Annual Financial Report
Martin Currie Global Portfolio Trust plc (the "Company")
Legal Entity Identifier: 549300RKB85NFVSTBM94
Annual Financial Results - Year to 31 January 2020
The financial information set out below does not constitute the Company's statutory accounts for the years ended 31 January 2020 or 2019 but is derived from those accounts. Statutory accounts for 2019 have been delivered to the Registrar of Companies and those for 2020 will be delivered following the Company's annual general meeting.
The auditor has reported on those accounts; their report was unqualified. The auditor drew attention to Covid-19 as a post balance sheet event matter of emphasis, without qualifying their report and did not contain statements under s498(2) or (3) Companies Act 2006.
The unedited full text of those parts of the annual report and accounts for the year ended 31 January 2020, which require to be published are set out on the following pages.
The annual general meeting of the Company will be held on 23 July 2020. The notice of meeting will shortly be issued to shareholders and a copy will also be put on the Company's website ( www.martincurrieglobal.com ).
A copy of the full annual report and accounts will be submitted to the National Storage Mechanism when published and will be available for inspection.
Financial
Total returns***
|
|
Year ended 31 January 2020 |
Year ended 31 January 2019 |
|
Net asset value per share* |
24.6% |
1.6% |
|
Benchmark |
17.1% |
0.9% |
|
Share price |
30.4% |
(0.3%) |
Source: Martin Currie Investment Management.
* The net asset value per share total return is calculated using the cum income net asset value with dividends reinvested. This is an Alternative Performance Measure.
** The benchmark is the FTSE World Index.
*** The combined effect of the rise and fall in the share price, net asset value or benchmark together with any dividend paid.
Chairman's Statement
Welcome to your annual report for the 12 months ending 31 January 2020. The global markets are currently dominated by the effects of the Covid-19 pandemic bringing a shock to global economic growth of unprecedented speed and magnitude and producing both a sharp sell off in the markets and a period of exceptionally high volatility in share prices. The Company has weathered this storm relatively well so far and has continued to outperform its benchmark as is explained later in this statement and in the Manager's review on pages 4 to 8.
In contrast, in the last year the global equity markets ended the reporting period at a high point with a 17.1% total return reflecting steady global growth combined with low interest rates and, towards the end of the period, some reduction in domestic and international uncertainties such as Brexit, international trade and Middle East tensions. Against this favourable background, the Company delivered an exceptionally strong result for the year with a 30.4% share price return outperforming the benchmark by 13.3%. Over the last three years the share price return has been 46.1%, outperforming the benchmark by 12.9%. This performance was the highest in the global AIC sector for the year and in the top half for the last three years.
The portfolio manager, Zehrid Osmani, brings a distinctive energy and high conviction investing in a concentrated portfolio of high quality growth stocks with long-term capital strengths and a sustained strong return on invested capital selected from the best of the world's markets backed up by the deep research embedded in Martin Currie's investment approach. This is not expected to change following the recent agreement that Franklin Resources (Templeton) will buy Legg Mason (see page 18 for further details). More detail of the markets, portfolio performance and his approach to managing the portfolio is given in Zehrid's report on pages 4 to 8.
Capital and dividends
During the period the Company both issued and bought back shares under its 'zero discount' policy at a net cost of £0.5m. The increased demand for our shares is welcome and reflects the sustained good performance. Although performance has benefited from the absence of gearing so far this year, in a low cost debt environment, and with the right longer-term market outlook, gearing could help enhance earnings. The possibility of a modest level of structural gearing therefore remains under consideration by the Board.
Income per share reduced by 1.0p per share to 2.5p per share largely due to the completion of the move towards capital growth across the portfolio as a whole. The fourth interim dividend of 1.5p will be paid on 30 April 2020 to shareholders on the register at 14 April 2020 making a total dividend for the year of 4.20p, in line with last year's payment. Although the dividend has again not been fully covered by the year's income the revenue and special distributable reserves provide ample cover for the dividend.
Low costs
Once more, costs have been successfully controlled and ongoing charges * have reduced from 0.63% to 0.61% of NAV using the Association of Investment Companies ('AIC') methodology. The significant outperformance of the NAV capital return benchmark of 9.1%. has generated a performance fee of £2.1m for the year making a total performance fee payable for the two years ending 31 January 2020 of £2.5m. Details of the performance fee calculation are on pages 18 and 19.
The Board
Following the conclusion of the AGM in July 2019, Mike Balfour retired after nine years of service during which he was both audit committee Chairman and Senior Independent Director. The Board wishes to express its gratitude to Mike for his service to the Company. He was succeeded by Gillian Watson as Senior Independent Director. Christopher Metcalfe, who brings a wealth of investment management experience, joined the Board in September.
Environmental, social and corporate governance issues
The investment manager is among the few rated at the highest level of A+ by the UN-supported Principles for Responsible Investment ('PRI') across each of its three key criteria. The Company works closely with the investment manager on
their approach in the investment process to:
• Strategy and governance;
• Integration of ESG with research; and
• Active ownership through engagement with investee company managements.
Martin Currie has engaged during the year with companies in the portfolio on a range of ESG issues including, gender diversity, sustainable packaging and senior management remuneration structures.
The portfolio's current carbon emissions intensity as assessed using the MSCI ESG Research process is low, standing at about 10% of the FTSE World index weighted average which reflects, in part, the absence of any fossil fuels producers. ESG issues are an important element of the research process for companies being considered for the portfolio which is more fully described in the Managers review.
More details of the Martin Currie ESG activities are available in the 2019 Stewardship Report on the website at
www.martincurrie.com/corporate/about-us/stewardship .
The Covid-19 effects
The impact of Covid-19 has been felt in various areas of the Company's business. The Company's NAV per share has fallen in value from 1 February to 7 April 2020 by 7.3% (from 301.9p to 279.8p). This is significantly less than the fall in the benchmark as the portfolio manager's focus on companies with strong balance sheets and sustainable business models has provided some downside protection. However, the abnormally high market volatility has inevitably been reflected in the NAV and the share price has, at times, 'swung', unpredictably, day to day, from premium to discount against NAV. Given these abnormal market conditions, and in line with the 'zero discount' policy, the normal discount control process was impracticable and was temporarily suspended from 17 -30 March. The Covid-19 situation continues to evolve rapidly, and the Board monitors closely the impact of Covid-19 on the operational resilience of the manager and other significant service suppliers. It is satisfied that its mitigation measures are appropriate even in current conditions. The portfolio manager is actively assessing both the threats and opportunities arising from markets' reaction to Covid-19 and this is explained in more detail in his report on page 5.
Outlook
The global equity markets took the uncertainties of global politics largely in their stride last year but the 'shock' of the Covid-19 virus has seriously damaged global growth and punctured confidence. At this stage it is not possible to forecast the duration or severity of the global downturn following the Covid-19 crash but it will undoubtedly test those businesses which are financially exposed and volatility in the stock markets will continue at least in the short term.
Against this background the focus of your Company's global portfolio on financially robust, well managed businesses with sustainable business models, should make it comparatively resilient to these challenges and able to continue delivering a strong competitive performance.
Subscribe for regular updates
The Company's website at www.martincurrieglobal.com is a comprehensive source of information and includes regular portfolio manager updates and outlook videos, monthly performance factsheets and independent research reports. I recommend that you subscribe for regular email updates that will keep you abreast of the key information. I thank you for your continued support. Please contact me if you have any questions regarding your Company at my email, MCGPTChairman@martincurrie.com .
Neil Gaskell
Chairman
09 April 2020
Manager's Review
Market review of the year
2019 was certainly an eventful year. Geopolitical risks, trade tensions flaring up, Brexit turmoil, economic momentum deteriorating and increasing climate change concerns all contributed notably to the news flow over the 12 months. However, after the market fears of increased recession risks at the back end of 2018, a rapid U-turn by the US Federal Reserve, an easing of interest rates early in the year, and a broader synchronised easing in monetary policies globally led the market to rally sharply in 2019.
Markets returned 17.1% over the period (FTSE World), in GBP terms. So, overall it was a resilient year despite all the market uncertainties, with the portfolio faring very well in that environment as we detail below.
Fund performance & attribution
The Company's performance during the period was ahead of the benchmark with the portfolio returning 24.6% in a market up 17.1% in sterling terms. Performance has been strong across all regions, with particularly solid returns in Developed Europe and North America, up 13.6% and 21.4% respectively.
In terms of sectors, performance was supportive across most areas, except technology. Healthcare and industrials in particular were sources of outperformance. We are pleased with the portfolio's performance since the shift to a higher conviction unconstrained approach to investing, focusing on finding attractively valued, quality, growth companies with sustainable business models. In terms of stocks that have worked particularly well, ResMed, the global leader in medical devices treating sleep apnea, was the strongest.
Having monitored ResMed for 18 months, we took a position in early 2019. At that point, its share price had dipped on the back of a disappointing update on business performance (albeit based on a tough comparison against the previous reported period). Later in the year, the company's performance improved ahead of the market's expectations, positively impacting the share price.
Also in the healthcare sector, CSL, the global leader in blood plasma-derived therapeutics, was another impressive performer. Supply/demand in plasma collection remained favourable as competitors struggled to deal with supply disruptions while patient demand accelerated. Visa was one of the strongest performers in the year, with the company benefiting from the trend away from cash and towards electronic payments. The company is evolving from just being a card processor to broadening to other types of electronic payment methods, as evidenced by its acquisition of cross- border transfers provider Earthport. This transition expands Visa's addressable market and helps the company deal with potential disruption from emerging technology and regulatory change.
In what was a year of strong performance, we only had a few negative stock contributors, with insurance provider Prudential being one of the poorer performers. We had previously taken a positive view on the company's ambitions to segment its conglomerate structure into separate business units. However, the market's lingering concerns about the resilience and prospects on the US business unit, led the stock to de-rate and underperform. Given our lower conviction in Prudential against other names held in the portfolio and ongoing uncertainty on its US franchise, we decided to exit the position.
Elsewhere, Beazley, the specialty insurer, underperformed because of negative market sentiment over a worsening claims environment in the US 'casualty insurance' sector. Waters, the global leader in liquid chromatography characterisation tools (used commercially in analytical chemistry), was weak through the year as signs of end market recovery in late 2018 worsened through 2019. A number of macroeconomic headwinds (most notably Brexit) and regulatory pressures were a drag on growth. The company continues to invest behind new product launches which should contribute to an eventual return to organic growth.
Activity
It has been a busy year with the change in investment approach focusing on quality growth companies leading to an increased turnover in stock ideas, and an overall reduction in the number of stocks held. It has led us to exit holdings in areas such as energy, utilities, tobacco among others, and bring the number of holdings in the portfolio from the high 40s two years ago, to 33 at the end of the financial year. This makes us excited about how the Company's holdings will perform going forward, given our high conviction exposure to the best ideas that come out of our research work. We have in effect focused the Company exposures on attractively valued high quality businesses, with strong balance sheets, attractive growth profiles and sustainable business models. At the same time, we have made the Company more differentiated.
Some of the highlights of the activities in the past 12 months are detailed below.
As mentioned earlier, ResMed was purchased at the start of the reporting period and provided notable positive performance during the year, underpinned by several company-specific factors and external demand drivers. Headquartered in both the United States and Australia, ResMed is a global leader in the development of medical devices and cloud-based software applications that diagnose, treat and manage respiratory disorders including sleep apnea. A massive underlying market growth story, strong existing market share and innovative product development should enable revenue growth rate of 7-9% over the long term.
We bought back a position in the multinational manufacturer of scales and analytical instruments Mettler-Toledo following a fall in its share price. Having previously owned the stock (but sold it on valuation grounds), Mettler-Toledo is a high conviction name for us and the change in valuation allowed us the opportunity to purchase the stock again. The company enjoys a high return on its invested capital, which we project is likely to increase over the next five years along with growth in its annualised earnings.
CyberArk is the leader (revenue and technology) in the secured IT access market (PAM). PAM is a cyber security application with increasing customer awareness, growing fast and believed to be considered as core defence. Competition is weak in that segment, following consolidation in the market (product integration problems and customer confusion). We believe there is low new entrant risk within the market. We forecast the company to grow its revenues at 20% per annum in our 5 year forecast period.
We have been checking all the stocks in the portfolio for risks associated with the unprecedented slump in activity resulting from Covid-19, both in terms of supply chain and balance sheet risks, and updated our earnings and dividend forecasts to take account of the sharp slow down in economic activity that the world is going through as a result of the enforced lock-downs. On the supply chain front, each stock we analyse goes through a detailed and systematic assessment of risk exposures in their supply chains. This work has enabled us to assess and focus on those portfolio companies which have higher risks of disruption. We have checked key suppliers and competitors to all stocks held, assessed their balance sheet and working capital positions, and estimated any inventory dislocation risks, and indeed receivables and payables risks. On the balance sheet front, the companies we invest in tend to have strong balance sheets, which means that they should be able to get through this recessionary environment without major liquidity risks.
Environmental, social and governance (ESG) factors and sustainability take centre stage with corporates and investors
With the increased awareness of climate change and sustainability issues, we believe that corporates and investors alike will have an even greater focus on ESG matters in 2020 and beyond. Many investors will be demanding greater consideration of ESG factors, with the trend likely to continue to gather pace over the years to come. This, in our view, will make it vital for asset managers to demonstrate real expertise in integrating ESG analysis into their investment process, rather than it being a cosmetic exercise. We therefore present in more detail our proprietary and innovative approach to analysing companies through the ESG lens below.
Outlook
2020 started well, but this stalled with the coronavirus outbreak in China in the last week of January. The impact of the virus is undoubtedly globally significant in the short term. Beyond China's growth figures, which will be particularly badly hit, supply chains and global GDP will also be severely impacted, with Europe likely to suffer more than the US.
At the market level, investors are likely to remain in fear mode for a while. There will therefore be plenty for the pessimists to focus on. On the supportive side, central banks are on stand-by to act in an even more accommodative manner (and in some instances have already started to act), should economic activity suffer too much from the pandemic fear. We are also likely to see further sizeable fiscal policy responses across key economies.
Both of these could trigger a positive market reaction. One thing is certain, the bull-bear debate will be very active this year, and markets are therefore likely to be volatile, while the recovery remains fragile. We will increasingly be revisiting the topic of recession fear. That said, it is worth highlighting that these kind of short, sharp pull backs in the market are typically a good buying opportunity for long-term investors. In previous pandemics, we have seen the markets rally once evidence of a policy response comes through, the threat level eases and/or the short-term impact on economic and corporate activity is taken into account.
For us, this simply reinforces our belief in our investment strategy. In such an uncertain environment, we believe that our approach of long-term investing focusing on quality growth companies, with strong balance sheets and sustainable business models should help us navigate the choppy waters we are going through.
As far as the shape of any recovery is concerned, it is difficult to make reliable predictions at this stage, given the lack of visibility on the timing of the return to a normalised situation. We have updated our projections based on a core assumption of business activity in 2020 dropping significantly, and only normalising during 2021 (ie not assuming a sharp recovery). This is to build some conservative buffer into our forecasts. This scenario has a high degree of forecast risk, and will need constant updating as the situation unfolds, and we get more evidence in terms of leading indicators as we progress through the year. Based on these tentative assumptions, we have brought our estimates down sizeably on profit forecasts and therefore dividends from portfolio companies. At the dividend level, there is also uncertainty around companies' dividend policies, even for the ones whose balance sheets are strong.
We believe many companies that could still be in a position to maintain their dividend policies might act cautiously and reduce payouts, or postpone dividends until there is better visibility on the shape of the economic activity and any recovery that will ensue.
All in all, given the major near term uncertainties to the economic cycle, we predict 2020 to be volatile given the headwinds to economic growth and corporate profits, and the likely further supportive monetary and fiscal measures we might see. The exogenous shock of the coronavirus is bringing some high risk of downside to the economic momentum globally, and therefore to corporate earnings, and is likely to trigger sizeable and potentially globally synchronised policy responses, both monetary and fiscal, to ensure the world avoids a prolonged recession.
Uncertain times call for a focus on quality; as such we will continue to focus our research on finding undervalued quality growth stocks with sustainable business models.
Long-term mega-trends
Our long-term mega-trends lens will continue to help us channel our research on attractive long-term themes within the three mega-trends we have identified, namely
(i) demographic change,
(ii) future of technology, and
(iii) resource scarcity.
This long-term fundamental focus should serve us well in terms of identifying strong ideas with a good mix of quality and growth characteristics.
Environmental, social and governance analysis
With society increasingly focusing more on ESG, it is important to spend some time fleshing out how we carry our ESG analysis within Martin Currie, for the benefit of the Company. We have built a strong expertise in the ESG field over more than a decade, as testified by the various accolades Martin Currie has received. Our ESG analysis is fully integrated within our fundamental research.
To further harness our extensive ESG knowledge, we have put in place a structured framework to assess the ESG risks related to any stock that we review.
Below, we describe the details of that approach and our proprietary framework, from which the Trust benefits. Ultimately, a detailed ESG analysis helps us find the right investment opportunities as long-term investors, which should benefit our ability to continue to generate strong outperformance.
For us, ESG is part of our focus on Stewardship, which goes hand in hand with sustainable investing. ESG risks can ultimately detrimentally impact the fair value of a stock. Assessing these risks is an essential part of ensuring that we capture and understand all risks to an investment case.
Fundamental research
Analysis of ESG factors are captured through:
Early stage analysis - the 'Long-Term Unconstrained checklist'
The purpose of our first stage of fundamental research is to examine the sustainability and quality of the business in broad terms before launching into deeper investigation. ESG is one of the eight key factors we assess, here we look at the company's ESG profile, its governance and remuneration structures.
Integration into our research templates
When researching a company, we systematically score its risks against four factors, one of which is governance and sustainability. Feeding into this overall governance and sustainability risk score, our research template has a qualitative summary and our proprietary ESG scoring system (covered below). The qualitative ESG analysis is a written assessment of the company's specific approach to, and potential impacts from ESG factors. It is a key part of how we build the investment case for the stock, identifies where we need to engage with management and allows for effective peer review by the investment team.
Proprietary ESG risk assessment
We built our proprietary risk scoring system to capture the complexity of the ESG risks facing a company's long-term outlook and sustainability. It assesses the company through two lenses - governance and sustainability. We assess 6 key fields on the governance side, and 5 key fields on the sustainability side, with over 50 underlying sub-categories that reflect what the investment manager believes are the most universal ESG factors. Each sub-category is scored from 1-5, reflecting the level of risk we estimate from each factor, 1 is the lowest risk and 5 the highest. By scoring each factor, the team can then identify what material risks a company is potentially vulnerable to and what areas require more work. A higher risk score in a specific category would not necessarily rule out investing in the firm. Rather it is an acknowledgement of an area where we have identified a potential risk. We then engage with management in order to understand this risk further, or indeed with a view to guiding the company to improve in that specific field.
Active ownership
We believe monitoring and engagement are an essential part of being a long-term shareholder in a company. It allows us to improve our understanding of investee companies and their governance structures, so that our voting decisions may be better informed. In addition, it enables us to understand to what extent companies have identified material ESG risks and how they are managing these.
The materiality and immediacy of a given issue will generally determine the level of our engagement.
Our ambition is to engage with companies on important ESG matters, to identify and share best practise, ultimately guiding them on areas of improvement towards being best in class to make the business more sustainable in the long-term.
Portfolio analytics
We go beyond integration into fundamental research, employing our ESG analysis within the portfolio construction process. Our ESG research feeds through into our portfolio analytics with the output shown in an ESG dashboard. This complements our analysis of thematics, company classifications and geographic revenues and profits.
From this perspective, the real value comes from being able to drill down and examine our overall exposures and identify any areas of potential risk. It provides feedback on the effectiveness of our ESG integration and that can be reflected back into research and portfolio positioning.
Overall, this allows us to build a robust, diversified portfolio capable of delivering on our clients' long-term objectives.
A focus on continual improvement
We are always looking at continual improvement within our investment processes. Going forward, we will be placing further emphasis on measuring and reporting on the outcome and impact of our engagement. We want to assess how driving a change agenda to improve ESG at target firms has improved performance.
Zehrid Osmani
09 April 2020
Portfolio Summary
Portfolio distribution by region
|
|
31 January 2020 Company % |
31 January 2020 FTSE World index % |
31 January 2019 Company % |
31 January 2019 FTSE World index % |
|
Developed Europe |
46.6 |
20.0 |
43.7 |
20.5 |
|
North America |
34.8 |
61.9 |
36.7 |
59.9 |
|
Global Emerging Markets |
8.0 |
4.2 |
2.6 |
4.7 |
|
Developed Asia Pacific ex Japan |
7.7 |
5.5 |
13.4 |
6.0 |
|
Middle East |
2.9 |
0.2 |
3.6 |
0.2 |
|
Japan |
- |
8.2 |
- |
8.7 |
|
|
100.0 |
100.0 |
100.0 |
100.0 |
|
By sector |
|
|
|
|
|
|
31 January 2020 Company % |
31 January 2020 FTSE World index % |
31January2019 Company % |
31 January 2019 FTSEWorldindex% |
|
Industrials |
21.0 |
13.3 |
27.1 |
13.1 |
|
Healthcare |
20.8 |
11.6 |
14.4 |
11.7 |
|
Technology |
19.0 |
18.0 |
15.5 |
14.8 |
|
Consumer goods |
17.0 |
11.2 |
18.7 |
11.4 |
|
Financials |
11.0 |
20.3 |
10.5 |
21.0 |
|
Consumer services |
7.5 |
11.1 |
10.0 |
11.5 |
|
Basic materials |
3.7 |
3.8 |
3.8 |
4.4 |
|
Oil and gas |
- |
4.6 |
- |
6.0 |
|
Telecommunications |
- |
2.6 |
- |
2.8 |
|
Utilities |
- |
3.5 |
- |
3.3 |
|
|
100.0 |
100.0 |
100.0 |
100.0 |
|
By asset class |
|
|
|
|
|
|
31 January 2020 % |
31 January 2019 % |
|
|
|
Equities |
98.9 |
98.7 |
|
|
|
Cash |
1.1 |
1.3 |
|
|
|
|
100.0 |
100.0 |
|
|
|
Largest 10 holdings |
|
|
|
|
|
|
31January2020Marketvalue £000 |
31 January2020 % of total portfolio |
31January2019 Market value £000 |
31January 2019 % oftotal portfolio |
|
VISA |
10,958 |
4.4 |
7,705 |
3.8 |
|
Microsoft |
10,681 |
4.3 |
- |
- |
|
CSL |
10,404 |
4.1 |
7,328 |
3.6 |
|
ResMed |
9,974 |
4.0 |
- |
- |
|
Automatic Data Processing |
9,876 |
3.9 |
8,355 |
4.1 |
|
Straumann Holding |
9,772 |
3.9 |
7,711 |
3.8 |
|
Linde |
9,266 |
3.7 |
7,708 |
3.8 |
|
AIA Group |
9,147 |
3.6 |
8,497 |
4.2 |
|
Masimo |
8,721 |
3.5 |
- |
- |
|
Moncler |
8,394 |
3.3 |
6,621 |
3.2 |
Portfolio Holdings as at 31 January 2020
|
|
Sector |
Country |
Marketvalue £000 |
% of total portfolio |
|
||
|
Developed Europe |
|
|
117,597 |
46.6 |
|
||
|
Straumann Holding |
Healthcare |
Switzerland |
9,772 |
3.9 |
|
||
|
Linde |
Basic Materials |
Ireland |
9,266 |
3.7 |
|
||
|
Moncler |
Consumer Goods |
Italy |
8,394 |
3.3 |
|
||
|
Coloplast B |
Healthcare |
Denmark |
8,127 |
3.2 |
|
||
|
Adidas |
Consumer Goods |
Germany |
7,980 |
3.2 |
|
||
|
Kering |
Consumer Services |
France |
7,818 |
3.1 |
|
||
|
Beazley |
Financials |
United Kingdom |
7,527 |
3.0 |
|
||
|
Ferrari |
Consumer Goods |
Netherlands |
7,419 |
2.9 |
|
||
|
Unilever |
Consumer Goods |
Netherlands |
7,172 |
2.8 |
|
||
|
Hexagon |
Technology |
Sweden |
7,111 |
2.8 |
|
||
|
Assa Abloy |
Industrials |
Sweden |
6,894 |
2.7 |
|
||
|
Kerry Group |
Consumer Goods |
Ireland |
6,535 |
2.6 |
|
||
|
Atlas Copco |
Industrials |
Sweden |
6,259 |
2.5 |
|
||
|
Spirax-Sarco Engineering |
Industrials |
United Kingdom |
5,985 |
2.4 |
|
||
|
Accenture |
Industrials |
Ireland |
5,816 |
2.3 |
|
||
|
L'Oreal |
Consumer Goods |
France |
5,522 |
2.2 |
|
||
|
Candover Investments* |
Financials |
United Kingdom |
- |
- |
|
||
|
|
|
|
|
|
|
||
|
North America |
|
|
87,269 |
34.8 |
|
||
|
VISA |
Financials |
United States |
10,958 |
4.4 |
|
||
|
Microsoft |
Technology |
United States |
10,681 |
4.3 |
|
||
|
ResMed |
Healthcare |
United States |
9,974 |
4.0 |
|
||
|
Automatic Data Processing |
Industrials |
United States |
9,876 |
3.9 |
|
||
|
Masimo |
Healthcare |
United States |
8,721 |
3.5 |
|
||
|
Adobe |
Technology |
United States |
7,945 |
3.2 |
|
||
|
Mettler-Toledo International |
Industrials |
United States |
7,463 |
3.0 |
|
||
|
Waters |
Industrials |
United States |
6,254 |
2.5 |
|
||
|
Starbucks |
Consumer Services |
United States |
5,620 |
2.2 |
|
||
|
Align Technology |
Healthcare |
United States |
5,392 |
2.1 |
|
||
|
Canadian National Railway |
Industrials |
Canada |
4,385 |
1.7 |
|
||
|
|
|
|
|
|
|||
|
Global Emerging Markets |
|
|
20,010 |
8.0 |
|||
|
Taiwan Semiconductor Manufacturing |
Technology |
Taiwan |
7,280 |
2.9 |
|||
|
Tencent Holdings |
Technology |
China |
7,077 |
2.9 |
|||
|
Alibaba Group |
Consumer Services |
China |
5,653 |
2.2 |
|||
|
|
|
|
|
|
|||
|
Developed Asia Pacific ex Japan |
|
19,551 |
7.7 |
|
|||
|
CSL |
Healthcare |
Australia |
10,404 |
4.1 |
|
||
|
AIA Group |
Financials |
Hong Kong |
9,147 |
3.6 |
|
||
|
|
|
|
|
|
|
||
|
Middle East |
|
|
7,287 |
2.9 |
|
||
|
CyberArk Software |
Technology |
Israel |
7,287 |
2.9 |
|
||
|
|
|
|
|
|
|
||
|
Total Portfolio Holdings |
|
|
251,714 |
100 |
|
||
Principal risks and uncertainties
Risk and mitigation
The Company's business model is longstanding and resilient to most of the short-term operational uncertainties that it faces. The Board believes these are effectively mitigated by its internal controls and its oversight of the investment manager, as described in the table below. Its principal risks and uncertainties are therefore largely long- term and driven by the inherent uncertainties of investing in global equity markets. Operational and management risks are regularly monitored at Board meetings and the Board's planned mitigation measures for the principal and emerging risks are described in the table below. As part of its annual strategy meeting, the Board carries out a robust assessment of the principal and emerging risks facing the Company, including those that would threaten its business model, future performance, solvency or liquidity.
Pandemic risk
Following the annual strategy meeting, the principal and emerging risks were kept under review by the Board. Prior to the year end, the Covid-19 virus became an emerging risk. Since then, Covid-19 has developed rapidly to become a pandemic which has delivered an abrupt, exogenous shock to the global economy of considerable magnitude and become a principal risk. The Company is exposed to the risk of market volatility and falling equity markets brought about by the pandemic. The resilience of the operations undertaken by the manager and other key providers of operational services to the Company could be reduced as a result of the effects of the pandemic, representing a risk to the Company. The Board regularly reviews the mitigation measures which Martin Currie and other key service providers have in place to maintain operational resilience and are satisfied that these are appropriate even in the current conditions. Relevant business continuity plans have been invoked at those service providers and the Board has been given updates by each of them that these plans are operating satisfactorily and in line with expectations in order to preserve operational resilience. Working from home arrangements have been implemented where appropriate and government guidance is being followed. Further information on Covid-19 is set out in the Chairman's statement , the Manager's review and Note 18.
Following this assessment, the Board has identified the following principal risks to the Company in addition to the pandemic risk referred to above:
|
Risk |
Mitigation |
|
Sustained investment underperformance
|
The Board monitors the implementation and results of the investment process with the portfolio manager, who attends all Board meetings and reviews data that shows statistical measures of the Company's risk profile. Should investment underperformance be sustained despite the mitigation measures taken by the investment manager, the Board would assess the cause and take appropriate action to manage this risk. |
|
Material decline in market capitalisation of the Company
|
The Board recognises that the 'zero discount' policy allows new shareholders to purchase shares and current shareholders to sell their shares in any volume at close to NAV, in normal market conditions. Although this improved liquidity encourages investment in the Company, it could also increase the risk of a material decline in the size of the Company. The Board monitors the performance and pace of buybacks and the Company's shareholder profile. The Board believes that good long-term performance will increase demand for the Company's shares and increase the market capitalisation of theCompany. |
|
Loss of s1158-9 tax status
|
Loss of s1158-9 tax status would have serious consequences for the attractiveness of the Company's shares. The Board considers that, given the regular oversight of this risk by the audit committee and the investment manager, the likelihood of this risk occurring is minimal. The audit committee regularly reviews the eligibility conditions and the Company's compliance against each, including the minimum dividend requirements and shareholder composition for close company status. |
Following the ongoing assessment of the principal and emerging risks facing the Company, and its current position, the Board is confident that the Company will be able to continue in operation and meet its liabilities as they fall due. The Board believes that the processes of internal control that the Company has adopted and oversight by the investment manager continue to be effective.
Key Performance Indicators and Performance
The Board uses certain key performance indicators ('KPIs') to monitor and assess its performance in achieving the Company's objectives.
|
SummaryofKPIs |
Target |
2020 |
Achieved |
2019 |
Achieved |
|
1. Net asset value performance relativetobenchmark (over 3years) |
Outperform |
8.46% |
Yes |
(4.48%) |
No |
|
2. Performance against Company'speers (over 3years) |
Top third performance |
7th out of 16 |
No |
13th out of 20 |
No |
|
3.Ongoingcharges |
Less than0.70% (2019: Less than 0.75%) |
0.61% |
Yes |
0.63% |
Yes |
1. Net asset value performance relative to benchmark
The Board assessed the net asset value return compared to the return of the FTSE World index. It is measured on a financial year basis and assessed over a rolling three year period. As noted on page 1 the benchmark has changed to MSCI All Country World index with effect from 1 February 2020.
The KPI was achieved for the period. The return of the Company was 41.66% and the benchmark 33.20% for the three years to 31 January 2020.
2. Performance against the Company's peers
The Board monitors the share price return performance versus all competitor funds within the AIC Global sector over a rolling three year period.
The share price return for the Company was 46.12% over the three years to 31 January 2020 which ranked 7th out of 16.
The share price return of the Company ranked 1st out of 16 within the AIC Global sector for the financial year ended 31 January 2020.
3. Ongoing charges
The Board monitors ongoing charges on a regular basis to ensure it meets its target by maintaining cost discipline and its focus on value adding activities. The ongoing charges figure excludes the performance fee. The KPI was met for the year at 0.61%.
Going concern status
The Company's business activities, together with the factors likely to affect its future development, performance and position are set out in the Chairman's statement, Manager's review, Strategic report and the Report of the directors.
The financial position of the Company as at 31 January 2020 is shown on the statement of financial position. The statement of cash flow of the Company is set out below. Note 14 sets out the Company's risk management policies, including those covering market risk, liquidity risk and credit risk. In accordance with the 2019 AIC Code of Corporate Governance and the 2018 UK Corporate Governance Code, the Directors have undertaken a rigorous review of the Company's ability to continue as a going concern. The Company's assets consist of a diverse portfolio of listed equity shares which, in most circumstances, are realisable within a very short timescale. The Directors are mindful of the principal and emerging risks and uncertainties disclosed above in particular those related to Covid-19 which became a principal risk after the year end.
They have reviewed revenue forecasts and believe that the Company has adequate financial resources to continue its operational existence for the foreseeable future, and at least one year from the date of this annual report. Accordingly, the Directors continue to adopt the going concern basis in preparing these financial statements.
Viability Statement
The Company's business model is designed to deliver long-term returns to its shareholders through investment in large and liquid stocks in global equity markets. Its plans are therefore based on having no fixed or limited life provided global equity markets continue to operate normally. The Board has assessed the Company's viability over a three year period in accordance with provision 31 of the UK Corporate Governance Code as it believes this is an appropriate period over which it does not expect there to be any significant change to the principal risks (save in the case of the pandemic risk which is continuing to develop) and adequacy of the mitigating controls in place. The Board considers that this reflects the minimum period which should be considered in the context of its long-term objective but one which is limited by the inherent and increasing uncertainties involved in assessment over a longer period. In making this assessment the Directors have considered the following factors:
• the principal and emerging risks and uncertainties and the mitigating actions set out above, including the potential impact of Covid-19 as further described in the Chairmans statement and note 18;
• the mitigation measures which key service providers including the manager have in place to maintain operational resilience particularly in light of Covid-19;
• the ongoing relevance of the Company's investment objective in the current environment and evidenced by feedback from major shareholders;
• the level of income forecast to be generated by the Company and the liquidity of the Company's portfolio;
• the low level of fixed costs relative to its liquid assets; and
• the expectation that in normal markets more than 95.8% of the current portfolio could be liquidated within two trading days.
Based on the results of their analysis and the Company's processes for monitoring each of the factors set out above, the Directors have a reasonable expectation that the Company will be able to continue in operation and meet its liabilities as they fall due over at least the next three years.
Statement of Directors' responsibilities
Each of the Directors, whose names and functions are listed in the Board of Directors on page 17 of the Annual Report and Accounts, confirms that to the best of their knowledge:
• the financial statements, which have been prepared in accordance with United Kingdom Generally Accepted Accounting Practice, give a true and fair view of the assets, liabilities, financial position and profit of the Company; and
• the Report of the directors, Strategic report and Manager's review include a fair, balanced and understandable review of the development and performance of the business and the position of the Company, together with a description of the principal risks and the uncertainties that it faces; and
• the annual report and financial statements, taken as a whole, are fair, balanced and understandable and provide the information necessary for shareholders to assess the Company's performance, business model and strategy.
The Directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations. Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have prepared the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (and applicable law).
Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.
In preparing these financial statements, the Directors are required to:
• select suitable accounting policies and then apply them consistently;
• make judgements and accounting estimates that are reasonable and prudent;
• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements respectively; and
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements and the Directors' remuneration report comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The financial statements are published on the Company's website (www.martincurrieglobal.com) which is maintained by the investment manager. The Directors are responsible for the maintenance and integrity of the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. This responsibility statement was approved by the Board of Directors on 09 April 2020 and is signed on its behalf by:
Neil Gaskell
Chairman
09 April 2020
Statement of Comprehensive Income
|
|
Year to 31January2020 |
Year to 31 January2019 |
|||||||
|
|
|
Revenue |
Capital |
Total |
Revenue |
Capital |
Total |
||
|
|
Note |
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
||
|
Net gains on investments |
7 |
- |
50,989 |
50,989 |
- |
1,202 |
1,202 |
||
|
Net currency gains/(losses) |
|
7 |
(51) |
(44) |
59 |
(6) |
53 |
||
|
Revenue |
3 |
3,114 |
- |
3,114 |
4,211 |
- |
4,211 |
||
|
Investment management fee |
5 |
(257) |
(712) |
(969) |
(286) |
(573) |
(859) |
||
|
Performance fee |
|
- |
(2,135) |
(2,135) |
- |
(406) |
(406) |
||
|
Other expenses |
5 |
(478) |
- |
(478) |
(510) |
- |
(510) |
||
|
Net return on ordinary activities before taxation |
|
2,386 |
48,091 |
50,477 |
3,474 |
217 |
3,691 |
||
|
Taxation on ordinary activities |
6 |
(288) |
- |
(288) |
(415) |
- |
(415) |
||
|
Net return attributable to shareholders |
|
2,098 |
48,091 |
50,189 |
3,059 |
217 |
3,276 |
||
|
Net returns per ordinary share |
2 |
2.52p |
57.76p |
60.28p |
3.47p |
0.25p |
3.72p |
||
The total columns of this statement are the profit and loss accounts of the Company.
The revenue and capital items are presented in accordance with the Association of Investment Companies ('AIC') Statement of Recommended Practice 2019.
All revenue and capital items in the above statement derive from continuing operations.
No operations were acquired or discontinued in the year.
The notes to the accounts form part of these financial statements.
There is no other comprehensive income and therefore the return attributable to shareholders is also the total comprehensive income for the period.
Statement of Financial Position
|
|
|
As at 31 January 2020 |
As at 31 January 2019 |
||
|
|
Note |
£000 |
£000 |
£000 |
£000 |
|
Fixed assets |
|
|
|
|
|
|
Listed on the London Stock Exchange |
|
|
13,512 |
|
21,107 |
|
Listed on exchanges abroad |
|
|
238,202 |
|
182,711 |
|
Investments at fair value through profit or loss |
7 |
|
251,714 |
|
203,818 |
|
Current assets Trade receivables |
8 |
186 |
|
174 |
|
|
Cash and cash equivalents |
9 |
2,728 |
|
2,671 |
|
|
|
|
|
2,914 |
|
2,845 |
|
Current liabilities |
|
|
|
|
|
|
Performance fee payable |
11 |
(2,541) |
|
- |
|
|
Trade payables |
10 |
(392) |
|
(682) |
|
|
|
|
|
(2,933) |
|
(682) |
|
Total assets less current liabilities
|
|
|
251,695 |
|
205,981 |
|
Amounts falling due after more than one year
Performance fee provision |
11 |
|
- |
|
(406) |
|
Total net assets |
|
|
251,695 |
|
205,575 |
|
Equity Called-up share capital |
12 |
4,934 |
|
4,934 |
|
|
Capital redemption reserve |
|
11,083 |
|
11,083 |
|
|
Special distributable reserve* |
|
70,100 |
|
70,673 |
|
|
Capital reserve |
12 |
162,340 |
|
114,249 |
|
|
Revenue reserve* |
|
3,238 |
|
4,636 |
|
|
Total shareholders' funds |
|
|
251,695 |
|
205,575 |
|
Net asset value per ordinary share |
2 |
|
301.9p |
|
245.5p |
* These reserves are distributable.
The notes to the accounts form part of these financial statements.
Martin Currie Global Portfolio Trust plc is registered in Scotland, company number SC192761.
The financial statements were approved by the Board of directors on 09 April 2020 and signed on its behalf by Neil Gaskell, Chairman.
Statement of Changes in Equity
|
|
|
Calledupordinaryshare capital |
Capital redemption reserve |
Special distributable reserve* |
Capital reserve |
Revenue reserve* |
Total |
|
|
Note |
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
||
|
As at 31 January 2019 |
|
4,934 |
11,083 |
70,673 |
114,249 |
4,636 |
205,575 |
|
|
Net return attributable to shareholders** |
|
- |
- |
- |
48,091 |
2,098 |
50,189 |
|
|
Ordinary shares issued during the year |
12 |
- |
- |
4,520 |
- |
- |
4,520 |
|
|
Ordinary shares bought back during the year |
12 |
- |
- |
(5,093) |
- |
- |
(5,093) |
|
|
Dividendspaid |
4 |
- |
- |
- |
- |
(3,496) |
(3,496) |
|
|
As at 31 January 2020 |
4,934 |
11,083 |
70,100 |
162,340 |
3,238 |
251,695 |
||
|
|
Called up |
Capital |
Special |
|
|
|
||
|
|
ordinary share |
redemption |
distributable |
Capital |
Revenue |
|
||
|
|
capital |
reserve |
reserve* |
reserve |
reserve* |
Total |
||
|
|
Note |
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
|
|
As at 31 January 2018 |
|
5,179 |
10,838 |
91,853 |
114,032 |
5,284 |
227,186 |
|
|
Net return attributable to shareholders** |
|
- |
- |
- |
217 |
3,059 |
3,276 |
|
|
Ordinary shares cancelled during the period |
12 |
(245) |
245 |
- |
- |
- |
- |
|
|
Ordinary shares bought back during the year |
12 |
- |
- |
(21,180) |
- |
- |
(21,180) |
|
|
Dividendspaid |
4 |
- |
- |
- |
- |
(3,707) |
(3,707) |
|
|
As at 31 January 2019 |
|
4,934 |
11,083 |
70,673 |
114,249 |
4,636 |
205,575 |
|
*These reserves are distributable.
The revenue reserve and the special distributable reserve represent the amount of the Company's reserves distributable by way of dividend.
**The Company does not have any other income or expenses that are not included in the 'Net return attributable to shareholders' as disclosed in the statement of Comprehensive Income and therefore this is also the 'Total Comprehensive Income' for the year.
The notes to the accounts form part of these financial statements.
Statement of Cash Flow
|
|
Year to 31 January 2020 |
Year to 31 January 2019 |
||||
|
|
Note |
£000 |
£000 |
£000 |
£000 |
|
|
Cash flows from operating activities Profit before tax |
|
|
50,477 |
|
3,691 |
|
|
Adjustments for: |
|
|
|
|
|
|
|
Gains on investments |
7 |
(50,989) |
|
(1,202) |
|
|
|
Purchases of investments* |
7 |
(80,284) |
|
(147,050) |
|
|
|
Sales of investments* |
7 |
83,377 |
|
167,626 |
|
|
|
Dividend income |
3 |
(3,093) |
|
(4,182) |
|
|
|
Interest income |
3 |
(2) |
|
(1) |
|
|
|
Stock lending income |
3 |
(19) |
|
(28) |
|
|
|
Dividend received |
|
2,953 |
|
4,247 |
|
|
|
Interest received |
|
2 |
|
1 |
|
|
|
Stock lending income received |
|
20 |
|
31 |
|
|
|
Decrease in receivables |
|
127 |
|
1 |
|
|
|
Increase in payables |
|
1,470 |
|
366 |
|
|
|
Overseas withholding tax suffered |
|
(288) |
|
(415) |
|
|
|
|
|
|
(46,726) |
|
19,394 |
|
|
Net cash flows from operating activities |
|
|
3,751 |
|
23,085 |
|
|
Cash flows from financing activities Repurchase of ordinary share capital |
|
(4,718)) |
|
(20,907) |
|
|
|
Shares issued for cash |
|
4,520 |
|
- |
|
|
|
Equity dividends paid |
|
(3,496) |
|
(3,707) |
|
|
|
Net cash flows from financing activities |
|
|
(3,694) |
|
(24,614) |
|
|
Net increase/(decrease) in cash and cash equivalents |
|
|
57 |
|
(1,529) |
|
|
Cash and cash equivalents at the start of the year |
|
|
2,671 |
|
4,200 |
|
|
Cash and cash equivalents at the end of the year |
|
|
2,728 |
|
(2,671) |
|
*Receipts from the sale of, and payments to acquire, investment securities have been classified as components of cash flows from operating activities because they form part of the Company's dealing operations.
The notes form part of these financial statements.
Notes to the Financial Statements
Note 1: Accounting policies
(a) For the year ended 31 January 2020, the Company is applying FRS 102 Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), which forms part of the Generally Accepted Accounting Practice ('UK GAAP') issued by the Financial Reporting Council ('FRC').
The Directors believe that the Company has adequate resources to continue in operational existence for the foreseeable future and, following consideration of the impact of Covid-19 as set out in the Report of the directors they continue to adopt the going concern basis in preparing the financial statements.
These financial statements have been prepared in accordance with the Disclosure and Transparency Rules of the Financial Conduct Authority, FRS102 issued by the FRC in September 2015 and the revised Statement of Recommended Practice "Financial Statements of Investment Trust Companies and Venture Capital Trusts" (SORP) issued by the AIC in October 2019.
Functional currency - the Company is required to nominate a functional currency, being the currency in which the Company predominately operates. The Board has determined that sterling is the Company's functional currency, which is also the currency in which these financial statements are prepared. This is also the currency in which all expenses and dividends are paid in.
(b) Income from investments (other than capital dividends), including taxes deducted at source, is included in revenue by reference to the date on which the investment is quoted ex-dividend, or where no ex- dividend date is quoted, when the Company's right to receive payment is established. UK investment income is stated net of the relevant tax credit. Overseas dividends include any taxes deducted at source. Special dividends are credited to capital or revenue, according to the circumstances. Stock dividends are treated as unfranked investment income; any excess in value of the shares received over the amount of the cash dividend is recognised as a capital item in the statement of comprehensive income.
(c) Interest receivable and payable, management fees, performance fees and other expenses are treated on an accruals basis.
(d) The management fee and finance costs in relation to debt are recognised two-thirds as a capital item and one-third as a revenue item for the period to 31 July 2019 and past this date four-fifths as a capital item and one-fifth as a revenue item in the statement of comprehensive income in accordance with the Board's expected long-term split of returns in the form of capital gains and revenue, respectively. The performance fee is recognised 100% as a capital item in the statement of comprehensive income as it relates entirely to the capital performance of the Company. All other expenses are charged to revenue except where they directly relate to the acquisition or disposal of an investment, in which case, they are treated as described in (f) below.
(e) Investments - investments have been classified upon initial recognition as fair value through profit or loss. Investments are recognised and derecognised at trade date where a purchase or sale is under a contract whose terms require delivery within the time frame established by the market concerned, and are initially measured as fair value. Subsequent to initial recognition, investments are valued at fair value. For listed investments, this is deemed to be bid market prices.
Gains and losses arising from changes in fair value are included in net profit or loss for the year as a capital item in the statement of comprehensive income and are ultimately recognised in the capital reserve.
(f) Transaction costs incurred on the purchase and disposal of investments are recognised as a capital item in the statement of comprehensive income.
(g) Monetary assets and liabilities expressed in foreign currencies are translated into sterling at rates of exchange ruling at the date of the statement of financial position. Non-monetary items expressed in foreign currencies held at fair value are translated into sterling at rates of exchange ruling at the date the fair value is measured.
Transactions in foreign currency are converted to sterling at the rate ruling at the date of the transaction. Exchange gains and losses are taken to the income statement as a capital or revenue item depending on the nature of the underlying item.
(h) Cash and cash equivalents comprises cash and demand deposits which are readily convertible to a known amount of cash and are subject to insignificant risk of changes in value.
(i) Dividend payable - under FRS102 dividends should not be accrued in the financial statements unless they have been approved by shareholders before the statement of financial position date. Dividends to equity shareholders are recognised in the statement of changes in equity when they have been paid.
(j) Capital reserve - gains or losses on realisation of investments and changes in fair values of investments are transferred to the capital reserve. Any changes in fair values of investments that are not readily convertible to cash are treated as unrealised gains or losses within the capital reserve. The capital element of the management fee and relevant finance costs are charged to this reserve. Any associated tax relief is also credited to this reserve.
The cost of share buy backs include the amount of consideration paid, including directly attributable costs and are deducted from the special distributable reserve until the shares are cancelled.
The special distributable reserve was created through the cancellation and reclassification of the share premium account in 1999 and 2004, and thereafter the cost of the share buy backs are deducted from this reserve. This reserve can also be used to pay dividends.
The revenue reserve - the net revenue for the year is added to the revenue reserve and dividends paid are deducted from the revenue reserve.
Capital redemption reserve - the nominal value of the shares bought back and cancelled are transferred to the capital redemption reserve.
(k) Taxation - the charge for taxation is based upon the revenue for the year and is allocated according to the marginal basis between revenue and capital using the Company's effective rate of corporation tax for the accounting period.
(l) Deferred taxation - deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date where transactions or events that result in an obligation to pay more or a right to pay less tax in future have occurred at the statement of financial position date measured on an undiscounted basis and based on enacted tax rates. This is subject to deferred tax assets being recognised only if it is considered more likely than not that there will be suitable profits from which the future reversal of the underlying temporary differences can be deducted.
Timing differences are differences arising between the Company's taxable profits and its results as stated in the accounts which are capable of reversal in one or more subsequent periods. Due to the Company's status as an investment trust company, and the intention to continue meeting the conditions required to obtain approval in the foreseeable future, the Company has not provided deferred tax on any capital gains and losses arising on the revaluation or disposal of investments.
(m) The Company can use derivative financial instruments to manage risk associated with foreign currency fluctuations arising on the investments in currencies other than sterling. This is achieved by the use of forward foreign currency contracts. Derivative financial instruments are recognised initially at fair value on the contract date and subsequently remeasured to the fair value at each reporting date. The resulting gain or loss is recognised as revenue or capital in the statement of comprehensive income depending on the nature and motive of each derivative transaction. The fair values of the derivative financial instruments are included within non-current assets or within current assets or current liabilities depending on the nature and motive of each derivative transaction. There were nil derivative instruments held as at 31 January 2020 (2019: nil).
(n) Stock lending income is received net of associated costs and recognised in revenue as earned.
(0) There have been no significant judgements, estimates or assumptions for the year
Note 2: Returns and netassetvalue |
Year ended 31 January2020 |
Year ended 31 January 2019 |
|
The return and net asset value per ordinary share are calculated with reference to the following figures: |
|
|
|
Revenue return |
|
|
|
Revenue return attributable toordinaryshareholders |
£2,098,000 |
£3,059,000 |
|
Weighted average number of shares in issueduringyear |
83,261,286 |
88,034,756 |
|
Return perordinaryshare |
2.52p |
3.47p |
|
Capital return |
|
|
|
Capital return attributable toordinaryshareholders |
£48,091,000 |
£217,000 |
|
Weighted average number of shares in issueduringyear |
83,261,286 |
88,034,756 |
|
Return perordinaryshare |
57.76p |
0.25p |
|
Total return |
|
|
|
Total return perordinaryshare |
60.28p |
3.72p |
There are no dilutive or potentially dilutive shares in issue.
|
|
|
As at 31 January 2020 |
As at 31 January 2019 |
|
Net asset value per share |
|
|
|
|
Net assets attributable to shareholders |
|
£251,695,000 |
£205,575,000 |
|
Number of shares in issue at the year end Net asset value per share |
|
83,364,105 301.9p |
83,724,832 245.5p |
Between 1 February 2020 and 6 April 2020, 58,521 ordinary shares of 5p were bought back to Treasury and 500,000 ordinary shares of 5p were issued from Treasury.
Note 3: Revenuefrominvestments |
Year ended 31 January2020 |
Year ended 31 January 2019 |
|
|
£000 |
£000 |
|
Dividends from listed investments |
|
|
|
UKequities |
242 |
810 |
|
Internationalequities |
2,851 |
3,372 |
|
Other revenue |
|
|
|
Interestondeposits |
2 |
1 |
|
Stocklending |
19 |
28 |
|
|
3,114 |
4,211 |
|
There were no capital dividends received during the year ended 31 January 2020 (2019: £nil). |
||
Note 4: Dividends |
Year ended 31 January2020 £000 |
Year ended 31 January 2019 £000 |
|
Year ended 31 January 2018 - fourth interim dividend of 1.50p |
- |
1,365 |
|
Year ended 31 January 2019 - fourth interim dividend of 1.50p |
1,243 |
- |
|
Year ended 31 January 2020 - first interim dividend of 0.90p (2019: 0.90p) |
749 |
802 |
|
Year ended 31 January 2020 - second interim dividend of 0.90p (2019: 0.90p) |
758 |
776 |
|
Year ended 31 January 2020 - third interim dividend of 0.90p (2019: 0.90p) |
746 |
764 |
|
|
3,496 |
3,707 |
Revenue return per share for the year ended 31 January 2020 is 2.52p (2019: 3.47p), refer to note 2 for details of calculation.
Set out below are the total dividends paid/payable in respect of the financial year which forms the basis on which the requirements of s1158-1159 of the Corporation Taxes Act 2010 are considered
|
|
Year ended 31 January2020 £000 |
Year ended 31 January 2019 £000 |
|
First interim dividend of 0.90p for theyearended 31 January 2020 (2019: 0.90p) |
749 |
802 |
|
Second interim dividend of 0.90p for theyearended 31 January 2020 (2019: 0.90p) |
758 |
776 |
|
Third interim dividend of 0.90p for theyearended 31 January 2020 (2019: 0.90p) |
746 |
764 |
|
Proposed fourth interim dividend of 1.50p for theyearended 31 January 2020 (2019: 1.50p) |
1,250 |
1,256 |
|
|
3,503 |
3,598 |
Note 5: Other expenses |
Year ended 31 January 2020 |
Year ended 31 January 2019 |
|
|
£000 |
£000 |
|
Advertising and public relations |
95 |
80 |
|
Bank charges (including custody fees) |
26 |
22 |
|
Directors' fees |
132 |
137 |
|
Directors and officers liability insurance |
9 |
10 |
|
VAT* |
(47) |
51 |
|
Legal fees |
25 |
9 |
|
Marketing |
25 |
27 |
|
Printing and postage |
13 |
11 |
|
Registration fees |
38 |
30 |
|
Secretarial fee |
65 |
53 |
|
Other |
61 |
58 |
|
|
442 |
488 |
|
Auditors' remuneration |
|
|
|
Payable to EY for the audit of the Company's annual financial statements |
36 |
20 |
|
Payable to EY for non-audit fees |
- |
2 |
|
|
478 |
510 |
During the year ended 31 January 2020 the accounting methodology for expenses changed and they are now being accounted for on a gross (of VAT)
basis. In the prior year expenses were accounted for on a net (of VAT) basis.
*VAT for the year ending 31 January 2020 is the actual VAT recovered during the year. VAT for the year ending 31 January 2019 is the total irrecoverable
VAT suffered during the year.
Performance fee provision
The performance fee for the year ended 31 January 2020 was £2,135,000 (2019: £406,000). The total performance fee payable as at 31 January 2020 is £2,541,000. Details of the management and secretarial agreements are provided below.
Note 6: Taxation on ordinary activities
Note 6: Taxation on ordinary activities |
Year ended 31 January 2020 |
Year ended 31 January 2019 |
||||
|
|
Revenue |
Capital |
Total |
Revenue |
Capital |
Total |
|
|
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
|
Overseastaxsuffered |
288 |
- |
288 |
415 |
- |
415 |
The corporation tax rate was 19.00% (2019: 19.00%). The tax charge for the year differs from the charge resulting from applying the standard rate of corporation tax in the UK for an investment trust company. The differences are explained below.
|
|
Year ended 31 January 2020 |
Year ended 31 January 2019 |
|
£000 |
£000 |
|
|
Net return before taxation |
50,477 |
3,691 |
|
Corporation tax at rate of 19.00% (2019: 19.00%) |
9,591 |
701 |
|
Effects of: |
|
|
|
UK dividends not taxable |
(46) |
(154) |
|
Currency losses not taxable |
10 |
1 |
|
Gains on investments not taxable |
(9,688) |
(228) |
|
Overseas dividends not taxable |
(544) |
(645) |
|
Overseas tax suffered |
288 |
415 |
|
Overseas tax expensed |
405 |
77 |
|
Increase in excess management and loan expenses |
272 |
248 |
|
Total tax charge for the year |
288 |
415 |
As at 31 January 2020, the Company had unutilised management expenses of £35 million (2019: £34 million) carried forward. Due to the Company's status as an investment trust and the intention to continue to meet the conditions required to obtain approval in the foreseeable future, the Company has not provided deferred tax on capital gains and losses arising on the revaluation or disposal of investments.
The unrecognised deferred tax asset is £6.0 million which is 17% of the excess management expenses carried forward (2019: £5.8 million, 17% of excess management expenses).
Note 7: Investments at fair value through profit or loss |
Year ended 31 January 2020 |
Year ended 31 January 2019 |
|
Opening book cost |
£000 |
£000 |
|
Opening investment holding gains |
37,404 |
80,941 |
|
Opening market value |
203,818 |
223,192 |
|
Additions at cost |
80,284 |
147,050 |
|
Disposals proceeds received |
(83,377) |
(167,626) |
|
Gains on investments |
50,989 |
1,202 |
|
Market value of investments held at 31 January |
251,714 |
203,818 |
|
Closing book cost |
191,768 |
166,414 |
|
Closing investment holding gains |
59,946 |
37,404 |
|
Closing market value |
251,714 |
203,818 |
The Company received £83,377,000 (2019: £167,626,000) from investments sold in the year. The book cost of these investments when they were purchased was £54,930,000 (2019: £122,887,000).
The transaction costs in acquiring investments during the year were £97,000 (2019: £247,000). For disposals, transaction costs were £33,000 (2019: £70,000).
As at 31 January 2020 there were no unlisted securities (2019: nil).
Note 8: Trade receivables: amounts falling due within one year |
As at 31 January2020 £000 |
As at 31 January2019 £000 |
|
Dividends receivable |
23 |
71 |
|
Taxation recoverable |
163 |
97 |
|
Other receivables |
- |
5 |
|
Stocklending income receivable |
- |
1 |
|
|
186 |
174 |
Note 9: Cash and cash equivalents |
As at 31 January2020 £000 |
As at 31 January2019 £000 |
|
Sterling bank account |
2,705 |
2,647 |
|
Non-sterling bank account |
23 |
24 |
|
|
2,728 |
2,671 |
Note 10: Trade payables |
As at 31 January 2020 |
As at 31 January 2019 |
|
|
£000 |
£000 |
|
Amounts falling due within one year: Due to Martin Currie |
268 |
218 |
|
Other payables |
124 |
89 |
|
Amount due for Ordinary shares bought back |
- |
375 |
|
|
392 |
682 |
Note 11: Payables - performance fee |
As at 31 January 2020 |
As at 31 January 2019 |
|
|
£000 |
£000 |
|
Performance fee payable (2019: provision) |
2,541 |
406 |
|
|
2,541 |
406 |
The details of the performance fee are provided in the Report of the directors.
Note 12: Ordinary shares of 5p and capital reserves |
Numberof shares |
As at31 January2020 £000 |
Numberof shares |
As at31 January2019 £000 |
|
Ordinary shares of 5p |
|
|
|
|
|
Ordinary shares in issue at the beginning of the year |
83,724,832 |
4,185 |
92,302,109 |
4,614 |
|
Ordinary shares issued from Treasury during the year |
1,485,000 |
74 |
- |
- |
|
Ordinary shares bought back to Treasury during the year |
(1,845,727) |
(92) |
(8,577,277) |
(429) |
|
Ordinary shares in issue at end of the year |
83,364,105 |
4,167 |
83,724,832 |
4,185 |
|
|
Numberof shares |
As at31 January2020 £000 |
Numberof shares |
As at31 January2019 £000 |
|
Treasury shares (Ordinary shares 5p) Treasury shares in issue at the beginning of the year |
14,951,075 |
749 |
11,281,093 |
565 |
|
Ordinary shares issued from Treasury during the year |
(1,485,000) |
(74) |
- |
- |
|
Ordinary shares cancelled from Treasury during the year |
- |
- |
(4,907,295) |
(245) |
|
Ordinary shares bought back to Treasury during the year |
1,845,727 |
92 |
8,577,277 |
429 |
|
Treasury shares in issue at end of the year |
15,311,802 |
767 |
14,951,075 |
749 |
|
Total ordinary shares in issue and in Treasury at the end of the year |
98,675,907 |
4,934 |
98,675,907 |
4,934 |
The net cost of share issues from and buy backs to Treasury for the year to 31 January 2020 was £573,000 (2019: £21,180,000). The analysis of the capital reserve is as follows:
|
|
Realised capital reserve |
Unrealised investment holdinggains |
Total capital reserve |
|
£000 |
£000 |
£000 |
|
|
As at 31 January 2019 |
76,845 |
37,404 |
114,249 |
|
Gains on realisation of investments at fair value |
28,447 |
- |
28,447 |
|
Movement in fair value gains of investments |
- |
22,542 |
22,542 |
|
Realised currency gains during the year |
(51) |
- |
(51) |
|
Capital expenses |
(2,847) |
- |
(2,847) |
|
As at 31 January 2020 |
102,394 |
59,946 |
162,340 |
The above split in capital reserve is shown in accordance with provisions of the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies and Venture Capital Trusts'
Note 13: Related party transactions
With the exception of the management and secretarial fees , performance fee, directors' fees and directors' shareholdings , there have been no related party transactions during the year, or in the prior year.
The amounts payable for directors' fees as at 31 January 2020 are £11,000 (2019: £14,000).
Note 14: Financial instruments
The Company's financial instruments comprise securities and other investments, cash balances, receivables and payables that arise directly from its operations; for example, in respect of sales and purchases awaiting settlement, and receivables for accrued income.
The Company also has the ability to enter into derivative transactions in the form of forward foreign currency contracts, futures and options, for the purpose of managing currency and market risks arising from the Company's activities.
The main risks the Company faces from its financial instruments are (a) market price risk (comprising of (i) interest rate risk, (ii) currency risk and (iii) other price risk), (b) liquidity risk and (c) credit risk.
The Board regularly reviews and agrees policies for managing each of these risks. The investment manager's policies for managing these risks are summarised below and have been applied throughout the year. The numerical disclosures exclude short-term receivables and payables, other than for currency disclosures.
(a) Market price risk
The fair value or future cash flows of a financial instrument held by the Company may fluctuate because of changes in market prices. This market risk comprises three elements - interest rate risk, currency risk and other price risk.
(i) Market risk arising from interest rate risk
Interest rate movements may affect the level of income receivable on cash deposits.
The possible effects on fair value and cash flows that could arise as a result of changes in interest rates are taken into account when making investment and borrowing decisions.
The Board imposes borrowing limits to ensure gearing levels are appropriate to market conditions and reviews these
on a regular basis. Borrowings may comprise fixed rate, revolving, and uncommitted facilities. Current guidelines state that the total borrowings will not exceed 20% of the total assets of the Company. The Company does not currently have any gearing.
Interest risk profile
The interest rate risk profile of the portfolio of financial assets (comprising cash balances only) at the statement of financial position date was as follows
|
|
Interest rate |
Local currency |
Foreign |
Sterling equivalent |
|
At 31 January 2020 |
% |
'000 |
exchange rate |
£000 |
|
Assets Sterling |
0.07 |
2,705 |
1.000 |
2,705 |
|
Euro |
(0.75) |
28 |
1.189 |
23 |
|
US Dollar |
0.12 |
0 |
1.318 |
0 |
|
|
|
|
|
2,728 |
|
At 31 January 2019 |
|
|
|
|
|
Assets Sterling |
0.07 |
2,647 |
1.000 |
2,647 |
|
Euro |
(0.60) |
28 |
1.146 |
24 |
|
US Dollar |
0.50 |
0 |
1.315 |
0 |
|
|
|
|
|
2,671 |
Interest rate sensitivity
The sensitivity analysis below has been determined based on the exposure to interest rates for non-derivative instruments at the statement of financial position date and the stipulated change taking place at the beginning of the financial year and held constant throughout the reporting period in the case of instruments that have floating rates.
If interest rates had been 75 (2019: 75) basis points higher or lower and all other variables were held constant, the Company's profit for the year ended 31 January 2020 would increase/decrease by £20,000 (2019: increase/decrease by £20,000). This is mainly attributable to the Company's exposure to interest rates on its floating rate cash balances.
As at 31 January 2020 an interest rate of 0.75% is used, given the prevailing base rate is 0.50%. This level is considered possible based on observations of market conditions and historic trends.
(i) Market risk arising from foreign currency risk
A significant proportion of the Company's investment portfolio is invested in overseas securities and the statement of financial position can be significantly affected by movements in foreign exchange rates. It is not currently the Company's policy to hedge this risk.
The revenue account is subject to currency fluctuation arising on overseas income.
Foreign currency risk profile
Foreign currency risk exposure by currency of denomination:
|
Year ended 31January2020 |
Year ended 31 January2019 |
||||||
|
|
Investment |
Net monetary |
Total currency |
Investment |
Net monetary |
Total currency |
|
|
|
exposure |
exposure |
exposure |
exposure |
exposure |
exposure |
|
|
|
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
|
|
US dollar |
118,186 |
- |
118,186 |
105,821 |
- |
105,821 |
|
|
Euro |
50,840 |
74 |
50,914 |
33,839 |
63 |
33,902 |
|
|
Hong Kong dollar |
16,224 |
- |
16,224 |
15,221 |
1 |
15,222 |
|
|
Swiss franc |
9,772 |
37 |
9,809 |
7,711 |
49 |
7,760 |
|
|
Swedish krona |
20,264 |
- |
20,264 |
7,747 |
- |
7,747 |
|
|
Australian dollar |
10,404 |
1 |
10,405 |
7,328 |
- |
7,328 |
|
|
Canadian dollar |
4,385 |
- |
4,385 |
4,058 |
- |
4,058 |
|
|
Danish krone |
8,127 |
28 |
8,155 |
4,107 |
9 |
4,116 |
|
|
Total overseas investments |
238,202 |
140 |
238,342 |
185,832 |
122 |
185,954 |
|
|
Sterling |
13,512 |
(159) |
13,353 |
17,986 |
1,635 |
19,621 |
|
|
Total |
251,714 |
(19) |
251,695 |
203,818 |
1,757 |
205,575 |
|
The asset allocation between specific markets can vary from time to time based on the portfolio manager's opinion of the attractiveness of the individual stocks.
Foreign currency sensitivity
At 31 January 2020, if sterling had strengthened by 5% in relation to all currencies, with all other variables held constant, total net assets and total return on ordinary activities would have decreased by the amounts shown below. A 5% weakening of sterling against all currencies, with all other variables held constant, would have had an equal but opposite effect on the financial statement amounts.
|
|
2020 |
2019 |
|
£000 |
£000 |
|
|
US dollar |
5,909 |
5,291 |
|
Euro |
2,546 |
1,695 |
|
Hong Kong dollar |
811 |
761 |
|
Swiss franc |
490 |
388 |
|
Swedish krona |
1,013 |
387 |
|
Australian dollar |
520 |
366 |
|
Canadian dollar |
219 |
203 |
|
Danish krone |
408 |
206 |
(ii) Market risk arising from other price risk
Other price risks (i.e. changes in market prices other than those arising from interest rate or currency risk) may affect the value of the quoted investments.
It is the Board's policy to hold an appropriate spread of investments in the portfolio in order to reduce the risk arising from factors specific to a particular country or sector. The allocation of assets to international markets as detailed on above, and the stock selection process both act to reduce market risk. The investment manager actively monitors market prices throughout the year and reports to the Board, which meets regularly in order to review investment strategy. All investments held by the Company are listed on various stock exchanges worldwide.
Other price risk sensitivity
If market prices at the statement of financial position date had been 15% higher or lower while all other variables remained constant, the return attributable to ordinary shareholders at the year ended 31 January 2020 would have increased/decreased by £37,760,000 (2019: increase/decrease of £30,570,000) and capital reserves would have increased/decreased by the same amount. This level of change is considered to be reasonably possible based on observation of market conditions and historic trends.
(b) Liquidity risk
This is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities.
Liquidity risk is not considered to be significant as the Company's assets comprise mainly readily realisable securities, which can be sold to meet funding commitments if necessary.
(c) Credit risk
This is the risk of failure of the counterparty to a transaction to discharge its obligations under that transaction that could result in the Company suffering a loss.
The risk is managed as follows:
• investment transactions are carried out with a large number of brokers, whose credit rating is reviewed periodically by the portfolio manager, and limits are set on the amount that may be due from any one broker; and
• cash is held only with reputable banks with high quality external credit ratings.
None of the Company's financial assets are secured by collateral.
The maximum credit risk exposure as at 31 January 2020 was £2,914,000 (2019: £2,845,000). This was due to trade receivables and cash as per notes 8 and 9.
Please refer to note 17 and 'Stocklending disclosure' for details of the Company's stock lending and related collateral.
Fair values of financial assets and financial liabilities
All financial assets and liabilities of the Company are included in the statement of financial position at fair value or a reasonable approximation of fair value with no material difference in the carrying amount.
Note 15: Capital management policies and procedures
The Company's capital management objectives are:
• to ensure that the Company will be able to continue as a going concern;
• to maximise the return to its equity shareholders through an appropriate balance of equity capital and debt; and
• to limit gearing to 20% of net assets.
The Board monitors and reviews the broad structure of the Company's capital on an ongoing basis. This review includes the nature and planned level of gearing, which takes account of the portfolio manager's views on the market and the extent to which revenue in excess of that which is required to be distributed under the investment trust rules should be retained.
The analysis of shareholders' funds is as follows:
|
|
As at 31 January2020 £000 |
As at 31 January2019 £000 |
|
Called up ordinary share capital |
4,934 |
4,934 |
|
Capital redemption reserve |
11,083 |
11,083 |
|
Special distributable reserve |
70,100 |
70,673 |
|
Capital reserve |
162,340 |
114,249 |
|
Revenue reserve |
3,238 |
4,636 |
|
Total shareholders' funds |
251,695 |
205,575 |
Note 16: Fair value hierarchy
Under FRS 102, the Company is required to classify fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy shall have the following levels:
• Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
• Level 2: other significant observable inputs (including quoted prices for similar investments, interest rates, prepayments, credit risk, etc);
• Level 3: significant unobservable input (including the Company's own assumptions in determining the fair value of investments).
The financial assets measured at fair value through profit and loss are grouped into the fair value hierarchy as follows:
|
At 31 January 2020 |
Level1 £000 |
Level2 £000 |
Level3 £000 |
Total £000 |
|
Financial assets at fair value through profit or loss |
|
|
|
|
|
Quoted equities |
251,714 |
- |
- |
251,714 |
|
Net fair value |
251,714 |
- |
- |
251,714 |
|
At 31 January 2019 |
Level1 £000 |
Level2 £000 |
Level3 £000 |
Total £000 |
|
Financial assets at fair value through profit or loss |
|
|
|
|
|
Quoted equities |
203,818 |
- |
- |
203,818 |
|
Net fair value |
203,818 |
- |
- |
203,818 |
Note 17: Stocklending
The Company has a Securities Lending Authorisation Agreement with State Street Bank & Trust Company. As at 31 January 2020 £11,890,000 (2019: £7,513,000) of investments were subject to stock lending agreements and £12,911,000 (2019: £8,300,000) was held in collateral. The collateral was held in the form of cash (in GBP, USD or EUR), government securities issued by any of the OECD countries or equity securities listed and/or traded on an exchange in the following countries: Australia, Canada, Hong Kong, Japan, New Zealand, Singapore, Switzerland and USA.
The value of collateral in respect of the securities on loan was not less than the value of the securities lent at the balance sheet date or during the period.
The maximum aggregate value of securities on loan at any time during the accounting period was £32,540,000.
The gross earnings and the fees paid for the year are £24,000 (2019: £36,000) and £5,000 (2019: £9,000).
Note 18: Post balance sheet events
On 2 April 2020 the Board declared a fourth interim dividend of 1.50p per share.
As at 6 April 2020, the Company bought back a further 58,521 ordinary shares at an average price of 262.5p per share and issued from Treasury 500,000 ordinary shares at an average price of 318.6p per share, resulting in a further net addition of £1,439,000 to the special distributable reserve.
Following the year end, the world has experienced the rapid spread of the highly contagious novel coronavirus Covid-19 which has become a pandemic affecting all countries including the major global economies. There is currently no vaccine or widespread testing for the virus and accordingly many governments and other authorities have imposed lockdown on citizens as well as social distancing requirements. This has caused an almost complete cessation of economic activity in many sectors and a very significant slowdown in others across the globe simultaneously. Global equity markets have fallen sharply and market stability has been impacted with high levels of volatility. In response to the global economic shock, unprecedented monetary and fiscal policy interventions have taken place across the globe, with the likelihood that further interventions may prove necessary. The actual and potential consequences arising from this health crisis, to the extent that they can be foreseen currently, are wide-ranging and severe.
The situation continues to evolve rapidly. Further information on Covid-19, the uncertainties created and the outlook for companies is included in the Manger's review on page 5. It is not possible to assess the duration or the full extent of the impact that Covid-19 might have globally or its medium term to longer-term implications. The Chairman's statement on page 3, the Manager's review on page 5 and the Principal and emerging risks and uncertainties on page 15 contain further details. The potential effect of Covid-19 on the operational resilience of the Company's key service providers and the Board's review of their mitigation measures and business continuity arrangements is referred to on page 15.
Between 1 February 2020 and 7 April 2020 the net asset of the Company fell from £251,695,000 to £234,498,000 a fall of 6.8% and the cum-income NAV per share (as published by the AIC) fell 7.3% from 301.9p to 279.8p.
The Directors have concluded that the developments in the global financial markets after the year end did not provide evidence of conditions that existed at the end of the reporting period and have therefore assessed any impact they had as non-adjusting.
Website
The Company has its own dedicated website at www.martincurrieglobal.com . This offers shareholders, prospective investors and their advisors a wealth of information about the Company. Updated daily it includes the following: latest prices, performance data, latest factsheet, research, portfolio information, press releases and articles, the manager's latest views and annual and half yearly reports.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
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