Interim Management Statement

RNS Number : 0805W

British Assets Trust PLC

22 July 2009

 

British Assets Trust plc

Interim Management Statement

For the Three Month Period 1 April 2009 to 30 June 2009

Investment Objective

British Assets Trust plc aims to achieve a total return in excess of a composite index, weighted as to 75 per cent FTSE All-Share Index and 25 per cent FTSE World (ex UK) Index, by investing principally in a diversified international portfolio of equities and equity-related securities.  Within this overall objective, the Company aims to maintain a progressive dividend policy which will be dependent upon, inter alia, the rate of revenue growth within the investment portfolio, and the level of dividend cover. 

Performance Summary

Total Return1		Three months to 30/06/09
Net asset value		+14.2%
Composite Index2		+9.6%
Capital Values	As at  30/06/09	As at  31/03/09
Net asset value	99.1p	88.3p
Share price (mid market)	92.5p	84.0p
Discount   - Basic  - Debt adjusted	6.7% 5.3%	4.9% 2.0%
Gearing  - Net of cash3  - Equity gearing 4	23.5% 8.2%	26.9% 11.1%

Sources: F&C Investment Business Limited, Datastream.

1      All total returns are based on net dividends re-invested

2      Composite Index of 75 per cent FTSE All-Share Index and 25 per cent FTSE World (ex UK) Index

3      Gearing net of cash: (investments/shareholders' funds)/shareholders' funds

⁴      Equity gearing: (equity investments/shareholders' funds)/shareholders' funds

Review for the Period

The Company's net asset value total return for the three months ended 30 June 2009 was 14.2%. This compares favourably with a return of 9.6% from the composite benchmark index of 75% FTSE All-Share Index and 25% FTSE World (ex UK) Index. Asset allocation, in particular the Company's exposure to emerging markets, contributed to the outperformance. Gearing was also beneficial in a rising market. 

Global stockmarkets rallied during the period as investors became increasingly optimistic that the worst of the economic downturn was over. Emerging markets, with their strong internal growth dynamics, fared better than developed markets. However, the recovery in sterling during the period, particularly versus the dollar and the yen, reduced the returns from overseas markets. Cyclical sectors outperformed across all markets with strong performances in particular from autos, metals and financials. 

  Dividends

A first interim dividend in respect of the year ended 30 September 2009, of 1.442p per share, was paid on 9 April 2009.

Share Buy Backs

There were no share buy backs during the period. 

Top Ten Holdings as at 30/06/09

Company	Country	% of total assets
BP	UK		5.7
HSBC Holdings	UK		4.3
GlaxoSmithkline	UK		3.6
Royal Dutch Shell	UK		3.5
Vodafone Group	UK		3.2
Scottish and Southern Energy	UK		2.6
British American Tobacco	UK		2.3
AstraZeneca	UK		2.3
Rio Tinto	UK		1.8
Tesco	UK		1.7
Total			31.0

Geographical Analysis as at 30/06/09

			%of total assets
UK				57.6
Global Developed (ex UK)				14.9
Emerging Markets				11.9
Corporate Bonds				12.0
Net Current Assets				3.6
Total				100.0

The Board is not aware of any significant events or transactions which have occurred since 30 June 2009 and the date of publication of this statement which would have a material impact on the financial position of the Company.

Daily and Key Information

This statement and further information regarding the Company, including daily net asset values published since the end of the period and monthly factsheets, can be found at the Company's website www.british-assets.co.uk, or at www.fandc.com.

This Interim Management Statement has been prepared solely to provide information to meet the requirements of the UK Listing Authority's Disclosure and Transparency Rules.

For further information please contact:

Julie Dent/Gordon Hay Smith

F&C Investment Business Limited

Tel: [phone]

 

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