attend the 3 To authorise the Directors to fix the Auditor’s meeting in person and we recommend all shareholders to vote remuneration. by proxy.
4. To re-appoint Andrew Curtin as a Director of the Company. Notes:
5. To re-appoint Timothy Coote as a Director of the Company. 1 A Shareholder entitled to attend and vote at the Meeting convened by this Notice is entitled to appoint one or more 6. To re-appoint Lynn Scott as a Director of the Company. proxies to attend and (on a poll) to vote instead of him/her. 7. To appoint Aaron Le Cornu as a Director of the Company. A proxy need not also be a member of the Company.
2 A form of proxy is enclosed. The Chairman of the Meeting would be willing to act as your proxy if desired. Please sign and complete the form and return, to reach the office of the Secretary not later than 24 hours before the time fixed for the Meeting.
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Aberdeen Standard Capital Offshore Strategy Fund Limited Annual Report and Audited Financial Statements
Management and Administration
Directors of the Company Andrew Curtin Martin Magee (Chairman) (Senior Independent Director) Andrew Curtin is an independent director of a range of Irish Finance Director of: and Jersey regulated financial service providers including other Jersey Electricity plc, The Powerhouse fund companies sponsored by Aberdeen Standard Queens Road, St Helier, Jersey, JE4 8NY Investments. He has over 25 years experience as a corporate Martin Magee joined the Board of Jersey Electricity plc, an LSE banker and capital markets professional in both developed listed company, as Finance Director in May 2002. He moved and emerging markets. From 2009 to 2012 he was Managing from Scottish Power plc, after nine years in a variety of senior Director of ANP International Finance, a specialist proprietary financial roles. He previously worked for nine years with Stakis liquidity and asset manager. He has also held various senior plc (now part of the Hilton Hotels Group). positions with Citibank, Anglo Irish Bank and the Saudi Industrial Development Fund. In addition, he is a non-executive Director of Jersey Post International Limited and also a Director of the Channel Andrew graduated from University College Dublin with a BA Islands Electricity Grid Limited. He was also a member of the (Hons) in Economics and a Masters in International Jersey Public Accounts Committee from 2006 to 2011. Development. He is also a Chartered Director.
Martin is a member of the Institute of Chartered Accountants Appointed to the Board on 10 May 2016. of Scotland having qualified in 1984. Aaron Le Cornu Appointed to the Board on 18 May 2011. (Independent Director) Aaron Le Cornu is the founder of A2Z Consulting Ltd and is an Timothy Coote independent Director, with 30 years experience in financial Tim Coote is the Operations Director for Aberdeen Standard services. Aaron held a number of senior and Board positions Capital International Limited in Jersey, which has a license to within HSBC, latterly as Deputy CEO of HSBC International. conduct Investment and Fund Service business. He joined During his 10 years with HSBC, he was involved in several Aberdeen in 2005. acquisitions including the purchase of Marks and Spencer He has thirty-nine years experience in Corporate Banking, Money. Investment and Fund Management. Prior to joining Aberdeen, Aaron was the Chief Financial Officer and Chief Operating Tim spent seven years as Operations Director for Insinger de Officer for the law firm, Ogier, and was Chief Financial Officer Beaufort International Limited (formerly Matheson Investment of the team which completed a management buy out of the International Limited). Previous to this, Tim held a senior Ogier fiduciary business (subsequently renamed Elian) in 2014. position with Citibank in Jersey, latterly supporting the Aaron was also the Chief Operating Officer for GLI Finance and business in Dublin. was a Board Director of its Fintech Ventures subsidiary. Appointed to the Board on 11 September 2018. Aaron is a Chartered Accountant having qualified with Arthur Lynn Scott Andersen in London. He has a First Class Honours degree in Lynn Scott is the Investment Director and Head of Product European Management Science from Swansea University. Management of Aberdeen Standard Investments. Lynn was Appointed to the Board on 22 February 2021. previously Head of Produ ct Development for non UCITS structures and Head of Product Management and Investment Director (Technical) for Standard Life Investments. She joined Standard Life Investments in 2006. Prior to being employed by Standard Life Investments, she was employed by Standard Life Assurance Limited in various actuarial roles between 1994 and 2006.
She has a BSc (Hons) in Actuarial Mathematics and Statistics and has been a Fellow of the Faculty of Actuaries (FFA) since 1997.
Lynn is also a Director of SLTM Limited and of the Manager, Aberdeen Standard Capital (CI) Limited.
Appointed to the Board on 26 January 2015.
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Aberdeen Standard Capital Offshore Strategy Fund Limited Annual Report and Audited Financial Statements
Management and Administration (cont.)
Registered Office of the Company Custodian IFC 1 BNP Paribas Depositary The Esplanade Services (Jersey) Limited St Helier, Jersey, JE1 4BP IFC 1 The Esplanade Aberdeen Standard Capital St Helier, Jersey, JE1 4BP Offshore Strategy Fund Limited is regulated by Regulated by the Jersey Financial Services Commission. the Jersey Financial Services Commission. Compliance Officer and Money Laundering Compliance Manager, Secretary and Registrar Officer Aberdeen Standard Capital (CI) Limited Rachael Chinery (appointed 31 March 2021) 1st Floor, Sir Walter Raleigh House, Philip Gartside (resigned 31 March 2021) 48-50 Esplanade, St Helier, Jersey, Money Laundering Reporting Officer JE2 3QB Rachael Chinery (appointed 31 March 2021) Ann-Marie Pereira (resigned 31 March 2021) Investment Helpline Jersey (01534) 709130 Investment Manager Aberdeen Standard Capital Limited Fax Jersey (01534) 849304 1 George Street Registered in Jersey No. 5769 Edinburgh, EH2 2LL Regulated by the Jersey Financial Services Commission. Registered in Scotland No. SC317950 Registered office as address above. Investor contact details Authorised and regulated by the Financial Conduct Authority. Aberdeen Standard Capital (CI) Limited BNP Paribas Securities Services S.C.A., Principal Bankers to the Company Jersey Branch BNP Paribas Securities Services S.C.A., IFC 1 Jersey Branch The Esplanade IFC 1 St Helier, Jersey, JE1 4BP The Esplanade St Helier, Jersey, JE1 4BP Administrator Regulated by the Jersey Financial Services Commission. The Manager has also appointed the Administrator as Secretary and Registrar to the Company. Legal Advisers Mourant Ozannes BNP Paribas Securities Services S.C.A., 22 Grenville Street Jersey Branch St Helier, Jersey, JE4 8PX IFC 1 The Esplanade Auditor St Helier, Jersey, JE1 4BP KPMG Channel Islands Limited Regulated by the Jersey Financial Services Commission. 37 Esplanade, St Helier Jersey, JE4 8WQ Directors of the Manager Kevin Charles Mundy (Chairman) Fund Accountants Andrew Ian Wignall BNY Mellon Fund Services (Ireland) Designated Activity Gary Clark Company Lynn Scott One Dockland Central Barry Jon Hardisty (appointed 25 January 2021) Guild Street IFSC Dublin 1, Ireland D01 E4X0
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Aberdeen Standard Capital Offshore Strategy Fund Limited Annual Report and Audited Financial Statements
Chairman’s Statement
Economic and Market Overview Outlook Global equity markets endured a turbulent 12 months in 2020. Stock markets continue to look for positive news which Stocks trended upwards from the beginning of the year, driven suggests that lock downs can be relaxed, permitting pent up by an easing of US-China trade tensions and lower interest- consumer demand to be released and improving economic rate expectations. However, the Covid-19 outbreak put an end growth. Low interest rates are supportive for equities and to this positive trend. Market sentiment swiftly reversed as the continued fiscal action should provide extra support. Spikes in pandemic spread across the globe. As a result, global equities market volatility are likely, with the potential sources being suffered losses not seen since the 2008 global financial crisis. Covid-19 infection news flow, vaccine development setbacks, weak corporate earnings or policy mistakes. In response to the pandemic, countries imposed movement and travel restrictions on a near-global scale to contain the The coronavirus pandemic, economic factors and politics pandemic’s spread. This led to governments and central banks continue to dominate fixed income markets too. The pushing through massive fiscal stimulus and quantitative- continued roll out of Covid-19 vaccination programmes with easing programmes. As the effects of these measures took an expected return to strong economic growth is a major hold and economies began to emerge from lockdowns, positive, especially for corporate bonds. Attention, however, markets gradually recovered. In September and October, with may turn to how governments will continue to fund the investors concerned about an uptick in Covid-19 cases and various economic support packages and this will bring added further lockdown restrictions were imposed in Europe at the uncertainty to these bond markets. end of October, markets moderated somewhat. Investor Fund reports sentiment was boosted by positive results from several Covid- The Fund Reports, included in the Individual Financial 19 vaccine trials leading to the roll out of vaccination Statements, provide information on the performance of each programmes, Joe Biden winning the US presidential election Class Fund and portfolio activity during the year. and the passing of the US Covid-19 fiscal relief package, all of which helped to drive equity markets higher toward the end of Board Changes the year. I joined the Board in 2011, and became Chair in 2014, and having reached a tenure of 9 years during the 2020 financial In fixed income, government bonds performed well over the year it made sense, from a governance perspective, to retire at period. Early on, improving trade relations between the US the forthcoming AGM, post the approval of these Financial and China were the main influences. Latterly, the Covid-19 Statements. I would like to thank all the Directors who have pandemic and associated shutdowns of economic activity worked with me during that time, as well as all the other heightened fears of a deep recession. This ‘risk-off’ service providers who ably support the Fund. I will be handing environment boosted government bond prices as investors over the reins to Aaron Le Cornu and I am confident that his fled to their perceived safety. Towards the end of the period, experience will be of great benefit. rising optimism about a Covid-19 vaccine and easing political uncertainty led to a drop in government bond prices. Corporate bonds initially sold off over concerns of the effect on corporate issuers. However, stimulus measures – including corporate bond purchases by central banks – helped bolster the market
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Aberdeen Standard Capital Offshore Strategy Fund Limited Annual Report and Audited Financial Statements
Chairman’s Statement (cont.)
Other Matters Aberdeen Standard Investments (ASI’s) conducts periodic Aberdeen Standard Investments and Aberdeen Standard reviews of the following: Capital are actively working in the interests of our clients in Market liquidity across asset classes and Funds; relation to the departure of the UK from the EU. The Financial Conduct Authority (FCA) announced: Asset class bid-offer spread monitoring;
On 1 January 2021, several Memoranda of Understanding Review of Fund level dilution rate appropriateness; (MoUs) came into effect between the FCA and European authorities, covering cooperation and exchange of Review of daily subscriptions / redemptions to anticipate; information. Any requirement to gate or defer redemptions;
The full announcement is available here Any requirement to suspend a Fund; https://www.fca.org.uk/news/statements/mous-european- authorities-securities-insurance-pensions-banking Any fair value price adjustments at a Fund level.
The priority of Aberdeen Standard Investments and Aberdeen Aberdeen Standard Investments has also evaluated, and will Standard is to protect clients and any changes in the future will continue to evaluate, the operational resilience of all service be communicated through the normal channels. There are no providers. changes to report for the year ended 31 December 2020. These are regularly presented to the board in making Significant Events decisions on behalf of the company. Investors will be aware of the Covid-19 outbreak and that the As at 8 April 2021, no Funds have been suspended, nor have outlook for many capital markets has been volatile since 31 any redemptions been gated or deferred. December 2020, the year end of Aberdeen Standard Capital The latest prices are available on the Aberdeen Standard Offshore Strategy Fund. Whilst the impact of Covid-19 was Capital website at: reflected in fund operations and global markets at year end, the continued efforts to mitigate the pandemic through global www.aberdeenstandardcapital.com lockdowns and government interventions have resulted in I hope that you find this report informative and I thank you prolonged market uncertainty. As a result, the NAVs of certain for investing with us. Funds have fluctuated significantly since the year end. The Post Statement of Financial Position Events provides a M Magee quantification of this fluctuation in NAV. Chairman
8 April 2021
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Aberdeen Standard Capital Offshore Strategy Fund Limited Annual Report and Audited Financial Statements
Report of the Custodian
To the Shareholders of Aberdeen Standard Capital Offshore Strategy Fund Limited It is the opinion of BNP Paribas Depositary Services (Jersey) Limited in respect of the year ended 31 December 2020, during which time we acted as Custodian to the Company, to the best of our information, knowledge and belief, that in all material respects, the Directors and the Manager have managed the Company in that year:
a) In accordance with the limitations imposed on the investment and borrowing powers of the Company and the Custodian by the Memorandum and Articles of Association, by Prospectuses and by all Orders for the time being in force under Article 10 of the Collective Investment Funds (Recognized Funds) (Rules) (Jersey) Order 2003; and
b) Otherwise in accordance with the provisions of the Articles of Association, and the Management Agreement and those Orders.
BNP Paribas Depositary Services (Jersey) Limited
8 April 2021
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Aberdeen Standard Capital Offshore Strategy Fund Limited Annual Report and Audited Financial Statements
Report of the Directors
The Directors submit their Annual Report and Audited The Company is a recognised scheme in the United Kingdom Financial Statements for Aberdeen Standard Capital Offshore for the purposes of the Financial Services and Markets Act Strategy Fund Limited (the "Company") for the year ended 31 2000 (FSMA) by virtue of s270 of FSMA. December 2020. The Company was incorporated in Jersey on 4 Holdings in other Fund Classes of the Company April 1996 with registration number 64833. On 2 July 1996 the As at 31 December 2020 no Fund Class held shares in any Company obtained Recognized Fund status under the other Fund Class of the Company. Collective Investment Funds (Jersey) Law 1988 and under the United Kingdom Financial Services Act 1986. Alternative Investment Fund Managers ('AIFM') Directive On 17 July 2014 an amended and restated Management The Company is an open-ended investment company whose Agreement was signed by the Company in anticipation of the shares are divided into a number of Fund Classes. The potential impact of Directive 2011/61/EU (AIFMD) on the Company is a recognized fund in the category of an umbrella marketing of Participating Shares in the Company to fund as defined in the Collective Investment Funds professional investors in the European Economic Area and in (Recognized Funds) (Rules) (Jersey) Order 2003. contemplation of the Manager having primary responsibility As at 31 December 2020 the Company has six Fund Classes all for the portfolio management and risk management activities constituting Securities Funds in which investors may subscribe of the Company as a non-EU AIFM. for shares, as follows: In accordance with the AIFM Directive, information in relation Class Inception date to the Company’s leverage and the remuneration of the Bridge 18 October 1999 Company’s AIFM, Aberdeen Standard Capital (CI) Limited, is Global Equity 6 April 1998 required to be made available to investors and is provided in the Annual Report of the Company each year. Global Fixed Interest 22 April 2004 Income 9 March 2015 In accordance with the Directive, the AIFM’s remuneration Sterling Fixed Interest 4 February 2000 policy is available from Aberdeen Standard Capital (CI) Limited on request. Aberdeen Standard Capital (CI) Limited has a UK Equity 29 May 1997 board of four non-executive directors and no direct staff. The Each Fund Class has two classes of shares in issue; these being directors of Aberdeen Standard Capital (CI) Limited are the Z and Retail Participating Shares. The Z Participating Shares individuals whose activities have a material impact on the risk are only available to those investors who are clients of the profile of the AIFM and they discharge their duties via regular Investment Manager or other relevant Group entities. The reporting and review at board meetings. Investment principal difference between Z Shares and Retail Shares is that Management functions are delegated to Aberdeen Standard the Z Shares are not subject to the periodic charge of the Capital Limited via an Investment Management Agreement. Manager under the relevant Fund Class rules because the The directors of Aberdeen Standard Capital (CI) Limited receive clients have already agreed to pay a fee pursuant to their fixed remuneration in the form of the directors’ fees, which specific fee arrangements with the Investment Manager or totalled £35,000 for the year ended 31 December 2020 (2019: other relevant Group entity. £35,000).
The Directors may create additional Fund Classes by adopting The Company’s actual leverage levels at 31 December 2020 are fund rules approved by the Custodian and specifying the shown below: name, investment objective, base currency, initial price, and Class Gross Commitment other relevant provisions for a class fund not contained in the Bridge 97.50% 100.60% Articles of Association of the Company. Global Equity 99.08% 99.08% Each Fund Class owns a pool of assets to which the proceeds Global Fixed Interest 104.12% 141.13% of issue of shares of the Fund Class and the revenue arising Income 94.22% 96.73% from the investment of those proceeds together with related Sterling Fixed Interest 99.64% 107.09% expenses are applied. UK Equity 98.94% 98.94% Accordingly, separate accounting records are maintained and separate Statements of Financial Position, Statements of Total Leverage limits for the year were 300% on the gross method Return and Statements of Movements in Shareholders' Funds and 200% on the commitment method. This was consistent for have been prepared for each Fund Class. all funds, there were no changes in the year.
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Aberdeen Standard Capital Offshore Strategy Fund Limited Annual Report and Audited Financial Statements
Report of the Directors (cont.)
Alternative Investment Fund Managers ('AIFM') Directive Aberdeen Standard Capital (Offshore) Income Class ("Income (cont.) Class"): For the purposes of the AIFM Directive, leverage is any method to provide investors with income and the potential for growth which increases the Company’s exposure, including the in the underlying invested capital. This Class will be invested borrowing of cash and the use of derivatives. It is expressed as primarily in a portfolio of international equities (including a percentage of the Company’s exposure to its net asset value United Kingdom equities) and fixed interest securities. The and is calculated on both a gross and commitment method. Class may also hold other assets including cash, derivatives Under the gross method, exposure represents the sum of the (for efficient portfolio management purposes), collective Company’s positions after deduction of cash balances, without investment scheme investments, warrants, deposits and taking account of any hedging or netting arrangements. Under money market instruments as deemed appropriate to meet the commitment method, exposure is calculated without the the investment objective. deduction of cash balances and after certain hedging and Aberdeen Standard Capital (Offshore) Sterling Fixed Interest netting positions are offset against each other. The leverage Class ("Sterling Fixed Interest Class"): limits are set by the AIFM and approved by the Board and are to provide investors with a return of both capital growth and in line with the maximum leverage levels permitted in the income. This Class will be primarily invested in a portfolio of Company’s Articles of Association. The AIFM is also required to sterling denominated fixed interest securities. The Investment comply with the gearing parameters set by the Board in Manager may also elect to hold cash from time to time and up relation to borrowings. to a maximum of 20% of the Class may also consist of euro The Prospectus and the Fund Rules and dollar denominated fixed interest securities. All non- Changes have been made to the Prospectus where deemed sterling assets will be hedged back to sterling. necessary by the Company and the Manager and which also Aberdeen Standard Capital (Offshore) UK Equity Class ("UK do not materially prejudice any existing shareholders of the Equity Class"): Company or potential shareholders. to provide investors with long-term capital growth together Updated copies of the Prospectus dated 1 April 2021 are with an element of income. This Class will be invested available online at https://www.aberdeenstandardcapital.com/ primarily in a diversified range of UK equity investments. offshore/professional-intermediary/insights-and Reporting Fund Status literature/literature or are available from the Manager upon The Company received confirmation from HMRC of its entry into request. the Reporting Fund Regime with effect from 1 January 2010. Investment Objective and Strategy A Word of Warning Investors should remember that the value of shares can Aberdeen Standard Capital (Offshore) Bridge Class ("Bridge fluctuate and is not guaranteed. Past performance is not a Class"): guide to the future and you may not get back the full amount to provide investors with capital growth with an element of invested. Shares in the Company should be regarded as long- income. This Class will be primarily invested in a portfolio of term investments and may not be suitable for money you may international equities and fixed interest securities. Although this need at short notice. The value of overseas securities will be Class will normally be invested in securities, the Investment influenced by the rate of exchange, which is used to convert Manager may elect to hold cash or near cash from time to time. these into sterling. In the event of the Company being unable There will be no limits on the proportion of the Class invested in to meet liabilities attributable to any particular Fund Class out bonds or equities or in any one geographic region. of the assets attributable to such Fund Class, the excess Aberdeen Standard Capital (Offshore) Global Equity Class liabilities may have to be met out of the assets attributable to ("Global Equity Class"): the other Fund Classes. to provide investors with long-term capital growth together with an element of income. This Class will be primarily invested in a diversified portfolio of global equities.
Aberdeen Standard Capital (Offshore) Global Fixed Interest Class ("Global Fixed Interest Class"): to provide investors with a return from both income and capital growth. This Class will be primarily invested in global fixed interest securities. The Investment Manager may also elect to hold cash or near cash from time to time.
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Aberdeen Standard Capital Offshore Strategy Fund Limited Annual Report and Audited Financial Statements
Report of the Directors (cont.)
Distribution Policy The AIC Code is available on the AIC website (www.theaic.co.uk). The amount of revenue available for distribution will be It includes an explanation of how the AIC Code adapts the determined by the Company. For the Bridge, Global Equity and Principles and Provisions set out in the UK Code to make them UK Equity Classes, dividends will normally be paid six monthly relevant for investment companies. on 28 February and 31 August in sterling to shareholders who Management Structure are on the register at 31 December and 30 June immediately The management structure is a one-tier Board of Directors. prior to the distribution.
For the Sterling Fixed Interest, Global Fixed Interest and Board Independence The Board currently consists of five non-executive Directors. Income Classes, dividends will be paid quarterly. In addition to Two of the Directors, Mrs Scott and Mr Coote have interests the dividend dates stated above, dividends will also be paid on with related parties and are therefore not considered 31 May and 30 November in sterling to shareholders who are independent: Mrs Scott is a Director of the Company’s on the register at 31 March and 30 September immediately Manager, Aberdeen Standard Capital (CI) Limited. Mrs Scott is prior to the distribution. also an employee of Standard Life Investments Limited and is Included in the creation and cancellation prices of Participating a Director of SLTM Limited, which are part of the same group Shares and therefore reflected as a capital sum in those prices, as Aberdeen Standard Capital (CI) Limited. Mr Coote is is a revenue equalisation figure representing any revenue employed by Aberdeen Standard Capital International Limited attributable to the Participating Shares accrued since the last which is part of the same group as Aberdeen Standard Capital record date for dividends. An amount representing an average (CI) Limited. Aaron Le Cornu has been appointed as an equalisation will be included in the amount of the first independent director with the intention of becoming the new dividend paid after the initial investment. Chairman. The Directors’ interests are fully disclosed to the At present all net revenue earned is paid out as a distribution Board and each Director abstains themselves from any matters to Shareholders of each Share Class. which could be affected by any conflict of interests. The Board and Manager operate in a supportive, co-operative Shares in Issue and open environment. The total number of Shares in issue and Net Asset Value History over the last 3 years (or since launch if shorter) of each The Directors are conscious of the need to refresh the Board Share Class is disclosed in the Net Asset Value History table in whilst maintaining continuity. The Board believes that the Statistics section for each Share Class. These are disclosed retaining and refreshing Directors with sufficient experience of under the heading ‘‘Statistics’’ just before the Portfolio both the Company and its markets is of great benefit to Statements and not in this Report of the Director’s Report as Shareholders and that the Directors have different qualities required by Part 3 of Schedule 3 of the Fund Rules, as the and areas of expertise on which they may lead where issues Directors believe the information presented within each set of arise. The Board is also committed to the proper levels of Fund Class results is a more informative presentation and will diversity. The Directors’ biographies, set out on page 4, aid the understanding of the figures contained therein. demonstrate a breadth of investment, commercial and professional experience with an International perspective. The Each class has two classes of shares in issue; these being Z and Directors’ length of service is also disclosed on page 4. Retail Participating Shares. Responsibilities Market value per Share The Board meets at least four times each year and deals with The bid-market value per share of each Share Class is the important aspects of the Company’s affairs, including the disclosed in the Net Asset Value History table in the Statistics setting and monitoring of investment strategy and the review for each Share Class. of investment performance. The Investment Manager takes Corporate Governance Report decisions as to the purchase and sale of individual The Board has considered the Principles and Provisions of the investments. The Manager also ensures that all Directors AIC Code of Corporate Governance (AIC Code). The AIC Code receive, in a timely manner, all relevant management, addresses the Principles and Provisions set out in the UK regulatory and financial information. Corporate Governance Code (the UK Code) as well as setting out The Board’s tenure and succession policy seeks to ensure that additional Provisions on issues that are of specific relevance to the Board is well-balanced and refreshed by the appointment Aberdeen Standard Capital Offshore Strategy Fund Limited. of new Directors with the skills and experience necessary, in The Board considers that reporting against the Principles and particular, to replace those lost by Directors’ retirements. Provisions of the AIC Code, which has been supported by the Directors must be able to demonstrate their commitment to Jersey Financial Services Commission, provides more relevant the Company. The Board seeks to encompass relevant past information to shareholders. and current experience of various areas relevant to the Company’s business. The company has complied with the Principles and Provisions of the AIC Code.
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Aberdeen Standard Capital Offshore Strategy Fund Limited Annual Report and Audited Financial Statements
Report of the Directors (cont.)
Board Committees Board of Directors The Board has not established separate Audit, Management During the year ended 31 December 2020, the Board of Engagement and Nominations committees with defined terms Directors held four regular quarterly meetings and six ad-hoc of reference and duties. All members of the Board consider meetings (for approval of the Financial Statements, prospectus, and make decisions on matters of Audit, Management dividends and other matters), additionally, a committee was Engagement and Nominations. The Board believes that the appointed to finalise the disclosures after a Covid review which Company is of insufficient size and complexity to warrant the Martin Magee attended. Attendance at each of these is noted additional cost associated with the engagement of separate below with the exception of the committee as the board had committees to consider these matters. approved the statements in principle.
The Board does ensure that at least one of its members is a Number of meetings Regular Quarterly Ad-Hoc qualified accountant and that the accountant(s) leads on all attended in year Board meetings (4) Meetings (6) matters in relation to Financial Statements preparation and Martin Magee 4 6 audit. (Chairman) The Board is responsible for the review and monitoring of the Lynn Scott 4 3 internal financial control systems and risk management Andrew Curtin 4 6 systems on which the Company is reliant: Timothy Coote 4 6 to consider annually whether there is a need for the Company to have its own internal audit function; The first mandate of each Director ends at the Shareholders' Annual General Meeting following the date of appointment. to monitor the integrity of the half year and annual The articles of the Company do not require retirement on a Financial Statements and the going concern statement of rotational basis, however from September 2019 the Board of the Company by reviewing and challenging, where Directors have agreed that each Director will be submitted for necessary, the actions and judgements of the Manager and re-election on a voluntary basis every year. the Administrator; Directors’ Interests to meet with the Company’s auditor to review their The Directors at the date of this report are listed on page 4 proposed audit programme of work and the findings of its and no Director has a service contract with the Company. audit (the Board also uses this as an opportunity to assess The Directors of the Company and their families had no the effectiveness of the audit process); interests in the Share Capital of the Company on 8 April 2021. to make recommendations in relation to the appointment There have been no changes in the interests of the Directors of the Company’s auditor and to approve the remuneration from the year end to the date of signing this report. and terms of engagement of the Company’s auditor; and to monitor and review annually the Company’s auditor Directors’ Professional Development independence, objectivity, effectiveness, resources and When a new Director is appointed, he or she is offered an qualifications. induction programme which includes site visits to the main Aberdeen Standard Capital's operation centres including Auditor Edinburgh and London as well as to the Administrator, based The Board has satisfied itself that KPMG Channel Islands in Jersey. Limited, the Company’s current auditor, is independent. Directors are also provided, on a regular basis, with key Audit fees of £53,900 and non-audit fees of £Nil were paid to information on the Company’s policies, regulatory and KPMG Channel Islands Limited during the year. statutory requirements and internal controls. Directors also Going Concern participate in relevant training and industry seminars as The Directors believe that it is appropriate to continue to opportunities arise. In particular anti-money laundering adopt the going concern basis in preparing the Financial training is undertaken by each Director annually. Statements as the assets of the Company consist mainly of securities which are readily realisable and, accordingly, the Company has adequate financial resources to continue in operational existence for the foreseeable future. Shareholders are not liable for the debts of the Company. A Shareholder is not liable to make any further payment to the Company after he/she has paid the purchase price of the shares.
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Aberdeen Standard Capital Offshore Strategy Fund Limited Annual Report and Audited Financial Statements
Report of the Directors (cont.)
Remuneration Report Board Performance evaluation The Board consists of non-executive Directors who meet An annual evaluation of the performance of the Board takes regularly to deal with the important aspects of the Company’s place utilising a questionnaire completed by each Board affairs. Directors are appointed on a yearly basis, with the member. The results are compiled by the Company Secretary expectation that they will initially serve for a period of three and circulated to the Board for review and consideration. This years. Each of the Directors has a letter of appointment and a seeks to identify whether the Board demonstrates sufficient Director may resign by giving notice in writing to the Board at collective, skill, expertise and knowledge and that each Director any time; there are no set notice periods. The Company’s policy exhibits the commitment required. The Board is satisfied with is for the Directors to be remunerated in the form of fees, the outcome of the evaluation carried out in 2020. payable quarterly in arrears. Mrs Scott is employed by Standard Committees of the Board of Directors Life Investments Limited and has waived her right to receive any The Directors may delegate any of their powers to committees fees from the Company. Mr Coote is employed by Aberdeen consisting of a Director or Directors or such other persons as Standard Capital International Limited and has waived his right they think fit. Currently, no such committees have been to receive any fees from the Company. There are no long-term established. The powers to appoint a committee were used in incentive schemes provided by the Company and the fees are the year while finalising the statements in respect of Covid. not specifically related to the Directors’ performance, or the share price. Each Director will stand for re-election each year. Bank facilities and gearing At 31 December 2020, the Company had nil short term The Company’s policy is that the fees payable to the Directors overdrafts (2019: £1k) and held cash of £13.9m (2019: £21.1m) should reflect the time spent by the Board on the Company’s which meant the Company was ungeared. affairs and the responsibilities borne by the Directors and should be sufficient to enable candidates of high calibre to be Related party transactions recruited. Remuneration is reviewed on an annual basis. The contracts with Aberdeen Standard Capital (CI) Limited and Directors' fees increased on 16 May 2012 to the current levels Aberdeen Standard Capital Limited are the only related party with a total aggregate fees cap of £100,000 as agreed at the arrangements currently in place. Mrs Scott is a Director of the 2012 AGM. Manager, Aberdeen Standard Capital (CI) Limited. Other than fees payable in the ordinary course of business, there have The Directors’ fees paid for the year to 31 December 2020 been no material transactions with these related parties which were: Mr Magee £20,000 (2019: £20,000) and Mr Curtin £15,000 have affected the financial position or performance of the (2019: £15,000). Company in the financial year. The Company has in place Directors’ and Officers’ Insurance Delegated functions cover to the sum of £10m in the aggregate in respect of the The Board has delegated contractually to external third members of the Board of Directors, the costs of which are parties, including the Manager, the Custodian and the borne by the Company. Administrator, the management of the investment portfolio, Senior Independent Director the custodial services (which include the safeguarding of the Mr Curtin has been identified as the Senior Independent assets), the day to day accounting, company secretarial Director. compliance and administration requirements and registration services. Each of these contracts was entered into after full The role of Chief Executive and proper consideration by the Board of the quality and cost Since all Directors act in a non-executive capacity and day-to- of the services offered, including the control systems in day management responsibilities are subcontracted to the operation in so far as they relate to the affairs of the Company. Manager, the Company does not have a chief executive. Internal audit function As the Company delegates its day-to-day operations to third parties and has no employees, the Board has, therefore, determined that there is no requirement for an internal audit function. The Directors periodically consider whether a function equivalent to internal audit is needed and will continue to monitor its systems of internal controls in order to provide assurance that they operate as intended.
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Aberdeen Standard Capital Offshore Strategy Fund Limited Annual Report and Audited Financial Statements
Report of the Directors (cont.)
Relationship with the Manager Corporate Responsibility The Board receives and considers regular reports from the Responsible Investment Manager and ad hoc reports and information are supplied to The Board has delegated all responsible investment activities the Board as required. for the Fund Classes to the Investment Manager. It is believed The Investment Manager takes decisions as to the purchase that the Investment Manager is best placed to undertake such and sale of individual investments. The Manager and the activities and to ensure that these activities are integrated Administrator also ensure that all Directors receive, in a timely within the investment process. The Investment Manager has a manner, all relevant management, regulatory and financial well established approach to responsible investment. This information. approach encapsulates the exercise of voting rights, engaging with investee companies and influencing the debate on certain Representatives of the Manager and of the Administrator environmental, social and governance (ESG) matters. attend each Board meeting enabling the Directors to probe further on matters of concern. A formal schedule of matters Voting policy specifically reserved for decision by the full Board has been The Investment Manager’s voting policies and procedures have defined and a procedure adopted for Directors, in the been formulated by Investment Directors of the Investment furtherance of their duties, to take independent professional Manager. The Investment Manager seeks to support or advice at the expense of the Company within certain enhance its investment rationale for a company through parameters. The Directors have access to the advice and appropriate levels of engagement or activism and through the services of the corporate Company Secretary through its subsequent exercise of voting rights. appointed representative and the Compliance Officer who is The Investment Manager endeavours to exercise voting rights responsible to the Board for ensuring that Board procedures in all markets. However, this may be hindered by various are followed and that applicable rules and regulations are practical considerations, such as share blocking or the complied with. The Board, the Manager and the Administrator requirement for a physical presence at the meeting. operate in a supportive, co-operative and open environment. Annual General Meeting (''AGM'') The Board reviews the performance of the Investment The AGM will be held at the Company’s registered office in Manager at each Board meeting. It is the opinion of the Jersey on 27 May 2021 at 3 p.m. The Notice of Meeting is Directors that the continued appointment of the current contained on page 3 and a proxy form is enclosed for each Investment Manager on the terms agreed is in the interests of shareholding. Separate resolutions will be proposed for each the Company’s Shareholders as a whole. The Investment substantive issue, including the approval of the report and Manager has extensive investment management resources Financial Statements, appointment of Directors and and wide experience in managing and administering global appointment of KPMG Channel Islands Limited as independent investment companies. auditor for the ensuing year, and to authorise the Directors to Substantial share interests determine their remuneration. At 31 December 2020, 554,194,611 (76.2%) shares were held Other Information by nominee company Platform Securities Nominees Limited At the reporting date, the Manager, Aberdeen Standard Capital and 151,817,093 (20.9%) shares by nominee company BNP (CI) Limited, was a subsidiary of Standard Life Aberdeen plc. Paribas Nominees Limited representing holdings on behalf of Aberdeen Standard Capital's clients. Other corporate and Website nominee holdings represented 2.5% of shares. The remaining The Prospectus, Financial Statements, quarterly factsheets and 0.4% of shares were held by 76 individual Shareholders. daily fund prices are available on the website of the Investment Manager. Relations with Shareholders are given high priority by both the Board and the Manager. The prime medium by which the www.aberdeenstandardcapital.com Company communicates with Shareholders is through the Half Notice of annual general meetings and results of all Year and Annual Reports. Shareholders’ meetings are available on request. It is the intention of the Board that the year end items and Helpline no. (01534) 709130 Notice of the AGM be issued to Shareholders so as to provide at least twenty one days’ notice of the AGM. By Order of the Board Aberdeen Standard Capital (CI) Limited Manager and Company Shareholders wishing to contact the Company are invited to do Secretary so by writing to the Company Secretary at the registered office address on page 5. The Chairman can also be contacted at his 8 April 2021 address on page 5 of this report.
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Aberdeen Standard Capital Offshore Strategy Fund Limited Annual Report and Audited Financial Statements
Statement of Directors’ Responsibilities
The Directors are responsible for preparing the Annual Report The Directors confirm they have complied with all the above and the Financial Statements in accordance with applicable requirements in preparing the Financial Statements. Law, regulations and United Kingdom Accounting Standards The Directors are responsible for keeping accounting records including Financial Reporting Standard 102 - 'The Financial which are sufficient to show and explain the Company's Reporting Standard applicable in the United Kingdom and the transactions and are to disclose with reasonable accuracy at Republic of Ireland' ("FRS 102"). any time the financial position of the Company and to enable The Companies (Jersey) Law 1991, Alternative Investment them to ensure that the Financial Statements prepared by the Funds (Jersey) Regulations 2012 and Collective Investment Company comply with the Laws. They are responsible for such Funds (Recognized Funds) (Rules) (Jersey) Order 2003 (together internal control as they determine is necessary to enable the the "Laws") require the Directors to prepare Financial preparation of Financial Statements that are free from Statements for each financial year in accordance with any material misstatement, whether due to fraud or error, and generally accepted accounting principles. The Financial have general responsibility for taking such steps as are Statements of the Company are required by the Laws to give a reasonably open to them to safeguard the assets of the true and fair view of the financial position of the Company at Company and hence for taking reasonable steps for the the year end and of the net revenue and the net gains of the prevention and detection of fraud and other irregularities. Company for that year. In preparing these Financial So far as the Directors are aware, there is no relevant audit Statements, the Directors should: information of which the Company's auditor is unaware, and select suitable accounting policies and then apply them each Director has taken all the steps that he or she ought to consistently; have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that make judgments and estimates that are reasonable and the Company's auditor is aware of that information. prudent; The Directors are responsible for the maintenance and specify which generally accepted accounting principles integrity of the corporate and financial information included have been adopted in their preparation; on the Investment Manager’s website. Legislation in Jersey assess the Company's ability to continue as a going governing the preparation and dissemination of Financial concern to disclosing as applicable, matters related to Statements may differ from legislation in other jurisdictions. going concern; and
prepare the Financial Statements on the going concern M Magee basis unless it is inappropriate to presume that the Chairman Company will continue in business.
8 April 2021
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Aberdeen Standard Capital Offshore Strategy Fund Limited Annual Report and Audited Financial Statements
Independent Auditor’s Report to the members of Aberdeen Standard Capital Offshore Strategy Fund Limited Our opinion is unmodified Our conclusions based on this work: We have audited the financial statements (“the financial we consider that the directors' use of the going concern statements”) of Aberdeen Standard Capital Offshore Strategy basis of accounting in the preparation of the financial Fund Limited (the “Company”), which comprise the Statements statements is appropriate; and of Financial Position of the Company on an aggregated basis and on separate share class bases (the “Classes”) as at 31 we have not identified, and concur with the directors' December 2020, the Statements of Total Return, Statements of assessment that there is not, a material uncertainty related Movement in Shareholders’ Funds for the year then ended, to events or conditions that, individually or collectively, and notes, comprising significant accounting policies and other may cast significant doubt on the Company and its Classes’ explanatory information of the Company on an aggregated ability to continue as a going concern for the going concern basis and on a Classes bases on page 19 to 168 of the annual period. report. However, as we cannot predict all future events or conditions In our opinion, the accompanying Financial Statements: and as subsequent events may result in outcomes that are give a true and fair view of the financial position of the inconsistent with judgements that were reasonable at the time Company and its Classes as at 31 December 2020, and of they were made, the above conclusions are not a guarantee their financial return for the year then ended; that the Company and its Classes will continue in operation.
are prepared in accordance with United Kingdom Fraud and breaches of laws and regulations – ability to detect accounting standards, including FRS 102 The Financial Reporting Standard applicable in the United Kingdom and Identifying and responding to risks of material misstatement Republic of Ireland; and due to fraud To identify risks of material misstatement due to fraud (“fraud have been properly prepared in accordance with the risks”) we assessed events or conditions that could indicate an Companies (Jersey) Law 1991 and the Collective Investment incentive or pressure to commit fraud or provide an Funds (Recognized Funds) (Rules) (Jersey) Order 2003. opportunity to commit fraud. Our risk assessment procedures Basis for Opinion included: We conducted our audit in accordance with International enquiring of management as to the Company’s policies and Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. procedures to prevent and detect fraud as well as Our responsibilities are described below. We have fulfilled our enquiring whether management have knowledge of any ethical responsibilities under, and are independent of the actual, suspected or alleged fraud; Company and its Classes in accordance with, UK ethical requirements including FRC Ethical Standards. We believe that reading minutes of meetings of those charged with the audit evidence we have obtained is a sufficient and governance; and appropriate basis for our opinion. using analytical procedures to identify any unusual or Going concern unexpected relationships. The directors have prepared the financial statements on the As required by auditing standards, we perform procedures to going concern basis as they do not intend to liquidate the address the risk of management override of controls, in Company or its Classes or to cease its operations, and as they particular the risk that management may be in a position to have concluded that the Company and the Classes’ financial make inappropriate accounting entries. On this audit we do position means that this is realistic. They have also concluded not believe there is a fraud risk related to revenue recognition that there are no material uncertainties that could have cast because the Company’s revenue streams are simple in nature significant doubt over its ability to continue as a going concern with respect to accounting policy choice, and are easily for at least a year from the date of approval of the financial verifiable to external data sources or agreements with little or statements (the “going concern period"). no requirement for estimation from management. We did not In our evaluation of the directors' conclusions, we considered identify any additional fraud risks. the inherent risks to the Company and its Classes’ business We performed procedures including model and analysed how those risks might affect the Company and its Classes’ financial resources or ability to continue Identifying journal entries and other adjustments to test operations over the going concern period. based on risk criteria and comparing the identified entries to supporting documentation; and
incorporating an element of unpredictability in our audit procedures.
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Aberdeen Standard Capital Offshore Strategy Fund Limited Annual Report and Audited Financial Statements
Independent Auditor’s Report to the members of Aberdeen Standard Capital Offshore Strategy Fund Limited (cont.) Identifying and responding to risks of material misstatement Other information due to non-compliance with laws and regulations The directors are responsible for the other information. The We identified areas of laws and regulations that could other information comprises the information included in the reasonably be expected to have a material effect on the annual report but does not include the financial statements financial statements from our general commercial and sector and our auditor's report thereon. Our opinion on the financial experience and through discussion with management (as statements does not cover the other information and we do required by auditing standards), and from inspection of the not express an audit opinion or any form of assurance Company’s regulatory and legal correspondence, and conclusion thereon. discussed with management the policies and procedures In connection with our audit of the financial statements, our regarding compliance with laws and regulations. As the responsibility is to read the other information and, in doing so, Company is regulated, our assessment of risks involved consider whether the other information is materially gaining an understanding of the control environment including inconsistent with the financial statements or our knowledge the entity’s procedures for complying with regulatory obtained in the audit, or otherwise appears to be materially requirements. misstated. If, based on the work we have performed, we The Company is subject to laws and regulations that directly conclude that there is a material misstatement of this other affect the financial statements including financial reporting information, we are required to report that fact. We have legislation and taxation legislation and we assessed the extent nothing to report in this regard. of compliance with these laws and regulations as part of our We have nothing to report on other matters on which we are procedures on the related financial statement items. required to report by exception The Company is subject to other laws and regulations where We have nothing to report in respect of the following matters the consequences of non-compliance could have a material where the Companies (Jersey) Law 1991 or the Collective effect on amounts or disclosures in the financial statements, Investment Funds (Recognized Funds) (Rules) (Jersey) Order for instance through the imposition of fines or litigation or 2003 requires us to report to you if, in our opinion: impacts on the Company and its Classes’ ability to operate. We adequate accounting records have not been kept by the identified financial services regulation as being the area most Company; or likely to have such an effect, recognising the regulated nature of the Company’s activities and its legal form. Auditing the Company's financial statements are not in agreement standards limit the required audit procedures to identify non- with the accounting records; or compliance with these laws and regulations to enquiry of the report of the directors is inconsistent with the financial management and inspection of regulatory and legal statements; or correspondence, if any. Therefore if a breach of operational regulations is not disclosed to us or evident from relevant we have not received all the information and explanations correspondence, an audit will not detect that breach. we require for our audit.
Context of the ability of the audit to detect fraud or Respective responsibilities breaches of law or regulation Directors’ responsibilities Owing to the inherent limitations of an audit, there is an As explained more fully in their statement set out on page 15, unavoidable risk that we may not have detected some material the directors are responsible for: the preparation of the misstatements in the financial statements, even though we financial statements including being satisfied that they give a have properly planned and performed our audit in accordance true and fair view; such internal control as they determine is with auditing standards. For example, the further removed necessary to enable the preparation of financial statements non-compliance with laws and regulations is from the events that are free from material misstatement, whether due to and transactions reflected in the financial statements, the less fraud or error; assessing the Company and its Classes’ ability likely the inherently limited procedures required by auditing to continue as a going concern, disclosing, as applicable, standards would identify it. matters related to going concern; and using the going concern In addition, as with any audit, there remains a higher risk of basis of accounting unless they either intend to liquidate the non-detection of fraud, as this may involve collusion, forgery, Company or its Classes or to cease operations, or have no intentional omissions, misrepresentations, or the override of realistic alternative but to do so. internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.
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Aberdeen Standard Capital Offshore Strategy Fund Limited Annual Report and Audited Financial Statements
Independent Auditor’s Report to the members of Aberdeen Standard Capital Offshore Strategy Fund Limited (cont.) Auditor’s responsibilities Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue our opinion in an auditor’s report. Reasonable assurance is a high level of assurance, but does not guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.
A fuller description of our responsibilities is provided on the FRC’s website at www.frc.org.uk/auditorsresponsibilities.
The purpose of this report and restrictions on its use by persons other than the Company’s members, as a body This report is made solely to the Company’s members, as a body, in accordance with Article 113A of the Companies (Jersey) Law 1991. Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s members, as a body, for our audit work, for this report, or for the opinions we have formed.
Brian Bethell For and on behalf of KPMG Channel Islands Limited Chartered Accountants, 37 Esplanade, St Helier Jersey, JE4 8WQ
9 April 2021
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Aberdeen Standard Capital Offshore Strategy Fund Limited Annual Report and Audited Financial Statements
Aggregated Financial Statements for the year ended 31 December 2020
Aggregated Statement of Total Return
31 December 2020 31 December 2019 Notes £000’s £000’s £000’s £000’s Income Net capital gains Net capital gains on investments 3 22,532 41,773 Other gains/(losses) 3 279 (507) 22,811 41,266 Revenue 4 12,463 12,323 Expenses 5 (392) (413) Interest payable and similar charges 7 (8) (8) Net revenue before taxation 12,063 11,902 Taxation 6 (514) (416) Net revenue after taxation 11,549 11,486 Total return before distributions 34,360 52,752 Distributions 8 (11,856) (11,808) Net increase in Shareholders’ funds from Investment activities 22,504 40,944
Aggregated Statement of Movement in Shareholders’ Funds
31 December 2020 31 December 2019 £000’s £000’s £000’s £000’s Opening net assets attributable to Shareholders 386,673 332,606 Amounts receivable on creation of Shares 63,832 58,013 Amounts payable on cancellation of Shares (36,417) (44,908) 27,415 13,105 Dilution levy 39 18 Net increase in Shareholders’ funds from investment activities (see above) 22,504 40,944 Closing net assets attributable to Shareholders 436,631 386,673
All results above are derived from continuing activities for both the current and prior year.
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Aberdeen Standard Capital Offshore Strategy Fund Limited Annual Report and Audited Financial Statements
Aggregated Financial Statements as at 31 December 2020
Aggregated Statement of Financial Position
31 December 2020 31 December 2019 Notes £000’s £000’s £000’s £000’s Assets Fixed assets Investment assets at fair value through profit or loss* 424,732 366,289 Current assets Debtors 10 4,016 3,593 Cash and bank balances 11 13,921 21,106 Total current assets 17,937 24,699 Total assets 442,669 390,988
Liabilities Investment liabilities at fair value through profit or loss* (191) (181) Creditors Amounts due to future clearing houses and brokers (7) (5) Bank overdrafts — (1) Distribution payable 12 (3,188) (3,143) Other creditors 12 (2,652) (985) Total other liabilities (5,847) (4,134) Total liabilities (6,038) (4,315) Net assets attributable to Shareholders 436,631 386,673
The notes on pages 21 to 30 form part of the Financial Statements.
*The net investment assets and investment liabilities equal the total net aggregated value of the Portfolio Statements within each Fund Class.
The Financial Statements were approved by the Board of Directors on 8 April 2021 and signed on their behalf by:
Martin Magee
The Company has not prepared a cash flow statement as required by making use of the exemption detailed in Section 7.1 A of Financial Reporting Standard (FRS) 102 which stipulates that one is not required for investment entities that meet all of the following conditions:
i) Substantially all of the entity's investments are highly liquid;
ii) Substantially all of the entity's investments are carried at market value; and
iii) The entity provides a Statement of Changes in Net Assets.
(The Directors believe that the information required by a Statement of Changes in Net Assets is provided in the Statement of Movement in Shareholders’ Funds on page 19).
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Aberdeen Standard Capital Offshore Strategy Fund Limited Annual Report and Audited Financial Statements
Notes to the Aggregated Financial Statements for the year ended 31 December 2020
1 Accounting policies transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in a) Accounting Convention the Aggregated Statement of Total Return. Securities listed Notes specific to individual Fund Classes are shown on a Stock Exchange or actively traded on any other following the Financial Statements for each Fund Class. regulated market are valued on the last business day of the b) Accounting Principles year at bid market value on such exchange or market. The Financial Statements have been prepared on a going Collective Investment Scheme investments held by the concern basis in accordance with the Companies (Jersey) Company are valued at the last sales price available at the Law 1991, Alternative Investment Funds (Jersey) valuation point. Certain of these Collective Investment Regulations 2012, the Collective Investment Funds Schemes have limited dealing frequencies and thus are not (Recognized Funds) (Rules) (Jersey) Order 2003, and in as liquid as securities listed on a Stock Exchange. No accordance with United Kingdom Accounting Standards, liquidity discount is applied to the valuation prices; including Financial Reporting Standard 102 - “The Financial accordingly, the carrying value based on the latest available Reporting Standard applicable in the United Kingdom and price may not represent the proceeds which would be the Republic of Ireland” ("FRS 102"). realised upon sale in due course. The Directors have also chosen to prepare the Financial Cash collateral provided by the Funds is identified on the Statements in compliance with the Statement of Balance Sheet as pledged cash collateral and is not Recommended Practice ‘Financial Statements of UK included as a component of cash and cash equivalents. Authorised Funds’ issued by the IMA (now known as the Investment Association) in May 2014 (the “SORP”). The Securities not listed on any Stock Exchange or traded on comparative table has been prepared in accordance with any regulated market are valued at their last available Jersey Law. market price. Securities for which no listed price is available, or for which the price referred to in the previous These Financial Statements have been prepared under the paragraphs is not considered to represent fair value, will historical cost convention, as modified by the revaluation be valued prudently and in good faith by the Directors of certain financial assets and liabilities measured at fair based on the most recent available information at the year value through profit and loss. end. The recorded fair value may not represent the The preparation of Financial Statements in conformity with proceeds which would be realised upon sale in due course. FRS 102 requires the use of certain critical accounting Financial assets are derecognised when estimates. It also requires management to exercise its (i) the contractual rights to the cash flows from the asset judgement in the process of applying the Company's expire or are settled, or accounting policies. In the opinion of the Directors there are (ii) substantially all the risks and rewards of the ownership no areas involving a high degree of judgement or complexity. of the asset are transferred to another party, or The Manager has considered the impact of the emergence (iii) despite having retained some significant risks and and spread of Covid-19 and potential implications on future rewards of ownership, control of the asset has been operations of the Fund's of reasonably plausible downside transferred to another party who has the practical ability to scenarios. The Manager has undertaken a detailed unilaterally sell the asset to an unrelated third party assessment, and continues to monitor, the Fund’s ability to without imposing additional restrictions. meet its liabilities as they fall due, including liquidity, d) Financial Liabilities declines in global capital markets and investor redemption Basic financial liabilities, including bank overdrafts and levels. Based on this assessment, the Fund’s continue to be other payables, that are classified as debt, are initially open for trading and the Manager is satisfied the Fund's recognised at transaction price, unless the arrangement have adequate financial resources to continue in operation constitutes a financing transaction, where the debt and accordingly it is appropriate to adopt the going concern instrument is measured at the present value of the future basis in preparing the financial statements. receipts discounted at a market rates of interest. Debt c) Financial Assets instruments are subsequently carried at cost. Basic financial assets, including cash and bank balances Accounts payable are classified as current liabilities if and other receivables, are initially recognised at payment is due within one year or less. If not, they are transaction price. Such assets are subsequently carried at presented as non-current liabilities. costs and at the end of each reporting year assessed for objective evidence of impairment. The impairment loss is Financial liabilities are derecognised when the liability is recognised in the Statement of Total Return. extinguished, that is when the contractual obligation is discharged, cancelled or expires. Other financial assets, including investments in securities, are initially measured at fair value, which is normally the
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Aberdeen Standard Capital Offshore Strategy Fund Limited Annual Report and Audited Financial Statements
Notes to the Aggregated Financial Statements (cont.)
1 Accounting policies continued 1 Accounting policies continued
e) Bank Deposit Interest and Investment Revenue transactions are accounted for when the issue underwritten Dividends on equities, and revenue from shares held in takes place and, to the extent that the shares are taken up, a underlying funds are recognised when the security is quoted proportion of the commission is accounted for as capital, ex-dividend. Interest on deposits is accounted for on an otherwise the commission is treated as revenue. accruals basis. Revenue on debt securities is recognised on the effective interest rate basis. Accrued interest purchased k) Functional and presentation currency or sold is excluded from the cost of the security and is dealt The Company’s base and functional currency is the British with as revenue. Distributions from Offshore Collective Pound Sterling (“Sterling”) which is the currency of the Investment Schemes are recorded on an ex-dividend date primary economic environment in which it operates. and additional revenue is recorded when reported. The Financial Statements are presented in Sterling, which is f) Foreign Exchange the currency in which the Company's performance is All transactions in foreign currencies are translated into evaluated and its liquidity managed. Therefore Sterling is Sterling at the rates of exchange rulings at the date of such considered as the currency that most faithfully represents transactions. Foreign currency assets and liabilities at the end the economic effects of the underlying transactions, events of the accounting year are translated at the exchange rates at and conditions. The figures in the Financial Statements close of business on the last business day of the year. have been rounded to the nearest thousand.
Foreign exchange gains and losses arising from translation l) Offsetting are included in the Statement of Total Return and are Financial assets and liabilities are offset and the net amounts included in net capital gains/(losses) on investments. are presented in the Financial Statements when there is a legally enforceable right to set off the recognised amounts g) Derivatives and there is an intention to settle on a net basis or to realise The Company also enters into derivative transactions in the asset and settle the liability simultaneously. the form of forward foreign currency contracts, futures and option contracts. 2 Distribution policies
For over the counter derivatives, market value is a) Basis of distribution determined, based on valuation pricing models, which take If, at the end of each accounting period, revenue exceeds into account relevant market inputs as well as the time expenses, the net revenue of the Share Class is available to values, liquidity and volatility factors underlying the be distributed to Shareholders of the Share Class. positions. Amounts due to and from an individual b) Special Dividends counterparty which falls under a legally enforceable master Amounts recognised as revenue form part of the relevant netting agreement are netted. Share Class distribution. Exchange traded products have been valued at the bid price c) Equalisation at close of business on the last business day of the year. Equalisation applies only to shares purchased during the Both realised and unrealised gains/(losses) on derivatives distribution period (Group 2 shares). It is the average are taken to the Aggregated Statement of Total Return and amount of revenue included in the purchase price of all are included in net capital gains/(losses) on investments. Group 2 shares and is refunded to holders of these shares as a return of capital. Returns from derivative securities are taken to capital and/or revenue depending on the motive and d) Expenses circumstances surrounding the particular transaction. The For all Fund Classes, except the Sterling Fixed Interest, net revenue/expense on derivative positions are recognised Global Fixed Interest and Income, the following fees and as revenue and form part of the Fund’s distribution. expenses solely for the purpose of calculating the amount that is distributable are charged to capital rather than h) Tax revenue in line with the Manager's expectation of the split The tax charge relates to irrecoverable withholding tax on between capital and revenue growth: interest on debt securities and overseas dividends. Manager’s periodic charge 75% i) Special dividends Custody charges 100% Special dividends are reviewed on a case by case basis in determining whether the amount is capital or revenue in nature. For the Sterling Fixed Interest, Global Fixed Interest and Income Classes, all fees and expenses are charged to j) Underwriting commission capital, (with the exception of collection charges) for the Underwriting and sub-underwriting contracts and placings purpose of calculating the amount to be distributed. may also be entered into. Commissions earned on these
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Aberdeen Standard Capital Offshore Strategy Fund Limited Annual Report and Audited Financial Statements
Notes to the Aggregated Financial Statements (cont.)
3 Net capital gains
The net capital gains on investments during the year comprise: 31 December 2020 31 December 2019 £000’s £000’s Non-derivative securities 21,064 38,657 Derivative securities 429 305 Forward currency contracts 1,103 2,872 Other gains/(losses) – currency gains/(losses) 279 (507) Custodial transaction fees (64) (61) Net capital gains 22,811 41,266
4 Revenue 31 December 2020 31 December 2019 £000’s £000’s Bank interest 18 34 Collateral interest 1 5 Derivative income 46 10 Franked distributions from authorised funds 17 13 Interest on debt securities 8,574 7,764 Money market deposit 27 111 Overseas dividends 2,146 1,958 UK dividends 1,546 2,374 UK REIT dividends 56 25 US REIT dividends 32 29 Total revenue 12,463 12,323
5 Expenses
31 December 2020 31 December 2019 £000’s £000’s Payable to the Manager or Associate of the Manager: Manager’s periodic charge 124 136 Registrar’s fees 11 125 137 Other expenses: Audit fees 40 59 Custodian fees 100 91 Directors’ fees 40 37 Other expenses 87 89 267 276 Total expenses 392 413
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Aberdeen Standard Capital Offshore Strategy Fund Limited Annual Report and Audited Financial Statements
Notes to the Aggregated Financial Statements (cont.)
6 Taxation
31 December 2020 31 December 2019 £000’s £000’s Withholding tax on overseas dividends 514 416 Total taxation 514 416
7 Interest payable and similar charges 31 December 2020 31 December 2019 £000’s £000’s Interest payable 88 Total interest payable and similar charges 88
8 Distributions
The distributions take account of equalisation amounts added on the creation of shares and equalisation amounts deducted on the cancellation of shares. They comprise:
31 December 2020 31 December 2019 £000’s £000’s Interim distribution 31 March 2,697 2,566 Interim distribution 30 June 3,360 3,656 Interim distribution 30 September 2,669 2,569 Final distribution 31 December 3,188 3,143 11,914 11,934 Amounts added on creation of shares (223) (307) Amounts deducted on cancellation of shares 165 181 Gross distributions for the year 11,856 11,808
9 Net movement between revenue after taxation and distributions 31 December 2020 31 December 2019 £000’s £000’s Net revenue after taxation 11,549 11,486 Expenses paid from capital 307 322 Gross distributions for the year 11,856 11,808
24 01 Cover & Aggregate_ASC311220 09-Apr-21 10:56 AM Page 25
Aberdeen Standard Capital Offshore Strategy Fund Limited Annual Report and Audited Financial Statements
Notes to the Aggregated Financial Statements (cont.)
10 Debtors
31 December 2020 31 December 2019 £000’s £000’s Accrued revenue 3,488 3,077 Amounts receivable from counterparties in respect of collateral on derivatives 424 278 Amount receivable for creation of shares 60 65 Income tax recoverable — 3 Prepaid expenses 54 Sales awaiting settlement 39 166 Total debtors 4,016 3,593
11 Cash and bank balances
31 December 2020 31 December 2019 £000’s £000’s Amount held at futures clearing houses and brokers 153 183 Cash held at bank 2,872 3,315 Money market deposit 2,021 850 Term deposits 8,875 16,758 Total cash and bank balances 13,921 21,106
12 Creditors
31 December 2020 31 December 2019 £000’s £000’s a) Distribution payable Gross distribution payable 3,188 3,143 Total distribution payable 3,188 3,143
b) Other creditors Accrued expenses 85 111 Amount payable for cancellation of shares 345 105 Amounts payable to counterparties in respect of collateral on derivatives 1,918 720 Purchases awaiting settlement 304 49 Total creditors 2,652 985
25 01 Cover & Aggregate_ASC311220 09-Apr-21 10:56 AM Page 26
Aberdeen Standard Capital Offshore Strategy Fund Limited Annual Report and Audited Financial Statements
Notes to the Aggregated Financial Statements (cont.)
13 Share capital
a) Authorised
31 December 2020 31 December 2019 US$ US$ 100 Management Shares £1 each 166 166 1,000,000,000 Unclassified Shares of US$0.01 each (becoming participating shares upon issue) 10,000,000 10,000,000 US$10,000,166 US$10,000,166
b) Issued and fully paid
31 December 2020 31 December 2019
Management Shares £1 each 100 100
Participating Shares of US$ 0.01 each Bridge Class - Retail Shares 3,236,554 3,639,796 Bridge Class - Z Shares 72,391,873 64,084,186 Global Equity Class - Retail Shares 715,815 743,706 Global Equity Class - Z Shares 21,041,030 24,874,619 Global Fixed Interest Class - Retail Shares 972,634 1,647,524 Global Fixed Interest Class - Z Shares 212,910,725 200,073,768 Income Class - Retail Shares 385,587 288,781 Income Class - Z Shares 149,596,320 143,200,861 Sterling Fixed Interest Class - Retail Shares 561,009 848,854 Sterling Fixed Interest Class - Z Shares 245,871,848 211,434,948 UK Equity Class - Retail Shares 547,958 657,093 UK Equity Class - Z Shares 19,139,179 22,228,622 727,370,532 673,722,758
There were no nominal shares in issue at either 31 December 2020 or 31 December 2019.
Under section 22.3 of FRS 102, the participating shares of each Class fall under the definition of a ''financial liability'' as Shares can be redeemed at the direction of the Participating Shareholders. Whilst Participating Shares are not within the definition of “equity”, they hold in substance the equity interest of Shareholders.
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Aberdeen Standard Capital Offshore Strategy Fund Limited Annual Report and Audited Financial Statements
Notes to the Aggregated Financial Statements (cont.)
13 Share Capital (cont.) Holders of Nominal Shares are entitled to convert any Nominal Shares held into Participating Shares of any Share c) Principal Rights Class by paying to the Company on a Dealing Day, an The principal rights attaching to the three types of shares amount equal to the creation price of a Participating Share available for issue are as follows: on that day less its nominal value. No such conversions i) Management Shares may take place on a day when the repurchase of The Management Shares were created to comply with the Participating Shares of the Share Class in question has Collective Investment Funds (Jersey) Law 1988, under which been suspended or if any creation or cancellation there must be a class of non-redeemable shares in issue in application by the Manager in connection with the order that the Participating Shares of US$0.01 par value conversion is refused. and the Nominal Shares of US$0.01 par value may be Where the repurchase of Participating Shares has been redeemable. suspended and/or any creation or cancellation application The Management Shares of £1 par value are not made by the Manager refused, conversion of the Nominal redeemable, and in accordance with the Articles of Shares will be made on the Dealing Day next following the Association, are owned by the Manager or their nominees. end of such suspension or refusal as the case may be. At both a General Meeting and a Class Meeting every The Company may from time to time on any Dealing Day holder of Management Shares is entitled, on a show of redeem all or any Nominal Shares in issue out of the hands, to one vote and, on a poll, to one vote in respect of monies which may lawfully be applied for this purpose. each Management Share held. No transfer of Management Shares and Nominal Shares ii) Participating Shares may be carried out without the prior written consent of the The Participating Shares, having a par value of US$0.01 Directors. each, may be issued in Share Classes designated in any currency. The Participating Shares are the only shares d) Winding-up which will be issued to the public. In a winding-up of the Company the Participating Shares of any Share Class rank: Currently each Fund Class of the Company issues two classes of Participating Shares: Retail Participating Shares i) in priority to the Nominal Shares and the Management and Z Participating Shares (the “Retail Shares” and the Shares, for the return of their paid-up US$0.01 par value as “Z Shares” respectively). to which recourse will be had in the following manner:
At both a General Meeting or at a Class Meeting every 1 to the assets attributable to the relevant Share Class of holder of Participating Shares of the relevant Fund Class is Participating Shares; entitled, on a show of hands, to one vote and, on a poll, to 2 to the assets of the Company not comprised in any Share one vote in respect of each whole Participating Share held. Class; and iii) Nominal Shares 3 to the assets attributable to any other Share Classes, after The Nominal Shares of US$0.01 par value are non- payment of the par value of the Participating Shares of participating Redeemable Preference Shares and are those Share Classes, pro rata to the total value of the issued for the purpose of providing funds for the assets comprised in those Share Classes. redemption of the nominal value of Participating Shares. They can only be issued at par and, in practice, only to the ii) pari passu with all other Participating Shares of the same Manager. In a winding-up, they rank for return of their Share Class for the balance of the surplus assets of the paid-up par value after the Participating Shares and in corresponding Share Class remaining after the payment of priority to the Management Shares, but have no rights to the par value on each Participating Share as described any further participation in the surplus assets of the above. Company and no recourse to assets of any Share Class. A iii) pari passu with all other Participating Shares of all Share holder is entitled, on a show of hands and on a poll, to one Classes for surplus assets of the Company remaining vote in respect of all Nominal Shares held by him/her, following (i) and (ii) above and the payment of the par value irrespective of the number held. on the Management Shares and Nominal Shares. The Manager has undertaken to subscribe for Nominal The liquidator has power to transfer assets to and from Shares to provide for the redemption of the nominal value Share Classes in the course of the winding-up of the of the Participating Shares. Company in order to share the effective burden of creditors’ claims against the Company on an equitable basis.
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Aberdeen Standard Capital Offshore Strategy Fund Limited Annual Report and Audited Financial Statements
Notes to the Aggregated Financial Statements (cont.)
14 Financial Instruments and Related Risks Interest rate risk Interest rate risk is the risk that the value of the Fund The Fund Classes’ assets and liabilities comprise of financial Classes’ investment holdings will fluctuate as a result of instruments held in accordance with their respective changes in interest rates. Some of the Fund Classes invest investment objectives and policies. Set out below is a in fixed and floating rate securities. description of the principle risks inherent in the Fund Classes’ activities along with the actions taken to manage The revenue of these Fund Classes may be affected by these risks. changes to interest rates relevant to particular securities or as a result of the Investment Manager being unable to Market price risk secure similar returns on the expiry of contracts or sale of Market price risk is the risk that the value of the Fund securities. The value of fixed interest securities may be Classes’ investment holdings will fluctuate as a result of affected by interest rate movements or the expectation of changes in market prices caused by factors other than such movements in the future. Interest receivable on bank interest rate or foreign currency movement. Market price deposits or payable on bank overdraft positions will be risk arises mainly from uncertainty about future prices of affected by fluctuations in interest rates. The benchmark financial instruments the Fund Class might hold. It rate is the Bank of England base rate. Sterling represents the potential loss the Fund Class might suffer denominated credit bank balances currently bear interest through holding market positions in the face of price at 0.04%, and Sterling overdraft bank balances at the movements. The Fund Classes’ investment portfolios are benchmark rate plus 100bps. The interest rate profile of exposed to market price fluctuations which are monitored the relevant Fund Classes is shown in their Notes to the by the Investment Manager in pursuance of the investment Financial Statements. objective and policy as set out in the Prospectus. Interest rate risk is measured in terms of duration Adherence to investment guidelines and to investment and (sensitivity to rising or falling yields). The Investment borrowing powers set out in the Prospectus mitigates the Manager determines how much duration to assume, based risk of excessive exposure to any particular type of security on assessment of the likely future direction of interest or issuer. rates, and taking account of the objectives and risk Foreign currency risk tolerance of the Fund Classes. Foreign currency risk is the risk that the value of the Fund Liquidity risk Classes’ investment holdings will fluctuate as a result of The assets of the Fund Classes comprise mainly of readily changes in foreign currency exchange rates. realisable securities. The main liquidity risk to the Fund A proportion of the Fund Classes’ investment portfolio is Classes is the redemption of any shares that investors wish invested in overseas securities and the Statement of to sell. Assets of the Fund Classes may need to be sold if Financial Position can be affected by movements in foreign insufficient cash is available to finance such redemptions. exchange rates. The Investment Manager may seek to Since the Fund Classes’ accounting year end, there have manage exposure to currency movements by using been sufficient cash resources available to finance any forward exchange contracts or by hedging the Sterling such redemptions. value of investments that are priced in other currencies. From time to time market liquidity may be affected by Revenue received in other currencies is converted to economic events. To manage these risks, the Investment Sterling on or near the date of receipt. The foreign Manager undertakes research of investment opportunities currency risk profile for the relevant Fund Classes is shown to select opportunities congruent with the Fund Classes’ in their Notes to the Financial Statements. investment objective. All stocks are valued daily and are reviewed for pricing accuracy as the need arises. The Investment Manager has considered the liquidity of the stocks in the portfolio, however the risk of low market liquidity, through reduced trading volumes, may affect the future ability of the Fund Classes to trade financial instruments at values previously indicated by financial brokers.
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Aberdeen Standard Capital Offshore Strategy Fund Limited Annual Report and Audited Financial Statements
Notes to the Aggregated Financial Statements (cont.)
14 Financial Instruments and Related Risks (cont.) Fair Value of Financial Assets and Financial Liabilities There is no material difference between the carrying value Counterparty risk of financial assets and liabilities, as shown in the Statement Certain transactions in securities that the Fund Classes of Financial Position, and their fair value. A fair value enter into expose them to the risk that the counterparty measurement is categorised in its entirety on the basis of will not deliver the investment for a purchase, or cash for a the lowest level input that is significant to the fair value sale after the Fund Classes have fulfilled their measurement of its entirety. The fair value hierarchy has responsibilities. The Fund Classes only buy and sell the following levels: investments through brokers which have been approved by the Investment Manager as an acceptable counterparty. Level 1: The unadjusted quoted price in an active market In addition, limits are set to the exposure to any individual for identical assets or liabilities that the entity can access at broker that may exist at any time and changes in brokers’ the measurement date. financial ratings are reviewed. This counterparty risk is Level 2: Inputs other than quoted prices included within reduced by the Manager, through the use of collateral Level 1 that are observable (i.e. developed using market management. data) for the asset or liability, either directly or indirectly. Credit risk Level 3: Inputs are unobservable (i.e. for which market data At the Statement of Financial Position date the table below is unavailable) for the asset or liability. shows the percentage of the Fund Classes’ assets that were held in corporate bonds. Corporate bonds involve the risk Valuation of financial investments are disclosed within the that the bond issuer will be unable to meet its liability to Notes to the Financial Statements of each Fund Class. pay interest or redeem the bond. The Manager selects The Financial Risk Management profiles for each Fund bonds taking into account the credit rating. Carrying Class is shown in their Notes to the Financial Statements. amount is believed to best reflect exposure to credit risk. 15 Dilution Levy 31.12.2020 31.12.2019 The need to charge a dilution levy will depend on the Bridge Class 9.86% 9.44% volume of sales or repurchases. The Manager may charge Global Equity Class 0.00% 0.00% a discretionary dilution levy on the sale and repurchase of Global Fixed Interest Class 65.73% 57.52% shares if, in its opinion, the existing shareholders (for sales) Income Class 8.63% 8.84% or remaining shareholders (for repurchases) might Sterling Fixed Interest Class 96.77% 95.98% otherwise be materially adversely affected. A dilution levy UK Equity Class 0.00% 0.00% must be imposed only in a manner which, so far as practicable, is fair to all shareholders or potential Derivative and other financial instrument risk shareholders. The Fund Classes also enter into derivative transactions in the form of forward foreign currency contracts, futures In particular, the dilution levy may be charged in the contracts and options contracts. The purpose of these following circumstances: on a Fund Class experiencing financial instruments is Efficient Portfolio Management. large levels of net sales relative to its size, on ‘‘large deals’’ Forward foreign currency contracts are used to manage (being a deal with a total value of 1% or more of the total currency risk arising from holdings of overseas securities. value of the relevant Fund Class), where a Fund Class is in continual decline, and in any other case where the Futures may be used to manage market price risk. The Manager is of the opinion that the interests of Fund Classes may use traded options to hedge stock which existing/remaining shareholders and any potential is owned. The purpose of undertaking these contracts is to shareholders require the imposition of a dilution levy. protect the portfolio as far as possible from a downturn in the markets.
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Aberdeen Standard Capital Offshore Strategy Fund Limited Annual Report and Audited Financial Statements
Notes to the Aggregated Financial Statements (cont.)
15 Dilution Levy (cont.) In order to reduce the volatility in the rate of any dilution levy, the Manager may take account of the trend of the Fund Class in question to expand or to contract, and the transactions in shares at a particular valuation point. As dilution is directly related to the inflows and outflows of monies from the scheme it is not possible to accurately predict whether dilution will occur at any point in time. If charged, the dilution levy will be shown in addition to (not as part of) the price of shares when they are sold by the Manager or as a deduction when they are repurchased by the Manager.
The Manager has no entitlement to the dilution levy, which will either be paid into the relevant Fund Class, in the case of a sale of shares, or retained in the Fund Class, in the case of a repurchase of shares.
16 Jersey Taxation Profits arising in the Company for the 2020 year of assessment was subject to Jersey Income Tax at a rate of 0% (2019: 0%).
The States of Jersey introduced a Goods and Services Tax (‘‘GST’’) with effect from 6 May 2008. The Company does not suffer any irrecoverable GST, as it has applied to the Comptroller of Income Tax for inclusion on the list of International Services Entities of its administrator BNP Paribas Securities Services S.C.A., Jersey Branch.
17 Audit The provision for the audit fee is £53,900 (2019: £51,900).
18 Contingent Liabilities/Assets and Commitments Neither the Company nor any of the Fund Classes have contingent liabilities, assets or commitments at 31 December 2020 (2019: £Nil).
19. Significant control and related parties Aberdeen Standard Capital Offshore Strategy Fund Limited is a joint arrangement governed by the regulations, the board and initial offer documentation. This framework means there are no controlling parties of the arrangement. Aberdeen Standard Capital (CI) Limited, as Manager, is a related party by virtue of providing key management personnel to the arrangement and acts as principal in respect of all transactions in the shares of the Company.
The Related Party transactions for each Fund is shown in their Notes to the Financial Statements.
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Aberdeen Standard Capital Offshore Strategy Fund Limited Bridge Class
Fund Report
Environment As active managers, we took steps during the year to increase Covid-19 was the dominant factor in 2020. It negatively exposure to stocks that should benefit from the recovery but affected financial markets during the first quarter but markets are also underpinned by structural growth. Within industrials, have broadly recovered since April. Positive vaccine news, a the train manufacturer Alstom and electrical component contentious US presidential election and nail-biting Brexit manufacturer Schneider Electric performed strongly. The finale headlined the final quarter of the year, adding packaging company DS Smith benefited from a recovery in momentum to the equity market rally and pushing the US industry and more stable pricing. Building materials company stock market to an all-time high by the year-end. CRH rose on a recovery in building and construction, as well as being a beneficiary of fiscal stimulus. Globally, stock markets rose over the 12-month period but with considerable divergence by country. While US and Strong stock selection contributed to returns. Within financials, Chinese stocks performed well, markets in many other the Fund benefited from its light position in banks during the countries recorded sharp falls. Shares in the UK and Latin first half of the year. After the stock market correction, these America fared particularly badly. stocks failed to recover alongside the wider market, as lower interest rates, rising corporate debt and regulatory pressure to Interest-rate cuts were prevalent over the period. The US cut dividends depressed investor sentiment. Federal Reserve reduced the main rate twice in March, with the final cut taking the main US rate to near zero. The ‘lower for The structural growth trends that underpin our investments in longer’ rhetoric from central banks around the world remained technology companies remained in rude health, with some supportive of risk assets and held bond yields in check. areas benefiting from acceleration in various behaviours. Secular tailwinds, including sharply rising demand for cloud The second wave of Covid-19 strained capacity of health services services as people self-isolated and worked from home, drove globally and new variants added further uncertainty. However, a the sector’s strong performance. This benefited the Fund’s burgeoning vaccination programme and established monetary largest holding, Microsoft. The crisis has made the need for and fiscal support provided a far more certain backdrop this connectivity even more apparent. This explains the strong time around. Both the US and the EU announced expanded performance of our holdings in Taiwanese chipmaker Taiwan stimulus measures in December. The Bank of England boosted Semiconductor Manufacturing Company (TSMC) and Dutch its bond-buying scheme and the UK government announced the lithography company ASML. Our holdings in videogames extension of its furlough scheme till the end of April 2021. Many companies Ubisoft Entertainment and Activision Blizzard areas of the economy have adapted to this constrained benefited from people staying at home and turning to gaming environment. Globally, manufacturing continues to show more for entertainment. resilience than many parts of the services sector. In utilities, diversification into renewable energy benefited the Performance Fund’s performance. The wind farm operator Ørsted was a top While 2020 has been an unpredictable year, we are pleased to contributor to active return. Positive stock selection of BBGI, report that our quality, sustainable growth approach led to the Renewables Infrastructure, Bluefield Solar Income Fund and Fund outperforming not only our internal benchmark but also Greencoat Renewables also helped performance. the peer group, as measured by Asset Risk Consultants (ARC), during 2020. The Fund returned 10.9% versus the benchmark The main detractor from relative performance during the first return of 5% and was ahead of the ARC Steady Growth peer half was an underweight allocation to gilts – the only asset group performance of 4.9%. class in our investable universe that went up in value during the six-month period. That had turned on its head by the year- Equity stock selection drove the Fund’s performance. It remains end; the risk-on environment meant gilts were the weakest focused on investments that are underpinned by structural asset class in our investable universe and the Fund’s relatively growth trends, high-quality balance sheets and management, low allocation to gilts became a positive contributor. and good visibility on how they will achieve growth. The resilience of this approach meant that the Fund weathered the market falls and start of the market recovery in the first three quarters of the year relatively well. The Fund also participated in the fourth quarter equity market rally; it rose in value, albeit to a lesser degree than the broader market. As vaccine approvals became imminent in November, areas of the market most sensitive to a recovery in the economic cycle led the market. Our approach is designed to lock in growth that is less dependent on the economic cycle and more sustainable over the long term.
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Aberdeen Standard Capital Offshore Strategy Fund Limited Bridge Class
Fund Report (cont.)
Activity Outlook Sharp falls in the market during the first half of the year gave The global economic outlook is dominated by two conflicting us the opportunity to initiate positions in certain stocks on our forces: an intense second wave of Covid-19 in Europe and wish list. These included West Pharmaceuticals Services (WPS), North America that is already weighing on recoveries, and a high-quality, mid-cap, US company that works with global recent news of highly effective vaccines, which raises the pharmaceutical firms to provide containers for the delivery of likelihood of an eventual return to ‘normal’ life. The prospect liquid-form drugs. WPS benefits from high barriers to entry, of a number of vaccines being rolled out offers an eventual low product costs and its contracts mean that revenues are ‘escape hatch’ out of the pandemic and its economics effects. recurring and locked in for several years. It is working closely However, hurdles lie ahead. A multi-year, sustained effort will with pharmaceutical companies on Covid-19 vaccinations and be required to achieve global inoculation, which will be subject treatments. We also purchased Hermes International. The to manufacturing, distribution and compliance challenges. We luxury accessories and apparel retailer has a long heritage and can’t help but temper some of the recent vaccine optimism. very strong brand, which supports enduring pricing power. We believe the current retightening of restrictions in the UK, Another purchase was Alstom, the French industrial company US and Europe has further to run, and meaningful loosening that has transformed itself into one of the leading providers won’t get underway until well into the first quarter of 2021. of rail equipment. We, therefore, expect economic activity to flat-line through the Cognisant of the considerable rally in technology and utility winter. But from mid-2021 onwards, these economies should stocks, we took profits (while retaining positions) in a number benefit strongly from vaccine rollout, given their large pre- of holdings, including TSMC, ASML and Amazon, during the orders and the size of the service sector in economic output. second half. Given the arrival of vaccines and a clearer path to Trade barriers between the US and China are unlikely to economic recovery, we increased exposure to economically ratchet rapidly lower, but foreign policy will at least no longer sensitive companies that are also beneficiaries of structural be done ‘via tweet’, with a less volatile and more multilateral growth. In the third quarter, we added Schneider Electric. It is approach pursued instead. This should be positive for animal supported by two long-term structural trends, the first being spirits across the broader emerging markets. We think China is energy efficiency, electrification and digitalisation, and the the large economy emerging from the pandemic in the second being industrial automation. In the fourth quarter, we strongest shape. Successful containment of the virus and a added Generac, a leading designer and manufacturer of power stimulative policy stance mean its economy has already generation equipment and power products. We also bought surpassed pre-pandemic levels. Domestic vaccine efforts are Shimano, a high-quality bicycle parts manufacturer with a also bearing fruit. That said, the focus of policy in China will leading market position, cash-rich balance sheet and decent progressively move away from fighting Covid-19 towards profitability record. managing financial risks, de-escalating tensions with the US Within mining, we reinstated BHP during the third quarter. It and achieving its long-term growth and emissions targets. had underperformed Rio Tinto, which we already owned. We We continue to concentrate on companies underpinned by deemed BHP to be well positioned with long-life, low-cost and long-term structural growth. We seek to identify businesses well-invested assets in low-risk jurisdictions. It has a strong that will benefit from shifting trends, while avoiding those balance sheet and is slightly more diversified, with less where change will be detrimental. Experience has taught us reliance on iron ore than Rio Tinto, which we trimmed that companies that have strong balance sheets and can marginally to manage our overall exposure to mining. create value by generating cash flow in excess of their Sales during the period focused on stocks in which we had less operational requirements tend to generate stronger, more conviction or felt looked vulnerable in the post-Covid-19 world. sustainable returns. They are usually better positioned to These included Schlumberger, one of the leading players in oil reinvest in their businesses and distribute earnings to field services; a sector we believe to be under even greater shareholders. These types of companies merit long-term pressure. We also reduced exposure to some of our more positions in portfolios regardless of shorter-term sentiment. consumer-facing holdings such as Estée Lauder. We sold EOG Resources (which had rallied 100% off its lows), Beazley and Treasury Wine Estates.
32 02 Bridge Class_ASC311219 09-Apr-21 10:56 AM Page 33
Aberdeen Standard Capital Offshore Strategy Fund Limited Bridge Class
Statistics
Price and Revenue Record by Share Class (Calendar Year)
Retail Shares Highest Price (p) Lowest Price (p) Net Revenue per share* (p)
2016 184.32 147.06 3.5181
2017 193.99 178.26 3.6588
2018 195.92 169.72 3.9138
2019 207.76 169.73 3.9914
2020 225.14 168.95 3.1960
Z Shares Highest Price (p) Lowest Price (p) Net Revenue per share* (p)
2016 57.08 45.29 1.2166
2017 60.42 55.31 1.2853
2018 61.49 53.47 1.3302
2019 66.00 53.46 1.4144
2020 72.07 53.73 1.1815
Net Asset Value History by Share Class
Retail Shares as at Net Asset Value (£) Pence per share Shares in issue
31 December 2018 6,574,344 169.93 3,868,908
31 December 2019 7,391,511 203.07 3,639,796
31 December 2020 7,184,306 221.97 3,236,554
Z Shares as at Net Asset Value (£) Pence per share Shares in issue
31 December 2018 32,274,133 53.51 60,310,444
31 December 2019 41,297,217 64.44 64,084,186
31 December 2020 51,382,916 70.98 72,391,873
*Distributions are shown in the year declared rather than paid.
33 02 Bridge Class_ASC311219 09-Apr-21 10:56 AM Page 34
Aberdeen Standard Capital Offshore Strategy Fund Limited Bridge Class
Statistics (cont.)
Top Ten Purchases and Sales The table below shows the top ten purchases and sales (excluding any derivative transactions) for the year:
Purchases £000’s Sales £000’s Alstom 948 UK Treasury 3.25% 22/1/2044 708 Procter & Gamble 843 Reckitt Benckiser 628 Generac 720 BP 548 Tencent 714 Beazley 496 Schneider Electric 687 Treasury Wine Estates 490 BHP 686 Ubisoft Entertainment 463 Ashmore 664 EOG Resources 422 West Pharmaceutical Services 502 Microsoft 375 Shimano 493 Taiwan Semiconductor Manufacturing ADS 357 Hermes International 477 Equinix 331
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Aberdeen Standard Capital Offshore Strategy Fund Limited Bridge Class
Portfolio Statement as at 31 December 2020
Investments Holding Market Value Total Net Assets £000’s % UK Government Stocks 2.48% (3.58%)
UK Treasury 1.5% 22/7/2047 GBP 1,227,000 1,452 2.48
Overseas Government Bonds 0.28% (0.33%)
Saudi Arabia 4% 17/4/2025 USD 200,000 163 0.28
Sterling Denominated Corporate Bonds 7.07% (6.96%)
America Movil 5% 27/10/2026 GBP 200,000 246 0.42 AT&T 4.375% 14/9/2029 GBP 134,000 166 0.28 Aviva 6.125% FRN 14/11/2036 GBP 140,000 173 0.30 Barclays 3.25% 17/1/2033 GBP 170,000 199 0.34 Barclays 10% 21/5/2021 GBP 100,000 103 0.18 BMW Finance 0.875% 16/8/2022 GBP 125,000 126 0.22 BP Capital Markets 4.25% Perpetual GBP 300,000 322 0.55 Centrica 7% 19/9/2033 GBP 100,000 164 0.28 Close Brothers 2.75% 26/4/2023 GBP 100,000 104 0.18 Digital Stout 4.25% 17/1/2025 GBP 100,000 114 0.19 Eastern Power Networks 5.75% 08/3/2024 GBP 154,000 179 0.31 Experian Finance 3.25% 07/4/2032 GBP 100,000 122 0.21 Fidelity National Information Services 2.602% 21/5/2025 GBP 223,000 243 0.41 GlaxoSmithKline Capital 5.25% 19/12/2033 GBP 152,000 230 0.39 Heathrow Funding 2.75% 09/8/2051 GBP 100,000 108 0.18 Heathrow Funding 5.225% 15/2/2023 GBP 100,000 109 0.19 HSBC 5.75% 20/12/2027 GBP 109,000 138 0.24 Legal & General 5.375% 27/10/2045 GBP 100,000 117 0.20 Lloyds Banking 2.25% 16/10/2024 GBP 100,000 105 0.18 Metropolitan Life Global Funding I 1.125% 15/12/2021 GBP 200,000 202 0.34 Nationwide Building Society 3.25% 20/1/2028 GBP 200,000 236 0.40 NatWest Markets 5.125% 13/1/2024 GBP 200,000 229 0.39 RL Finance Bonds No 3 6.125% 13/11/2028 GBP 100,000 126 0.22 Tesco Corporate Treasury Services 2.75% 27/4/2030 GBP 250,000 277 0.47
Non-Sterling Denominated Corporate Bonds 2.79% (2.48%)
ABN AMRO Bank 2.875% 18/1/2028 EUR 200,000 188 0.32 Activision Blizzard 3.4% 15/9/2026 USD 290,000 241 0.41 Altice France 5.875% 01/2/2027 EUR 125,000 119 0.20 Broadcom 4.15% 15/11/2030 USD 162,000 137 0.23 CaixaBank 3.5% 15/2/2027 EUR 200,000 184 0.32 Charter Communications 4.464% 23/7/2022 USD 258,000 199 0.34 EOG Resources 4.375% 15/4/2030 USD 298,000 265 0.45 Matterhorn Telecom 3.125% 15/9/2026 EUR 135,000 120 0.21 Standard Chartered 2.2701% FRN Perpetual USD 100,000 67 0.12 WMG Acquisition 3.625% 15/10/2026 EUR 122,000 113 0.19
35 02 Bridge Class_ASC311219 09-Apr-21 10:56 AM Page 36
Aberdeen Standard Capital Offshore Strategy Fund Limited Bridge Class
Portfolio Statement (cont.)
Investments Holding Market Value Total Net Assets £000’s % United Kingdom 12.16% (18.89%)
Abcam 46,165 715 1.22 Ashmore 175,957 759 1.30 AstraZeneca 10,907 799 1.36 Countryside Properties 153,849 719 1.23 Dechra Pharmaceuticals 19,637 677 1.15 DS Smith 205,893 771 1.32 GlaxoSmithKline 45,020 604 1.03 Prudential 81,907 1,103 1.88 RELX 54,476 976 1.67
Investment Trusts 3.95% (5.01%)
BBGI 330,554 574 0.98 Greencoat UK Wind 456,095 611 1.04 International Public Partnership 335,750 571 0.98 Sequoia Economic Infrastructure Income Fund 505,102 555 0.95
China 4.12% (2.54%)
Alibaba ADS 4,747 808 1.38 Ping An Insurance 104,020 932 1.59 Tencent 12,700 676 1.15
United States of America 35.33% (33.55%)
Accenture 6,843 1,306 2.23 Activision Blizzard 20,096 1,364 2.33 Allegion 6,979 594 1.01 Alphabet 'A' 906 1,160 1.98 Amazon 540 1,286 2.20 American Tower 4,790 786 1.34 Boston Scientific 27,703 728 1.24 Comcast ‘A’ 32,831 1,259 2.15 Equinix 1,366 713 1.22 Estee Lauder ‘A’ 4,290 835 1.43 First Republic Bank 12,443 1,337 2.28 Generac 4,390 730 1.25 Intuit 3,112 865 1.48 MasterCard ‘A’ 4,910 1,280 2.18 Medtronic 9,529 816 1.39 Microsoft 10,340 1,681 2.87 NextEra Energy 19,100 1,077 1.84 Procter & Gamble 8,625 877 1.50 Visa 7,003 1,120 1.91 West Pharmaceutical Services 4,228 876 1.50
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Aberdeen Standard Capital Offshore Strategy Fund Limited Bridge Class
Portfolio Statement (cont.)
Investments Holding Market Value Total Net Assets £000’s % Australia 2.97% (3.00%)
BHP 40,855 786 1.34 Rio Tinto (UK Regd.) 17,456 955 1.63
Italy 2.10% (1.89%)
Enel 166,052 1,230 2.10
Japan 0.81% (0.00%)
Shimano 2,800 477 0.81
Jersey 1.05% (0.99%)
3i Infrastructure 199,426 614 1.05
Taiwan 2.69% (2.14%)
Taiwan Semiconductor Manufacturing ADS 19,767 1,577 2.69
Denmark 2.96% (1.70%)
Ørsted 11,543 1,733 2.96
France 5.69% (1.11%)
Alstom 28,698 1,197 2.04 Hermes International 902 710 1.21 Schneider Electric 7,523 797 1.36 Ubisoft Entertainment 8,911 629 1.08
Guernsey 1.07% (1.29%)
Bluefield Solar Income Fund 220,369 284 0.48 Renewables Infrastructure 271,025 345 0.59
Ireland 2.39% (1.80%)
CRH 26,442 809 1.38 Greencoat Renewables 564,034 588 1.01
Netherlands 3.64% (4.36%)
ASML 3,996 1,422 2.43 Royal Dutch Shell 'B' (UK Regd.) 56,352 710 1.21
Switzerland 4.48% (4.90%)
Nestlé (Regd.) 12,468 1,076 1.84 Novartis (Regd.) 10,665 738 1.26 Roche Holding 3,166 810 1.38
Derivatives 0.12% (0.06%)
EUR Forward Foreign Currency Contracts 0.02% (0.02%)
Forward Foreign Currency Contracts 7/1/2021 EUR 823,806 737 1.26 Forward Foreign Currency Contracts 7/1/2021 GBP (746,934) (746) (1.28) Forward Foreign Currency Contracts 7/1/2021 EUR (798,864) (715) (1.22) Forward Foreign Currency Contracts 7/1/2021 GBP 726,460 727 1.24
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Aberdeen Standard Capital Offshore Strategy Fund Limited Bridge Class
Portfolio Statement (cont.)
Investments Holding Market Value Total Net Assets £000’s %
EUR Forward Foreign Currency Contracts (cont.)
Forward Foreign Currency Contracts 7/1/2021 EUR (24,942) (22) (0.04) Forward Foreign Currency Contracts 7/1/2021 GBP 22,315 22 0.04 Forward Foreign Currency Contracts 24/3/2021 EUR (823,806) (738) (1.26) Forward Foreign Currency Contracts 24/3/2021 GBP 747,870 748 1.28
USD Forward Foreign Currency Contracts 0.10% (0.04%)
Forward Foreign Currency Contracts 7/1/2021 USD 1,479,487 1,082 1.85 Forward Foreign Currency Contracts 7/1/2021 GBP (1,095,988) (1,096) (1.87) Forward Foreign Currency Contracts 7/1/2021 USD (1,435,027) (1,050) (1.79) Forward Foreign Currency Contracts 7/1/2021 GBP 1,109,967 1,110 1.89 Forward Foreign Currency Contracts 7/1/2021 USD (44,460) (33) (0.06) Forward Foreign Currency Contracts 7/1/2021 GBP 33,264 33 0.06 Forward Foreign Currency Contracts 24/3/2021 USD (1,479,487) (1,082) (1.85) Forward Foreign Currency Contracts 24/3/2021 GBP 1,095,531 1,096 1.87
Portfolio of investments 57,486 98.15
Net current assets 1,081 1.85
Total net assets 58,567 100.00
Total unapproved and unquoted securities 0.00%.
Comparative figures in brackets refer to 31 December 2019.
Unless otherwise indicated, the holdings in the Portfolio Statement represent the ordinary shares, ordinary stock units, common shares or debt securities of the relevant companies or issuers, which are listed on an eligible securities market.
Portfolio Statement by asset class
Percentage Percentage Market value of total net assets Market value of total net assets December 2020 December 2020 December 2019 December 2019 £000’s % £000’s % Bonds 7,386 12.62 6,499 13.35 Equities 50,027 85.41 40,498 83.17 Derivatives 73 0.12 28 0.06 Portfolio of investments 57,486 98.15 47,025 96.58 Net current assets 1,081 1.85 1,664 3.42 Total net assets 58,567 100.00 48,689 100.00
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Aberdeen Standard Capital Offshore Strategy Fund Limited Bridge Class
Financial Statements for the year ended 31 December 2020
Statement of Total Return
31 December 2020 31 December 2019 Notes £000’s £000’s £000’s £000’s Income Net capital gains Net capital gains on investments 1 5,565 8,084 Other losses 1 (4) (21) 5,561 8,063 Revenue 2 1,115 1,176 Expenses 3 (108) (111) Interest payable and similar charges 5 (1) — Net revenue before taxation 1,006 1,065 Taxation 4 (124) (95) Net revenue after taxation 882 970 Total return before distributions 6,443 9,033 Distributions 6 (935) (1,026) Net increase in Shareholders’ funds from Investment activities 5,508 8,007
Statement of Movement in Shareholders’ Funds 31 December 2020 31 December 2019 £000’s £000’s £000’s £000’s Opening net assets attributable to Shareholders 48,689 38,848 Amounts receivable on creation of shares 6,190 4,400 Amounts payable on cancellation of shares (1,820) (2,566) 4,370 1,834 Net increase in Shareholders’ funds from investment activities (see above) 5,508 8,007 Closing net assets attributable to Shareholders 58,567 48,689
All results above are derived from continuing activities for both the current and prior years.
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Aberdeen Standard Capital Offshore Strategy Fund Limited Bridge Class
Financial Statements (cont.) as at 31 December 2020
Statement of Financial Position
31 December 2020 31 December 2019 Notes £000’s £000’s £000’s £000’s Assets Fixed assets Investment assets at fair value through profit or loss 57,509 47,025 Current assets Debtors 8 136 143 Cash and bank balances 9 1,351 2,044 Total current assets 1,487 2,187 Total assets 58,996 49,212 Liabilities Investment liabilities at fair value through profit or loss (23) — Creditors Distribution payable 10 (388) (485) Other creditors 10 (18) (38) Total other liabilities (406) (523) Total liabilities (429) (523) Net assets attributable to Shareholders 58,567 48,689
All liabilities are current.
The notes on pages 21 to 30 and pages 41 to 48 form part of the Financial Statements.
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Aberdeen Standard Capital Offshore Strategy Fund Limited Bridge Class
Notes to the Financial Statements for the year ended 31 December 2020
1 Net capital gains The net capital gains on investments during the year comprise: 31 December 2020 31 December 2019 £000’s £000’s Non-derivative securities* 5,550 8,040 Forward currency contracts* 21 51 Other losses – currency losses* (4) (21) Custodial transaction fees (6) (7) Net capital gains 5,561 8,063
*Net gains (excluding custodial transaction fees) listed above of £5,567,081 comprise net realised losses of £(551,287) and net unrealised gains of £6,118,368 (2019: £8,069,550 comprise net realised losses of £(261,775) and net unrealised gains of £8,331,325). £616,970 of the net realised gains in the current year had been shown as net unrealised gains in previous years (2019: £(1,432,752) net realised losses). 2 Revenue 31 December 2020 31 December 2019 £000’s £000’s Bank interest 1 1 Franked distributions from authorised funds 17 13 Interest on debt securities 204 192 Money market deposit 4 17 Overseas dividends 540 449 UK dividends 317 475 US REIT dividends 32 29 Total revenue 1,115 1,176
3 Expenses
31 December 2020 31 December 2019 £000’s £000’s Payable to the Manager or Associate of the Manager: Manager’s periodic charge 71 74 Registrar’s fees 11 72 75 Other expenses: Audit fees 6 8 Custodian fees 13 11 Directors’ fees 55 Other expenses 12 12 36 36 Total expenses 108 111
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Aberdeen Standard Capital Offshore Strategy Fund Limited Bridge Class
Notes to the Financial Statements (cont.)
4 Taxation 31 December 2020 31 December 2019 £000’s £000’s Withholding tax on overseas dividends 124 95 Total taxation 124 95
5 Interest payable and similar charges 31 December 2020 31 December 2019 £000’s £000’s Interest payable 1— Total interest payable and similar charges 1—
6 Distributions The distributions take account of equalisation amounts added on the creation of shares and equalisation amounts deducted on the cancellation of shares. They comprise: 31 December 2020 31 December 2019 £000’s £000’s Interim distribution 30 June 566 549 Final distribution 31 December 388 485 954 1,034 Amounts added on creation of shares (26) (27) Amounts deducted on cancellation of shares 7 19 Gross distributions for the year 935 1,026
Details of the distribution per share are set out on the statements on page 49. 7 Net movement between revenue after taxation and distributions 31 December 2020 31 December 2019 £000’s £000’s Net revenue after taxation 882 970 Expenses paid from capital 53 56 Gross distributions for the year 935 1,026
8 Debtors 31 December 2020 31 December 2019 £000’s £000’s Accrued revenue 135 142 Prepaid expenses 11 Total debtors 136 143
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Aberdeen Standard Capital Offshore Strategy Fund Limited Bridge Class
Notes to the Financial Statements (cont.)
9 Cash and bank balances 31 December 2020 31 December 2019 £000’s £000’s Cash held at bank 163 163 Term deposits 1,188 1,881 Total cash and bank balances 1,351 2,044
10 Creditors 31 December 2020 31 December 2019 £000’s £000’s a) Distribution payable Gross distribution payable 388 485 Total distribution payable 388 485
b) Other creditors Accrued expenses 18 21 Amounts payable for cancellation of shares — 17 Total other creditors 18 38
11 Related party transactions Manager’s periodic charge and Registrar’s fees payable to Aberdeen Standard Capital (CI) Limited are shown in Note 3. The aggregate monies received through creation and paid through cancellation of shares are disclosed in the Statement of Movement in Shareholders’ Funds and Note 6. Any amounts due to or from the Manager at the year end are disclosed in Notes 8 and 10. The total balance due to the Manager in respect of Manager’s periodic charge and Registrar’s fees at 31 December 2020 is £6,249 (2019: £6,800).
Directors’ fees payable to the Board of Directors are shown in Note 3.
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Aberdeen Standard Capital Offshore Strategy Fund Limited Bridge Class
Notes to the Financial Statements (cont.)
12 Financial Instruments a) Interest rate risk The table that follows details the interest rate risk profile of the Bridge Class assets at 31 December 2020.
Floating Rate Fixed Rate Non-Interest Bearing Investment Investments Investments Total £000’s £000’s £000’s £000’s Investment assets 240 7,146 50,123 57,509 Investment liabilities —— (23) (23)
The table that follows details the interest rate risk profile of the Bridge Class assets at 31 December 2019.
Floating Rate Fixed Rate Non-Interest Bearing Investment Investments Investments Total £000’s £000’s £000’s £000’s Investment assets 235 6,264 40,526 47,025 Investment liabilities —— ——
b) Foreign currency risk The table that follows details the foreign currency risk profile of the Bridge Class assets at the Statement of Financial Position date.
31 December 2020 31 December 2020 31 December 2020 31 December 2019 Investments Net Current Assets Total Total £000’s £000’s £000’s £000’s Australian Dollar — — — 787 Danish Krone 1,733 — 1,733 827 Euro 6,559 107 6,666 2,785 Hong Kong Dollar 1,608 — 1,608 732 Japanese Yen 477 1 478 — Swiss Franc 2,624 — 2,624 2,601 US Dollar 23,065 91 23,156 17,982 Total 36,066 199 36,265 25,714
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Aberdeen Standard Capital Offshore Strategy Fund Limited Bridge Class
Notes to the Financial Statements (cont.)
12 Financial Instruments (cont.) c) Credit risk Counterparty Details of OTC Financial Derivative Transactions The counterparty exposure is shown below:
31 December 2020 31 December 2020 31 December 2019 31 December 2019 Forwards Total Exposure Forwards Total Exposure Broker £000’s £000’s £000’s £000’s Barclays 60 60 19 19 Deutsche Bank 1 1 99 UBS 12 12 —— 73 73 28 28
Counterparty exposure has not been disclosed for exchange traded derivatives as the exchange requirements in respect of collateral mean that, in the opinion of the Manager, the counterparty risk is mitigated. Credit quality The credit quality of the Fund’s investments in debt securities is shown below:
31 December 2020 31 December 2019 Credit quality % of Net Assets % of Net Assets Investment grade 11.90 12.04 Non-investment grade 0.72 1.08 Not rated — 0.23 Total bonds 12.62 13.35
d) Valuation of financial investments The following table analyses within the fair value hierarchy the assets and liabilities (by class of financial instrument) measured at fair value.
Level 1 Level 2 Level 3 Total £000’s £000’s £000’s £000’s 31 December 2020 Bonds — 7,386 — 7,386 Equities 50,027 — — 50,027 Derivatives — 73 — 73 50,027 7,459 — 57,486 31 December 2019 Bonds — 6,499 — 6,499 Equities 40,498 ——40,498 Derivatives — 28 — 28 40,498 6,527 — 47,025
The different levels of the fair value hierarchy are defined on page 29.
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Aberdeen Standard Capital Offshore Strategy Fund Limited Bridge Class
Notes to the Financial Statements (cont.)
12 Financial Instruments (cont.) e) Sensitivity analysis Please note that the absolute Value at Risk (“VaR”) approach has been used for risk measurement and calculation of global exposure for this Fund.
VaR is a measure of the maximum potential loss to the Fund due to market risk. More particularly, VaR measures the maximum potential loss at a given confidence level (probability) over a specific time period under normal market conditions.
On the above basis the VaR has been as follows:
For the year 1 January 2020 to 31 December 2020: VaR % Highest 8.55 Average 7.34 Lowest 4.50
This means that, at its highest point during the year, there was a 1% chance of the portfolio value falling (or rising) more than 8.55% in a one month period. This calculation is generally determined by the use of an industry recognised medium term risk model, typically based on 3-5 year history. This method assumes normal market conditions and that the portfolio remains unchanged.
For the year 1 January 2018 to 31 December 2019: VaR % Highest 6.94 Average 6.51 Lowest 6.14
Leverage is calculated as the sum of the notionals of the derivatives used. The level of leverage employed during the relevant year was 100%. 13 Portfolio transaction costs For the year 1 January 2020 to 31 December 2020
Value Commissions Taxes Purchases £000’s £000’s % % % Equity Instruments 10,330 4 0.04 19 0.18 Debt Instruments 1,668 — — — — Collective Investment schemes 310 — — — — Total purchases 12,308 4 19 Total purchases including transaction costs 12,331
Sales Equity Instruments 6,010 3 0.05 — — Debt Instruments 1,221 — — — — Collective Investment schemes 220 — — — — Total sales 7,451 3 — Total sales including transaction costs 7,448 Total transaction costs 7 19 Total transaction costs as a % of average net assets 0.01% 0.04%
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Aberdeen Standard Capital Offshore Strategy Fund Limited Bridge Class
Notes to the Financial Statements (cont.)
13 Portfolio transaction costs For the year 1 January 2019 to 31 December 2019
Value Commissions Taxes Purchases £000’s £000’s % % % Equity Instruments 12,345 5 0.04 19 0.15 Debt Instruments 1,661 — — — — Collective Investment schemes 1,122 1 0.04 — — Total purchases 15,128 6 19 Total purchases including transaction costs 15,153
Sales Equity Instruments 10,753 5 0.05 1 0.01 Debt Instruments 2,033 — — — — Collective Investment schemes 455 1 0.14 — — Total sales 13,241 6 1 Total sales including transaction costs 13,234 Total transaction costs 12 20 Total transaction costs as a % of average net assets 0.03% 0.04%
The above analysis covers any direct transaction costs suffered by the Fund during the year. However it is important to understand the nature of other transaction costs associated with different investment asset classes and instruments types.
Separately identifiable direct transaction costs (commissions & taxes etc.) are attributable to the Fund's purchase and sale of equity shares. Additionally for equity shares there is a dealing spread cost (the difference between the buying and selling prices) which will be suffered on purchase and sale transactions.
For the Fund's investment transactions in debt and money market instruments any applicable transaction charges form part of the dealing spread for these instruments. Transactions in money market instruments to manage the Fund's daily liquidity position are excluded from the analysis.
For the Fund's investment in collective investment scheme holdings there will potentially be dealing spread costs applicable to purchases and sales. However additionally there are indirect transaction costs suffered in those underlying funds, throughout the holding period for the instruments, which are not separately identifiable and do not form part of the analysis above.
Dealing spread costs suffered by the Fund vary considerably for the different asset/instrument types depending on a number of factors including transaction value and market sentiment.
At the Statement of Financial Position date the average portfolio dealing spread (difference between bid and offer prices of all investments expressed as a percentage of the offer price value) was 0.18% (2019: 0.12%).
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Aberdeen Standard Capital Offshore Strategy Fund Limited Bridge Class
Notes to the Financial Statements (cont.)
14 Share movement For the year 1 January 2020 to 31 December 2020
Retail Shares Z Shares Opening shares 3,639,796 64,084,186 Shares issued 45,506 9,673,962 Shares redeemed (448,748) (1,366,275) Shares converted — — Closing shares 3,236,554 72,391,873
15 Post Statement of Financial Position Events Since the year end, markets and operations have continued to be disrupted by the effects of the Covid-19 pandemic. Since the year end the NAV per share has decreased by 0.31% (to 31 March 2021). Contingency plans at the Manager and key service suppliers have proven effective in mitigating the effects on management of the portfolio and on all supporting operations.
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Aberdeen Standard Capital Offshore Strategy Fund Limited Bridge Class
Distribution Statements
Final Distribution For the six months ended 31 December 2020
Group 1: Shares purchased prior to 1 July 2020 Group 2: Shares purchased 1 July 2020 to 31 December 2020
(In pence per share) Net Revenue Equalisation* Amount Payable Retail Shares Group 1 1.2372 0.0000 1.2372 Group 2 0.7540 0.4832 1.2372 Z Shares Group 1 0.4802 0.0000 0.4802 Group 2 0.1944 0.2858 0.4802
The final distribution for the period ended 31 December 2019 was 1.8124 pence per Retail share and 0.6541 pence per Z share. Interim Distribution For the six months ended 30 June 2020
Group 1: Shares purchased prior to 1 January 2020 Group 2: Shares purchased 1 January 2020 to 30 June 2020
(In pence per share) Net Revenue Equalisation* Amount Paid Retail Shares Group 1 1.9588 — 1.9588 Group 2 1.3254 0.6334 1.9588 Z Shares Group 1 0.7013 — 0.7013 Group 2 0.4467 0.2546 0.7013
The interim distribution for the six months ended 30 June 2019 was 2.1790 pence per Retail share and 0.7603 pence per Z share.
*Equalisation applies to shares purchased during the distribution period (Group 2 shares). It is the average amount of revenue included in the purchase price of all Group 2 shares and is refunded to holders of these shares as a return of capital.
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Aberdeen Standard Capital Offshore Strategy Fund Limited Global Equity Class
Fund Report
Environment Stock selection within financials was a notable contributor to Covid-19 was the dominant factor in 2020. It negatively positive relative performance due to the holding in First affected financial markets during the first quarter but markets Republic Bank. The Fund also benefited from the significant have broadly recovered since April. Positive vaccine news, a underweight banks position as these shares failed to recover contentious US presidential election and nail-biting Brexit alongside the broader market as lower interest rates, rising finale headlined the final quarter of the year, adding corporate debt and regulatory pressure to cut dividends momentum to the equity market rally and pushing the US depressed investor sentiment. stock market to an all-time high by the year-end. Traditionally defensive sectors, such as utilities, underperformed Globally, stock markets rose over the 12-month period but the broader market. However, the Fund benefited from with considerable divergence by country. While US and diversification into renewable energy. The overweight exposure Chinese stocks performed well, markets in many other to strongly performing Ørsted, Enel and NextEra Energy was countries recorded sharp falls. Shares in the UK and Latin beneficial. America fared particularly badly. The technology sector continued to perform well, as investors Interest-rate cuts were prevalent over the period. The US recognised the sustainable trends that underpin its growth. In Federal Reserve reduced the main rate twice in March, with the addition, the crisis brought beneficial changes as demand for final cut taking the main US rate to near zero. The ‘lower for cloud services rose sharply as people self-isolated and worked longer’ rhetoric from central banks around the world remained from home. This led to strong performance from one of the supportive of risk assets and held bond yields in check. Fund’s largest holdings, Microsoft. The crisis has made the need for connectivity even more apparent. Holdings in Taiwanese The second wave of Covid-19 strained capacity of health chipmaker Taiwan Semiconductor Manufacturing Company services globally and new variants added further uncertainty. (TSMC) and Dutch lithography company ASML also delivered However, a burgeoning vaccination programme and strong performance due to tight supply dynamics within the established monetary and fiscal support provided a far more end-market. certain backdrop this time around. Both the US and the EU announced expanded stimulus measures in December. The An overweight position in the healthcare sector was the largest Bank of England boosted its bond-buying scheme and the UK relative performance detractor due to the holdings in Boston government announced the extension of its furlough scheme Scientific and Medtronic which were impacted as elective till the end of April 2021. Many areas of the economy have surgeries were put on hold. Furthermore, our holding in adapted to this constrained environment. Globally, GlaxoSmithKline weighed on relative returns. manufacturing continues to show more resilience than many Activity parts of the services sector. Sharp falls in the market during the first half of the year gave Performance us the opportunity to initiate positions in certain stocks on our While 2020 has been an unpredictable year, we are pleased to wish list. We established new positions in Ping An Insurance, a report that our quality, sustainable growth approach led to the financial services conglomerate that is well positioned to Fund outperforming not only our internal benchmark but also benefit for the growing middle class in China, and Alibaba, the the peer group, as measured by Asset Risk Consultants (ARC), Chinese internet giant, which provides IT infrastructure, e- during 2020. The Fund returned 15.9% versus the benchmark commerce, online financial and internet services. Another return of 12.7% and was ahead of the ARC Equity Risk PCI peer purchase was Alstom, the French industrial company that has group estimate of 5.2%. transformed itself into one of the leading providers of rail equipment. Finally, we purchased Procter & Gamble, a well- Equity stock selection drove the Fund’s performance. It remains diversified consumer staples business that has not been focused on investments that are underpinned by structural materially impacted by the pandemic. growth trends, high-quality balance sheets and management, and good visibility on how they will achieve growth. The resilience of this approach meant that the Fund weathered the market falls and start of the market recovery in the first three quarters of the year relatively well. The Fund also participated in the fourth quarter equity market rally; it rose in value, albeit to a lesser degree than the broader market. As vaccine approvals became imminent in November, areas of the market most sensitive to a recovery in the economic cycle led the market. Our approach is designed to lock in growth that is less dependent on the economic cycle and more sustainable over the long term.
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Aberdeen Standard Capital Offshore Strategy Fund Limited Global Equity Class
Fund Report (cont.)
Activity (cont.) Trade barriers between the US and China are unlikely to To fund these purchases, we sold out of stocks in which we ratchet rapidly lower, but foreign policy will at least no longer had less conviction or felt were vulnerable to the damage be done ‘via tweet’, with a less volatile and more multilateral inflicted by the pandemic. EOG Resources and Schlumberger approach pursued instead. This should be positive for animal were sold given a continued challenging operating spirits across the broader emerging markets. We think China is environment for oil and gas companies, as well as those the large economy emerging from the pandemic in the companies servicing the industry. Similarly, Walt Disney was strongest shape. Successful containment of the virus and a sold on the concern that the cash-generating theme parks and stimulative policy stance mean its economy has already studios divisions would take significantly longer to emerge surpassed pre-pandemic levels. Domestic vaccine efforts are from lockdown due to lower visitors, restricted tourist air also bearing fruit. That said, the focus of policy in China will travel and mandatory quarantines on international visitors. progressively move away from fighting Covid-19 towards Fever-Tree Drinks was sold after a strong recovery in its share managing financial risks, de-escalating tensions with the US price despite ongoing concerns over lower growth in the UK and achieving its long-term growth and emissions targets. market and a longer path to growth in the US market. We continue to concentrate on companies underpinned by In the second half of the year, we diversified the Fund’s long-term structural growth. We seek to identify businesses pharmaceuticals exposure. We initiated a position in West that will benefit from shifting trends, while avoiding those Pharmaceutical Services, a high quality, small/mid cap US where change will be detrimental. Experience has taught us company that provides containment services for drug delivery, that companies that have strong balance sheets and can which have a high regulatory hurdle. We also added create value by generating cash flow in excess of their AstraZeneca, a company focused on treatments for oncology, operational requirements tend to generate stronger, more cardiovascular, renal and metabolism, and respiratory sustainable returns. They are usually better positioned to diseases, due to its attractive growth outlook. reinvest in their businesses and distribute earnings to shareholders. These types of companies merit long-term We also made a strategic shift to increase exposure to positions in portfolios regardless of shorter-term sentiment. industrials. Schneider Electric offers an attractive combination of cyclicality and being supported by two long-term structural trends: electrification and industrial automation. We bought Generac, a leading designer and manufacturer of power generation equipment and power products, and a beneficiary of the rise in demand for back-up power solutions in residential and commercial settings. These purchases were funded by the sales of FLIR Systems and Merck & Co.
Outlook The global economic outlook is dominated by two conflicting forces: an intense second wave of Covid-19 in Europe and North America that is already weighing on recoveries, and recent news of highly effective vaccines, which raises the likelihood of an eventual return to ‘normal’ life. The prospect of a number of vaccines being rolled out offers an eventual ‘escape hatch’ out of the pandemic and its economics effects. However, hurdles lie ahead. A multi-year, sustained effort will be required to achieve global inoculation, which will be subject to manufacturing, distribution and compliance challenges. We can’t help but temper some of the recent vaccine optimism.
We believe the current retightening of restrictions in the UK, US and Europe has further to run, and meaningful loosening won’t get underway until well into the first quarter of 2021. We, therefore, expect economic activity to flat-line through the winter. But from mid-2021 onwards, these economies should benefit strongly from vaccine rollout, given their large pre- orders and the size of the service sector in economic output.
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Aberdeen Standard Capital Offshore Strategy Fund Limited Global Equity Class
Statistics
Price and Revenue Record by Share Class (Calendar Year)
Retail Shares Highest Price (p) Lowest Price (p) Net Revenue per share* (p)
2016 226.60 167.59 2.4032
2017 243.54 219.99 2.0094
2018 256.82 215.78 2.9250
2019 282.15 216.87 3.3227
2020 320.40 224.83 2.8343
Z Shares Highest Price (p) Lowest Price (p) Net Revenue per share* (p)
2016 61.26 45.06 0.7827
2017 66.33 59.54 0.7057
2018 70.42 59.35 0.9645
2019 78.18 59.58 1.0936
2020 89.47 62.37 0.9858
Net Asset Value History by Share Class
Retail Shares as at Net Asset Value (£) Pence per share Shares in issue
31 December 2018 1,694,094 219.25 772,685
31 December 2019 2,050,797 275.75 743,706
31 December 2020 2,269,446 317.04 715,815
Z Shares as at Net Asset Value (£) Pence per share Shares in issue
31 December 2018 16,720,176 60.23 27,760,806
31 December 2019 18,987,792 76.33 24,874,619
31 December 2020 18,608,311 88.44 21,041,030
*Distributions are shown in the year declared rather than paid.
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Aberdeen Standard Capital Offshore Strategy Fund Limited Global Equity Class
Statistics (cont.)
Top Ten Purchases and Sales The table below shows the top ten purchases and sales (excluding any derivative transactions) for the year:
Purchases £000’s Sales £000’s Ping An Insurance 382 Merck & Co 396 Tencent 359 Microsoft 353 Alstom 354 Amazon 339 Schneider Electric 312 Equinix 297 Alibaba ADS 310 FLIR Systems 273 AstraZeneca 301 Intuit 268 Procter & Gamble 297 Disney (Walt) 263 Generac 273 Beazley 253 West Pharmaceutical Services 205 Apple 252 Shimano 176 Taiwan Semiconductor Manufacturing ADS 251
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Aberdeen Standard Capital Offshore Strategy Fund Limited Global Equity Class
Portfolio Statement as at 31 December 2020
Investments Holding Market Value Total Net Assets £000’s % United Kingdom 13.23% (14.05%)
Abcam 21,600 334 1.60 AstraZeneca 3,776 277 1.33 BHP 14,818 285 1.37 Biotech Growth Trust 23,599 370 1.77 Dechra Pharmaceuticals 11,402 393 1.88 DS Smith 96,091 360 1.72 GlaxoSmithKline 24,506 329 1.58 RELX 23,072 414 1.98
United States of America 47.07% (54.01%)
Accenture 3,256 621 2.97 Activision Blizzard 6,858 466 2.23 Allegion 3,600 307 1.47 Alphabet 'A' 467 598 2.86 Amazon 283 674 3.23 American Tower 2,738 449 2.15 Apple 6,452 626 3.00 Boston Scientific 12,387 326 1.56 Comcast ‘A’ 9,243 354 1.70 Eli Lilly 3,200 395 1.89 Equinix 674 352 1.69 Estee Lauder ‘A’ 3,041 592 2.84 First Republic Bank 5,700 612 2.93 Generac 1,690 281 1.35 Intuit 1,580 439 2.10 MasterCard ‘A’ 1,964 512 2.45 Microsoft 4,470 727 3.48 NextEra Energy 8,788 495 2.37 Procter & Gamble 3,164 322 1.54 Visa 2,960 473 2.27 West Pharmaceutical Services 1,000 207 0.99
Australia 0.00% (1.39%)
China 5.08% (0.00%)
Alibaba ADS 1,787 304 1.46 Ping An Insurance 47,000 421 2.02 Tencent 6,300 335 1.60
Hong Kong 2.55% (2.95%)
AIA 59,409 532 2.55
54 03 Global Equity Class_ASC311219 09-Apr-21 10:56 AM Page 55
Aberdeen Standard Capital Offshore Strategy Fund Limited Global Equity Class
Portfolio Statement (cont.)
Investments Holding Market Value Total Net Assets £000’s % Japan 0.82% (0.00%)
Shimano 1,000 171 0.82
Taiwan 6.88% (5.05%)
Taiwan Semiconductor Manufacturing ADS 12,253 977 4.68 Voltronic Power Technology 15,775 460 2.20
Belgium 0.00% (1.22%)
Denmark 3.35% (2.09%)
Ørsted 4,660 700 3.35
France 4.61% (1.32%)
Alstom 10,064 420 2.01 Schneider Electric 3,112 330 1.58 Total 6,697 212 1.02
Ireland 3.36% (4.04%)
CRH 10,082 307 1.47 Medtronic 4,602 394 1.89
Italy 2.44% (2.47%)
Enel 68,828 510 2.44
Netherlands 3.70% (3.93%)
ASML 1,599 569 2.73 Royal Dutch Shell 'B' (UK Regd.) 16,121 203 0.97
Switzerland 6.50% (6.27%)
Nestlé (Regd.) 7,071 610 2.92 Novartis (Regd.) 4,541 314 1.50 Roche Holding 1,698 434 2.08
Portfolio of investments 20,793 99.59
Net current assets 85 0.41
Total net assets 20,878 100.00
Total unapproved and unquoted securities 0.00%.
Comparative figures in brackets refer to 31 December 2019.
Unless otherwise indicated, the holdings in the Portfolio Statement represent the ordinary shares, ordinary stock units, common shares or debt securities of the relevant companies or issuers, which are listed on an eligible securities market.
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Aberdeen Standard Capital Offshore Strategy Fund Limited Global Equity Class
Financial Statements for the year ended 31 December 2020
Statement of Total Return
31 December 2020 31 December 2019 Notes £000’s £000’s £000’s £000’s Income Net capital gains Net capital gains on investments 1 2,915 4,807 Other gains/(losses) 1 6 (10) 2,921 4,797 Revenue 2 332 411 Expenses 3 (35) (36) Interest payable and similar charges 5 — — Net revenue before taxation 297 375 Taxation 4 (72) (75) Net revenue after taxation 225 300 Total return before distributions 3,146 5,097 Distributions 6 (240) (314) Net increase in Shareholders’ funds from Investment activities 2,906 4,783
Statement of Movement in Shareholders’ Funds
31 December 2020 31 December 2019 £000’s £000’s £000’s £000’s Opening net assets attributable to Shareholders 21,039 18,414 Amounts receivable on creation of shares 33 348 Amounts payable on cancellation of shares (3,100) (2,506) (3,067) (2,158) Net increase in Shareholders’ funds from investment activities (see above) 2,906 4,783 Closing net assets attributable to Shareholders 20,878 21,039
All results above are derived from continuing activities for both the current and prior years.
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Aberdeen Standard Capital Offshore Strategy Fund Limited Global Equity Class
Financial Statements (cont.) as at 31 December 2020
Statement of Financial Position
31 December 2020 31 December 2019 Notes £000’s £000’s £000’s £000’s Assets Fixed assets Investment assets at fair value through profit or loss 20,793 20,785 Current assets Debtors 8 13 21 Cash and bank balances 9 166 373 Total current assets 179 394 Total assets 20,972 21,179 Liabilities Creditors Distribution payable 10 (85) (130) Other creditors 10 (9) (10) Total other liabilities (94) (140) Total liabilities (94) (140) Net assets attributable to Shareholders 20,878 21,039
All liabilities are current.
The notes on pages 21 to 30 and pages 58 to 64 form part of the Financial Statements.
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Aberdeen Standard Capital Offshore Strategy Fund Limited Global Equity Class
Notes to the Financial Statements for the year ended 31 December 2020
1 Net capital gains The net capital gains/(losses) on investments during the year comprise: 31 December 2020 31 December 2019 £000’s £000’s Non-derivative securities* 2,918 4,810 Other gains/(losses) – currency gains/(losses) 6 (10) Custodial transaction fees (3) (3) Net capital gains 2,921 4,797
*Net gains (excluding custodial transaction fees) listed above of £2,924,905 comprise net realised gains of £1,816,395 and net unrealised gains of £1,108,510 (2019: £4,799,747 comprise net realised gains of £541,764 and net unrealised gains of £4,257,983). £2,016,007 of the net realised gains in the current year had been shown as net unrealised gains in previous years (2019: £(236,135) net realised losses). 2 Revenue 31 December 2020 31 December 2019 £000’s £000’s Bank interest —1 Money market deposit —4 Overseas dividends 271 311 UK dividends 61 95 Total revenue 332 411
3 Expenses
31 December 2020 31 December 2019 £000’s £000’s Payable to the Manager or Associate of the Manager: Manager’s periodic charge 21 19 21 19 Other expenses: Audit fees 13 Custodian fees 55 Directors’ fees 22 Other expenses 67 14 17 Total expenses 35 36
4 Taxation 31 December 2020 31 December 2019 £000’s £000’s Withholding tax on overseas dividends 72 75 Total taxation 72 75
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Aberdeen Standard Capital Offshore Strategy Fund Limited Global Equity Class
Notes to the Financial Statements (cont.)
5 Interest payable and similar charges 31 December 2020 31 December 2019 £000’s £000’s Interest payable —— Total interest payable and similar charges ——
6 Distributions The distributions take account of equalisation amounts added on the creation of shares and equalisation amounts deducted on the cancellation of shares. They comprise:
31 December 2020 31 December 2019 £000’s £000’s Interim distribution 30 June 148 180 Final distribution 31 December 85 130 233 310 Amounts added on creation of shares — (2) Amounts deducted on cancellation of shares 76 Gross distributions for the year 240 314
Details of the distribution per share are set out on the statements on page 65. 7 Net movement between revenue after taxation and distributions
31 December 2020 31 December 2019 £000’s £000’s Net revenue after taxation 225 300 Expenses paid from capital 15 14 Gross distributions for the year 240 314
8 Debtors 31 December 2020 31 December 2019 £000’s £000’s Accrued revenue 13 21 Total debtors 13 21
9 Cash and bank balances
31 December 2020 31 December 2019 £000’s £000’s Cash held at bank 11 68 Term deposits 155 305 Total cash and bank balances 166 373
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Aberdeen Standard Capital Offshore Strategy Fund Limited Global Equity Class
Notes to the Financial Statements (cont.)
10 Creditors
31 December 2020 31 December 2019 £000’s £000’s a) Distribution payable Gross distribution payable 85 130 Total distribution payable 85 130
b) Other creditors Accrued expenses 9 10 Total other creditors 9 10
11 Related party transactions Manager’s periodic charge and Registrar’s fees payable to Aberdeen Standard Capital (CI) Limited are shown in Note 3. The aggregate monies received through creation and paid through cancellation of shares are disclosed in the Statement of Movement in Shareholders’ Funds and Note 6. Any amounts due to or from the Manager at the year end are disclosed in Notes 8 and 10. The total balance due to the Manager in respect of Manager’s periodic charge at 31 December 2020 is £1,911 (2019: £1,802).
Directors’ fees payable to the Board of Directors are shown in Note 3.
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Aberdeen Standard Capital Offshore Strategy Fund Limited Global Equity Class
Notes to the Financial Statements (cont.)
12 Financial Instruments a) Interest rate risk The Fund does not currently invest in either fixed or floating rate securities and interest rate exposure is restricted to interest on bank deposits or payable on bank overdraft positions which will be affected by fluctuations in interest rates. b) Foreign currency risk The table that follows details the foreign currency risk profile of the Global Equity Class assets at the Statement of Financial Position date.
31 December 2020 31 December 2020 31 December 2020 31 December 2019 Investments Net Current Assets Total Total £000’s £000’s £000’s £000’s Australian Dollar —— —292 Danish Krone 700 — 700 439 Euro 2,347 — 2,347 1,923 Hong Kong Dollars 1,289 — 1,289 621 Japanese Yen 171 — 171 — Swiss Franc 1,359 — 1,359 1,319 Taiwan Dollars 460 7 467 402 US Dollar 11,503 8 11,511 12,551 Total 17,829 15 17,844 17,547
c) Credit risk The Fund did not enter into any derivative contracts during the year and therefore has no counterparty exposure. d) Valuation of financial investments The following table analyses within the fair value hierarchy the assets and liabilities (by class of financial instrument) measured at fair value.
Level 1 Level 2 Level 3 Total £000’s £000’s £000’s £000’s 31 December 2020 Equities 20,793 ——20,793 20,793 ——20,793 31 December 2019 Equities 20,785 ——20,785 20,785 — — 20,785
The different levels of the fair value hierarchy are defined on page 29.
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Notes to the Financial Statements (cont.)
12 Financial Instruments (cont.) e) Sensitivity analysis Please note that the absolute Value at Risk (“VaR”) approach has been used for risk measurement and calculation of global exposure for this Fund.
VaR is a measure of the maximum potential loss to the Fund due to market risk. More particularly, VaR measures the maximum potential loss at a given confidence level (probability) over a specific time period under normal market conditions.
On the above basis the VaR has been as follows:
For the year 1 January 2020 to 31 December 2020: VaR % Highest 17.26 Average 14.34 Lowest 8.50
This means that, at its highest point during the year, there was a 1% chance of the portfolio value falling (or rising) more than 17.26% in a one month period. This calculation is generally determined by the use of an industry recognised medium term risk model, typically based on 3-5 year history. This method assumes normal market conditions and that the portfolio remains unchanged.
For the year 1 January 2019 to 31 December 2019: VaR % Highest 9.24 Average 8.85 Lowest 8.45
Leverage is calculated as the sum of the notionals of the derivatives used. The level of leverage employed during the relevant year was 100%. 13 Portfolio transaction costs For the year 1 January 2020 to 31 December 2020
Value Commissions Taxes Purchases £000’s £000’s % % % Equity Instruments 3,065 1 0.03 4 0.13 Total purchases 3,065 1 4 Total purchases including transaction costs 3,070
Sales Equity Instruments 5,917 2 0.03 1 0.02 Collective investment schemes 66 —— —— Total sales 5,983 21 Total sales net of transaction costs 5,980 Total transaction costs 35 Total transaction costs as a % of average net assets 0.02% 0.02%
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Aberdeen Standard Capital Offshore Strategy Fund Limited Global Equity Class
Notes to the Financial Statements (cont.)
13 Portfolio transaction costs (cont.) For the year 1 January 2019 to 31 December 2019
Value Commissions Taxes Purchases £000’s £000’s % % % Equity Instruments 4,007 2 0.05 2 0.05 Total purchases 4,007 22 Total purchases including transaction costs 4,011
Sales Equity Instruments 5,925 3 0.05 1 0.02 Total sales 5,925 3 1 Total sales net of transaction costs 5,921 Total transaction costs 53 Total transaction costs as a % of average net assets 0.02% 0.02%
The above analysis covers any direct transaction costs suffered by the Fund during the year. However it is important to understand the nature of other transaction costs associated with different investment asset classes and instruments types.
Separately identifiable direct transaction costs (commissions & taxes etc.) are attributable to the Fund's purchase and sale of equity shares. Additionally for equity shares there is a dealing spread cost (the difference between the buying and selling prices) which will be suffered on purchase and sale transactions.
For the Fund's investment transactions in debt and money market instruments any applicable transaction charges form part of the dealing spread for these instruments. Transactions in money market instruments to manage the Fund's daily liquidity position are excluded from the analysis.
For the Fund's investment in collective investment scheme holdings there will potentially be dealing spread costs applicable to purchases and sales. However additionally there are indirect transaction costs suffered in those underlying funds, throughout the holding period for the instruments, which are not separately identifiable and do not form part of the analysis above.
Dealing spread costs suffered by the Fund vary considerably for the different asset/instrument types depending on a number of factors including transaction value and market sentiment.
At the Statement of Financial Position date the average portfolio dealing spread (difference between bid and offer prices of all investments expressed as a percentage of the offer price value) was 0.14% (2019: 0.11%).
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Aberdeen Standard Capital Offshore Strategy Fund Limited Global Equity Class
Notes to the Financial Statements (cont.)
14 Share movement For the year 1 January 2020 to 31 December 2020
Retail Shares Z Shares Opening shares 743,706 24,874,619 Shares issued 965 43,863 Shares redeemed (28,856) (3,877,452) Closing shares 715,815 21,041,030
15 Post Statement of Financial Position Events Since the year end, markets and operations have continued to be disrupted by the effects of the Covid-19 pandemic. Since the year end the NAV per share has increased by 2.59% (to 31 March 2021). Contingency plans at the Manager and key service suppliers have proven effective in mitigating the effects on management of the portfolio and on all supporting operations .
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Aberdeen Standard Capital Offshore Strategy Fund Limited Global Equity Class
Distribution Statements
Final Distribution For the six months ended 31 December 2020
Group 1: Shares purchased prior to 1 July 2020 Group 2: Shares purchased 1 July 2020 to 31 December 2020
(In pence per share) Net Revenue Equalisation* Amount Payable Retail Shares Group 1 0.9503 — 0.9503 Group 2 0.6762 0.2741 0.9503 Z Shares Group 1 0.3696 — 0.3696 Group 2 0.3696 0.0000 0.3696
The final distribution for the period ended 31 December 2019 was 1.3930 pence per Retail share and 0.4791 pence per Z share. Interim Distribution For the six months ended 30 June 2020
Group 1: Shares purchased prior to 1 January 2020 Group 2: Shares purchased 1 January 2020 to 30 June 2020
(In pence per share) Net Revenue Equalisation* Amount Paid Retail Shares Group 1 1.8840 — 1.8840 Group 2 1.4736 0.4104 1.8840 Z Shares Group 1 0.6162 — 0.6162 Group 2 0.2613 0.3549 0.6162
The interim distribution for the six months ended 30 June 2019 was 1.9297 pence per Retail share and 0.6145 pence per Z share.
*Equalisation applies to shares purchased during the distribution period (Group 2 shares). It is the average amount of revenue included in the purchase price of all Group 2 shares and is refunded to holders of these shares as a return of capital.
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Fund Report
Environment Activity Investment-grade credit was dominated by the escalating For the investment-grade portfolio, earlier in the period, we Covid-19 pandemic, which resulted in a sell-off of historic participated in some attractively priced new issues. We proportions in March, including the global investment grade targeted investments in single A or above names or solid BBB corporate bond market. The dramatic widening of spreads credits in defensive industries. We also preferred shorter- reflected markedly worsening expectations for global growth dated maturities in order to take advantage of the flatness of in light of incoming data regarding the effect of the pandemic. the yield curve. In the US Dollar market, this included the 2023 However, the second half of the year was a traditional risk-on bonds of Toyota and in the Euro market, the 2026 bonds of period for investment-grade credit. The coronavirus pandemic, Orange and the 2025 bonds of the German electricity economic factors and politics continued to dominate company E.ON. In the secondary market, we increased corporate bond markets. While the rollout of coronavirus exposure to the US care home/assisted living-focused real vaccination programmes towards the end of the period was a estate investment trust Welltower. On the sell side, we major positive, this was balanced to some extent by the generally looked to reduce exposure to companies and sectors emergence of new viral strains, surging infection rates and most heavily exposed to the escalating coronavirus pandemic deaths globally. In response to the resurgence, many countries and the various social restriction measures aimed at reimplemented stringent lockdowns comparable to April 2020, controlling this. Examples of this were the payments which will have some adverse economic impact. On the processing companies Fiserv and Global Payments. political front, narrow avoidance of a ‘no-deal’ Brexit outcome In the second half of the period, in the primary market, we was positive for sentiment. bought the attractively priced 2031 and 2050 US Dollar bonds In high yield, March 2020 was the second worst month ever for of the food and beverage company Mondelez. We also bought returns, with spreads reaching levels that exceeded those of the attractively priced 2030 Euro bonds of Cofinimmo. The the past several recessions other than the global financial company benefited from reliable income generation and good crisis. A flood of fiscal and monetary actions led to a strong long-term growth prospects thanks in part to its exposure to rally in April and May for the asset class. However, markets the population ageing theme. In the secondary market, experienced some volatility following a resurgence in towards the end of the period, we bought the 2030 bonds of coronavirus cases, particularly in the US. The high-yield market Weyerhaeuser, a US timberland real estate investment trust, rallied in the second half of the year, as inflows into the asset which had valuable assets and an improving credit thanks in class provided investors with enough capital to digest a heavy part to dividend-payout reductions. This purchase was dose of new issuance. Nevertheless, concerns about Covid-19, financed by our sale of the bonds of International Paper. On the US election, Brexit negotiations and the potential for the sell side, ahead of the US presidential election, we reduced further economic stimulus tempered gains somewhat. pharmaceuticals exposure by selling the 2029 bonds of Bristol A steady dose of positive vaccine headlines sent markets Meyers Squibb and the 2025 bonds of Upjohn. In addition, we higher in November, with global high yield posting its best reduced some of the portfolio’s telecoms exposure through monthly return since July. the sale of the Verizon Communications 2039 and Charter Communications 2022 bonds. Owing to recent US sanctions, Emerging-market debt ended the year on a positive note. By we also sold the 2030 bonds of China Overseas Land and the end of March, the Covid-19 pandemic had caused markets Investment. to fall precipitously, movement-restriction orders were commonplace and oil prices had tanked. Governments and In high yield, at the start of the period, we took advantage of a central banks passed unprecedented multi-trillion-dollar fiscal number of yield-to-call opportunities, capturing yields above stimulus packages in response. These measures kickstarted a 3% in credits that we are fundamentally positive on, including gradual recovery in the second quarter, with momentum cable operator Cablevision. We participated selectively in a picking up as economic stimulus measures were ramped up, number of new issues, including deals from auto seating the US Dollar weakened and phased reopenings began. manufacturer Adient, recent ‘fallen angel’ Ford Motor and Despite hiccups of volatility from a second wave of coronavirus video streaming company Netflix. We also initiated or added cases, this momentum was largely sustained through the end positions in higher-quality companies such as environmental of the year. The relatively smooth US presidential elections in services company Clean Harbors, data storage provider Iron November quelled some uncertainty, and positive vaccine trial Mountain and wireless operator Sprint. news (followed by regulatory approvals and the rolling out of vaccination programmes) boosted sentiment further.
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Aberdeen Standard Capital Offshore Strategy Fund Limited Global Fixed Interest Class
Fund Report (cont.)
Activity (cont.) Performance Over the third quarter, the primary market was the preferred While 2020 has been an unpredictable year, our approach led vehicle for putting money to work. The market had a flood of to the Fund outperforming. The Fund returned 5.9% versus new issues, but we remained selective, participating in deals the benchmark return of 5.3%. that offered an attractive valuation and improving credit From a ratings perspective, the global investment-grade profiles. Some deals included hospitality operator Wyndham portfolio’s above benchmark weighting in BBB and lower- Destinations, building products manufacturer Cornerstone rated credits added to returns as risk markets rebounded Building and media broadcaster Nexstar Broadcasting. We strongly. The recovery in the oil price was beneficial for the reduced our underweight to natural gas producers by portfolio’s overweight position in Occidental Petroleum. participating in new issues of Southwestern Electric Power and Telecommunications company America Movil was also among Comstock. In the secondary market, we further increased our the top contributors. Other positives included an overweight positioning in natural gas exposed names, with positions in position in CVS Health and an underweight holding in US EQT and Southwestern Electric Power. In terms of selling, most automaker Ford Motor. On the downside, stock selection trades were taking profits in names that have done well and was held back by exposure to fiduciary services company no longer offered an attractive return for the risk. Among Intertrust and an underweight exposure to energy company others, we reduced holdings in Viking Cruises and Bausch Sherwin-Williams. Health. In September, with valuations backing up, we reduced our off-benchmark holdings in investment-grade rated names For the high-yield portfolio, from a ratings perspective, below- such as T-Mobile and Ashtead. Meanwhile, we added to our benchmark exposure to BB-rated credits at the lower-risk end higher-quality high-yield names with Six Flags Entertainment of the high-yield spectrum was a negative contributor. By the and MGM Resorts International. same token, being underweight (versus the benchmark) in riskier issuers rated CCC and lower contributed positively. At In emerging markets, early in the period, we increased our the security level, the largest detractors came predominantly overweight exposure to Ukraine, and we reduced our from energy and oil & gas exploration issuers, such as underweights in Panama and Colombia. Further, we trimmed Occidental Petroleum, Bruin E&P, SM Energy and Shelf Drilling. our positions in Indonesia and Morocco. In the second quarter, On the positive side, overweight exposures to Cheniere Energy we increased exposure to Nigeria and the Ivory Coast, which and Photo Holdings added value. The portfolio’s overweight are credits that we like from a fundamentals and risk/reward position in MDC was the top individual contributor to returns perspective. On the sell side, following strong recent during the period. performance, we took profits on the portfolio’s Ukraine holdings. With the oil price having recovered so strongly, we In emerging markets, our country allocation helped also cut the exposure to Iraq. performance, as did security selection. On the positive side, our zero exposure to Lebanon – which experienced significant In the second half of the period, in the primary market, we political and economic turmoil over the period – was the bought the attractively priced long-dated 2060 bonds of the largest contributor. Other major positive contributors came Dominican Republic, which gives us overweight exposure to from overweight positions in Qatar, Abu Dhabi, Egypt and the the country. We also bought 2032 new issue bonds of Bahrain. Ivory Coast. In terms of detractors, an underweight position in On the sell side, we further increased our underweight Russia detracted, as did an overweight in Ecuador and zero exposure to Turkey by selling its 2028 and 2029 bonds. We weighting in Chile. Ecuador, in particular, has suffered from also took some profits in Qatar and Egypt. Primary-market both the pandemic and the fall in oil prices – its main export – activity was limited over the period. In the secondary market, leading it to seek to renegotiate its foreign debt. we added exposure to Turkey after the installation of a new finance minister in November, as well as a series of interest- rate hikes. We made several investments in the middle eastern countries, including Qatar, Iraq and a Shari'a compliant sukuk from the Emirate of Sharjah (United Arab Emirates). We also bought a 2026 bond from Mexico’s state-owned energy firm Pemex. On the sell side, we sold down two issues from the Ivory Coast, taking profits after a run of good performance. We also sold holdings in China National Agrochemical Corporation (CNAC, also known as ChemChina) which was added to the list of companies deemed to have links with the Chinese military by the outgoing US Trump administration.
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Aberdeen Standard Capital Offshore Strategy Fund Limited Global Fixed Interest Class
Fund Report (cont.)
Outlook In emerging markets, while global economic activity has stalled We start 2021 with a cautiously constructive view for credit as countries continue to grapple with Covid-19 cases, we spreads. Rising coronavirus infections in Europe and the US believe momentum should pick up through the first half of will likely weigh on growth in the short term, but the rollout of 2021. Governments are racing to roll out the Covid-19 vaccines vaccines and increased fiscal and monetary stimulus are to frontline medical workers and at-risk groups in the first balancing those short-term risks. Joe Biden is likely to pursue quarter of the year. This should see domestic services activity his election agenda, with the expectation of increased fiscal begin to normalise and cross-border activity should start support for the economy. This additional stimulus will likely picking up, albeit from a low base. We expect global central increase corporate earnings helping improve balance sheets banks to continue to provide support via low-interest rates and credit quality over the year. This should provide a strong and quantitative easing, while inflation pressure remains backdrop for US economic growth but also long-term inflation generally contained. Elsewhere, market sentiment is likely to expectations, putting upward pressure on both Federal remain bullish and inflows into emerging market debt will Reserve policy and longer-dated US Treasury yields. Away from continue throughout 2021. Risks to the asset class include the US, we expect European growth to improve at a more policymakers struggling with containing the pandemic and moderate rate. Government bond yields should remain well- having to impose new mobility restrictions in 2021. In addition, anchored due to a less co-ordinated fiscal support package rising inflationary pressures, a deceleration of Chinese growth (coming from individual European Union countries) and the affecting commodity prices and governments withdrawing continuing purchase programme operated by the European fiscal policy support may result in a slower economic recovery. Central Bank.
After a straight-line rally off the March lows that even the most optimistic of investors would have been hard pressed to forecast, the high-yield market has settled into a rangebound state of flux. Investors are keeping an attentive eye on the headlines that will shape the future direction of the market. While we would expect the market to react to the main headlines over the next month, it is our belief that the underpinning backdrop of stimulus and progress on a vaccine will ultimately support the asset class over the foreseeable future. However, we continue to exercise caution in lower- quality credits as many of these companies will ultimately struggle to successfully grow into their capital structures. For the time being, our preference is to pick up additional yield by swapping out of defensive credits, where upside potential is minimal, and replacing those with fundamentally sound credits that have the potential for attractive total returns, driven by an improving credit profile.
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Aberdeen Standard Capital Offshore Strategy Fund Limited Global Fixed Interest Class
Statistics
Price and Revenue Record by Share Class (Calendar Year)
Retail Shares Highest Price (p) Lowest Price (p) Net Revenue per share* (p)
2016 104.51 93.95 4.8977
2017 103.26 99.70 4.4643
2018 101.68 92.25 4.3688
2019 99.32 91.74 4.1916
2020 100.07 81.60 4.0412
Z Shares Highest Price (p) Lowest Price (p) Net Revenue per share* (p)
2016 50.61 45.21 2.3667
2017 50.40 48.43 2.1795
2018 49.91 45.68 2.1554
2019 49.57 45.47 2.0879
2020 50.55 40.95 2.0347
Net Asset Value History by Share Class
Retail Shares as at Net Asset Value (£) Pence per share Shares in issue
31 December 2018 1,662,599 91.39 1,819,175
31 December 2019 1,607,546 97.57 1,647,524
31 December 2020 959,957 98.70 972,634
Z Shares as at Net Asset Value (£) Pence per share Shares in issue
31 December 2018 78,675,542 45.30 173,679,937
31 December 2019 97,738,276 48.85 200,073,768
31 December 2020 106,262,524 49.91 212,910,725
*Distributions are shown in the year declared rather than paid.
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Aberdeen Standard Capital Offshore Strategy Fund Limited Global Fixed Interest Class
Statistics (cont.)
Top Ten Purchases and Sales The table below shows the top ten purchases and sales (excluding any derivative transactions) for the year:
Purchases £000’s Sales £000’s
Argentina 5.875% 11/1/2028 824 Sri Lanka 7.55% 28/3/2030 873 Bahamas 6% 21/11/2028 788 Argentina 5.875% 11/1/2028 866 Brazil 7.125% 20/1/2037 778 Egypt 6.125% 31/1/2022 850 Romania 2% 28/1/2032 659 Bahrain 5.625% 30/9/2031 764 KazMunayGas NationalJSC 6.375% 24/10/2048 656 Brazil 7.125% 20/1/2037 747 Senegal 4.75% 13/3/2028 641 Dominican Republic 5.5% 27/1/2025 697 Turkey 5.95% 15/1/2031 565 Panama 3.875% 17/3/2028 668 Dominican Republic 5.875% 30/1/2060 542 Bahamas 6% 21/11/2028 637 Ghana 7.875% 11/2/2035 533 Kenya 7.25% 28/2/2028 624 Turkey 6.125% 24/10/2028 529 Jamaica 7.875% 28/7/2045 611
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Aberdeen Standard Capital Offshore Strategy Fund Limited Global Fixed Interest Class
Portfolio Statement
As at 31 December 2020
Investments Holding Market Value Total Net Assets £000’s %
UK Government Stocks 0.11% (0.00%)
UK Treasury 1.5% 22/7/2047 GBP 100,000 118 0.11
Overseas Government Bonds 29.50% (27.70%)
Abu Dhabi 3.125% 16/4/2030 USD 200,000 165 0.15 Albania 3.5% 16/6/2027 EUR 119,000 114 0.11 Angola 9.5% 12/11/2025 USD 723,000 548 0.51 Argentina 0.125% 9/7/2030 USD 846,672 251 0.23 Argentina 0.125% 9/7/2035 USD 1,551,167 414 0.39 Argentina 0.125% 9/7/2038 USD 54,679 16 0.02 Argentina 0.125% 9/7/2046 USD 807,040 216 0.20 Argentina 1% 9/7/2029 USD 117,484 37 0.03 Armenia 3.95% 26/9/2029 USD 744,000 546 0.51 Armenia 7.15% 26/3/2025 USD 209,000 176 0.16 Azerbaijan 3.5% 1/9/2032 USD 405,000 313 0.29 Azerbaijan 4.75% 18/3/2024 USD 907,000 726 0.68 Bahamas 6% 21/11/2028 USD 1,100,000 771 0.72 Bahrain 5.45% 16/9/2032 USD 565,000 434 0.40 Barbados 6.5% 1/10/2029 USD 143,000 106 0.10 Belarus 5.875% 24/2/2026 USD 249,000 187 0.17 Belarus 6.2% 28/2/2030 USD 200,000 148 0.14 Belarus 6.378% 24/2/2031 USD 251,000 186 0.17 Belarus 7.625% 29/6/2027 USD 330,000 266 0.25 Belize 4.9375% 20/2/2034 USD 340,400 113 0.11 Benin 5.75% 26/3/2026 EUR 340,000 320 0.30 Bermuda 2.375% 20/8/2030 USD 200,000 153 0.14 Brazil 5% 27/1/2045 USD 300,000 244 0.23 Cameroon 9.5% 19/11/2025 USD 494,000 401 0.37 Colombia 7.375% 18/9/2037 USD 239,000 255 0.24 Cote D'Ivoire 4.875% 30/1/2032 USD 150,000 137 0.13 Cote D'Ivoire 6.875% 17/10/2040 USD 240,000 244 0.23 Dominican Republic 4.875% 23/9/2032 USD 181,000 147 0.14 Dominican Republic 5.875% 30/1/2060 USD 750,000 604 0.56 Dominican Republic 7.45% 30/4/2044 USD 362,000 342 0.32 Ecuador 0% 31/7/2030 USD 110,723 38 0.04 Ecuador 0.5% 31/7/2030 USD 461,160 216 0.20 Ecuador 0.5% 31/7/2035 USD 771,966 306 0.29 Ecuador 0.5% 31/7/2040 USD 232,392 86 0.08 Egypt 5.625% 16/4/2030 EUR 164,000 153 0.14 Egypt 6.125% 31/1/2022 USD 221,000 169 0.16 Egypt 6.2004% 1/3/2024 USD 200,000 158 0.15 Egypt 8.5% 31/1/2047 USD 290,000 240 0.22
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Aberdeen Standard Capital Offshore Strategy Fund Limited Global Fixed Interest Class
Portfolio Statement (cont.)
Investments Holding Market Value Total Net Assets £000’s % Overseas Government Bonds (cont.)
Egypt 8.7002% 1/3/2049 USD 350,000 295 0.28 Egypt 8.875% 29/5/2050 USD 660,000 566 0.53 El Salvador 5.875% 30/1/2025 USD 1,130,000 784 0.73 El Salvador 8.25% 10/4/2032 USD 56,000 40 0.04 El Salvador 8.625% 28/2/2029 USD 214,000 156 0.15 EL Salvador 9.5% 15/7/2052 USD 206,000 152 0.14 Germany 0.5% 15/2/2028 USD 100,000 97 0.09 Ghana 7.875% 11/2/2035 USD 260,000 195 0.18 Ghana 8.125% 26/3/2032 USD 490,000 379 0.35 Ghana 8.627% 16/6/2049 USD 386,000 289 0.27 Government of Sharjah 4% 28/7/2050 USD 215,000 160 0.15 Guatemala 4.375% 5/6/2027 USD 367,000 299 0.28 Guatemala 4.5% 3/5/2026 USD 230,000 187 0.17 Honduras 5.625% 24/6/2030 USD 315,000 263 0.25 Honduras 6.25% 19/1/2027 USD 235,000 199 0.19 Indonesia 4.55% 29/3/2026 USD 1,303,000 1,102 1.03 Indonesia 5.25% 17/1/2042 USD 1,249,000 1,181 1.10 Iraq 5.8% 15/1/2028 USD 522,188 355 0.33 Iraq 6.752% 9/3/2023 USD 250,000 178 0.17 Kenya 7% 22/5/2027 USD 480,000 392 0.37 Kenya 8% 22/5/2032 USD 230,000 196 0.18 Kenya 8.25% 28/2/2048 USD 400,000 335 0.31 Mexico 3.75% 11/1/2028 USD 950,000 783 0.73 Mexico 4.75% 8/3/2044 USD 230,000 200 0.19 Mexico 6.5% 13/3/2027 USD 200,000 154 0.14 Morocco 2% 3/9/2030 USD 400,000 362 0.34 Morocco 5.5% 11/12/2042 USD 400,000 365 0.34 Mozambique 5% 15/9/2031 USD 280,000 187 0.17 Nigeria 7.143% 23/2/2030 USD 1,150,000 906 0.84 Nigeria 7.625% 28/11/2047 USD 231,000 178 0.17 Paraguay 5.4% 30/3/2050 USD 440,000 407 0.38 Paraguay 6.1% 11/8/2044 USD 280,000 275 0.26 Qatar 3.75% 16/4/2030 USD 220,000 189 0.18 Qatar 4.5% 23/4/2028 USD 200,000 177 0.17 Qatar 4.817% 14/3/2049 USD 800,000 798 0.74 Qatar 5.103% 23/4/2048 USD 850,000 876 0.82 Romania 2% 28/1/2032 EUR 650,000 609 0.57 Russia 5.1% 28/3/2035 USD 200,000 185 0.17 Russia 5.625% 4/4/2042 USD 400,000 407 0.38 Saudi Arabia 3.625% 4/3/2028 USD 400,000 328 0.31
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Aberdeen Standard Capital Offshore Strategy Fund Limited Global Fixed Interest Class
Portfolio Statement (cont.)
Investments Holding Market Value Total Net Assets £000’s % Overseas Government Bonds (cont.)
Saudi Arabia 4.5% 17/4/2030 USD 200,000 177 0.17 Saudi Arabia 4.625% 4/10/2047 USD 240,000 217 0.20 Senegal 4.75% 13/3/2028 EUR 950,000 906 0.84 Serbia 3.125% 15/5/2027 EUR 450,000 452 0.42 South Africa 4.875% 14/4/2026 USD 334,000 267 0.25 Trinidad & Tobago 4.5% 4/8/2026 USD 700,000 562 0.52 Tunisia 5.625% 17/2/2024 USD 100,000 83 0.08 Tunisia 5.75% 30/1/2025 USD 440,000 293 0.27 Tunisia 6.375% 15/7/2026 EUR 540,000 441 0.41 Turkey 5.95% 15/1/2031 USD 750,000 572 0.53 Turkey 6.125% 24/10/2028 USD 480,000 373 0.35 Ukraine 0% 31/5/2040 USD 630,000 474 0.44 Ukraine 7.375% 25/9/2032 USD 600,000 482 0.45 Ukraine 7.75% 1/9/2023 USD 459,000 369 0.34 Ukraine 7.75% 1/9/2026 USD 187,000 154 0.14 Ukraine 8.994% 1/2/2024 USD 200,000 166 0.15 Uzbekistan 3.7% 25/11/2030 USD 200,000 154 0.14 Uzbekistan 4.75% 20/2/2024 USD 395,000 313 0.29 Venezuela 0% 21/10/2026 USD 672,300 45 0.04
Floating Rate Notes 1.04% (1.29%)
AXA 5.625% FRN 16/1/2054 GBP 100,000 133 0.12 Barclays 5.088% FRN 20/6/2030 USD 200,000 176 0.16 Deutsche Annington Finance 4% Perpetual EUR 100,000 92 0.09 Électricité de France 6% Perpetual GBP 100,000 114 0.11 Generali Finance 4.596% Perpetual EUR 211,000 212 0.20 Hellas Telecommunications Finance 0% FRN 15/7/2015* EUR 512,999 0 0.00 HSBC 5.25% Perpetual EUR 200,000 187 0.17 JPMorgan Mortgage Trust 2018-9 4% 25/9/2048 USD 9,436 7 0.01 NN 4.625% FRN 8/4/2044 EUR 100,000 100 0.09 Société Générale 6.75% FRN Perpetual EUR 100,000 91 0.09
Sterling Denominated Corporate Bonds 4.46% (5.53%)
ABP Finance 6.25% 14/12/2026 GBP 120,000 146 0.14 Anglo American Capital 3.375% 11/3/2029 GBP 200,000 224 0.21 Arqiva Broadcast Finance 6.75% 30/9/2023 GBP 110,000 113 0.11 Asciano Finance 5% 19/9/2023 GBP 100,000 109 0.10 Athene Global 1.75% 24/11/2027 GBP 169,000 174 0.16 Aviva 4% 3/6/2055 GBP 100,000 115 0.11 BHP Billiton Finance 6.5% 22/10/2077 GBP 100,000 109 0.10 Citigroup 2.75% 24/1/2024 GBP 100,000 106 0.10 Cpuk Finance Limited 3.588% 28/2/2042 GBP 155,000 167 0.16
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Aberdeen Standard Capital Offshore Strategy Fund Limited Global Fixed Interest Class
Portfolio Statement (cont.)
Investments Holding Market Value Total Net Assets £000’s % Sterling Denominated Corporate Bonds (cont.)
CYBG 8% Perpetual GBP 200,000 203 0.19 Deutsche Bank 2.625% 16/12/2024 GBP 100,000 105 0.10 Dignity Finance 4.6956% 31/12/2049 GBP 130,000 105 0.10 Eversholt Funding 3.529% 7/8/2042 GBP 100,000 119 0.11 FCA Bank 1.625% 29/9/2021 GBP 117,000 118 0.11 FirstGroup 6.875% 18/9/2024 GBP 100,000 113 0.11 Garfunkelux 7.75% 1/11/2025 GBP 100,000 102 0.09 Great Rolling Stock 6.5% 5/4/2031 GBP 82,000 106 0.10 Greene King Finance 1.9933% 15/12/2034 GBP 113,000 75 0.07 Heathrow Funding 5.875% 13/5/2043 GBP 100,000 153 0.14 Intu Metrocentre Finance 4.125% 6/12/2028 GBP 200,000 92 0.09 Lloyds Banking 2.25% 16/10/2024 GBP 200,000 210 0.20 Lloyds Banking 5.125% Perpetual GBP 200,000 209 0.19 London & Quadrant Housing Trust 2.625% 28/2/2028 GBP 100,000 111 0.10 Mitchells & Butlers Finance 5.965% 15/12/2025 GBP 34,788 36 0.03 MPT Finance 2.55% 5/12/2023 GBP 135,000 137 0.13 MPT Finance 3.692% 5/6/2028 GBP 177,000 191 0.18 NatWest Markets 2.875% 19/9/2026 GBP 100,000 109 0.10 Pinewood Finance 3.25% 30/9/2025 GBP 100,000 102 0.09 Royal Bank of Scotland 3.622% 14/8/2030 GBP 100,000 108 0.10 TalkTalk Telem 3.875% 20/2/2025 GBP 100,000 97 0.09 Tesco Corporate Treasury Services 2.5% 2/5/2025 GBP 100,000 107 0.10 Tesco Property Finance 2 6.0517% 13/10/2039 GBP 89,923 123 0.11 Tesco Property Finance 4 5.8006% 13/10/2040 GBP 97,091 133 0.12 Toyota Motor Credit 0.75% 19/11/2026 GBP 171,000 173 0.16 Virgin Media Vendor Financing Notes III DAC 4.875% 15/7/2028 GBP 150,000 153 0.14 Virgin Money UK 7.875% 14/12/2028 GBP 100,000 113 0.11 Vmed O2 UK Financing I 4% 31/1/2029 GBP 114,000 116 0.11
Non-Sterling Denominated Corporate Bonds 60.23% (50.70%)
99 Escrow 7.5% 15/1/2026 USD 206,000 150 0.14 AbbVie 3.2% 14/5/2026 USD 136,000 110 0.10 Abbvie 4.25% 21/11/2049 USD 83,000 76 0.07 AbbVie 4.45% 14/5/2046 USD 210,000 195 0.18 Abertis Infraestructuras 3.248% 24/2/2069 EUR 100,000 93 0.09 ABN AMRO 4.4% 27/3/2028 USD 200,000 156 0.15 Academy Financial 6% 15/11/2027 USD 262,000 201 0.19 ACI Worldwide 5.75% 15/8/2026 USD 274,000 212 0.20 Activision Blizzard 2.5% 15/9/2050 USD 132,000 94 0.09 Activision Blizzard 3.4% 15/6/2027 USD 53,000 44 0.04
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Aberdeen Standard Capital Offshore Strategy Fund Limited Global Fixed Interest Class
Portfolio Statement (cont.)
Investments Holding Market Value Total Net Assets £000’s % Non-Sterling Denominated Corporate Bonds (cont.)
Adams Homes 7.5% 15/2/2025 USD 266,000 204 0.19 Adani Electricity Mumbai 3.949% 12/2/2030 USD 200,000 155 0.15 Adani Transmission 4% 3/8/2026 USD 200,000 158 0.15 Adevinta 2.625% 15/11/2025 EUR 100,000 91 0.09 Adient 9% 15/4/2025 USD 63,000 51 0.05 Adient Global s 4.875% 15/8/2026 USD 200,000 150 0.14 AEP Texas 3.45% 15/1/2050 USD 37,000 30 0.03 Affinity Gaming 6.875% 15/12/2027 USD 90,000 69 0.07 AIG 6.9% 15/3/2032 USD 175,000 193 0.18 Akbank T.A.S. 7.2% 16/3/2027 USD 200,000 146 0.14 Alexandria I 1.875% 1/2/2033 USD 104,000 76 0.07 Alfa 5.25% 25/3/2024 USD 200,000 161 0.15 Alstria Office 1.5% 23/6/2026 EUR 100,000 94 0.09 Alstria Office REIT 0.5% 26/9/2025 EUR 100,000 90 0.08 Alstria Office REIT 1.5% 15/11/2027 EUR 100,000 93 0.09 Altice Finco 4.75% 15/1/2028 EUR 100,000 86 0.08 Altice France 5.875% 1/2/2027 EUR 100,000 95 0.09 Altice France 8% 15/5/2027 EUR 100,000 97 0.09 Altria 2.2% 15/6/2027 EUR 100,000 98 0.09 Altria 4.4% 14/2/2026 USD 412,000 350 0.33 Altria 4.8% 14/2/2029 USD 126,000 110 0.10 American Tower 0.5% 15/1/2028 EUR 100,000 90 0.08 American Tower 1% 15/1/2032 EUR 100,000 91 0.09 American Tower 3.95% 15/3/2029 USD 182,000 155 0.15 American Tower Trust 1 3.652% 15/3/2048 USD 31,000 25 0.02 Anheuser-Busch Finance 4.32% 15/5/2047 CAD 208,000 136 0.13 Anheuser-Busch InBev Worldwide 3.5% 1/6/2030 USD 167,000 142 0.13 Anheuser-Busch InBev Worldwide 4.7% 1/2/2036 USD 90,000 84 0.08 Anheuser-Busch InBev Worldwide 4.9% 1/2/2046 USD 66,000 63 0.06 Annington Funding 1.65% 12/7/2024 EUR 100,000 94 0.09 Apergy 6.375% 1/5/2026 USD 91,000 67 0.06 Apple 2.4% 20/8/2050 USD 261,000 195 0.18 Ascent Resources 8.25% 31/12/2028 USD 212,000 155 0.15 ASGN 4.625% 15/5/2028 USD 246,000 187 0.18 AT&T 2.3% 1/6/2027 USD 121,000 94 0.09 AT&T 3.55% 15/9/2055 USD 52,000 38 0.04 AT&T 3.65% 15/9/2059 USD 16,000 12 0.01 AT&T 3.8% 1/12/2057 USD 97,000 74 0.07 Athene 4.125% 12/1/2028 USD 74,000 60 0.06 Athene Global 2.45% 20/8/2027 USD 283,000 215 0.20 Austin 7.125% 15/12/2028 USD 332,000 254 0.24
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Aberdeen Standard Capital Offshore Strategy Fund Limited Global Fixed Interest Class
Portfolio Statement (cont.)
Investments Holding Market Value Total Net Assets £000’s % Non-Sterling Denominated Corporate Bonds (cont.)
Autostrad 2% 4/12/2028 EUR 138,000 124 0.12 Baker Hughes 4.08% 15/12/2047 USD 124,000 102 0.10 Baker Hughes 5.125% 15/9/2040 USD 110,000 106 0.10 Ball 5% 15/3/2022 USD 1,000,000 765 0.71 Banca Monte dei Paschi di Siena 8% 22/1/2030 EUR 175,000 154 0.14 Banco Bilbao Vizcaya Argentaria 6.5% Perpetual USD 200,000 156 0.15 Banco Santander 6.25% Perpetual EUR 200,000 183 0.17 Banff Merger 8.375% 1/9/2026 EUR 101,000 94 0.09 Bank of America 2.456% 22/10/2025 USD 173,000 135 0.13 Bank of America 2.496% 13/2/2031 USD 150,000 117 0.11 Bank of America 2.592% 29/4/2031 USD 65,000 51 0.05 Bank of America 6.25% Perpetual USD 231,000 188 0.18 Bank of America 7.75% 14/5/2038 USD 250,000 312 0.29 Banque Federative du Credit Mutuel 1.875% 18/6/2029 EUR 100,000 98 0.09 Barclays 2.852% 7/5/2026 USD 307,000 241 0.23 BAT International Finance 2.25% 16/1/2030 EUR 100,000 98 0.09 Bausch Health 5.5% 1/11/2025 USD 90,000 68 0.06 Bausch Health Americas 8.5% 31/1/2027 USD 147,000 120 0.11 BBVA 6.75% 30/9/2022 USD 150,000 119 0.11 Berry Global 1.57% 15/1/2026 USD 81,000 60 0.06 Berry Global Escrow 4.875% 15/7/2026 USD 278,000 218 0.20 Bharti Airtel International Netherlands 3.375% 20/5/2021 EUR 100,000 90 0.08 Black Hills 3.05% 15/10/2029 USD 151,000 120 0.11 Blitz F18-674 6% 30/7/2026 EUR 114,000 107 0.10 Boeing 3.2% 1/3/2029 USD 159,000 123 0.12 Boeing 4.875% 1/5/2025 USD 83,000 69 0.07 Boeing 5.04% 1/5/2027 USD 82,000 70 0.07 Boeing 5.15% 1/5/2030 USD 45,000 40 0.04 Boeing 5.705% 1/5/2040 USD 63,000 60 0.06 Boston Gas 3.001% 1/8/2029 USD 40,000 32 0.03 Boyd Gaming 8.625% 1/6/2025 USD 167,000 136 0.13 BP Capital Markets 0.831% 8/11/2027 EUR 100,000 93 0.09 BP Capital Markets 3.25% Perpetual EUR 300,000 286 0.27 BP Capital Markets 3.625% Perpetual EUR 100,000 98 0.09 BPCE 2.375% 14/1/2025 USD 250,000 193 0.18 BPCE 4.625% 11/7/2024 USD 200,000 164 0.15 BPCE 5.7% 22/10/2023 USD 200,000 166 0.16 Braskem Netherlands Finance BV 4.5% 10/1/2028 USD 200,000 154 0.14 Brighthouse Financial 5.625% 15/5/2030 USD 128,000 116 0.11 Broadcom Inc 4.3% 15/11/2032 USD 115,000 100 0.09
76 04 Global Fixed Interest Class_ASC311219 09-Apr-21 10:57 AM Page 77
Aberdeen Standard Capital Offshore Strategy Fund Limited Global Fixed Interest Class
Portfolio Statement (cont.)
Investments Holding Market Value Total Net Assets £000’s % Non-Sterling Denominated Corporate Bonds (cont.)
Broadcom Inc 4.7% 15/4/2025 USD 88,000 74 0.07 Broadridge Financial Solutions 2.9% 1/12/2029 USD 89,000 71 0.07 Bruce Mansfield Unit 8.875% Perpetual* USD 111,000 0 0.00 Burlington Northern Santa 4.15% 15/12/2048 USD 73,000 71 0.07 Burlington Northern Santa Fe 4.7% 1/9/2045 USD 34,000 35 0.03 Burlington Northern Santa Fe 5.15% 1/9/2043 USD 270,000 285 0.27 C&W Senior Financing DAC 6.875% 15/9/2027 USD 200,000 158 0.15 Cable One 4% 15/11/2030 USD 103,000 78 0.07 Caixa Geral de Depositos 10.75% Perpetual EUR 200,000 197 0.18 CaixaBank 2.25% 17/4/2030 EUR 100,000 94 0.09 Carnival 10.5% 1/2/2026 USD 68,000 58 0.05 Carnival Corp 7.625% 1/3/2026 USD 38,000 30 0.03 Carrier 2.493% 15/2/2027 USD 136,000 107 0.10 Carrier Global 2.7% 15/2/2031 USD 177,000 139 0.13 Carrier Global Corporation 3.577% 5/4/2050 USD 55,000 45 0.04 CB Escrow 8% 15/10/2025 USD 163,000 127 0.12 CCM Merger 6.375% 1/5/2026 USD 225,000 173 0.16 CCO 4.25% 1/2/2031 USD 23,000 18 0.02 CCO Capital 5.5% 1/5/2026 USD 323,000 245 0.23 Cedar Fair 5.25% 15/7/2029 USD 97,000 73 0.07 Centene 4.25% 15/12/2027 USD 28,000 22 0.02 Centene 4.625% 15/12/2029 USD 46,000 37 0.03 CenturyLink 5.125% 15/12/2026 USD 112,000 87 0.08 Channel Link Enterprises Finance 1.761% 30/6/2050 EUR 100,000 89 0.08 Charter Communications 4.80% 1/3/2050 USD 165,000 144 0.13 Charter Communications Operating 5.05% 30/3/2029 USD 143,000 127 0.12 Charter Communications Operating 6.384% 23/10/2035 USD 64,000 64 0.06 Cheniere Energy 4.625% 15/10/2028 USD 92,000 71 0.07 Cheniere Energy Partners 5.25% 1/10/2025 USD 233,000 175 0.16 Cheung Kong Infrastructure Finance BVI 1% 12/12/2024 EUR 100,000 91 0.08 Chevron 4.95% 15/8/2047 USD 62,000 63 0.06 China Evergrande 9.5% 11/4/2022 USD 200,000 139 0.13 China Overseas Finance Cayman VIII 3.05% 27/11/2029 USD 427,000 320 0.30 CIFI 6% 16/7/2025 USD 200,000 157 0.15 Cifi Holdings 5.25% 13/5/2026 USD 204,000 155 0.14 Cigna 4.125% 15/11/2025 USD 105,000 88 0.08 Cimpress 7% 15/6/2026 USD 290,000 223 0.21 Citigroup 3.2% 21/10/2026 USD 104,000 85 0.08 Citigroup 3.887% 10/1/2028 USD 181,000 152 0.14 Citigroup 4.45% 29/9/2027 USD 175,000 151 0.14 Citigroup 8.125% 15/7/2039 USD 174,000 228 0.21
77 04 Global Fixed Interest Class_ASC311219 09-Apr-21 10:57 AM Page 78
Aberdeen Standard Capital Offshore Strategy Fund Limited Global Fixed Interest Class
Portfolio Statement (cont.)
Investments Holding Market Value Total Net Assets £000’s % Non-Sterling Denominated Corporate Bonds (cont.)
Citizens Financial 2.5% 6/2/2030 USD 96,000 75 0.07 Citizens Financial Group 2.638% 30/9/2032 USD 72,000 55 0.05 CK Hutchison Finance 16 1.25% 6/4/2023 EUR 129,000 119 0.11 CK Hutchison Telecom Finance 0.75% 17/4/2026 EUR 100,000 92 0.09 Clean Harbors 4.875% 15/7/2027 USD 214,000 163 0.15 Clearwater Seafoods 6.875% 1/5/2025 USD 297,000 227 0.21 CNAC HK Finbridge 1.75% 14/6/2022 EUR 111,000 99 0.09 Cnx Resources 6% 15/1/2029 USD 97,000 73 0.07 CNX Resources 7.25% 14/3/2027 USD 29,000 23 0.02 Coentreprise de Transport d'Electricite 2.125% 29/7/2032 EUR 100,000 107 0.10 Cofinimmo 0.875% 2/12/2030 EUR 100,000 91 0.08 Colonial Enterprises 3.25% 15/5/2030 USD 81,000 67 0.06 Comcast 4.6% 15/10/2038 USD 137,000 132 0.12 Comcast 4.65% 15/7/2042 USD 47,000 47 0.04 Comcast 6.4% 15/5/2038 USD 33,000 38 0.04 Commonwealth of Massachusetts 2.9% 01/9/2049 USD 55,000 43 0.04 Comstock 9.75% 15/8/2026 USD 139,000 110 0.10 Conagra Brands 1.375% 1/11/2027 USD 86,000 63 0.06 Consol 6.5% 1/10/2028 USD 227,000 178 0.17 Continental Resources 4.375% 15/1/2028 USD 308,000 231 0.22 Continental Resources 4.5% 15/4/2023 USD 26,000 20 0.02 Continental Resources 5.75% 15/1/2031 USD 118,000 96 0.09 Cornerstone Building 8% 15/4/2026 USD 133,000 102 0.10 Cornerstone Building Brands 6.125% 15/1/2029 USD 151,000 117 0.11 Corporate Office 3.6% 15/5/2023 USD 150,000 116 0.11 Country Garden 5.125% 14/1/2027 USD 200,000 158 0.15 Cox Communications 1.8% 1/10/2030 USD 158,000 115 0.11 Credit Agricole 6.5% Perpetual EUR 300,000 274 0.26 Credit Suisse 3.574% 9/1/2023 USD 250,000 188 0.18 Crestwood Midstream Finance 5.625% 1/5/2027 USD 52,000 38 0.04 Crestwood Midstream Partners 6.25% 1/4/2023 USD 124,000 91 0.08 CRH SMW Finance 1.25% 5/11/2026 EUR 100,000 96 0.09 Crown Euro Holdings 3.375% 15/5/2025 EUR 100,000 97 0.09 CSC4.625% 1/12/2030 USD 258,000 197 0.18 CSN Resources 7.625% 13/2/2023 USD 200,000 152 0.14 CSX 4.75% 15/11/2048 USD 68,000 68 0.06 CVS Health 4.78% 25/3/2038 USD 52,000 48 0.04 CVS Health 5.05% 25/3/2048 USD 67,000 66 0.06 CVS Health 5.125% 20/7/2045 USD 340,000 335 0.31 CVS Health 5.3% 5/12/2043 USD 69,000 68 0.06 CVS Pass-Through Trust 6.036% 10/12/2028 USD 154,830 132 0.12
78 04 Global Fixed Interest Class_ASC311219 09-Apr-21 10:57 AM Page 79
Aberdeen Standard Capital Offshore Strategy Fund Limited Global Fixed Interest Class
Portfolio Statement (cont.)
Investments Holding Market Value Total Net Assets £000’s % Non-Sterling Denominated Corporate Bonds (cont.)
Daimler Canada Finance 2.23% 16/12/2021 CAD 100,000 58 0.05 Danske Bank 0.875% 22/5/2023 EUR 126,000 115 0.11 Danske Bank 5.875% Perpetual EUR 200,000 187 0.17 Danske Bank A/S 1.375% 12/2/2030 EUR 100,000 91 0.08 Dartmouth-Hitchcock Health-Anleihe 4.178% 1/8/2048 USD 42,000 36 0.03 Dell International 6.2% 15/7/2030 USD 99,000 94 0.09 Deutsche Annington Finance 5% 2/10/2023 USD 100,000 78 0.07 Deutsche Bank 1% 19/11/2025 EUR 200,000 182 0.17 Deutsche Bank 1.375% 3/9/2026 EUR 100,000 92 0.09 Deutsche Bank 1.75% 19/11/2030 EUR 100,000 94 0.09 Deutsche Bank 7.5% Perpetual USD 200,000 156 0.15 Diamond 1 Finance 5.875% 15/6/2021 USD 48,000 35 0.03 Diamond 1 Finance 6.02% 15/6/2026 USD 128,000 114 0.11 Digicel 0.5 10% 1/4/2024 USD 121,455 80 0.07 Digital Dutch 1.5% 15/3/2030 EUR 100,000 96 0.09 Digital Dutch Finco 1% 15/1/2032 EUR 113,000 105 0.10 DISH DBS 5% 15/3/2023 USD 92,000 69 0.06 DISH DBS 6.75% 1/6/2021 USD 199,000 149 0.14 DISH Network 3.375% 15/8/2026 USD 195,000 136 0.13 Dominion 3.07% 15/8/2024 USD 93,000 73 0.07 Dominion Energy Gas 3.9% 15/11/2049 USD 75,000 64 0.06 Dominion Gas 3.6% 15/12/2024 USD 50,000 40 0.04 DTE Electric 4.05% 15/5/2048 USD 77,000 74 0.07 Duke Energy Carolinas 3.7% 1/12/2047 USD 26,000 23 0.02 Duke Energy Florida 2.5% 1/12/2029 USD 95,000 76 0.07 E.ON 0.35% 28/2/2030 EUR 76,000 69 0.06 Electricite de France 2% 9/12/2049 EUR 100,000 104 0.10 Electricite De France 4% Perpetual EUR 200,000 193 0.18 EMC 5.3% 1/10/2029 USD 221,000 198 0.18 EMD Finance 3.25% 19/3/2025 USD 35,000 28 0.03 Encompass Health 4.5% 1/2/2028 USD 39,000 30 0.03 Encompass Health 4.75% 1/2/2030 USD 39,000 31 0.03 Encompass Health Corporation 4.625% 01/4/2031 USD 149,000 117 0.11 ENEL 2.25% FRN 10/3/2069 EUR 100,000 93 0.09 Energias de Portugal 1.71% 24/1/2028 USD 391,000 286 0.27 Energizer Gamma Acquisition BV 4.625% 15/7/2026 EUR 100,000 92 0.09 Energy Transfer Operating 6.75% Perpetual USD 126,000 84 0.08 Energy Transfer Partners 6.125% 15/12/2045 USD 60,000 52 0.05 Energy Transfer Partners 6.5% 1/2/2042 USD 58,000 52 0.05 Engie 1.625% Perpetual EUR 100,000 92 0.09 Entergy Texas 1.75% 15/3/2031 USD 127,000 93 0.09
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Aberdeen Standard Capital Offshore Strategy Fund Limited Global Fixed Interest Class
Portfolio Statement (cont.)
Investments Holding Market Value Total Net Assets £000’s % Non-Sterling Denominated Corporate Bonds (cont.)
Enterprise Products 4.8% 1/2/2049 USD 70,000 65 0.06 Enterprise Products Operating 4.9% 15/5/2046 USD 48,000 45 0.04 Enviva Partners Finance 6.5% 15/1/2026 USD 111,000 86 0.08 EOG Resources 4.15% 15/1/2026 USD 100,000 85 0.08 EQT 3.9% 1/10/2027 USD 109,000 79 0.07 EQT 5% 15/1/2029 USD 9,000 7 0.01 EQT 6.125% 1/2/2025 USD 155,000 129 0.12 Equifax 2.6% 15/12/2025 USD 30,000 24 0.02 Equifax 3.1% 15/5/2030 USD 59,000 48 0.04 Equinix 1.8% 15/7/2027 USD 41,000 31 0.03 Equinix 2.625% 18/11/2024 USD 69,000 54 0.05 Equinix 3% 15/7/2050 USD 43,000 32 0.03 ESH Hospitality 4.625% 1/10/2027 USD 73,000 55 0.05 ESH Hospitality 5.25% 1/5/2025 USD 253,000 190 0.18 Eskom SOC 7.125% 11/2/2025 USD 569,000 428 0.40 Evergy 2.9% 15/9/2029 USD 61,000 49 0.05 Fair Isaac 4% 15/6/2028 USD 100,000 77 0.07 FCA Bank 0.25% 28/2/2023 EUR 100,000 90 0.08 FCA Bank SpA Ireland 1% 21/2/2022 EUR 100,000 91 0.08 FedEx 5.25% 15/5/2050 USD 106,000 110 0.10 Fiat Chrysler Auto 3.375% 07/7/2023 EUR 127,000 121 0.11 Fidelity National Information Services 1% 3/12/2028 EUR 100,000 94 0.09 Firmenich Productions Participations 1.375% 30/10/2026 EUR 100,000 96 0.09 Firmenich Productions Participations 1.75% 30/4/2030 EUR 100,000 99 0.09 First Quantum Minerals 6.5% 1/3/2024 USD 200,000 150 0.14 First Quantum Minerals 7.25% 1/4/2023 USD 212,000 160 0.15 Florida Power & Light 4.125% 1/6/2048 USD 86,000 83 0.08 Ford Motor 4.063% 1/11/2024 USD 200,000 154 0.14 Ford Motor 8.5% 21/4/2023 USD 157,000 129 0.12 Ford Motor 9% 22/4/2025 USD 235,000 211 0.20 Ford Motor 9.625% 22/4/2030 USD 10,000 10 0.01 Ford Motor Credit 4.389% 8/1/2026 USD 462,000 355 0.33 Fox 5.476% 25/1/2039 USD 134,000 134 0.12 Fox 5.576% 25/1/2049 USD 64,000 68 0.06 Foxtrot Escrow 12.25% 15/11/2026 USD 90,000 75 0.07 Frontier Communications 5% 1/5/2028 USD 202,000 154 0.14 Fxi Holdings 7.875% 1/11/2024 USD 101,000 74 0.07 Galaxy Pipeline Assets Bidco 1.75% 30/9/2027 USD 264,000 196 0.18 Garfunkelux 6.75% 1/11/2025 EUR 100,000 92 0.09 Gartner 4.5% 1/7/2028 USD 130,000 100 0.09
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Aberdeen Standard Capital Offshore Strategy Fund Limited Global Fixed Interest Class
Portfolio Statement (cont.)
Investments Holding Market Value Total Net Assets £000’s % Non-Sterling Denominated Corporate Bonds (cont.)
GCI 4.75% 15/10/2028 USD 150,000 117 0.11 GELF Issuer I 1.125% 18/7/2029 EUR 200,000 185 0.17 General Motors 6.25% 2/10/2043 USD 72,000 71 0.07 General Motors 6.75% 1/4/2046 USD 40,000 42 0.04 General Motors Financial 3.85% 21/2/2023 AUD 210,000 124 0.12 General Motors Financial 5.75% Perpetual USD 194,000 148 0.14 George Washington 4.126% 15/9/2048 USD 100,000 93 0.09 Georgian Railway 7.75% 11/7/2022 USD 550,000 424 0.40 GFL Environmental 3.5% 1/9/2028 USD 105,000 78 0.07 GFL Environmental 3.75% 1/8/2025 USD 40,000 30 0.03 GFL Environmental 4% 1/8/2028 USD 48,000 35 0.03 GFL Environmental 5.125% 15/12/2026 USD 71,000 55 0.05 Gilead Sciences 1.2% 1/10/2027 USD 96,000 71 0.07 Global Switch 1.5% 31/1/2024 EUR 100,000 93 0.09 GLP Capital 5.375% 15/4/2026 USD 110,000 92 0.09 GLP Capital II 4% 15/1/2031 USD 65,000 52 0.05 Goodyear Tire & Rubber 9.5% 31/5/2025 USD 301,000 249 0.23 Graham 5.75% 1/6/2026 USD 174,000 134 0.12 Grand Parkway Transportation 3.236% 1/10/2052 USD 105,000 80 0.07 Grifols 2.25% 15/11/2027 EUR 100,000 91 0.08 Halliburton 5% 15/11/2045 USD 103,000 90 0.08 Hartford Financial Services 3.6% 19/8/2049 USD 48,000 41 0.04 Hartford Financial Services 6.1% 1/10/2041 USD 37,000 40 0.04 HCA 5.25% 15/6/2026 USD 167,000 145 0.14 HCA 5.625% 1/9/2028 USD 175,000 151 0.14 HCA 5.875% 1/2/2029 USD 25,000 22 0.02 HeidelbergCement Finance Luxembourg 1.125% 1/12/2027 EUR 64,000 61 0.06 Howmet Aerospace 6.875% 1/5/2025 USD 288,000 247 0.23 Iberdrola International 1.874% Perpetual EUR 100,000 92 0.09 ICD Sukuk 5% 1/2/2027 USD 200,000 158 0.15 IHS Netherlands Holdco 8% 18/9/2027 USD 200,000 157 0.15 Informa 1.25% 22/4/2028 EUR 100,000 90 0.08 ING Groep 2.125% 26/5/2031 EUR 100,000 96 0.09 ING Groep 4.7% 22/3/2028 USD 200,000 157 0.15 Ingersoll-Rand Luxembourg Finance 4.5% 21/3/2049 USD 149,000 142 0.13 Intel 4.1% 11/5/2047 USD 74,000 69 0.06 International Game Technology 3.5% 15/6/2026 EUR 200,000 185 0.17 International Game Technology 3.5% 15/7/2024 EUR 127,000 118 0.11 Intertrust 3.375% 15/11/2025 EUR 100,000 91 0.08 Intesa Sanpaolo 1/3/2069 EUR 250,000 237 0.22
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Aberdeen Standard Capital Offshore Strategy Fund Limited Global Fixed Interest Class
Portfolio Statement (cont.)
Investments Holding Market Value Total Net Assets £000’s % Non-Sterling Denominated Corporate Bonds (cont.)
Intesa Sanpaolo 3.928% 15/9/2026 EUR 192,000 193 0.18 Intrum AB 3% 15/9/2027 EUR 100,000 86 0.08 Intrum AB 3.5% 15/7/2026 EUR 100,000 88 0.08 IQVIA 2.875% 15/6/2028 EUR 100,000 92 0.09 Iron Mountain 4.875% 15/9/2029 USD 55,000 42 0.04 Iron Mountain 5% 15/7/2028 USD 129,000 100 0.09 Iron Mountain 5.25% 15/3/2028 USD 216,000 167 0.16 Iron Mountain 5.25% 15/7/2030 USD 87,000 69 0.06 Islandsbanki HF 1.125% 19/1/2024 EUR 145,000 131 0.12 JBS Investments II 5.75% 15/1/2028 USD 200,000 157 0.15 JBS Investments II 7% 15/1/2026 USD 200,000 158 0.15 JBS USA Finance 5.5% 15/1/2030 USD 272,000 229 0.21 Jersey Central Power & Light 4.3% 15/1/2026 USD 83,000 68 0.06 JobsOhio Beverage System 2.833% 1/1/2038 USD 60,000 47 0.04 JPMorgan Chase 2.522% 22/4/2031 USD 306,000 241 0.22 JPMorgan Chase 2.956% 13/5/2031 USD 109,000 87 0.08 JPMorgan Chase 4.203% 23/7/2029 USD 215,000 188 0.18 JPMorgan Chase 6.4% 15/5/2038 USD 70,000 79 0.07 KazMunayGas NationalJSC 6.375% 24/10/2048 USD 740,000 775 0.72 Kilroy Realty 3.45% 15/12/2024 USD 93,000 74 0.07 Kilroy Realty 4.25% 15/8/2029 USD 120,000 102 0.10 Kraton Polymers 4.25% 15/12/2025 USD 116,000 87 0.08 Lennar 4.75% 29/11/2027 USD 87,000 75 0.07 Lennar 4.875% 15/12/2023 USD 17,000 14 0.01 Lennar 5.25% 1/6/2026 USD 57,000 49 0.05 Lennar 5.875% 15/11/2024 USD 58,000 49 0.05 LHMC Finco 2 7.25% 2/10/2025 EUR 104,000 84 0.08 LHMC Finco Sarl 6.25% 20/12/2023 EUR 125,000 111 0.10 Lincoln Financing 3.625% 1/4/2024 EUR 127,000 115 0.11 Lincoln National 3.4% 15/1/2031 USD 87,000 73 0.07 Logmein 5.5% 1/9/2027 USD 102,000 78 0.07 Macy's 8.375% 15/6/2025 USD 264,000 214 0.20 Marriott Ownership 4.75% 15/1/2028 USD 156,000 116 0.11 Matterhorn Telecom 3.125% 15/9/2026 EUR 100,000 89 0.08 McDonald's 3% 8/3/2024 AUD 50,000 30 0.03 MDC 3.85% 15/1/2030 USD 361,000 294 0.27 MDC 6% 15/1/2043 USD 121,000 119 0.11 Medtronic 1.5% 2/7/2039 EUR 100,000 100 0.09 Medtronic 4.375% 15/3/2035 USD 37,000 36 0.03 Medtronic Global Holdings 1.625% 15/10/2050 EUR 100,000 100 0.09
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Aberdeen Standard Capital Offshore Strategy Fund Limited Global Fixed Interest Class
Portfolio Statement (cont.)
Investments Holding Market Value Total Net Assets £000’s % Non-Sterling Denominated Corporate Bonds (cont.)
Merlin Entertainments 5.75% 15/6/2026 USD 200,000 154 0.14 Mexichem 4% 4/10/2027 USD 200,000 162 0.15 MGM Resorts International 4.625% 1/9/2026 USD 75,000 58 0.05 MGM Resorts International 5.5% 15/4/2027 USD 110,000 90 0.08 MHP Lux 6.95% 3/4/2026 USD 200,000 160 0.15 Microsoft 2.525% 1/6/2050 USD 297,000 229 0.21 Microsoft 4.1% 6/2/2037 USD 114,000 109 0.10 Midcontinent Communications 5.375% 15/8/2027 USD 130,000 99 0.09 Minera Mexico 4.5% 26/1/2050 USD 246,000 208 0.19 Minerals Technologies 5% 1/7/2028 USD 157,000 120 0.11 Mississippi Power 3.95% 30/3/2028 USD 94,000 80 0.07 Molson Coors International LP 3.44% 15/7/2026 CAD 233,000 144 0.13 Mondelez 1.5% 4/2/2031 USD 87,000 63 0.06 Moody's 4.875% 17/12/2048 USD 109,000 110 0.10 Morgan Stanley 1.794% 13/2/2032 USD 158,000 116 0.11 Morgan Stanley 2.188% 28/4/2026 USD 87,000 67 0.06 Morgan Stanley 3.622% 1/4/2031 USD 136,000 116 0.11 Morgan Stanley 4% 23/7/2025 USD 130,000 109 0.10 Moss Creek Resources 7.5% 15/1/2026 USD 118,000 66 0.06 Motors 0% Bonds 15/7/2015* USD 950,000 0 0.00 Mylan 3.95% 15/6/2026 USD 87,000 73 0.07 Nassa Topco 2.875% 6/4/2024 EUR 100,000 94 0.09 National Rural Utilities Cooperative Finance 4.3% 15/3/2049 USD 32,000 31 0.03 National Rural Utilities Cooperative Finance 4.4% 1/11/2048 USD 63,000 61 0.06 NatWest Markets 2% 8/3/2023 EUR 100,000 92 0.09 Navient 5.5% 25/1/2023 USD 314,000 240 0.22 Navient 6.5% 15/6/2022 USD 72,000 56 0.05 NBCUniversal Media 4.45% 15/1/2043 USD 73,000 70 0.07 NBM US 7% 14/5/2026 USD 200,000 159 0.15 NCL 10.25% 1/2/2026 USD 180,000 154 0.14 Ncl 3.625% 15/12/2024 USD 66,000 46 0.04 NCL 5.875% 15/3/2026 USD 56,000 43 0.04 NE Property 1.875% 9/10/2026 EUR 140,000 125 0.12 NE Property 3.375% 14/7/2027 EUR 122,000 119 0.11 Netflix 3% 15/6/2025 EUR 100,000 96 0.09 Netflix 3.625% 15/6/2025 USD 168,000 132 0.12 Netflix 3.875% 15/11/2029 EUR 100,000 103 0.10 Netflix 5.875% 15/11/2028 USD 226,000 198 0.18 Nevada Power 2.4% 1/5/2030 USD 128,000 101 0.09
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Aberdeen Standard Capital Offshore Strategy Fund Limited Global Fixed Interest Class
Portfolio Statement (cont.)
Investments Holding Market Value Total Net Assets £000’s % Non-Sterling Denominated Corporate Bonds (cont.)
New Enterprise Stone & Lime 6.25% 15/3/2026 USD 131,000 98 0.09 Nexstar Broadcasting 4.75% 1/11/2028 USD 181,000 139 0.13 Nidda Healthcare 3.5% 30/9/2024 EUR 100,000 89 0.08 Nielsen Finance 5.625% 1/10/2028 USD 209,000 166 0.15 Nielsen Finance 5.875% 1/10/2030 USD 35,000 29 0.03 Noble Energy 4.95% 15/8/2047 USD 62,000 65 0.06 Nomad Foods 3.25% 15/5/2024 EUR 100,000 91 0.08 Novelis 4.75% 30/1/2030 USD 62,000 49 0.05 Novelis 5.875% 30/9/2026 USD 181,000 138 0.13 NRG Energy 3.375% 15/2/2029 USD 84,000 63 0.06 NRG Energy 3.625% 15/2/2031 USD 60,000 45 0.04 NRG Energy 5.25% 15/6/2029 USD 118,000 95 0.09 NRG Energy 6.625% 15/1/2027 USD 57,000 44 0.04 NRG Energy 7.25% 15/5/2026 USD 283,000 218 0.20 Nykredit Realkredit 0.75% 20/1/2027 EUR 212,000 194 0.18 Occidental 5.5% 1/12/2025 USD 43,000 33 0.03 Occidental Petroleum 3% 15/2/2027 USD 90,000 59 0.06 Occidental Petroleum 3.5% 15/6/2025 USD 245,000 173 0.16 Occidental Petroleum 5.875% 1/09/2025 USD 64,000 50 0.05 Occidental Petroleum 6.375% 1/09/2028 USD 117,000 90 0.08 Occidental Petroleum 6.45% 15/9/2036 USD 31,000 24 0.02 Occidental Petroleum 6.625% 1/9/2030 USD 64,000 51 0.05 OCI 3.125% 1/11/2024 EUR 100,000 92 0.09 OCI 3.625% 15/10/2025 EUR 249,000 231 0.22 OI European BV 4% 15/3/2023 USD 150,000 112 0.10 Oklahoma Gas & Electric 3.3% 15/3/2030 USD 108,000 90 0.08 Oncor Electric Delivery 3.75% 1/4/2045 USD 100,000 89 0.08 Onemain 4% 15/9/2030 USD 169,000 128 0.12 Oracle 6.5% 15/4/2038 USD 81,000 94 0.09 Orlando Health Obligated 4.089% 1/10/2048 USD 64,000 58 0.05 Pacific 4.55% 1/07/2030 USD 96,524 80 0.07 Pacific Gas & Electric 4.5% 1/7/2040 USD 87,000 71 0.07 Parsley Energy 4.125% 15/2/2028 USD 147,000 113 0.11 Parsley Energy 5.375% 15/1/2025 USD 60,000 45 0.04 Partners Healthcare System 3.192% 1/7/2049 USD 113,000 91 0.08 Penske Truck Leasing 1.2% 15/11/2025 USD 103,000 76 0.07 Pepsi 3.375% 29/7/2049 USD 100,000 89 0.08 Pepsico 1.05% 9/10/2050 EUR 100,000 95 0.09 Petroleos de Venezuela 5.5% 12/4/2037 USD 764,200 19 0.02 Petroleos Mexicanos 2.5% 24/11/2022 EUR 129,000 115 0.11
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Aberdeen Standard Capital Offshore Strategy Fund Limited Global Fixed Interest Class
Portfolio Statement (cont.)
Investments Holding Market Value Total Net Assets £000’s % Non-Sterling Denominated Corporate Bonds (cont.)
Petroleos Mexicanos 6.5% 13/3/2027 USD 879,000 677 0.63 Petroleos Mexicanos 6.875% 4/8/2026 USD 340,000 272 0.25 Petroleos Mexicanos 6.95% 28/1/2060 USD 348,000 239 0.22 Petronas Capital 4.55% 21/4/2050 USD 200,000 195 0.18 Phillips 66 Partners 3.75% 1/3/2028 USD 117,000 93 0.09 Photo 8.5% 1/10/2026 USD 338,000 262 0.24 Plains All American Pipeline 3.8% 15/9/2030 USD 88,000 69 0.06 Post 5% 15/8/2026 USD 98,000 74 0.07 Post 5.625% 15/1/2028 USD 141,000 110 0.10 Progressive Corp 4.2% 15/3/2048 USD 120,000 117 0.11 Prudential Financial 3.7% 13/3/2051 USD 208,000 185 0.17 Public Storage 0.875% 24/1/2032 EUR 109,000 100 0.09 Quatrim 5.875% 15/1/2024 EUR 100,000 93 0.09 Qwest Capital Funding 6.875% 15/7/2028 USD 143,000 111 0.10 Qwest Capital Funding 7.75% 15/2/2031 USD 144,000 115 0.11 Rabobank 6.5% Perpetual EUR 125,000 148 0.14 Rabobank Nederland 4.625% 1/12/2023 USD 250,000 204 0.19 Rattler Midstream 5.625% 15/7/2025 USD 249,000 192 0.18 Regency Energy Partners 5% 1/10/2022 USD 59,000 46 0.04 RELX Capital 4% 18/3/2029 USD 68,000 59 0.06 Rentokil Initial 0.5% 14/10/2028 EUR 101,000 91 0.08 Reynolds American 5.85% 15/8/2045 USD 74,000 69 0.06 Rogers Communications 6.11% 25/8/2040 CAD 200,000 162 0.15 Royal Bank of Scotland 8.625% Perpetual USD 200,000 152 0.14 Royal Caribbean Cruises 3.7% 15/3/2028 USD 93,000 60 0.06 Royalty Pharma 3.3% 2/9/2040 USD 96,000 74 0.07 S&P Global 2.5% 1/12/2029 USD 61,000 49 0.05 S&P Global 3.25% 1/12/2049 USD 39,000 33 0.03 Sabine Pass Liquefaction 5% 15/3/2027 USD 152,000 131 0.12 Sabre Global 7.375% 1/9/2025 USD 169,000 134 0.12 SBA Tower Trust 2.836% 15/1/2050 USD 92,000 72 0.07 SBA Tower Trust 3.168% 9/4/2047 USD 80,000 59 0.06 Schlumberger 3.9% 17/5/2028 USD 88,000 73 0.07 Sealed Air 4% 1/12/2027 USD 21,000 16 0.01 Select Medical 6.25% 15/8/2026 USD 95,000 75 0.07 SELP Finance Sarl 1.5% 20/12/2026 EUR 100,000 96 0.09 Sensata Technologies 3.75% 15/2/2031 USD 78,000 59 0.06 Sharjah Sukuk 3.234% 23/10/2029 USD 252,000 194 0.18 Shell International Finance 0.875% 8/11/2039 EUR 166,000 152 0.14 Sherwin-Williams 3.45% 1/6/2027 USD 156,000 129 0.12
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Aberdeen Standard Capital Offshore Strategy Fund Limited Global Fixed Interest Class
Portfolio Statement (cont.)
Investments Holding Market Value Total Net Assets £000’s % Non-Sterling Denominated Corporate Bonds (cont.)
Shimao 5.6% 15/7/2026 USD 200,000 160 0.15 Shimao Property 4.75% 3/7/2022 USD 200,000 150 0.14 Siemens 6.125% 17/8/2026 USD 100,000 95 0.09 Simon Property 3.5% 1/9/2025 USD 72,000 58 0.05 Sirius XM Radio 5.5% 1/7/2029 USD 108,000 87 0.08 Six Flags Entertainment 4.875% 31/7/2024 USD 174,000 127 0.12 Six Flags Theme Parks 7% 1/7/2025 USD 137,000 108 0.10 Sixsigma Networks Mexico SA de CV 7.5% 2/5/2025 USD 200,000 136 0.13 Skand Enskilda 5.125% FRN Perpetual USD 200,000 152 0.14 SM Energy 5% 15/1/2024 USD 150,000 94 0.09 Smurfit Kappa 2.75% 1/2/2025 EUR 100,000 97 0.09 Société Générale 7.375% Perpetual USD 200,000 150 0.14 Sofima Holdings 3.75% 15/1/2028 EUR 100,000 91 0.08 SoftBank 6% Perpetual USD 400,000 285 0.27 Southern California Edison 1.2% 1/2/2026 USD 98,000 73 0.07 Southern Co Gas 1.75% 15/01/2031 USD 149,000 110 0.10 Southwestern Electric Power 3.85% 1/2/2048 USD 63,000 54 0.05 Spirit AeroSystems 7.5% 15/4/2025 USD 71,000 56 0.05 Sprint 7.875% 15/9/2023 USD 313,000 265 0.25 Sprint Capital 6.875% 15/11/2028 USD 115,000 111 0.10 Staples 10.75% 15/4/2027 USD 43,000 31 0.03 Staples 7.5% 15/4/2026 USD 187,000 143 0.13 Sunac China 6.5% 10/1/2025 USD 200,000 151 0.14 SunCoke Energy Partners Finance 7.5% 15/6/2025 USD 337,000 245 0.23 Sunoco 4.5% 15/5/2029 USD 137,000 104 0.10 Suzano Austria 6% 15/1/2029 USD 200,000 176 0.16 Symrise 1.375% 1/7/2027 EUR 93,000 87 0.08 Syngenta Finance 3.375% 16/4/2026 EUR 200,000 193 0.18 T Mobile 3.6% 15/11/2060 USD 116,000 90 0.08 Takeda Pharmaceutical 2.05% 31/3/2030 USD 237,000 177 0.17 Techem Verwaltungsgesellschaft 2% 15/7/2025 EUR 157,000 139 0.13 Teck Resources 3.9% 15/7/2030 USD 220,000 179 0.17 Teck Resources 6.25% 15/7/2041 USD 155,000 145 0.14 Tecnoglass 8.2% 31/1/2022 USD 200,000 153 0.14 Tele Columbus 3.875% 2/5/2025 EUR 100,000 90 0.08 Telecom Italia 5.303% 30/5/2024 USD 200,000 159 0.15 Telecom Italia Finance 7.75% 24/1/2033 EUR 44,000 58 0.05 Telefonica Europe 4.375% Perpetual EUR 100,000 97 0.09 Telefonica Europe BV 3% Perpetual EUR 100,000 92 0.09 Tencent 1.81% 26/1/2026 USD 200,000 149 0.14 Tenet Healthcare 4.625% 15/7/2024 USD 127,000 95 0.09
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Aberdeen Standard Capital Offshore Strategy Fund Limited Global Fixed Interest Class
Portfolio Statement (cont.)
Investments Holding Market Value Total Net Assets £000’s % Non-Sterling Denominated Corporate Bonds (cont.)
Tenet Healthcare 4.875% 1/1/2026 USD 105,000 80 0.07 Terega Sas 0.875% 17/9/2030 EUR 100,000 92 0.09 Tesco 6.15% 15/11/2037 USD 100,000 94 0.09 Teva Pharmaceutical 1.25% 31/3/2023 EUR 100,000 86 0.08 Teva Pharmaceutical 3.65% 10/11/2021 USD 96,000 71 0.07 Teva Pharmaceutical Finance Netherlands II 3.25% 15/4/2022 EUR 100,000 91 0.08 Teva Pharmaceutical Finance Netherlands III 6% 15/4/2024 USD 84,000 65 0.06 Teva Pharmaceutical Finance Netherlands III 6.75% 1/3/2028 USD 55,000 46 0.04 Titan Acquisition 7.75% 15/4/2026 USD 161,000 122 0.11 T-Mobile USA 3.5% 15/4/2025 USD 127,000 103 0.10 T-Mobile USA 3.875% 15/4/2030 USD 100,000 85 0.08 T-Mobile USA 6.5% 15/1/2026 USD 117,000 89 0.08 TOTAL 1.75% Perpetual EUR 117,000 107 0.10 Townsquare Media 6.875% 1/2/2026 USD 133,000 102 0.10 Trans-Canada Pipelines 8.05% 17/2/2039 CAD 153,000 140 0.13 Trinidad Petroleum 9.75% 15/6/2026 USD 500,000 428 0.40 Trivium Packaging Finance 5.5% 15/8/2026 USD 200,000 155 0.14 Turk Telekomunikasyon 4.875% 19/6/2024 USD 200,000 151 0.14 UBS 3.126% 13/8/2030 USD 200,000 164 0.15 Union Pacific 3.55% 15/8/2039 USD 94,000 80 0.07 Union Pacific 4.3% 1/3/2049 USD 90,000 86 0.08 Union Pacific 4.375% 10/9/2038 USD 235,000 216 0.20 UnitedHealth 3.875% 15/8/2059 USD 47,000 45 0.04 UnitedHealth 6.625% 15/11/2037 USD 52,000 61 0.06 Univision Communications 6.625% 1/6/2027 USD 128,000 101 0.09 UPCB Finance VII 3.625% 15/6/2029 EUR 200,000 185 0.17 Upjohn 4% 22/6/2050 USD 123,000 103 0.10 USA Compression Finance 6.875% 1/9/2027 USD 280,000 219 0.20 Valeant Pharmaceuticals International 7% 15/3/2024 USD 85,000 64 0.06 Ventas Realty LP 4.875% 15/4/2049 USD 69,000 63 0.06 Verisure 3.875% 15/7/2026 EUR 100,000 92 0.09 Verizon Communications 0.875% 8/4/2027 EUR 138,000 130 0.12 Verizon Communications 2.987% 30/10/2056 USD 450,000 331 0.31 Verizon Communications 4.329% 21/9/2028 USD 142,000 125 0.12 Verizon Communications 4.522% 15/9/2048 USD 30,000 29 0.03 Verizon Communications 5.012% 15/4/2049 USD 2,000 2 0.00 Vertical Midco 4.375% 15/7/2027 EUR 100,000 94 0.09 Vesteda Finance 2% 10/7/2026 EUR 100,000 99 0.09
87 04 Global Fixed Interest Class_ASC311219 09-Apr-21 10:57 AM Page 88
Aberdeen Standard Capital Offshore Strategy Fund Limited Global Fixed Interest Class
Portfolio Statement (cont.)
Investments Holding Market Value Total Net Assets £000’s % Non-Sterling Denominated Corporate Bonds (cont.)
VICI Properties 3.75% 15/2/2027 USD 87,000 65 0.06 VICI Properties 4.125% 15/8/2030 USD 106,000 82 0.08 Vistra Operations 5.625% 15/2/2027 USD 349,000 272 0.25 Vodafone 6.25% 3/10/2078 USD 200,000 162 0.15 Volkswagen Financial Services 1.375% 16/10/2023 EUR 82,000 76 0.07 Volkswagen International Finance 3.5% Perpetual EUR 100,000 94 0.09 Volkswagen International Finance 3.875% Perpetual EUR 100,000 96 0.09 Volkswagen of America Finance 1.25% 24/11/2025 USD 310,000 229 0.21 Wells Fargo 2.393% 2/6/2028 USD 145,000 113 0.11 Welltower 2.75% 15/1/2031 USD 72,000 56 0.05 Western Midstream Operating 3.1% 1/2/2025 USD 24,000 18 0.02 Western Midstream Operating LP 4.75% 15/8/2028 USD 47,000 36 0.03 Weyerhaeuser 4% 15/4/2030 USD 109,000 94 0.09 WMG Acquisition 3.625% 15/10/2026 EUR 100,000 92 0.09 WMG Acquisition 5.5% 15/4/2026 USD 57,000 43 0.04 Wolverine World Wide 6.375% 15/5/2025 USD 132,000 103 0.10 WPX Energy 4.5% 15/1/2030 USD 203,000 157 0.15 WPX Energy 5.75% 1/6/2026 USD 30,000 23 0.02 Wyndham Destinations 6.625% 31/7/2026 USD 140,000 117 0.11 Wyndham Worldwide 5.75% 1/4/2027 USD 32,000 26 0.02 Wyndham Worldwide 6.35% 1/10/2025 USD 222,000 184 0.17 XLIT 3.25% 29/6/2047 EUR 100,000 101 0.09 ZF Finance 3% 21/9/2025 EUR 200,000 185 0.17 ZF North America Capital 4.75% 29/4/2025 USD 120,000 95 0.09 Ziggo 3.375% 28/2/2030 EUR 118,000 106 0.10
Kazakhstan 0.00% (0.00%)
Fortebank* 112 0 0.00 Fortebank JSC GDR* 200.00
Derivatives 2.26% (1.42%)
AUD Forward Foreign Currency Contracts -0.01% (0.00%)
Forward Foreign Currency Contracts 19/1/2021 AUD (277,137) (156) (0.15) Forward Foreign Currency Contracts 19/1/2021 GBP 153,923 154 0.14
CAD Forward Foreign Currency Contracts 0.01% (-0.01%)
Forward Foreign Currency Contracts 19/1/2021 CAD (1,126,286) (647) (0.60) Forward Foreign Currency Contracts 19/1/2021 GBP 655,492 655 0.61
EUR Forward Foreign Currency Contracts 0.10% (0.03%)
Forward Foreign Currency Contracts 11/1/2021 EUR 107,309 96 0.09 Forward Foreign Currency Contracts 11/1/2021 GBP (97,434) (97) (0.09) Forward Foreign Currency Contracts 11/1/2021 EUR 107,538 96 0.09
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Aberdeen Standard Capital Offshore Strategy Fund Limited Global Fixed Interest Class
Portfolio Statement (cont.)
Investments Holding Market Value Total Net Assets £000’s % EUR Forward Foreign Currency Contracts (cont.)
Forward Foreign Currency Contracts 11/1/2021 GBP (97,510) (98) (0.09) Forward Foreign Currency Contracts 11/1/2021 EUR 101,250 91 0.09 Forward Foreign Currency Contracts 11/1/2021 GBP (92,125) (92) (0.09) Forward Foreign Currency Contracts 11/1/2021 EUR (100,000) (90) (0.08) Forward Foreign Currency Contracts 11/1/2021 GBP 90,661 91 0.08 Forward Foreign Currency Contracts 11/1/2021 EUR (100,000) (90) (0.08) Forward Foreign Currency Contracts 11/1/2021 GBP 90,801 91 0.08 Forward Foreign Currency Contracts 11/1/2021 EUR (100,544) (90) (0.08) Forward Foreign Currency Contracts 11/1/2021 GBP 90,857 91 0.08 Forward Foreign Currency Contracts 11/1/2021 EUR (5,938,126) (5,316) (4.96) Forward Foreign Currency Contracts 11/1/2021 GBP 5,340,169 5,340 4.98 Forward Foreign Currency Contracts 11/1/2021 EUR (100,000) (90) (0.08) Forward Foreign Currency Contracts 11/1/2021 GBP 89,567 90 0.08 Forward Foreign Currency Contracts 11/1/2021 EUR (99,684) (89) (0.08) Forward Foreign Currency Contracts 11/1/2021 GBP 90,124 90 0.08 Forward Foreign Currency Contracts 11/1/2021 EUR (136,363) (122) (0.11) Forward Foreign Currency Contracts 11/1/2021 GBP 123,265 123 0.11 Forward Foreign Currency Contracts 11/1/2021 EUR (100,864) (90) (0.08) Forward Foreign Currency Contracts 11/1/2021 GBP 91,587 92 0.09 Forward Foreign Currency Contracts 11/1/2021 EUR (100,000) (90) (0.08) Forward Foreign Currency Contracts 11/1/2021 GBP 90,674 91 0.08 Forward Foreign Currency Contracts 19/1/2021 EUR 88,144 79 0.07 Forward Foreign Currency Contracts 19/1/2021 GBP (80,949) (81) (0.08) Forward Foreign Currency Contracts 19/1/2021 EUR 105,627 95 0.09 Forward Foreign Currency Contracts 19/1/2021 GBP (95,645) (96) (0.09) Forward Foreign Currency Contracts 19/1/2021 EUR (10,209,186) (9,140) (8.52) Forward Foreign Currency Contracts 19/1/2021 GBP 9,218,795 9,219 8.60 Forward Foreign Currency Contracts 3/2/2021 EUR 109,277 98 0.09 Forward Foreign Currency Contracts 3/2/2021 GBP (99,126) (99) (0.09) Forward Foreign Currency Contracts 3/2/2021 EUR (3,310,913) (2,965) (2.77) Forward Foreign Currency Contracts 3/2/2021 GBP 2,969,005 2,969 2.77 Forward Foreign Currency Contracts 3/2/2021 EUR (75,497) (68) (0.06) Forward Foreign Currency Contracts 3/2/2021 GBP 67,377 67 0.06 Forward Foreign Currency Contracts 3/2/2021 EUR (96,957) (87) (0.08) Forward Foreign Currency Contracts 3/2/2021 GBP 88,673 89 0.08 Forward Foreign Currency Contracts 3/2/2021 EUR (153,732) (138) (0.13) Forward Foreign Currency Contracts 3/2/2021 GBP 138,996 139 0.13 Forward Foreign Currency Contracts 3/2/2021 EUR (74,728) (67) (0.06) Forward Foreign Currency Contracts 3/2/2021 GBP 67,598 68 0.06
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Aberdeen Standard Capital Offshore Strategy Fund Limited Global Fixed Interest Class
Portfolio Statement (cont.)
Investments Holding Market Value Total Net Assets £000’s % USD Forward Foreign Currency Contracts 2.18% (1.44%)
Forward Foreign Currency Contracts 6/1/2021 USD 136,344 100 0.09 Forward Foreign Currency Contracts 6/1/2021 GBP (100,297) (100) (0.09) Forward Foreign Currency Contracts 11/1/2021 USD (454,596) (333) (0.31) Forward Foreign Currency Contracts 11/1/2021 GBP 351,406 351 0.33 Forward Foreign Currency Contracts 11/1/2021 USD (25,398) (19) (0.02) Forward Foreign Currency Contracts 11/1/2021 GBP 19,480 19 0.02 Forward Foreign Currency Contracts 11/1/2021 USD (259,310) (190) (0.18) Forward Foreign Currency Contracts 11/1/2021 GBP 199,486 200 0.19 Forward Foreign Currency Contracts 11/1/2021 USD (24,032) (18) (0.02) Forward Foreign Currency Contracts 11/1/2021 GBP 18,567 19 0.02 Forward Foreign Currency Contracts 11/1/2021 USD (37,497) (27) (0.03) Forward Foreign Currency Contracts 11/1/2021 GBP 28,970 29 0.03 Forward Foreign Currency Contracts 11/1/2021 USD (314,606) (230) (0.21) Forward Foreign Currency Contracts 11/1/2021 GBP 241,972 242 0.23 Forward Foreign Currency Contracts 11/1/2021 USD (18,630) (14) (0.01) Forward Foreign Currency Contracts 11/1/2021 GBP 14,274 14 0.01 Forward Foreign Currency Contracts 11/1/2021 USD (110,555) (81) (0.08) Forward Foreign Currency Contracts 11/1/2021 GBP 84,704 85 0.08 Forward Foreign Currency Contracts 11/1/2021 USD (80,410) (59) (0.06) Forward Foreign Currency Contracts 11/1/2021 GBP 61,709 62 0.06 Forward Foreign Currency Contracts 11/1/2021 USD (23,288) (17) (0.02) Forward Foreign Currency Contracts 11/1/2021 GBP 17,941 18 0.02 Forward Foreign Currency Contracts 11/1/2021 USD (121,071) (89) (0.08) Forward Foreign Currency Contracts 11/1/2021 GBP 92,995 93 0.09 Forward Foreign Currency Contracts 11/1/2021 USD (262,000) (192) (0.18) Forward Foreign Currency Contracts 11/1/2021 GBP 201,243 201 0.19 Forward Foreign Currency Contracts 11/1/2021 USD (545,952) (399) (0.37) Forward Foreign Currency Contracts 11/1/2021 GBP 414,987 415 0.39 Forward Foreign Currency Contracts 11/1/2021 USD (27,417,164) (20,055) (18.70) Forward Foreign Currency Contracts 11/1/2021 GBP 20,783,715 20,784 19.38 Forward Foreign Currency Contracts 11/1/2021 USD (13,508) (10) (0.01) Forward Foreign Currency Contracts 11/1/2021 GBP 10,219 10 0.01 Forward Foreign Currency Contracts 11/1/2021 USD (33,611) (25) (0.02) Forward Foreign Currency Contracts 11/1/2021 GBP 25,407 25 0.02 Forward Foreign Currency Contracts 11/1/2021 USD (47,602) (35) (0.03) Forward Foreign Currency Contracts 11/1/2021 GBP 36,012 36 0.03 Forward Foreign Currency Contracts 11/1/2021 USD (84,000) (61) (0.06) Forward Foreign Currency Contracts 11/1/2021 GBP 63,547 64 0.06 Forward Foreign Currency Contracts 11/1/2021 USD (162,135) (119) (0.11) Forward Foreign Currency Contracts 11/1/2021 GBP 122,197 122 0.11 Forward Foreign Currency Contracts 11/1/2021 USD (164,394) (120) (0.11)
90 04 Global Fixed Interest Class_ASC311219 09-Apr-21 10:57 AM Page 91
Aberdeen Standard Capital Offshore Strategy Fund Limited Global Fixed Interest Class
Portfolio Statement (cont.)
Investments Holding Market Value Total Net Assets £000’s % USD Forward Foreign Currency Contracts (cont.)
Forward Foreign Currency Contracts 11/1/2021 GBP 124,364 124 0.12 Forward Foreign Currency Contracts 11/1/2021 USD (38,051) (28) (0.03) Forward Foreign Currency Contracts 11/1/2021 GBP 28,460 28 0.03 Forward Foreign Currency Contracts 11/1/2021 USD (76,443) (56) (0.05) Forward Foreign Currency Contracts 11/1/2021 GBP 57,176 57 0.05 Forward Foreign Currency Contracts 11/1/2021 USD (218,298) (160) (0.15) Forward Foreign Currency Contracts 11/1/2021 GBP 163,276 163 0.15 Forward Foreign Currency Contracts 11/1/2021 USD (40,461) (30) (0.03) Forward Foreign Currency Contracts 11/1/2021 GBP 30,307 30 0.03 Forward Foreign Currency Contracts 11/1/2021 USD (97,763) (72) (0.07) Forward Foreign Currency Contracts 11/1/2021 GBP 73,228 73 0.07 Forward Foreign Currency Contracts 11/1/2021 USD (41,304) (30) (0.03) Forward Foreign Currency Contracts 11/1/2021 GBP 30,968 31 0.03 Forward Foreign Currency Contracts 11/1/2021 USD (461,162) (337) (0.31) Forward Foreign Currency Contracts 11/1/2021 GBP 345,578 346 0.32 Forward Foreign Currency Contracts 11/1/2021 USD (103,092) (75) (0.07) Forward Foreign Currency Contracts 11/1/2021 GBP 77,151 77 0.07 Forward Foreign Currency Contracts 11/1/2021 USD (66,277) (48) (0.04) Forward Foreign Currency Contracts 11/1/2021 GBP 49,418 49 0.05 Forward Foreign Currency Contracts 11/1/2021 USD (22,673) (17) (0.02) Forward Foreign Currency Contracts 11/1/2021 GBP 17,084 17 0.02 Forward Foreign Currency Contracts 11/1/2021 USD (24,040) (18) (0.02) Forward Foreign Currency Contracts 11/1/2021 GBP 17,988 18 0.02 Forward Foreign Currency Contracts 11/1/2021 USD (18,000) (13) (0.01) Forward Foreign Currency Contracts 11/1/2021 GBP 13,367 13 0.01 Forward Foreign Currency Contracts 11/1/2021 USD (42,046) (31) (0.03) Forward Foreign Currency Contracts 11/1/2021 GBP 31,223 31 0.03 Forward Foreign Currency Contracts 11/1/2021 USD (42,221) (31) (0.03) Forward Foreign Currency Contracts 11/1/2021 GBP 31,353 31 0.03 Forward Foreign Currency Contracts 11/1/2021 USD (18,429) (13) (0.01) Forward Foreign Currency Contracts 11/1/2021 GBP 13,830 14 0.01 Forward Foreign Currency Contracts 11/1/2021 USD (21,000) (15) (0.01) Forward Foreign Currency Contracts 11/1/2021 GBP 15,759 16 0.02 Forward Foreign Currency Contracts 11/1/2021 USD (43,096) (32) (0.03) Forward Foreign Currency Contracts 11/1/2021 GBP 32,341 32 0.03 Forward Foreign Currency Contracts 11/1/2021 USD (56,567) (41) (0.04) Forward Foreign Currency Contracts 11/1/2021 GBP 42,777 43 0.04 Forward Foreign Currency Contracts 11/1/2021 USD (92,705) (68) (0.06) Forward Foreign Currency Contracts 11/1/2021 GBP 70,106 70 0.07 Forward Foreign Currency Contracts 11/1/2021 USD (361,003) (264) (0.25) Forward Foreign Currency Contracts 11/1/2021 GBP 270,912 271 0.25
91 04 Global Fixed Interest Class_ASC311219 09-Apr-21 10:57 AM Page 92
Aberdeen Standard Capital Offshore Strategy Fund Limited Global Fixed Interest Class
Portfolio Statement (cont.)
Investments Holding Market Value Total Net Assets £000’s % USD Forward Foreign Currency Contracts (cont.)
Forward Foreign Currency Contracts 11/1/2021 USD (92,875) (68) (0.06) Forward Foreign Currency Contracts 11/1/2021 GBP 69,290 69 0.07 Forward Foreign Currency Contracts 11/1/2021 USD (114,896) (84) (0.08) Forward Foreign Currency Contracts 11/1/2021 GBP 85,718 86 0.08 Forward Foreign Currency Contracts 11/1/2021 USD (57,943) (42) (0.04) Forward Foreign Currency Contracts 11/1/2021 GBP 43,514 44 0.04 Forward Foreign Currency Contracts 11/1/2021 USD (37,505) (27) (0.03) Forward Foreign Currency Contracts 11/1/2021 GBP 27,767 28 0.03 Forward Foreign Currency Contracts 11/1/2021 USD (38,111) (28) (0.03) Forward Foreign Currency Contracts 11/1/2021 GBP 28,215 28 0.03 Forward Foreign Currency Contracts 11/1/2021 USD (171,884) (126) (0.12) Forward Foreign Currency Contracts 11/1/2021 GBP 127,254 127 0.12 Forward Foreign Currency Contracts 11/1/2021 USD (58,000) (42) (0.04) Forward Foreign Currency Contracts 11/1/2021 GBP 42,664 43 0.04 Forward Foreign Currency Contracts 11/1/2021 USD (77,788) (57) (0.05) Forward Foreign Currency Contracts 11/1/2021 GBP 57,220 57 0.05 Forward Foreign Currency Contracts 11/1/2021 USD (136,344) (100) (0.09) Forward Foreign Currency Contracts 11/1/2021 GBP 100,293 100 0.09 Forward Foreign Currency Contracts 11/1/2021 USD (207,397) (152) (0.14) Forward Foreign Currency Contracts 11/1/2021 GBP 152,559 153 0.14 Forward Foreign Currency Contracts 11/1/2021 USD (14,438) (11) (0.01) Forward Foreign Currency Contracts 11/1/2021 GBP 10,657 11 0.01 Forward Foreign Currency Contracts 11/1/2021 USD (42,919) (31) (0.03) Forward Foreign Currency Contracts 11/1/2021 GBP 31,922 32 0.03 Forward Foreign Currency Contracts 11/1/2021 USD 24,703 18 0.02 Forward Foreign Currency Contracts 11/1/2021 GBP (19,111) (19) (0.02) Forward Foreign Currency Contracts 11/1/2021 USD 87,922 64 0.06 Forward Foreign Currency Contracts 11/1/2021 GBP (67,555) (68) (0.06) Forward Foreign Currency Contracts 11/1/2021 USD 121,771 89 0.08 Forward Foreign Currency Contracts 11/1/2021 GBP (94,115) (94) (0.09) Forward Foreign Currency Contracts 11/1/2021 USD 24,570 18 0.02 Forward Foreign Currency Contracts 11/1/2021 GBP (18,897) (19) (0.02) Forward Foreign Currency Contracts 11/1/2021 USD 94,290 69 0.06 Forward Foreign Currency Contracts 11/1/2021 GBP (72,242) (72) (0.07) Forward Foreign Currency Contracts 11/1/2021 USD 37,170 27 0.03 Forward Foreign Currency Contracts 11/1/2021 GBP (28,525) (29) (0.03) Forward Foreign Currency Contracts 11/1/2021 USD 88,408 65 0.06 Forward Foreign Currency Contracts 11/1/2021 GBP (68,112) (68) (0.06) Forward Foreign Currency Contracts 11/1/2021 USD 44,334 32 0.03 Forward Foreign Currency Contracts 11/1/2021 GBP (33,415) (33) (0.03) Forward Foreign Currency Contracts 11/1/2021 USD 177,860 130 0.12
92 04 Global Fixed Interest Class_ASC311219 09-Apr-21 10:57 AM Page 93
Aberdeen Standard Capital Offshore Strategy Fund Limited Global Fixed Interest Class
Portfolio Statement (cont.)
Investments Holding Market Value Total Net Assets £000’s % USD Forward Foreign Currency Contracts (cont.)
Forward Foreign Currency Contracts 11/1/2021 GBP (133,030) (133) (0.12) Forward Foreign Currency Contracts 11/1/2021 USD 237,510 174 0.16 Forward Foreign Currency Contracts 11/1/2021 GBP (177,558) (178) (0.17) Forward Foreign Currency Contracts 11/1/2021 USD 91,500 67 0.06 Forward Foreign Currency Contracts 11/1/2021 GBP (68,402) (68) (0.06) Forward Foreign Currency Contracts 11/1/2021 USD 113,002 83 0.08 Forward Foreign Currency Contracts 11/1/2021 GBP (83,855) (84) (0.08) Forward Foreign Currency Contracts 11/1/2021 USD 64,450 47 0.04 Forward Foreign Currency Contracts 11/1/2021 GBP (48,225) (48) (0.04) Forward Foreign Currency Contracts 11/1/2021 USD 75,699 55 0.05 Forward Foreign Currency Contracts 11/1/2021 GBP (56,213) (56) (0.05) Forward Foreign Currency Contracts 11/1/2021 USD 56,567 41 0.04 Forward Foreign Currency Contracts 11/1/2021 GBP (42,202) (42) (0.04) Forward Foreign Currency Contracts 11/1/2021 USD 21,788 16 0.01 Forward Foreign Currency Contracts 11/1/2021 GBP (16,362) (16) (0.01) Forward Foreign Currency Contracts 11/1/2021 USD 46,955 34 0.03 Forward Foreign Currency Contracts 11/1/2021 GBP (35,262) (35) (0.03) Forward Foreign Currency Contracts 11/1/2021 USD 73,430 54 0.05 Forward Foreign Currency Contracts 11/1/2021 GBP (54,202) (54) (0.05) Forward Foreign Currency Contracts 11/1/2021 USD 45,765 33 0.03 Forward Foreign Currency Contracts 11/1/2021 GBP (34,423) (34) (0.03) Forward Foreign Currency Contracts 19/1/2021 USD (32,315,561) (23,638) (22.05) Forward Foreign Currency Contracts 19/1/2021 GBP 24,011,993 24,012 22.39 Forward Foreign Currency Contracts 19/1/2021 USD (105,000) (77) (0.07) Forward Foreign Currency Contracts 19/1/2021 GBP 78,850 79 0.07 Forward Foreign Currency Contracts 19/1/2021 USD (80,972) (59) (0.06) Forward Foreign Currency Contracts 19/1/2021 GBP 59,946 60 0.06 Forward Foreign Currency Contracts 19/1/2021 USD (243,243) (178) (0.17) Forward Foreign Currency Contracts 19/1/2021 GBP 179,540 180 0.17 Forward Foreign Currency Contracts 19/1/2021 USD (238,688) (175) (0.16) Forward Foreign Currency Contracts 19/1/2021 GBP 175,665 176 0.16 Forward Foreign Currency Contracts 19/1/2021 USD 121,318 89 0.08 Forward Foreign Currency Contracts 19/1/2021 GBP (90,085) (90) (0.08) Forward Foreign Currency Contracts 19/1/2021 USD 15,188 11 0.01 Forward Foreign Currency Contracts 19/1/2021 GBP (11,485) (11) (0.01) Forward Foreign Currency Contracts 19/1/2021 USD 262,136 192 0.18 Forward Foreign Currency Contracts 19/1/2021 GBP (195,558) (196) (0.18) Forward Foreign Currency Contracts 19/1/2021 USD 20,636 15 0.01 Forward Foreign Currency Contracts 19/1/2021 GBP (15,497) (15) (0.01) Forward Foreign Currency Contracts 19/1/2021 USD 6,000 4 0.00 Forward Foreign Currency Contracts 19/1/2021 GBP (4,442) (4) 0.00
93 04 Global Fixed Interest Class_ASC311219 09-Apr-21 10:57 AM Page 94
Aberdeen Standard Capital Offshore Strategy Fund Limited Global Fixed Interest Class
Portfolio Statement (cont.)
Investments Holding Market Value Total Net Assets £000’s % USD Forward Foreign Currency Contracts (cont.)
Forward Foreign Currency Contracts 19/1/2021 USD 110,942 81 0.08 Forward Foreign Currency Contracts 19/1/2021 GBP (82,133) (82) (0.08) Forward Foreign Currency Contracts 19/1/2021 USD 353,071 258 0.24 Forward Foreign Currency Contracts 19/1/2021 GBP (262,589) (263) (0.25) Forward Foreign Currency Contracts 3/2/2021 USD (44,424,641) (32,491) (30.30) Forward Foreign Currency Contracts 3/2/2021 GBP 33,655,508 33,656 31.39 Forward Foreign Currency Contracts 3/2/2021 USD (201,397) (147) (0.14) Forward Foreign Currency Contracts 3/2/2021 GBP 152,561 153 0.14 Forward Foreign Currency Contracts 3/2/2021 USD (68,884) (50) (0.05) Forward Foreign Currency Contracts 3/2/2021 GBP 52,268 52 0.05 Forward Foreign Currency Contracts 3/2/2021 USD (200,000) (146) (0.14) Forward Foreign Currency Contracts 3/2/2021 GBP 149,574 150 0.14 Forward Foreign Currency Contracts 3/2/2021 USD (888,994) (650) (0.61) Forward Foreign Currency Contracts 3/2/2021 GBP 660,279 660 0.62 Forward Foreign Currency Contracts 3/2/2021 USD (195,972) (143) (0.13) Forward Foreign Currency Contracts 3/2/2021 GBP 147,050 147 0.14 Forward Foreign Currency Contracts 3/2/2021 USD (169,235) (124) (0.12) Forward Foreign Currency Contracts 3/2/2021 GBP 124,473 125 0.12 Forward Foreign Currency Contracts 3/2/2021 USD 930,216 680 0.63 Forward Foreign Currency Contracts 3/2/2021 EUR (785,863) (704) (0.66) Forward Foreign Currency Contracts 3/2/2021 USD 429,434 314 0.29 Forward Foreign Currency Contracts 3/2/2021 GBP (321,231) (321) (0.30) Forward Foreign Currency Contracts 3/2/2021 USD 639,946 468 0.44 Forward Foreign Currency Contracts 3/2/2021 GBP (475,161) (475) (0.44) Forward Foreign Currency Contracts 3/2/2021 USD 7,048 5 0.00 Forward Foreign Currency Contracts 3/2/2021 GBP(5,258) (5) 0.00 Forward Foreign Currency Contracts 3/2/2021 USD 19,875 15 0.01 Forward Foreign Currency Contracts 3/2/2021 GBP (14,925) (15) (0.01) Forward Foreign Currency Contracts 3/2/2021 USD 439,211 321 0.30 Forward Foreign Currency Contracts 3/2/2021 GBP (329,805) (330) (0.31) Forward Foreign Currency Contracts 3/2/2021 USD 460,016 336 0.31 Forward Foreign Currency Contracts 3/2/2021 GBP (340,534) (341) (0.32) Forward Foreign Currency Contracts 3/2/2021 USD 47,983 35 0.03 Forward Foreign Currency Contracts 3/2/2021 GBP (36,087) (36) (0.03)
94 04 Global Fixed Interest Class_ASC311219 09-Apr-21 10:57 AM Page 95
Aberdeen Standard Capital Offshore Strategy Fund Limited Global Fixed Interest Class
Portfolio Statement (cont.)
Investments Holding Market Value Total Net Assets £000’s % Futures- 0.02% (-0.04%)
Euro-Bobl March 2021 Futures (2) 0 0.00 Euro-Bund March 2021 Futures 430.00 Euro-Buxl 30 Year Bond March 2021 Futures (2) (5) 0.00 US 2 Year Notes March 2021 Futures 26 4 0.00 US 5 Year Notes March 2021 Futures 300.00 US 10 Year Notes March 2021 Futures 10 1 0.00 US 10 Year Ultra March 2021 Futures (7) (3) 0.00 US Long Bond March 2021 Futures 14 (13) (0.01) US Ultra Bond March 2021 Futures 5 (6) (0.01)
Portfolio of investments 104,652 97.60
Net current assets 2,570 2.40
Total net assets 107,222 100.00
*In default.
Total unapproved and unquoted securities 0.00%.
Comparative figures in brackets refer to 31 December 2019.
Unless otherwise indicated, the holdings in the Portfolio Statement represent the ordinary shares, ordinary stock units, common shares or debt securities of the relevant companies or issuers, which are listed on an eligible securities market.
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Financial Statements for the year ended 31 December 2020
Statement of Total Return
31 December 2020 31 December 2019 Notes £000’s £000’s £000’s £000’s Income Net capital gains Net capital gains on investments 1 2,185 6,867 Other gains/(losses) 1 282 (456) 2,467 6,411 Revenue 2 4,339 3,866 Expenses 3 (79) (80) Interest payable and similar charges 5 (7) (6) Net revenue before taxation 4,253 3,780 Taxation 4 (16) (6) Net revenue after taxation 4,237 3,774 Total return before distributions 6,704 10,185 Distributions 6 (4,316) (3,854) Net increase in Shareholders’ funds from Investment activities 2,388 6,331
Statement of Movement in Shareholders’ Funds
31 December 2020 31 December 2019 £000’s £000’s £000’s £000’s Opening net assets attributable to Shareholders 99,346 80,338 Amounts receivable on creation of shares 13,884 20,296 Amounts payable on cancellation of shares (8,396) (7,619) 5,488 12,677 Net increase in Shareholders’ funds from investment activities (see above) 2,388 6,331 Closing net assets attributable to Shareholders 107,222 99,346
All results above are derived from continuing activities for both the current and prior years.
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Financial Statements (cont.) as at 31 December 2020
Statement of Financial Position
31 December 2020 31 December 2019 Notes £000’s £000’s £000’s £000’s Assets Fixed assets Investment assets at fair value through profit or loss 104,788 86,225 Current assets Debtors 8 1,793 1,561 Cash and bank balances 9 4,472 13,460 Total current assets 6,265 15,021 Total assets 111,053 101,246 Liabilities Investment liabilities at fair value through profit or loss (136) (153) Creditors Amounts due to futures clearing houses and brokers (6) (5) Distribution payable 10 (1,139) (948) Other creditors 10 (2,550) (794) Total current liabilities (3,695) (1,747) Total liabilities (3,831) (1,900) Net assets attributable to Shareholders 107,222 99,346
All liabilities are current.
The notes on pages 21 to 30 and pages 98 to 105 form part of the Financial Statements.
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Notes to the Financial Statements for the year ended 31 December 2020
1 Net capital gains The net capital gains on investments during the year comprise: 31 December 2020 31 December 2019 £000’s £000’s Non-derivative securities* 748 3,948 Derivative securities* 351 293 Forward currency contracts* 1,110 2,647 Other losses – currency gains/(losses)* 282 (456) Custodial transaction fees (24) (21) Net capital gains 2,467 6,411
*Net gains (excluding custodial transaction fees) listed above of £2,491,172 comprise net realised gains of £1,589,251 and net unrealised gains of £901,921 (2019: £6,431,935 comprise net realised gains of £2,883,855 and net unrealised gains of £3,548,080). £441,536 of the net realised gains in the current year had been shown as net unrealised losses in previous years (2019: £(668,065) net realised losses). 2 Revenue 31 December 2020 31 December 2019 £000’s £000’s Bank interest 15 27 Collateral interest 1 5 Derivative Income 46 10 Interest on debt securities 4,264 3,781 Money market deposit 13 43 Total revenue 4,339 3,866
3 Expenses
31 December 2020 31 December 2019 £000’s £000’s Payable to the Manager or Associate of the Manager: Manager’s periodic charge 13 15 13 15 Other expenses: Audit fees 10 13 Custodian fees 25 22 Directors’ fees 10 9 Other expenses 21 21 66 65 Total expenses 79 80
4 Taxation 31 December 2020 31 December 2019 £000’s £000’s Withholding tax on interest debt securities 16 6 Total taxation 16 6
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Notes to the Financial Statements (cont.)
5 Interest payable and similar charges 31 December 2020 31 December 2019 £000’s £000’s Interest payable 76 Total interest payable and similar charges 76
6 Distributions The distributions take account of equalisation amounts added on the creation of shares and equalisation amounts deducted on the cancellation of shares. They comprise: 31 December 2020 31 December 2019 £000’s £000’s Interim distribution 31 March 1,121 937 Interim distribution 30 June 1,035 984 Interim distribution 30 September 1,034 1,071 Final distribution 31 December 1,139 948 4,329 3,940 Amounts added on creation of shares (64) (117) Amounts deducted on cancellation of shares 51 31 Gross distributions for the year 4,316 3,854
Details of the distribution per share are set out on the statements on pages 106 to 107. 7 Net movement between revenue after taxation and distributions 31 December 2020 31 December 2019 £000’s £000’s Net revenue after taxation 4,237 3,774 Expenses paid from capital 79 80 Gross distributions for the year 4,316 3,854
8 Debtors 31 December 2020 31 December 2019 £000’s £000’s Accrued revenue 1,314 1,099 Amounts receivable from counterparties in respect of collateral on derivatives 424 278 Amounts receivable on creation of shares 15 17 Prepaid expenses 11 Sales awaiting settlement 39 166 Total debtors 1,793 1,561
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Notes to the Financial Statements (cont.)
9 Cash and bank balances
31 December 2020 31 December 2019 £000’s £000’s Amount held at futures clearing houses and brokers 124 130 Cash held at bank 1,663 3,058 Term deposits 2,685 10,272 Total cash and bank balances 4,472 13,460
10 Creditors
31 December 2020 31 December 2019 £000’s £000’s a) Distribution payable Gross distribution payable 1,139 948 Total distribution payable 1,139 948
b) Other creditors Accrued expenses 19 25 Amount payable for cancellation of shares 309 — Amounts payable to counterparties in respect of collateral on derivatives 1,918 720 Purchases awaiting settlement 304 49 Total other creditors 2,550 794
11 Related party transactions Manager’s periodic charge and Registrar’s fees payable to Aberdeen Standard Capital (CI) Limited are shown in Note 3. The aggregate monies received through creation and paid through cancellation of shares are disclosed in the Statement of Movement in Shareholders’ Funds and Note 6. Any amounts due to or from the Manager at the year end are disclosed in Notes 8 and 10. The total balance due to the Manager in respect of Manager’s periodic charge and Registrar’s fees at 31 December 2020 is £1,092 (2019: £1,405).
Directors’ fees payable to the Board of Directors are shown in Note 3.
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Notes to the Financial Statements (cont.)
12 Financial Instruments a) Interest rate risk The table that follows details the interest rate risk profile of the Global Fixed Interest Class assets at 31 December 2020.
Floating Rate Fixed Rate Non-Interest Bearing Investment Investments Investments Total £000’s £000’s £000’s £000’s Investment assets 1,112 101,108 2,568 104,788 Investment liabilities ——(136) (136)
The table that follows details the interest rate risk profile of the Global Fixed Interest Class assets at 31 December 2019.
Floating Rate Fixed Rate Non-Interest Bearing Investment Investments Investments Total £000’s £000’s £000’s £000’s Investment assets 1,286 83,380 1,559 86,225 Investment liabilities ——(153) (153)
b) Foreign currency risk The table that follows details the foreign currency risk profile of the Global Fixed Interest Class assets at the Statement of Financial Position date.
31 December 2020 31 December 2020 31 December 2020 31 December 2019 Investments Net Current Assets Total Total £000’s £000’s £000’s £000’s Australian Dollar (2) 2—(1) Canadian Dollar (7) 81— Euro (403) 427 24 278 US Dollar (94) 1,858 1,764 2,064 Total (506) 2,295 1,789 2,341
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Notes to the Financial Statements (cont.)
12 Financial Instruments (cont.) c) Credit risk Counterparty Details of OTC Financial Derivative Transactions The counterparty exposure is shown below:
31 December 2020 31 December 2020 31 December 2019 31 December 2019 Forwards Total Exposure Forwards Total Exposure Broker £000’s £000’s £000’s £000’s Barclays 478 478 66 Calyon Securities 731 731 499 499 Citigroup 1,136 1,136 134 134 Deutsche Bank 42 42 837 837 Merrill Lynch International 64 64 (31) (31) 2,451 2,451 1,445 1,445
Counterparty exposure has not been disclosed for exchange traded derivatives as the exchange requirements in respect of collateral mean that, in the opinion of the Manager, the counterparty risk is mitigated. Credit quality The credit quality of the Fund’s investments in debt securities is shown below:
31 December 2020 31 December 2019 Credit quality % of Net Assets % of Net Assets Investment grade 41.65 42.85 Non-investment grade 51.47 41.04 Not rated 2.22 1.33 Total bonds 95.34 85.22
d) Valuation of financial investments The following table analyses within the fair value hierarchy the assets and liabilities (by class of financial instrument) measured at fair value.
Level 1 Level 2 Level 3 Total £000’s £000’s £000’s £000’s 31 December 2020 Bonds — 102,220 — 102,220 Derivatives (19) 2,451 — 2,432 (19) 104,671 — 104,652 31 December 2019 Bonds — 84,666 — 84,666 Derivatives (39) 1,445 — 1,406 (39) 86,111 — 86,072
The different levels of the fair value hierarchy are defined on page 29
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Notes to the Financial Statements (cont.)
12 Financial Instruments (cont.) e) Sensitivity analysis Please note that the absolute Value at Risk (“VaR”) approach has been used for risk measurement and calculation of global exposure for this Fund.
VaR is a measure of the maximum potential loss to the Fund due to market risk. More particularly, VaR measures the maximum potential loss at a given confidence level (probability) over a specific time period under normal market conditions.
On the above basis the VaR has been as follows:
For the year 1 January 2020 to 31 December 2020: VaR % Highest 5.44 Average 4.33 Lowest 1.72
This means that, at its highest point during the year, there was a 1% chance of the portfolio value falling (or rising) more than 5.44% in a one month period. This calculation is generally determined by the use of an industry recognised medium term risk model, typically based on 3-5 year history. This method assumes normal market conditions and that the portfolio remains unchanged.
For the year 1 January 2019 to 31 December 2019: VaR % Highest 1.87 Average 1.78 Lowest 1.72
Leverage is calculated as the sum of the notionals of the derivatives used. The level of leverage employed during the relevant year was 100%. 13 Portfolio transaction costs For the year 1 January 2020 to 31 December 2020
Value Commissions Taxes Purchases £000’s £000’s % % % Debt Instruments 83,320 —— —— Total purchases 83,320 —— Total purchases including transaction costs 83,320
Sales Debt Instruments 66,409 —— —— Total sales 66,409 —— Total sales net of transaction costs 66,409 Derivative transaction costs 1— Total transaction costs 1— Total transaction costs as a % of average net assets 0.00% 0.00%
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Notes to the Financial Statements (cont.)
13 Portfolio transaction costs For the year 1 January 2019 to 31 December 2019
Value Commissions Taxes Purchases £000’s £000’s % % % Debt Instruments 63,551 —— —— Total purchases 63,551 —— Total purchases including transaction costs 63,551
Sales Debt Instruments 59,408 —— —— Total sales 59,408 —— Total sales net of transaction costs 59,408 Derivative transaction costs 1— Total transaction costs 1— Total transaction costs as a % of average net assets 0.00% 0.00%
The above analysis covers any direct transaction costs suffered by the Fund during the year. However it is important to understand the nature of other transaction costs associated with different investment asset classes and instruments types.
Separately identifiable direct transaction costs (commissions & taxes etc.) are attributable to the Fund's purchase and sale of equity shares. Additionally for equity shares there is a dealing spread cost (the difference between the buying and selling prices) which will be suffered on purchase and sale transactions.
For the Fund's investment transactions in debt and money market instruments any applicable transaction charges form part of the dealing spread for these instruments. Transactions in money market instruments to manage the Fund's daily liquidity position are excluded from the analysis.
For the Fund's investment in collective investment scheme holdings there will potentially be dealing spread costs applicable to purchases and sales. However additionally there are indirect transaction costs suffered in those underlying funds, throughout the holding period for the instruments, which are not separately identifiable and do not form part of the analysis above.
Dealing spread costs suffered by the Fund vary considerably for the different asset/instrument types depending on a number of factors including transaction value and market sentiment.
At the Statement of Financial Position date the average portfolio dealing spread (difference between bid and offer prices of all investments expressed as a percentage of the offer price value) was 0.61% (2019: 0.44%).
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Notes to the Financial Statements (cont.)
14 Share movement For the year 1 January 2020 to 31 December 2020
Retail Shares Z Shares Opening shares 1,647,524 200,073,768 Shares issued 2,012 29,094,029 Shares redeemed (928,687) (15,756,832) Shares converted 251,785 (500,240) Closing shares 972,634 212,910,725
15 Post Statement of Financial Position Events Since the year end, markets and operations have continued to be disrupted by the effects of the Covid-19 pandemic. Since the year end the NAV per share has decreased by 3.67% (to 31 March 2021). Contingency plans at the Manager and key service suppliers have proven effective in mitigating the effects on management of the portfolio and on all supporting operations.
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Distribution Statements
Final Distribution For the three months ended 31 December 2020
Group 1: Shares purchased prior to 1 October 2020 Group 2: Shares purchased 1 October 2020 to 31 December 2020
(In pence per share) Net Revenue Equalisation* Amount Payable Retail Shares Group 1 1.0470 — 1.0470 Group 2 0.3560 0.6910 1.0470 Z Shares Group 1 0.5301 — 0.5301 Group 2 0.3123 0.2178 0.5301
The final distribution for the period ended 31 December 2019 was 0.9327 pence per Retail share and 0.4664 pence per Z share. Third Quarter Distribution For the three months ended 30 September 2020
Group 1: Shares purchased prior to 1 July 2020 Group 2: Shares purchased 1 July 2020 to 30 September 2020
(In pence per share) Net Revenue Equalisation* Amount Paid Retail Shares Group 1 0.9471 — 0.9471 Group 2 0.3785 0.5686 0.9471 Z Shares Group 1 0.4772 — 0.4772 Group 2 0.3011 0.1761 0.4772
The interim distribution for the period ended 30 September 2019 was 1.0988 pence per Retail share and 0.5482 per Z share. Second Quarter Distribution For the three months ended 30 June 2020
Group 1: Shares purchased prior to 1 April 2020 Group 2: Shares purchased 1 April 2020 to 30 June 2020
(In pence per share) Net Revenue Equalisation* Amount Paid Retail Shares Group 1 0.9727 — 0.9727 Group 2 0.3437 0.6290 0.9727 Z Shares Group 1 0.4888 — 0.4888 Group 2 0.2430 0.2458 0.4888
The interim distribution for the period ended 30 June 2019 was 1.1000 pence per Retail share and 0.5472 per Z share.
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Distribution Statements (cont.)
First Quarter Distribution For the three months ended 31 March 2020
Group 1: Shares purchased prior to 1 January 2020 Group 2: Shares purchased 1 January 2020 to 31 March 2020
(In pence per share) Net Revenue Equalisation* Amount Paid Retail Shares Group 1 1.0744 — 1.0744 Group 2 0.4294 0.6450 1.0744 Z Shares Group 1 0.5386 — 0.5386 Group 2 0.2972 0.2414 0.5386
The interim distribution for the period ended 31 March 2019 was 1.0601 pence per Retail share and 0.5261 per Z share.
*Equalisation applies to shares purchased during the distribution period (Group 2 shares). It is the average amount of revenue included in the purchase price of all Group 2 shares and is refunded to holders of these shares as a return of capital.
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Fund Report
Environment As active managers, we took steps during the year to increase Covid-19 was the dominant factor in 2020. It negatively exposure to stocks that should benefit from the recovery but are affected financial markets during the first quarter but markets also underpinned by structural growth. Within industrials, the have broadly recovered since April. Positive vaccine news, a train manufacturer Alstom and electrical component contentious US presidential election and nail-biting Brexit manufacturer Schneider Electric performed strongly. The finale headlined the final quarter of the year, adding packaging company DS Smith benefited from a recovery in momentum to the equity market rally and pushing the US industry and more stable pricing. CRH, the building materials stock market to an all-time high by the year-end. company, and Ferguson, the plumbing and heating products distributor, rose on a recovery in building and construction, as Globally, stock markets rose over the 12-month period but well as being beneficiaries of fiscal stimulus. with considerable divergence by country. While US and Chinese stocks performed well, markets in many other The Fund benefited from strong stock selection in the financials, countries recorded sharp falls. Shares in the UK and Latin healthcare, utilities and consumer services sectors. Within America fared particularly badly. financials, the Fund benefited from not holding any UK retail Interest-rate cuts were prevalent over the period. The US banks during the first half of the year. It also benefited from an Federal Reserve reduced the main rate twice in March, with the overweight position in the healthcare sector, which offers final cut taking the main US rate to near zero. The ‘lower for resilience in terms of earnings visibility and outlook. In utilities, longer’ rhetoric from central banks around the world remained diversification into renewable energy benefited the Fund’s supportive of risk assets and held bond yields in check. performance. The wind farm operator Ørsted was a top contributor to active return. Positive stock selection of BBGI, The second wave of Covid-19 strained capacity of health Renewables Infrastructure, Bluefield Solar Income Fund and services globally and new variants added further uncertainty. Greencoat Renewables also helped performance. However, a burgeoning vaccination programme and established monetary and fiscal support provided a far more Putting more capital to work in stronger areas of the market, certain backdrop this time around. Both the US and the EU such as technology, paid off handsomely. Amazon’s continued announced expanded stimulus measures in December. The strength reflected mounting evidence that the sharp rise in e- Bank of England boosted its bond-buying scheme and the UK commerce penetration caused by Covid-19 will persist. government announced the extension of its furlough scheme Taiwanese chipmaker Taiwan Semiconductor Manufacturing till the end of April 2021. Many areas of the economy have Company (TSMC) also did well as it cemented its market leading adapted to this constrained environment. Globally, position in semiconductor production technology. manufacturing continues to show more resilience than many parts of the services sector. The main detractor from relative performance during the first half was an underweight allocation to gilts – the only asset class Performance in our investable universe that went up in value during the six- While 2020 has been an unpredictable year, we are pleased to month period. That had turned on its head by the year-end; the report that our quality, sustainable growth approach led to the risk-on environment meant gilts were the weakest asset class in Fund outperforming not only our internal benchmark but also our investable universe and the Fund’s relatively low allocation the peer group, as measured by Asset Risk Consultants (ARC), to gilts became a positive contributor. during 2020. The Fund returned 8.2% versus the benchmark return of 0.3% and was ahead of the ARC Steady Growth peer Activity group estimate of 4.9%. Sharp falls in the market during the first half of the year gave us the opportunity to initiate positions in certain stocks on our Equity stock selection drove the Fund’s performance. It remains wish list. These included West Pharmaceuticals Services (WPS), focused on investments that are underpinned by structural a high-quality, mid-cap, US company that works with global growth trends, high-quality balance sheets and management, pharmaceutical firms to provide containers for the delivery of and good visibility on how they will achieve growth. The liquid-form drugs. WPS benefits from high barriers to entry, resilience of this approach meant that the Fund weathered the low product costs and its contracts mean that revenues are market falls and start of the market recovery in the first three recurring and locked in for several years. It is working closely quarters of the year relatively well. The Fund also participated in with pharmaceutical companies on Covid-19 vaccinations and the fourth quarter equity market rally; it rose in value, albeit to a treatments. We also took a new position in Alstom, the French lesser degree than the broader market. As vaccine approvals industrial company that has transformed itself into one of the became imminent in November, areas of the market most leading providers of rail equipment. sensitive to a recovery in the economic cycle led the market. Our approach is designed to lock in growth that is less dependent on the economic cycle and more sustainable over the long term.
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Fund Report (cont.)
Activity (cont.) Outlook As more and more companies cut or cancelled dividends, we The global economic outlook is dominated by two conflicting analysed forecast dividend levels and sought resilient sources of forces: an intense second wave of Covid-19 in Europe and income that are underpinned by structural growth. During the North America that is already weighing on recoveries, and first half, we initiated a position in Ashmore, an asset manager recent news of highly effective vaccines, which raises the focused on emerging markets (EM), taking advantage of a likelihood of an eventual return to ‘normal’ life. The prospect setback in its shares. The company is well positioned to benefit of a number of vaccines being rolled out offers an eventual from both the structural and cyclical growth in EM, as investors ‘escape hatch’ out of the pandemic and its economics effects. search for higher yields and faster growth. Within healthcare, However, hurdles lie ahead. A multi-year, sustained effort will we switched Eli Lilly into AbbVie, which offers a resilient 5.5% be required to achieve global inoculation, which will be subject dividend. Strong cash-flow generation will help reduce its debt to manufacturing, distribution and compliance challenges. We and grow its dividend. Finally, we added a position in the can’t help but temper some of the recent vaccine optimism. logistics real estate investment trust Tritax Big Box. We believe the current retightening of restrictions in the UK, US and Europe has further to run, and meaningful loosening In the third quarter, we increased exposure to consumer won’t get underway until well into the first quarter of 2021. staples given uncertainty around economic recovery. We We, therefore, expect economic activity to flat-line through the added Procter & Gamble, which provides resilience and has an winter. But from mid-2021 onwards, these economies should enviable track record in returning cash to shareholders having benefit strongly from vaccine rollout, given their large pre- paid a dividend in each of the last 130 years. Its return on orders and the size of the service sector in economic output. invested capital should remain fairly stable at around 10%. We also increased exposure to mining stocks Rio Tinto and BHP. In Trade barriers between the US and China are unlikely to the near term, both offer exposure to the positive impact of ratchet rapidly lower, but foreign policy will at least no longer increased fiscal spending as well as significant cash flow be done ‘via tweet’, with a less volatile and more multilateral generation that underpins some of the most attractive approach pursued instead. This should be positive for animal dividends available. spirits across the broader emerging markets. We think China is the large economy emerging from the pandemic in the Cognisant of the considerable rally in technology, renewable strongest shape. Successful containment of the virus and a energy and utility stocks, we took profits in a number of these stimulative policy stance mean its economy has already holdings during the second half. Given the arrival of vaccines surpassed pre-pandemic levels. Domestic vaccine efforts are and a clearer path to economic recovery, we increased also bearing fruit. That said, the focus of policy in China will exposure to economically sensitive companies that are also progressively move away from fighting Covid-19 towards beneficiaries of structural growth. In the third quarter, we managing financial risks, de-escalating tensions with the US added Schneider Electric. It is supported by two long-term and achieving its long-term growth and emissions targets. structural trends, the first being energy efficiency, electrification and digitalisation, and the second being We continue to concentrate on companies underpinned by industrial automation. In the fourth quarter, we added long-term structural growth. We seek to identify businesses Generac, a leading designer and manufacturer of power that will benefit from shifting trends, while avoiding those generation equipment and power products. where change will be detrimental. Experience has taught us that companies that have strong balance sheets and can Sales during the period focused on stocks in which we had less create value by generating cash flow in excess of their conviction or felt looked vulnerable in the post-Covid-19 world. operational requirements tend to generate stronger, more These included Treasury Wine Estates and Anheuser Busch sustainable returns. They are usually better positioned to InBev Worldwide, on concerns over the long-term trend of reinvest in their businesses and distribute earnings to deteriorating alcohol sales. We also reduced exposure to some shareholders. These types of companies merit long-term of our more consumer-facing holdings such as Estée Lauder. positions in portfolios regardless of shorter-term sentiment. We also sold HSBC after its dividend was cancelled, thereby invalidating its remaining investment case, and continued to sell down our position in insurers.
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Statistics
Price and Revenue Record by Share Class (Calendar Year)
Retail Shares Highest Price (p) Lowest Price (p) Net Revenue per share* (p)
2016 55.30 45.65 1.7320
2017 57.68 53.84 1.8822
2018 59.50 53.10 1.7956
2019 62.10 53.20 1.8149
2020 65.38 50.00 1.5187
Z Shares Highest Price (p) Lowest Price (p) Net Revenue per share* (p)
2016 55.89 45.87 1.7894
2017 58.95 54.58 1.9149
2018 61.25 54.88 1.8457
2019 64.83 54.99 1.8840
2020 68.95 52.31 1.5926
Net Asset Value History by Share Class
Retail Shares as at Net Asset Value (£) Pence per share Shares in issue
31 December 2018 247,574 53.15 465,782
31 December 2019 175,992 60.94 288,781
31 December 2020 247,420 64.17 385,587
Z Shares as at Net Asset Value (£) Pence per share Shares in issue
31 December 2018 74,193,770 54.94 135,046,957
31 December 2019 91,112,164 63.63 143,200,860
31 December 2020 101,238,290 67.67 149,596,320
*Distributions are shown in the year declared rather than paid.
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Statistics (cont.)
Top Ten Purchases and Sales The table below shows the top ten purchases and sales (excluding any derivative transactions) for the year:
Purchases £000’s Sales £000’s AbbVie 1,769 Eli Lilly 1,596 BHP 1,394 HSBC (UK Regd.) 1,595 Alstom 1,055 Microsoft 1,077 Generac 982 Taiwan Semiconductor Manufacturing ADS 993 Procter & Gamble 966 Anheuser-Busch InBev 826 Schneider Electric 919 Estée Lauder ‘A’ 761 Tritax Big Box Reit 913 Antofagasta 698 Ashmore 849 UK Treasury 3.25% 22/1/2044 666 Ping An Insurance 821 Zurich Insurance 565 West Pharmaceutical Services 786 Ørsted 519
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Portfolio Statement as at 31 December 2020
Investments Holding Market Value Total Net Assets £000’s % UK Government Stocks 2.62% (3.21%)
UK Treasury 1.5% 22/7/2047 GBP 1,908,000 2,259 2.23 UK Treasury 3.25% 22/1/2044 GBP 260,000 400 0.39
Sterling Denominated Corporate Bonds 6.19% (6.02%)
Admiral 5.5% 25/7/2024 GBP 153,000 176 0.17 Anheuser-Busch InBev 2.25% 24/5/2029 GBP 168,000 185 0.18 Arqiva Financing 4.882% 31/12/2032 GBP 160,000 189 0.19 Assura Financing 1.5% 15/9/2030 GBP 100,000 105 0.10 AT&T 4.25% 01/6/2043 GBP 100,000 132 0.13 Aviva 6.125% FRN 14/11/2036 GBP 120,000 148 0.15 Bank of America 7% 31/7/2028 GBP 100,000 146 0.14 Barclays 3.25% 17/1/2033 GBP 180,000 211 0.21 Barclays 10% 21/5/2021 GBP 195,000 201 0.20 BG Energy Capital 5.125% 01/12/2025 GBP 61,000 75 0.07 BMW Finance 0.875% 16/8/2022 GBP 219,000 221 0.22 BP Capital Markets 4.25% Perpetual GBP 234,000 251 0.25 Centrica 7% 19/9/2033 GBP 100,000 164 0.16 Citigroup 2.75% 24/1/2024 GBP 159,000 169 0.17 Close Brothers 2.75% 26/4/2023 GBP 160,000 166 0.16 Coventry Building Society 5.875% 28/9/2022 GBP 128,000 140 0.14 Crédit Agricole 7.5% Perpetual GBP 146,000 175 0.17 Credit Suisse Funding Guernsey 2.75% 08/8/2025 GBP 142,000 155 0.15 Eastern Power Networks 5.75% 08/3/2024 GBP 141,000 164 0.16 Électricité de France 5.875% 18/7/2031 GBP 144,000 208 0.20 Électricité de France 6% Perpetual GBP 100,000 114 0.11 Experian Finance 3.25% 07/4/2032 GBP 121,000 148 0.15 Fidelity National Information Services 2.602% 21/5/2025 GBP 118,000 128 0.13 GlaxoSmithKline Capital 5.25% 19/12/2033 GBP 160,000 242 0.24 HSBC 5.75% 20/12/2027 GBP 135,000 170 0.17 Legal & General 5.375% 27/10/2045 GBP 300,000 352 0.35 Lloyds Bank 7.625% 22/4/2025 GBP 131,000 166 0.16 Nationwide Building Society 3.25% 20/1/2028 GBP 135,000 159 0.16 NGG Finance 5.625% 18/6/2073 GBP 173,000 198 0.20 Ørsted 5.75% 09/4/2040 GBP 120,000 207 0.20 QBE Capital Funding 7.5% 24/5/2041 GBP 100,000 101 0.10 RL Finance Bonds No 3 6.125% 13/11/2028 GBP 100,000 126 0.12 Santander UK 3.625% 14/1/2026 GBP 156,000 175 0.17 Severn Trent Water Utilities 6.25% 07/6/2029 GBP 62,000 89 0.09 Tesco Property Finance 3 5.744% 13/4/2040 GBP 165,761 227 0.22 Vodafone 3% 12/8/2056 GBP 166,000 192 0.19 Yorkshire Building Society 3.375% 13/9/2028 GBP 100,000 109 0.11
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Portfolio Statement (cont.)
Investments Holding Market Value Total Net Assets £000’s % Non-sterling Denominated Corporate Bonds 2.44% (2.82%)
ABN AMRO Bank 2.875% 18/1/2028 EUR 200,000 188 0.19 Activision Blizzard 3.4% 15/9/2026 USD 556,000 463 0.46 Altice France 5.875% 01/2/2027 EUR 281,000 267 0.26 AstraZeneca 4% 17/1/2029 USD 209,000 182 0.18 Charter Communications Operating Capital 3.75% 15/2/2028 USD 226,000 185 0.18 Cigna 3.05% 15/10/2027 USD 227,000 180 0.18 Country Garden 8% 27/1/2024 USD 200,000 158 0.16 EOG Resources 4.375% 15/4/2030 USD 47,000 42 0.04 Matterhorn Telecom 3.125% 15/9/2026 EUR 309,000 274 0.27 Morgan Stanley 4.431% 23/1/2030 USD 205,000 183 0.18 Nortonlifelock 5% 15/4/2025 USD 182,000 136 0.13 Ziggo Secured Finance BV 4.25% 15/1/2027 EUR 230,400 215 0.21
United Kingdom 24.34% (29.44%) Abcam 56,787 879 0.87 Ashmore 231,290 997 0.98 AstraZeneca 25,560 1,872 1.84 BP 479,813 1,223 1.21 Dechra Pharmaceuticals 46,568 1,607 1.58 DS Smith 541,158 2,027 2.00 GlaxoSmithKline 102,256 1,372 1.35 Greencoat UK Wind 635,593 852 0.84 Johnson Matthey 43,760 1,061 1.05 National Grid 157,149 1,359 1.34 Persimmon 49,161 1,360 1.34 Primary Health Properties 683,986 1,042 1.03 Prudential 108,504 1,462 1.44 RELX 75,454 1,352 1.33 Renewables Infrastructure 776,636 988 0.97 Rio Tinto (UK Regd.) 45,765 2,503 2.47 Tritax Big Box Reit 736,306 1,230 1.21 Unilever 34,444 1,513 1.49
Investment Trusts 8.12% (7.90%) 3i Infrastructure 349,834 1,078 1.06 Aberforth Smaller Companies Fund 94,257 1,169 1.15 Apax Global Alpha Fund 400,694 769 0.76 BB Biotech 20,489 1,257 1.24 BBGI 762,022 1,323 1.30 Bluefield Solar Income Fund 665,207 858 0.85 International Public Partnership 582,647 990 0.98 Sequoia Economic Infrastructure Income Fund 724,336 795 0.78
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Portfolio Statement (cont.)
Investments Holding Market Value Total Net Assets £000’s % United States of America 26.92% (24.02%)
AbbVie 25,942 2,031 2.00 Accenture 10,716 2,045 2.02 Alphabet 'A' 1,390 1,780 1.75 Amazon 818 1,949 1.92 American Tower 11,160 1,831 1.80 Estée Lauder ‘A’ 5,904 1,149 1.13 Ferguson 15,142 1,345 1.33 Generac 5,898 981 0.97 MasterCard ‘A’ 5,149 1,342 1.32 Medtronic 13,885 1,189 1.17 Microsoft 14,836 2,412 2.38 NextEra Energy 31,952 1,801 1.77 Procter & Gamble 9,596 976 0.96 Taiwan Semiconductor Manufacturing ADS 33,379 2,662 2.62 Verizon Communications 33,886 1,455 1.43 Visa 6,353 1,016 1.00 West Pharmaceutical Services 6,614 1,370 1.35
Australia 1.99% (0.00%)
BHP 104,761 2,017 1.99
Belgium 0.00% (0.96%)
Bermuda 0.00% (0.98%)
Chile 0.00% (0.96%)
China 0.93% (0.00%)
Ping An Insurance 105,000 940 0.93
Denmark 2.25% (1.68%)
Ørsted 15,222 2,285 2.25
France 3.66% (1.93%)
Alstom 32,282 1,347 1.33 Schneider Electric 9,742 1,032 1.01 Total 42,330 1,337 1.32
Ireland 2.07% (1.51%)
CRH 36,116 1,105 1.09 Greencoat Renewables 955,458 996 0.98
Italy 1.93% (1.73%)
Enel 263,868 1,955 1.93
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Portfolio Statement (cont.)
Investments Holding Market Value Total Net Assets £000’s % Netherlands 5.32% (5.68%)
ASML 5,697 2,027 2.00 KPN 860,530 1,915 1.89 Royal Dutch Shell ‘B’ (UK Regd.) 115,588 1,456 1.43
Switzerland 5.70% (6.94%)
Nestlé (Regd.) 20,362 1,757 1.73 Novartis (Regd.) 15,952 1,104 1.09 Roche Holding 6,215 1,590 1.57 Zurich Insurance 4,323 1,336 1.31
Derivatives 0.05% (0.05%)
EUR Forward Foreign Currency Contracts 0.00% (0.02%)
Forward Currency Contracts 08/02/2021 EUR 33,607 30 0.03 Forward Currency Contracts 08/02/2021 GBP (30,502) (30) (0.03) Forward Currency Contracts 08/02/2021 EUR (1,109,546) (994) (0.98) Forward Currency Contracts 08/02/2021 GBP 991,873 992 0.98
USD Forward Foreign Currency Contracts 0.05% (0.03%)
Forward Currency Contracts 08/02/2021 USD (2,098,199) (1,535) (1.51) Forward Currency Contracts 08/02/2021 GBP 1,583,304 1,584 1.56
Portfolio of investments 95,934 94.53
Net current assets 5,552 5.47
Total net assets 101,486 100.00
Total unapproved and unquoted securities 0.00%.
Comparative figures in brackets refer to 31 December 2019.
Unless otherwise indicated, the holdings in the Portfolio Statement represent the ordinary shares, ordinary stock units, common shares or debt securities of the relevant companies or issuers, which are listed on an eligible securities market.
Portfolio Statement by asset class
Percentage Percentage Market value of total net assets Market value of total net assets 31 December 2020 31 December 2020 31 December 2019 31 December 2019 £000’s % £000’s % Bonds 11,416 11.25 10,994 12.05 Equities 84,471 83.23 76,435 83.73 Derivatives 47 0.05 49 0.05 Portfolio of investments 95,934 94.53 87,478 95.83 Net current assets 5,552 5.47 3,810 4.17 Total net assets 101,486 100.00 91,288 100.00
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Financial Statements for the year ended 31 December 2020
Statement of Total Return
31 December 2020 31 December 2019 Notes £000’s £000’s £000’s £000’s Income Net capital gains Net capital gains on investments 1 5,943 12,171 Other losses 1 (9) (14) 5,934 12,157 Revenue 2 2,599 2,871 Expenses 3 (63) (66) Interest payable and similar charges 5 — (1) Net revenue before taxation 2,536 2,804 Taxation 4 (292) (229) Net revenue after taxation 2,244 2,575 Total return before distributions 8,178 14,732 Distributions 6 (2,307) (2,641) Net increase in Shareholders’ funds from Investment activities 5,871 12,091
Statement of Movement in Shareholders’ Funds
31 December 2020 31 December 2019 £000’s £000’s £000’s £000’s Opening net assets attributable to Shareholders 91,288 74,441 Amounts receivable on creation of shares 11,273 11,305 Amounts payable on cancellation of shares (6,946) (6,549) 4,327 4,756 Net increase in Shareholders’ funds from investment activities (see above) 5,871 12,091 Closing net assets attributable to Shareholders 101,486 91,288
All results above are derived from continuing activities for both the current and prior years.
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Financial Statements (cont.) as at 31 December 2020
Statement of Financial Position
31 December 2020 31 December 2019 Notes £000’s £000’s £000’s £000’s Assets Fixed assets Investment assets at fair value through profit or loss 95,936 87,481 Current assets Debtors 8 262 279 Cash and bank balances 9 5,760 4,046 Total current assets 6,022 4,325 Total assets 101,958 91,806 Liabilities Investment liabilities at fair value through profit or loss (2) (3) Creditors Bank overdrafts — (1) Distribution payable 10 (454) (490) Other creditors 10 (16) (24) Total current liabilities (470) (515) Total liabilities (472) (518) Net assets attributable to Shareholders 101,486 91,288
All liabilities are current.
The notes on pages 21 to 30 and pages 118 to 125 form part of the Financial Statements.
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Notes to the Financial Statements for the year ended 31 December 2020
1 Net capital gains The net capital gains on investments during the year comprise: 31 December 2020 31 December 2019 £000’s £000’s Non-derivative securities* 5,961 12,135 Forward currency contracts* (11) 44 Other losses – currency losses* (9) (14) Custodial transaction fees (7) (8) Net capital gains 5,934 12,157
*Net gains listed above of £5,941,383 comprise net realised gains of £1,344,904 and net unrealised gains of £4,596,479 (2019: net gains of £12,164,098 comprising net realised losses of £(941,300) and net unrealised gains of £13,105,398). £2,188,072 of the net realised gains in the current year had been shown as net unrealised gains in previous periods (2019: £(813,974) net realised losses). 2 Revenue 31 December 2020 31 December 2019 £000’s £000’s Bank interest — 1 Interest on debt securities 334 320 Money market deposit 8 39 Overseas dividends 1,332 1,192 UK dividends 869 1,295 UK REIT dividends 56 24 Total revenue 2,599 2,871
3 Expenses
31 December 2020 31 December 2019 £000’s £000’s Payable to the Manager or Associate of the Manager: Manager’s periodic charge 32 32 Other expenses: Audit fees 9 13 Custodian fees 23 21 Directors’ fees 99 Other expenses 19 21 60 64 Total expenses 63 66
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Notes to the Financial Statements (cont.)
4 Taxation 31 December 2020 31 December 2019 £000’s £000’s Withholding tax on overseas dividends 292 229 Total taxation 292 229
5 Interest payable and similar charges 31 December 2020 31 December 2019 £000’s £000’s Interest payable —1 Total interest payable and similar charges —1
6 Distributions The distributions take account of equalisation amounts added on the creation of shares and equalisation amounts deducted on the cancellation of shares. They comprise:
31 December 2020 31 December 2019 £000’s £000’s Interim distribution 31 March 727 762 Interim distribution 30 June 509 770 Interim distribution 30 September 636 639 Final distribution 31 December 454 490 2,326 2,661 Amounts added on creation of shares (39) (41) Amounts deducted on cancellation of shares 20 21 Gross distributions for the year 2,307 2,641
Details of the distribution per share are set out on the statements on pages 126 to 127.
7 Net movement between revenue after taxation and distributions
31 December 2020 31 December 2019 £000’s £000’s Net revenue after taxation 2,244 2,575 Expenses paid from capital 63 66 Gross distributions for the year 2,307 2,641
8 Debtors 31 December 2020 31 December 2019 £000’s £000’s Accrued revenue 241 234 Amount receivable on creation of shares 20 41 Income tax recoverable —3 Prepaid expenses 11 Total debtors 262 279
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Notes to the Financial Statements (cont.)
9 Cash and bank balances 31 December 2020 31 December 2019 £000’s £000’s Cash held at bank 913 — Term deposits 4,847 4,046 Total cash and bank balances 5,760 4,046
10 Creditors
31 December 2020 31 December 2019 £000’s £000’s a) Distribution payable Gross distribution payable 454 490 Total distribution payable 454 490
b) Other creditors Accrued expenses 16 23 Amounts payable for cancellation of shares —1 Total other creditors 16 24
11 Related party transactions Manager’s periodic charge and Registrar’s fees payable to Aberdeen Standard Capital (CI) Limited are shown in Note 3. The aggregate monies received through creation and paid through cancellation of shares are disclosed in the Statement of Movement in Shareholders’ Funds and Note 6. Any amounts due to or from the Manager at the year end are disclosed in Notes 8 and 10. The total balance due to the Manager in respect of Manager’s periodic charge and Registrar’s fees at 31 December 2020 is £218 (2019: £160).
Directors’ fees payable to the Board of Directors are shown in Note 3.
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Notes to the Financial Statements (cont.)
12 Financial Instruments a) Interest rate risk The table that follows details the interest rate risk profile of the Income Class assets at 31 December 2020.
Floating Rate Fixed Rate Non-Interest Bearing Investment Investments Investments Total £000’s £000’s £000’s £000’s Investment assets 148 11,268 84,520 95,936 Investment liabilities —— (2) (2)
The table that follows details the interest rate risk profile of the Income Class assets at 31 December 2019.
Floating Rate Fixed Rate Non-Interest Bearing Investment Investments Investments Total £000’s £000’s £000’s £000’s Investment assets 145 10,849 76,487 87,481 Investment liabilities —— (3) (3)
b) Foreign currency risk The table that follows details the foreign currency risk profile of the Income Class assets at the Statement of Financial Position date.
31 December 2020 31 December 2020 31 December 2020 31 December 2019 Investments Net Current Assets Total Total £000’s £000’s £000’s £000’s Danish Krone 2,285 — 2,285 1,534 Euro 10,591 18 10,609 7,107 Hong Kong Dollar 941 — 941 — Swiss Franc 7,044 — 7,044 7,392 US Dollar 25,984 40 26,024 20,927 Total 46,845 58 46,903 36,960
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Notes to the Financial Statements (cont.)
12 Financial Instruments (cont.) c) Credit risk Counterparty Details of OTC Financial Derivative Transactions The counterparty exposure is shown below:
31 December 2020 31 December 2020 31 December 2019 31 December 2019 Forwards Total Exposure Forwards Total Exposure Broker £000’s £000’s £000’s £000’s Citigroup —— 52 52 HSBC 49 49 (3) (3) UBS (2) (2) —— 47 47 49 49
Credit quality The credit quality of the Fund’s investments in debt securities is shown below:
31 December 2020 31 December 2019 Credit quality % of Net Assets % of Net Assets Investment grade 9.67 9.94 Non-investment grade 0.98 1.39 Not rated 0.60 0.72 Total bonds 11.25 12.05
d) Valuation of financial investments The following table analyses within the fair value hierarchy the assets and liabilities (by class of financial instrument) measured at fair value.
Level 1 Level 2 Level 3 Total £000’s £000’s £000’s £000’s 31 December 2020 Bonds — 11,416 — 11,416 Equities 84,471 ——84,471 Derivatives — 47 — 47 84,471 11,463 — 95,934 31 December 2019 Bonds — 10,994 — 10,994 Equities 76,435 ——76,435 Derivatives — 49 — 49 76,435 11,043 — 87,478
The different levels of the fair value hierarchy are defined on page 29.
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Notes to the Financial Statements (cont.)
12 Financial Instruments (cont.) e) Sensitivity analysis Please note that the absolute Value at Risk (“VaR”) approach has been used for risk measurement and calculation of global exposure for this Fund.
VaR is a measure of the maximum potential loss to the Fund due to market risk. More particularly, VaR measures the maximum potential loss at a given confidence level (probability) over a specific time period under normal market conditions.
On the above basis the VaR has been as follows:
For the year 1 January 2020 to 31 December 2020: VaR % Highest 8.45 Average 7.50 Lowest 5.51
This m eans that, at its highest point during the year, there was a 1% chance of the portfolio value falling (or rising) more than 8.45% in a one month period. This calculation is generally determined by the use of an industry recognised medium term risk model, typically based on 3-5 year history. This method assumes normal market conditions and that the portfolio remains unchanged.
For the year 1 January 2019 to 31 December 2019: VaR % Highest 6.41 Average 6.07 Lowest 5.68
Leverage is calculated as the sum of the notionals of the derivatives used. The level of leverage employed during the relevant year was 100%. 13 Portfolio transaction costs For the year 1 January 2020 to 31 December 2020
Value Commissions Taxes Purchases £000’s £000’s % % % Equity Instruments 14,117 8 0.06 29 0.21 Debt Instruments 911 —— —— Collective Investment schemes 1,077 1 0.09 — — Total purchases 16,105 9 29 Total purchases including transaction costs 16,143
Sales Equity Instruments 12,381 6 0.05 — — Debt Instruments 1,222 — — — — Total sales 13,603 6 — Total sales including transaction costs 13,597 Total transaction costs 15 29 Total transaction costs as a % of average net assets 0.02% 0.03%
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Notes to the Financial Statements (cont.)
13 Portfolio transaction costs (cont.) For the year 1 January 2019 to 31 December 2019
Value Commissions Taxes Purchases £000’s £000’s % % % Equity Instruments 13,258 7 0.05 19 0.14 Debt Instruments 3,151 —— —— Collective Investment schemes 3,046 3 0.10 7 0.23 Total purchases 19,455 10 26 Total purchases including transaction costs 19,491
Sales Equity Instruments 8,805 5 0.06 — — Debt Instruments 2,346 —— —— Collective Investment schemes 578 1 0.17 — — Total sales 11,729 6 — Total sales including transaction costs 11,723 Total transaction costs 16 26 Total transaction costs as a % of average net assets 0.02% 0.03%
The above analysis covers any direct transaction costs suffered by the Fund during the year. However it is important to understand the nature of other transaction costs associated with different investment asset classes and instruments types.
Separately identifiable direct transaction costs (commissions & taxes etc.) are attributable to the Fund's purchase and sale of equity shares. Additionally for equity shares there is a dealing spread cost (the difference between the buying and selling prices) which will be suffered on purchase and sale transactions.
For the Fund's investment transactions in debt and money market instruments any applicable transaction charges form part of the dealing spread for these instruments. Transactions in money market instruments to manage the Fund's daily liquidity position are excluded from the analysis.
For the Fund's investment in collective investment scheme holdings there will potentially be dealing spread costs applicable to purchases and sales. However additionally there are indirect transaction costs suffered in those underlying funds, throughout the holding period for the instruments, which are not separately identifiable and do not form part of the analysis above.
Dealing spread costs suffered by the Fund vary considerably for the different asset/instrument types depending on a number of factors including transaction value and market sentiment.
At the Statement of Financial Position date the average portfolio dealing spread (difference between bid and offer prices of all investments expressed as a percentage of the offer price value) was 0.21% (2019: 0.15%).
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Notes to the Financial Statements (cont.)
14 Share movement For the year 1 January 2020 to 31 December 2020
Retail Shares Z Shares Opening shares 288,781 143,200,860 Shares issued — 17,672,172 Shares redeemed (1,217,198) (10,024,825) Shares converted 1,314,004 (1,251,887) Closing shares 385,587 149,596,320
15 Post Statement of Financial Position Events Since the year end, markets and operations have continued to be disrupted by the effects of the Covid-19 pandemic. Since the year end the NAV per share has increased by 1.44% (to 31 March 2021). Contingency plans at the Manager and key service suppliers have proven effective in mitigating the effects on management of the portfolio and on all supporting operations.
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Distribution Statements
Final Distribution For the three months ended 31 December 2020
Group 1: Shares purchased prior to 1 October 2020 Group 2: Shares purchased 1 October 2020 to 31 December 2020
(In pence per share) Net Revenue Equalisation* Amount Payable Retail Shares Group 1 0.2875 — 0.2875 Group 2 0.2875 0.0000 0.2875 Z Shares Group 1 0.3027 — 0.3027 Group 2 0.0558 0.2469 0.3027
The final distribution for the period ended 31 December 2019 was 0.3280 pence per Retail share and 0.3418 pence per Z share. Third Quarter Distribution For the three months ended 30 September 2020
Group 1: Shares purchased prior to 1 July 2020 Group 2: Shares purchased 1 July 2020 to 30 September 2020
(In pence per share) Net Revenue Equalisation* Amount Paid Retail Shares Group 1 0.4147 — 0.4147 Group 2 0.4147 0.0000 0.4147 Z Shares Group 1 0.4356 — 0.4356 Group 2 0.2248 0.2108 0.4356
The interim distribution for the period ended 30 September 2019 was 0.4366 pence per Retail share and 0.4540 per Z share. Second Quarter Distribution For the three months ended 30 June 2020
Group 1: Shares purchased prior to 1 April 2020 Group 2: Shares purchased 1 April 2020 to 30 June 2020
(In pence per share) Net Revenue Equalisation* Amount Paid Retail Shares Group 1 0.3354 — 0.3354 Group 2 0.3354 0.0000 0.3354 Z Shares Group 1 0.3514 — 0.3514 Group 2 0.1607 0.1907 0.3514
The interim distribution for the period ended 30 June 2019 was 0.5235 pence per Retail share and 0.5429 per Z share.
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Distribution Statements (cont.)
First Quarter Distribution For the three months ended 31 March 2020
Group 1: Shares purchased prior to 1 January 2020 Group 2: Shares purchased 1 January 2020 to 31 March 2020
(In pence per share) Net Revenue Equalisation* Amount Paid Retail Shares Group 1 0.4811 — 0.4811 Group 2 0.4811 0.0000 0.4811 Z Shares Group 1 0.5029 — 0.5029 Group 2 0.2777 0.2252 0.5029
The interim distribution for the period ended 31 March 2019 was 0.5268 pence per Retail share and 0.5453 per Z share.
*Equalisation applies to shares purchased during the distribution period (Group 2 shares). It is the average amount of revenue included in the purchase price of all Group 2 shares and is refunded to holders of these shares as a return of capital.
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Fund Report
Environment In the final quarter of 2020, we participated in a number of The first quarter of 2020 was dominated by the escalating new issues, including three corporate hybrids (subordinated Covid-19 pandemic, which in March resulted in a sell-off of non-financial bonds) from Abertis Infraestructuras and historic proportions in risk assets, including sterling corporate Iberdrola International (both in Euros) and National Express in bonds. The dramatic widening of spreads reflected markedly Sterling. In the senior space, we took part in deals from worsening expectations for global growth in light of incoming Verizon Communications and a debut Sterling deal from data regarding the effect of the pandemic. Another important Athene Global, a US annuity provider. Our US-based analyst negative factor was the start of an oil price war between Saudi viewed Athene Global favourably. Within financials, we Arabia and Russia, which along with the coronavirus demand purchased a new AT1 subordinated issue from NatWest. In shock, caused oil prices to more than halve in March alone. what was a strong market environment, these deals all Falls accelerated until late March, when the UK government performed well. and Bank of England acted to minimise corporate defaults and Further, towards the end of the period, we started to trim job losses, cutting interest rates and announcing a record exposure to BP subordinated bonds that were issued earlier in spending package. As the economy also began to reopen, the the year, after a strong rally. We were cautious on the medium- second quarter of 2020 saw a very pronounced recovery in term credit profile of BP, but these bonds were issued at very investment-grade credit. attractive levels. We viewed their purchase as a short-term The third quarter was a traditional risk-on period for opportunity. After a strong recovery, we started reducing our investment-grade credit. The coronavirus pandemic, economic exposure to Heathrow Funding. Heathrow Funding bonds were factors and politics continued to dominate corporate bond hit hard around Covid-19 for obvious reasons, but enjoyed markets in the final quarter of the year. While the rollout of strong spread tightening in the fourth quarter. Finally, we coronavirus vaccination programmes towards the end of the reduced exposure to Quadgas Finance, which is a solid quarter was a major positive, this was balanced to some investment but, again in the medium term, has a more extent by the emergence of new viral strains, surging infection uncertain future due to UK commitments on decarbonisation. rates and deaths globally. In response to the resurgence, the Performance UK reimplemented a stringent lockdown in November, which Amid Covid and Brexit concerns 2020 has been an will have some adverse economic impact. On the political unpredictable year and the Fund slightly underperformed a front, narrow avoidance of a ‘no-deal’ Brexit outcome was strong benchmerk. The Fund returned 8% versus the positive for sentiment. benchmark return of 8.6%. Activity During the period, the Fund's security selection was positive, During the third quarter, the Fund took part in a new deal while asset allocation detracted marginally. Exposure to from Assura Financing, a private Landlord of GP surgeries in utilities and financials (banks and insurance) contributed to the UK that enjoys long-term leases with an indirect guarantee performance. Banks continued to recover from significant of income from the UK government. In the Euro market, we underperformance in the first quarter. The main detractor was added a new name to the portfolio through American Towers, an overweight exposure to the collateralised (secured) sector, a BBB-rated telecom infrastructure play. Additionally, we took where Covid-19 had a big impact relative to other sectors. part in the joint venture deal from Liberty Global and Stock selection was particularly strong in off-benchmark Telefonica to finance the deal between Virgin Media and O2 in holdings in high yield, including high yield rated subordinated the UK. We also participated in an AT1 deal from Italian bank financials. Underweight exposure to the highest-rated credits Intesa Sanpaolo, and a Tier 2 deal from Virgin Money to help also added value. refinance an upcoming Tier 2 call in the coming months. Stock selection within insurance subordinated debt added value, Notable purchases outside of the new issue market included with Royal London outperforming. Within banks, notable Danske Bank senior debt, where we believe spreads still offer holdings that outperformed were Danske Bank and Standard value relative to the market. We also added to General Motors' Chartered. In addition, Commerzbank added, with our legacy 5-year bonds, where we believe the name will retain its Tier 1 bonds contributing. Legacy bonds have performed well investment-grade ratings. In addition, we added to Welltower recently, as such bonds are expected to be tendered before they (BBB+ rated), a predominantly US-based real estate investment become ineligible as capital under the Basel banking rules. trust focused on assisted living and retirement homes. Elsewhere, Verizon Communications and EDF were positive We reduced shorter-dated bonds that look fully valued from contributors as demand for longer-dated bonds, particularly the likes of Telefonica, Siemens and British American Tobacco. those under the Bank of England corporate bond-buying Finally, we exited Tritax Big Box, a property name that focusses scheme. on logistics centres.
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Aberdeen Standard Capital Offshore Strategy Fund Limited Sterling Fixed Interest Class
Fund Report (cont.)
Performance continued In terms of negatives, the Fund’s exposure to Intu Metrocentre Finance and a small position in Peel suffered due to lockdowns; retail and office property securitisations saw the most severe underperformance in investment-grade markets. Otherwise, Heathrow Funding and Gatwick Funding were negative contributors again due to the impact of Covid-19 on air travel.
Outlook
Financial repression through monetary policy and quantitative easing continues apace. This means there is a real chance that the UK will apply negative rates at some point this year. Central banks will likely move increasingly towards investment-grade credit as a policy tool to stabilise markets when volatility rises. As a result, investor’s demand for yield is likely to necessitate investment-grade spreads moving structurally lower.
In Sterling credit, we are already seeing this in higher-rated bonds, with spreads moving as tight as they were in the last decade. BBB-rated bonds have further to run to catch up, because of Covid-19 and select names trading on wide spreads. Therefore, we expect more compression, so long as there continues to be light at the end of this long Covid-19 tunnel.
Further, while high yield spreads and AT1s are certainly not cheap in all-in yield terms, both look like they could tighten further if rates markets are kept in check. Despite historically low all-in yields, these areas still offer attractive real yields compared to plain vanilla investment-grade indices.
Brexit and the US election are out the way, despite their controversies. This provides further support for the market in the short term. The hit to growth this year has been extreme, and the evenness or strength of the recovery remains very hard to forecast. However, we believe that, as we move through 2021, growth will recover and head in the right direction.
We can envisage two potential risks, the first being a major set- back on Covid-19, which is very hard for us to analyse, let alone position for. The second risk is that rates markets and inflation expectations continue to rise, eventually destabilising investment-grade markets. Large fiscal stimulus packages from the Democrats could fuel this view.
Outside of these risks, we do expect some bouts of volatility and spread widening on technical pull-backs. This can be through new issue indigestion in Europe and the US, rather than the UK, and some asset allocation decisions from investors. However, it is hard to imagine these pull-backs being long lived and on their own, undoubtedly, would present buying opportunities.
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Aberdeen Standard Capital Offshore Strategy Fund Limited Sterling Fixed Interest Class
Statistics
Price and Revenue Record by Share Class (Calendar Year)
Retail Shares Highest Price (p) Lowest Price (p) Net Revenue per share* (p)
2016 93.39 82.06 3.3726
2017 90.72 86.44 3.1094
2018 88.72 82.80 2.8923
2019 90.95 82.76 2.7537
2020 93.33 79.35 2.6632
Z Shares Highest Price (p) Lowest Price (p) Net Revenue per share* (p)
2016 54.00 47.23 1.9480
2017 52.91 50.22 1.7958
2018 52.06 49.02 1.7080
2019 54.25 49.04 1.6396
2020 56.42 47.59 1.6019
Net Asset Value History by Share Class
Retail Shares as at Net Asset Value (£) Pence per share Shares in issue
31 December 2018 1,099,341 82.50 1,332,493
31 December 2019 748,475 88.17 848,854
31 December 2020 517,462 92.24 561,009
Z Shares as at Net Asset Value (£) Pence per share Shares in issue
31 December 2018 106,534,578 48.88 217,941,490
31 December 2019 111,574,083 52.77 211,434,948
31 December 2020 137,092,743 55.76 245,871,848
*Distributions are shown in the year declared rather than paid.
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Aberdeen Standard Capital Offshore Strategy Fund Limited Sterling Fixed Interest Class
Statistics (cont.)
Top Ten Purchases and Sales The table below shows the top ten purchases and sales (excluding any derivative transactions) for the year:
Purchases £000’s Sales £000’s Deutsche Bank 2.625% 16/12/2024 1,209 UK Treasury 4.5% 07/12/2042 2,011 UK Treasury 6% 07/12/2028 1,114 UK Treasury 6% 07/12/2028 1,452 Barclays 3.75% 22/11/2030 953 Virgin 5% 09/2/2026 1,147 Athene Global 1.75% 24/11/2027 902 Bank of Scotland 4.875% 20/12/2024 1,007 Dresdner Funding Trust PIDI 8.151% 30/6/2031 875 Intesa Sanpaolo 5.25% 01/3/2069 774 Orange 5.625% 23/1/2034 844 Co-Operative Bank 4.75% 11/11/2021 732 Bankia 6.375% 19/12/2166 746 Banco Santander 5.25% 29/12/2069 677 BNP Paribas 3.375% 23/1/2026 742 BAT International Finance 6% 29/6/2022 658 Vmed O2 UK Financing I 4% 31/1/2029 732 Credit Agricole 1.25% 02/10/2024 618 Intesa Sanpaolo 5.25% 01/3/2069 729 Pennon 2.875% Perpetual 570
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Aberdeen Standard Capital Offshore Strategy Fund Limited Sterling Fixed Interest Class
Portfolio Statement as at 31 December 2020
Investments Holding Market Value Total Net Assets £000’s % UK Government Stocks 1.14% (2.66%)
UK Treasury 1.5% 22/7/2047 GBP 428,000 507 0.37 UK Treasury 4.5% 07/12/2042 GBP 600,000 1,068 0.77
Sterling Denominated Corporate Bonds 91.88% (93.50%)
AA Bond 2.75% 31/7/2043 GBP 120,000 117 0.08 AA Bond 6.269% 02/7/2043 GBP 100,000 108 0.08 ABN AMRO Bank 1.375% 16/1/2025 GBP 300,000 311 0.23 ABP Finance 6.25% 14/12/2026 GBP 510,000 622 0.45 Accent Capital 2.625% 18/7/2049 GBP 139,000 175 0.13 America Movil 4.375% 07/8/2041 GBP 300,000 421 0.31 America Movil 5% 27/10/2026 GBP 255,000 314 0.23 Anglian Water Services Financing 2.625% 15/6/2027 GBP 340,000 360 0.26 Anheuser-Busch InBev 2.25% 24/5/2029 GBP 900,000 992 0.72 Anheuser-Busch InBev 9.75% 30/7/2024 GBP 110,000 146 0.11 Annington Funding 2.646% 12/7/2025 GBP 500,000 537 0.39 Annington Funding 3.184% 12/7/2029 GBP 180,000 204 0.15 Annington Funding 3.685% 12/7/2034 GBP 380,000 467 0.34 APT Pipelines 3.5% 22/3/2030 GBP 300,000 353 0.26 Arqiva Financing 4.882% 31/12/2032 GBP 528,000 618 0.45 Arqiva Financing 5.34% 30/12/2037 GBP 110,000 140 0.10 Aspire Defence Finance B 4.674% 31/3/2040 GBP 434,820 598 0.43 Assicurazioni Generali 6.269% Perpetual GBP 300,000 338 0.25 Assura Financing 1.5% 15/9/2030 GBP 192,000 201 0.15 Aster Treasury 4.5% 18/12/2043 GBP 100,000 155 0.11 AT&T 4.25% 01/6/2043 GBP 300,000 397 0.29 AT&T 4.375% 14/9/2029 GBP 200,000 248 0.18 AT&T 4.875% 01/6/2044 GBP 700,000 1,011 0.73 Athene Global 1.75% 24/11/2027 GBP 904,000 931 0.68 Aviva 4% 03/6/2055 GBP 212,000 245 0.18 Aviva 5.125% 04/6/2050 GBP 910,000 1,106 0.80 Aviva 6.125% FRN 14/11/2036 GBP 500,000 616 0.45 Aviva 6.125% Perpetual GBP 650,000 699 0.51 Aviva 6.625% 03/6/2041 GBP 600,000 614 0.45 AXA 5.625% FRN 16/1/2054 GBP 600,000 799 0.58 Banco Santander 1.375% 31/7/2024 GBP 300,000 307 0.22 Banco Santander 2.75% 12/9/2023 GBP 700,000 737 0.54 Bank of America 7% 31/7/2028 GBP 750,000 1,092 0.79 Banque Federative du Credit Mutuel 1.75% 19/12/2024 GBP 200,000 211 0.15 Barclays 1.7% 03/11/2026 GBP 263,000 272 0.20 Barclays 2.375% 06/10/2023 GBP 300,000 308 0.22 Barclays 3.125% 17/1/2024 GBP 700,000 745 0.54
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Aberdeen Standard Capital Offshore Strategy Fund Limited Sterling Fixed Interest Class
Portfolio Statement (cont.)
Investments Holding Market Value Total Net Assets £000’s % Sterling Denominated Corporate Bonds (cont.)
Barclays 3.25% 12/2/2027 GBP 200,000 222 0.16 Barclays 3.25% 17/1/2033 GBP 400,000 469 0.34 Barclays 3.75% 22/11/2030 GBP 953,000 1,042 0.76 Barclays 7.25% Perpetual GBP 520,000 551 0.40 Barclays 9.5% 07/8/2021 GBP 250,000 262 0.19 Barclays Bank 10% 21/5/2021 GBP 490,000 506 0.37 BAT International Finance 2.25% 09/9/2052 GBP 530,000 442 0.32 BAT International Finance 4% 04/9/2026 GBP 380,000 436 0.32 BAT International Finance 6% 24/11/2034 GBP 355,000 492 0.36 Bazalgette Finance 2.375% 29/11/2027 GBP 415,000 455 0.33 Berkshire Hathaway Finance 2.375% 19/6/2039 GBP 350,000 412 0.30 Berkshire Hathaway Finance 2.625% 19/6/2059 GBP 277,000 365 0.26 Blend Funding 2.922% 05/4/2056 GBP 100,000 124 0.09 Blend Funding 3.459% 21/9/2049 GBP 543,000 724 0.53 BMW International Investment 1.875% 11/9/2023 GBP 500,000 520 0.38 BNP Paribas 3.375% 23/1/2026 GBP 700,000 788 0.57 BP Capital Markets 4.25% 22/6/2169 GBP 300,000 322 0.23 BPCE 5.25% 16/4/2029 GBP 200,000 258 0.19 British Telecommunications 6.375% 23/6/2037 GBP 180,000 284 0.21 Broadgate Financing 4.821% 05/7/2036 GBP 340,000 460 0.33 Broadgate Financing 5.098% 05/4/2035 GBP 388,167 464 0.34 Bromford Housing 3.125% 03/5/2048 GBP 338,000 450 0.33 Canary Wharf Finance II 6.455% 22/10/2033 GBP 22,815 28 0.02 Centrica 7% 19/9/2033 GBP 300,000 493 0.36 Chancellor Masters and Scholars of the University of Oxford 2.544% 08/12/2117 GBP 139,000 218 0.16 Channel Link Enterprises Finance 3.043% 30/6/2050 GBP 250,000 257 0.19 Channel Link Enterprises Finance 6.341% 30/6/2046 GBP 201,817 314 0.23 Circle Anglia Social Housing 7.25% 12/11/2038 GBP 220,000 420 0.30 Citigroup 1.75% 23/10/2026 GBP 403,000 425 0.31 Citigroup 2.75% 24/1/2024 GBP 172,000 183 0.13 Citigroup 5.875% 01/7/2024 GBP 160,000 186 0.14 Citigroup 6.8% 25/6/2038 GBP 420,000 767 0.56 CK Hutchison Telecom Finance 2% 17/10/2027 GBP 441,000 464 0.34 Clydesdale Bank 4.625% 08/6/2026 GBP 330,000 404 0.29 Comcast 5.5% 23/11/2029 GBP 295,000 411 0.30 Connect Plus M25 Issuer 2.607% 31/3/2039 GBP 503,516 582 0.42 CPUK Finance 3.588% 28/2/2042 GBP 710,000 765 0.56 CPUK Finance 4.25% 28/2/2047 GBP 116,041 116 0.08 Credit Suisse 2.125% 12/9/2025 GBP 1,073,000 1,125 0.82 CRH Finance 4.125% 02/12/2029 GBP 400,000 501 0.36
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Aberdeen Standard Capital Offshore Strategy Fund Limited Sterling Fixed Interest Class
Portfolio Statement (cont.)
Investments Holding Market Value Total Net Assets £000’s % Sterling Denominated Corporate Bonds (cont.)
Daimler 1.5% 13/1/2022 GBP 400,000 405 0.29 Danske Bank 2.25% 14/1/2028 GBP 700,000 732 0.53 Deutsche Bank 1.75% 16/12/2021 GBP 500,000 505 0.37 Deutsche Bank 2.625% 16/12/2024 GBP 1,200,000 1,265 0.92 Digital Stout 3.3% 19/7/2029 GBP 640,000 741 0.54 Digital Stout 3.75% 17/10/2030 GBP 100,000 121 0.09 Dignity Finance 4.6956% 31/12/2049 GBP 350,000 282 0.20 Direct Line Insurance 9.25% 27/4/2042 GBP 400,000 444 0.32 E.ON International Finance 5.875% 30/10/2037 GBP 250,000 402 0.29 E.ON International Finance 6.375% 07/6/2032 GBP 1,250,000 1,906 1.38 E.ON International Finance 6.75% 27/1/2039 GBP 200,000 354 0.26 Eastern Power Networks 2.125% 25/11/2033 GBP 200,000 224 0.16 Eastern Power Networks 5.75% 08/3/2024 GBP 369,000 430 0.31 Électricité de France 5.5% 17/10/2041 GBP 900,000 1,414 1.03 Électricité de France 5.5% 27/3/2037 GBP 100,000 152 0.11 Électricité de France 5.875% Perpetual GBP 500,000 580 0.42 Électricité de France 6% 23/1/2114 GBP 400,000 754 0.55 Électricité de France 6% FRN Perpetual GBP 200,000 228 0.17 Enel Finance International 5.75% 14/9/2040 GBP 500,000 815 0.59 ENGIE 5% 01/10/2060 GBP 300,000 586 0.43 ENGIE 7% 30/10/2028 GBP 400,000 589 0.43 Eversholt Funding 2.742% 30/6/2040 GBP 594,000 642 0.47 Eversholt Funding 3.529% 07/8/2042 GBP 406,000 482 0.35 Eversholt Funding 6.359% 02/12/2025 GBP 340,000 426 0.31 Eversholt Funding 6.697% 22/2/2035 GBP 255,000 341 0.25 Experian Finance 2.125% 27/9/2024 GBP 276,000 292 0.21 FCE Bank 2.727% 03/6/2022 GBP 130,000 131 0.10 Fidelity National Information Services 3.36% 21/5/2031 GBP 253,000 301 0.22 First Abu Dhabi Bank PJSC 1.375% 19/2/2023 GBP 397,000 401 0.29 First Hydro Finance 9% 31/7/2021 GBP 500,000 521 0.38 FirstGroup 5.25% 29/11/2022 GBP 150,000 159 0.12 FirstGroup 6.875% 18/9/2024 GBP 200,000 227 0.16 FirstGroup 8.75% 08/4/2021 GBP 311,000 317 0.23 Fiserv 2.25% 01/7/2025 GBP 100,000 107 0.08 Fiserv 3% 01/7/2031 GBP 200,000 232 0.17 Friends Life 8.25% 21/4/2022 GBP 600,000 658 0.48 Futures Treasury 3.375% 08/2/2044 GBP 300,000 403 0.29 Gatwick Funding 2.875% 05/7/2051 GBP 366,000 375 0.27 Gatwick Funding 4.625% 27/3/2036 GBP 600,000 748 0.54 Gatwick Funding 6.125% 02/3/2028 GBP 600,000 722 0.52
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Aberdeen Standard Capital Offshore Strategy Fund Limited Sterling Fixed Interest Class
Portfolio Statement (cont.)
Investments Holding Market Value Total Net Assets £000’s % Sterling Denominated Corporate Bonds (cont.)
GE Capital 5.25% 07/12/2028 GBP 57,000 71 0.05 GE Capital 5.375% 18/12/2040 GBP 210,000 289 0.21 GE Capital UK Funding 5.875% 18/1/2033 GBP 163,000 222 0.16 GE Capital UK Funding 6.25% 05/5/2038 GBP 76,000 113 0.08 General Motors Financial 2.35% 03/9/2025 GBP 350,000 364 0.26 GlaxoSmithKline Capital 1.625% 12/5/2035 GBP 544,000 571 0.41 GlaxoSmithKline Capital 5.25% 10/4/2042 GBP 200,000 339 0.25 GlaxoSmithKline Capital 6.375% 09/3/2039 GBP 536,000 968 0.70 Global Switch 4.375% 13/12/2022 GBP 425,000 455 0.33 Go-Ahead 2.5% 06/7/2024 GBP 470,000 478 0.35 Grainger 3% 03/7/2030 GBP 398,000 434 0.32 Great Rolling Stock 6.5% 05/4/2031 GBP 246,000 319 0.23 Great Rolling Stock 6.875% 27/7/2035 GBP 137,840 181 0.13 Greene King Finance 2.5426% FRN 15/12/2033 GBP 364,403 350 0.25 Gwynt y Mor 2.778% 17/2/2034 GBP 160,925 180 0.13 Hammerson 3.5% 27/10/2025 GBP 500,000 489 0.36 Heathrow Funding 2.75% 09/8/2051 GBP 120,000 129 0.09 Heathrow Funding 5.875% 13/5/2043 GBP 250,000 382 0.28 Heathrow Funding 6.45% 10/12/2031 GBP 1,000,000 1,448 1.05 Heathrow Funding 7.125% 14/2/2024 GBP 550,000 630 0.46 Home 3.125% 27/3/2043 GBP 194,000 239 0.17 HSBC 2.175% 27/6/2023 GBP 200,000 205 0.15 HSBC 2.256% 13/11/2026 GBP 485,000 516 0.37 HSBC 2.625% 16/8/2028 GBP 400,000 444 0.32 HSBC 3% 22/7/2028 GBP 200,000 223 0.16 HSBC 3% 29/5/2030 GBP 384,000 437 0.32 HSBC 5.375% 04/11/2030 GBP 390,000 470 0.34 HSBC 5.375% 22/8/2033 GBP 900,000 1,262 0.92 HSBC 6% 29/3/2040 GBP 450,000 661 0.48 Hyde Housing Association 1.75% 18/8/2055 GBP 396,000 395 0.29 Imperial Brands Finance 8.125% 15/3/2024 GBP 500,000 609 0.44 Income Contingent Student Loans 2 2007-2009 2.5% 24/7/2058 GBP 310,310 307 0.22 Incommunities Treasury 3.25% 21/3/2049 GBP 100,000 135 0.10 Innogy Finance 4.75% 31/1/2034 GBP 600,000 831 0.60 Intu Debenture 5.562% 31/12/2027 GBP 141,406 67 0.05 Intu Metrocentre Finance 4.125% 06/12/2028 GBP 780,000 361 0.26 John Lewis 4.25% 18/12/2034 GBP 250,000 254 0.18 Land Securities Capital Markets 2.399% 08/2/2031 GBP 300,000 325 0.24 Land Securities Capital Markets 2.625% 22/9/2039 GBP 350,000 395 0.29
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Aberdeen Standard Capital Offshore Strategy Fund Limited Sterling Fixed Interest Class
Portfolio Statement (cont.)
Investments Holding Market Value Total Net Assets £000’s % Sterling Denominated Corporate Bonds (cont.)
Landesbank Baden-Wurttemberg 1.125% 08/12/2025 GBP 400,000 405 0.29 Legal & General 5.5% 27/6/2064 GBP 210,000 279 0.20 Lend Lease Europe Finance 6.125% 12/10/2021 GBP 320,000 331 0.24 Lloyds Bank 7.625% 22/4/2025 GBP 670,000 849 0.62 Lloyds Bank Corporate Markets 1.75% 11/7/2024 GBP 376,000 388 0.28 London & Quadrant 2.25% 20/7/2029 GBP 460,000 498 0.36 London & Quadrant Housing Trust 3.75% 27/10/2049 GBP 200,000 285 0.21 McDonald's 2.95% 15/3/2034 GBP 200,000 238 0.17 Meadowhall Finance 4.986% 12/7/2037 GBP 231,483 272 0.20 Mitchells & Butlers Finance 5.965% 15/12/2025 GBP 34,788 36 0.03 Morgan Stanley 2.625% 09/3/2027 GBP 200,000 222 0.16 Morhomes 3.4% 19/2/2038 GBP 644,000 754 0.55 Motability Operations 2.375% 03/7/2039 GBP 400,000 470 0.34 MPT Finance 2.55% 05/12/2023 GBP 202,000 205 0.15 MPT Finance 3.692% 05/6/2028 GBP 446,000 481 0.35 Munich Re 6.625% FRN 26/5/2042 GBP 200,000 216 0.16 National Australia Bank 3% 04/9/2026 GBP 510,000 582 0.42 National Express 2.375% 20/11/2028 GBP 200,000 209 0.15 National Express 4.25% Perpetual GBP 207,000 212 0.15 National Grid Gas Finance 2.625% 22/9/2038 GBP 300,000 341 0.25 National Grid Gas Finance 2.75% 22/9/2046 GBP 200,000 230 0.17 National Westminster Bank 6.5% 07/9/2021 GBP 510,000 530 0.38 Nationwide Building Society 5.625% 28/1/2026 GBP 250,000 316 0.23 Nationwide Building Society 5.75% 20/12/2168 GBP 221,000 241 0.17 Natwest Group 5.125% 12/2/2069 GBP 214,000 223 0.16 NewRiver REIT 3.5% 07/3/2028 GBP 239,000 216 0.16 NGG Finance 5.625% 18/6/2073 GBP 725,000 829 0.60 Northern Powergrid Northeast 1.875% 16/6/2062 GBP 277,000 310 0.23 Northern Powergrid Yorkshire 2.25% 09/10/2059 GBP 213,000 260 0.19 Northern Powergrid Yorkshire 2.5% 01/4/2025 GBP 200,000 215 0.16 Notting Hill Housing Trust 4.375% 20/2/2054 GBP 200,000 312 0.23 Optivo Finance 3.283% 22/3/2048 GBP 425,000 559 0.41 Orange 5.625% 23/1/2034 GBP 900,000 1,370 1.00 Ørsted 2.5% 16/5/2033 GBP 244,000 285 0.21 Ørsted 4.875% 12/1/2032 GBP 350,000 490 0.36 Pacific Nation Finance 5% 19/9/2023 GBP 500,000 544 0.40 Paragon Treasury 3.625% 21/1/2047 GBP 500,000 661 0.48 Peabody Capital No 2 4.625% 12/12/2053 GBP 280,000 479 0.35 Penarian Housing Finance 3.212% 07/6/2052 GBP 410,000 505 0.37 Pension Insurance 3.625% 21/10/2032 GBP 293,000 320 0.23
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Aberdeen Standard Capital Offshore Strategy Fund Limited Sterling Fixed Interest Class
Portfolio Statement (cont.)
Investments Holding Market Value Total Net Assets £000’s % Sterling Denominated Corporate Bonds (cont.)
Pension Insurance 5.625% 20/9/2030 GBP 402,000 506 0.37 Petroleos Mexicanos 3.75% 16/11/2025 GBP 350,000 330 0.24 Porterbrook Rail Finance 4.625% 04/4/2029 GBP 425,000 513 0.37 Prudential 5.56% 20/7/2055 GBP 550,000 655 0.48 Prudential 5.625% 20/10/2051 GBP 221,000 264 0.19 QBE Insurance 6.115% 24/5/2042 GBP 200,000 212 0.15 Quadgas Finance 3.375% 17/9/2029 GBP 700,000 780 0.57 Quadrant Housing Finance 7.93% 10/2/2033 GBP 99,322 142 0.10 Rabobank 4.625% 23/5/2029 GBP 525,000 650 0.47 RL Finance 6.125% 30/11/2043 GBP 160,000 180 0.13 RL Finance NO 4 4.875% Perpetual GBP 476,000 555 0.40 RMPA Services 5.337% 30/9/2038 GBP 61,622 85 0.06 Royal Bank of Canada 1.125% 15/12/2025 GBP 200,000 206 0.15 Royal Bank of Scotland 2.875% 19/9/2026 GBP 820,000 890 0.65 Royal Bank of Scotland 3.622% 14/8/2030 GBP 322,000 346 0.25 Sanctuary Capital 5% 26/4/2047 GBP 200,000 347 0.25 Santander 3.875% 15/10/2029 GBP 240,000 299 0.22 Santander 5.25% 16/2/2029 GBP 350,000 480 0.35 Santander 7.375% Perpetual GBP 200,000 209 0.15 Santander UK 3.625% 14/1/2026 GBP 400,000 449 0.33 Scania CV 1.875% 28/6/2022 GBP 300,000 304 0.22 Scottish Hydro Electric Transmission 2.25% 27/9/2035 GBP 701,000 793 0.58 Severn Trent Utilities Finance 2% 02/6/2040 GBP 212,000 230 0.17 Severn Trent Utilities Finance 2.75% 05/12/2031 GBP 120,000 142 0.10 Severn Trent Water Utilities 6.25% 07/6/2029 GBP 230,000 329 0.24 Shaftesbury Carnaby 2.487% 30/9/2031 GBP 400,000 404 0.29 Shaftesbury Chinatown 2.348% 30/9/2027 GBP 555,000 560 0.41 SNCF Réseau 5.25% 31/1/2035 GBP 150,000 230 0.17 SNCF Réseau 5.375% 18/3/2027 GBP 200,000 254 0.18 Societe Generale 1.875% 03/10/2024 GBP 400,000 414 0.30 South Eastern Power Networks 5.625% 30/9/2030 GBP 168,000 239 0.17 Southern Gas Network 4.875% 21/3/2029 GBP 600,000 785 0.57 Southern Water Services Finance 3% 28/5/2037 GBP 631,000 717 0.52 Southern Water Services Finance 6.192% 31/3/2029 GBP 150,000 209 0.15 Sovereign Housing Capital 2.375% 04/11/2048 GBP 135,000 160 0.12 SP Transmission 2% 13/11/2031 GBP 181,000 199 0.14 SSE 3.625% 16/9/2077 GBP 200,000 206 0.15 SSE 3.74% 14/4/2169 GBP 522,000 551 0.40 Stagecoach 4% 29/9/2025 GBP 410,000 436 0.32 Swan Housing Capital 3.625% 05/3/2048 GBP 200,000 230 0.17
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Aberdeen Standard Capital Offshore Strategy Fund Limited Sterling Fixed Interest Class
Portfolio Statement (cont.)
Investments Holding Market Value Total Net Assets £000’s % Sterling Denominated Corporate Bonds (cont.)
TC Dudgeon Ofto 3.158% 12/11/2038 GBP 429,624 512 0.37 Telefónica Emisiones 5.375% 02/2/2026 GBP 140,000 170 0.12 Telereal Secured Finance 4.01% 10/12/2033 GBP 418,656 453 0.33 Telereal Securitisation 4.9741% 10/12/2033 GBP 81,750 92 0.07 Telereal Securitisation 5.5653% 10/12/2033 GBP 110,814 133 0.10 Tesco Corporate Treasury Services 2.75% 27/4/2030 GBP 100,000 111 0.08 Tesco Property Finance 3 5.744% 13/4/2040 GBP 728,200 996 0.72 Tesco Property Finance 4 5.8006% 13/10/2040 GBP 679,635 934 0.68 Thames Water Utilities Cayman Finance 1.875% 24/1/2024 GBP 220,000 228 0.17 Thames Water Utilities Cayman Finance 3.5% 25/2/2028 GBP 330,000 381 0.28 Thames Water Utilities Cayman Finance 4.375% 03/7/2034 GBP 650,000 870 0.63 Thames Water Utilities Finance 5.125% 28/9/2037 GBP 400,000 595 0.43 Time Warner Cable 5.75% 02/6/2031 GBP 325,000 432 0.31 Toyota Motor Credit 0.75% 19/11/2026 GBP 489,000 494 0.36 UNITE 3.5% 15/10/2028 GBP 360,000 401 0.29 United Utilities Water Finance 1.75% 10/2/2038 GBP 229,000 243 0.18 United Utilities Water Finance 1.875% 03/6/2042 GBP 459,000 493 0.36 University of Cambridge 2.35% 27/6/2078 GBP 221,000 358 0.26 Verizon Communications 1.875% 03/11/2038 GBP 603,000 638 0.46 Verizon Communications 1.875% 19/9/2030 GBP 463,000 495 0.36 Verizon Communications 2.5% 08/4/2031 GBP 121,000 137 0.10 Verizon Communications 3.375% 27/10/2036 GBP 500,000 638 0.46 Verizon Communications 4.75% 17/2/2034 GBP 300,000 424 0.31 Virgin 4% 25/9/2026 GBP 300,000 328 0.24 Virgin 8% Perpetual GBP 400,000 405 0.29 Virgin Money UK 5.125% 11/12/2030 GBP 501,000 537 0.39 Virgin Money UK 7.875% 14/12/2028 GBP 500,000 567 0.41 Vmed O2 UK Financing I 4% 31/1/2029 GBP 732,000 747 0.54 Vodafone 3% 12/8/2056 GBP 540,000 624 0.45 Vodafone 3.375% 08/8/2049 GBP 280,000 344 0.25 Volkswagen Financial Services 1.625% 10/2/2024 GBP 200,000 205 0.15 Volkswagen Financial Services 1.75% 12/9/2022 GBP 520,000 530 0.38 Volkswagen Financial Services 1.875% 03/12/2024 GBP 200,000 207 0.15 Volkswagen Financial Services 2.75% 10/7/2023 GBP 200,000 210 0.15 Volkswagen International Finance 3.375% 16/11/2026 GBP 200,000 225 0.16 Wales & West Utilities Finance 3% 03/8/2038 GBP 303,000 379 0.28 Wal-Mart Stores 5.25% 28/9/2035 GBP 700,000 1,113 0.81 Wellcome Trust 2.517% 07/2/2118 GBP 245,000 393 0.29
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Portfolio Statement (cont.)
Investments Holding Market Value Total Net Assets £000’s % Sterling Denominated Corporate Bonds (cont.)
Wells Fargo 2% 28/7/2025 GBP 210,000 222 0.16 Wells Fargo 4.625% 02/11/2035 GBP 200,000 283 0.21 Welltower 4.8% 20/11/2028 GBP 910,000 1,116 0.81 Western Power Distribution 3.625% 06/11/2023 GBP 306,000 327 0.24 Western Power Distribution 5.25% 17/1/2023 GBP 460,000 504 0.37 Western Power Distribution 5.75% 16/4/2032 GBP 550,000 811 0.59 Western Power Distribution East Midlands 1.75% 09/9/2031 GBP 200,000 212 0.15 Westfield America Management 2.125% 30/3/2025 GBP 300,000 306 0.22 Westfield Stratford City Finance No 1.642% 04/8/2031 GBP 504,000 509 0.37 Wheatley 4.375% 28/11/2044 GBP 250,000 360 0.26 Yorkshire Power Finance 7.25% 04/8/2028 GBP 200,000 286 0.21 Yorkshire Water Services Bradford Finance 6.375% 19/8/2039 GBP 350,000 619 0.45
Non-Sterling Denominated Corporate Bonds 4.89% (2.48%)
American Tower 1% 15/1/2032 EUR 302,000 275 0.20 Banco Santander 6.25% Perpetual EUR 800,000 731 0.53 Bankia 6.375% 19/12/2166 EUR 800,000 767 0.56 Breeze Finance 0% 19/4/2027 EUR 90,833 24 0.02 Channel Link Enterprises Finance 1.761% 30/6/2050 EUR 380,000 338 0.25 Charter Communications 5.125% 01/7/2049 USD 300,000 268 0.19 Credit Suisse 6.25% Perpetual USD 500,000 400 0.29 Dresdner Funding Trust PIDI 8.151% 30/6/2031 USD 800,000 860 0.62 Iberdrola International 1.874% Perpetual EUR 400,000 368 0.27 Standard Chartered ADS Reg S USD 600,000 570 0.41 Telefonica Europe 5.875% Perpetual EUR 200,000 201 0.15 Vivat 7% Perpetual EUR 600,000 599 0.44 Volkswagen International Finance 3.5% 17/6/2169 EUR 500,000 472 0.34 Volkswagen International Finance 3.875% 17/6/2169 EUR 500,000 483 0.35 ZF Finance 3% 21/9/2025 EUR 400,000 369 0.27
Derivatives 0.04% (0.02%)
EUR Forward Foreign Currency Contracts -0.01% (0.03%)
Forward Foreign Currency Contracts 8/2/2021 EUR 620,799 556 0.41 Forward Foreign Currency Contracts 8/2/2021 GBP (552,542) (553) (0.40) Forward Foreign Currency Contracts 8/2/2021 EUR 207,516 186 0.14 Forward Foreign Currency Contracts 8/2/2021 GBP (188,522) (189) (0.14) Forward Foreign Currency Contracts 8/2/2021 EUR 872,988 782 0.57 Forward Foreign Currency Contracts 8/2/2021 GBP (794,312) (794) (0.58) Forward Foreign Currency Contracts 8/2/2021 EUR (5,758,646) (5,157) (3.75) Forward Foreign Currency Contracts 8/2/2021 GBP 5,147,913 5,148 3.74
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Portfolio Statement (cont.)
Investments Holding Market Value Total Net Assets £000’s % EUR Forward Foreign Currency Contracts (cont.)
Forward Foreign Currency Contracts 8/2/2021 EUR (181,458) (163) (0.12) Forward Foreign Currency Contracts 8/2/2021 GBP 162,019 162 0.12 Forward Foreign Currency Contracts 8/2/2021 EUR (200,000) (179) (0.13) Forward Foreign Currency Contracts 8/2/2021 GBP 179,219 179 0.13 Forward Foreign Currency Contracts 8/2/2021 EUR (685,049) (614) (0.45) Forward Foreign Currency Contracts 8/2/2021 GBP 615,123 615 0.45 Forward Foreign Currency Contracts 8/2/2021 EUR (126,471) (113) (0.08) Forward Foreign Currency Contracts 8/2/2021 GBP 114,530 115 0.08
USD Forward Foreign Currency Contracts 0.04% (0.01%)
Forward Foreign Currency Contracts 8/2/2021 USD 209,159 153 0.11 Forward Foreign Currency Contracts 8/2/2021 GBP (156,438) (156) (0.12) Forward Foreign Currency Contracts 8/2/2021 USD (1,707,134) (1,249) (0.91) Forward Foreign Currency Contracts 8/2/2021 GBP 1,288,206 1,288 0.94 Forward Foreign Currency Contracts 8/2/2021 USD (37,117) (27) (0.02) Forward Foreign Currency Contracts 8/2/2021 GBP 28,005 28 0.02 Forward Foreign Currency Contracts 8/2/2021 USD (607,447) (444) (0.32) Forward Foreign Currency Contracts 8/2/2021 GBP 453,143 453 0.33 Forward Foreign Currency Contracts 8/2/2021 USD (394,032) (288) (0.21) Forward Foreign Currency Contracts 8/2/2021 GBP 295,660 296 0.22 Forward Foreign Currency Contracts 8/2/2021 USD (131,630) (97) (0.07) Forward Foreign Currency Contracts 8/2/2021 GBP 98,165 98 0.07 Forward Foreign Currency Contracts 8/2/2021 USD (132,536) (97) (0.07) Forward Foreign Currency Contracts 8/2/2021 GBP 98,578 99 0.07 Forward Foreign Currency Contracts 8/2/2021 USD (132,806) (97) (0.07) Forward Foreign Currency Contracts 8/2/2021 GBP 98,764 99 0.07
Futures 0.01% (-0.02%)
Euro-Bund Future March 2021 Futures (3) (2) 0.00 Long Gilt Future March 2021 Futures 9 10 0.01
Portfolio of investments 134,787 97.95
Net current assets 2,823 2.05
Total Net Assets 137,610 100.00
Total unapproved and unquoted securities 0.00%.
Comparative figures in brackets refer to 31 December 2019.
Unless otherwise indicated, the holdings in the Portfolio Statement represent the ordinary shares, ordinary stock units, common shares or debt securities of the relevant companies or issuers, which are listed on an eligible securities market.
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Financial Statements for the year ended 31 December 2020
Statement of Total Return
31 December 2020 31 December 2019 Notes £000’s £000’s £000’s £000’s Income Net capital gains Net capital gains on investments 1 7,521 8,290 Other gains/(losses) 1 4 (6) 7,525 8,284 Revenue 2 3,775 3,479 Expenses 3 (89) (93) Interest payable and similar charges 5 — (1) Net revenue before taxation 3,686 3,385 Taxation 4 (10) (11) Net revenue after taxation 3,676 3,374 Total return before distributions 11,201 11,658 Distributions 6 (3,765) (3,467) Net increase in Shareholders’ funds from Investment activities 7,436 8,191
Statement of Movement in Shareholders’ Funds
31 December 2020 31 December 2019 £000’s £000’s £000’s £000’s Opening net assets attributable to Shareholders 112,323 107,634 Amounts receivable on creation of shares 31,264 18,813 Amounts payable on cancellation of shares (13,451) (22,325) 17,813 (3,512) Dilution levy 38 10 Net increase in Shareholders’ funds from investment activities (see above) 7,436 8,191 Closing net assets attributable to Shareholders 137,610 112,323
All results above are derived from continuing activities for both the current and prior years.
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Financial Statements (cont.) as at 31 December 2020
Statement of Financial Position
31 December 2020 31 December 2019 Notes £000’s £000’s £000’s £000’s Assets Fixed assets Investment assets at fair value through profit or loss 134,817 110,843 Current assets Debtors 8 1,788 1,554 Cash and bank balances 9 2,078 924 Total current assets 3,866 2,478 Total assets 138,683 113,321 Liabilities Investment liabilities at fair value through profit or loss (30) (25) Creditors Amounts due to future clearing houses and brokers (1) — Distribution payable 10 (987) (859) Other creditors 10 (55) (114) Total current liabilities (1,043) (973) Total liabilities (1,073) (998) Net assets attributable to Shareholders 137,610 112,323 All liabilities are current.
The notes on pages 21 to 30 and pages 143 to 150 form part of the Financial Statements.
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Notes to the Financial Statements for the year ended 31 December 2020
1 Net capital gains The net capital gains on investments during the year comprise: 31 December 2020 31 December 2019 £000’s £000’s Non-derivative securities* 7,482 8,167 Derivative securities 78 12 Forward currency contracts* (17) 130 Other gains/(losses) – currency gains/(losses) * 4 (6) Custodial transaction fees (22) (19) Net capital gains 7,525 8,284
*Net gains (excluding custodial transaction fees) listed above of £7,547,120 comprise net realised gains of £1,232,436 and net unrealised gains of £6,314,684 (2019: £8,302,804 comprise net realised gains of £1,480,259 and net unrealised gains of £6,822,545). £344,753 of the net realised gains in the current year had been shown as net unrealised gains in previous years (2019: £(82,299) net realised losses). 2 Revenue 31 December 2020 31 December 2019 £000’s £000’s Bank interest 24 Interest on debt securities 3,772 3,471 Money market deposit 1 4 Total revenue 3,775 3,479
3 Expenses
31 December 2020 31 December 2019 £000’s £000’s Payable to the Manager or Associate of the Manager: Manager’s periodic charge 69 69 Other expenses: Audit fees 13 20 Custodian fees 31 28 Directors’ fees 13 11 Other expenses 26 25 83 84 Total expenses 89 93
4 Taxation 31 December 2020 31 December 2019 £000’s £000’s Withholding tax on overseas dividends 10 11 Total taxation 10 11
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Notes to the Financial Statements (cont.)
5 Interest payable and similar charges 31 December 2020 31 December 2019 £000’s £000’s Interest payable —1 Total interest payable and similar charges —1
6 Distributions The distributions take account of equalisation amounts added on the creation of shares and equalisation amounts deducted on the cancellation of shares. They comprise:
31 December 2020 31 December 2019 £000’s £000’s Interim distribution 31 March 849 867 Interim distribution 30 June 960 892 Interim distribution 30 September 999 859 Final distribution 31 December 987 859 3,795 3,477 Amounts added on creation of shares (87) (87) Amounts deducted on cancellation of shares 57 77 Gross distributions for the year 3,765 3,467
Details of the distribution per share are set out on the statements on pages 151 to 152. 7 Net movement between revenue after taxation and distributions 31 December 2020 31 December 2019 £000’s £000’s Net revenue after taxation 3,676 3,374 Expenses paid from capital 89 93 Gross distributions for the year 3,765 3,467
8 Debtors
31 December 2020 31 December 2019 £000’s £000’s Accrued revenue 1,761 1,546 Amounts receivable on creation of shares 25 7 Prepaid expenses 21 Total debtors 1,788 1,554
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Notes to the Financial Statements (cont.)
9 Cash and bank balances 31 December 2020 31 December 2019 £000’s £000’s Amount held at futures clearing houses and brokers 29 53 Cash held at bank 28 21 Money market deposit 2,021 850 Total cash and bank balances 2,078 924
10 Creditors 31 December 2020 31 December 2019 £000’s £000’s a) Distribution payable Gross distribution payable 987 859 Total distribution payable 987 859
b) Other creditors Accrued expenses 19 27 Amounts payable for cancellation of shares 36 87 Total other creditors 55 114
11 Related party transactions Manager’s periodic charge and Registrar’s fees payable to Aberdeen Standard Capital (CI) Limited are shown in Note 3. The aggregate monies received through creation and paid through cancellation of shares are disclosed in the Statement of Movement in Shareholders’ Funds and Note 6. Any amounts due to or from the Manager at the year end are disclosed in Notes 8 and 10. The total balance due to the Manager in respect of Manager’s periodic charge and Registrar’s fees at 31 December 2020 is £549 (2019: £647).
Directors’ fees payable to the Board of Directors are shown in Note 3.
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Notes to the Financial Statements (cont.)
12 Financial Instruments a) Interest rate risk The table that follows details the interest rate risk profile of the Sterling Fixed Interest Class assets at 31 December 2020.
Floating Rate Fixed Rate Non-Interest Bearing Investment Investments Investments Total £000’s £000’s £000’s £000’s Investment assets 2,209 132,530 78 134,817 Investment liabilities —— (30) (30)
The table that follows details the interest rate risk profile of the Sterling Fixed Interest Class assets at 31 December 2019.
Floating Rate Fixed Rate Non-Interest Bearing Investment Investments Investments Total £000’s £000’s £000’s £000’s Investment assets 2,115 108,674 54 110,843 Investment liabilities —— (25) (25)
b) Foreign currency risk The table that follows details the foreign currency risk profile of the Sterling Fixed Interest Class assets at the Statement of Financial Position date. 31 December 2020 31 December 2020 31 December 2020 31 December 2019 Investments Net Current Assets Total Total £000’s £000’s £000’s £000’s Euro (77) 35 (42) 3 US Dollar (48) 21 (27) 9 Total (125) 56 (69) 12
c) Credit risk Counterparty Details of OTC Financial Derivative Transactions The counterparty exposure is shown below:
31 December 2020 31 December 2020 31 December 2019 31 December 2019 Forwards Total Exposure Forwards Total Exposure Broker £000’s £000’s £000’s £000’s Citigroup (1) (1) 40 40 HSBC 28 28 —— Merrill Lynch International —— 99 Royal Bank of Canada 22 22 —— UBS (9) (9) (1) (1) 40 40 48 48
Counterparty exposure has not been disclosed for exchange traded derivatives as the exchange requirements in respect of collateral mean that, in the opinion of the Manager, the counterparty risk is mitigated.
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Notes to the Financial Statements (cont.)
12 Financial Instruments (cont.) c) Credit risk (cont.) Credit quality The credit quality of the Fund’s investments in debt securities is shown below:
December 2020 December 2019 Credit quality % of Net Assets % of Net Assets Investment grade 87.71 89.86 Non-investment grade 7.54 5.58 Not rated 2.66 3.20 Total bonds 97.91 98.64
d) Valuation of financial investments The following table analyses within the fair value hierarchy the assets and liabilities (by class of financial instrument) measured at fair value.
Level 1 Level 2 Level 3 Total £000’s £000’s £000’s £000’s 31 December 2020 Bonds — 134,739 — 134,739 Derivatives 8 40 — 48 8 134,779 — 134,787 31 December 2019 Bonds — 110,789 — 110,789 Derivatives (19) 48 — 29 (19) 110,837 — 110,818
The different levels of the fair value hierarchy are defined on page 29.
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Notes to the Financial Statements (cont.)
12 Financial Instruments (cont.) e) Sensitivity analysis Please note that the absolute Value at Risk (“VaR”) approach has been used for risk measurement and calculation of global exposure for this Fund.
VaR is a measure of the maximum potential loss to the Fund due to market risk. More particularly, VaR measures the maximum potential loss at a given confidence level (probability) over a specific time period under normal market conditions.
On the above basis the VaR has been as follows:
For the year 1 January 2020 to 31 December 2020: VaR % Highest 4.87 Average 4.19 Lowest 2.69
This means that, at its highest point during the year, there was a 1% chance of the portfolio value falling (or rising) more than 4.87% in a one month period. This calculation is generally determined by the use of an industry recognised medium term risk model, typically based on 3-5 year history. This method assumes normal market conditions and that the portfolio remains unchanged.
For the year 1 January 2019 to 31 December 2019: VaR % Highest 2.91 Average 2.78 Lowest 2.71
Leverage is calculated as the sum of the notionals of the derivatives used. The level of leverage employed during the relevant year was 100%. 13 Portfolio transaction costs For the year 1 January 2020 to 31 December 2020
Value Commissions Taxes Purchases £000’s £000’s % % % Debt Instruments 52,095 —— —— Total purchases 52,095 —— Total purchases including transaction costs 52,095
Sales Debt Instruments 34,749 —— —— Total sales 34,749 —— Total sales including transaction costs 34,749 Total transaction costs —— Total transaction costs as a % of average net assets 0.00% 0.00%
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Notes to the Financial Statements (cont.)
13 Portfolio transaction costs (cont.) For the year 1 January 2019 to 31 December 2019
Value Commissions Taxes Purchases £000’s £000’s % % % Debt Instruments 32,197 —— —— Total purchases 32,197 —— Total purchases including transaction costs 32,197
Sales Debt Instruments 35,317 —— —— Total sales 35,317 —— Total sales including transaction costs 35,317 Total transaction costs —— Total transaction costs as a % of average net assets 0.00% 0.00%
The above analysis covers any direct transaction costs suffered by the Fund during the year. However it is important to understand the nature of other transaction costs associated with different investment asset classes and instruments types.
Separately identifiable direct transaction costs (commissions & taxes etc.) are attributable to the Fund's purchase and sale of equity shares. Additionally for equity shares there is a dealing spread cost (the difference between the buying and selling prices) which will be suffered on purchase and sale transactions.
For the Fund's investment transactions in debt and money market instruments any applicable transaction charges form part of the dealing spread for these instruments. Transactions in money market instruments to manage the Fund's daily liquidity position are excluded from the analysis.
For the Fund's investment in collective investment scheme holdings there will potentially be dealing spread costs applicable to purchases and sales. However additionally there are indirect transaction costs suffered in those underlying funds, throughout the holding period for the instruments, which are not separately identifiable and do not form part of the analysis above.
Dealing spread costs suffered by the Fund vary considerably for the different asset/instrument types depending on a number of factors including transaction value and market sentiment.
At the Statement of Financial Position date the average portfolio dealing spread (difference between bid and offer prices of all investments expressed as a percentage of the offer price value) was 0.95% (2019: 0.74%).
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Notes to the Financial Statements (cont.)
14 Share movement For the year 1 January 2020 to 31 December 2020
Retail Shares Z Shares Opening shares 848,854 211,434,948 Shares issued 5,888 58,945,676 Shares redeemed (541,869) (24,095,978) Shares converted 248,136 (412,798) Closing shares 561,009 245,871,848
15 Post Statement of Financial Position Events Since the year end, markets and operations have continued to be disrupted by the effects of the Covid-19 pandemic. Since the year end the NAV per share has decreased by 4.25% (to 31 March 2021). Contingency plans at the Manager and key service suppliers have proven effective in mitigating the effects on management of the portfolio and on all supporting operations.
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Distribution Statements
Final Distribution For the three months ended 31 December 2020
Group 1: Shares purchased prior to 1 October 2020 Group 2: Shares purchased 1 October 2020 to 31 December 2020
(In pence per share) Net Revenue Equalisation* Amount Payable Retail Shares Group 1 0.6622 — 0.6622 Group 2 0.2188 0.4434 0.6622 Z Shares Group 1 0.3998 — 0.3998 Group 2 0.1883 0.2115 0.3998
The final distribution for the period ended 31 December 2019 was 0.6753 pence per Retail share and 0.4036 pence per Z share. Third Quarter Distribution For the three months ended 30 September 2020
Group 1: Shares purchased prior to 1 July 2020 Group 2: Shares purchased 1 July 2020 to 30 September 2020
(In pence per share) Net Revenue Equalisation* Amount Paid Retail Shares Group 1 0.6718 — 0.6718 Group 2 0.2417 0.4301 0.6718 Z Shares Group 1 0.4046 — 0.4046 Group 2 0.2371 0.1675 0.4046
The interim distribution for the period ended 30 September 2019 was 0.6793 pence per Retail share and 0.4050 per Z share. Second Quarter Distribution For the three months ended 30 June 2020
Group 1: Shares purchased prior to 1 April 2020 Group 2: Shares purchased 1 April 2020 to 30 June 2020
(In pence per share) Net Revenue Equalisation* Amount Paid Retail Shares Group 1 0.6630 — 0.6630 Group 2 0.2267 0.4363 0.6630 Z Shares Group 1 0.3983 — 0.3983 Group 2 0.2812 0.1171 0.3983
The interim distribution for the period ended 30 June 2019 was 0.7081 pence per Retail share and 0.4211 per Z share.
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Distribution Statements (cont.)
First Quarter Distribution For the three months ended 31 March 2020
Group 1: Shares purchased prior to 1 January 2020 Group 2: Shares purchased 1 January 2020 to 31 March 2020
(In pence per share) Net Revenue Equalisation* Amount Paid Retail Shares Group 1 0.6662 — 0.6662 Group 2 0.2349 0.4313 0.6662 Z Shares Group 1 0.3992 — 0.3992 Group 2 0.2088 0.1904 0.3992
The interim distribution for the period ended 31 March 2019 was 0.6910 pence per Retail share and 0.4099 per Z share.
*Equalisation applies to shares purchased during the distribution period (Group 2 shares). It is the average amount of revenue included in the purchase price of all Group 2 shares and is refunded to holders of these shares as a return of capital.
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Fund Report
Environment Hotels, all of which were heavily impacted by the pandemic. Covid-19 was the dominant factor in 2020. It negatively All three positions have since been sold. Cineworld was the affected financial markets during the first quarter but markets largest negative detractor from relative returns and we have broadly recovered since April. Positive vaccine news, a exited the position during the first half. Its share price contentious US presidential election and nail-biting Brexit plummeted on concerns about debt levels and the finale headlined the final quarter of the year, adding company’s inability to generate revenues while global momentum to the equity market rally and pushing the US governments mandated the closure of cinemas. stock market to an all-time high by the year-end. Activity Globally, stock markets rose over the 12-month period but During the first half of the year, the Fund purchased new positions with considerable divergence by country. While US and in Ashmore, Countryside Properties and Focusrite. Ashmore is an Chinese stocks performed well, markets in many other emerging markets focused asset manager and is well positioned countries recorded sharp falls. Shares in the UK and Latin to benefit from both structural and cyclical growth in these America fared particularly badly. markets. Countryside Properties is a builder and developer whose partnerships business offers a unique asset, supported by The UK stock market was among the poorer developed government-backed urban regeneration plans. Focusrite is a high- markets, ending lower over the 12 months. During a period of quality founder-owned branded audio solutions business with a considerable political upheaval, investors grappled with Brexit- leading global position. The business has grown organically, related uncertainty and the economic fallout from the winning share across all markets thanks to the rise in content coronavirus pandemic. Smaller domestic companies creation, which has enabled it to deliver top-line annual growth of outperformed larger London-listed companies, which includes 20% since its flotation in 2014. many global commodity firms. As well as Cineworld, we sold holdings in Lloyds Banking, Bunzl, Interest-rate cuts were prevalent over the period. The US Saga and Aviva during the first half. Lloyds was sold in January Federal Reserve reduced the main rate twice in March, with the on the basis that consensus expectations were too high. We final cut taking the main US rate to near zero. The ‘lower for sold Bunzl as it is plagued by weak underlying growth prospects, longer’ rhetoric from central banks around the world remained pressure on pricing from large customers and decreasing supportive of risk assets and held bond yields in check. underlying margins. Saga was a disappointing holding and we The second wave of Covid-19 strained capacity of health exited it as the outlook still seems bleak. It has a high level of services globally and new variants added further uncertainty. debt and is vulnerable to delayed bookings and cancellations However, a burgeoning vaccination programme and within its travel operations. We sold Aviva following the established monetary and fiscal support provided a far more suspension of its 2019 final dividend. Its valuation seems to certain backdrop this time around. The government offer little consolation given the lack of income. announced the extension of its furlough scheme till the end of During the second half of the year, the Fund initiated new April 2021, even as unemployment crept up to 4.9%. The Bank positions in Spirent Communications and Kainos. Spirent of England also boosted its bond-buying scheme by a further Communications is a communication services company that £150 billion. Both the US and the EU announced expanded will be a long-term beneficiary of increased network stimulus measures in December. complexity, and the testing required to ensure functionality Performance and security. Kainos is a digital transformation services The Fund returned -7.7% for the 12-month period. This was company that is well placed to benefit from accelerating ahead of the FTSE All-Share Index return of -9.8%. demand for digital support from both the government and enterprise customers. Growth should prove to be higher and Performance over the period was driven by stock selection in more sustainable than the market currently recognises. consumer goods, healthcare and industrials. The off- benchmark position in Keywords was the single largest We sold the holding in Severn Trent on valuation grounds, and contributor to relative performance over the 12-month period, positions in HSBC, Shaftesbury and InterContinental Hotels were and the holding in Focusrite was also a notable contributor. sold due to their challenging end-markets being impacted by the Within healthcare, the holdings in Dechra Pharmaceuticals and pandemic. The holding in Boohoo was also sold following Abcam drove relative returns. Within industrials, Renishaw was allegations of illegal working practices within the company’s a notable contributor to performance, as were the holdings in supply chain, which suggested insufficient oversight from Weir and DS Smith. management and created too great a reputational risk to justify maintaining the shares. The most significant detractor from performance was stock selection within consumer services. This was driven by holdings in Cineworld, Saga and InterContinental
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Fund Report (cont.)
Outlook The global economic outlook is dominated by two conflicting forces: an intense second wave of Covid-19 in Europe and North America that is already weighing on recoveries, and recent news of highly effective vaccines, which raises the likelihood of an eventual return to ‘normal’ life. The prospect of a number of vaccines being rolled out offers an eventual ‘escape hatch’ out of the pandemic and its economics effects. However, hurdles lie ahead. A multi-year, sustained effort will be required to achieve global inoculation, which will be subject to manufacturing, distribution and compliance challenges. We can’t help but temper some of the recent vaccine optimism.
We believe the current retightening of restrictions in the UK, US and Europe has further to run, and meaningful loosening won’t get underway until well into the first quarter of 2021. We, therefore, expect economic activity to flat-line through the winter. But from mid-2021 onwards, these economies should benefit strongly from vaccine rollout, given their large pre- orders and the size of the service sector in economic output.
Trade barriers between the US and China are unlikely to ratchet rapidly lower, but foreign policy will at least no longer be done ‘via tweet’, with a less volatile and more multilateral approach pursued instead. This should be positive for animal spirits across the broader emerging markets. We think China is the large economy emerging from the pandemic in the strongest shape. Successful containment of the virus and a stimulative policy stance mean its economy has already surpassed pre-pandemic levels. Domestic vaccine efforts are also bearing fruit. That said, the focus of policy in China will progressively move away from fighting Covid-19 towards managing financial risks, de-escalating tensions with the US and achieving its long-term growth and emissions targets.
We continue to concentrate on companies underpinned by long-term structural growth. We seek to identify businesses that will benefit from shifting trends, while avoiding those where change will be detrimental. Experience has taught us that companies that have strong balance sheets and can create value by generating cash flow in excess of their operational requirements tend to generate stronger, more sustainable returns. They are usually better positioned to reinvest in their businesses and distribute earnings to shareholders. These types of companies merit long-term positions in portfolios regardless of shorter-term sentiment.
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Aberdeen Standard Capital Offshore Strategy Fund Limited UK Equity Class
Statistics
Price and Revenue Record by Share Class (Calendar Year)
Retail Shares Highest Price (p) Lowest Price (p) Net Revenue per share* (p)
2016 207.23 166.07 6.1201
2017 226.16 202.77 6.6167
2018 234.61 197.47 7.2935
2019 225.61 196.56 7.6019
2020 220.99 139.68 4.3488
Z Shares Highest Price (p) Lowest Price (p) Net Revenue per share* (p)
2016 52.18 41.50 1.6379
2017 57.52 51.15 1.8116
2018 59.83 50.60 2.0028
2019 58.25 50.31 2.0900
2020 57.00 36.10 1.2439
Net Asset Value History by Share Class
Retail Shares as at Net Asset Value (£) Pence per share Shares in issue
31 December 2018 1,681,507 197.39 851,869
31 December 2019 1,438,413 218.91 657,093
31 December 2020 1,078,485 196.82 547,958
Z Shares as at Net Asset Value (£) Pence per share Shares in issue
31 December 2018 11,249,174 50.52 22,266,916
31 December 2019 12,549,599 56.46 22,228,622
31 December 2020 9,789,199 51.15 19,139,179
*Distributions are shown in the year declared rather than paid.
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Aberdeen Standard Capital Offshore Strategy Fund Limited UK Equity Class
Statistics (cont.)
Top Ten Purchases and Sales The table below shows the top ten purchases and sales (excluding any derivative transactions) for the year:
Purchases £000’s Sales £000’s Unilever 277 HSBC (UK Regd.) 265 Ashmore 244 Lloyds Banking 232 Countryside Properties 238 Royal Dutch Shell ‘B’ (UK Regd.) 227 Spirent Communications 203 Biotech Growth Trust 212 Kainos 160 Bunzl 194 AstraZeneca 99 BP 186 Focusrite 82 Severn Trent 159 Vodafone 79 InterContinental Hotels 159 Melrose Industries 78 Aviva 151 John Laing 70 Dechra Pharmaceuticals 145
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Aberdeen Standard Capital Offshore Strategy Fund Limited UK Equity Class
Portfolio Statement as at 31 December 2020
Investments Holding Market Value Total Net Assets £000’s % United Kingdom 100.19% (99.59%)
Oil & Gas Producers 4.90% (11.55%)
BP 88,123 225 2.07 Royal Dutch Shell ‘B’ (UK Regd.) 24,425 308 2.83
Oil Equipment, Services & Distribution 1.76% (2.27%)
Wood (John) 61,562 191 1.76
Chemicals 3.98% (4.00%)
Johnson Matthey 8,174 198 1.82 Synthomer 52,206 234 2.16
Forestry & Paper 2.27% (1.91%)
Mondi 14,355 247 2.27
Mining 9.55% (5.68%)
Anglo American 10,835 263 2.42 BHP 17,631 339 3.12 Rio Tinto (UK Regd.) 7,967 436 4.01
Construction & Materials 2.57% (2.38%)
Melrose Industries 156,830 279 2.57
Electronic & Electrical Equipment 1.87% (1.32%)
Renishaw 3,529 203 1.87
Industrial Engineering 4.72% (3.88%)
Bodycote 32,151 240 2.21 Weir 13,723 273 2.51
Industrial Transportation 1.15% (2.05%)
James Fisher & Sons 13,363 125 1.15
Support Services 4.50% (3.47%)
Ferguson 2,011 179 1.65 Keywords 10,851 310 2.85
Beverages 5.24% (4.78%)
Diageo 13,854 399 3.67 Fever-Tree Drinks 6,738 170 1.57
Food Producers 4.24% (2.32%)
Unilever 10,490 461 4.24
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Aberdeen Standard Capital Offshore Strategy Fund Limited UK Equity Class
Portfolio Statement (cont.)
Investments Holding Market Value Total Net Assets £000’s % Household Goods & Home Construction 9.40% (5.30%)
Bellway 7,518 222 2.04 Countryside Properties 48,450 226 2.08 Focusrite 12,716 131 1.20 Persimmon 9,174 254 2.34 Reckitt Benckiser 2,887 189 1.74
Pharmaceuticals & Biotechnology 13.37% (12.37%)
Abcam 13,254 205 1.89 AstraZeneca 8,471 620 5.70 Dechra Pharmaceuticals 5,983 206 1.90 GlaxoSmithKline 31,458 422 3.88
General Retailers 4.74% (6.19%)
DS Smith 85,493 320 2.95 Inchcape 30,372 195 1.79
Media 2.00% (1.74%)
RELX 12,106 217 2.00
Travel & Leisure 0.00% (3.46%)
Mobile Telecommunications 2.04% (1.27%)
Vodafone 183,373 222 2.04
Gas, Water & Multiutilities 2.14% (3.07%)
National Grid 26,935 233 2.14
Banks 2.32% (6.95%)
NatWest 150,372 252 2.32
Life Insurance 5.40% (7.18%)
Legal & General 61,693 164 1.51 Prudential 31,413 423 3.89
Real Estate Investment Trusts 0.00% (0.86%)
Financial Services 7.14% (3.70%)
Ashmore 53,751 232 2.13 Close Brothers 17,482 242 2.23 John Laing 90,931 302 2.78
Investment Trusts 1.57% (1.89%)
Biotech Growth Trust 10,936 171 1.57
Software & Computer Services 1.44% (0.00%)
Kainos 12,896 157 1.44
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Aberdeen Standard Capital Offshore Strategy Fund Limited UK Equity Class
Portfolio Statement (cont.)
Investments Holding Market Value Total Net Assets £000’s % Technology Hardware & Equipment 1.88% (0.00%)
Spirent Communications 77,304 204 1.88
Portfolio of investments 10,889 100.19
Net current liabilities (21) (0.19)
Total Net Assets 10,868 100.00
Total unapproved and unquoted securities 0.00%.
Comparative figures in brackets refer to 31 December 2019.
Unless otherwise indicated, the holdings in the Portfolio Statement represent the ordinary shares, ordinary stock units, common shares or debt securities of the relevant companies or issuers, which are listed on an eligible securities market.
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Aberdeen Standard Capital Offshore Strategy Fund Limited UK Equity Class
Financial Statements for the year ended 31 December 2020
Statement of Total Return
31 December 2020 31 December 2019 Notes £000’s £000’s £000’s £000’s Income Net capital (losses)/gains 1 (1,597) 1,554 Revenue 2 303 520 Expenses 3 (18) (27) Interest payable and similar charges 5 — — Net revenue before taxation 285 493 Taxation 4 — — Net revenue after taxation 285 493 Total return before distributions (1,312) 2,047 Distributions 6 (293) (506) Net (decrease)/increase in Shareholders’ funds from Investment activities (1,605) 1,541
Statement of Movement in Shareholders’ Funds
31 December 2020 31 December 2019 £000’s £000’s £000’s £000’s Opening net assets attributable to Shareholders 13,988 12,931 Amounts receivable on creation of shares 1,188 2,851 Amounts payable on cancellation of shares (2,704) (3,343) (1,516) (492) Dilution levy 1 8 Net (decrease)/increase in Shareholders’ funds from investment activities (see above) (1,605) 1,541 Closing net assets attributable to Shareholders 10,868 13,988
All results above are derived from continuing activities for both the current and prior years.
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Aberdeen Standard Capital Offshore Strategy Fund Limited UK Equity Class
Financial Statements (cont.) as at 31 December 2020
Statement of Financial Position
31 December 2020 31 December 2019 Notes £000’s £000’s £000’s £000’s Assets Fixed assets Investment assets at fair value through profit or loss 10,889 13,930 Current assets Debtors 8 24 35 Cash and bank balances 9 94 259 Total current assets 118 294 Total assets 11,007 14,224 Liabilities Creditors Distribution payable 10 (135) (231) Other creditors 10 (4) (5) Total liabilities (139) (236) Net assets attributable to Shareholders 10,868 13,988
All liabilities are current.
The notes on pages 21 to 30 and pages 162 to 167 form part of the Financial Statements.
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Notes to the Financial Statements for the year ended 31 December 2020
1 Net capital (losses)/gains The net capital (losses)/gains on investments during the year comprise: 31 December 2020 31 December 2019 £000’s £000’s Non-derivative securities* (1,595) 1,557 Custodial transaction fees (2) (3) Net capital (losses)/gains (1,597) 1,554
*Net losses (excluding custodial transaction fees) listed above of £(1,595,368) comprise net realised losses of £(736,940) and net unrealised losses of £(858,428) (2019: £1,556,982 comprise net realised gains of £313,007 and net unrealised gains of £1,243,975). £369,530 of the net realised gains in the current year had been shown as net unrealised losses in previous years (2019: £(49,925) net realised losses). 2 Revenue 31 December 2020 31 December 2019 £000’s £000’s Money market deposit 14 Overseas dividends 36 UK dividends 299 509 UK REIT dividends —1 Total revenue 303 520
3 Expenses
31 December 2020 31 December 2019 £000’s £000’s Payable to the Manager or Associate of the Manager: Manager’s periodic charge 10 17 10 17 Other expenses: Audit fees 12 Custodian fees 34 Directors’ fees 11 Other expenses 33 8 10 Total expenses 18 27
4 Taxation 31 December 2020 31 December 2019 £000’s £000’s Withholding tax on overseas dividends —— Total taxation ——
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Aberdeen Standard Capital Offshore Strategy Fund Limited UK Equity Class
Notes to the Financial Statements (cont.)
5 Interest payable and similar charges 31 December 2020 31 December 2019 £000’s £000’s Interest payable —— Total Interest payable and similar charges ——
6 Distributions The distributions take account of equalisation amounts added on the creation of shares and equalisation amounts deducted on the cancellation of shares. They comprise: 31 December 2020 31 December 2019 £000’s £000’s Interim distribution 30 June 142 281 Final distribution 31 December 135 231 277 512 Amounts added on creation of shares (7) (33) Amounts deducted on cancellation of shares 23 27 Gross distributions for the year 293 506
Details of the distribution per share are set out on the statements on page 168. 7 Net movement between revenue after taxation and distributions 31 December 2020 31 December 2019 £000’s £000’s Net revenue after taxation 285 493 Expenses paid from capital 8 13 Gross distributions for the year 293 506
8 Debtors 31 December 2020 31 December 2019 £000’s £000’s Accrued revenue 24 35 Total debtors 24 35
9 Cash and bank balances 31 December 2020 31 December 2019 £000’s £000’s Cash held at bank 94 5 Term deposits — 254 Total cash and bank balances 94 259
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Notes to the Financial Statements (cont.)
10 Creditors 31 December 2020 31 December 2019 £000’s £000’s a) Distribution payable Gross distribution payable 135 231 Total distribution payable 135 231
b) Other creditors Accrued expenses 45 Total other creditors 45
11 Related party transactions Manager’s periodic charge and Registrar’s fees payable to Aberdeen Standard Capital (CI) Limited are shown in Note 3. The aggregate monies received through creation and paid through cancellation of shares are disclosed in the Statement of Movement in Shareholders’ Funds and Note 6. Any amounts due to or from the Manager at the year end are disclosed in Notes 8 and 10. The total balance due to the Manager in respect of Manager’s periodic charge and Registrar’s fees at 31 December 2020 is £935 (2019: £1,292).
Directors’ fees payable to the Board of Directors are shown in Note 3. 12 Financial Instruments a) Interest rate risk The Fund does not currently invest in either fixed or floating rate securities and interest rate exposure is restricted to interest on bank deposits or payable on bank overdraft positions which will be affected by fluctuations in interest rates. b) Foreign currency risk There is no exposure to foreign currency risk. c) Credit risk The Fund did not enter into any derivative contracts during the year and therefore has no counterparty exposure. d) Valuation of financial investments The following table analyses within the fair value hierarchy the assets and liabilities (by class of financial instrument) measured at fair value.
Level 1 Level 2 Level 3 Total £000’s £000’s £000’s £000’s 31 December 2020 Equities 10,889 ——10,889 10,889 — — 10,889 31 December 2019 Equities 13,930 ——13,930 13,930 ——13,930
The different levels of the fair value hierarchy are defined on page 29.
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Aberdeen Standard Capital Offshore Strategy Fund Limited UK Equity Class
Notes to the Financial Statements (cont.)
12 Financial Instruments (cont.) e) Sensitivity analysis Please note that the absolute Value at Risk (“VaR”) approach has been used for risk measurement and calculation of global exposure for this Fund.
VaR is a measure of the maximum potential loss to the Fund due to market risk. More particularly, VaR measures the maximum potential loss at a given confidence level (probability) over a specific time period under normal market conditions.
On the above basis the VaR has been as follows:
For the year 1 January 2020 to 31 December 2020: VaR % Highest 17.75 Average 15.24 Lowest 7.93
This means that, at its highest point during the year, there was a 1% chance of the portfolio value falling (or rising) more than 17.75% in a one month period. This calculation is generally determined by the use of an industry recognised medium term risk model, typically based on 3-5 year history. This method assumes normal market conditions and that the portfolio remains unchanged.
For the year 1 January 2019 to 31 December 2019: VaR % Highest 8.38 Average 7.88 Lowest 7.35
Leverage is calculated as the sum of the notionals of the derivatives used. The level of leverage employed during the relevant year was 100%.
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Aberdeen Standard Capital Offshore Strategy Fund Limited UK Equity Class
Notes to the Financial Statements (cont.)
13 Portfolio transaction costs For the year 1 January 2020 to 31 December 2020
Value Commissions Taxes Purchases £000’s £000’s % % % Equity Instruments 2,066 1 0.04 10 0.48 Total purchases 2,066 1 10 Total purchases including transaction costs 2,077
Sales Equity Instruments 3,313 2 0.06 — — Collective investment schemes 212 —— —— Total sales 3,525 2 — Total sales net of transaction costs 3,523 Total transaction costs 3 10 Total transaction costs as a % of average net assets 0.03% 0.09%
For the year 1 January 2019 to 31 December 2019
Value Commissions Taxes Purchases £000’s £000’s % % % Equity Instruments 3,130 1 0.03 14 0.45 Collective investment schemes 9 —— —— Total purchases 3,139 1 14 Total purchases including transaction costs 3,154
Sales Equity Instruments 2,753 2 0.07 —— Collective investment schemes 32 —— —— Total sales 2,785 2 — Total sales net of transaction costs 2,783 Total transaction costs 3 14 Total transaction costs as a % of average net assets 0.02% 0.11%
The above analysis covers any direct transaction costs suffered by the Fund during the year. However it is important to understand the nature of other transaction costs associated with different investment asset classes and instruments types.
Separately identifiable direct transaction costs (commissions & taxes etc.) are attributable to the Fund's purchase and sale of equity shares. Additionally for equity shares there is a dealing spread cost (the difference between the buying and selling prices) which will be suffered on purchase and sale transactions.
For the Fund's investment transactions in debt and money market instruments any applicable transaction charges form part of the dealing spread for these instruments. Transactions in money market instruments to manage the Fund's daily liquidity position are excluded from the analysis.
For the Fund's investment in collective investment scheme holdings there will potentially be dealing spread costs applicable to purchases and sales. However additionally there are indirect transaction costs suffered in those underlying funds, throughout the holding period for the instruments, which are not separately identifiable and do not form part of the analysis above.
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Aberdeen Standard Capital Offshore Strategy Fund Limited UK Equity Class
Notes to the Financial Statements (cont.)
13 Portfolio transaction costs (cont.) Dealing spread costs suffered by the Fund vary considerably for the different asset/instrument types depending on a number of factors including transaction value and market sentiment.
At the Statement of Financial Position date the average portfolio dealing spread (difference between bid and offer prices of all investments expressed as a percentage of the offer price value) was 0.25% (2019: 0.17%). 14 Share movement For the year 1 January 2020 to 31 December 2020
Retail Shares Z Shares Opening shares 657,093 22,228,622 Shares issued 29,260 2,406,878 Shares redeemed (138,395) (5,496,321) Closing shares 547,958 19,139,179
15 Post Statement of Financial Position Events Since the year end, markets and operations have continued to be disrupted by the effects of the Covid-19 pandemic. Since the year end the NAV per share has increased by 2.84% (to 31 March 2021). Contingency plans at the Manager and key service suppliers have proven effective in mitigating the effects on management of the portfolio and on all supporting operations.
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Aberdeen Standard Capital Offshore Strategy Fund Limited UK Equity Class
Distribution Statements
Final Distribution For the six months ended 31 December 2020
Group 1: Shares purchased prior to 1 July 2020 Group 2: Shares purchased 1 July 2020 to 31 December 2020
(In pence per share) Net Revenue Equalisation* Amount Payable Retail Shares Group 1 2.2615 — 2.2615 Group 2 1.1988 1.0627 2.2615 Z Shares Group 1 0.6452 — 0.6452 Group 2 0.3397 0.3055 0.6452
The final distribution for the period ended 31 December 2019 was 3.3781 pence per Retail share and 0.9385 pence per Z share. Interim Distribution For the six months ended 30 June 2020
Group 1: Shares purchased prior to 1 January 2020 Group 2: Shares purchased 1 January 2020 to 30 June 2020
(In pence per share) Net Revenue Equalisation* Amount Paid Retail Shares Group 1 2.0873 — 2.0873 Group 2 1.1583 0.9290 2.0873 Z Shares Group 1 0.5987 — 0.5987 Group 2 0.3028 0.2959 0.5987
The interim distribution for the period ended 30 June 2019 was 4.2238 pence per Retail share and 1.1515 pence per Z share.
*Equalisation applies to shares purchased during the distribution period (Group 2 shares). It is the average amount of revenue included in the purchase price of all Group 2 shares and is refunded to holders of these shares as a return of capital.
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Find out more If you would like more information on Aberdeen Standard Capital you can:
Call us on 0345 279 8880 Email us at [email protected] Visit our website aberdeenstandardcapital.com
Aberdeen Standard Capital (CI) Limited is registered in Jersey (number 5769) at 1st Floor, Sir Walter Raleigh House, 48-50 Esplanade, St Helier, Jersey, JE2 3QB. Aberdeen Standard Capital (CI) Limited is regulated by the Jersey Financial Services Commission. Aberdeen Standard Capital Offshore Strategy Fund Limited is registered in Jersey (number 64833) at IFC 1, The Esplanade, St. Helier, Jersey JE1 4BP. Aberdeen Standard Capital Offshore Strategy Fund Limited is regulated by the Jersey Financial Services Commission. www.aberdeenstandardcapital.com