Interim Management Statement

RNS Number : 3421T

F&C Managed Portfolio Trust PLC

27 September 2010

 



To:      RNS

Date:  27 September 2010

From: F&C Managed Portfolio Trust plc

Interim Management Statement

For the quarter ended 31 August 2010

Company summary

The Company invests in a selection of listed investment companies that have underlying exposure across a range of geographic regions and sectors. This assists in diversifying the overall portfolio investment risk.

The Company's investments are managed in two separate portfolios; the Income Portfolio and the Growth Portfolio, to which the Income shares and the Growth shares are respectively entitled.  

Investment objective

Income Portfolio

The objective for the Income Portfolio is to provide shareholders with an attractive level of income together with the potential for income and capital growth from a diversified portfolio of investment company shares.

Growth Portfolio

The objective for the Growth Portfolio is to provide shareholders with capital growth from a diversified portfolio of investment company shares.

The benchmark index for both the Income Portfolio and the Growth Portfolio is the FTSE All-Share Index.

Performance summary

	Capital return				Total return 1
	As at 31 August 2010	As at 31 May 2010	Movement %		Qtr end 31 August 2010	Since launch 2 %
Income shares
Total net assets	£19.5m	£18.6m	+4.5%
NAV per share	88.40p	86.81p	+1.8%		+3.5%	+1.5%
Share price	91.0p	89.5p	+1.7%		+3.4%	+2.5%
Premium	2.9%	3.1%	n/a
Growth shares
Total net assets	£16.0m	£15.1m	+6.6%
NAV per share	86.43p	86.70p	-0.3%		-0.3%	-11.8%
Share price	89.0p	87.0p	+2.3%		+2.3%	-11.0%
Premium	3.0%	0.3%	n/a
FTSE All-Share Index Total return					+1.7%	-3.9%

Source: F&C Investment Business Limited, Datastream.

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

² The Company was launched on 16 April 2008.

Review of the period 

One of the features of performance over the three months to 31 August 2010 has been the strength of UK equities (FTSE All Share Index +1.7%) relative to that of global equities

(FTSE World Index ex UK -5.1%) both figures are in sterling and are total return.

Typically the scenario of strengthening sterling and UK equities doing much better than world equities often leads to relative underperformance of the investment company sector (FTSE Equity Investment Instruments Index +1.0% in total returns terms) due to their overseas bias. However the underperformance was only marginal.  It appears that the average sector discount has tightened over the past three months from 9.9% to 8.4% which has clearly offset the trends mentioned earlier. The main elements behind the narrower discounts lie in the large UK Growth & Income, Global Growth & Income and UK High Income sectors. Following the BP dividend cut there has been a focus from investors on dividends and their sustainability. In this regard this is where investment companies and revenue reserves come into their own when compared with open ended counterparts. Those trusts with revenue reserves and have Boards who are minded to use them, have experienced a tightening of discounts.

In general terms this will also have been a factor behind the relative performance of the Income and Growth Portfolios over the quarter, with the former doing notably better than the latter.

Dividends

A fourth interim dividend of 1.4 pence per Income share, in respect of the year to 31 May 2010, was paid on 9 July 2010.  For the full financial year to 31 May 2010, total dividends of 4.4p per Income share were at the same annualised rate as in the previous 13½ month financial period to 31 May 2009.

On 13 September 2010, a first interim dividend of 1.0 pence per Income share was declared in respect of the financial year to 31 May 2011.  This dividend is payable on 8 October 2010.

Share buy backs and issues

During the quarter to 31 August 2010, the Company sold, from treasury, 427,000 Income shares, receiving net proceeds of £374,000 and 1,200,000 Growth shares for net proceeds of £1,076,000.  In addition the Company issued 125,000 Income shares from its block listing facility receiving net proceeds of £114,000.

At 31 August 2010, the Company held nil Income shares and 560,000 Growth shares in treasury.  The total number of shares in issue with voting rights at 31 August 2010 was 22,032,192 Income shares and 18,560,567 Growth shares.

Since the end of the quarter, the Company has sold 200,000 Growth shares from treasury.

Top Ten Holdings at 31 August 2010

Income Portfolio

31 August 2010	31 May 2010	Company	% of total assets of Income Portfolio
1	1	British Assets Trust	6.0
2	2	Murray International Trust	5.6
3	3	Aberdeen Asian Income Fund	4.6
4	4	Law Debenture Corporation	4.6
5	5	European Assets Trust	4.2
6	7	Schroder Oriental Income Fund	4.0
7	6	Perpetual Income & Growth Investment Trust	4.0
8	11	City of London Investment Trust	3.9
9	16	Invesco Leveraged High Yield Investment Trust	3.8
10	9	Henderson Far East Income	3.8
			44.5

Growth Portfolio

31 August 2010	31 May 2010	Company	% of total assets of Growth Portfolio
1	1	British Empire Securities & General Trust	5.2
2	2	Templeton Emerging Markets Investment Trust	5.1
3	3	Perpetual Income & Growth Investment Trust	4.9
4	4	The Mercantile Investment Trust	4.3
5	5	TR Property Investment Trust - Ordinary shares	4.0
6	7	Monks Investment Trust	3.7
7	15	Murray International Trust	3.6
8	6	BlackRock World Mining	3.6
9	9	Pacific Assets Trust	3.4
10	11	Edinburgh Dragon Trust	3.4
			41.2

During the period the Company secured a borrowing facility from its custodian JPMorgan Chase Bank. The facility allows up to 10% of the Company's value to be borrowed.  Since the end of the quarter, the Board has authorised the drawdown and investment of part of the facility in the Income Portfolio.

The Board is not aware of any significant events or transactions that have occurred between 31 August 2010 and the date of publication of this statement that would have a material impact on the financial position of the Company.

Daily and key information

Further information regarding the Company, including daily net asset values published since the end of the period and monthly factsheets, can be found on the Company's website at www.fcmanagedportfolio.co.uk or on the website 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:

Ian Ridge,

For F&C Investment Business Limited, Company Secretary Tel: [phone]

 

END

 

 

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