Interim Management Statement

RNS Number : 5756Y

British Assets Trust PLC

27 January 2014

 



British Assets Trust plc

Interim Management Statement

For the Period from 1 October 2013 to 27January 2014   

Investment Objective

British Assets Trust plc aims to achieve a total return in excess of a composite index, weighted as to 80 per cent FTSE All-Share Index and 20 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 deliver dividend growth 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 Return		Three months to  31/12/13
Net asset value1		5.4%
Composite index2		5.4%
Capital Values	As at  31/12/13	As at 30/09/13
Net asset valueper share3	150.7p	144.5p
Share price (mid market)	140.0p	132.0p
Discount  - Basic4  - Debt adjusted5  - Debt adjusted6	7.1% 5.2% 3.3%	8.7% 6.3% 3.9%
Gearing  - Net of cash7  - Equity gearing8	14.5% 3.1%	16.7% 3.9%

Sources: F&C Investment Business Limited, Datastream.

1          Net asset value total return is calculated as the total return attributable to an Ordinary Share. It assumes that dividends paid to shareholders are re-invested in the net asset value.

2          Composite index of 80 per cent FTSE All-Share Index and 20 per cent FTSE World (ex UK) Index

3          Prepared in accordance with UK GAAP

4          Net asset value (UK GAAP) with debt at par

5          Net asset value (UK GAAP) adjusted to reflect market value of debt

6          Net asset value (non-UK GAAP, ex-income NAV) adjusted to reflect market value of debt

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

8          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 31 December 2013 was 5.4%, matching the return from the composite benchmark index of 80% FTSE All-Share Index and 20% FTSE World (ex UK) Index.

This was a positive quarter for equities. In the US, the first Government shutdown since 1996 was treated as little more than a minor irritant. When the Federal Reserve tapering finally arrived with the announcement of a circa $10 billion per month reduction in the pace of asset purchases, the announcement everyone claimed to have been fearing, actually acted as the trigger for the year-end rally.

Economic data was positive overall, despite a slowdown in European lead indicators in October and November. Indicators in December were stronger and the data from the US and in particular the UK was generally bullish.

Emerging markets continued to remain sensitive to economic data releases and newsflow from the US. Economic newsflow continued to remain mixed across some of the key emerging markets with growth expectations continuing to moderate in countries such as Brazil, India and China.

Top Ten Holdings as at 31/12/13

Company	Country	% of total assets
HSBC Holdings	UK		4.5
GlaxoSmithKline	UK		4.2
BP	UK		3.9
BHP Billiton	UK		3.2
Vodafone	UK		3.0
BAE Systems	UK		2.7
Rio Tinto	UK		2.6
Prudential	UK		2.5
Barclays	UK		2.4
Royal Dutch Shell	UK		2.1
Total			31.1

Geographical Analysis as at 31/12/13

			%of total assets
UK Equities				66.4
International Developed Equities				13.5
Emerging Markets Equities				7.3
Corporate Bonds				9.7
Net Current Assets				3.1
Total				100.0

Dividends

A third quarterly interim dividend of 1.4853p per share in respect of the year ended 30 September 2013 was paid on 11 October 2013.

Subsequent Events

The Board is not aware of any significant events or transactions which have occurred since 31 December 2013 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.

For further information please contact:

Phil Doel/Gordon Hay Smith

F&C Investment Business Limited

Tel: [phone]

 

END

 

 

IMSPGUWUGUPCGPM