Annual Financial Report Announcement
MIDAS INCOME AND GROWTH TRUST PLC
AUDITED ANNUAL FINANCIAL REPORT
for the year ended 30 April 2011
1. CHAIRMAN'S STATEMENT
Highlights
- Net asset value total return of 9.6%
- Share price total return of 4.3%
- Share price discount to net asset value widened to 9.5%
- Quarterly dividends maintained at 1.63p
I am pleased to report that the Company's net asset value total return for the period (including dividends) was 9.6%. This compares favourably with the benchmark return of 8%. The share price total return (with dividends reinvested) gave a total return of 4.3%, which is a little disappointing and was due to the widening of the discount to net asset value towards the end of the year.
Financial markets fell sharply early in the period, but have since made steady progress. This improvement has been made against a background of generally better profits from the corporate sector, helped in no small part by re-stocking rather than a major shift in demand. However, investor sentiment has regularly been tested due to growing uncertainties regarding the debt and economic position of several peripheral European countries; political unrest in the Middle East; and the tragic events surrounding the earthquake and subsequent tsunami in Japan. In addition investors have had to cope with concerns regarding the slowdown in the Chinese economy, as the authorities increased interest rates to attempt to control inflation. The prospects for growth in the UK domestic economy have also given cause for concern as the coalition Government's austerity measures begin to take effect.
Equity markets have outperformed bonds over the course of the year, as the period has largely been positive for risk assets. Equity leadership has changed somewhat with developed markets coming more into favour as the period progressed, at the expense of emerging markets. This shift in sentiment was caused by mounting social and political tensions in North Africa and the Middle East. Fears of a 'hard landing' for the important Chinese economy have also undermined confidence in the short term prospects for the emerging economies.
Gearing
The Company's £7 million rolling debt facility remained fully drawn over the year. End of year gearing (pre cash) was 14%, down from 15% at 30 April 2010. Gearing has remained well within the Board's stated maximum of 25% throughout the year.
Exercise of Warrants
The Company's Warrants expired on 31 August 2010 with all Warrants being exercised. Any Warrant holders not taking up their right to exercise should by now have received a payment of 10.4p per Warrant held, being the price (less costs) received on the sale through the market of the shares resulting from their Warrants. The full exercise of Warrants led to an increase in net assets of £1,929,000.
Dividends
Three interim dividends of 1.63p were declared during the year, which together with the 4th interim dividend of 1.63p announced on 11 May 2011 (paid on 17 June 2011), give total dividends of 6.52p, the same level as paid last year representing a yield of 5.6% at the year end. The revenue position of the Company has continued to improve over the course of the year, despite the cut in dividends paid by BP following their much publicised problems in the Gulf of Mexico. However, it has again been necessary to utilise part of the Company's revenue reserves to maintain dividend payments this year. Your Board remains fully aware of the importance of the quarterly payments to many of the Company's shareholders and will continue to closely monitor the revenue position.
Repayment of VAT and Related Interest on Management Fees
On 19 November 2010 the Company received a payment of £49,016 from Aberdeen Asset Managers Limited (the former manager), representing the full and final settlement of the VAT paid on management fees in respect of (i) 1990 to 1996 and (ii) 2001 to 2007. The cumulative amount repaid by Aberdeen is £222,837. In addition further payments of £48,164 and £2,322 were made by Aberdeen in February and May 2011 in respect of simple interest claimed from HMRC on VAT paid between 1 January 1990 to 4 December 1996 ('the Fleming period') and 1 January 2001 onwards ('the Claverhouse period').
Share Buy Backs
There were no share buy backs during the financial year. However, 150,000 shares were bought back for cancellation on 19 May 2011 as the share price discount to net asset value widened to over 11%. Your Board and Manager remain committed to supporting the level of discount at which the Company's shares trade and will be seeking a renewal of the share buyback facility at the Annual General Meeting in August 2011.
Annual General Meeting
This year's Annual General Meeting will be held at 12.30 p.m. on 25 August 2011 at the offices of Aberdeen Asset Management PLC, Bow Bells House, 1 Bread Street, London EC2M 9HH. I would be delighted if shareholders were to take this opportunity to meet with Board members and the Investment Manager over a post AGM buffet lunch.
Outlook
This year has been one of steady progress for the Company. Your Manager has increasingly felt that a cautious approach is warranted, given the myriad of potential problems and headwinds which may yet impede economic recovery and destabilise markets. Whilst there remain good reasons to retain exposure to risk assets, emphasis has been placed on providing some protection against the build up of inflationary pressures and consequent interest rate increases. Your Manager firmly believes that investing for income will be important in determining the level of investment returns over the next few years and as such the Company's mandate is well suited to what may prove a fairly difficult period for investors.
Hubert Reid
Chairman
22 June 2011
2. MANAGER'S REVIEW
Market Background
Markets have recovered from early sharp falls in May 2010, which were largely caused by concerns over the sovereign debt problems in the peripheral European countries. The recovery from the low levels in early June has been punctuated by periods of weakness. Investors have grappled with the prospect of a slowdown in economic growth in China, as monetary conditions have been tightened to control inflation and mixed economic data emerging from the developed economies. The most significant event over the latter part of the period was the earthquake and subsequent tsunami which so tragically hit Japan. The effects of this event are still being felt by global manufacturers linked into the Japanese supply chain. Nonetheless the year has been mainly a period of 'risk on' with investor sentiment proving resilient in the face of some quite powerful headwinds.
Performance
Against this background the Company's net asset value has made steady progress, whilst the income position within the portfolio has continued to improve. The net asset value has also demonstrated a degree of resilience to market setbacks and finished the year at the highest levels achieved during the period.
The Company's net asset value total return of 9.6% over the year was evenly split between contributions from capital growth and income. This return has continued to build on the very strong performance achieved in the previous financial year. It is disappointing to report that the share price total return of 4.3% was lower due to a widening of the discount on the Company's shares, which moved from a 4.6% discount at the start of the year to end the period trading at a 9.5% discount.
The defensive stance towards equity positions has acted as something of a drag on performance. However, we believe that the strong recovery in equity markets seen over the past two years may now give way to a period of more directionless trading. Whilst we believe that equities offer selectively better value than other assets in the current environment, emphasis within the portfolio has been placed on producing a healthy and growing dividend stream. We believe this strategy is best served by concentrating on blue chip, internationally exposed holdings within the UK element of the portfolio. Portfolio exposure has also been increased to managers whose investment strategies can deliver positive returns in less buoyant market conditions. Several new holdings have been introduced to provide protection against inflation and a consequent higher interest rate environment.
The revenue account has continued to recover from the stresses of 2008, although not helped by the suspension in dividends made by BP following the catastrophe in the Gulf of Mexico. Whilst the Trust's dividend will again not be fully covered this year, we are increasingly confident that the combination of dividend growth within the Company's equity holdings, coupled with other income improvements building within the portfolio, should lead to a covered position over the next two years.
Asset Allocation
The Company's exposure to equities has been gradually reduced over the course of the year as markets recovered from the sharp falls experienced in May/June 2010. Our preference for equity related exposure within the portfolio has been emphasised through the private equity holdings, which still offer potential for recovery from relatively depressed levels.
The poor outlook for the domestic economy has led us to concentrate the UK equity portfolio towards large multi-national companies able to take advantage of better economic conditions in other parts of the world. Emphasis remains centred on well financed, cash generative businesses with the ability to grow dividends over the medium term. UK equity holdings have moved more towards defensive sectors such as pharmaceuticals and consumer staples, whilst potential for long term developments within emerging markets has been emphasised through two specialist fund management groups. Exposure to UK equities has fallen by 4% over the course of the year.
Overseas equity exposure has also been reduced and there has been a shift away from some of the closed ended vehicles held previously, particularly those trading at a premium to net asset value. We have sought to hedge currency exposure to some degree in Europe and more particularly in Japan, in the belief that both currencies are likely to come under pressure after prolonged periods of outperformance. Some use is being made within the overseas equity portfolio of managers utilising 'covered call' strategies to enhance income generation. Whilst this may restrict capital gains to some degree, the consistency of returns is likely to be higher than would otherwise be the case.
Fixed interest exposure has been reduced slightly, with investment grade corporate debt now looking to have fully recovered from the severe dislocations seen in late 2008 and early 2009. Emphasis has been increased on shorter maturity corporate issues, which offer less interest rate risk (and indeed in some areas may benefit from rises in borrowing costs). Sub- investment grade corporate bonds exposure has been retained, with yields still appearing relatively attractive, particularly so when compared to Gilts.
Alternative asset exposure increased over the period, due in part to strong returns from the private equity and hedge fund holdings. A new structured product was also commissioned early in the year, replacing a similar product which successfully matured in the previous financial year.
Property exposure has been increased, although this has been achieved through the introduction of two new very specific, defensively structured investments with good income potential.
The asset allocation across the portfolio at 30 April 2011 is shown in the table below.
|
|
Portfolio Weight |
Core Allocation |
Range |
|
Asset Class |
% |
% |
% |
|
UK Equities |
28.1 (31.9) |
35 |
20-55 |
|
Overseas Equities |
17.6 (19.7) |
15 |
10-25 |
|
Total Equities |
45.7 (51.6) |
50 |
30-80 |
|
Fixed Interest (inc Cash) |
21.1 (22.8) |
25 |
15-45 |
|
Alternative Assets |
22.4 (17.7) |
15 |
10-25 |
|
Property |
10.8 (7.9) |
10 |
0-25 |
All figures are expressed as a percentage of gross assets.
30 April 2010 figures are shown in brackets.
UK Equities
The UK equity weighting reduced over the year, in most part due to slightly disappointing relative performance, particularly over the first 3 quarters. The portfolio's emphasis on blue chip, defensive companies (such as Tesco, GlaxoSmithKline, AstraZeneca and Unilever) and an underweight stance in more cyclical sectors, proved costly to performance. However, there were signs towards the end of the period that investors had shifted attitude. The concerns over the outlook for growth in China and political tensions in the Middle East dampened sentiment, highlighting the attractions of the more defensive sectors of the market.
The UK portfolio benefitted from strong dividend growth over the period, with the only disappointment being the decision by BP to suspend dividend payments following the events in the Gulf of Mexico. Despite some price recovery, BP remained the biggest drag on performance over the period, with part of the holding eventually being sold into the price recovery. Elsewhere strong performance was recorded by Ashmore Group, the specialist emerging market asset manager, which offers an attractive combination of strong management, healthy cash-flows and dividends, together with exposure to the growth and development of capital markets in the developing economies. Other major contributions to performance came from Legal & General, Scottish & Southern Energy and Vodafone.
The latest addition to the UK portfolio was Reckitt & Benckiser, which has been substantially de-rated over the past two years. The company offers potential to benefit from the growth in consumer spending in the developing economies, has a strong balance sheet and should deliver healthy dividend growth. Profits have been taken on Royal Dutch Shell and BHP Billiton to reduce commodity exposure following a period of strong performance.
Overseas Equities
Exposure to overseas equity markets also reduced, as holdings proved too defensive in the risk on environment prevalent for most of the period. Additional capital was allocated to emerging markets through the acquisition of the Somerset Emerging Market Income Fund, an open ended fund investing across a wide range of developing markets. Asian equity exposure has also been increased, although this was achieved by allocating new investment to the Schroder Asian Income Maximiser Fund, which operates a covered call strategy to enhance income returns and dampen volatility. A new investment was made in the Newton Asian Income Fund, which has achieved top decile returns over a long period despite its income mandate. These investments were partly funded by a reduction of the Schroder Oriental Income Fund holding and the sale of the Aberdeen Asian Income Fund, both being closed-ended vehicles trading at a premium to net asset value. We have also taken steps to hedge currency exposure within the Japanese and European equity holdings by switching into hedged shares classes within the Lindsell Train Japanese Equity Fund and Ignis Argonaut Enhanced Income Fund. European exposure was reduced with the sale of the European Assets Trust following a period of strong performance. In addition the holding in the Merrill Lynch DJ Eurostoxx structured product was sold, also after a very strong recovery.
The move towards reducing commodity exposure was furthered by the partial sale of the Company's holding in the BlackRock Commodities Income Fund, which had performed well and had moved to trading consistently at a premium to net asset value.
Fixed Interest
Exposure to fixed interest markets has been reduced, although this has largely been achieved by relative capital movements, together with limited selling over the period. The fixed interest holdings have performed satisfactorily overall, although quite naturally not making the same level of contribution as in the previous year.
The most significant acquisition during the year was the AXA US Short Duration High Yield Fund, which invests in sub-investment grade bonds with an average maturity of three years. This investment should benefit from rising interest rates as the bonds held mature, being then refinanced at higher prevailing rates. The manager has an enviable record in avoiding defaults due to the extensive credit analysis undertaken.
A further commitment was made to the European Loan market via the acquisition of the HarbourVest Senior Loans Europe Fund, which invests in senior secured loans in private equity backed mid-market companies. We would expect the loans portfolio to benefit from a rising interest rate environment as the interest received is linked to LIBOR rates. In addition the pricing of mid-market loans remains, we feel, attractive when compared to the wider market.
Profit was taken on part the Royal London Sterling Extra Yield Bond Fund, which had been bought in the depths of the credit crisis and where the Fund had seen a substantial recovery in value. This Fund remains one of the larger investments in the Company's portfolio, generating a yield of over 8% and has produced further capital appreciation over the year. The preference share holdings were reduced with the sale of the Bellway 9.5% 2014, where the yield to redemption had fallen to a less attractive level following a period of strong price recovery. However, advantage was taken of a new issue of stock to add to the Company's holding in Ecclesiastical Insurance preference shares at a highly attractive yield of 8.45%.
The Company's holding in City Merchants High Yield Trust was reduced at a significant profit, prompted by the shares trading on a premium to net asset value. The extremely disappointing investment in the CQS Rig Finance Fund was sold following a strong recovery, which at least recovered some of the original value.
Alternative Assets
Alternative asset allocations increased over the period through a combination of strong relative performance and new capital allocation.
Private equity holdings have performed particularly well over the period, with Standard Life European Private Equity Fund and Partners Group Global Opportunities Fund (PGGO) benefitting from the better equity and credit market environment. Holdings written down in the depths of the credit crises are now seeing positive trends again, which has enabled the managers to revalue positions. The more buoyant IPO market in the United States has also been beneficial for realisations from their portfolio companies, helping to improve their financial position. An element of profit was taken on the Standard Life European position during the period, as the strong returns achieved so far were protected. Meanwhile, the discount at which PGGO had been carried (due to lack of liquidity) since its acquisition in late 2009, was reviewed late in the period. This review led to the discount being reduced to 20% (previously 30%), in anticipation of the agreed lock in period coming to an end during 2011.
The Company's unquoted investment in A J Bell Holdings has remained at a carried value of 400p per share throughout the period, in the absence of any third party transactions. However, recent trading updates from the company have been very positive and the carried value will be reviewed again following interim results, which are due to be issued by the company in mid June. A J Bell is the largest holding in the portfolio and we remain confident that further significant value will accrue from this investment.
Hedge fund holdings have given satisfactory returns over the period, with quoted holdings delivering solid net asset value uplifts, together with a narrowing of their discounts, as both Acencia Debt Strategies and Signet Global Fixed Income embarked on significant buy-back programmes. The funds offer exposure to the distressed credit cycle, which should begin to unfold over the next 12 to 24 months. Importantly both have put in place wind up procedures which offer a further potential source of return over the next 2 to 3 years. Acencia also made a welcome return to the dividend list, when it was announced that they intended to resume payment of dividends, although part of the Acencia holding had already been switched into Signet prior to this dividend announcement.
Structured product positions performed well, with lower volatility and firm credit markets helping pricing. Exposure was increased in the early part of the year (when volatility last showed a significant spike) with the introduction of a Merrill Lynch FTSE product which offers a return of 8.8% with distributions paid quarterly. This product offers high levels of capital protection. The second product held is a defensive autocall issued by CitiBank, which has performed well and still offers an attractive potential return. The product looks likely to mature in November 2011. Whilst this product pays no income, it should mature having given an annualised capital return of 12.5%.
Property
The Company's' property holdings have been increased over the period. This has been achieved through investment in two very specific opportunities, rather than due to a re-assessment of the merits of property as an asset class.
Returns from the portfolio have been mixed with positive returns from the holding in the Celsius Asian Real Estate Income Fund (which was added to over the period) and the Threadneedle Property Unit Trust. Less positive were the developments at Speymill Deutsche Immobilien, the German residential property company, where the shares have been suspended since late in November following a decision by the Company's debt providers to place its operating units into receivership. We remain hopeful that significant value can be salvaged from the company and we are monitoring the ongoing negotiations aimed at a third party refinancing of the business.
The problems caused by the deleveraging of the banking sector, and in particular the need to reduce exposure to the property market, have produced an attractive opportunity to bridge this gap in financing. This led us to invest in the Duet Real Estate Finance Fund, which specialises in providing mezzanine finance to large, high quality property deals. We would expect to receive a running yield of around 7% from this vehicle, with a total return of circa 15% pa over the four year life of the Fund. The desire to introduce further protection against inflation into the portfolio led us to commit to the HSBC Infrastructure Fund. This vehicle operates in the UK PFI market where the majority of its investments are leasehold assets that have RPI and CPI linked revenues which are guaranteed by the UK Government.
Outlook
Periods of volatility are likely to remain a feature in markets, as concerns over sovereign debt defaults in Europe, stubbornly high inflation and the slow pace of economic recovery jostle to unsettle investor sentiment. Banks are set to continue to deleverage for a further protracted period and the end to Quantitative Easing measures (and long term outcomes of this strategy) are yet to be truly understood. A further period of economic opacity lies ahead, we fear.
The corporate sector is in a much better position than at the time of the credit crisis, although pockets of highly leveraged balance sheets still sit within the private equity buyouts financed in the heady environment of 2006/07. Any pick up in end demand or reduced unemployment figures will rightly be seized upon as good news. However, the longer term positive demographics trends emanating from growth in the emerging economies may take longer than some might hope to fully materialise.
Although equity market valuations do not look overly expensive, we feel that returns are likely to be muted for a period. We are encouraged by the financial strength of the corporate sector, but remain wary of the over exuberance being demonstrated in other assets. The excessively loose monetary conditions prevalent over the past three years is now giving way to a period of interest rate tightening to control inflationary pressures building within the developed and developing economies. This period of tightening is going to put pressure on economic growth prospects. In addition investors have managed to digest a series of negative economic developments over recent months, appearing to be immunised to such events. This attitude may yet be further tested. We feel that a cautious approach remains warranted.
The portfolio remains well positioned, we believe, to deliver capital appreciation together with a high level of income, which should grow over time. Whilst prospects for market returns may be less marked following two years of recovery, we are still able to identify a number of opportunities to enhance returns, some of which will be as a result of the gradual unwinding of previous financial excesses.
Alan Borrows
Simon Callow
Midas Capital Partners Limited
22 June 2011
3. STATEMENT OF DIRECTORS' RESPONSIBILITIES
The Directors are responsible for preparing the Annual Report and 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 elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards 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 judgments and 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.
The Directors are responsible for keeping proper 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 its financial statements comply with the Companies Act 2006, where applicable. They are responsible for taking such steps as are reasonably open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities.
Under applicable law and regulations, the Directors are also responsible for preparing a Directors' Report, Directors' Remuneration Report and Statement of Corporate Governance that comply with that law and those regulations. The financial statements are published on www.mamfundsplc.com/migt/index.asp which is a website maintained by the Company's Manager. The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
The Directors confirm that to the best of our knowledge:
- the financial statements, prepared in accordance with the applicable UK Accounting Standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company; and
- the Directors' Report includes a fair review of the development and performance of the business and the position of the Company, together with a description of the principal risks and uncertainties that the Company faces.
For Midas Income & Growth Trust PLC
Hubert Reid
Chairman
22 June 2011
4. BUSINESS REVIEW
The Company is registered as a public limited company, and is an investment company as defined by Section 833 of the Companies Act 2006 and is registered in England and Wales with registered number 3173591. The Company is also a member of the Association of Investment Companies ("AIC").
The Company has been approved by HMRC as an investment trust for the purposes of Section 1159 of the Corporation Tax Act 2010 for the year ended 30 April 2010. The Directors are of the opinion that the Company has conducted its affairs for the year ended 30 April 2011 so as to be able to continue to obtain approval as an investment trust under Sections 1158 - 1159 of the Corporation Tax Act 2010 for that year, although approval for that year would be subject to review were there to be any enquiry under the Corporate Tax Self Assessment regime.
Principal Risks and Uncertainties
Investment and Market Risks:Managing a portfolio of shares and debt security investments necessarily involves certain risks, the more important of which are set out in Note 18. A significant proportion of the assets of the Company may be invested in debt security investments and overseas equities. Whilst this broader spread of investments is intended to reduce the volatility and risk profile of the Company's portfolio this cannot be assured.
Shares: The market value of the Ordinary shares, as well as being affected by the net asset value, also takes into account their supply and demand. The market value of an Ordinary share can fluctuate and may not always reflect its underlying net asset value. Investment in the Company should be regarded as long term in nature. There can be no guarantee that appreciation in the value of the Company's investments will occur and investors may not get back the full value of their original investment.
Investment Objective:There is no guarantee that the investment policy adopted by the Company will provide the returns sought by the Company.
Borrowings: The Company currently utilises gearing in the form of bank borrowings (see Note 11). Gearing has the effect of exacerbating market falls and market gains.
Currency: A proportion of the Company's portfolio may be invested in assets denominated in currencies other than sterling. This will increase the currency risk that the Company is exposed to as a result in fluctuations in the exchange rate between the denomination of the investments and the sterling denomination of the Company's base currency.
Dividends: The ability of the Company to pay dividends in respect of the Ordinary shares and any future dividend growth will depend on the level of income received from its investments. Accordingly, the amount of dividends paid to shareholders may fluctuate.
Discount: While the Board intends to implement an active discount management policy, the ability to implement such a policy is dependent on a number of factors including; the ability to buy back shares in the market, the ability to fund share buybacks, the authority to buy back shares being renewed annually and the Board's discretion over the making and timing of any buybacks.
Key Individuals:The Company is substantially dependent on the services of key individuals working for its Manager, namely Alan Borrows and Simon Callow. The loss of either or both of these individuals could have an adverse effect on the Company's performance.
Taxation: Any change in the Company's tax status or in taxation legislation (including the tax treatment of dividends or other investment income received by the Company) or failure to satisfy the conditions of Sections 1158 - 1159 of the Corporation Tax Act 2010 (including the requirement for a listing) could affect the value of the investments held by the Company, affect the Company's ability to provide returns to shareholders or alter the post tax returns to shareholders.
5. INCOME STATEMENT
|
|
|
Year ended 30 April 2011 |
Year ended 30 April 2010 |
||||
|
|
Notes |
Revenue £'000 |
Capital £'000 |
Total £'000 |
Revenue £'000 |
Capital £'000 |
Total £'000 |
|
Gains on investments |
9 |
- |
2,597 |
2,597 |
- |
9,981 |
9,981 |
|
Income |
2 |
2,796 |
50 |
2,846 |
2,779 |
- |
2,779 |
|
Investment management fee |
3 |
(240) |
(240) |
(480) |
(213) |
(213) |
(426) |
|
Performance fee |
3 |
- |
- |
- |
- |
- |
- |
|
VAT recovered on investment management fees |
|
25 |
25 |
50 |
40 |
40 |
80 |
|
Administrative expenses |
4 |
(344) |
- |
(344) |
(319) |
- |
(319) |
|
Exchange gains/(losses) |
15 |
- |
14 |
14 |
- |
(20) |
(20) |
|
|
|
______ |
______ |
______ |
______ |
______ |
______ |
|
Net return on ordinary activities before interest payable and taxation |
|
2,237 |
2,446 |
4,683 |
2,287 |
9,788 |
12,075 |
|
Finance costs |
5 |
(119) |
(119) |
(238) |
(144) |
(144) |
(288) |
|
|
|
______ |
______ |
______ |
______ |
______ |
______ |
|
Net return on ordinary activities before taxation |
|
2,118 |
2,327 |
4,445 |
2,143 |
9,644 |
11,787 |
|
Taxation |
6 |
(3) |
- |
(3) |
2 |
- |
2 |
|
|
|
______ |
______ |
______ |
______ |
______ |
______ |
|
Return on ordinary activities after taxation |
|
2,115 |
2,327 |
4,442 |
2,145 |
9,644 |
11,789 |
|
|
|
______ |
______ |
______ |
______ |
______ |
______ |
|
Return per share (pence): |
8 |
|
|
|
|
|
|
|
Basic |
|
5.37 |
5.91 |
11.28 |
5.63 |
25.30 |
30.93 |
|
|
|
______ |
______ |
______ |
______ |
______ |
______ |
|
Diluted |
|
n/a |
n/a |
n/a |
5.62 |
25.27 |
30.89 |
|
|
|
______ |
______ |
______ |
______ |
______ |
______ |
|
|
|
|
|
|
|
|
|
|
The total column of this statement represents the profit and loss account of the Company. |
|||||||
|
All revenue and capital items in the above statement derive from continuing operations. |
|||||||
|
No operations were acquired or discontinued in the year. |
|||||||
|
A Statement of Total Recognised Gains and Losses has not been prepared as all gains and losses are recognised in the Income Statement. |
|||||||
|
The accompanying notes are an integral part of the financial statements. |
|||||||
6. BALANCE SHEET
|
|
Notes |
As at 30 April 2011 £'000 |
As at 30 April 2010 £'000 |
|
Non-current assets |
|
|
|
|
Investments at fair value through profit or loss |
9 |
57,966 |
53,468 |
|
|
|
__________ |
__________ |
|
Current assets |
|
|
|
|
Debtors and prepayments |
10 |
551 |
386 |
|
Cash and short term deposits |
|
472 |
1,077 |
|
|
|
__________ |
__________ |
|
|
|
1,023 |
1,463 |
|
|
|
__________ |
__________ |
|
Creditors: amounts falling due within one year |
11 |
|
|
|
Bank loan |
|
(7,000) |
(7,000) |
|
Other creditors |
|
(682) |
(447) |
|
|
|
__________ |
__________ |
|
|
|
(7,682) |
(7,447) |
|
|
|
__________ |
__________ |
|
Net current liabilities |
|
(6,659) |
(5,984) |
|
|
|
__________ |
__________ |
|
Net assets |
|
51,307 |
47,484 |
|
|
|
__________ |
__________ |
|
Capital and reserves |
|
|
|
|
Called-up share capital |
12 |
10,012 |
9,528 |
|
Share premium account |
|
1,445 |
- |
|
Special reserve |
|
41,954 |
41,954 |
|
Warrant reserve |
|
- |
616 |
|
Capital redemption reserve |
|
2,061 |
2,061 |
|
Capital reserve |
13 |
(4,955) |
(7,898) |
|
Revenue reserve |
|
790 |
1,223 |
|
|
|
__________ |
__________ |
|
Equity Shareholders' funds |
|
51,307 |
47,484 |
|
|
|
__________ |
__________ |
|
Net asset value per share (pence): |
17 |
|
|
|
Basic |
|
128.12 |
124.59 |
|
|
|
__________ |
__________ |
|
Diluted |
|
n/a |
123.40 |
|
|
|
__________ |
__________ |
7. RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
|
For the year ended 30 April 2011 |
|
|
|
|
|
|
|
|
|
|
Share capital £'000 |
Share premium account £'000 |
Special reserve £'000 |
Warrant reserve £'000 |
Capital redemption reserve £'000 |
Capital reserve £'000 |
Revenue reserve £'000 |
Total £'000 |
|
Balance at 30 April 2010 |
9,528 |
- |
41,954 |
616 |
2,061 |
(7,898) |
1,223 |
47,484 |
|
Exercise of Warrants |
484 |
1,445 |
- |
(616) |
- |
616 |
- |
1,929 |
|
Return on ordinary activities after taxation |
- |
- |
- |
- |
- |
2,327 |
2,115 |
4,442 |
|
Dividends paid (see note 7) |
- |
- |
- |
- |
- |
- |
(2,548) |
(2,548) |
|
|
______ |
______ |
______ |
______ |
______ |
______ |
______ |
______ |
|
Balance at 30 April 2011 |
10,012 |
1,445 |
41,954 |
- |
2,061 |
(4,955) |
790 |
51,307 |
|
|
______ |
______ |
______ |
______ |
______ |
______ |
______ |
______ |
|
For the year ended 30 April 2010 |
|
|
|
|
|
|
|
|
|
|
Share capital £'000 |
Share premium account £'000 |
Special reserve £'000 |
Warrant reserve £'000 |
Capital redemption reserve £'000 |
Capital reserve £'000 |
Revenue reserve £'000 |
Total £'000 |
|
Balance at 30 April 2009 |
9,582 |
- |
42,149 |
616 |
2,007 |
(17,542) |
1,562 |
38,374 |
|
Purchase of Ordinary shares for cancellation |
(54) |
- |
(195) |
- |
54 |
- |
- |
(195) |
|
Return on ordinary activities after taxation |
- |
- |
- |
- |
- |
9,644 |
2,145 |
11,789 |
|
Dividends paid (see note 7) |
- |
- |
- |
- |
- |
- |
(2,484) |
(2,484) |
|
|
______ |
______ |
______ |
______ |
______ |
______ |
______ |
______ |
|
Balance at 30 April 2010 |
9,528 |
- |
41,954 |
616 |
2,061 |
(7,898) |
1,223 |
47,484 |
|
|
______ |
______ |
______ |
______ |
______ |
______ |
______ |
______ |
|
|
||||||||
|
The revenue reserve represents the amount of the Company's reserves distributable by way of dividend. |
||||||||
|
The accompanying notes are an integral part of the financial statements. |
||||||||
8. CASHFLOW STATEMENT
|
|
|
Year ended 30 April 2011 |
Year ended 30 April 2010 |
||
|
|
Notes |
£'000 |
£'000 |
£'000 |
£'000 |
|
Net cash inflow from operating activities |
14 |
|
1,997 |
|
2,499 |
|
|
|
|
|
|
|
|
Servicing of finance |
|
|
|
|
|
|
Bank and loan interest paid |
|
|
(219) |
|
(288) |
|
|
|
|
|
|
|
|
Taxation |
|
|
|
|
|
|
Tax (payable)/refundable on non UK income |
|
|
(3) |
|
2 |
|
|
|
|
|
|
|
|
Financial investment |
|
|
|
|
|
|
Purchases of investments |
|
(15,359) |
|
(15,665) |
|
|
Sales of investments |
|
13,584 |
|
16,523 |
|
|
|
|
_______ |
|
_______ |
|
|
Net cash (outflow)/inflow from financial investment |
|
|
(1,775) |
|
858 |
|
|
|
|
|
|
|
|
Equity dividends paid |
|
|
(2,548) |
|
(2,484) |
|
|
|
|
_______ |
|
_______ |
|
Net cash inflow before financing |
|
|
(2,548) |
|
587 |
|
|
|
|
|
|
|
|
Financing |
|
|
|
|
|
|
Buyback of shares |
|
- |
|
(195) |
|
|
Exercise of warrants |
|
1,929 |
|
- |
|
|
|
|
_______ |
|
_______ |
|
|
Net cash inflow/(outflow) from financing |
|
|
1,929 |
|
(195) |
|
|
|
_______ |
|
_______ |
|
|
(Decrease)/increase in cash |
|
(619) |
|
392 |
|
|
|
|
|
_______ |
|
_______ |
|
Reconciliation of net cash flow to movements in net debt |
|
|
|
|
|
|
(Decrease)/increase in cash as above |
|
|
(619) |
|
392 |
|
Exchange movements |
|
14 |
|
(20) |
|
|
|
|
_______ |
|
_______ |
|
|
Movement in net debt in the year |
|
(605) |
|
372 |
|
|
Net debt at 1 May |
|
|
(5,923) |
|
(6,295) |
|
|
|
|
_______ |
|
_______ |
|
Net debt at 30 April |
15 |
|
(6,528) |
|
(5,923) |
|
|
|
|
_______ |
|
_______ |
9. NOTES TO THE FINANCIAL STATEMENTS:
For the year ended 30 April 2011
|
1 |
Accounting policies |
|
|
|
(a) |
Basis of preparation and going concern |
|
|
|
The financial statements have been prepared in accordance with the 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 financial statements have been prepared on a going concern basis. The Directors believe this is appropriate for the reasons outlined in the Annual Report. |
|
|
(b) |
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 or closing prices for SETS (London Stock Exchange's electronic trading service) stocks sourced from the London Stock Exchange. Unlisted investments held are not quoted on a recognised stock exchange, however there is a quoted price available, and is considered by the Directors to approximate fair value. The unquoted investments held (see note 9) are valued by the Directors using primary valuation techniques, such as earnings multiples, recent transactions and net assets, which equate to their fair values. Gains and losses arising from changes in fair value are included in net profit or loss for the period as a capital item in the Income Statement. |
|
|
(c) |
Income |
|
|
|
Income from investments (other than special dividends), including taxes deducted at source, is included in revenue by reference to the date on which the investment is quoted ex dividend. Special dividends are credited to capital or revenue, according to the circumstances. The fixed returns on debt securities are recognised on a time apportionment basis so as to reflect the effective yield on the debt securities and shares. Interest receivable on short term deposits is treated on an accruals basis. |
|
|
(d) |
Expenses |
|
|
|
All expenses are accounted for on an accrual basis. Expenses are charged to revenue within the Income Statement except as follows: - transaction costs on the acquisition or disposal of investments are charged to capital; - expenses are charged to the capital reserve where a connection with the maintenance or enhancement of the value of investments can be demonstrated. In this respect the investment management fee and loan interest on the £7.0m bank loan have been allocated 50% to capital and 50% to revenue within the Income Statement; - loan break costs and performance fees are charged 100% to the capital reserve within the Income Statement. |
|
|
(e) |
Capital reserve |
|
|
|
Gains or losses on realisation of investments and changes in fair values of investments which are readily convertible to cash, without accepting adverse terms, are transferred to the capital reserve.
Also, expenses and finance costs, together with the related taxation effect, are charged to this reserve in accordance with (d) above. |
|
|
(f) |
Deferred taxation |
|
|
|
The charge for taxation is based on the profit for the year and takes into account taxation deferred because of timing differences between the treatment of certain items for taxation and accounting purposes. Deferred taxation is provided using the liability method on all timing differences, calculated at the rate at which it is anticipated the timing differences will reverse. Deferred tax assets are recognised only when, on the basis of available evidence, it is more likely than not that there will be taxable profits in future against which the deferred tax asset can be offset.
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. |
|
|
(g) |
Foreign currency |
|
|
|
Transactions involving foreign currencies are converted to sterling, being the Company's functional currency, at the rate ruling at the date of the transaction.
Translation of all other foreign currency balances including foreign assets and foreign liabilities is at the middle rates of exchange at the year end. Differences arising from translation are treated as a gain or loss to capital or revenue within the Income Statement depending upon the nature of the gain or loss. |
|
2 |
Income |
2011 £'000 |
2010 £'000 |
|
|
Income from investments |
|
|
|
|
UK franked income |
1,354 |
1,537 |
|
|
UK unfranked dividend income |
400 |
232 |
|
|
UK unfranked interest income |
291 |
255 |
|
|
Overseas dividends |
700 |
728 |
|
|
|
_______ |
_______ |
|
|
|
2,745 |
2,752 |
|
|
|
_______ |
_______ |
|
|
Other income |
|
|
|
|
Deposit interest |
3 |
25 |
|
|
Interest from HM Revenue & Customs (see Chairman's Statement) |
48 |
- |
|
|
Other commission |
- |
2 |
|
|
|
_______ |
_______ |
|
|
|
51 |
27 |
|
|
|
_______ |
_______ |
|
|
Total income |
2,796 |
2,779 |
|
|
|
_______ |
_______ |
|
|
Income from investments |
2011 |
2010 |
|
|
Listed UK |
1,631 |
1,929 |
|
|
Listed overseas |
311 |
287 |
|
|
Unlisted |
803 |
536 |
|
|
|
_______ |
_______ |
|
|
|
2,745 |
2,752 |
|
|
|
_______ |
_______ |
|
|
|
2011 |
2010 |
||||
|
3 |
Investment management and performance fees |
Revenue |
Capital |
Total |
Revenue |
Capital |
Total |
|
|
Investment management fee |
240 |
240 |
480 |
213 |
213 |
426 |
|
|
|
_____ |
_____ |
_____ |
_____ |
_____ |
_____ |
|
|
Midas Capital Partners Limited ('Midas') were appointed the Investment Manager on 19 August 2005 (formerly Aberdeen Asset Managers Limited) and the management fee payable to Midas during the year was 1% of net assets. The fee is chargeable 50% to capital and 50% to revenue within the Income Statement. The agreement is terminable by either party on twelve months notice. The balance due to Midas at the year end was £43,000 (2010 - £40,000).
On 5 November 2007, the European Court of Justice ruled that management fees should be exempt from VAT. HMRC has announced its intention not to appeal against this case to the UK VAT Tribunal and therefore protective claims which have been made in relation to the Company have been processed.
The Manager and Aberdeen Asset Managers Limited (the former Manager) have refunded £497,000 to the Company for VAT charged on investment management fees for the period 1 January 2001 to 30 September 2007. The sum of £367,000 less charges of £10,000, for the period from 1 January 2004 to 30 September 2007, was reflected in the 2009 financial statements. The sum of £80,000, for the period from 1 January 2001 to 31 December 2003, was reflected in the previous financial statements. The sum of £50,000 has been reflected in these financial statements for the periods 1 January 1990 to 3 December 1996 and 1 January 2001 to 31 December 2003. These repayments have been allocated to capital and revenue in line with the accounting policy of the Company for the periods in which the VAT was charged. |
||||||
|
|
|
||||||
|
|
|
2011 |
2010 |
||||
|
|
|
Revenue |
Capital |
Total |
Revenue |
Capital |
Total |
|
|
Performance fee |
- |
- |
- |
- |
- |
- |
|
|
|
_____ |
_____ |
_____ |
_____ |
_____ |
_____ |
|
|
The performance fee is calculated based on a comparison of the net asset value at the start of the calculation period and the net asset value at the period end. Where there has been an increase of greater than the benchmark of 8% per annum then a performance fee of 10% of the excess is applicable. The balance due to Midas at the year end in respect of the performance fee was £nil (2010 - £nil). |
||||||
|
4 |
Administrative expenses |
2011 |
2010 |
||||
|
Revenue £'000 |
Capital £'000 |
Total £'000 |
Revenue £'000 |
Capital £'000 |
Total £'000 |
||
|
|
Administration fees |
110 |
- |
110 |
110 |
- |
110 |
|
|
Directors' fees |
60 |
- |
60 |
60 |
- |
60 |
|
|
Printing and stationery |
14 |
- |
14 |
10 |
- |
10 |
|
|
Auditors' remuneration: |
|
|
|
|
|
|
|
|
- audit (inclusive of VAT) |
27 |
- |
27 |
25 |
- |
25 |
|
|
- for review of Interim Report (inclusive of VAT) |
7 |
- |
7 |
6 |
- |
6 |
|
|
Other |
126 |
- |
126 |
108 |
- |
108 |
|
|
|
_____ |
_____ |
_____ |
_____ |
_____ |
_____ |
|
|
|
344 |
- |
344 |
319 |
- |
319 |
|
|
|
_____ |
_____ |
_____ |
_____ |
_____ |
_____ |
|
|
The Company has an agreement with Aberdeen Asset Managers Limited ("AAM") which is delegated to Aberdeen Asset Management PLC for the provision of administration services with fees based on the following basis: |
||||||
|
|
- £90,000 per annum plus VAT where the Company's net asset value is less than £50 million; |
||||||
|
|
- £110,000 per annum plus VAT where the Company's net asset value exceeds £50 million; |
||||||
|
|
The net asset position is assessed at 1 August for each year the agreement is in place. At this date the fee will also be increased, but not decreased, by the movement in RPI over the twelve month period. |
||||||
|
|
The agreement is terminable by either party on three months' notice. No sum was due to AAM at the year end (2010 - £nil). |
||||||
|
5 |
Finance costs |
2011 |
2010 |
||||
|
Revenue £'000 |
Capital £'000 |
Total £'000 |
Revenue £'000 |
Capital £'000 |
Total £'000 |
||
|
|
On bank loans and overdrafts |
119 |
119 |
238 |
144 |
144 |
288 |
|
|
|
_____ |
_____ |
_____ |
_____ |
_____ |
_____ |
Finance costs relate to interest charge on the revolving loan facility, details of which are disclosed in note 11.
|
6 |
Taxation |
2011 |
2010 |
|||||
|
Revenue £'000 |
Capital £'000 |
Total £'000 |
Revenue £'000 |
Capital £'000 |
Total £'000 |
|||
|
|
(a) |
Analysis of charge for the year |
|
|
|
|
|
|
|
|
|
Overseas withholding tax |
3 |
- |
3 |
(2) |
- |
(2) |
|
|
|
|
_____ |
_____ |
_____ |
_____ |
_____ |
_____ |
|
|
(b) |
Factors affecting the tax charge for the year |
||||||
|
|
|
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. |
||||||
|
|
|
|
||||||
|
|
|
|
2011 |
2010 |
||||
|
|
|
|
Revenue £'000 |
Capital £'000 |
Total £'000 |
Revenue £'000 |
Capital £'000 |
Total £'000 |
|
|
|
Net profit on ordinary activities before taxation |
2,118 |
2,327 |
4,445 |
2,143 |
9,644 |
11,787 |
|
|
|
|
_____ |
_____ |
_____ |
_____ |
_____ |
_____ |
|
|
|
Corporation tax at 27.83% (2010: 28%) |
589 |
648 |
1,237 |
600 |
2,700 |
3,300 |
|
|
|
Effects of: |
|
|
|
|
|
|
|
|
|
Non-taxable UK dividends |
(376) |
- |
(376) |
(430) |
- |
(430) |
|
|
|
Non-taxable overseas dividends |
(260) |
- |
(260) |
(272) |
- |
(272) |
|
|
|
Movement in unutilited management expenses |
47 |
80 |
127 |
74 |
89 |
163 |
|
|
|
Income taxable in different years |
3 |
- |
3 |
26 |
- |
26 |
|
|
|
Gains on investments not taxable |
- |
(728) |
(728) |
- |
(2,789) |
(2,789) |
|
|
|
|
_____ |
_____ |
_____ |
_____ |
_____ |
_____ |
|
|
|
Current tax payable/(recoverable) |
3 |
- |
3 |
(2) |
- |
(2) |
|
|
|
|
_____ |
_____ |
_____ |
_____ |
_____ |
_____ |
|
|
|
|
||||||
|
|
(c) |
Factors that may affect future tax charges |
||||||
|
|
|
There was no provision for deferred taxation made for either this year or the previous year. The Company has not recognised a deferred tax asset of £1,294,000 (2010 - £1,320,000) arising as a result of non-trading deficits and eligible unrelieved foreign tax. These deficits will only be utilised if the Company has profits chargeable to corporation tax in future accounting periods. It is considered too uncertain that the Company will generate such profits and therefore no deferred tax asset has been recognised. |
||||||
|
7 |
Dividends |
2011 £'000 |
2010 £'000 |
|
|
Amounts recognised as distributions to equity holders in the period: |
|
|
|
|
Fourth interim dividend for 2010 - 1.63p (2009 - 1.63p) |
621 |
621 |
|
|
First interim dividend for 2011 - 1.63p (2010 - 1.63p) |
621 |
621 |
|
|
Second interim dividend for 2011 - 1.63p (2010 - 1.63p) |
653 |
621 |
|
|
Third interim dividend for 2011 - 1.63p (2010 - 1.63p) |
653 |
621 |
|
|
|
_______ |
_______ |
|
|
|
2,548 |
2,484 |
|
|
|
_______ |
_______ |
|
|
A fourth dividend has been declared for the year of 1.63p (2010 - 1.63p) per share, amounting to £653,000 (2010 - £621,000). There is no final dividend proposed for the year (2010 - nil). |
||
|
|
We set out below the total dividends paid and proposed in respect of the financial year, which is the basis on which the requirements of Section 1158-1159 of the Corporation Tax Act 2010 (formerly Section 842 of the Income and Corporation Taxes Act 1988) are considered. The revenue available for distribution by way of dividend for the year is £2,115,000 (2010 - £2,145,000). |
||
|
|
|
|
|
|
|
|
2011 £'000 |
2010 £'000 |
|
|
First interim dividend for 2011 - 1.63p (2010 - 1.63p) |
621 |
621 |
|
|
Second interim dividend for 2011 - 1.63p (2010 - 1.63p) |
653 |
621 |
|
|
Third interim dividend for 2011 - 1.63p (2010 - 1.63p) |
653 |
621 |
|
|
Fourth interim dividend for 2011 - 1.63p (2010 - 1.63p) |
653 |
621 |
|
|
|
_______ |
_______ |
|
|
|
2,580 |
2,484 |
|
|
|
_______ |
|
|
8 |
Return per Ordinary share |
||||||
|
|
The return per Ordinary share is based on the following figures: |
||||||
|
|
|
2011 |
2010 |
||||
|
Revenue P |
Capital P |
Total P |
Revenue P |
Capital P |
Total P |
||
|
|
Basic |
5.37 |
5.91 |
11.28 |
5.63 |
25.30 |
30.93 |
|
|
|
_____ |
_____ |
_____ |
_____ |
_____ |
_____ |
|
|
Diluted |
n/a |
n/a |
n/a |
5.62 |
25.27 |
30.89 |
|
|
|
_____ |
_____ |
_____ |
_____ |
_____ |
_____ |
|
|
The basic revenue return per Ordinary share is calculated on net revenue on ordinary activities after taxation for the year of £2,115,000 (2010 - £2,145,000) and on 39,394,491 (2010 - 38,120,197) Ordinary shares, being the weighted average number of Ordinary shares in issue during the year. |
||||||
|
|
The basic capital return per Ordinary share is calculated on net capital returns for the year of £2,327,000 (2010 - £9,644,000) and on 39,394,491 (2010 - 38,120,197) Ordinary shares, being the weighted average number of Ordinary shares in issue during the year. |
||||||
|
|
The basic total return per Ordinary share is calculated on the total return for the year of £4,442,000 (2010 - returns of £11,789,000) and on 39,394,491 (2010 - 38,120,197) Ordinary shares, being the weighted average number of Ordinary shares in issue during the year. |
||||||
|
|
The calculation of the diluted returns per Ordinary share is carried out in accordance with Financial Reporting Standard No. 22, 'Earnings per Share' ('FRS 22'). For the purposes of calculating diluted returns per Ordinary share, the number of Ordinary shares is the weighted average used in the basic calculation plus the number of Ordinary shares deemed to be issued for no consideration on exercise of all Warrants by reference to the average share price of the Ordinary shares during the year. As all warrants were exercised in the year, there is no dilutive impact on the returns per ordinary share for 2011. The calculations for the year ended 30 April 2010 indicated that the exercise of Warrants would result in an increase in the weighted average number of Ordinary shares of 1,934,411, to a total of 40,054,608 Ordinary shares. |
||||||
|
9 |
Investments |
Listed in UK £'000 |
Unquoted and unlisted £'000 |
Total £'000 |
|
|
Fair value through profit or loss: |
|
|
|
|
|
Opening book cost |
41,378 |
18,315 |
59,693 |
|
|
Opening fair value losses on investments held |
(4,216) |
(2,009) |
(6,225) |
|
|
Opening valuation |
37,162 |
16,306 |
53,468 |
|
|
Movements in year: |
|
|
|
|
|
Purchases at cost |
8,966 |
6,588 |
15,554 |
|
|
Sales - proceeds |
(10,767) |
(2,886) |
(13,653) |
|
|
- losses on sales |
(1,673) |
(396) |
(2,069) |
|
|
Movement in fair value of investments held |
3,188 |
1,478 |
4,666 |
|
|
|
________ |
________ |
________ |
|
|
Closing fair value of investments held |
36,876 |
21,090 |
57,966 |
|
|
|
________ |
________ |
________ |
|
|
Closing book cost |
37,904 |
21,621 |
59,525 |
|
|
Closing fair value losses on investments held |
(1,028) |
(531) |
(1,559) |
|
|
|
________ |
________ |
________ |
|
|
|
36,876 |
21,090 |
57,966 |
|
|
|
________ |
________ |
________ |
|
|
|
|
2011 £'000 |
2010 £'000 |
|
|
Losses on sales |
|
(2,069) |
(2,975) |
|
|
Increase in fair value of investments held |
|
4,666 |
12,956 |
|
|
|
|
________ |
________ |
|
|
|
|
2,597 |
9,981 |
|
|
|
|
________ |
________ |
|
|
Transaction costs |
|
|
|
|
|
During the year expenses were incurred in acquiring or disposing of investments classified as fair value through profit or loss. These have been expensed through capital and are included within gains on investments in the Income Statement. The total costs were as follows: |
|||
|
|
|
2011 £'000 |
2010 £'000 |
|
|
|
Purchases |
24 |
58 |
|
|
|
Sales |
20 |
23 |
|
|
|
|
________ |
________ |
|
|
|
|
44 |
81 |
|
|
|
|
________ |
________ |
|
|
10 |
Debtors: amounts falling due within one year |
2011 £'000 |
2010 £'000 |
|
|
Dividends and interest receivable |
438 |
335 |
|
|
Prepayments and other debtors |
5 |
12 |
|
|
Amounts due from brokers |
108 |
39 |
|
|
|
________ |
________ |
|
|
|
551 |
386 |
|
|
|
________ |
________ |
|
11 |
Creditors: amounts falling due within one year |
2011 £'000 |
2010 £'000 |
|
|
Bank loan |
7,000 |
7,000 |
|
|
Amounts due to brokers |
550 |
355 |
|
|
Interest payable |
22 |
3 |
|
|
Other creditors |
110 |
89 |
|
|
|
________ |
________ |
|
|
|
7,682 |
7,447 |
|
|
|
________ |
________ |
|
|
The Company has a £7,000,000 revolving loan facility in place with The Royal Bank of Scotland, of which at 30 April 2011 £7,000,000 had been drawn down at an all in rate of 3.444%. Subsequent to the year end on 31 May 2011 the loan was rolled over until 3 August 2011 at an all-in-rate of 3.4676%. |
||
|
|
The termination date of the facility is 3 August 2011. The Company anticipates refinancing the facility through a similar arrangement. |
||
|
12 |
Called-up share capital |
2011 £'000 |
2010 £'000 |
|
|
Authorised |
|
|
|
|
390,000,000 (2010 - 390,000,000) Ordinary shares of 25p |
97,500 |
97,500 |
|
|
|
________ |
________ |
|
|
Called-up, allotted and fully paid |
|
|
|
|
40,046,361 (2010 - 38,111,950) Ordinary shares of 25p |
10,012 |
9,528 |
|
|
|
________ |
________ |
|
|
As at 30 April 2011, there were no Warrants in issue (30 April 2010 - 1,934,411).
During the year, 1,934,411 (2010 - nil) Warrants were exercised at a price of 100p each, creating 1,934,411 new Ordinary shares (2010 - purchase of 215,000 Ordinary shares for immediate cancellation) which were issued for a total consideration of £1,934,411 (2010 - cost of £195,000). |
||
|
13 |
Capital reserve |
2011 £'000 |
2010 £'000 |
|
|
Year ended 30 April |
|
|
|
|
At 30 April 2010 |
(7,898) |
(17,542) |
|
|
Movement in fair value gains |
2,597 |
9,981 |
|
|
Foreign exchange movement |
14 |
(20) |
|
|
Exercise of Warrants |
616 |
- |
|
|
VAT recovered on capitalised investment management fees |
25 |
40 |
|
|
Capitalised expenses |
(359) |
(357) |
|
|
Capitalised income |
50 |
- |
|
|
|
________ |
________ |
|
|
At 30 April |
(4,955) |
(7,898) |
|
|
|
________ |
________ |
|
|
The capital reserve includes investment holding losses amounting to £1,559,000 (2010 - £6,225,000), as disclosed in note 9. |
||
|
14 |
Reconciliation of net revenue before finance costs and taxation to net cash inflow from operating activities |
2011 £'000 |
2010 £'000 |
|
|
Net return before finance costs and taxation |
4,683 |
12,075 |
|
|
Adjustments for: |
|
|
|
|
Gains on investments |
(2,597) |
(9,981) |
|
|
Exchange (gains)/losses |
(14) |
20 |
|
|
(Increase)/decrease in accrued income |
(103) |
17 |
|
|
Decrease in other debtors |
7 |
371 |
|
|
Increase/(decrease) in other creditors |
21 |
(3) |
|
|
|
________ |
________ |
|
|
Net cash inflow from operating activities |
1,997 |
2,499 |
|
|
|
________ |
________ |
|
15 |
Analysis of changes in net debt |
1 May 2010 £'000 |
Cash flow £'000 |
Exchange movements £'000 |
30 April 2011 £'000 |
|
|
Cash and short term deposits |
1,077 |
(619) |
14 |
472 |
|
|
Debt due in less than one year |
(7,000) |
- |
- |
(7,000) |
|
|
|
________ |
________ |
________ |
________ |
|
|
|
(5,923) |
(619) |
14 |
(6,528) |
|
|
|
________ |
________ |
________ |
________ |
|
16 |
Commitments and contingencies |
|
|
As at 30 April 2011 there were no contingent liabilities (2010 - nil.) |
|
|
As at 30 April 2011 there was no commitment fee payable to The Royal Bank of Scotland as the bank loan was fully drawn down (2010 - nil). |
|
17 |
Net asset value per equity share |
2011 |
2010 |
|
|
Basic |
|
|
|
|
Net assets attributable |
£51,307,000 |
£47,484,000 |
|
|
Number of Ordinary shares in issue |
40,046,361 |
38,111,950 |
|
|
Net asset value per Ordinary share |
128.12p |
124.59p |
|
|
|
|
|
|
|
Diluted |
|
|
|
|
Net assets attributable |
£51,307,000 |
£49,418,000 |
|
|
Number of Ordinary shares if Warrants converted |
n/a |
40,046,361 |
|
|
Net asset value per Ordinary share |
n/a |
123.40p |
|
|
On 1 September 2011, 1,934,411 Warrants were exercised and converted in Ordinary shares and, as a result, no Warrants remain and therefore there is no longer any dilution.
The comparative diluted net asset value per Ordinary shares has been calculated on the assumption that at 30 April 2010, 1,934,411 Warrants in issue were exercised on the first day of the financial year at 100p per share, giving a total of 40,046,361 Ordinary shares at 30 April 2010. |
||
|
18 |
Risk management, financial assets and liabilities |
|
|
The Company's financial instruments comprise: |
|
|
- Equities and debt security investments that are held in accordance with the Company's investment objectives, which are set out in the Annual Report; |
|
|
- Term loans and bank overdrafts, the main purpose of which are to raise finance for the Company's operations; and |
|
- Cash and liquid resources that arise directly from the Company's operations. |
|
|
|
The main risks arising from the Company's financial instruments are market price risk, interest rate risk and foreign currency risk. The Board regularly reviews and agrees policies for managing each of these risks and they are summarised below. These policies have remained unchanged since the inception of the Company. |
|
|
Liquidity risk Liquidity risk 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 of mainly readily realisable securities, which can be sold to meet funding commitments if necessary. |
|
|
Market price risk Market price risk arises mainly from uncertainty about future prices of financial instruments held. It represents the potential loss the Company might suffer through holding market positions in the face of price movements. |
|
|
To mitigate the risk the Board's investment strategy is to select investments for their fundamental value. Stock selection is therefore based on disciplined accounting, market and sector analysis with the emphasis on long term investments. The Investment Manager actively monitors market prices throughout the year and reports to the Board, which meets regularly in order to consider investment strategy. |
|
|
A list of the investments held by the Company at 30 April 2011 is shown in the 'Investment Portfolio' table below. All investments are stated at fair value. |
|
|
Interest rate risk |
|
|
Financial assets |
|
|
Prices of bonds, Open Ended Investment Companies and floating rate notes together with preference share yields, are determined by market perception as to the appropriate level of yields given the economic background. Key determinants include economic growth prospects, inflation, the Government's fiscal position, short-term interest rates and international market comparisons. The Investment Manager takes all these factors into account when making any investment decisions as well as considering the financial standing of the potential investee company. |
|
|
Returns from bonds, floating rate notes and preference shares are fixed at the time of purchase, as the fixed coupon payments are known, as are the final redemption proceeds. This means that if a bond is held until its redemption date, the total return achieved is unaltered from its purchase date. However, over the life of a bond the market price at any given time will depend on the market environment at that time. Therefore, a bond sold before its redemption date is likely to have a different price to its purchase level and a profit or loss may be incurred. |
|
|
Financial liabilities |
|
|
The Company finances its operations through the use of a loan facility. The Board sets borrowing limits to ensure gearing levels are appropriate to market conditions and reviews these on a regular basis. |
|
|
The interest rate profile of the Company (excluding short term debtors and creditors) at 30 April 2011 and 30 April 2010 was as follows: |
|
|
|
Balance Sheet) £'000 |
£'000 |
£'000 |
on which no interest is paid † £'000 |
interest rate % |
Weighted average period for which rate is fixedA years |
||||||
|
|
Type |
2011 |
2010 |
2011 |
2010 |
2011 |
2010 |
2011 |
2010 |
2011 |
2010 |
2011 |
2010 |
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equities |
31,560 |
32,415 |
- |
- |
- |
- |
31,560 |
32,415 |
- |
- |
- |
- |
|
|
OEICs |
17,085 |
11,480 |
- |
- |
- |
- |
17,085 |
11,480 |
- |
- |
- |
- |
|
|
Corporate Bonds |
3,564 |
2,232 |
- |
- |
3,564 |
2,232 |
- |
- |
6.01 |
7.06 |
6.19 |
6.95 |
|
|
Floating Rate Notes |
56 |
565 |
56 |
565 |
- |
- |
- |
- |
- |
- |
- |
- |
|
|
Preference Shares |
2,992 |
3,913 |
- |
- |
2,992 |
3,913 |
- |
- |
7.08 |
8.03 |
2.94 |
3.94 |
|
|
Convertible Bonds |
60 |
217 |
- |
- |
60 |
217 |
- |
- |
107.14 |
29.41 |
0.08 |
1.08 |
|
|
Unquoted |
2,649 |
2,646 |
- |
- |
- |
- |
2,649 |
2,646 |
- |
- |
- |
- |
|
|
Cash at bank |
472 |
1,077 |
472 |
1,077 |
- |
- |
- |
- |
0.27 |
0.27 |
- |
- |
|
|
|
______ |
______ |
______ |
______ |
______ |
______ |
______ |
______ |
______ |
______ |
______ |
______ |
|
|
|
58,438 |
54,545 |
528 |
1,642 |
6,616 |
6,362 |
51,294 |
46,541 |
n/a |
n/a |
n/a |
n/a |
|
|
|
______ |
______ |
______ |
______ |
______ |
______ |
______ |
______ |
______ |
______ |
______ |
______ |
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank loan |
(7,000) |
(7,000) |
- |
- |
(7,000) |
(7,000) |
- |
- |
3.42 |
3.35 |
- |
- |
|
|
|
______ |
______ |
______ |
______ |
______ |
______ |
______ |
______ |
______ |
______ |
______ |
______ |
|
|
Total |
51,438 |
47,545 |
528 |
1,642 |
(384) |
(638) |
51,294 |
46,541 |
n/a |
n/a |
n/a |
n/a |
|
|
|
______ |
______ |
______ |
______ |
______ |
______ |
______ |
______ |
______ |
______ |
______ |
______ |
|
|
†The 'weighted average interest rate' is based on the current yield of each asset, weighted by their market value. This excludes all equities and stocks where payments have been suspended. |
||||||||||||
|
|
A The 'weighted average period for which rate is fixed' excludes stocks with no maturity date. |
||||||||||||
|
|
Maturity profile |
|||||||||
|
|
The maturity profile of the Company's financial assets at 30 April 2011 and 30 April 2010 was as follows: |
|||||||||
|
|
At 30 April 2011 |
Within 1 year £'000 |
Within 1-5 years £'000 |
More than 5 years £'000 |
Total £'000 |
|||||
|
|
Fixed rate |
|
|
|
|
|||||
|
|
Corporate Bonds |
- |
1,104 |
757 |
1,861 |
|||||
|
|
Convertible Bonds |
60 |
- |
- |
60 |
|||||
|
|
Preference shares |
- |
- |
2,192 |
2,192 |
|||||
|
|
Bank loan |
(7,000) |
- |
- |
(7,000) |
|||||
|
|
|
________ |
________ |
________ |
________ |
|||||
|
|
|
(6,940) |
1,104 |
2,949 |
(2,887) |
|||||
|
|
Floating rate |
________ |
________ |
________ |
________ |
|||||
|
|
Cash |
472 |
- |
- |
472 |
|||||
|
|
|
________ |
________ |
________ |
________ |
|||||
|
|
Details of the Company's loans are shown in note 11. All the other financial assets (including Corporate Bonds of £1,703,000 (2010 - £613,000) and Preference shares of £800,000 (2010 - £1,000,000)) and liabilities do not have a maturity date. |
|||||||||
|
|
|
|
|
|
|
|||||
|
|
At 30 April 2010 |
Within 1 year £'000 |
Within 1-5 years £'000 |
More than 5 years £'000 |
Total £'000 |
|||||
|
|
Fixed rate |
|
|
|
|
|||||
|
|
Corporate Bonds |
- |
927 |
692 |
1,619 |
|||||
|
|
Convertible Bonds |
- |
217 |
- |
217 |
|||||
|
|
Preference Shares |
- |
961 |
1,952 |
2,913 |
|||||
|
|
Bank loan |
- |
(7,000) |
- |
(7,000) |
|||||
|
|
|
________ |
________ |
________ |
________ |
|||||
|
|
|
- |
(4,895) |
3,644 |
(1,251) |
|||||
|
|
Floating rate |
________ |
________ |
________ |
________ |
|||||
|
|
Cash |
1,077 |
- |
- |
1,077 |
|||||
|
|
|
________ |
________ |
________ |
________ |
|||||
|
|
|
|||||||||
|
|
Interest rate sensitivity |
|||||||||
|
|
The sensitivity analyses below have been determined based on the exposure to interest rates for floating and fixed interest investments and borrowings at the balance sheet 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 investments that had floating rates.
If interest rates had been 100 basis points higher or lower and all other variables were held constant, the Company's:
- Profit before tax for the year ended 30 April 2011 would increase/decrease by £65,280 (£59,230). This is mainly attributable to the Company's exposure to interest rates on its variable rate borrowings and floating rate cash balances. These positions have been calculated based on cash balance and borrowing positions at each year end. - Profit before tax for the year ended 30 April 2011 would increase/decrease by £724,000 (2010 - £746,000). This is mainly attributable to the Company's exposure to interest rates on its directly held fixed interest securities and third party managed debt funds, which are both fixed and variable rate vehicles. This is based on modified duration calculations on directly held fixed interest holdings and assumptions of modified duration on third party funds held.
In the opinion of the Directors, the above sensitivity analyses are not representative of the year as a whole, since the level of exposure changes frequently as part of the interest rate risk management process used to meet the Company's objectives. The risk parameters used will fluctuate depending on the current market perception. |
|||||||||
|
|
Foreign currency risk |
|||||||||
|
|
The income and capital value of the Company's investments are mainly denominated in Sterling; therefore, the Company is not subject to any material risk of currency movements. At the year end the Company held the following investments: |
|||||||||
|
|
|
2011 |
2010 |
|||||||
|
|
|
Currency |
Sterling equivalent £'000 |
Currency '000 |
Sterling equivalent £'000 |
|||||
|
|
Euro |
2,812 |
2,501 |
2,239 |
1,945 |
|||||
|
|
Japanese Yen |
113,153 |
836 |
174,003 |
1,209 |
|||||
|
|
US Dollar |
2,070 |
1,241 |
2,176 |
1,421 |
|||||
|
|
At the year end the Company held euro cash balances with the sterling equivalent of £nil (2010 - nil). |
|||||||||
|
Other price risk Other price risks (ie 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 and the stock selection process, as detailed in the Annual Report, both act to reduce market risk. The Manager actively monitors market prices throughout the year and reports to the Board, which meets regularly in order to review investment strategy. The investments held by the Company are listed on various stock exchanges worldwide.
Other price risk sensitivity If market prices at the Balance Sheet date had been 10% higher or lower while all other variables remained constant, the return attributable to ordinary shareholders for the year ended 30 April 2011 would have increased/decreased by £5,259,000 (2010 : increase/decrease of £4,654,000 ) and equity reserves would have increased/decreased by the same amount.
Credit risk This is failure of the counter party to a transaction to discharge its obligations under that transaction that could result in the Company suffering a loss.
The risk is not significant, and is managed as follows: - where the Investment Manager makes an investment in a bond, corporate or otherwise, the credit rating of the issuer is taken into account so as to minimise the risk to the Company of default; - investments in quoted bonds are made across a variety of industry sectors and geographic markets so as to avoid concentrations of credit risk; - transactions involving derivatives are entered into only with investment banks, the credit rating of which is taken into account so as to minimise the risk to the Company of default; - investment transactions are carried out with a large number of brokers, the credit rating of which is taken into account so as to minimise the risk to the Company of default; - investment transactions are carried out with a large number of brokers, whose credit-standing is reviewed periodically by the investment manager, and limits are set on the amount that may be due from any one broker; - the risk of counterparty exposure due to failed trades causing a loss to the Company is mitigated by the review of failed trade reports on a monthly basis. In addition, the third party administrators carry out a stock reconciliation to the Custodian's administrators' records on a monthly basis to ensure discrepancies are picked up on a timely basis. The Manager's Compliance department carries out periodic reviews of the Custodian's operations and reports its findings to the Manager's Risk Management Committee. - cash is held only with reputable banks with high quality external credit enhancements. None of the Company's financial assets are secured by collateral or other credit enhancements. |
||||||||||
|
19 |
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; and - to maximise the income and capital return to its equity shareholders through an appropriate balance of equity capital and debt. The Board normally seeks 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 Manager's views on the market and the extent to which revenue in excess of that which is required to be distributed should be retained. |
|
|
Capital management policies and procedures |
2011 £'000 |
2010 £'000 |
|
|
Debt |
|
|
|
|
Bank loan |
7,000 |
7,000 |
|
|
Equity |
________ |
________ |
|
|
Equity Share Capital |
10,012 |
9,528 |
|
|
Retained Earnings and other reserves |
41,295 |
37,956 |
|
|
|
________ |
________ |
|
|
|
51,307 |
47,484 |
|
|
|
________ |
________ |
|
|
Debt as a % of net assets |
13.64 |
14.74 |
|
|
|
________ |
________ |
|
20 |
Post balance sheet events |
||
|
|
Since the year end the Company has bought back 150,000 Ordinary shares of 25p for cancellation for a net consideration of £170,000. |
||
|
21 |
Fair value hierarchy |
|
|
The Company adopted the amendments to FRS 29 'Financial Instruments: Disclosures' effective from 1 January 2009. These amendments require an entity 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: inputs other than quoted prices included within Level 1 that are observable for the assets or liability, - Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). |
|
|
The financial assets and liabilities measured at fair value in the Income Statement are grouped into the fair value hierarchy at 30 April 2011 as follows: |
|
|
|
Note |
Level 1 £'000 |
Level 2 £'000 |
Level 3 £'000 |
Total £'000 |
|
|
Financial assets at fair value through profit or loss |
|
|
|
||
|
|
Quoted Equities |
a) |
31,560 |
- |
- |
31,560 |
|
|
OEICs |
a) |
11,334 |
5,751 |
- |
17,085 |
|
|
Corporate Bonds |
a) |
3,152 |
412 |
- |
3,564 |
|
|
Floating Rate Notes |
a) |
56 |
- |
- |
56 |
|
|
Preference Shares |
a) |
2,992 |
- |
- |
2,992 |
|
|
Convertible Bonds |
a) |
60 |
- |
- |
60 |
|
|
Unquoted Equities |
b) |
- |
- |
2,649 |
2,649 |
|
|
|
|
________ |
________ |
________ |
________ |
|
|
Net fair value |
|
49,154 |
6,163 |
2,649 |
57,966 |
|
|
|
|
________ |
________ |
________ |
________ |
|
|
a) Quoted Equities The fair value of the Company's investments in Quoted Equities have been determined by reference to their quoted bid prices at the reporting date. Quoted Equities included in Fair Value Level 1 are actively traded on recognised stock exchanges. |
|||||
|
|
b) Unquoted Equities The fair value of the Company's investments in unquoted and unlisted stocks have been determined by reference to primary valuation techniques described in note 1 (b).
A reconciliation of fair value measurements in Level 3 is set out in the following table. |
|||||
|
|
|
Equity investments |
Total |
|
|
Opening balance |
2,646 |
2,646 |
|
|
Purchases |
- |
- |
|
|
Sales |
- |
- |
|
|
Total gains or losses included in Gains on investments in the Income Statement: |
|
|
|
|
- on assets sold |
- |
- |
|
|
- on assets held at the end of the year |
3 |
3 |
|
|
|
________ |
________ |
|
|
Closing Balance |
2,649 |
2,649 |
|
|
|
________ |
________ |
Please note that past performance is not necessarily a guide to the future and that the value of investments and the income from them may fall as well as rise and may be affected by exchange rate movements. Investors may not get back the amount they originally invested.
The Annual Financial Report Announcement is not the Company's statutory accounts. The above results for the year ended 30 April 2011 have been agreed with the auditors and are an abridged version of the Company's full accounts, which have been approved and audited with an unqualified report. The 2010 and 2011 statutory accounts received unqualified reports from the Company's auditors and did not include any reference to matters to which the auditors drew attention by way of emphasis without qualifying the reports, and did not contain a statement under s.498(2) or 498(3) of the Companies Act 2006. The financial information for 2010 is derived from the statutory accounts for 2010 which have been delivered to the Registrar of Companies. The 2011 accounts will be filed with the Registrar of Companies in due course.
The Annual General Meeting of the Company will be held at 12.30 p.m. on 25 August 2011 at 12.30 p.m. at Bow Bells House, 1 Bread Street, London EC4M 9HH.
The audited Annual Report and financial statements will be posted to shareholders shortly. Copies may be obtained during normal business hours from the Company's Registered Office, Bow Bells House, 1 Bread Street, London EC4M 9HH or from the Manager's website, www.mamfundsplc.com/migt/index.asp
Neither the content of the Company's website nor the content of any website accessible from hyperlinks on the Company's website (or any other website) is (or is deemed to be) incorporated into, or forms (or is deemed to form) part of this announcement.
By order of the Board
Aberdeen Asset Management PLC - Secretary
22 June 2011
10. INVESTMENT PORTFOLIO
As at 30 April 2011
|
Company |
Sector |
Asset Class |
Valuation |
Total |
|
Bell AJB |
Special & Other Finance |
Alternative Assets |
2,600 |
4.46 |
|
Partners Group Global OpportunitesC |
Unit Trusts & OEICS |
Alternative Assets |
2,450 |
4.20 |
|
Celsius Fund Asian Real Estate IncomeC |
Unit Trusts & OEICS |
Property |
1,663 |
2.85 |
|
Royal London Sterling Extra Yld Bond A AccC |
Unit Trusts & OEICS |
Fixed Interest |
1,556 |
2.67 |
|
Threadneedle Property FundC |
Unit Trusts & OEICS |
Property |
1,452 |
2.49 |
|
Harewood Structured Inv US Enhanced Hedge PrefCls 'A' |
Investment Companies |
Overseas Equities |
1,412 |
2.42 |
|
AXA Investment Managers US Short Duration High Yield |
Unit Trusts & OEICS |
Fixed Interest |
1,407 |
2.41 |
|
GlaxoSmithKline |
Pharmaceuticals & Biotechnology |
UK Equities |
1,371 |
2.35 |
|
Ecclesiastical Insurance Office 8 5/8% Net Cum IrredPref |
Fixed Interest |
Preference Shares |
1,360 |
2.33 |
|
Merrill Lynch 2.2% 16/05/13 |
Fixed Interest |
Alternative Assets |
1,291 |
2.21 |
|
Top ten investments |
|
|
16,562 |
28.39 |
|
Scottish & Southern Energy |
Electricity |
UK Equities |
1,290 |
2.21 |
|
Signet Global Fixed Income Fund |
Fixed Interest |
Alternative Assets |
1,260 |
2.16 |
|
Ashmore Group |
Financial Services |
UK Equities |
1,206 |
2.07 |
|
Legal & General Group |
Life Insurance |
UK Equities |
1,136 |
1.95 |
|
City Merchants High Yield Trust |
Investment Companies |
Fixed Interest |
1,120 |
1.92 |
|
Hill (William) |
Travel & Leisure |
UK Equities |
1,117 |
1.92 |
|
Symphony Structured Products Jersey 0% 20/12/13 |
Structured Products |
Alternative Assets |
1,104 |
1.89 |
|
Reckitt Benckiser Group |
Household Goods & Home Construction |
UK Equities |
1,080 |
1.85 |
|
Unilever |
Food Producers |
UK Equities |
1,068 |
1.83 |
|
AstraZeneca |
Pharmaceuticals & Biotechnology |
UK Equities |
1,046 |
1.79 |
|
Top twenty investments |
|
|
27,989 |
47.98 |
|
Vodafone Group |
Mobile Telecommunications |
UK Equities |
1,030 |
1.77 |
|
Duet Real Estate Finance |
Investment Companies |
Property |
1,012 |
1.74 |
|
Tesco |
Food & Drug Retailer |
UK Equities |
1,009 |
1.73 |
|
Policy Selection Assured GBP 'C'C |
Unit Trusts & OEICS |
Alternative Assets |
990 |
1.70 |
|
Royal Dutch Shell EUR0.07 'B' |
Oil & Gas Producers |
UK Equities |
989 |
1.70 |
|
Macau Property Opportunities |
Investment Companies |
Property |
975 |
1.67 |
|
BP |
Oil & Gas Producers |
UK Equities |
971 |
1.67 |
|
Schroder Unit Trusts Asian IncMaximiserC |
Unit Trusts & OEICS |
Overseas Equities |
962 |
1.65 |
|
Elders Investment 17A Merrill Lynch Japan High IncomeC |
Structured Product |
Overseas Equities |
943 |
1.62 |
|
Invesco Leveraged High Yield Fund |
Investment Companies |
Fixed Interest |
942 |
1.62 |
|
Top thirty investments |
|
|
37,812 |
64.85 |
|
Somerset Cap Emerging Markets Dividend Growth |
Unit Trusts & OEICS |
Overseas Equities |
917 |
1.58 |
|
Schroder Oriental Income |
Investment Companies |
Overseas Equities |
899 |
1.54 |
|
Ignis Enhanced Argonaut European Income FundC |
Unit Trusts & OEICS |
Overseas Equities |
886 |
1.52 |
|
HSBC Holdings |
Banks |
UK Equities |
885 |
1.52 |
|
M&G European Loan 'C'C |
Unit Trusts & OEICS |
Fixed Interest |
859 |
1.47 |
|
BNY Mellon Fund Manager Newton Asian Income InstitutionalC |
Unit Trusts & OEICS |
Overseas Equities |
842 |
1.44 |
|
Ignis AM Argonaut European Income FundC |
Unit Trusts & OEICS |
Overseas Equities |
838 |
1.44 |
|
General Accident 8.875% Cum Pref |
Fixed Interest |
Preference Shares |
833 |
1.43 |
|
Phaunos Timber Fund |
Investment Companies |
Alternative Assets |
829 |
1.42 |
|
Thames River Traditional High Income FundC |
Unit Trusts & OEICS |
Fixed Interest |
827 |
1.42 |
|
Royal & Sun Alliance Insurance Group 7.375% Cum Pref |
Fixed Interest |
Preference Shares |
800 |
1.37 |
|
Acencia Debt Strategies 'C' |
Special & Other Finance |
Alternative Assets |
797 |
1.37 |
|
Lindsell Train Japanese Eqty 'B'C |
Unit Trusts & OEICS |
Overseas Equities |
787 |
1.35 |
|
BlackRock Commodities |
Investment Companies |
Overseas Equities |
778 |
1.33 |
|
BHP Billiton |
Mining |
UK Equities |
757 |
1.30 |
|
LBG Capital No.1 7.975% 15/09/24 |
Fixed Interest |
UK Preference Share |
757 |
1.30 |
|
Man Group |
Financial Services |
UK Equities |
749 |
1.28 |
|
HICL Infrastructure |
Investment Companies |
Property |
737 |
1.26 |
|
Liontrust European Absolute Return AccC |
Unit Trusts & OEICS |
Alternative Assets |
649 |
1.11 |
|
Standard Life European Private Equity Trust |
Equity Investment Instruments |
Alternative Assets |
634 |
1.09 |
|
Ecofin Water & Power Opportunities |
Investment Companies |
Overseas Equities |
622 |
1.07 |
|
HarbourVest Senior Loans Europe C |
Special & Other Finance |
Fixed Interest |
550 |
0.94 |
|
Hotel Corp |
Travel & Leisure |
UK Equities |
415 |
0.71 |
|
Canyon Resources 10% 31/12/13C |
Fixed Interest |
Fixed Interest |
412 |
0.71 |
|
PSource Structured Debt |
Investment Companies |
Alternative Assets |
406 |
0.70 |
|
Harewood Structured Inv US High Sterling Hedge Fund 'A' |
Investment Companies |
Overseas Equities |
388 |
0.67 |
|
Dolphin Capital Investors |
Real Estate |
Property |
380 |
0.65 |
|
HarbourVest Senior Loans Europe |
Special & Other Finance |
Fixed Interest |
340 |
0.58 |
|
Standard Life |
Life Insurance |
UK Equities |
339 |
0.58 |
|
Real Estate Opportunities 7.5% CNV 31/05/11 |
Fixed Interest |
Convertible Bonds |
60 |
0.10 |
|
Barclays Bank Floating Rate Note 30/04/12 |
Fixed Interest |
Alternative Assets |
56 |
0.10 |
|
Speymill Deutsche Immobilien |
Real Estate |
Property |
51 |
0.09 |
|
Altus Capital Japan Opportunities II BB |
Investment Companies |
Property |
49 |
0.08 |
|
Aberdeen Development Capital |
Investment Companies |
Alternative Assets |
26 |
0.04 |
|
Total investments |
|
|
57,966 |
99.41 |
|
Net current assetsA |
|
|
341 |
0.59 |
|
Total assetsA |
|
|
58,307 |
100.00 |
|
With the exception of those companies' shares marked with a specific share class above, all investments are in the ordinary shares of the investee company. |
||||
|
A Excluding bank loan of £7,000,000. |
||||
This information is provided by RNS
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