Half-year Report

Miton Global Opportunities plc

Half-Yearly Report for the six months ended 31 October 2018

Miton Global Opportunities plc (the “Company”) has today released its Half-Yearly Report for the six months ended 31 October 2018.

The Half-Yearly Report and other information will be available via www.mitongroup.com/private/fund/miton-global-opportunities-plc/.

A copy of the Half Year Report will also be submitted to the National Storage Mechanism and will shortly be available for inspection at http://www.morningstar.co.uk/uk/NSM  

Enquiries:
Miton Trust Managers Limited
David Barron
DDI: [phone]
Email:[e-mail]   

Frostrow Capital LLP
Company Secretary
DDI: [phone]
Email:[e-mail]

Financial Highlights

31 October 2018		30 April 2018
Net asset value per share	270.4p	276.4p
Share price	271.0p	273.0p
Premium / (Discount)	0.2%	(1.2%)
Net asset value volatility over one year1	6.5%	6.0%
Net Cash*	12.0%	5.9%
Ongoing charges2	1.4%	1.4%

    1 Source: Frostrow/ Morningstar
    2 Source: Frostrow
    *See Glossary later in the document. Net cash is shown rather than gearing as the Company holds cash
      in excess of its borrowings.

Total Return Performance to 31 October 2018

	6 months %	1 year %	5 years %
Net asset value	(2.2)	(0.8)	60.9
Share price	(0.7)	(2.7)	79.2
3-month SONIA +2%	1.3	2.5	12.6

Source: Morningstar

Investment Objective

At the general meeting of the Company held on 5 October 2018, shareholders approved an amendment to the investment objective, changing it from outperformance of Sterling 3-month LIBOR plus 2% to outperformance of 3-month SONIA plus 2%. SONIA being the Sterling Overnight Index Average, the Sterling Risk-Free Reference Rate preferred by the Bank of England for use in Sterling derivatives and relevant financial contracts.

Consequently, the objective of the Company is to outperform 3-month SONIA plus 2% (the Benchmark) over the longer term, principally through exploiting inefficiencies in the pricing of closed-end funds. This objective is intended to reflect the Company’s aim of providing a better return to shareholders over the longer term than they would get by placing money on deposit.

The Benchmark is a target only and should not be treated as a guarantee of the performance of the Company or its portfolio.

Investment Policy

The Company invests in closed-end investment funds traded on the London Stock Exchange’s Main Market but has the flexibility to invest in investment funds listed or dealt on other recognised stock exchanges, in unlisted closed-end funds (including, but not limited to, funds traded on AIM) and in open-ended investment funds. The funds in which the Company invests may include all types of investment trusts, companies and funds established onshore or offshore. The Company has the flexibility to invest in any class of security issued by investment funds including, without limitation, equity, debt, warrants or other convertible securities. In addition, the Company may invest in other securities, such as non-investment fund debt, if deemed to be appropriate to produce the desired returns to shareholders.

The Company is unrestricted in the number of funds it holds. However, at the time of acquisition, no investment will have an aggregated value totalling more than 15% of the gross assets of the Company. Furthermore, the Company will not invest more than 10%, in aggregate, of the value of its gross assets at the time of acquisition in other listed closed-end investment funds, although this restriction does not apply to investments in any such funds which themselves have stated investment policies to invest no more than 15% of their gross assets in other listed closed-end investment funds. In addition, the Company will not invest more than 25%, in aggregate, of the value of its gross assets at the time of acquisition in open-ended funds.

There are no prescriptive limits on allocation of assets in terms of asset class or geography.

There are no limits imposed on the size of hedging contracts, save that their aggregated value will not exceed 20% of the portfolio’s gross assets at the time they are entered into.

The Board permits borrowings of up to 20% of the Company’s net asset value (measured at the time new borrowings are incurred).

The Company’s investment objective may lead, on occasions, to a significant amount of cash or near cash being held.

Chairman’s Statement

This is my first statement to shareholders, having taken over as Chairman of the Company at the conclusion of the Annual General Meeting (AGM) on 5 October 2018.  I would like to start by thanking Anthony Townsend, my predecessor, and James Fox, the previous Chair of the Audit Committee, for all their efforts on behalf of the Company and their unwavering support. It has been a great pleasure to work with them and they will be missed as Katya Thomson, the new Audit Chair, and I endeavor to contribute to the success of the Company with the help of the other Directors and, of course, our Investment Manager. 

Performance

Over the six months to 31 October 2018 the Company’s net asset value per share fell by 2.2% and the share price fell by 0.7% on a total return basis. These returns compare to the return from the Company’s new Benchmark, 3-month SONIA plus 2%, which delivered a total return of 1.3%.  

A comprehensive review of the factors affecting the Company’s performance during the period can be found in the Investment Manager’s Review later in this report.

Share Price and Share Issuances

Despite the small reduction in the share price to 271.0p over the six months, the shares continued to trade at a slight premium to net asset value per share at the end of the period.

Continued demand for the Company’ shares over the period led to the issue of 800,000 new ordinary shares, raising new funds of £2.3 million. As at 31 October 2018, the Company had 28,004,985 (30 April 2018: 27,204,985) shares in issue.

As previously noted by my predecessor, the Company will continue to be proactive in managing its share price premium by utilising when appropriate the issuance authorities granted by shareholders. Issuing new shares at a premium to net asset value per share is accretive to existing shareholders and any share issuance also improves the liquidity of the Company’s shares, controls the premium to net asset value per share at which the shares trade and spreads the operating costs over a larger capital base, reducing the ongoing charges ratio.

Realisation Opportunity

As shareholders will be aware, the Company offered a realisation opportunity during the period, giving shareholders the option either to retain their investment in the Company or realise their investment by making a realisation election at a 1.6% discount to net asset value per share. By the deadline of 1 October 2018, elections had been received in respect of 434,197 ordinary shares or 1.55% of the shares in issue, and these shares were subsequently placed in the market into ongoing demand.  

New Benchmark Index

At the general meeting held just before the Annual General Meeting on 5 October 2018, shareholders approved a new Benchmark for the Company, the Sterling Overnight Index Average (known as “SONIA”) which, like LIBOR, is a Sterling Risk-Free Reference Rate (“RFR”), is the Bank of England’s choice to replace LIBOR and is increasingly being used as an alternative to LIBOR.

Outlook

Our investment manager continues to be well positioned to take advantage of opportunities as they arise. This is also being recognised by our industry, as the Company was recently announced the winner of the “Flexible Investment” award at the Investment Week Investment Company of the Year Awards 2018! These awards reward excellence in closed-ended fund management and highlight investment companies that produce consistent performance.  Your Board is of course delighted by this recognition by some of the UK’s leading researchers and investors. Like the awards’ judges, your Board believes that long-term investors will not be disappointed.

Richard Davidson
Chairman
20 December 2018

Investment Manager’s Report for the period ended 31 October 2018

Performance

The period under review witnessed a number of headwinds accumulating, most notably the threat of a trade war between the United States and China. Probably of greater importance was the increase in some market interest rates. The ten-year US treasury yielded 3.2% at the end of October. This is a meaningful figure given the backdrop of negligible rates over the last decade. Should this trend continue, it will represent a significant challenge to the long bull market which we have been enjoying since the global financial crisis a decade ago. Asset prices are predicated on very low interest rates. Throughout the period, commentators have been repeatedly proven wrong when calling for caution. However, we would nervously suggest that we are at last moving towards a new phase.

The net asset value fell from 276.4p to 270.4p during the six months under review. This represents a decline of 2.2%.  Our shares held up better than the portfolio declining 0.7%. In comparison, the FTSE All Share index fell 5.1% and the MSCI World Index (Sterling) rose 4.6% in capital terms. This dramatic divergence reflects the weakness of sterling which wilted under the weight of Brexit uncertainties. When expressed in dollars, the MSCI World Index was also weak falling 3.1%. Our focus on deeply discounted funds which have fallen off the radar is naturally defensive as, of course, was our tactically high cash position.

Property

Whilst counter intuitive, a key factor behind the portfolio’s resilience was our exposure to property. Our investments made progress having previously fallen out of favour. The sector trades in reference to conditions in London whereas our key focus lies elsewhere, notably on Berlin, Macau and Birmingham. Macau Property Opportunities has commenced an orderly wind down. In July it returned around a fifth of the value of its investments to shareholders at net asset value. This represented a useful uplift given the shares habitually trade on a wide discount. More recently, the 55 kilometre road bridge from Hong Kong to Macau has finally opened. This should provide a welcome boost to the Macanese property market. Real Estate Investors, a Birmingham property specialist, also trades at a deep discount. The outlook for the United Kingdom’s second city is much brighter than for the capital. The fund suffers from a surplus of unwanted legacy shares overhanging the market. Nevertheless, the yield is in excess of 6%, the dividend being financed purely from cash flow. Therefore, we are being paid whilst we wait for trading in Real Estate Investors to return to equilibrium. Our largest position, Phoenix Spree Deutschland, made more modest progress. Its open market price was depressed whilst Woodford Investment Management completed the sale of its 21% stake. We took advantage of this by adding to our position whilst the shares languished. Once the disposal was completed, Phoenix Spree recovered the lost ground.

Private Equity

Private Equity has been a significant and profitable theme for us. More recently we have been taking profits. The industry has been extraordinarily successful in raising capital from investors, much of which remains to be invested. This weight of money looking for a home has driven prices for transactions to elevated levels.  We are concerned that fresh investments made in this environment will prove not to be as profitable as those made in previous cycles. The risk is that whilst existing holdings continue to be sold into this bull market at premiums to net asset values, discounts for listed private equity trusts will widen to reflect these concerns. Pantheon, which had been one of our largest positions, was disposed of during the period. Conversely, we have retained Dunedin Enterprise which is in orderly realisation and therefore will not be forced to reinvest proceeds of any disposals at eye watering prices.

Other Contributors

Geiger Counter was another positive contributor. There is an old saying in the commodities industry which says that “the cure for low prices is low prices”. The spot market in uranium has been depressed since the nuclear accident at Fukushima in 2011. The price has remained below the cost of production and as a result capacity has steadily declined. Cameco, one of the world’s biggest producers of the metal, has shut major Canadian mines at Rabbit Lake and McArthur River. The company will now honour supply agreements through market purchases. Sentiment towards nuclear energy remains poor in Europe, however it remains a core energy strategy elsewhere in the world notably in China, India and the Middle East. Increasingly more uranium is burnt each year than mined. Once the market becomes under supplied, the price of uranium will be squeezed higher. Whilst there are plentiful deposits of uranium, the lead times to bring mothballed mines back into production are measured in years rather than months.

Detractors

Principal detractors included any exposure to small companies and emerging markets. Investors became increasingly cautious as the period progressed and this was reflected in a retreat towards the safety of larger companies which constitute the bulk of the indices. These are used to measure fund managers’ performance. This led to challenging conditions for smaller companies globally and accordingly trusts such as Artemis Alpha, Atlantis Japan, City Natural Resources and Downing Strategic suffered significant falls. Aversion to risk also caused sentiment towards emerging markets to deteriorate. Events in Turkey, Argentina and Venezuela triggered selling of emerging market ETFs. Disposals of their underlying assets led to indiscriminate selling of markets such as India, irrespective of fundamentals.

Sector Developments

The closed-ended sector continues to evolve. Not that many years ago, the vast bulk of investment trusts were equity funds. Today the majority of newly launched trusts invest in alternative asset classes where offering daily liquidity via an open-ended structure is not practical. A number of our existing holdings were acquired at a time when smaller trusts were being orphaned via the rapid consolidation of the traditional private client brokers into the major wealth management chains. These businesses have become too large to buy smaller and medium sized investment trusts as they cannot buy sufficient shares in the open market to allocate across their clients. This process is largely complete and those orphaned are already held within our portfolio. Looking forward, fresh opportunities are more likely to be found amongst the new breed.

Given that investors are used to trusts being equity funds they often treat published net asset values verbatim. This is because a portfolio owning equities can be accurately valued on a daily basis using the closing prices of the underlying positions. The valuation of alternatives is more subjective and over time a mismatch between the valuation methodology and the real-world value of the assets can develop. Our investments in residential property in Berlin have been a classic example of this phenomenon. Post the backlash against gentrification in the German capital, apartments that had escaped the dead hand of regulation were worth rather more than those which remained subject to tenant protections. At that point, the stated net asset value failed to reflect the level at which assets could be disposed at.

One of our Berlin investments, Taliesin, was acquired last year by Blackstone at a significant premium to its stated net asset value. A similar position developed during the period under review. Phaunos Timber’s net asset value was stale as valuations of its plantations were only made periodically and accordingly failed to reflect the increasing value of its New Zealand assets post the Chinese banning of felling natural timber. Phaunos was acquired by Stafford Timber at a useful premium to its April carrying value.

Outlook

Since the half year-end, bond yields have retreated sharply. This move seems to have rattled markets just as much as the earlier rise.

It is encouraging to see the healthy pipeline of new closed-ended issues. Recent newcomers include asset classes such as; Fintech, Battery Storage, Cuban Property, Leveraged Loans, Shipping and Music Royalties. The specialist nature of the funds combined with the generalist nature of the audience provides the scope for future mispricing opportunities.

A further development which highlights the rude health of the closed end sector is the increased ownership by platforms such as Hargreaves Lansdowne, AJ Bell and Transact. Many of the underlying owners will be self-directed investors. A number of periodicals which are popular with this type of reader regularly recommend trusts. They recognise that protection from inflows and outflows allows a fund manager to build conviction within their portfolios, safe in the knowledge that they can retain their investments until the moment in time they judge correct to sell. This luxury is not accorded to managers of open ended funds who may be forced into the market at any time to sell positions to meet redemptions. This explains why closed-ended funds regularly outperform their open-ended peers. Academic research from the Cass business school recently highlighted this phenomenon. The self-directed investor does not need to buy a substantial number of shares and therefore can more easily access trusts than the wealth management chains. They represent a welcome new source of demand.

Nick Greenwood
Charlotte Cuthbertson
Miton Asset Management Limited
20 December 2018

Portfolio Valuation as at 31 October 2018

	Valuation £’000	% of portfolio
Phoenix Spree Deutschland	5,478	8.2
India Capital Growth Fund	4,034	6.1
Alpha Real Trust	3,544	5.3
Macau Property Opportunities Fund â€	3,538	5.3
Baker Steel Resources Trust	3,143	4.7
Artemis Alpha Trust	3,127	4.7
Real Estate Investors *	3,021	4.5
Atlantis Japan Growth Fund	2,964	4.4
Dunedin Enterprise Investment Trust â€	2,813	4.2
Vinacapital Vietnam Opportunity Fund	2,613	3.9
Top 10 Investments	34,275	51.3
Rights and Issues Investment Trust	2,586	3.9
New Star Investment Trust	2,475	3.7
Ecofin Global Utilities and Infrastructure Trust	2,411	3.6
Henderson Opportunities Trust	2,237	3.4
Establishment Investment Trust	2,231	3.3
EPE Special Opportunities*	2,130	3.2
Stenprop	1,853	2.8
Geiger Counter *^	1,892	2.8
City Natural Resources High Yield Trust	1,736	2.6
Aurora Investment Trust	1,579	2.4
Top 20 Investments	55,405	83.0
Marwyn Value Investors	1,309	2.0
IP Japan Z (OEIC)	1,152	1.7
Standard Life Private Equity Trust	1,054	1.6
Life Settlement Assets	846	1.3
Biotech Growth Trust	841	1.3
Aseana Properties â€	828	1.2
RENN Universal Growth Investment Trust † (Unquoted)	816	1.2
Prospect Co	680	1.0
Downing Strategic Micro-Cap Investment Trust	623	0.9
Gresham House Strategic	622	0.9
Top 30 Investments	64,176	96.1
LMS Capital	460	0.7
Chelverton Growth Trust	339	0.5
Origo Partners *†#	338	0.5
Better Capital PCC 2009 â€	328	0.5
Cambium Global Timberland *â€	325	0.5
Terra Catalyst Fund † (Unquoted)	320	0.5
Reconstruction Capital II *â€	222	0.3
Duke Royalty *	109	0.1
St Peter Port Capital *â€	60	0.1
Auctus Growth	44	0.1
Top 40 investments	66,721	99.9
New City Energy † (Unquoted)	41	0.1
Global Resources Investment Trust	10	0.0
Middlefield Canadian Income PCC (Preference shares)	1	0.0
Total investments in the portfolio (excluding cash)	66,773	100.0

* AIM/NEX listed.
† In liquidation, in a process of realisation or has a fixed life.
^ Includes both ordinary and subscription share holdings.
# Includes both ordinary and convertible preference share holdings.

Capital Structure

At a General Meeting of the Company held on 9 September 2015, shareholders approved proposals to remove the requirement for future continuation votes in the Company’s Articles of Association and instead include provisions enabling shareholders to elect, in 2018 and then at three year intervals, for the realisation of all or part of their shareholding.

In the run-up to the 2018 realisation opportunity, the Directors decided to put forward for shareholder approval a proposal to change the Articles of the Company, so that the form of the realisation opportunity could be amended to provide the Company with additional flexibility while still providing shareholders the opportunity to exit at a price close to NAV.

As such in October 2018, shareholders were given a realisation opportunity for their shares and the Company received realisation elections in respect of a total of 434,197 ordinary shares or 1.55% of the Company’s issued share capital.  The elected shares were placed in the market by the Company’s brokers at a 1.6% discount to NAV. The next realisation opportunity will be given to shareholders in 2021.

As at 31 October 2018, and the date of this report, there were 28,004,985 Ordinary shares in issue.

Interim Management Report

Principal Risks and Uncertainties

The principal risks and uncertainties facing the Company were explained in detail in the annual report for the year ended 30 April 2018. The Directors are not aware of any new risks or uncertainties for the Company and its investors for the period under review and moving forward, beyond those stated within the Annual Report.

The Board acknowledges the continued uncertainty surrounding the UK’s decision to leave the EU. While the vast majority of the Company’s investments are listed in the UK, for a significant number of investments their underlying assets are outside the UK and their sterling valuations may be impacted once the UK’s future relationship with the EU and the rest of the World becomes clearer.

There has been a considerable level of currency volatility, with sterling weakening significantly against other major currencies, since the decision to leave was taken. This has had a positive impact on the valuation of the investments, as many of the portfolio’s underlying assets are outside the UK. If this volatility were to continue this could have a material impact on the Company’s performance. The Company does not currently hedge its currency exposure.

Related Parties Transactions

During the first six months of the current financial year, no transactions with related parties have taken place which have materially affected the financial position or the performance of the Company.

Going Concern

The Directors believe, having considered the Company’s investment objective, risk management policies, capital management policies and procedures, the nature of the portfolio and expenditure projections, that the Company has adequate resources, an appropriate financial structure and suitable management arrangements in place to continue in operational existence for the foreseeable future and, more specifically, that there are no material uncertainties pertaining to the Company that would prevent its ability to continue in such operational existence for at least twelve months from the date of the approval of this half year report. For these reasons, the Directors consider there is reasonable evidence to continue to adopt the going concern basis in preparing the Half-Yearly Report.

Directors Responsibility Statement

The Board of Directors confirms that, to the best of its knowledge:

1. the condensed set of financial statements contained within the Half Year Report has been prepared in accordance with Financial Reporting Standard 104 (Interim Financial Reporting); and
2. the interim management report includes a fair review of the information required by:
   1. DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and
   2. DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the entity during that period; and any changes in the related party transactions described in the last annual report that could do so.

The Half Year Report has not been reviewed or audited by the Company’s auditor.

For and on behalf of the Board

Richard Davidson

Chairman

20 December 2018

Condensed Income Statement

Six months to 31 October 2018 (Unaudited)					Six months to 31 October 2017 (Unaudited)			Year ended 30 April 2018 (Audited)
Note		Revenue £’000	Capital £’000	Total £’000	Revenue £’000	Capital £’000	Total £’000	Revenue £’000	Capital £’000	Total £’000
(Loss) / gains on investments		-	(1,583)	(1,583)	-	6,089	6,089	-	6,882	6,882
Income	4	647	-	647	471	-	471	1,146	-	1,146
Management fee		(253)	-	(253)	(212)	-	(212)	(454)	-	(454)
Other expenses		(506)	-	(506)	(278)	-	(278)	(610)	-	(610)
(Loss) / Return before finance costs and taxation		(112)	(1,583)	(1,695)	(19)	6,089	6,070	82	6,882	6,964
Finance costs		(52)	-	(52)	(35)	-	(35)	(77)	-	(77)
(Loss) / Return before taxation		(164)	(1,583)	(1,747)	(54)	6,089	6,035	5	6,882	6,887
Taxation		12	-	12	-	-	-	(12)	-	(12)
(Loss) / Return after taxation		(152)	(1,583)	(1,735)	(54)	6,089	6,035	(7)	6,882	6,875
(Loss) / Return per Ordinary share		(0.6p)	(5.7p)	(6.3p)	(0.2p)	24.0p	23.8p	(0.0p)	26.4p	26.4p

The revenue loss, capital and total returns per Ordinary share are based on 27,551,046 shares, being the weighted average number of Ordinary shares in issue during the period (31 October 2017: 25,309,279 and 30 April 2018: 26,018,987).

The Total column of this statement is the Income Statement of the Company. The supplementary revenue and capital columns have been prepared in accordance with guidance issued by the AIC.

All revenue and capital items in the above statement derive from continuing operations. There are no recognised gains or losses other than those passing through the Income Statement and therefore no Statement of Total Comprehensive Income has been presented.

The notes form an integral part of these financial statements.

Condensed Statement of Changes in Equity

	Share Capital £’000	Capital Redemption reserve £’000	Share Premium account £’000	Special reserve £’000	Capital reserve £’000	Revenue reserve £’000	Total £’000
Six months to 31 October 2018 (Unaudited)
At 30 April 2018	272	60	22,139	10,008	43,366	(661)	75,184
New issue of shares during the period	8	-	2,255	-	-	-	2,263
Loss for the period	-	-	-	-	(1,583)	(152)	(1,735)
Balance at 31 October 2018	280	60	24,394	10,008	41,783	(813)	75,712
Six months to 31 October 2017 (Unaudited)
At 30 April 2017	252	60	16,727	10,008	36,484	(654)	62,877
New issue of shares during the period	6	-	1,323	-	-	-	1,329
Return/(loss) for the period	-	-	-	-	6,089	(54)	6,035
Balance at 31 October 2017	258	60	18,050	10,008	42,573	(708)	70,241
Year ended 30 April 2018 (Audited)
At 30 April 2017	252	60	16,727	10,008	36,484	(654)	62,877
New issue of shares during the year	20	-	5,412	-	-	-	5,432
Return/(loss) for the period	-	-	-	-	6,882	(7)	6,875
Balance at 30 April 2018	272	60	22,139	10,008	43,366	(661)	75,184

The notes form an integral part of these financial statements.

Condensed Statement of Financial Position

	As at 31 October 2018 (Unaudited) £’000	As at 31 October 2017 (Unaudited) £’000	As at 30 April 2018 (Audited) £’000
Non-current assets
Investments	66,773	73,030	70,756
Current assets
Debtors	341	116	203
Cash	14,074	2,244	9,591
	14,415	2,360	9,794
Creditors: amounts falling due within one year
Bank loan	(5,000)	(5,000)	(5,000)
Other creditors	(476)	(149)	(366)
	(5,476)	(5,149)	(5,366)
Net current assets / (liabilities)	8,939	(2,789)	4,428
Net assets	75,712	70,241	75,184
Share capital and reserves
Share capital	280	258	272
Capital redemption reserve	60	60	60
Share premium account	24,394	18,050	22,139
Special reserve	10,008	10,008	10,008
Capital reserve	41,783	42,573	43,366
Revenue reserve	(813)	(708)	(661)
Total shareholders’ funds	75,712	70,241	75,184
Net asset value per Ordinary share	270.4p	272.6p	276.4p

The net asset value per Ordinary share is based on 28,004,985 shares, being the shares in issue as at 31 October 2018 (31 October 2017: 25,764,985 and 30 April 2018: 27,204,985).

The notes form an integral part of these financial statements.

Condensed Cash Flow Statement

	Six months to  31 October 2018 (Unaudited) £’000	Six months to 31 October 2017 (Unaudited) £’000	Year ended 30 April 2018 (Audited) £’000
Net cash inflow / (outflow) from operating activities	244	(19)	(67)
Investing Activities
Purchases of investments	(8,526)	(11,202)	(24,151)
Sales of investments	10,554	8,365	24,663
Net cash inflow / (outflow) from investing activities	2,028	(2,837)	512
Financing Activities
New issue of shares	2,263	1,329	5,432
Finance costs paid	(52)	(35)	(92)
Net cash inflow from financing activities	2,211	1,294	5,340
Increase / (decrease) in cash	4,483	(1,562)	5,785
Cash at beginning of period	9,591	3,806	3,806
Cash at end of period	14,074	2,244	9,591

The notes form an integral part of these financial statements.

Notes to the Condensed Interim Financial Statements

1.Accounting policies

These condensed financial statements have been prepared on a going concern basis in accordance with the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority, FRS 104 ‘Interim Financial Reporting’, the Statement of Recommended Practice ‘Financial Statements of Investment Trust Companies and Venture Capital Trusts’ updated in February 2018 and using the same accounting policies as set out in the Company’s Annual Report for the year ended 30 April 2018.

2.Financial statements

The condensed financial statements contained in this interim financial report do not constitute statutory accounts as defined in s434 of the Companies Act 2006. The financial information for the six months to 31 October 2018 has not been audited or reviewed by the Company’s external auditors.

The information for the year ended 30 April 2018 has been extracted from the latest published audited financial statements. Those statutory financial statements have been filed with the Registrar of Companies and included the report of the auditors, which was unqualified and did not contain a statement under Sections 498(2) or (3) of the Companies Act 2006.

3.Going concern

After making enquiries, and having reviewed the investments, Statement of Financial Position and projected income and expenditure for the next 12 months, the Directors have a reasonable expectation that the Company has adequate resources to continue in operation for the foreseeable future. The Directors have therefore adopted the going concern basis in preparing these financial statements.

4.Income

	Six months to 31 October 2018 £’000	Six months to 31 October 2017 £’000	Year ended 30 April 2018 £’000
Income from investments
UK dividend income	392	230	579
Overseas dividend income	205	241	480
Property dividend income	50	-	87
Total income	647	471	1,146

5.Fair value hierarchy

The methods of fair value measurement are classified into a hierarchy based on reliability of the information used to determine the valuation.

Level 1 –	Quoted prices in an active market.
Level 2 –	Inputs other than quoted prices included within Level 1 that are observable (i.e. developed using market data), either directly or indirectly.
Level 3 –	Inputs are unobservable (i.e. for which market data is unavailable)

The table below sets out the Company’s fair value hierarchy investments.

	Level 1 £’000	Level 2 £’000	Level 3 £’000	Total £’000
As at 31 October 2018
Investments – Equities	64,444	-	1,177	65,621
Investments – OEICs	-	1,152	-	1,152
Total	64,444	1,152	1,177	66,773
As at 31 October 2017
Investments – Equities	71,019	-	1,266	72,285
Investments – OEICs	-	745	-	745
Total	71,019	745	1,266	73,030
As at 30 April 2018
Investments – Equities	67,740	-	1,857	69,597
Investments – OEICs	-	1,159	-	1,159
Total	67,740	1,159	1,857	70,756

Glossary of Terms and Alternative Performance Measures (“APMs”)

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Discount or Premium (APM)

A description of the difference between the share price and the net asset value per share. The size of the discount or premium is calculated by subtracting the share price from the net asset value per share and is usually expressed as a percentage (%) of the net asset value per share. If the share price is higher than the net asset value per share, the result is a premium. If the share price is lower than the net asset value per share, the shares are trading at a discount.

Gearing/ Net Cash

Gearing amplifies the impact of gains or losses on the net asset value of the Company. It can be positive for a company’s performance, although it can have negative effects on performance in falling markets. It is the Company’s policy to determine the adequate level of gearing appropriate to its own risk profile.

Where the company holds cash in excess of its gearing, the net cash percentage will be disclosed rather than showing negative gearing.

Gearing/ Net Cash is calculated as follows: The amount of net cash or net borrowings as a proportion of net assets, expressed as a percentage.

NAV Total Return (APM)

The theoretical total return on shareholders’ funds per share, reflecting the change in NAV if dividends paid to shareholders were reinvested at NAV at the time the shares were quoted ex-dividend. A way of measuring investment management performance of investment trusts which is not affected by movements in discounts/premiums.

Ongoing Charges (APM)

Ongoing charges are calculated by taking the Company’s annualised ongoing charges, excluding finance costs, taxation, performance fees and exceptional items, and expressing them as a percentage of the average daily net asset value of the Company over the year.

	Six months to	Six months to	One year to
	31 October	31 October	30 April
	2018	2017	2018
	£’000	£’000	£’000
Management fee	253	212	454
Other expenses	506	278	610
Total Expenses	759	490	1,064
Less non-recurring expenses	(227)	(24)	(49)
Total Ongoing charges	532	466	1,015
Average net assets	76,604	66,144	70,107
Ongoing Charges (annualised)	1.4%	1.4%	1.4%

Share Price Total Return (APM)

Return to the investor on mid-market prices assuming that all dividends paid were reinvested.

Shareholder Information

Share dealing

Shares can be traded through a stockbroker or other authorised intermediary. The Company’s Ordinary shares are traded on the London Stock Exchange. The Company’s shares are fully qualifying investments for Individual Savings Accounts (“ISAs”).

Share register enquires

The register for the Ordinary shares is maintained by Link Asset Services. In the event of queries regarding your holding, please contact the Registrar on 0871 664 0300 (calls cost 12p per minute plus network extras; lines are open 9.00am to 5.30pm, Monday to Friday) (from outside the UK: [phone]) or email: [e-mail]. Changes of name and/or address must be notified in writing to the Registrar: Shareholder Services, Link Asset Services, The Registry, 34 Beckenham Road, Beckenham, Kent BR3 4TU, or via the shareholder portal at www.signalshares.com.

Share capital and net asset value information

SEDOL number	3436594
ISIN number	GB0034365949
Bloomberg symbol	MIGO

The Company releases its net asset value per Ordinary share to the London Stock Exchange on a daily basis.

Website: www.mitongroup.com/private/fund/miton-global-opportunities-plc/

Share prices

The mid-market prices are quoted daily in the Financial Times under ‘Investment Companies’.

Annual and Half-Yearly Reports

Copies of the Annual and Half-Yearly Reports are available from the Company Secretary and on the Company’s website.

Investment Manager: Miton Asset Management Limited

The Company’s Investment Manager is Miton Asset Management Limited, a wholly owned subsidiary of Miton Group plc. Miton Group is listed on the AIM market for smaller and growing companies.

As at 30 September 2018, the last possible date before publication, the Group had £4.9 billion of assets under management.

Investor updates in the form of monthly factsheets are available from the Company’s website, www.mitongroup.com/private/fund/miton-global-opportunities-plc/.

Association of Investment Companies

The Company is a member of the Association of Investment Companies.

Directors and Advisers

Directors (all non-executive)	Registrar
Richard Davidson (Chairman) Michael Phillips Katya Thomson Hugh van Cutsem Registered Office 6th Floor Paternoster House 65 St. Paul's Churchyard London, EC4M 8AB	Link Asset Services The Registry 34 Beckenham Road Beckenham Kent BR3 4TU Tel: [phone]* Fax: [phone] Email: [e-mail] Website: www.linkassetservices.com *Calls cost 12p per minute plus your phone company’s access charge and may be recorded for training purposes.  Calls outside the UK will be charged at the applicable international rate.  Lines are open from 9.00 a.m. to 5.30 p.m. Monday to Friday excluding public holidays in England and Wales.
Company Secretary, Marketing & Administration	Stockbroker and Financial Adviser
Frostrow Capital LLP 25 Southampton Buildings London WC2A 1AL Website: www.frostrow.com	Numis Securities Limited The London Stock Exchange Building 10 Paternoster Square London EC4M 7LT
Alternative Investment Fund Manager	Depositary and Custodian
Miton Trust Managers Limited Paternoster House 65 St Paul’s Churchyard London EC4M 8AB	The Bank of New York Mellon (International) Limited One Canada Square London E14 5AL
Investment Manager
Miton Asset Management Limited Paternoster House 65 St Paul’s Churchyard London EC4M 8AB Website: www.mitongroup.com Tel: [phone]
Independent Auditor
PricewaterhouseCoopers LLP 2 Glass Wharf Bristol BS2 0FR
Miton Global Opportunities plc An investment company as defined under Section 833 of the Companies Act 2006 Registered in England and Wales No.5020752

END

Neither the contents of the Company’s website nor the contents of any website accessible from hyperlinks on this announcement (or any other website) is incorporated into, or forms part of, this announcement.