Interim Management Statement

RNS Number : 7219Y

Midas Income & Growth Trust PLC

08 September 2009

 



Midas Income & Growth Trust PLC

Unaudited Interim Management Statement - 3 months to 31 July 2009

To the shareholders of Midas Income & Growth Trust PLC

This interim management statement has been produced solely to provide additional information to shareholders as a body to meet the relevant requirements of the UK Listing Authority's Disclosure and Transparency Rules. It should not be relied upon by any other party or for any other purpose.

This interim management statement relates to the period from 1 May 2009 to 31 July 2009, and contains information that covers this period, and up to the date of publication of this interim management statement, unless otherwise specified.

Investment objective

The Company seeks to achieve an absolute return with low volatility through investment in a multi- asset portfolio. This will be achieved by investing in a diverse portfolio comprising principally of UK equities and fixed interest securities, together with overseas equities, property, alternative assets and structured products. 

The portfolio will ordinarily contain some 50 - 65 holdings, and targets a benchmark return of 8% per annum through a combination of high and growing income and additional capital growth. Investment will be made in a combination of direct holdings together with a range of other investment funds where more specialised management skills are necessary. 

Benchmark

The Company does not compare its performance to an index, but has instead adopted a target benchmark of 8% per annum. 

Material events 

On 9 July 2009, the Company posted its Annual Report and Accounts to 30 April 2009, and Notice of Annual General Meeting, to Shareholders. The Company's Annual General Meeting was held at One Bow Churchyard, Cheapside, London EC4 on 8 September 2009.

On 18 August 2009 the Company announced a first interim dividend to Ordinary Shareholders of 1.63p per share for the year ending 30 April 2010. The dividend will be payable on 18 September 2009 to those Shareholders on the register on 28 August 2009, Ex Date 26 August 2009.

During the period 215,000 Ordinary shares were purchased in the market for cancellation. Subsequent to the period end there have not been any further Ordinary shares purchased for cancellation

Earlier today, (8 September 2009) the Company held its Annual General Meeting at which all resolutions were passed. The special business included resolutions to allow the Company to issue shares (up to 10% of the issued share capital without pre-emption); and, to buy back shares (up to 14.99% of the issued share capital).

On 31 July 2009 the Company extended its existing Bank Facility with the Royal Bank of Scotland to 31 July 2011 at a reduced maximum level of £7m. Sums drawn under the Facility Agreement attract an interest charge of 2.8% above LIBOR and the new facility attracted a one off arrangement fee of 1.25%. The facility is fully drawn.

The Board is not aware of any other significant events or transactions which have occurred between 31 July 2009 and the date of publication of this interim management statement which would have a material impact on the financial position of the trust.

For latest NAV and share price information please refer to the manager's website, www.midascapital.co.uk.

Ten largest 'direct equity' holdings at 31 July 2009

A J Bell Holdings Limited*	4.8%
Royal Dutch Shell B Shares plc	2.3%
BP plc	2.1%
Vodafone plc	2.1%
National Grid plc	2.1%
GlaxoSmithKline plc	2.1%
Unilever plc	1.9%
Scottish & Southern Energy plc	1.7%
Tesco plc	1.6%
BHP Billiton plc	1.6%
Total	22.3%

*Unquoted Investment.

Ten largest 'other' holdings as at 31 July 2009

Royal London Sterling Extra High Yield Bond Fund	3.2%
Blackrock Commodities Income Investment Trust	2.9%
Signet Global Hedge Fund	2.7%
City Merchants High Yield Trust	2.7%
BNP Paribas 1 Year FTSE Short Strangle 15%	2.4%
Bellway 9.5% Preference Share	2.3%
Ignis Argonaut European Income Fund	2.3%
Elders 17A Japan High Income	2.2%
Assured Fund	2.1%
Ecclesiastical 8.625% Preference Share	2.1%
Total	24.9%

General description of Company's financial position and performance as at 31 July 2009

Total Gross Assets*	£46.9m
Debt:	£7.0m
Total Net Assets*	£39.9m
Gearing:	17.5%
Historic Net Yield	6.9%
Undiluted Net Asset Value	104.7p
Fully Diluted NAV*	104.5p
Mid-Market Share Price	94.5p
(Discount) /Premium	(9.6%)
Warrants	7.5p
Annual Management Fee Charged on Net Assets	1.0%

*Excluding current period revenue

Cumulative performance (%)

	as at  31/07/09	3  months	6  months	1  year	2  years	3  years	19/08/2005 to Date
Share Price	94.5	9.0	6.6	-18.2	-38.2	-32.4	-21.5
NAV	104.5	7.8	11.0	-17.5	-30.6	-21.2	-14.7
Index (8% p.a.)		1.9	3.9	8.0	16.6	26.0	35.5

Discrete performance (%)

	31/07/2009	31/07/2008	31/07/2007
Share Price	-18.2	-24.5	9.5
NAV	-17.5	-15.9	13.5
Index (8% p.a.)	8.0	8.0	8.0

Total Return; NAV to NAV, Net Income Reinvested, GBP

Source: Aberdeen Asset Managers Limited, Fundamental Data and Russell Mellon

NAV returns based on NAVs excluding income and with debt valued at par

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. Investors may not get back the amount they originally invested.

For Midas Income & Growth Trust PLC

Aberdeen Asset Management PLC, Secretary

8 September 2009

 

END

 

 

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