The International Pension Trust Annual Report for the year ended 31 March 2015

Table of contents

CHAIRMAN'S REPORT ...... 1

TRUSTEE, ADMINISTRATION AND ADVISERS ...... 2

REPORT OF THE TRUSTEE...... 4

INVESTMENT REPORT ...... 8

INDEPENDENT AUDITOR’S REPORT ...... 10

FUND ACCOUNT ...... 11

NET ASSETS STATEMENT ...... 12

NOTES TO THE FINANCIAL STATEMENTS ...... 13

Chairman’s Report

I am pleased to present the Annual Report for The Royal Bank of Scotland International Pension Trust (“the Trust”) for the year ended 31 March 2015.

The Trust is one of the largest pension schemes in the Channel Islands with 3,214 members in Jersey, Guernsey, Isle of Man, , Bermuda, the Bahamas and the Cayman Islands and assets of £502 million.

The Trustee Board met six times during the year to discuss issues affecting the governance and management of the Trust. This included the financial position of the Trust and the investment and administration arrangements.

The value of the net assets increased to just over £502m at 31 March 2015 from £415m at 31 March 2014. In particular the Trust’s investments benefited from an increase in market value of £80m and RBS International Limited contributed over £19m to the Trust over the year. In the year to 31 March 2015, the Trust paid £8.6m in benefits to retired members and dependants.

On behalf of the Trustee Board I would also like to thank the Trust’s advisers, both internal and external, for their assistance over the year.

Jerry Whitsey Chairman of the Board RBS International Employees’ Pension Trustees Limited

The Royal Bank of Scotland International Pension Trust Page 1 Trustee, Administration and Advisors

Principal Emp loyer The Royal Bank of Scotland plc

Participating Employers RBS International Limited RBS Group plc & Co Bank (Manx) Limited

Corporate Trustee RBS International Employees’ Pension Trustees Limited PO Box 6, 23-25 Broad Street St Helier Jersey JE4 8ND

Trustee Directors Jeremy Whitsey (Chairman) Employer Nominated Trustee Director Alan Cooper Member Nominated Trustee Director David Goodenough Member Nominated Trustee Director Julian Gouge Employer Nominated Trustee Director (Appointed 27 April 2015) Jurat Anthony Olsen Independent Trustee Director Martin Shaw Employer Nominated Trustee Director

Secretary to the Laurent Thebault Trustees Coutts & Co Trustees (Jersey) Limited PO Box 6, 23-25 Broad Street St Helier Jersey JE4 8ND

Scheme Actuary and Alan Singleton Actuarial Consultant Towers Watson 71 High Holborn London WC1V 6TP

Independent Auditor Deloitte LLP Jersey Channel Islands

Legal Adviser Linklaters LLP One Silk Street London EC2Y 8HQ

Administrator The Royal Bank of Scotland plc Pension Services City Link House 4 Addiscombe Road Croydon CR9 5PB

Banker The Royal Bank of Scotland International Limited PO Box 62, Royal Bank Place 1 Glategny Esplanade St Peter Port Guernsey GY1 4BQ

Investment Custodian State Street Bank & Trust Company 20 Churchill Place London E14 5HJ

RBS Investment RBS Investment Executive Limited is a team of investment specialists Executive Limited who provide investment support to the Trust and to a number of other pension schemes within the Royal Bank of Scotland Group plc.

The Royal Bank of Scotland International Pension Trust Page 2 Trustee, Administration and Advisors

Investment Adviser Mercer Limited 1 Tower Place West Tower Place London EC3R 5BU

Investment Manager s Aviva Life & Pensions UK Limited 2 Rougier Street York YO90 1UU

Equitable Life Assurance Society 20-22 Bedford Row London WC1R 4JS

Gramercy Emerging Markets Investments (appointed 12 November 2014) 1 Knightsbridge Green London SW1X 7NE

Henderson Global Investors Limited 201 Bishopsgate London EC2M 3A

Lothbury Investment Management Limited (appointed 12 November 2014) 155 Bishopsgate London EC2M 3TQ

Nephila Capital Limited (appointed 12 November 2014) Camomile Court 23 Camomile Street London EC3A 7LL

State Street Global Advisors UK Limited 20 Churchill Place London E14 5HJ

Zurich Assurance Limited The Grange Bishops Cleeve Cheltenham GL52 8XX

The Royal Bank of Scotland International Pension Trust Page 3 Report of the Trustee

Introduction

The Directors of RBS International Employees’ Pension Trustees Limited have pleasure in submitting this non-statutory annual report which covers the year ended 31 March 2015. The purpose of the report is to describe how the Trust has been managed during the year and to advise members of any significant changes that have been introduced during the year.

The Royal Bank of Scotland International Pension Trust is a defined benefits scheme. The Trust brings together, under one trust, previously existing pension plans in the offshore regions of Guernsey, Jersey, Isle of Man, Gibraltar, Bermuda, the Bahamas and the Cayman Islands.

The Trustee Board formally met six times during the year.

Trustee Directors

The power to appoint and remove the Trustee of the Trust is vested in The Royal Bank of Scotland plc.

The power of appointing and removing Trustee Directors is contained in the Articles of Association of RBS International Employees’ Pension Trustees Limited . Three directors are appointed by The Royal Bank of Scotland plc, two directors are selected by and from the membership of the Trust and one director is independent.

Membership Statistics

At 1 April Late At 31 March 2014 Notifications Joiners Leavers 2015

Active members 637 (3) - (81) 553 Deferred members 2,120 (2) 64 (60) 2,122 Pensioner members 489 - 54 (4) 539

3,246 (5) 118 (145) 3,214

Active members are employees accruing benefits. Deferred members are those who have left the Pension Trust with preserved pensions. Pensioner members are all those (including dependants) in receipt of a pension. Late notifications are in respect of leavers prior to the year end notified to Pension Services after membership statistics have been collated for inclusion in the Annual Report.

The Trust has been closed to new members since 2006.

The Royal Bank of Scotland International Pension Trust Page 4 Report of the Trustee

Tax Status

The Trust as a whole is approved by the Jersey tax authorities.

Each Plan is approved in its “home” jurisdiction (e.g. Isle of Man for the Isle of Man Plan etc.) as a local pension Trust. The exceptions are:

• the Caribbean Plan (as there is no system of tax approval in Cayman); and • the Global Plan (this has no home jurisdiction but obtains approval in any jurisdiction where it is required).

Up to 6 April 2015 the Trust had been registered with HM Revenue & Customs in the UK as a Qualifying Registered Overseas Pension Scheme (QROPS) under the Finance Act 2004. Due to the new statutory instrument which dictates that an overseas pension scheme cannot be accessed before the UK retirement age, the Trust is no longer classified as a QROPS. The Trust is considered an exempt approved scheme under the Finance Act 2004 and is therefore not subject to Income or Capital Gains Tax.

Financial review

The financial statements for the year ended 31 March 2015 set out on pages 11 to 19, provide an overview of the income, expenditure and investments of the Trust.

During the year under review the net assets of the Trust increased from £415,403,703 to £501,703,371 as at 31 March 2015. The Trust received contributions, as set out in note 3, of £19,066,141 (year ended 31 March 2014: £33,297,373) and paid benefits of £8,604,335 (year ended 31 March 2014: £6,786,929). There was a net gain on investments, resulting primarily from an increase in market value, of £79,977,366 (year ended 31 March 2014: £17,015,630).

Actuarial valuation

The latest actuarial valuation was conducted as at 31 March 2012. The results showed a deficit on a projected unit basis of £81.3m. Based on this valuation, the Actuary recommended that the Bank will pay additional contributions to the Trust at a rate of £13.5m a year for the period from 31 March 2012 to 31 January 2019 and that employer contributions increase from 28.4% of pensionable salaries to 28.9% of pensionable salaries.

The assumptions used in the valuation were as follows:

Discount rate - future benefit accrual UK gilt curve + 2.225% to 0.4%pa* Discount rate - accrued past service UK gilt curve + 2.225% to 0.4%pa* Pensionable earnings increases 1.8% pa Deferred pension revaluation UK gilt breakeven inflation curve pa Pension increases UK gilt breakeven inflation curve pa

∗ A margin of 2.225% over gilts or the first ten years following the 31 March 2012 valuation date, with the margin trending down to 0.4% over the subsequent twelve years.

The next actuarial valuation is due as at 31 March 2015 and work on the valuation is in progress.

The Royal Bank of Scotland International Pension Trust Page 5 Report of the Trustee

Pension Increases

Most pensions in payment are guaranteed to increase annually by the lesser of 5% and the change in the Retail Prices Index relevant to their jurisdiction for the twelve months to the preceding January. There are some exceptions, mainly former members of the Royal Bank of Scotland International Scheme, for whom the guaranteed increase in respect of pension service prior to 6 April 1997 is the lesser of 3% and the change in the Retail Prices Index relevant to their jurisdiction for the twelve months to the preceding January. Isle of Man members receive statutory Guaranteed Minimum Pension increases and the total pension increase is subject to a minimum of the statutory increase based on the UK Retail Prices Index. Caribbean pensions receive discretionary increases.

Deferred pensions are increased in line with statutory requirements relevant to their jurisdiction.

Employer-Related Investment

The Trust had no significant “employer-related investments” in the current or prior year. Through its investment in the UK index tracking pooled funds of State Street Global Advisors UK Limited the Trust has exposure to ordinary shares of The Royal Bank of Scotland Group plc.

Transfer Values

Cash equivalents and other individual transfer payments made during the year were calculated and verified on the basis recommended by the Scheme Actuary and in accordance with relevant regulations. No cash equivalents, guaranteed cash equivalents or transfer payments were paid on a reduced basis during the year. Discretionary increases are included in the calculation of transfer values where appropriate.

“Cash equivalent ” means:

(a) in the case of a Gibraltar, Guernsey, Jersey or Caribbean Member, a payment equal to the value of the Member’s deferred benefits under the Gibraltar, Guernsey, Jersey or Caribbean Plan (as appropriate) determined by the Trustee after considering actuarial advice; and

(b) in the case of an Isle of Man Member, a cash equivalent calculated in accordance with the Transfer Value Laws.

The Royal Bank of Scotland International Pension Trust Page 6 Report of the Trustee

Investments and Custodians

A Statement of Investment Principles (“SIP”) has been drawn up by the Trustee Directors setting out the high level investment policy. A copy of the SIP may be obtained by writing to Pension Services at the address on page 2 of this report.

State Street Bank & Trust Company (SSBT) is the custodian for assets underlying the pooled fund investments. The Investment Report is included on pages 8 to 9 of this report.

Scheme Enquiries

Requests for additional information about the Trust generally or queries relating to members’ own benefits should be made to the Administrator whose address appears on page 2 of this report.

Statement of the Trustee’s Responsibilities

The financial statements, which are prepared in accordance with UK Generally Accepted Accounting Practice, are the responsibility of the Trustee. The Trustee has undertaken to make available to Trust members, beneficiaries and certain other parties, audited financial statements for each Trust year which:

- show a true and fair view of the financial transactions of the Trust during the Trust year and of the amount and disposition at the end of that year of the assets and liabilities, other than liabilities to pay pensions and benefits after the end of the Trust year, and

- contain the information specified in the Trust Deed, including a statement whether the financial statements have been prepared in accordance with the Statement of Recommended Practice 'Financial Reports of Pension Schemes' (Revised May 2007).

The Trustee has supervised the preparation of the financial statements and has agreed suitable accounting policies, to be applied consistently, making any estimates and judgments on a prudent and reasonable basis.

The Trustee is also making available certain other information about the Trust in the form of an Annual Report.

The Trustee is responsible for keeping records in respect of contributions received in respect of any active member of the Trust and for monitoring whether contributions are made to the Trust by the employer in accordance with Trust Deed, the Trust Rules and the recommendations of the Actuary.

The Trustee also has a general responsibility for ensuring that adequate accounting records are kept and for taking such steps as are reasonably open to it to safeguard the assets of the Trust and to prevent and detect fraud and other irregularities, including the maintenance of an appropriate system of internal control.

The Royal Bank of Scotland International Pension Trust Page 7 Investment Report

Investment Overview

The Trustee Board sets the Trust’s investment strategy while State Street Global Advisors UK Limited (“SSgA”) manage the assets on a day to day basis.

Over the last year the Trustee Board has reviewed the Fund’s investment strategy with its investment advisor, Mercer Ltd. The review resulted in changes which are intended to provide greater diversification of assets. The diversification has been achieved by reducing the equity allocation and adding three new asset classes:

1. Property – An investment in a fund which holds UK commercial property such as offices, retail and industrial premises. The fund manager is Lothbury Investment Management Limited.

2. Reinsurance – An investment in a fund which holds financial contracts whose return is linked to insured events. The types of insured event within the fund can include fire, wind, flood or earthquake damage in regions including North America and Europe. The fund manager is Nephila Capital Ltd.

3. Emerging markets debt - An investment in a fund which holds bonds issued mainly by emerging market governments. The bonds are denominated in emerging market currencies (rather than Sterling or US Dollars). The fund manager is Gramercy Funds Management LLC.

Distribution of assets

The asset mix changed in the year to reflect the new asset classes added as part of the review of investment strategy.

Asset mix at 31 March 2015:

Target Target weight weight 2014 2015 Index linked government 35% 35% bonds Corporate bonds 15% 15% Global developed equity 46% 35% Emerging markets equity 4% 5% Property - 5% Reinsurance - 2.5% Emerging markets debt - 2.5%

Cash and other - -

The Royal Bank of Scotland International Pension Trust Page 8 Investment Report

Performance

The assets returned 19.6% in the 12 months to 31 March 2015.

Performance to 31 March 2015

The new asset classes (property, reinsurance and emerging markets debt) were added during the year so a 12 month performance history is not yet available; performance of the other asset classes is shown below.

Performance to 31 March 2015

The Royal Bank of Scotland International Pension Trust Page 9 Independent Auditor’s Report to the Trustee of the Royal Bank of Scotland International Pension Trust

We have audited the non-statutory financial statements of the Royal Bank of Scotland International Pension Trust for the year ended 31 March 2015 which comprise the fund account, the net assets statement and the related notes 1 to 16. These non-statutory financial statements have been prepared under the accounting policies set out therein and for the reasons set out in note 1.

This report is made solely to the Trustee, as a body, in accordance with the requirements of the Trust Deed and Rules and our engagement letter dated 8 April 2015. Our audit has been undertaken so that we might state to the Trustee those matters we are required to state to it 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 Trustee as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of the Trustee and Auditor

As explained more fully in the Trustee’s Responsibilities Statement, the Trustee is responsible under the Trust Deed for preparing the non-statutory financial statements in accordance with the requirements of the Trust Deed, applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Our responsibility is to audit and express an opinion on the non-statutory financial statements in accordance with the requirements of the Trust Deed and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.

Scope of the audit of the non statutory financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the Trust’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the Trustee; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the annual report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report .

Opinion on non-statutory financial statements

In our opinion the non-statutory financial statements:

• show a true and fair view, of the financial transactions of the Trust during the year ended 31 March 2015, and of the amount and disposition at that date of its assets and liabilities, other than the liabilities to pay pensions and benefits after the end of the year; • have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and • have been prepared in accordance with the requirements of the Trust Deed.

Deloitte LLP

Chartered Accountants

Jersey, Channel Islands

Date

The Royal Bank of Scotland International Pension Trust Page 10 Fund Account for the Year Ended 31 March 2015

2015 2014 Notes £ £ Contributions and benefits Contributions 3 19,066,141 33,297,373 Transfers in 4 11,051 750,134 Other income 5 80,000 40,754

19,157,192 34,088,261

Benefits 6 (8,604,335) (6,786,929) Payment to and on account of leavers 7 (3,744,225) (4,406,858) Other payments 8 (95,321) (59,614) Administrative expenses 9 (391,009) (383,989)

(12,834,890) (11,637,390)

Net additions from dealings with members 6,322,302 22,450,871

Returns on investments Investment income 10 159,781 3,335 Investment management expenses 11 (309,259) (301,310) Change in market value of investments 12 80,126,844 17,313,605

Net returns on investments 79,977,366 17,015,630

Net increase in the fund during the year 86,299,668 39,466,501

Net assets at the beginning of the year 415,403,703 375,937,202

Net assets at the end of the year 501,703,371 415,403,703

The accompanying notes on pages 13 to 19 are an integral part of these financial statements.

The Royal Bank of Scotland International Pension Trust Page 11 Net Assets Statement for the Year Ended 31 March 2015

2015 2014 Notes £ £

Investments 12 487,190,306 414,894,380

Current assets 13 14,673,289 651,029

Current liabilities 14 (160,224) (141,706)

Net assets at 31 March 501,703,371 415,403,703

The financial statements summarise the transactions of the Trust and deal with the net assets at the disposal of RBS International Employees’ Pension Trustees Limited. They do not take account of obligations to pay pensions and benefits which fall due after the end of the Trust year. The actuarial position of the Trust, which does take account of such obligations, is dealt with in the actuarial valuation note on page 5 of the Annual Report and these financial statements should be read in conjunction with that note.

Approved by the Board of Directors of RBS International Employees’ Pension Trustees Limited and signed on its behalf on by

……………………… ) ) ) Directors ……………………… )

The accompanying notes on pages 13 to 19 are an integral part of these financial statements.

The Royal Bank of Scotland International Pension Trust Page 12 Notes to the Financial Statements

1 The Trust

The Royal Bank of Scotland International Pension Trust (formerly the International Pension Trust) was established with effect from 1 March 1998 by a Trust Deed dated 24 February 1998. The International Pension Trust provides retirement and death benefits for certain employees and former employees of The Royal Bank of Scotland Group plc. The annual audit of the financial statements of the Trust is conducted in accordance with the Trust Deed.

2 Accounting Policies

2.1 Basis of preparation

The financial statements have been prepared under the historical cost convention as modified by the revaluation of investments and within the guidelines set out in the Statement of Recommended Practice, ‘Financial Reports of Pension Schemes’ (Revised May 2007), United Kingdom Generally Accepted Accounting Principles and the trust deed.

2.2 Accruals concept

The financial statements have been prepared on an accruals basis.

2.3 Valuation of investments

Pooled investment vehicles are stated at fair value which is determined by the closing bid price or single price at the year end as advised by the fund manager.

2.4 Foreign Exchange

Transactions denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the net assets statement date. Monetary assets and liabilities in foreign currencies other than sterling are also expressed in sterling at the rates of exchange ruling at the net assets statement date. Surpluses and deficits arising on conversion or translation are taken to the fund account.

2.5 Investment Income

Investment income is accounted for on an accruals basis. All investment income is stated inclusive of any related recoverable taxation but net of any irrecoverable tax, including overseas withholding taxes and the cost of collection.

The Royal Bank of Scotland International Pension Trust Page 13 Notes to the Financial Statements

2.6 Contributions and benefits

Pension contributions including deficit funding, by and in respect of members are accounted for on an accruals basis.

Benefits payable to or in respect of members are accounted for as they fall due for payment.

2.7 Transfers to and from the scheme

The financial statements include transfers of pension rights at values approved by the Trustee as recommended by the actuaries in the year in respect of transfers from existing RBS schemes and individuals.

Assets from AVC transfers have been made at market value at the date of transfer.

2.8 Administrative, investment management and other expenses

All administrative, investment management and other expenses are accounted for on an accruals basis.

3 Contributions

2015 2014 £ £ Employers normal 5,510,778 6,174,981 deficit funding 13,500,000 27,000,000 augmentations - 66,167 Members additional voluntary contributions 55,363 56,225

19,066,141 33,297,373

In accordance with the relevant actuarial valuations the participating employers contributed at the rate of 28.9% of pensionable salary except for the employers of Caribbean members, who contribute at the rate of 18.9% to the RBS International Pension Trust and 10% to the Silver Thatch scheme. In respect of the shortfall in funding disclosed in the actuarial funding valuation as at 31 March 2012, the employer paid £13,500,000 on 19 March 2015.

The Royal Bank of Scotland International Pension Trust Page 14 Notes to the Financial Statements

4 Transfers in 2015 2014

£ £

Individual transfers in 11,051 750,134

Transfers in from RBS UK schemes and individual transfers include transfers of pension rights on a basis approved by the Trustee as recommended by the actuaries.

AVC transfers in include assets at market value transferred in respect of members of the Trust who have paid additional voluntary contributions.

5 Other income

2015 2014 £ £

Reimbursement of prior period expenses 80,000 - Claims on term insurance policies - 40,754

80,000 40,754

6 Benefits

2015 2014 £ £

Pensions 6,318,813 5,762,792 Commutations and lump sum retirement benefits 2,269,557 980,715 Death benefits 15,965 43,422

8,604,335 6,786,929

7 Payments to and on account of leavers

2015 2014 £ £

Individual transfers out 3,744,225 4,406,858

8 Other payments

2015 2014 £ £ Life assurance premiums 95,321 59,614

The Royal Bank of Scotland International Pension Trust Page 15 Notes to the Financial Statements

9 Administrative expenses

2015 2014 £ £

Administration fees 225,987 219,579 Actuarial and consultancy fees 42,164 79,139 Legal fees 46,928 29,841 Audit fees 23,185 19,750 Bank charges and sundry expenses 15,302 14,427 Trustee Directors’ fees 29,000 19,000 Professional Advisory Fees 6,000 - Communications costs 2,443 2,253

391,009 383,989

10 Investment income

2015 2014 £ £

Income from pooled investment vehicles 154,963 - Net dividends from equities and equity based managed funds - 12 Rebates received 2,969 - Interest on cash deposits 1,849 3,323

159,781 3,335

11 Investment management expenses

2015 2014 £ £

Investment managers’ fees 309,259 301,310

309,259 301,310

The Royal Bank of Scotland International Pension Trust Page 16 Notes to the Financial Statements

12 Investments

12.1 Market Value Reconciliation

Value at Change in Value at 1 April Market 31 March 2014 Purchases Sales Value 2015 £ £ £ £ £

Pooled investment vehicles 413,280,346 285,997,733 (294,275,313) 79,702,736 484,705,502 Coutts NatWest Global Retirement Plan 493,218 3,878 (763) 184,819 681,152 AVCs 1,120,816 57,065 (193,469) 108,099 1,092,511 414,894,380 286,058,676 (294,469,545) 79,995,654 486,479,165 Cash deposits - 131,190 711,141 414,894,380 80,126,844 487,190,306

The change in market value of investments during the year comprises all increases and decreases in the market value of investments held at any time during the year, including profits and losses realised on sales of investments during the year and foreign exchange differences.

Transaction costs are included in the cost of purchases and sales proceeds. Transaction costs include costs charged directly to the Trust such as fees, commissions, stamp duty and other fees. In addition to the transaction costs, indirect transaction costs are incurred on bid-offer spread on investments within pooled investment vehicles. The amount of indirect transaction costs is not separately provided by the Trust.

Purchases at cost in respect of AVC investments represent AVCs paid onwards by the Trustee to third party providers. Sale proceeds in respect of AVC investments represent AVC funds returned to the Trust by AVC providers to settle benefits due to members.

12.2 Pooled Investment Vehicles 201 5 201 4 £ £ Other Managed Funds United Kingdom 484,705,502 413,280,346

The fund manager operating the pooled investment vehicles is registered in the UK.

The Royal Bank of Scotland International Pension Trust Page 17 Notes to the Financial Statements

12 Investments (continued)

12.3 Concentration of investments

Individual investment holdings that represent over 5% of the Trust assets are:

201 5 201 4 £ % £ % Managed Pension Funds UK Index Linked Gilts 175,879,047 35.1 144,298,328 34.7 Managed Pension Funds International Equity - - 133,511,929 32.1 Managed Pension Funds North American Equity 98,748,765 19.7 - - Managed Pension Funds Corporate Bond 71,522,221 14.3 60,396,151 14.5 Managed Pension Funds UK Equity - - 57,808,078 13.9 Managed Pension Funds European Equity 28,722,010 5.7 - -

12.4 Global Retirement Plan

The Trustee holds assets invested in the Coutts NatWest Global Retirement Plan separately from the main fund in the form of units held in Henderson managed funds.

12.5 AVCs

AVCs invested separately from the Trust's main assets 201 5 201 4 £ £

Zurich 915,688 943,896 Aviva 140,256 144,413 Equitable Life 36,567 32,507

1,092,511 1,120,816

The Trustee holds AVC assets invested separately from the main fund in the form of individual policies with The Equitable Life Assurance Society, Zurich and Aviva, securing additional benefits for those members electing to pay additional voluntary contributions. Participating members each receive an annual statement confirming amounts held to their account and movements in the year.

13 Current assets 201 5 201 4 £ £

Cash 14,430,088 548,641 Income from pooled investment vehicles 154,963 - Sundry debtors 88,238 102,388

14,673,289 651,029

The Royal Bank of Scotland International Pension Trust Page 18 Notes to the Financial Statements

14 Current liabilities 201 5 201 4 £ £

Unpaid benefits 36,789 36,789 Accrued expenses 107,311 104,467 Other creditors 16,124 450

160,224 141,706 15 Contingent liabilities or commitments

Other than the liabilities to pay future benefits, in the opinion of the Trustee the Trust had no contingent liabilities at 31 March 2015 (31 March 2014: £ nil).

16 Related and controlling parties

The following information is provided in accordance with Financial Reporting Standard 8, "Related Party Disclosures":

All the Trustee Directors of Royal Bank of Scotland International Employees’ Pension Trustees Limited, with the exception of Jurat Anthony Olsen, are members of the Trust. Contributions received and pensions paid in respect of the Trustee Directors are made in accordance with the Trust Deed and Rules.

During the year under review, the Trust paid the Trustee Directors remuneration amounting to £29,000 (2014: £19,000).

Certain internal costs of administering the Trust were borne directly by The Royal Bank of Scotland Group plc during the year.

The Trust operates bank accounts held with The Royal Bank of Scotland International Limited. These accounts represent the cash balances disclosed in note 13.

The Trust is controlled by the Trustee, RBS International Employees’ Pension Trustees Limited. The Trustee is wholly owned by The Royal Bank of Scotland International (Holdings) Limited. The ultimate holding company and controlling party is The Royal Bank of Scotland Group plc, incorporated in Scotland.

On 1 December 2008, the UK Government through HM Treasury became the ultimate controlling party of The Royal Bank of Scotland Group plc. The UK Government’s shareholding is managed by UK Financial Investments Limited, a company wholly owned by the UK Government. As a result, the UK Government and UK Government controlled bodies became related parties of the Trust. The Trust may have had transactions with UK Government bodies on an arm’s length basis and investments in government securities (held as part of a pooled fund) during the year ending 31 March 2015, and these are included in note 12. The volume and diversity of such transactions in the Trust is such that disclosure of their amounts in the year ended 31 March 2015 is impractical.

The Royal Bank of Scotland International Pension Trust Page 19