Annual Report and Accounts
RUFFER INVESTMENT COMPANY LIMITED
Financial Highlights
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30.06.08 |
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Buying Price |
Net Asset Value |
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£ |
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£ |
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Redeemable participating preference shares |
1.290 |
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1.313* |
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† The price an investor would be expected to pay in the market (London Stock Exchange).
* This is the Net Asset Value for valuation purposes as at 30.06.08. The Fund is valued weekly and at month end.
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Incorporation Date |
01.06.04 |
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Launch Date |
08.07.04 (C shares: 29.09.05) |
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Initial Net Asset Value |
98p per share (98p per 'C' share)** |
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Launch Price |
100p per share (100p per 'C' share) |
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Accounting dates |
Interim |
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Final |
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31 December |
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30 June |
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(Unaudited) |
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(Audited) |
**On 12 December 2005, the 'C' shares were converted into redeemable participating preference shares in the Company at a ratio of 0.8314 redeemable participating preference shares for each 'C' share, in accordance with the conversion method in the Placing and Offer for Subscription Document.
Chairman's Review
Performance
The Company's investment portfolio earned a positive total return of 14.7% in the year to 30 June 2008. This is calculated after all expenses of management and allowing for the payment of dividends totalling 2.50p per share. The objective rate of return for the year was 11.5%, being twice the Bank of England base rate for the period.
Earnings and Dividends
Earnings for the year were 2.34p per share on revenue account and 14.38p on capital account. In the course of the year dividends totalling 2.50p per share were paid. A final dividend of 1.25p per share in respect of the year to 30 June 2008 was approved on 18 September and will be paid on 24 October 2008.
Share Price
In the year to 30 June 2008 the shares moved from a discount of 4% to Net Asset Value (NAV) at the beginning of the period to a discount of 1% at the end of the period.
Annual General Meeting
The AGM of the Company will be held at 10.30 a.m. on Thursday 4 December at the Company's registered office at Trafalgar Court, Les Banques, St Peter Port, Guernsey.
Share Buyback Authority
With the shares trading at a discount to NAV throughout the year to 30 June 2008 (though more recently they have traded at a small premium), the Board has resolved to seek, at the AGM on 4 December, renewal of the authority to buy back shares at a discount to NAV in the terms to be stated in a Special Resolution. No shares have been bought back under authorisations granted at previous AGMs.
Share Redemption Facility
The Company has a Redemption Facility operable in November of each year. This is described in the notes to the financial statements. The Board has resolved not to offer the Facility in November 2008
John de Havilland
Chairman
18 September 2008
Directors
The Company has five Non-Executive Directors, all of whom are independent of the Investment Manager and all of whom were appointed as Directors on 3 June 2004 and have been Directors for the duration of the year:
John Anthony de Havilland, aged 70 and a resident of South Africa. He joined J Henry Schroder Wagg and Co Limited in 1959 as a fund manager and he became Director of Schroder Wagg in 1972. He ran the Schroder investment division's own account trading book for 20 years and also managed funds for Schroder clients including overseas government agencies. He retired from Schroders in 1990 since when he has continued with longstanding advisory and/or trustee roles for certain major family groups.
Wayne Bulpitt, aged 46 and a resident of Guernsey. He is managing director and founder of Active Group Limited which provides management and consultancy services to the offshore finance industry. He was formerly Head of Offshore Investment Services for Canadian Imperial Bank of Commerce, Global Private Banking & Trust division (1998-2001) and Managing Director of CIBC Fund Managers (Guernsey) Limited (1992-1998).
Jeannette Elaine Etherden, aged 48 and a resident of the United Kingdom. She started in 1983 as a research analyst at Confederation Life (acquired by Sun Life of Canada in 1994) and was Head of UK Equities from 1991. In 1996 she moved to Newton Investment Management as a multi-asset fund manager. She was appointed a Director of Newton in 1997 and additionally was Chief Operating Officer, Investments from 1999 until her resignation in 2001. From January 2004 to June 2006 she was Business Development Manager for the Candela Fund at Olympus Capital Management.
Peter William Luthy, aged 57 and a resident of the United Kingdom. He has worked in the fixed income market for 25 years. In 1990, he co-founded a credit focused bond broker, Luthy Baillie Dowsett Pethick and Co. Limited ('LBDP'). Dresdner Kleinwort Benson acquired LBDP in 1996 where he was Global Head of Credit Products. In 1998 he became global head of investment banking at Barclays Capital. Currently, he is a Managing Partner of Banquo Credit Management LLP.
Christopher Paul Spencer, aged 58 and a resident of Guernsey. He qualified as a chartered accountant in London in 1975. Following two years post qualification work in Bermuda he moved to Guernsey. He specialised in audit and fiduciary work, whilst managing partner/director of the Guernsey Practice of Pannell Kerr Forster (Guernsey) Limited and Praxis Fiduciaries Limited from 1990 until his retirement in May 2000. He is a non-executive Director of a number of hedge funds, funds of hedge funds and other investment and insurance companies.
Report of the Directors
The Directors of Ruffer Investment Company Limited ('the Company') present their Annual Financial Report for the year ended 30 June 2008 which have been properly presented in accordance with The Companies (Guernsey) Law, 1994.
Registration
The Company was incorporated with limited liability in Guernsey on 1 June 2004 as a company limited by shares and as a closed-ended investment company.
Principal Activity and Investment Objective
The Company is a closed-ended investment company whose shares are listed on the London Stock Exchange. The principal objective of the Company is detailed further in the Annual Financial Report.
Results
The results for the year are set out in the Statement of Operations.
Directors' Responsibilities
The Directors are responsible for preparing financial statements for each financial period which give a true and fair view of the state of affairs of the Company and of the net return of the Company for that period and are in accordance with applicable laws. In preparing those financial statements the Directors are required to:
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select suitable accounting policies and then apply them consistently;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and,
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prepare the financial statements on the going concern basis unless it is inappropriate to assume that the Company will continue in business.
The Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with The Companies (Guernsey) Law, 1994. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Auditors
The Auditors, Moore Stephens, have indicated their willingness to continue in office. Accordingly, a resolution for their reappointment will be proposed at the forthcoming Annual General Meeting.
Corporate Governance
The Committee on Corporate Governance published its latest report, being relevant to financial periods which commenced prior to 1 November 2006, on the principles of good governance and code of best practice (the 'Combined Code') in June 2006. The Company is a Guernsey incorporated company, and as such is not required to comply with the Combined Code. However, the Directors place a high degree of importance on ensuring that high standards of corporate governance are maintained and have therefore adopted the spirit of the Combined Code.
Corporate Governance principles
The Board, having reviewed the Combined Code, considers that it has maintained procedures during the year ended 30 June 2008 to ensure that it complies with the spirit of the Combined Code subject to the exceptions explained below and its special circumstances as an offshore company.
The Company also complies with the AIC guidelines on corporate governance, whose underlying principles are the same as those of the Combined Code.
Board responsibilities
The Board comprises five non-executive directors. All members of the Board are independent of the Investment Manager. None of the Directors has a contract of service with the Company.
The Board meets on at least four occasions each year, at which time the Directors review the management of the Company's assets and all other significant matters so as to ensure that the Directors maintain overall control and supervision of the Company's affairs. The Board is responsible for the appointment and monitoring of all service providers to the Company.
Chairman, Senior Independent Director and Chief Executive
The Chairman of the Board is John de Havilland. In considering the independence of the Chairman, the Board has taken note of the provisions of the Combined Code relating to independence, and has determined that Mr de Havilland is an independent Director. As the Chairman is an independent Director, no appointment of a senior independent director has been made. The Company has no employees and therefore there is no requirement for a chief executive.
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Directors |
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Board Meetings |
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Committee Meeting |
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John de Havilland |
5 attendances |
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1 attendance |
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Wayne Bulpitt |
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5 attendances |
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2 attendance |
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Jeannette Etherden |
5 attendances |
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1 attendance |
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Peter Luthy |
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4 attendances |
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1 attendance |
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Christopher Spencer |
5 attendances |
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2 attendance |
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Performance evaluation
The Chairman evaluates the performance of each of the Directors on an ongoing basis, taking into account the effectiveness of their contributions and their commitment to the role. The Chairman conducts formal appraisals with each Director on an annual basis. The Board conducts a similar appraisal of the Chairman.
Re-election
In accordance with the Company's Articles of Association, at the first Annual General Meeting of the Company all of the Directors retired from office and were subsequently re-elected. At each Annual General Meeting thereafter, one-third of the Directors, (or if their number is not three or an integral multiple of three), the number nearest to, but (except where there are less than three Directors) not greater than one-third, shall retire from office.
Supply and agenda of information
The quarterly board meetings are the principal source of regular information for the Board enabling it to determine policy and to monitor performance and compliance. A representative of the Investment Manager attends each board meeting thus enabling the Board to discuss and review the Company's operation and performance. Each Director has direct access to the Company Secretary, and may, at the expense of the Company, seek independent professional advice on any matter that concerns them in the furtherance of their duties.
Nomination committee
The Board as a whole fulfils the function of a Nomination Committee. Any proposal for a new Director will be discussed and approved by the Board. The Board will determine whether in future an external search consultancy or open advertising is used in the appointments of non-executive Directors. No Board appointments were made during the year.
Directors' remuneration
The level of Directors' fees is determined by the whole Board on an annual basis and therefore a separate Remuneration Committee has not been appointed. When considering the level of Directors' remuneration the Board considers the industry standard and the level of work that is undertaken. Since all Directors are non-executive, the Company is not required to comply with the principles of the Code in respect of executive directors' remuneration. Directors' fees are disclosed fully in each Annual Report. With effect from 1 April 2008 Directors' remuneration was increased with the basic fee payable to the Chairman being £28,500 p.a. and £20,000 p.a. to each Non-Executive Director. None of the Directors had a service contract with the Company during the year and accordingly a Director is not entitled to any minimum period of notice or to compensation in the event of their removal as a Director.
Going concern
The Directors believe that it is appropriate to continue to adopt the going concern basis in preparing the accounts since the assets of the Company consist mainly of securities which are readily realisable and, accordingly, the Company has adequate financial resources to continue in operational existence for the foreseeable future.
Internal control
The Board is responsible for establishing and maintaining the Company's system of internal control and for maintaining and reviewing its effectiveness. The system of internal controls is designed to manage rather than to eliminate the risk of failure to achieve business objectives and as such can only provide reasonable, but not absolute, assurance against material misstatement or loss.
The Board considers on an ongoing basis the process for identifying, evaluating and managing any significant risks faced by the Company. The process includes reviewing reports from the Company Secretary on risk control and compliance, in conjunction with the Investment Manager's regular reports which cover investment performance.
The Board has contractually delegated to external parties various functions as listed below. The duties of investment management, accounting and custody are segregated. Each of the contracts entered into with the parties was entered into after full and proper consideration by the Board of the quality and cost of services offered, including the control systems in operation as far as they relate to the affairs of the Company.
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Investment Management is provided by Ruffer LLP, a company authorised by the Financial Services
Authority. -
Administration, Registrar and Company Secretarial duties are performed by Northern Trust International Fund Administration Services (Guernsey) Limited, a company licensed and regulated by the Guernsey Financial Services Commission.
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CREST agency functions are performed by Computershare (CI) Limited, a company licensed and regulated by the Jersey Financial Services Commission.
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Custody of assets is undertaken by the RBC Dexia Investor Services Trust, part of the Royal Bank of Canada Group.
Audit committee
The Company's Audit Committee comprises all of the Directors. The audit committee has the following remit: to meet bi-annually and to consider, inter-alia: (a) annual and interim financial statements; (b) auditor reports; and (c) terms of appointment and remuneration for the auditors (including overseeing the independence of the auditors particularly as it relates to the provision of non-audit services). The Board is satisfied that the Audit Committee contains members with sufficient recent and relevant financial experience.
The Audit Committee has considered the requirement for an annual internal audit of the Company. On the basis that the Company is an investment company with no employees, and, due to the Company's service providers all being regulated entities who themselves are subject to internal audits, the Audit Committee is of the opinion that an internal audit is not necessary for the Company.
Dialogue with shareholders
The Investment Manager and the Corporate Broker maintain regular dialogue with institutional shareholders, feedback from which is reported to the Board. In addition, Board members are available to answer shareholders' questions at any time, and specifically at the Annual General Meeting. The Company Secretary is available to answer general shareholder queries at any time during the year.
Investment management
The key terms of the Investment Management Agreement and specifically the fee charged by the Investment Manager are set out in the financial statements. The Board believes that the investment management fee is competitive with other investment companies with similar investment mandates.
The Board reviews on an ongoing basis the performance of the Investment Manager and considers whether the investment strategy utilised is likely to achieve the Company's investment objective of achieving a positive total annual portfolio return, after all expenses, of at least twice the return of the Bank of England base rate. Having considered the portfolio performance and investment strategy, the Board has unanimously agreed that the interests of the shareholders as a whole are best served by the continuing appointment of the Manager on the terms agreed.
The Investment Management Agreement will continue in force until determined by the Investment Manager or the Company giving to the other party thereto not less than 12 months notice.
On behalf of the Board
Christoper Spencer Wayne Bulpitt
Director Director
25 September 2008
Investment Manager's Report
For the year ended 30 June 2008
In the twelve month period from 1 July 2007 to 30 June 2008 the asset value of the Company rose in capital terms from 116.7p to 131.3p which, together with a dividend of 2.5p, represents a total return of 14.7%, compared to the objective return of 11.5%, being twice the Bank of England base rate over the period.
Since launch on 8 July 2004 the Company has returned 39.8%, including dividends paid.
In the last annual report and accounts (for the year ended 30 June 2007) we wrote about a distinction between the liquidity crisis which was clearly manifest at the time, and a credit crisis, which we believed was the real mischief and whose lurking presence had been obscured by the acute problems in the banking system. The unfolding dislocation has played out almost exactly as we feared. The credit crunch has removed the source of cheap finance for housing, consumer spending and corporate growth and has caused havoc in the banking sector. Equity markets are extremely nervous and the most obvious victims - banks, house builders, and retailers - have been hit hard with share price declines that exceed in some cases even the bursting of the tech bubble. Conversely, high oil prices, up almost 50% this year, are pushing up inflation globally and acting as a tax on consumption. The result is that asset values are falling, economies are slowing, if not heading for recession, but at the same time pressures are rising for interest rate increases. We believe that the malign effects on the real economy, especially in the US and UK, are only just beginning to show, with multiyear lows in consumer confidence, declining house prices and evaporating housing transactions just some of the visible effects so far. Earnings expectations will have to be ratcheted down to much lower, but ultimately much more realistic, levels.
The philosophy of the Company is working well in practice. The investments in fear have all proved their worth over the period. The Yen and the Swiss Franc have benefited by more than others against the general weakness of Sterling. Gold bullion has been a happy place to be, as have short-dated and index-linked gilts. The STOXX 50 put option has been an extremely good investment, with profits taken at the market low-points throughout the period resulting in an overall profit on the investment of £3.4m or 3% of the portfolio.
In February we sold £6 million of a conventional gilt of two and a half years maturity, and reinvested the proceeds in the UK Treasury Index-Linked 1.25% 2017. In March we sold the last of our Norwegian bonds and invested in US Treasury Inflation Protected Securities (long duration - 2025), covering the currency back into Sterling. The Company now has 16% in index-linked and a further 9% in gold whose role is not dissimilar within the portfolio. It is unusual to be bearish of economic recovery (which we are) and yet fearful of inflation. Our argument is that the unwinding of the dislocation created by the leverage mania is deeply deflationary, and could result in the sort of conditions which occurred in Japan in the 1990s, and, more theatrically, in the United States in the 193 0s. We are increasingly convinced that the authorities will not let this happen, and will compromise their currencies, creating inflation, in order to mitigate the effects of financial dislocation. In trying to avoid a 1930s style depression in the US brought about by Central Bank inaction as deflationary forces multiplied and spread, the solution for Bernanke is a world where interest rates can be held below inflation rates, and where there is inflation generated by currency compromise at a time when prices might be expected to behave in a deflationary fashion. Britain's secondary banking crisis showed the efficacy of negative real interest rates.
For Bernanke, Britain's stagflation of the 1970s is a solution. The English remember the wholesale incompetence of economists and bankers alike and the Bank of England will do anything in their power to prevent its recurrence. This suggests that the path of the UK economy will be anything but smooth, however in the end we expect that the US view will prevail and inflation, via currency compromise, will be the order of the day.
We have concentrated our investment list in equities. Our top four positions now account for more than 11% of the portfolio. Of the larger holdings, we have sold Unilever, Coca Cola, Heineken and Telstra and reinvested in existing positions in Kraft, Ericsson and Swisscom. We hope that there will continue to be opportunities to buy strong global franchises at compelling valuations and we will seek to profit from these. While the oil price has been hitting new all-time highs, shares in the major integrated oil companies, and BP in particular, have refused to factor higher oil prices into their valuations, presenting us an attractive entry point. We have also added positions in Thai Beverage, British Telecom, Prodesse and Electrocomponents.
Japan remains the one part of the world where what problems there are seem to be chronic rather than acute, and where valuations already reflect the end of the world as we know it. Japan is also one of the few areas in the world where inflation would be welcomed as part of the process of economic normalisation and healing. We continue to feel that Japan is the most attractive of the major equity markets and at 30 June 2008, 12% of the portfolio was invested in Japan. Within this, the Japanese utility theme remains one of our favourites and we have holdings in Central Japan Railway, Nippon Telegraph & Telephone and Tohoku, the Japanese power generation company. Nippon Telegraph & Telephone is one of our largest equity holdings and is in an interesting position in terms of its capex cycle and regulatory environment. NTT was early to invest in fibre optics and its capex peaked in 2007 freeing up cash to spend on increasing their dividend and buying back shares - unusual for a Japanese company. In addition we have a holding in Japan Residential Investment Company which is trading at a big discount to its assets, which are subject to a completely different drumbeat than western property shares. When fully invested, it should have a yield approaching 10%, which for a Yen instrument is remarkable.
We have been in a period of extremely volatile markets, with large moves both upward and downward. Despite this the value of the portfolio has fluctuated only within a narrow range. During the last year this investment trust took on the appearance of a bear-market instrument in that its monthly performance was more likely to be positive in difficult markets than in good markets - as illustrated by the 14.7% total return for the period compared to the 13% decline in the FTSE All Share Total Return Index. However, our normal stance is agnostic as to market direction and it should not be inferred that the sun will only be out for the Company when it is raining.
Ruffer LLP
31 July 2008
Company Performance
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Price |
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Change in |
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at 30.06.08 |
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Buying Price |
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Buying |
Selling |
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From |
From |
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Price |
Price |
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Launch |
30.06.07 |
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£ |
£ |
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% |
% |
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Shares |
1.290 |
1.265 |
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+ 29.00 |
+ 14.36 |
Prices are published in the Financial Times in the 'Investment Companies' section, and in the Daily Telegraph's 'Share Prices & Market Capitalisations' section under 'Investment Trusts'.
Fund Size
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Net Asset |
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Net Asset |
Number of |
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Value |
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Value per Share |
Shares In Issue |
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£ |
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£ |
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30.06.08 |
116,617,351 |
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1.308* |
89,129,703 |
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30.06.07 |
123,690,774 |
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1.166 |
106,117,074 |
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30.06.06 |
126,375,613 |
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1.191 |
106,117,074 |
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30.06.05 |
55,935,077 |
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1.119 |
50,000,000 |
* Value reported to the London Stock Exchange was 1.313 using mid market values. Bid prices are presented as fair value in the Financial Statements.
Share Price Range
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Highest |
Lowest |
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Accounting |
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Buying Price |
Selling Price |
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Period to: |
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£ |
£ |
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30.06.08 |
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1.300 |
1.085 |
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30.06.07 |
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1.260 |
1.110 |
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30.06.06 |
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1.300 |
1.120 |
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30.06.05 |
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1.140 |
1.000 |
Net Asset Value Range
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Highest |
Lowest |
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Accounting |
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NAV |
NAV |
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Period to: |
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£ |
£ |
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30.06.08 |
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1.333 |
1.176 |
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30.06.07 |
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1.211 |
1.166 |
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30.06.06 |
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1.234 |
1.122 |
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30.06.05 |
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1.122 |
0.976 |
Past performance is not a guide to the future. The value of the shares and the income from them can go down as well as go up and you may not get back the amount originally invested.
Investment Policy
The principal objective of the Company is to achieve a positive total annual return, after all expenses, of at least twice the Bank of England base rate (5% as at 30 June 2008) by investing in internationally listed or quoted equities or equity related securities (including convertibles) and/or bonds which are issued by corporate issuers, supra-nationals or government organisations.
Investment Policies
In selecting investments the Company will adopt a stock picking approach and will not adopt any investment weightings by reference to any benchmark. Both the Board and the Investment Manager believe that the adoption of any index related investment style would inhibit the ability of the Company to deliver its objectives.
The Company invests across a broad range of assets, geographies and sectors in order to achieve its objective. This allocation will change over time to reflect the risks and opportunities identified by the Investment Manager across global financial markets, with an underlying focus on capital preservation. The allocation of the portfolio between equities and bonds will vary from time to time so as to enable the Company to achieve its objective. There are no restrictions on the geographical or sectoral exposure of the portfolio (except those restrictions noted below).
The universe of equity, equity related securities or bonds in which the Company may invest will be wide and may include companies domiciled in, and bonds issued by entities based in, non-European countries, including countries that may be classed as emerging or developing. This may result in a significant exposure to currencies other than sterling.
Investment restrictions and guidelines
It is not intended for the Company to have any structural gearing. The Company has the ability to borrow up to 30% of the net asset value at any time for short term or temporary purposes, as may be necessary for settlement of transactions, to facilitate share redemption or to meet ongoing expenses.
The Company will not invest in the securities of any company that is not quoted or does not have a listing on a Relevant Market.
The proportion of the portfolio invested into companies based in emerging or developing countries will be limited, at the time of any investment, to below 15% of the Company's gross assets.
The Directors have determined that the Company will not engage in currency hedging except where the Investment Manager considers such hedging to be in the interests of efficient portfolio management.
The Directors have determined that not more than 10%, in aggregate, of the value of the gross assets of the Company at the time of acquisition may be invested in other listed investment companies (including listed investment trusts) except that this restriction will not apply to investments in such entities which themselves have stated investment policies to invest no more than 15% of their gross assets in other listed investment companies (including listed investment trusts). Regardless of the above restriction, the Directors have further determined that no more than 15% in aggregate of the Company's gross assets will be invested in other listed investment companies (including listed investment trusts).
General
In accordance with the requirements of the UK Listing Authority, any material changes in the Investment Policy of the Company may only be made with the approval of shareholders.
Top Ten Holdings
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Market |
% of |
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Holding at |
Value |
Total Net |
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Stock name |
Currency |
30.06.08 |
£ |
Assets |
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Austria 3% 21/08/2009 |
CHF |
24,750,000 |
12,231,135 |
10.49 |
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UK Index-Linked Gilt 1.25% 22/11/2017 |
GBP |
10,500,000 |
11,594,290 |
9.94 |
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US Index-Linked Treasury Bond 2.375% 15/01/2025 |
USD |
12,250,000 |
7,349,500 |
6.30 |
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Switzerland 1.75% 05/11/2009 |
CHF |
13,100,000 |
6,454,467 |
5.53 |
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Switzerland 4% 08/04/2028 |
CHF |
12,240,000 |
6,370,073 |
5.46 |
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UK Treasury 5% 07/03/2012 |
GBP |
6,000,000 |
5,966,940 |
5.12 |
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UK Treasury 4.25% 07/03/2011 |
GBP |
6,000,000 |
5,859,540 |
5.03 |
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Gold Bullion |
GBP |
100,000 |
4,536,844 |
3.89 |
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Swisscom AG |
CHF |
24,050 |
4,042,607 |
3.47 |
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Nippon Telegraph & Telephone |
JPY |
1,300 |
3,179,662 |
2.73 |
Responsibility Statement
Responsibility statement of the Directors in respect of the annual financial report
We confirm that to the best of our knowledge and in accordance with DTR 4.1. 12R of the Disclosure and Transparency Rules:
(a) The Annual Financial Statements have been prepared in accordance with International Financial Reporting
Standards (IFRS) and give a true and fair view of the assets, liabilities, financial position and profit or loss of the
Company as at and for the year ended 30 June 2008
(b) The Annual Management Report includes information detailed in the Chairman's Review, Report of the
Directors, Investment Manager's Report and Notes to the Annual Financial Statements which provides a fair
review of the development and performance of the Company during the year; and a description of the principal
risks and uncertainties that the Company faced as at and for the year ended 30 June 2008.
Christopher Spencer Wayne Bulpitt
Director Director
25 September 2008
Balance Sheet
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|
30.06.08 |
|
30.06.07 |
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£ |
|
£ |
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ASSETS |
|
|
|
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Cash and cash equivalents |
4,314,396 |
|
346,711 |
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Unrealised gain on open forward foreign currency contracts |
9,172 |
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- |
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Receivables |
1,663,321 |
|
824,796 |
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Financial assets at fair value through profit or loss |
112,057,710 |
|
123,074,306 |
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Total Assets |
118,044,599 |
|
124,245,813 |
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EQUITY |
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Capital and reserves attributable to the |
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Company's shareholders |
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Management share capital |
2 |
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2 |
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Net assets attributable to holders of redeemable |
|
|
|
|
participating preference shares |
116,617,351 |
|
123,690,774 |
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|
|
|
|
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Total Equity |
116,617,353 |
|
123,690,776 |
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|
|
|
|
|
LIABILITIES |
|
|
|
|
Payables |
1,427,246 |
|
555,037 |
|
|
|
|
|
|
Total Liabilities |
1,427,246 |
|
555,037 |
|
|
|
|
|
|
|
|
|
|
|
Total Equity and Liabilities |
118,044,599 |
|
124,245,813 |
|
|
|
|
|
|
|
|
|
|
|
Net assets attributable to holders of redeemable |
|
|
|
|
participating preference shares (per share) |
1.308 |
|
1.166 |
Christopher Spencer Wayne Bulpitt
Director Director
25 September 2008
Statement of Operations
|
|
|
|
|
|
01.07.07 to |
|
01.07.06 to |
|
|
|
|
|
|
30.06.08 |
|
30.06.07 |
|
|
Revenue |
|
Capital |
|
Total |
|
Total |
|
|
£ |
|
£ |
|
£ |
|
£ |
|
Bank interest income |
159,786 |
|
- |
|
159,786 |
|
41,146 |
|
Fixed interest income |
1,882,955 |
|
- |
|
1,882,955 |
|
2,936,037 |
|
Dividend income |
1,102,082 |
|
- |
|
1,102,082 |
|
667,676 |
|
Net gains/(losses) on financial assets |
|
|
|
|
|
|
|
|
at fair value through profit or loss |
- |
|
13,733,288 |
|
13,733,288 |
|
(2,293,821) |
|
Other gains/(losses) |
- |
|
1,192,921 |
|
1,192,921 |
|
(118,526) |
|
Total investment income |
3,144,823 |
|
14,926,209 |
|
18,071,032 |
|
1,232,512 |
|
|
|
|
|
|
|
|
|
|
Management fees |
(300,542) |
|
(901,625) |
|
(1,202,167) |
|
(1,262,201) |
|
Expenses |
(364,711) |
|
(183,489) |
|
(548,200) |
|
(553,942) |
|
Total operating expenses |
(665,253) |
|
(1,085,114) |
|
(1,750,367) |
|
(1,816,143) |
|
|
|
|
|
|
|
|
|
|
Operating profit/(loss) before taxation |
2,479,570 |
|
13,841,095 |
|
16,320,665 |
|
(583,631) |
|
|
|
|
|
|
|
|
|
|
Withholding tax |
(225,513) |
|
- |
|
(225,513) |
|
(244,159) |
|
|
|
|
|
|
|
|
|
|
Operating profit/(loss) after taxation and increase/ |
|
|
|
|
|
|
|
|
(decrease) in net assets attributable to holders of redeemable participating preference shares |
2,254,057 |
|
13,841,095 |
|
16,095,152 |
|
(827,790) |
|
|
|
|
|
|
|
|
|
|
Basic and diluted earnings per share * |
2.34p |
|
14.38p |
|
16.72p |
|
-0.78p |
* Basic and diluted earnings per share are calculated by dividing the operating profit/(loss) after taxation and increase/(decrease) in net assets attributable to holders of redeemable participating preference shares by the weighted average number of redeemable participating preference shares. The weighted average number of shares for the period is 96,230,981 (2007: 106,117,074).
Statement of Changes in Equity
|
|
01.07.07 to |
|
01.07.06 to |
|
|
30.06.08 |
|
30.06.07 |
|
|
£ |
|
£ |
|
|
|
|
|
|
Net assets attributable to holders of redeemable |
|
|
|
|
participating preference shares at the start of the year |
123,690,774 |
|
126,375,613 |
|
|
|
|
|
|
Movement due to issues and redemptions of shares: |
|
|
|
|
|
|
|
|
|
Redemption of redeemable participating preference shares |
(20,727,990) |
|
- |
|
|
|
|
|
|
Net decrease from share transactions |
(20,727,990) |
|
- |
|
|
|
|
|
|
Increase/(decrease) in net assets attributable to holders of |
|
|
|
|
redeemable participating preference shares from operations |
16,095,152 |
|
(827,790) |
|
|
|
|
|
|
Distributions to holders of redeemable |
|
|
|
|
participating preference shares |
(2,440,585) |
|
(1,857,049) |
|
|
|
|
|
|
Increase/(decrease) in net assets attributable to holders of redeemable |
|
|
|
|
participating preference shares from operations (after distributions) |
13,654,567 |
|
(2,684,839) |
|
|
|
|
|
|
|
|
|
|
|
Net assets attributable to holders of redeemable |
|
|
|
|
participating preference shares at the end of the year |
116,617,351 |
|
123,690,774 |
Cash Flow Statement
|
|
01.07.07 to |
|
01.07.06 to |
|
|
30.06.08 |
|
30.06.07 |
|
|
£ |
|
£ |
|
Cash flows from operating activities |
|
|
|
|
Purchase of financial assets and settlement of financial liabilities |
(73,708,734) |
|
(37,198,127) |
|
Proceeds from sale of investments (including realised gains) |
99,546,391 |
|
31,853,203 |
|
Redemptions of shares |
(20,727,990) |
|
- |
|
Other receivables |
(714,297) |
|
- |
|
Transaction costs paid to brokers |
(183,489) |
|
(161,039) |
|
Bank interest received |
164,392 |
|
62,092 |
|
Fixed interest income received |
1,839,441 |
|
3,016,663 |
|
Dividends received |
1,016,762 |
|
652,367 |
|
Withholding tax |
(225,513) |
|
(244,159) |
|
Operating expenses paid |
(1,782,442) |
|
(1,849,171) |
|
Foreign exchange gain/(loss) |
1,183,749 |
|
(118,526) |
|
|
|
|
|
|
Net cash generated from/(utilised in) operating activities |
6,408,270 |
|
(3,986,697) |
|
|
|
|
|
|
Cash flow from financing activities |
|
|
|
|
Dividends paid |
(2,440,585) |
|
(1,857,049) |
|
|
|
|
|
|
Net cash flow from financing activities |
(2,440,585) |
|
(1,857,049) |
|
|
|
|
|
|
Net increase/(decrease) in cash and cash equivalents |
3,967,685 |
|
(5,843,746) |
|
|
|
|
|
|
Cash and cash equivalents at beginning of the year |
346,711 |
|
6,190,457 |
|
Cash and cash equivalents at end of the year |
4,314,396 |
|
346,711 |
Notes to the financial statements
1. Significant accounting policies
Basis of preparation
The financial statements have been prepared under the historical cost convention, as modified by the revaluation of financial assets and financial liabilities held at fair value through profit or loss, and in accordance with International Financial Reporting Standards (IFRS) and the Principal Documents.
In order to better reflect the activities of an investment company supplementary information which analyses the income statement between items of a revenue and capital nature has been presented within the Income Statement.
This annual report and financial statements, covering the year from 1 July 2007 to 30 June 2008, has been audited.
Standards, interpretations and amendments to published statements not yet effective
At the date of authorisation of these financial statements, the following standards and interpretations, which have not been applied in these financial statements, were in issue but not yet effective:
-
IAS 1 - Presentation of Financial Statements - Comprehensive revision including requiring a statement of comprehensive income [Effective date - 1 January 2009]
-
IAS 23 - Borrowing costs - Comprehensive revision to prohibit immediate expensing [Effective date - 1 January 2009]
-
IAS 27 - IAS 28 and IAS 31 - Consequential amendments arising from amendments to IFRS 3 [Effective date - 1 January 2009]
-
IAS 32 - Financial instruments presentation - Amendments relating to puttable instruments and obligations arising on liquidation [Effective date - 1 January 2009]
-
IFRS 8 - Operating segment - Amendments relating to IAS 14 Segment Reporting [Effective date - 1 January 2009]
The Directors anticipate that the adoption of these Standards except for IAS 32 in future periods will have no material financial and disclosure impact on the financial statements of the Company.
Other standards and IFRICs in issue but not yet effective are not considered to be relevant to the company and have not been disclosed.
Impact of New Standards and Amendment in Existing Standard
The Company has adopted for the first time IFRS 7 Financial Instruments: Disclosures and the complementary Amendment to IAS 1, Presentation of Financial Statements - Capital Disclosures in its 30 June 2008 financial statements. IFRS 7 Financial Instruments: Disclosures is mandatory for reporting periods beginning on or after 1 January 2007. The new Standard replaces and amends disclosure requirements previously set out in IAS 32 Financial Instruments: Presentation and Disclosures. All disclosures relating to financial instruments including all comparative information have been updated to reflect the new requirements. In particular, the Company's financial statements now feature a sensitivity analysis, to explain the Company's market risk exposure in regard to its financial instruments, and a maturity analysis that shows the remaining contractual maturities of financial liabilities, each as at the balance sheet date. The first time application of IFRS 7, however, has not resulted in any prior period adjustments of cash flows, net income or balance sheet line items.
Financial instruments
Financial assets and financial liabilities are recognised on the Company's Balance Sheet when the Company becomes a party to the contractual provisions of the instrument.
Financial assets and liabilities at fair value through profit or loss
Purchases and sales of investments are recognised on trade date (the date on which the Company commits to purchase or sell the investment). Investments purchased are recorded at fair value (excluding transaction costs). Investments are derecognised when the rights to receive cash flows from the investments have expired or the Company has transferred substantially all risks and rewards of ownership. Gains and losses on investments sold are shown in the notes to the financial statements and recognised in the Statement of Operations in the period in which they arise.
Investments traded in active markets are valued at the latest available bid prices ruling at 24:00 hours on the balance sheet date. Gains and losses arising from changes in fair value of financial assets are shown as net gains or losses on financial assets through profit or loss in the notes to the financial statements and realised in the Statement of Operations in the period in which they arise.
For other financial instruments, including other receivables, other payables and realised gain/loss on open forward foreign currency contracts, the carrying amounts as shown in the Balance Sheet approximate fair values due to the short term nature of these financial instruments.
Fair value
In accordance with the Company's accounting policies all assets and liabilities are carried at fair value. Gains and losses arising from changes in fair value of financial assets are shown as net gains or losses on financial assets through profit or loss in the notes to the financial statements and realised in capital in the Income Statement in the period in which they arise.
Investments of the Company also consist of shares in investment funds which are not listed on a regulated stock exchange and these are valued at the latest estimate of net asset value from the administrator of the respective investment funds i.e. most recent price is the best estimate of the amount for which holdings could have been disposed of at the Balance Sheet date.
Derecognition of financial instruments
A financial asset is realised when: (a) the rights to receive cash flows from the asset have expired, (b) the Company retains the right to receive cash flows from the asset, but has assumed an obligation to pay them in full without material delay to a third party under a 'pass through arrangement'; or (c) the Company has transferred substantially all the risks and rewards of the asset, or has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
A financial liability is realised when the obligation under the liability is discharged or cancelled.
Significant estimates and judgements
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equate to the related actual results.
Income
Dividend income from equity investments is realised in the Statement of Operations when the relevant investment is quoted ex-dividend. Investment income is included gross of withholding tax. Interest income is realised in the Statement of Operations for all debt instruments using the effective interest rate method.
Expenses
Expenses are accounted for on an accruals basis. Expenses incurred on the acquisition of investments at fair value through profit or loss are charged to the Income Statement in capital. All other expenses are charged to the Income Statement in revenue.
Cash and cash equivalents
Cash comprises cash on hand and deemed deposits. Cash equivalents are short-term, highly liquid investments with original maturities of three months or less and bank overdrafts.
Translation of foreign currency
Items included in the Company's financial statements are measured using the currency of the primary economic environment in which it operates ('the functional currency'). This is the British Pound ('Sterling'), which is the currency in which its shares are denominated. The Company has also adopted Sterling as its presentation currency.
Foreign currency transactions are translated into the functional currency using the exchange rate prevailing at the transaction date. Foreign exchange gains and losses resulting from the settlement of such transactions and those from the translation at period end exchange rates of monetary assets and liabilities denominated in foreign currencies are realised in the Statement of Operations.
Translation differences on non-monetary items such as financial assets held at fair value through profit or loss are reported as part of net gains or losses on financial assets through profit or loss in the Statement of Operations.
Forward foreign currency contracts Forward foreign currency contracts are treated as derivative contracts and as such are realised at fair value on the date on which they are entered into and subsequently remeasured at their fair value. Fair value is determined by rates in active currency markets. All derivatives are carried as assets when fair value is positive and as liabilities when fair value is negative.
2. Taxation
The amounts disclosed as taxation in the Statement of Operations of the Company relate solely to withholding tax suffered at source on income. Foreign capital gains tax charges are deducted from realised investment gains. The Company is exempt from taxation in Guernsey under the provisions of the Income Tax (Exempt Bodies) (Guernsey) Ordinance 1989 and has paid an annual exemption fee of £600. With effect from 1 January 2008 Guernsey's Corporate Tax Regime changed, however there is no effect on the Company's tax position as a result of this change as the Company will continue to register as tax exempt.
3. Distribution to shareholders
Any dividend will be declared semi-annually in September and March each year. An interim dividend of 1.25p per share (£1,326,464) was declared on 18 September 2007 and paid on 12 October 2007 in respect of the period from 1 January 2007 to 30 June 2007. An interim dividend of 1.25p per share (£1,114,121) was declared on 27 February 2008 and paid on 26 March 2008 in respect of the period covered by this Annual Financial Report. A further dividend of 1.25p per share was approved on 18 September 2008, also in respect of the period covered by this report. The financial impact of this dividend is not included in these financial statements.
4. Net gains/(losses) on financial assets at fair value through profit or loss
|
|
|
|
01.07.07 to |
|
01.07.06 to |
|
|
|
|
30.06.08 |
|
30.06.07 |
|
|
|
|
£ |
|
£ |
|
The net gains/(losses) on financial assets at fair value through profit or loss |
|
||||
|
Loss during the year comprise: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains realised on investments sold during the year |
|
8,106,652 |
|
2,992,741 |
|
|
Unrealised gains/(losses) arising from changes in fair value during the year |
5,626,636 |
|
(5,286,562) |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gains/(losses) on financial assets at fair value through profit or loss |
13,733,288 |
|
(2,293,821) |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5. Other gains and losses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
01.07.07 to |
|
01.07.06 to |
|
|
|
|
30.06.08 |
|
30.06.07 |
|
|
|
|
£ |
|
£ |
|
Unrealised gains on forward foreign currency contracts |
|
9,172 |
|
- |
|
|
Other realised and unrealised foreign exchange gains/(losses) |
1,183,749 |
|
(118,526) |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,192,921 |
|
(118,526) |
|
|
|
|
|
|
|
6. Management fees
The Company's Investment Manager is Ruffer LLP. The Manager receives an annual fee, payable monthly in arrears, at the rate of 1 per cent. Per annum of the Net Asset Value of the Company on a mid-market basis.
During the year ended 30 June 2008, management fees of £1,202,167 (2007 £1,262,201) were charged to the Company, of which £901,625 (2007 £946,650) was charged to the capital reserves of the Company.
7. Expenses
|
|
|
|
|
|
01.07.07 to |
01.0 7.06 to |
|
|
30.06.08 |
30.06.07 |
|
|
£ |
£ |
|
Transaction costs |
183,489 |
161,039 |
|
Administration fee |
170,286 |
176,220 |
|
Directors' fees |
98,375 |
95,000 |
|
General expenses |
77,977 |
63,690 |
|
Custodian and trustee charges |
2,212 |
42,001 |
|
Audit fee |
15,861 |
15,992 |
|
|
548,200 |
553,942 |
|
|
|
|
|
30.06.08 |
30.06.07 |
|
|
£ |
£ |
|
Cost of investments held at end of the year |
108,547,501 |
125,190,733 |
|
Appreciation/(depreciation) on revaluation |
3,510,209 |
(2,116,427) |
|
Financial assets at fair value through profit or loss at end of the year |
112,057,710 |
123,074,306 |
|
9. Receivables |
|
|
|
|
30.06.08 |
30.06.07 |
|
|
£ |
£ |
|
Amounts falling due within one year: |
|
|
|
Fixed interest income receivable |
802,532 |
759,018 |
|
Investment income receivable |
146,492 |
61,172 |
|
Other receivables |
714,297 |
- |
|
Bank interest receivable |
- |
4,606 |
|
|
1,663,321 |
824,796 |
|
10. Payables |
|
|
|
|
30.06.08 |
30.06.07 |
|
|
£ |
£ |
|
Amounts falling due within one year: |
|
|
|
Due to broker |
1,087,773 |
- |
|
Management fees payable |
98,402 |
372,579 |
|
Other creditors |
241,071 |
182,458 |
|
|
1,427,246 |
555,037 |
|
11. Share capital and share premium |
|
|
|
|
30.06.08 |
30.06.07 |
|
Authorised Share Capital |
£ |
£ |
|
100 Management Shares of £1.00 each |
100 |
100 |
|
200,000,000 Unclassified Shares of 0.01p each |
20,000 |
20,000 |
|
75,000,000 C Shares of 0.1p each |
75,000 |
75,000 |
|
|
95,100 |
95,100 |
|
|
Number of shares |
Share Capital |
||||
|
30.06.08 |
30.06.07 |
30.06.08 |
30.06.07 |
|||
|
Issued Share Capital |
|
|
£ |
£ |
||
|
Management Shares |
|
|
|
|
||
|
Management Shares of £1.00 each |
2 |
2 |
2 |
2 |
||
|
Equity Shares |
|
|
|
|
||
|
Redeemable Participating Preference |
|
|
|
|
||
|
Shares of 0.01p each: |
|
|
|
|
||
|
Balance at start of year |
106,117,074 |
106,117,074 |
10,612 |
10,612 |
||
|
Redeemed during the year |
(16,987,371) |
- |
(1,699) |
- |
||
|
Balance as at end of year |
89,129,703 |
106,117,074 |
8,913 |
10,612 |
||
|
|
|
|
||||
|
|
30.06.08 |
30.06.07 |
||||
|
|
£ |
£ |
||||
|
Share Premium Account |
|
|
||||
|
Balance at 1 July 2007/1 July 2006 |
66,430,850 |
66,430,850 |
||||
|
Redeemed during the year |
(20,726,291) |
- |
||||
|
Balance at 30 June 2008/30 June 2007 |
45,704,559 |
66,430,850 |
||||
|
Transferred to distributable reserves |
(45,704,559) |
- |
||||
|
Balance at 30 June 2008/30 June 2007 |
- |
66,430,850 |
||||
Management Shares
The Management Shares, of which there are 2 in issue, were created to comply with Companies Law, under which there must be a class of non-redeemable shares in issue in order that the participating shares may be redeemable preferences shares in accordance with Companies Law. The Management Shares carry one vote each on a poll, do not carry any right to dividends and, in a winding-up, rank only for a return of the amount of the paid-up capital on such shares after return of capital on all other shares in the Company. The Management Shares are not redeemable.
Unclassified Shares
Unclassified Shares can be issued as Nominal Shares or Redeemable Participating Preference Shares ('Participating Shares'). Nominal Shares can only be issued at par to the Administrator. The Administrator is obliged to subscribe for Nominal Shares for cash at par when Participating Shares are redeemed to ensure that funds are available to redeem the nominal amount paid up on Participating Shares.
The holder or holders of Nominal Shares shall have the right to receive notice of and to attend general meetings of the Company but shall not be entitled to vote thereat. Nominal Shares shall carry no right to dividends. In a winding-up, holders of Nominal Shares shall be entitled to be repaid an amount equal to their nominal value out of the assets of the Company.
The holders of fully paid Participating Shares carry a preferential right to a return of capital in priority to the Management Shares but have no pre-emptive right and are entitled to one vote at all meetings of the relevant class of shareholders.
'C' Shares
In order to facilitate the expansion of the Company, 75,000,000 'C' shares (of 0. 1p) were authorised of which 67,500,000 were issued in the financial year 2006. The holdings in 'C' shares were then converted into 56,117,074 redeemable participating preference shares (of 0.01p).
Share Premium Account
By way of a special resolution passed on 22 June 2004, it was resolved that the amount standing to the credit of the share premium account of the Company following completion of the issue (less any formation and initial expenses set off against the share premium account) be cancelled and the amount so cancelled be credited as a distributable reserve. This resolution was approved by the Royal Court of Guernsey on 17 December 2004.
By way of a special resolution passed on 8 November 2007, it was resolved that the amount standing to the credit of the share premium account of the Company following completion of the issue (less any expenses set off against the share premium account) be cancelled and the amount so cancelled be credited to the reserve to be established in the books of account of the Company, but shall be able to be applied in any manner in which the Company's profits available for distribution (as determined in accordance with the Companies (Guernsey) Law, 1994 to 1996) are able to be applied, including the purchase of the Company's own shares and the payment of dividends. This resolution was approved by the Royal Court of Guernsey on 8 February 2008.
12. Net assets attributable to holders of redeemable participating preference shares
|
|
Non-distributable reserves |
|
||||
|
|
|
Share capital |
|
|
|
|
|
|
Capital |
and |
Foreign |
Foreign |
Revenue |
|
|
|
reserve |
share premium |
exchange |
exchange |
Reserves |
Total |
|
|
£ |
£ |
£ |
£ |
£ |
£ |
|
BALANCE AT 01.07.07 |
5,174,380 |
66,441,462 |
480,150 |
(16,107) |
51,610,889 |
123,690,774 |
|
|
|
|
|
|
|
|
|
Gain on realisation of investments |
8,106,652 |
- |
- |
- |
- |
8,106,652 |
|
Increase in unrealised appreciation |
5,626,636 |
- |
- |
- |
- |
5,626,636 |
|
Movement in unrealised gain on forward foreign currency contracts |
- |
- |
9,172 |
- |
- |
9,172 |
|
Foreign exchange movement |
- |
- |
1,097,750 |
85,999 |
- |
1,183,749 |
|
Redemptions of shares |
- |
(20,727,990) |
- |
- |
- |
(20,727,990) |
|
Operating profit for the year |
- |
- |
- |
- |
2,254,057 |
2,254,057 |
|
Capital movement during the year |
(1,085,114) |
- |
- |
- |
- |
(1,085,114) |
|
Distribution for the year |
- |
- |
- |
- |
(2,440,585) |
(2,440,585) |
|
Transfer to distributable reserve |
- |
(45,704,559) |
- |
- |
45,704,559 |
- |
|
BALANCE AT 30.06.08 |
17,822,554 |
8,913 |
1,587,072 |
69,892 |
97,128,920 |
116,617,351 |
13. Net asset value reconciliation
The Company announces its Net Asset Value, based on mid-market value, to the London Stock Exchange at each weekly and month end valuation point. The following is a reconciliation of the value attributable to redeemable participating preference shares as presented in these financial statements, using International
|
Financial Reporting Standards, to the last net asset value: |
|
|
|
|
30.06.08 |
30.06.07 |
|
|
£ |
£ |
|
Net Asset Value per share for valuation purposes |
1.313 |
1.167 |
|
Difference due to bid prices presented as fair value as opposed to mid-market value reported to the London Stock Exchange |
(0.005) |
(0.001) |
|
Net asset attributable to holders of redeemable participating preference shares (per share) |
1.308 |
1.166 |
|
14. Contingent liabilities |
|
|
|
There were no contingent liabilities at the Balance Sheet date. |
|
|
15. Related party transactions
The Directors are responsible for the determination of the investment policy of the Company and have overall responsibility for the Company's activities.
The Company is managed by Ruffer LLP, an independent business incorporated in the United Kingdom as a limited liability partnership. The Company and the Investment Manager have entered into a Management Agreement under which the Investment Manager has been given responsibility for the day-to-day discretionary management of the Company's assets (including uninvested cash) in accordance with the Company's investment objective and policy, subject to the overall supervision of the Directors and in accordance with the investment restrictions in the Management Agreement and the Articles of Association. The management fees charged to the statement of operations is £1,202,167 (2007 £1,262,201) for the year of which £98,402 (2007 £372,579) remains payable at the year end.
The Company has five non-executive directors, all independent of the Investment Manager.
The Directors of the Company are remunerated for their services at such a rate as the Directors determine provided that the aggregate amount of such fees does not exceed £150,000 per annum.
With effect from 1 April 2008 Directors' remuneration was increased with the basic fee payable to the Chairman being £28,500 per annum (previously £25,000 per annum) and £20,000 per annum (previously £17,500 per annum) to each Non-Executive Director.
Total Directors' fees for the year, including the outstanding Directors' fees due to Directors at the end of the year, are detailed below.
|
|
|
30.06.07 |
|
|
£ |
£ |
|
Directors' fees for the year |
98,375 |
95,000 |
|
Accrued at end of the year |
26,816 |
23,441 |
Shares held by related parties
As at 30 June 2008, Directors of the Company held the following numbers of shares beneficially:
|
|
|
30.06.07 |
|
Directors |
Shares |
Shares |
|
Wayne Bulpitt |
20,000 |
20,000 |
|
Jeannette Etherden |
36,627 |
36,627 |
|
Christopher Spencer |
14,157 |
14,157 |
As at 30 June 2008, Jonathan Ruffer, Chief Executive Officer of the Investment Manager and his immediate family owned 384,000 (30.06.07: 264,705) shares in the Company.
As at 30 June 2008, the Investment Manager held 23,738,780 (30.06.07: 23,818,705) shares on behalf of its discretionary clients in the Company.
16. Substantial Interests
As at 31 August 2008, shareholders with holdings greater than 3% in the Company were:
|
Shareholder |
Shares |
% |
|
Clients of Roy Nominees Limited |
21,568,098 |
24.20 |
|
Clients of State Street Nominees Limited |
15,219,786 |
17.08 |
|
Clients of Chase Nominees Limited |
5,561,688 |
6.24 |
|
Clients of Adam & Company (Nominees) Limited |
5,043,634 |
5.66 |
|
Clients of Rathbone Nominees Limited |
4,801,582 |
5.39 |
|
Clients of Pershing Keen Nominees Limited |
4,159,144 |
4.67 |
|
Clients of HSBC Global Custody Nominee (UK) Limited |
3,935,022 |
4.41 |
|
Clients of R C Greig Nominees Limited |
3,565,504 |
4.00 |
|
Clients of Giltspur Nominees Limited |
3,280,550 |
3.68 |
17. Segment reporting
As required by IAS 14, the total fair value of the financial instruments held by the Company by each major geographical segment, and the equivalent percentages of the total value of the Company, are as follows:
|
|
£ |
% |
|
Government Bonds |
|
|
|
Sterling denominated |
23,420,770 |
20.09 |
|
Swiss Franc denominated |
29,737,703 |
25.49 |
|
United States denominated |
7,349,500 |
6.30 |
|
Corporate Bonds |
|
|
|
Switzerland |
2,959,796 |
2.54 |
|
Gold Bullion |
4,536,844 |
3.89 |
|
Equities |
|
|
|
United Kingdom |
12,605,735 |
10.81 |
|
Other European |
5,943,796 |
5.09 |
|
Japanese |
14,541,895 |
12.47 |
|
Other |
10,020,594 |
8.60 |
|
Investment Funds |
941,077 |
0.81 |
|
Total |
112,057,710 |
96.09 |
Revenue earned is reported separately on the face of the Statement of Operations as dividend income received from equities, and interest income received from fixed interest securities and bank deposits.
The Cash Flow Statement separately reports cash flows from operating, investing and financing activities.
18. Subsequent events
No significant subsequent events have occurred in respect of the Company that may be deemed relevant to the accuracy of these financial statements.
19. Financial instruments
In accordance with its investment objectives and policies, the Company holds financial instruments which at any one time may comprise the following:
-
securities held in accordance with the investment objectives and policies;
-
cash and short-term receivables and payables arising directly from operations;
-
derivative transactions including investment in forward foreign currency contracts; and
-
borrowing used to finance investment activity up to a maximum of 30%. of the Net Asset Value of the Company.
Terms, conditions and accounting policies
The financial instruments held by the Company are comprised principally of internationally listed or quoted equities or equity related securities (including convertibles) or bonds which are issued by corporate issuers, supra-nationals or government organisations.
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of its financial assets and liabilities are disclosed in the notes to the financial statements. The following table analyses the carrying amounts of the financial assets and liabilities by category as defined in IAS 39.
Categories of financial instruments held by the Company at the reporting date.
|
|
|
|
|
30.06.08 |
|
30.06.07 |
|
|
|
|
|
Fair Value |
|
Fair Value |
|
|
|
|
£ |
|
£ |
|
|
Financial assets designated at fair value through profit or loss |
|
|
||||
|
Listed securities |
|
|
|
111,116,633 |
|
122,059,155 |
|
Unlisted securities |
|
|
|
941,077 |
|
1,015,151 |
|
Unrealised gain on open forward foreign currency contracts |
9,172 |
|
- |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total financial assets designated at fair value through profit or loss |
112,066,882 |
|
123,074,306 |
|||
|
|
|
|
|
|
|
|
|
Receivables |
|
|
|
5,977,717 |
|
1,171,507 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Receivables include Cash and cash equivalents and Receivables |
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
30.06.08 |
|
30.06.07 |
|
|
|
|
|
Fair Value |
|
Fair Value |
|
|
|
|
|
£ |
|
£ |
|
|
|
|
|
|
|
|
|
Financial liabilities measured at amortised cost |
|
|
|
|||
|
Payables |
|
|
|
1,427,246 |
|
555,037 |
|
|
|
|
|
|
|
|
20. Financial Risk Management and Associated Risks
The Company is exposed to a variety of financial risks as a result of its activities. These risks include market risk (including price risk, foreign currency risk and interest rate risk), credit risk and liquidity risk. These risks, which have applied throughout the year and the Manager's policies for managing them are summarised below:
Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. The company's activities expose it primarily to the market risks of changes in market prices, interest rates and foreign currency exchange rates.
Market price risk
Market price risk arises mainly from the uncertainty about future prices of the financial instruments held by the Company. It represents the potential loss the Company may suffer through holding market positions in the face of price movements.
The Company's investment portfolio is exposed to market price fluctuations which are monitored by the Investment Manager in pursuance of the investment objectives and policies. Adherence to investment guidelines and to investment and borrowing powers set out in the Placing and Offer for Subscription document mitigates the risk of excessive exposure to any particular type of security or issuer.
Market price sensitivity analysis
The sensitivity analysis below has been determined based on the exposure to equity price risks at the reporting date. The 5% reasonably possible price movement used by the Company is based on the Investments Manager best estimates.
A 5% increase in the market prices of investments as at 30 June 2008 would have increased the net assets attributable to holders of redeemable participating preference shares by £5,602,886 (30.06.07 £6,153,715) and an equal change in the opposite direction would have decreased the net assets attributable to holders of redeemable participating preference shares by an equal opposite amount.
Foreign currency risk
Foreign currency risk arises from fluctuations in the value of a foreign currency. It represents the potential loss the Company may suffer though holding foreign currency assets in the face of foreign exchange movements.
A portion of the Company's investment portfolio is invested in securities denominated in currencies other than in Sterling, the functional and presentation currency of the Company, and the Balance Sheet may be significantly affected by movements in the exchange rates of such currencies against Sterling. The Investment Manager has the power to manage exposure to currency movements by using forward foreign currency contracts and details of the holdings of such instruments at the date of these financial statements is set out below. The Company will not engage in currency hedging except where it considers such hedging to be in the interests of efficient portfolio management.
As at 30 June 2008, the Company had one (30.06.07: nil) forward foreign currency contract open.
|
|
|
|
|
|
Notional |
|
|
|
|
|
|
|
amount of |
|
|
|
|
|
|
|
contracts |
Fair value |
|
Expiration |
Underlying |
|
|
|
outstanding |
assets |
|
|
|
|
|
|
|
£ |
|
27 March 2009 |
Foreign currency (Sale of USD) |
US$14,700,000 |
9,172 |
|||
|
|
|
|
|
|
|
9,172 |
The Investment Manager's treatment of currency transactions other than in Sterling is set out in the notes to the financial statements under 'Translation of foreign currency' and 'Forward foreign currency contracts'.
As at 30 June 2008 and 2007, the Company holds the following assets and liabilities in currencies other than the reporting currency:
|
|
30.06.08 |
|
30.06.08 |
|
30.06.07 |
|
30.06.07 |
|
|
Assets |
|
Liabilities |
|
Assets |
|
Liabilities |
|
|
£ |
|
£ |
|
£ |
|
£ |
|
Swiss Francs |
37,277,886 |
|
- |
|
32,904,234 |
|
- |
|
Japanese Yen |
15,145,311 |
|
- |
|
12,104,190 |
|
- |
|
United States Dollar |
14,406,488 |
|
- |
|
9,238,351 |
|
- |
|
Australian Dollar |
1,265,292 |
|
- |
|
4,093,336 |
|
- |
|
Singapore Dollar |
1,263,944 |
|
- |
|
- |
|
- |
|
Swedish Krona |
975,722 |
|
- |
|
678,619 |
|
- |
|
Euro |
925,467 |
|
- |
|
6,033,796 |
|
- |
|
South African Rand |
527,544 |
|
- |
|
637,914 |
|
- |
|
Norwegian Krone |
- |
|
- |
|
14,462,740 |
|
- |
|
Canadian Dollar |
- |
|
- |
|
567,812 |
|
- |
|
Malaysian ringgit |
- |
|
- |
|
40,445 |
|
- |
Foreign currency sensitivity
As at 30 June 2008 and 2007, if the foreign currency balances had weakened by 5% against the Sterling with all other variables held constant, net assets attributable to holders of redeemable participating preference shares would be £3,598,555 lower (30.06.07 £4,038,072), net of open forward foreign currency contracts and due mainly as a result of foreign currency losses on translation of these financial assets and liabilities to Sterling. A 5% strengthening of the foreign currency balances against the Sterling would have resulted in an equal but opposite effect on the net assets attributable to holders of redeemable participating preference shares. Any changes in the foreign exchange rate will directly affect the operating profit and loss reported in the Statement of Operations.
Interest rate risk
Interest rate risk represents the uncertainty of investment return due to changes in the market rates of interest.
The Company invests in fixed and floating rate securities. The income of the Company may be affected by changes to interest rates relevant to particular securities or as a result of the Investment Manager being unable to secure similar returns on the expiry of contracts or sale of securities. Interest receivable on bank deposits or payable on the bank overdraft positions will be affected by fluctuations in interest rates.
The value of fixed interest securities will be affected by general changes in interest rates that will in turn result in increases or decreases in the market value of those instruments. When interest rates decline, the value of the Company's investments in fixed rate debt obligations can be expected to rise, and when interest rates rise, the value of those investments may decline. There can be no assurance as to the levels of default and/or recovery that may be experienced with regard to the Company's debt security investments.
The investment portfolio details the security type, issuer, interest rate, and maturity date of all of the Company's fixed and floating rate securities as at 30 June 2008.
The table below summarises the Company's exposure to interest rate risks. It includes the Company's financial assets and liabilities at fair values, categorised by the earlier of contractual re-pricing or maturity dates.
|
|
Floating |
Fixed Non-Interest |
Total |
Total |
|
|
|
rate |
rate |
bearing |
30.06.08 |
30.06.07 |
|
|
£ |
£ |
£ |
£ |
£ |
|
Financial Assets |
|
|
|
|
|
|
Cash and cash equivalents |
4,314,396 |
- |
- |
4,314,396 |
346,711 |
|
Financial assets at fair value through profit or loss |
- |
63,467,769 |
48,589,941 |
112,057,710 |
123,074,306 |
|
Unrealised gain on open forward foreign currency contracts |
- |
- |
9,172 |
9,172 |
- |
|
Receivables |
- |
- |
1,663,321 |
1,663,321 |
824,796 |
|
|
4,314,396 |
63,467,769 |
50,262,434 |
118,044,599 |
124,245,813 |
|
Financial Liabilities |
|
|
|
|
|
|
Payables |
- |
- |
1,427,246 |
1,427,246 |
555,037 |
|
|
- |
- |
1,427,246 |
1,427,246 |
555,037 |
The table below summarises weighted average effective interest rates for monetary financial instruments.
|
|
|
Weighted average period |
|
Weighted average period |
|
|
30.06.08 |
for which rate/ |
30.06.07 |
for which rate/ |
|
|
% p.a. |
yield is fixed |
% p.a. |
yield is fixed |
|
UK Government Bonds |
3.2372% |
6.27 years |
5.7768% |
2.24 years |
|
Austrian Government Bonds |
2.5020% |
1.14 years |
3.0450% |
2.14 years |
|
Swiss Government Bonds |
1.6804% |
8.72 years |
3.2919% |
18.68 years |
|
Swiss Corporate Bonds |
2.9370% |
1.43 years |
3.1670% |
2.42 years |
|
United States Government Bonds |
2.0200% |
16.56 years |
- |
- |
|
Norwegian Government Bonds |
- |
- |
5.2885% |
2.82 years |
An increase of 100 basis points in interest rates as at the reporting date would have decreased the net assets attributable to holders of redeemable participating preference shares and changes in net assets attributable to holders of redeemable participating preference shares by £4,113,705 (2007 £3,427,365). A decrease of 100 basis points would have had an opposite effect by £4,761,298 (2007 £4,016,925).
Credit risk
Credit risk is the risk that an issuer or counterparty will be unable or unwilling to meet a commitment that it has entered into with the Company. Failure of any relevant counterparty to perform its obligations in respect of these items may lead to a financial loss.
The Company will not invest in the securities of any company that is not quoted or does not have a listing on a market specified in the Financial Services and Markets Act 2000 (Financial Promotions) Order 2001 and such other financial markets as may be specifically agreed from time to time between the Board and the Investment Manager.
All transactions in listed securities are settled/paid upon delivery using approved brokers. The risk of default is considered minimal, as delivery of securities sold is only made once the broker has received payment. Payment is made on a purchase once the securities have been received by the broker. The trade will fail if either party fails to meet their obligation.
The Placing and Offer for Subscription document allows investment in a wide universe of equity related securities and bonds, including countries that may be classed as emerging or developing. In adhering to investment restrictions set out within the document, the Company mitigates the risk of any significant concentration of credit risk.
Credit risk analysis
The Company's maximum credit exposure is limited to the carrying amount of financial assets recognised at the Balance Sheet date, as summarised below:
|
|
30.06.08 £ |
30.06.07 £ |
|
Cash and cash equivalents |
4,314,396 |
346,711 |
|
Unrealised gain in open forward foreign currency contracts |
9,172 |
- |
|
Receivables |
1,663,321 |
824,796 |
|
Financial assets at fair value through profit or loss |
112,057,710 |
123,074,306 |
|
|
118,044,599 |
124,245,813 |
None of the Company's financial assets are secured by collateral or other credit enhancements.
Liquidity risk
Liquidity risk is the risk that the Company will encounter in realising assets or otherwise raising funds to meet financial commitments.
The Company's liquidity risk is managed by the Investment Manager who monitors the cash positions on a regular basis. The Company's overall liquidity risks are monitored on a regular basis by the board of directors.
As at 30 June 2008 and 2007, the Company has no significant financial liabilities other than short-term payables arising directly from investing activity.
21. Capital Risk Management
The fair value of the Company's financial assets and liabilities approximate to their carrying amounts at the date of the Balance Sheet. For the purposes of this disclosure only, Redeemable Participating Preference Shares are considered to be capital.
The Company's objectives when managing capital are to safeguard the Company's ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. There are no externally-imposed capital requirements on the Company.
The Company has the ability to borrow up to 30% of its Net Assets Value at any time for short-term or temporary purposes as is necessary for the settlement of transactions, to facilitate redemption (where applicable) or to meet ongoing expenses. The Directors have put in place a borrowing facility for this purpose.
Redemption Facility
The Company has a Redemption Facility (which takes the form of a tender offer to all holders of redeemable participating preference shares) which was made available after 8 July 2007. This facility may operate annually, in November each year, at the discretion of the Directors. Redemptions on any Redemption Date may be restricted to a maximum of 25%. in aggregate of the Shares then in issue, with any tender requests from shareholders in excess of this being scaled back pro rata.
In order to address any imbalance in the supply and demand for the shares and to assist in maintaining a narrow discount to the Net Asset Value per share at which the shares may be trading, the Company will at the sole discretion of the Directors:
(i) purchase shares when deemed appropriate; and
(ii) allow an annual redemption of up to 25% of the issued shares at the prevailing Net Asset Value per Share which
commenced in November 2007.
The redemption of 16,987,371 shares at the prevailing Net Asset Value per share of £1.2202 (16.01% of issued shares at that time) was made pursuant to (ii) above on 29 November 2007.
Purchase of Own Shares by the Company
A special resolution was granted on 8 November 2007 which authorised the Company in accordance with The Companies (Purchase of Own Shares) Ordinance, 1998 to make purchases of its own shares as defined in that Ordinance of its Participating Shares of 0.0lp each, provided that:
issued share capital:
value per share;
Independent Auditors' Report to the shareholders of Ruffer Investment Company Limited
We have audited the financial statements of Ruffer Investment Company Limited for the year ended 30 June 2008 which comprise the Balance Sheet, the Statement of Operations, the Statement of Changes in Equity, the Cash Flow Statement and the related notes. These financial statements have been prepared under the accounting policies set out therein.
This report is made solely to the company's members as a body, in accordance with Section 64 of The Companies (Guernsey) Law, 1994. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
The directors' responsibilities for preparing the financial statements in accordance with applicable law and International Financial Reporting Standards (International Generally Accepted Accounting Practice) are set out in the Report of the Directors.
Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International Standards on Auditing (UK and Ireland).
We report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared in accordance with The Companies (Guernsey) Law, 1994. We also report to you if, in our opinion, the information in the Report of the Directors is not consistent with the financial statements, if the company has not kept proper accounting records or if we have not received all the information and explanations we require for our audit.
We read the Chairman's Review, the Report of the Directors, the Investment Manager's Report, the Investment Policy, the Top Ten Holdings, the Responsibility Statement, the Portfolio Statement and the General Information and consider the implications for our report if we become aware of any apparent misstatements within them.
Basis of opinion
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit includes an examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgements made by the directors in the preparation of the financial statements, and of whether the accounting policies are appropriate to the company's circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.
Opinion
- have been properly prepared in accordance with The Companies (Guernsey) Law, 1994
MOORE STEPHENS
Chartered Accountants Town Mills South
La Rue Du Pre
St Peter Port
Guernsey GY1 3HZ
25 September 2008
Portfolio Statement as at 30 June 2008
|
|
|
Holding |
Market |
|
% |
|
|
|
at |
Value |
|
of Total |
|
|
Currency |
30.06.08 |
£ |
|
Net Assets* |
|
Fixed Interest 54.42% |
|
|
|
|
|
|
(30.06.07 - 55.79%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Government Bonds 51.88% |
|
|
|
|
|
|
(30.06.07 - 53.83%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
United Kingdom |
|
|
|
|
|
|
UK Treasury 4.25% 07/03/2011 |
GBP |
6,000,000 |
5,859,540 |
|
5.03 |
|
UK Treasury 5% 07/03/2012 |
GBP |
6,000,000 |
5,966,940 |
|
5.12 |
|
UK Index-Linked Gilt 1.25% 22/11/2017 |
GBP |
10,500,000 |
11,594,290 |
|
9.94 |
|
|
|
|
|
|
|
|
|
|
|
23,420,770 |
|
20.09 |
|
Switzerland |
|
|
|
|
|
|
Austria 3% 21/08/2009 |
CHF |
24,750,000 |
12,231,135 |
|
10.49 |
|
Switzerland 3.5% 08/04/2033 |
CHF |
3,500,000 |
1,729,138 |
|
1.48 |
|
Switzerland 4% 08/04/2028 |
CHF |
12,240,000 |
6,370,073 |
|
5.46 |
|
Switzerland 1.75% 05/11/2009 |
CHF |
13,100,000 |
6,454,467 |
|
5.53 |
|
Switzerland 2.5% 08/03/2036 |
CHF |
7,300,000 |
2,952,890 |
|
2.53 |
|
|
|
|
|
|
|
|
|
|
|
29,737,703 |
|
25.49 |
|
United States |
|
|
|
|
|
|
US Index-Linked Treasury Bond 2.375% 15/01/2025 |
USD |
12,250,000 |
7,349,500 |
|
6.30 |
|
|
|
|
|
|
|
|
|
|
|
7,349,500 |
|
6.30 |
|
|
|
|
|
|
|
|
Total Government Bonds |
|
|
60,507,973 |
|
51.88 |
|
|
|
|
|
|
|
|
Corporate Bonds 2.54% |
|
|
|
|
|
|
(30.06.07 - 1.96%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Switzerland |
|
|
|
|
|
|
KFW International Finance 3% 04/12/2009 |
CHF |
6,000,000 |
2,959,796 |
|
2.54 |
|
|
|
|
|
|
|
|
Total Corporate Bonds |
|
|
2,959,796 |
|
2.54 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Fixed Interest |
|
|
63,467,769 |
|
54.42 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold Bullion 3.89% |
|
|
|
|
|
|
(30.06.07 - 2.59%) |
|
|
|
|
|
|
Gold Bullion |
GBP |
100,000 |
4,536,844 |
|
3.89 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Gold Bullion |
|
|
4,536,844 |
|
3.89 |
|
|
|
|
|
|
|
|
Equities 36.97% |
|
|
|
|
|
|
(30.06.07 - 38.14%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe |
|
|
|
|
|
|
|
|
|
|
|
|
|
Finland |
|
|
|
|
|
|
Raisio Yhtyma Oyj |
EUR |
700,000 |
925,467 |
|
0.79 |
|
|
|
|
|
|
|
|
|
|
|
925,467 |
|
0.79 |
|
|
|
|
|
|
|
|
Switzerland |
|
|
|
|
|
|
Swisscom AG |
CHF |
24,050 |
4,042,607 |
|
3.47 |
|
|
|
|
|
|
|
|
|
|
|
4,042,607 |
|
3.47 |
|
|
|
|
|
|
|
|
Sweden |
|
|
|
|
|
|
Ericsson |
SEK |
186,000 |
975,722 |
|
0.83 |
|
|
|
|
|
|
|
|
|
|
|
975,722 |
|
0.83 |
|
|
|
|
|
|
|
|
United Kingdom |
|
|
|
|
|
|
Environ Recycling |
GBP |
500,000 |
10,000 |
|
0.01 |
|
Aurora Russia Ltd |
GBP |
125,000 |
102,500 |
|
0.09 |
|
Booker Group Plc |
GBP |
5,631,000 |
1,266,975 |
|
1.09 |
|
BP Plc |
GBP |
530,000 |
3,089,900 |
|
2.65 |
|
BT Group Plc |
GBP |
1,000,000 |
1,986,873 |
|
1.70 |
|
Charles Taylor Consulting |
GBP |
65,000 |
157,300 |
|
0.13 |
|
Electrocomponents Plc |
GBP |
610,000 |
896,700 |
|
0.77 |
|
Glaxosmithkline Plc |
GBP |
135,000 |
1,501,875 |
|
1.29 |
|
Premier Foods Plc |
GBP |
500,000 |
476,250 |
|
0.41 |
|
Prodesse Investment Limited |
GBP |
528,000 |
2,006,400 |
|
1.72 |
|
Qinetiq Group Plc |
GBP |
300,000 |
618,000 |
|
0.53 |
|
Ramco Energy Plc |
GBP |
350,000 |
253,750 |
|
0.22 |
|
Renew Holdings Plc |
GBP |
131,850 |
129,213 |
|
0.11 |
|
Sterling Energy Plc |
GBP |
1,000,000 |
109,999 |
|
0.09 |
|
|
|
|
|
|
|
|
|
|
|
12,605,735 |
|
10.81 |
|
|
|
|
|
|
|
|
Total European Equities |
|
|
18,549,531 |
|
15.90 |
|
|
|
|
|
|
|
|
Australia |
|
|
|
|
|
|
Lihir Gold Ltd |
AUD |
800,000 |
1,265,292 |
|
1.09 |
|
|
|
|
|
|
|
|
Total Australian Equities |
|
|
1,265,292 |
|
1.09 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canada |
|
|
|
|
|
|
Barrick Gold Corp |
USD |
50,000 |
1,143,130 |
|
0.98 |
|
|
|
|
|
|
|
|
Total Canadian Equities |
|
|
1,143,130 |
|
0.98 |
|
|
|
|
|
|
|
|
United States |
|
|
|
|
|
|
Clean Diesel Technologies |
USD |
201,221 |
1,167,803 |
|
1.00 |
|
Coeur D'Alene Mines Corp |
USD |
150,000 |
218,577 |
|
0.19 |
|
Kraft Foods Inc |
USD |
100,000 |
1,429,541 |
|
1.23 |
|
Newmont Mining Corp |
USD |
107,000 |
2,801,683 |
|
2.40 |
|
|
|
|
|
|
|
|
Total United States Equities |
|
|
5,617,604 |
|
4.82 |
|
|
|
|
|
|
|
|
Asia |
|
|
|
|
|
|
|
|
|
|
|
|
|
Japan |
|
|
|
|
|
|
Bank of Yokohama Ltd |
JPY |
420,000 |
1,457,298 |
|
1.25 |
|
Central Japan Railway Co |
JPY |
480 |
2,639,290 |
|
2.26 |
|
Japan Residential Investment |
JPY |
2,000,000 |
1,400,000 |
|
1.20 |
|
Kao Corp |
JPY |
175,000 |
2,297,765 |
|
1.97 |
|
Nippon Telegraph & Telephone |
JPY |
1,300 |
3,179,662 |
|
2.73 |
|
Seven Eleven Japan Co Ltd |
JPY |
132,000 |
1,889,595 |
|
1.62 |
|
T&D Holdings Inc |
JPY |
43,900 |
1,350,508 |
|
1.16 |
|
Tohoku Electric Power |
JPY |
30,000 |
327,777 |
|
0.28 |
|
|
|
|
|
|
|
|
|
|
|
14,541,895 |
|
12.47 |
|
Thailand |
|
|
|
|
|
|
Thai Beverage |
SGD |
14,240,000 |
1,263,944 |
|
1.08 |
|
|
|
|
|
|
|
|
|
|
|
1,263,944 |
|
1.08 |
|
|
|
|
|
|
|
|
Total Asian Equities |
|
|
15,805,839 |
|
13.55 |
|
|
|
|
|
|
|
|
Africa |
|
|
|
|
|
|
|
|
|
|
|
|
|
South Africa |
|
|
|
|
|
|
Gold Fields Ltd |
ZAR |
82,600 |
527,544 |
|
0.46 |
|
Gold Fields ADR Rep |
USD |
32,000 |
203,080 |
|
0.17 |
|
|
|
|
|
|
|
|
Total African Equities |
|
|
730,624 |
|
0.63 |
|
|
|
|
|
|
|
|
Total Equities |
|
|
43,112,020 |
|
36.97 |
|
|
|
|
|
|
|
|
Investment Funds 0.81% |
|
|
|
|
|
|
(30.06.07 - 1.73%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
United Kingdom |
|
|
|
|
|
|
Herald Worldwide Fund |
GBP |
84,175 |
941,077 |
|
0.81 |
|
|
|
|
|
|
|
|
|
|
|
941,077 |
|
0.81 |
|
|
|
|
|
|
|
|
Total Investment Funds |
|
|
941,077 |
|
0.81 |
|
|
|
|
|
|
|
|
Total financial assets at fair value through profit or loss |
112,057,710 |
|
96.09 |
||
|
|
|
|
|
|
|
|
Other net current assets |
|
|
4,559,643 |
|
3.91 |
|
|
|
|
|
|
|
|
Management share capital |
|
|
(2) |
|
0.00 |
|
|
|
|
|
|
|
|
Total Value of Fund |
|
|
|
|
|
|
(attributable to redeemable participating preference shares) |
116,617,351 |
|
100.00 |
||
|
|
|
|
|
|
|
|
* All percentages relate to net assets attributable to holders of redeemable participating preference shares |
|||||
This information is provided by RNS
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