Half Yearly Report

RNS Number : 5537M

Martin Currie Global Portfolio Tst

18 September 2012

 



Martin Currie Global Portfolio Trust plc

Half-yearly financial report

Six months to 31 July 2012

A copy of the Half Year report for the six months ended 31 July 2012 has been submitted to the National Storage Mechanism.  This will be available for viewing at http://www.hemscott.com/nsm.do

A copy of this half year report can be downloaded at www.martincurrieportfolio.com.

Financial Summary

Key data

	As at 31 July 2012	As at 31 January 2012
Net asset value per share (cum income)	141.1p	139.2p
Net asset value per share (ex income)	138.9p	136.3p
FTSE World index (capital)	344.4	341.4
Share price	128.8p	129.0p
Discount*	8.7%	7.3%

Total returns+

	Six months ended 31 July 2012	Six months ended 31 July 2011
Net asset value per share***	4.0%	2.5%
Benchmark #	2.6%	0.8%
Share price	2.0%	2.6%

Income

	Six months ended 31 July 2012	Six months ended 31 July 2011
Revenue per share~	2.20p	2.52p
Dividend per share	1.20p	1.00p

Ongoing charges**

	Six months ended 31 July 2012	Six months ended 31 July 2011
Ongoing charges	0.8%	0.9%
Performance Fee	0.2%	-
Ongoing charges plus performance fee	1.0%	0.9%

*Figures shown are inclusive of income as per AIC guidance.  The discount calculated, exclusive of income, was 7.3% (31 January 2012: 5.3%).

+The combined effect of the rise or fall in the share price, net asset value or benchmark # together with any dividend paid.

# Prior to 31 May 2011, the company's benchmark was the FTSE All-Share index and the FTSE World index thereafter.

~ For details of the calculation, refer to note 2.

**Ongoing charges (as a percentage of shareholders' funds) are calculated using average net assets over the period.  The ongoing charges figure has been calculated with the AIC's recommended methodology.

*** The net asset value is exclusive of income with dividends re-invested.

Chairman's Statement

Welcome to the latest half-yearly report, covering the six months to 31 July 2012 and my first since becoming chairman of your company.  I am pleased to report a good six months for the trust.  Over the period, the net asset value (NAV) per share increased by 4.0% against a benchmark return of 2.6%.

The company has outperformed the benchmark on a NAV per share basis over both the first half of the current year and the 12 months to 31 July 2012*.  Tom Walker describes the background to this result and his outlook for the future in his manager's review of this report.

In summary, despite the difficult market conditions and generally weak economic growth, the manager's careful selection of stocks from the global equity markets has produced another good overall result reflecting the benefits that the Board expected when choosing to become a truly global equity investment trust just over a year ago.

Dividends

The company will pay an interim dividend of 1.20p (2011: 1.0p) on 25 October 2012 to shareholders on the register as at 5 October 2012.

Looking ahead

The many uncertainties facing the world are contributing to sluggish economic growth, despite governments providing sustained monetary stimulus.  So far these efforts have not had much effect on economic growth, although the capital markets have no doubt benefitted.  Time will tell whether the latest salvo by the Federal Reserve in September will receive better results.

Despite this difficult environment, we believe that the outlook for returns from well selected global equities based on companies which are well capitalised, have strong cash flows and are well-led, continues to be an attractive proposition.

Neil Gaskell

Chairman

18   September 2012

*Prior to 31 May 2011, the company's benchmark was the FTSE All-Share index and the FTSE World index thereafter.

Manager's Review

The first half of our fiscal year has, once again, been dominated by the various shades of economic stress being experienced by different countries around the world.  Central banks are doing their best to keep the wheels turning by maintaining loose monetary policy or, in the case of some emerging countries, adopting more lenient policies after a period of tightening.  As a result, perceived safe haven bond markets, like US treasuries and UK gifts, have seen yields falling to record low levels.  World equity markets have risen in the period (FTSE World index up 2.6%), largely thanks to a good move higher in the USA (up 6.0%).

In many ways, markets have followed a similar pattern to last year, weakening in the Spring after a strong start to the year.  As last year, economic expectations have deteriorated in recent months but markets have been more resilient than a year ago because initial expectations were considerably lower than they had been a year earlier.  However, the issues of fiscal deficit, slow growth and eurozone disharmony remain the same and that is a frustration.

Our portfolio outperformed the benchmark during the period. Although the final outcome was a small rise in the market and our NAV over the six months, the high point was achieved in March since when markets fell and then partially recovered. This reflects the lack of confidence and certainly the types of company that performed best were those that have more visible earning and cash flow. In the case of our portfolio, Apple, Sempra Energy (utility), Philip Morris International (tobacco), Anheuser Busch Inbev (beer) and Woolworths (Australian supermarket/retailer) were our top contributors. At the other end of the scale, nervousness about emerging market currencies and growth impacted our worst five contributors. They were NII Holdings and Petrobras (South America), Astra International (Indonesia), Gazprom (Russia) and Rio Tinto, whose share price is largely driven by the view on Chinese demand for commodities.

During the six month period, changes to the portfolio were driven by individual stock preferences and, strategically, the portfolio remains cautiously positioned, being underweight in banks and the consumer sectors. New holdings include Safran, the industrial manufacturer, Cognizant Technology Solutions, the IT services company and Lyondell Basell, the chemicals company that is benefitting from cheap gas prices in the USA. We sold Nintendo, which has been disappointing and looks unlikely to recover near term. Geographical allocation has less meaning in today's 'globalised' market place but, for interest, the portfolio is broadly neutral between emerging and developed markets and an overweight position in the UK is largely funded through underweights in continental Europe and Japan.

Outlook

The investment outlook continues to be muddied by the lack of progress in resolving the eurozone conundrum. Additionally, as we move closer to the end of the year, headlines on policy differences between the two US presidential candidates may not help to soothe market nervousness. So I expect the market to remain within a range near term, perhaps 10% plus or minus . Companies lack visibility going into the second half of 2012 and beyond so many management groups are budgeting carefully, delaying investment decisions and accumulating cash on their balance sheet. In many cases, share buy backs and/or increased dividend payments are the best use of cash in this environment. This is good for profitability and shareholders but not for economic growth.

As equity investors, we can still find many companies prospering in the sluggish growth environment and valuations are by no means stretched. Exuberance, irrational or otherwise, seems a distant prospect but at a time when few assets offer any sort of return, global equities can be rewarding to the long-term investor.

Tom Walker

18 September 2012

Risk and mitigation

The board closely monitors the risks of the company at regular board meetings. The board also carries out a risk workshop as part of its annual strategy meeting and has identified the following as key risks to the company. The board has also implemented specific mitigating measures to reduce the probability and impact of each risk to the greatest extent possible. The board recognises that risks to the company are not static. The board reconsiders and assesses each risk at the annual strategy meeting.

The board considers the key ongoing risks to be

·      Regulatory change                                

·      Maintaining market liquidity

·      Loss of s1158-1159 status

·      Operational disruption at the manager's premises

·      Regulatory, accounting/internal control breach

·      Loss of investment team or portfolio manager

·      Failure to manage the discount

·      Investment underperformance

·      Gearing/interest rate risk

·      Counterparty and operational risk

Further details of these risks and how the board manages them can be found in the 2012 Annual report and on the company's website www.martincurrieglobal.com

Directors' Responsibilities

In accordance with Chapter 4 of the Disclosure and Transparency Rules, and to the best of their knowledge, each director of Martin Currie Global Portfolio, confirms that the financial statements have been prepared in accordance with the UK accounting standards and with the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies and Venture Capital Trusts' issued in January 2009 and give a true and fair view of the assets, liabilities, financial position and net return of the company. Furthermore, each director certifies that the interim management report includes an indication of important events that have occurred during the first six months of the financial year, and their impact on the financial statements, together with a description of the principal risks and uncertainties that the company faces. In addition, each director of Martin Currie Global Portfolio confirms that there have been no related party transactions during the first six months of the financial year.

By order of the board

Neil Gaskell

Chairman

Edinburgh 18 September 2012

 

Portfolio Summary

Portfolio distribution

By Region	31 July 2012 Company %	FTSE World   31 July 2012 %	31 January 2012 Company %	FTSE World 31 January 2012 %
North America	47.7	52.7	47.3	51.0
United Kingdom	20.5	8.7	19.7	8.8
Developed Europe ex UK	13.0	15.6	9.6	16.6
Developed Asia Pacific ex Japan	10.3	8.6	11.4	8.4
Global emerging markets	6.1	6.9	7.7	7.0
Japan	2.4	7.5	4.3	7.9
	100.0	100.0	100.0	100.0

By Sector (excluding cash and private equity)	31 July 2012 Company	31 July 2012 FTSE World	31 January 2012 Company	31 January 2012  FTSE World
Industrials	17.0%	12.3%	16.1%	12.1%
Technology	12.6%	11.9%	11.7%	10.7%
Oil and gas	12.4%	9.2%	12.9%	10.8%
Financials	11.8%	19.9%	10.4%	19.4%
Basic materials	10.8%	6.5%	9.4%	7.4%
Consumer services	9.1%	10.4%	9.2%	9.8%
Healthcare	8.3%	9.2%	9.7%	8.6%
Telecommunications	7.3%	4.0%	8.4%	4.2%
Consumer goods	6.9%	12.9%	8.7%	12.7%
Utilities	3.8%	3.7%	3.5%	3.8%

By Asset Class (including cash and borrowings)	31 July 2012	31 January 2012
Equities	99.0%	97.5%
Cash	1.0%	2.5%
	100.0%	100.0%

Largest 10 Holdings	31 July 2012 Market Value £000	31 July 2012 % of total portfolio	31 January 2012 Market Value £000	31 January 2012 % of total portfolio
Apple	7,880	5.4	7,033	4.9
Phillip Morris International	5,045	3.5	4,860	3.4
Royal Dutch Shell	4,588	3.1	4,708	3.3
Sempra Energy	4,071	2.8	3,264	2.3
Prudential	3,930	2.7	2,154	1.5
Seadrill	3,856	2.6	2,435	1.7
McDonalds	3,659	2.5	4,636	3.3
Pfizer	3,630	2.5	3,214	2.2
PT Astra International	3,440	2.4	4,369	3.1
United Technologies	3,407	2.3	3,559	2.5

Unaudited Income Statement

		Six months to 31 July 2012			Six months to 31 July 2011
	Note	Revenue £000	Capital £000	Total £000	Revenue £000	Capital £000	Total £000
Net gains on investments	5	-	2,978	2,978	-	2,505	2,505
Net currency losses	8	-	(5)	(5)	-	(320)	(320)
Income	3	2,899	-	2,899	3,261	-	3,261
Investment management fee		(120)	(240)	(360)	(122)	(244)	(366)
Performance fee		-	(263)	(263)	-	-	-
Other expenses		(237)	-	(237)	(272)	-	(272)
Net return on ordinary activities before taxation		2,542	2,470	5,012	2,867	1,941	4,808
Taxation on ordinary activities	4	(245)	-	(245)	(161)	-	(161)
Return attributable to shareholders		2,297	2,470	4,767	2,706	1,941	4,647
Returns per ordinary share	2	2.20p	2.36p	4.56p	2.52p	1.81p	4.33p

Unaudited income statement cont.

		(Audited) Year to 31 January 2012
	Note	Revenue £000	Capital £000	Total £000
Net gains on investments	5	-	4,681	4,681
Net currency losses	8	-	(307)	(307)
Income	3	5,198	-	5,198
Investment management fee		(239)	(477)	(716)
Performance fee		-	(960)	(960)
Other expenses		(515)	-	(515)
Net return on ordinary activities before taxation		4,444	2,937	7,381
Taxation on ordinary activities	4	(314)	-	(314)
Return attributable to shareholders		4,130	2,937	7,067
Returns per ordinary share	2	3.88p	2.76p	6.64p

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.

All revenue and capital items in the above statement derive from continuing operations.

No operations were acquired or discontinued in the six months.

The notes form part of these financial statements.

A Statement of total recognised gains and losses is not required as all gains and losses of the company have been reflected in the above statement.

Unaudited Balance Sheet

		As at 31 July 2012		As at 31 July 2011		(Audited) as at 31 January 2012
	Note	£000	£000	£000	£000	£000	£000
Fixed assets
Investments at fair value through profit or loss
Listed on the London Stock Exchange			29,945		30,864		28,228
Listed on exchanges abroad			116,111		112,523		114,658
	5		146,056		143,387		142,886
Current Assets
Debtors and prepayments	6	334		461		182
Cash at bank		1,533		2,561		3,728
		1,867		3,022		3,910
Creditors
Amounts falling due within one year	7	(518)		(349)		(1,259)
Net current assets			1,349		2,673		2,651
Total assets less current liabilities			147,405		146,060		145,537
Capital and Reserves
Called-up share capital		5,227		5,304		5,227
Special distributable reserve		116,454		118,413		116,530
Capital redemption reserve		10,790		10,713		10,790
Capital reserve		8,408		4,942		5,938
Revenue reserve		6,526		6,688		7,052
Total Shareholders' Funds			147,405		146,060		145,537
Net asset value per ordinary share	2		141.1p		137.7p		139.2p

Unaudited Reconciliation of Movements in Shareholders' Funds

Reconciliation of movements in shareholders' funds for the six months to 31 July 2012	Called up ordinary share capital £000	Capital redemption reserve £000	Special distributable reserve £000	Capital reserve £000	Revenue Reserve £000	Total £000
At 31 January 2012	5,227	10,790	116,530	5,938	7,052	145,537
Ordinary shares bought back during the period	-	-	(76)	-	-	(76)
Gains on realisation of investments at fair value	-	-	-	795	-	795
Movement in currency gains/(losses)	-	-	-	(5)	-	(5)
Movement in fair value gains/(losses)	-	-	-	2,160	-	2,160
Capitalised expenses	-	-	-	(503)	-	(503)
Capital dividends received	-	-	-	23	-	23
Net revenue	-	-	-	-	2,297	2,297
Dividends Paid	-	-	-	-	(2,823)	(2,823)
At 31 July 2012	5,227	10,790	116,454	8,408	6,526	147,405

Reconciliation of movements in shareholders' funds for the six months to 31 July 2011	Called up ordinary share capital £000	Capital redemption reserve £000	Special distributable reserve £000	Capital reserve £000	Revenue Reserve £000	Total £000
At 31 January 2011	5,449	10,568	122,062	3,001	6,651	147,731
Ordinary shares bought back during the period	(145)	145	(3,649)	-	-	(3,649)
Gains on realisation of investments at fair value	-	-	-	16,565	-	16,565
Gaines on realisation of forward foreign exchange contracts	-	-	-	610	-	610
Movement in currency gains/(losses)	-	-	-	(320)	-	(320)
Movement in fair value gains/(losses)	-	-	-	(14,670)	-	(14,670)
Capitalised expenses	-	-	-	(244)	-	(244)
Net revenue	-	-	-	-	2,706	2,706
Dividends paid	-	-	-	-	(2,669)	(2,669)
At 31 July 2011	5,304	10,713	118,413	4,942	6,688	146,060

Reconciliation of movements in shareholders' funds for the year to 31 January 2012	Called up ordinary share capital £000	Capital redemption reserve £000	Special distributable reserve £000	Capital reserve £000	Revenue Reserve £000	Total £000
At 31 January 2011	5,449	10,568	122,062	3,001	6,651	147,731
Ordinary shares bought back during the year	(222)	222	(5,532)	-	-	(5,532)
Gains on realisation of investments at fair value	-	-	-	16,117	-	16,117
Gain on realisation of forward foreign exchange contracts	-	-	-	611	-	611
Movement in currency gains/(losses)	-	-	-	(307)	-	(307)
Movement in fair value gains/(losses)	-	-	-	(12,047)	-	(12,047)
Capitalised expenses	-	-	-	(1,437)	-	(1,437)
Net revenue	-	-	-	-	4,130	4,130
Dividends Paid	-	-	-	-	(3,729)	(3,729)
At 31 January 2012	5,227	10,790	116,530	5,938	7,052	145,537

Unaudited Statement of Cash Flow

	Note	Six months to 31 July 2012		Six months to 31 July 2011		(Audited) Year to 31 January 2012
		£000	£000	£000	£000	£000	£000
Net cash inflow from operating activities	8		901		2,197		3,661
Capital expenditure and financial investment
Capital distributions	2	23		-		-
Payment to acquire investments		(22,088)		(86,096)		(100,808)
Proceeds from sale of investments		21,873		90,939		108,327
Net gain from forward foreign currency exchange contracts		-		1,225		1,226
Net cash (outflow)/inflow from capital expenditure and financial investment			(192)		6,068		8,745
Equity dividends paid			(2,823)		(2,669)		(3,729)
Net cash (outflow)/inflow before financing			(2,114)		5,596		8,677
Financing
Repurchase of ordinary share capital			(76)		(3,605)		(5,532)
(Decrease)/ Increase in cash			(2,190)		1,991		3,145
Reconciliation of net cash flow to movements in net cash
(Decrease)/increase in cash			(2,190)		1,991		3,145
Foreign exchange movements			(5)		(320)		(307)
Movement in net cash in the period			(2,195)		1,671		2,838
Opening net cash			3,728		890		890
Closing net cash			1,533		2,561		3,728

 

Notes to the Financial Statements

1          Accounting policies

a)   Basis of preparation - the financial statements have been prepared under the historical cost convention (modified to include investments at fair value through profit or loss) on a going concern basis and in accordance with applicable UK Accounting Standards and with the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies and Venture Capital Trusts' issued in January 2009.  They have also been prepared on the assumption that approval as an investment trust will continue to be granted.  The company is a UK listed company with a predominantly UK shareholder base.  The results and the financial position of the company are expressed in sterling, which is the functional and presentational currency of the company.  The accounting policies have been disclosed consistently and in line with Companies Act 2006.

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.  Franked investment income is stated net of the relevant tax credit.  Other income includes any taxes deducted at source.  Special dividends are the shares received over the amount of the cash dividend is recognised as a capital item in the income statement.  Income from underwriting commission is recognised as earned.

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 in the income statement in accordance with the board's expected long-term split of returns in the form of capital gains and income, respectively.  The performance fee is recognised 100% as a capital item in the income statement as it relates entirely to the capital performance of the company.  All expenses are charged to revenue except where they directly relate to the acquisition or disposal of an investment, in which case, they are added to the cost of the investment or deducted from the sale proceeds.

e)   Investments - investments have been designated upon initial recognition as fair value through profit or loss.  Investments are recognised and de-recognised 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 income statement and are ultimately recognised in the capital reserve.

In accordance with FRS 29, all investments have been categorised as Level 1 - quoted in an active market.

f)    Transaction costs incurred on the purchase and disposal of investments are recognised as a capital item in the income statements.

g)   Monetary assets and liabilities expressed in foreign currencies are translated into sterling rates of exchange ruling at the date of the balance sheet or the related forward contract rate.  Transactions in foreign currency are converted to sterling at the rate ruling at the date of the transaction or, where forward foreign currency contracts have been taken out, at contractual rates and included as an exchange gain or loss in the capital reserve or the revenue account depending on whether the gain or loss is of a capital or revenue nature.

h)   Cash at bank and in hand 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.

Other debtors and creditors (excluding borrowings) do not carry any interest, are short-term in nature and are accordingly stated at nominal value as reduced by appropriate allowances for estimated irrecoverable amounts.

i)    Dividend payable - under FRS21 final dividends should not be accrued in the financial statements unless they have been approved by shareholders before the Balance Sheet date.  Interim dividends are only recognised when they have been paid.  Dividends payable to equity shareholders are recognised in the Reconciliation of Movements in Shareholders' Funds when they have been approved by shareholders in the case of a final dividend, or paid in the case of an interim dividend and become a liability of the company.

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 and 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 buybacks include the amount of consideration paid, including directly attributable costs and are deducted from the special distributable reserve until the shares are cancelled.

k)   Deferred taxation - deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events that result  in an obligation to pay more or a right to pay less tax in the future have occurred at the balance sheet date measured on an undiscounted basis and based on enacted tax rates.  This is subject to deferred tax assets only being recognised 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.

2. 

	Six months to 31 July 2012	Six months to 31 July 2011	Year to 31 January 2012
Returns and net asset value
The return and net asset value per ordinary share are calculated with reference to the following figures:
Revenue return
Revenue return attributable to ordinary shareholders	£2,297,000	£2,706,000	£4,130,000
Weighted average number of shares in issue during period	104,537,621*	107,462,636	106,432,137
Return per ordinary share	2.20p	2.52p	3.88p
Capital return
Capital return attributable to ordinary shareholders	£2,470,000	£1,941,000	£2,937,000
Weighted average number of shares in issue during period	104,537,621*	107,462,636	106,432,137
Return per ordinary share	2.36p	1.81p	2.76p
Total return
Total return per ordinary shares	4.56p	4.33p	6.64p
	As at 31 July 2012	As at 31 July 2011	As at 31 January 2012
Net asset value per share
Net assets attributable to ordinary shareholders	£147,405,000	£146,060,000	£145,537,000
Number of shares in issue at the period end	104,493,171	106,082,413	104,553,171
Net asset value per share	141.1p	137.7p	139.2p

During the six months to 31 July 2012 there were 60,000 shares bought back into Treasury at a cost of £76,000.  There were no share buy backs between 1 August and 17 September 2012.

* calculated excluding shares held in treasury

3. 

	Six months to 31 July 2012 £000	Six months to 31 July 2011 £000	Year to 31 January 2012 £000
Income from investments
From listed investments
UK equities	597	1,789	2,303
International equities	2,299	1,468	2,888
Other income
Interest on deposits	3	4	7
	2,899	3,261	5,198

During the six months ended 31 July 2012, the company received capital dividends of £8,000 and £15,000 from GlaxoSmithKline and Seadrill respectively.  There were no capital distributions received during the year to 31 January 2012.  Capital distributions are shown in the analysis of the capital reserve.

The change of mandate in 2011 has impacted the timing of entitlement to dividend income.

4.

	Six months to 31 July 2012			Six months to 31 July 2011			Year to 31 January 2012
	Revenue £000	Capital £000	Total £000	Revenue £000	Capital £000	Total £000	Revenue £000	Capital £000	Total £000
Taxation on ordinary activities
Foreign Withholding Tax	245	-	245	161	-	161	314	-	314

5.

	Six months to 31 July 2012 £000	Six months to 31 July 2011 £000	Year to 31 January 2012 £000
Investments
Opening valuation	142,886	146,260	146,260
Opening unrealised investment holding gains	(13,645)	(25,692)	(25,692)
Opening cost	129,241	120,568	120,568
Purchases at cost	22,088	86,096	100,808
Disposal proceeds	(21,873)	(90,864)	(108,252)
Less: net profit on disposal of investments	795	16,565	16,117
Disposal at cost	(21,078)	(74,299)	(92,135)
Closing cost	130,251	132,365	129,241
Closing unrealised investment holding gains	15,805	11,022	13,645
Valuation at end of period	146,056	143,387	142,886
	£000	£000	£000
Gain on investments
Net profit on disposal of investments	795	16,565	16,117
Net gain/(loss) on revaluation of investments	2,160	(14,670)	(12,047)
Net gain on realisation of forward foreign exchange contracts	-	1,225	1,226
Net loss on revaluation of forward foreign exchange contracts	-	(615)	(615)
Capital distributions	23	-	-
	2,978	2,505	4,681

The transaction cost in acquiring investments during the period was £53,000 (2011: £82,000).  For disposals, transaction costs were £32,000 (2011: £41,000).

6. 

	As at 31 July 2012 £000	As at 31 July 2011 £000	As at 31 January 2012 £000
Debtors: amounts falling due within one year
Dividends receivable	228	380	114
Interest accured	-	-	1
Taxation recoverable	83	44	37
Other debtors	23	37	30
	334	461	182

7.

	As at 31 July 2012 £000	As at 31 July 2011 £000	As at 31 January 2012 £000
Creditors: amounts falling due within one year
Due to brokers for repurchase of ordinary shares	-	44	-
Due to Martin Currie	463	197	1,156
Other creditors	55	108	103
	518	349	1,259

8. 

	Six months to 31 July 2012 £000	Six months to 31 July 2011 £000	Year to 31 January 2012 £000
Reconciliation of net return before finance costs and taxation to net cash inflow from operating activities
Return on ordinary activities before finance costs and taxation	5,012	4,808	7,381
Adjustments for:
Gains on investments	(2,978)	(2,505)	(4,681)
Effect of foreign exchange rates	5	320	307
Increase in dividends receivable, interest accrued and other debtors	(106)	(278)	(6)
(Decrease)/increase in other creditors and amounts due to Martin Currie	(741)	28	982
Overseas withholding tax suffered	(291)	(176)	(322)
Net cash inflow from operating activities	901	2,197	3,661

9 Interim report

The financial information contained in this half-yearly financial report does not constitute statutory accounts as defined in s434 - 436 of the Companies Act 2006. The financial information for the six months ended 31 July 2012 has not been audited.

The information for the year ended 31 January 2012 has been extracted from the latest published audited financial statements which have been filed with the Registrar of Companies. The report of the auditors on those accounts contained no qualification or statement under s498 (2), (3) or (4) of the Companies Act 2006.

 

END

 

 

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