Interim Management Statement

RNS Number : 1090N

Midas Income & Growth Trust PLC

26 August 2011

 



Midas Income & Growth Trust PLC

Unaudited Interim Management Statement - 3 months to 31 July 2011

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 2011 to 31 July 2011, 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 29 June 2011 the Directors resolved to increase the A J Bell valuation to 500p per share (from 400p)

On 5 July 2011, the Company posted its Annual Report and Accounts to 30 April 2011, and Notice of Annual General Meeting, to Shareholders. 

On 26 July 2011 the Company renewed its £7m multi currency revolving advance facility with The Royal Bank of Scotland plc

On 16 August 2011 the Company announced a first interim dividend to Ordinary Shareholders of 1.63p per share for the year ending 30 April 2012. The dividend will be payable on 19 September 2011 to those Shareholders on the register on 26 August 2011, Ex Date 24 August 2011.

On 25 August 2011 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); to buy back shares (up to 14.99% of the issued share capital); and, to authorise the Directors to convene a General Meeting on 14 days' notice.

The Board is not aware of any other significant events or transactions which have occurred between 31 July 2011 and the date of publication of this interim management statement which would have a material impact on the financial position of the trust.

Ten largest "direct equity" holdings at 31 July 2011

1.	AJ Bell Holdings Limited	5.6
2.	GlaxoSmithKline plc	2.3
3.	Ashmore Group plc	2
4.	Reckitt Benckiser plc	1.9
5.	Unilever plc	1.9
6.	AstraZeneca plc	1.8
7.	Legal & General plc	1.8
8.	William Hill plc	1.8
9.	Vodafone plc	1.8
10.	Scottish & Southern Energy plc	1.7
Total		22.6

*Unquoted Investment.

Ten largest "other" holdings as at 31 July 2011

1.	Partners Group Global Opportunities	4.4
2.	Asian Real Estate Income Fund	2.8
3.	Royal London Sterling Extra Bond Fund	2.7
4.	Threadneedle Property Unit Trust	2.5
5.	Ecclesiastical Ins 8.625% Prefence Share	2.4
6.	AXA US Short High Yield Fund	2.4
7.	Harewood US Enhanced Income Fund	2.4
8.	ML 3 Year FTSE Short Strangle 8.8% Income	2.3
9.	Signet Global Fixed Inc Strategies	2.1
10.	Defensive Autocall 12.5% (UKX SX5E SPX) 12.5%	1.9
Total		25.9

General description of Company's financial position and performance as at 31 July 2011

Total Gross Assets*:	£58.1m
Debt:	£7.0m
Total Net Assets*:	£51.1m
Gearing:	13.7%
Historic Net Yield:	5.6%
Net Asset Value*	126.18p
Net Asset Value (including income)	128.00p
Mid-Market Share Price:	117.25p
Discount	(7.1%)
Annual Management Fee Charged on Net Assets:	1.0%
* (excluding income)

A performance fee is payable of 10% of any out performance of the benchmark of 8%. This is subject to a high water mark.

Cumulative performance (%)

	as at 31/07/11	3 months	6 months	1 year	2 year	3 year	5 year	19/08/2005 to Date
Share Price	117.3p	2.7	4.5	11.6	39.7	14.3	-5.5	9.7
NAV	126.2p	1.0	4.5	14.5	34.8	11.2	6.2	14.9
Index (8% p.a.)		1.9	3.9	8.0	16.6	26.0	46.9	58.1

Discrete performance (%)

	31/07/2011	31/07/2010	31/07/2009	31/07/2008	31/07/2007
Share Price	11.6	25.2	-18.2	-24.5	9.5
NAV	14.5	17.7	-17.5	-15.9	13.5
Index (8% p.a.)	8.0	8.0	8.0	8.0	8.0

Total Return; Net Income Reinvested, GBP

Source: Aberdeen Asset Managers Limited, Morningstar 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

26 August 2011

 

END

 

 

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