Source - RNS
RNS Number : 3360J
Martin Currie Global Portfolio Tst
08 September 2016
 

Martin Currie Global Portfolio Trust plc

 

Half-yearly financial report

Six months to 31 July 2016

 

A copy of the Half Year report for the six months ended 31 July 2016 has been submitted to the National Storage Mechanism.  This will be available for viewing at http://www.hemscott.com/nsm.do.

 

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

 

Financial Highlights

 

Total returns*

 


Six months ended 31 July 2016

%

Six months ended 31 July 2015

%

Net asset value per share**

17.6

2.2

Benchmark

20.3

1.9

Share price

 

Income

 


Six months ended

31 July 2016

Six months ended

31 July 2015

Revenue per share***

2.56p

2.56p

Dividend per share

1.80p

1.80p

 

Ongoing Charges**** (as a percentage of shareholders' funds)

 


Six months ended

31 July 2016

%

Six months ended

31 July 2015

%

Ongoing charges

0.75

0.71

Performance fee

-

-

Ongoing charges plus performance fee

0.75

0.71

 

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

**       The net asset value is exclusive of income with dividends reinvested. 

***      For details of calculation, refer to note 2 below.

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

 

 

Chairman's Statement

 

Welcome to the half-yearly report covering the six months to 31 July 2016.

 

During the period, global long term interest rates continued to fall with US Treasuries reaching a record low yield of 1.36% in June. This reflects the current relatively slow global growth and continuing international uncertainty, not least, the implications for both the UK and Europe of 'Brexit'.

 

Your Company has performed well against this challenging economic backdrop. The net asset value ('NAV')

per share increased by 17.6% on a total return basis, lifting the Company's NAV to above £200m. The share price total return was 19.8%, compared to the benchmark return of 20.3%, over the period.

 

This strong return was partly due to the correction of the discount at the start of the year, but largely to the beneficial effect of the fall in sterling following the 'Brexit' referendum. This illustrates well the advantage of diversification provided by our global equity portfolio which is positioned to withstand regional economic shocks and major currency fluctuations. Tom Walker gives his views of the market and a more detailed explanation of the portfolio performance in his report below.

 

It is now just over five years since the Company widened its investment mandate from a single country UK-focused benchmark to become a global equity portfolio. I am pleased to report that this decision has been a success; as at 31 July 2016, the FTSE World index has outperformed the FTSE All-Share index by over 30% over five years and your Company has outperformed the FTSE World index - returning the equivalent of over 13.1% per year to shareholders. This performance puts it in the top quartile of the peer group used by your Board to monitor competitive performance.

 

Income and dividends

 

The Company's earnings have been maintained in the period and the next quarterly dividend will be 0.9p paid on 14 October 2016 to shareholders on the register at 23 September 2016. This follows the first interim payment of 0.9p paid on 22 July 2016 and brings the total dividend for the period to 1.80p, the same as last year.

 

Your Company has successfully operated a progressive dividend policy since launch and, even through some of the most difficult equity market conditions, the total annual dividend has never been cut. With interest rates recently falling to new lows, the Company's dividend provides an attractive level of income for shareholders.

 

Outlook

 

The consensus outlook for the global economy is for ongoing low growth, a gradual rise in inflation and persistently low interest rates. However, there is considerable uncertainty about the timing, strength and geographic distribution of growth. At a company level there will be winners and losers and I believe that, against this background, our global investment portfolio offers access to the best opportunities as they arise. Our manager's focus on fundamentals will help to identify the best growth opportunities and the most resilient stocks globally and this will be the key to the Company's continued successful long-term investment performance.

 

Keeping in touch

 

Over the period, your Company has been reviewed by several investment specialists and brokers and many of the reports and articles are hosted on the Company's new website at www.martincurrieglobal.com.

 

I encourage you to visit and register for email updates that will keep you abreast of information relating to your Company.

 

I thank you for your continued support. Please contact me if you have any questions at [email protected].

 

Neil Gaskell

Chairman, Martin Currie Global Portfolio Trust plc

8 September 2016

 

 

Manager's Review

 

The Company's NAV returned 17.6% and the share price 19.8% in the first half of the current fiscal year, considerably in excess of most expectations as the year dawned. The lion's share of that return has been delivered as a result of sterling's weakness against overseas currencies as the bulk of the Company's exposure is outside of the UK. The rest of the return comes from rising share prices, partially driven by underlying earnings growth but also benefiting from lower interest rates which have encouraged money to flow out of cash and into other assets where returns are more rewarding. At the start of the period, the 10-year treasury rate, a useful benchmark of long-term interest rates, yielded 1.92%. That yield fell as low as 1.36%, and stood at 1.45% at the end of July.

 

The Company's NAV per share total return of 17.6% was below the FTSE World index, which returned 20.3%. It has been a very volatile period for markets with mixed economic news and greater political uncertainty. Despite this, over the six months, it was the more cyclical sectors, notably basic materials, oil and gas and industrials that led the market. There was also a strong bounce in emerging markets. At the stock level, our top contributor to performance was Arm Holdings, the UK technology company which became the subject of a takeover bid from Softbank in July. Its appeal to a foreign buyer was enhanced by the collapse in sterling and it remains to be seen if other such takeovers may occur. Our largest active position in the portfolio, Lockheed Martin, continued to perform well. As a defence contractor with long-term contracts, it has been shielded from the volatility in economic expectations and resultant share price fluctuations.

 

On the other side, two of our largest holdings performed poorly in this period. L Brands (better known by its main retail brand, Victoria's Secret) had enjoyed strong share price performance for a number of years. Indeed, its valuation was looking a little stretched and we had been reducing our position in this long-held stock. So when it reported a couple of months' weaker sales numbers, the share price declined quite dramatically - an overreaction in our view. Meanwhile, the UK-based insurance company Prudential continues to operate well and grow, especially in Asia. However, its share price has fallen along with the insurance sector as interest rates have declined. Prudential is now valued extremely cheaply compared with its history. We continue to hold both these companies in the portfolio.

 

During the period, long-term interest rates fell much more than we expected and it is increasingly looking as though they will remain lower for longer. The operating environment for banks is even tougher as a result - curbing their ability to grow loan books and also reducing existing lending margins further - so we have reduced exposure to these in the portfolio. We have also taken advantage of the bounce in the oil price to reduce exposure to that sector. Sales of Orix, HSBC, DNB, and Chevron were at least partially prompted by these sector views and leave us underweight the oil & gas sector and neutral to the financial sector at the end of July.

 

We added four new positions during the period: Alibaba, the Chinese online retailer; Shire, the global pharmaceutical company focusing on rare diseases and haemophilia; Delphi Automotive, the auto components manufacturer which is driving sales growth through its focus on safety; and Visa, the global payments processor.

 

Outlook

 

For several years we seem to have been living in 'interesting times' in terms of the heightened geopolitical and economic volatility. Despite this, returns for global equity investors have been strong. While it seems alarming that asset prices can outperform economies and investor sentiment to such a degree, it is hard to sit on cash when it earns no return.

 

We cannot forecast with complete certainty whether the environment is going to remain the same (low interest rates and low growth) or whether growth, inflation and higher interest rates are just around the corner. We favour the former scenario and are positioned accordingly. However, either way, we believe that equities should do better than other assets, particularly bonds. As such, we continue to endeavour to discover the best opportunities within the global equity universe.

 

Tom Walker

8 September 2016

 

 

Risk and mitigation

 

The Company's business model is longstanding and resilient to most of the short term operational uncertainties that it faces, which the Board believes are effectively mitigated by its internal controls and its oversight of the investment manager, as described in the latest annual report.

 

Its principal risks and uncertainties are therefore largely longer term and driven by the inherent uncertainties of investing in global equity markets. The Board believes that it is able to respond to these longer term risks and uncertainties with effective mitigation so that both the potential impact and the likelihood of these seriously affecting shareholders' interests are materially reduced.

 

Risks are regularly monitored at Board meetings and the Board's planned mitigation measures are described in the latest annual report. As part of its annual strategy meeting, the Board carried out a robust assessment of the principal risks facing the Company. The Board has identified the following principal risks to the Company:

 

·      Loss of s1158-9 status

·      Long-term investment underperformance

·      Decline in overall size of the Company

·      Shareholder relations

 

Further details of these risks and how the Board manages them can be found in the latest annual report and on the Company's website www.martincurrieglobal.com.

 

Directors' Responsibility

 

In accordance with Chapter 4 of the Disclosure and Transparency Rules and to the best of their knowledge, each director of the Company confirms that the financial statements have been prepared in accordance with the United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law) and with the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies and Venture Capital Trusts' issued in November 2014. The directors are satisfied that the financial statements give a true and fair view of the assets, liabilities, financial position and profit of the Company. Furthermore, each director certifies that the interim management report includes an indication of important events that have occurred during the first six months of the financial year and their impact on the financial statements together with a description of the principal risks and uncertainties that the Company faces. In addition, each director of the Company confirms that, with the exception of management and secretarial fees, directors' fees and directors' shareholdings, there have been no related party transactions during the first six months of the financial year. 

 

Going concern status

 

The Company's business activities, together with the factors likely to affect its future development, performance and position, are set out in the chairman's statement and manager's review. The financial position of the Company as at 31 July 2016 is shown on the unaudited condensed statement of financial position. The cash flows of the Company are set out on below.

 

In accordance with the Financial Reporting Council's guidance on going concern and liquidity risk issued in October 2009, the directors have undertaken a rigorous review of the Company's ability to continue as a going concern. The Company's assets consist of a diverse portfolio of listed equity shares which, in most circumstances, are realisable within a very short timescale. The directors are mindful of the principal risks disclosed above. They have reviewed revenue forecasts and believe that the Company has adequate financial resources to continue its operational existence for the foreseeable future and for at least one year from the date of signing of these financial statements. Accordingly, the directors continue to adopt the going concern basis in preparing these financial statements.

 

By order of the board

 

Neil Gaskell

Chairman

8 September 2016

 

 

Portfolio Summary

 

Portfolio distribution by region

 

 

31 July 2016

Company %

31 July 2016 FTSE World index %

 

31 January 2016

Company %

31 January 2016 FTSE World index %

North America

58.1

58.1

54.1

57.7

United Kingdom

12.8

6.9

11.9

7.2

Developed Asia Pacific ex Japan

8.6

6.2

9.5

5.8

Developed Europe ex UK

7.7

15.1

11.0

16.0

Japan

7.5

8.9

8.6

9.0

Global Emerging Markets

3.7

4.5

3.1

4.0

Middle East

1.6

0.3

1.8

0.3


100.0

100.0

100.0

100.0

 

By sector

 

31 July 2016

Company %

31 July 2016 FTSE World index %

 

31 January 2016

Company %

31 January 2016 FTSE World index %

Financials

20.4

20.2

22.7

20.9

Consumer services

15.5

11.4

14.5

11.8

Technology

14.6

11.7

12.8

11.5

Healthcare

12.9

12.0

11.4

11.9

Industrials

11.0

12.4

13.7

12.1

Consumer goods

7.8

14.3

5.3

14.6

Telecommunications

6.8

3.6

7.2

3.6

Oil and gas

5.0

6.3

6.7

6.1

Basic materials

4.1

4.6

4.0

4.1

Utilities

1.9

3.5

1.7

3.4


100.0

100.0

100.0

100.0

 

By asset class

31 July 2016 %

31 January 2016 %

Equities

99.3

98.1

Cash

0.7

1.9


100.0

100.0

 

Largest 10 holdings

31 July 2016

Market value

£000

31 July 2016

% of total

portfolio

31 January 2016

Market value

£000

31 January 2016

% of total

portfolio

JP Morgan Chase

7,895

4.0

6,853

3.9

Lockheed Martin

7,519

3.8

5,873

3.4

Facebook

6,992

3.5

5,921

3.4

Visa

6,631

3.4

-

-

Verizon Communications

6,617

3.3

5,586

3.2

Prudential

6,366

3.2

5,513

3.2

KDDI

6,189

3.1

4,694

2.7

Apple

5,999

3.0

5,234

3.0

L Brands

5,075

2.6

6,181

3.5

CVS Health

4,853

2.5

3,810

2.2

 

 

Unaudited Condensed Statement of Comprehensive Income

 



(Unaudited)

Six months to 31 July 2016

(Unaudited)

Six months to 31 July 2015


 

Note

Revenue £000

Capital £000

Total

£000

Revenue

£000

Capital

£000

Total

£000

Net gains on investments

5

-

 

28,181

28,181

-

 

2,456

2,456

Net currency losses


-

 

(110)

(110)

-

(24)

(24)

Revenue

3

3,273

-

 

3,273

3,318

-

3,318

Investment management fee


(157)

(314)

(471)

(155)

(311)

(466)

Other expenses


(213)

 

-

 

(213)

(203)

-

(203)

Net return on ordinary activities before taxation


2,903

27,757

30,660

2,960

 

2,121

5,081

Taxation on ordinary activities

4

(359)

-

 

(359)

(347)

-

(347)

Net return attributable to shareholders


2,544

27,757

30,301

2,613

2,121

4,734

Net returns per ordinary share

2

2.56p

27.93p

30.49p

2.56p

2.08p

4.64p

 

 

The total columns of this statement are the profit and loss accounts of the Company.

The revenue and capital items are presented in accordance with the Association of Investment Companies ('AIC') Statement of Recommended Practice.

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

No operations were acquired or discontinued in the six months.

The notes below form part of these financial statements. 

 

 

Unaudited Condensed Statement of Financial Position

 



(Unaudited)

As at 31 July 2016

(Unaudited)

As at 31 July 2015

(Audited)

As at 31 January 2016


Note

£000

£000

£000

£000

£000

£000

Fixed assets








Investments at fair value through profit or loss








Listed on the London Stock Exchange



30,097


21,196


20,883

Listed on exchanges abroad



167,826


159,534


154,093


5


197,923


180,730


174,976

Current assets








Trade receivables

6

1,082


296


320


Cash and cash equivalents


1,319


2,758


3,403




2,401


3,054


3,723


Current liabilities








Trade payables

7

(310)


(371)


(592)





2,091


2,683


(592)

Total assets less current liabilities



200,014


183,413


178,107

Equity








Called-up share capital


5,179


5,224


5,179


Capital redemption reserve


10,838


10,793


10,838


Special distributable reserve*


104,517


111,456


110,581


Capital reserve


73,590


50,053


45,833


Revenue reserve*

 


5,890


5,887


5,676


Total shareholders' funds



200,014


183,413


178,107

Net asset value per ordinary share

2


204.7p


180.7p


176.3p

 

* These reserves are distributable.

The notes below form part of these financial statements. 

Martin Currie Global Portfolio Trust plc is registered in Scotland, company number SCO192761.

The financial statements were approved by the Board of directors on 8 September 2016 and signed on its behalf by Neil Gaskell, Chairman

 

 

Unaudited Statement of Changes in Equity

 

 

Statement of changes in equity for the period to 31 July 2016

Called up ordinary share capital

£000

Capital redemption reserve

£000

Special distributable reserve*

£000

 

Capital reserve

£000

 

Revenue reserve*

£000

 

 

Total

£000

At 31 January 2016

 

5,179

10,838

110,581

45,833

5,676

178,107

Ordinary shares bought back during the period

-

 

-

 

(6,064)

-

 

-

 

(6,064)

Losses on realisation of investments at fair value

-

 

-

 

-

 

(456)

-

 

(456)

Movement in currency gains/(losses)

-

 

-

 

-

 

(110)

-

 

(110)

Movement in fair value gains/(losses)

-

 

-

 

-

 

27,068

-

 

27,068

Expenses allocated to capital

-

 

-

 

-

 

(314)

-

 

(314)

Capital dividends received

-

 

-

 

-

 

1,569

-

 

1,569

Net revenue

 

-

 

-

 

-

 

-

 

2,544

2,544

Dividends paid

 

-

 

-

 

-

 

-

 

(2,330)

(2,330)

At 31 July 2016

5,179

10,838

104,517

73,590

5,890

200,014

 

 

 

Statement of changes in equity to 31 July 2015

Called up ordinary share capital

£000

Capital redemption reserve

£000

Special distributable reserve*

£000

 

Capital reserve

£000

 

Revenue reserve*

£000

 

 

Total

£000

At 31 January 2015

 

5,224

10,793

114,383

47,932

5,619

183,951

Ordinary shares bought back during the period

-

-

(3,340)

-

-

(3,340)

Ordinary shares issued during the period

-

-

413

-

-

413

Gains on realisation of investments at fair value

-

-

-

2,454

-

2,454

Movement in currency gains/(losses)

-

-

-

(24)

-

(24)

Movement in fair value gains/(losses)

-

-

-

2

-

2

Expenses allocated to capital

-

-

-

(311)

-

(311)

Net revenue

 

-

-

-

-

2,613

2,613

Dividends paid

 

-

-

-

-

(2,345)

(2,345)

At 31 July 2015

5,224

10,793

111,456

50,053

5,887

183,413

 

 

Statement of changes in equity for the year to 31 January 2016

Called up ordinary share capital

£000

Capital redemption reserve

£000

Special distributable reserve*

£000

 

Capital reserve

£000

 

Revenue reserve*

£000

 

 

Total

£000

At 31 January 2015

 

5,224

10,793

114,383

47,932

5,619

183,951

Ordinary shares bought back during the year

-

-

(8,669)

-

-

(8,669)

Ordinary shares issued during the year

-

-

4,867

-

-

4,867

Ordinary shares cancelled during the year

(45)

45

-

-

-

-

Gains on realisation of investments at fair value

-

-

-

10,321

-

10,321

Movement in currency gains/(losses)

-

-

-

111

-

111

Movement in fair value gains/(losses)

-

-

-

(11,927)

-

(11,927)

Expenses allocated to capital

 

-

-

-

(604)

-

(604)

Net revenue

 

-

-

-

-

4,211

4,211

Dividends paid

 

-

-

-

-

(4,154)

(4,154)

At 31 January 2016

5,179

10,838

110,581

45,833

5,676

178,107

 

* These reserves are distributable.

The notes below form part of these financial statements. 

 

 

Unaudited Statement of Cash Flow

 


 

 

 

(Unaudited)

Six months to

31 July 2016

(Unaudited)

Six months to

31 July 2015

(Audited)

Year to

31 January 2016


Note

£000

£000

£000

£000

£000

£000

Cash flows from operating activities








Profit before tax

 



30,660


5,081


2,621

Adjustments for:








(Gains)/loss on investments

7

(28,612)


(2,456)


1,606


Purchases of investments*


(28,598)


(16,937)


(35,167)


Sales of investments*


31,456


19,906


39,735


Dividend income


(3,233)


(3,314)


(5,378)


Interest income


-


(4)


(5)


Stock lending income


(40)


-


(40)


Dividend income received


3,268


3,294


5,352


Interest income received


-


4


5


Stock lending income received


43


-


34


(Increase)/decrease in receivables


(1)


1


1


Decrease in payables


(282)


(23)


291


Overseas withholding tax suffered


(351)


(335)


(509)





(24,350)


136


5,925

Net cash flows from operating activities



6,310


5,217


8,546

Cash flows from financing activities








Repurchase of ordinary share capital


(6,064)


(3,340)


(8,669)


Shares issued for cash


-


413


4,867


Equity dividends paid

4

(2,330)


(2,345)


(4,154)


Net cash flows from financing activities



(8,394)


(5,272)


(7,956)

Net (decrease)/increase in cash and cash equivalents



(2,084)


(55)


590

Cash and cash equivalents at the start of the year



3,403


2,813


2,813




1,319


2,758


3,403

 

* Receipts from the sale of, and payments to acquire, investment securities have been classified as components of cash flows from operating activities because they form part of the Company's dealing operations.

The notes below form part of these financial statements. 

 

 

Notes to the Condensed Financial Statements

 

Note 1: Accounting policies

 

For the period ended 31 July 2016 (and the year ending 31 January 2016), the Company is applying FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland ('FRS 102'), which forms part of the revised Generally Accepted Accounting Practice (New UK GAAP) issued by the Financial Reporting Council ('FRC') in 2012 and 2013.

 

These condensed financial statements have been prepared on a going concern basis in accordance with the Disclosure and Transparency Rules of the Financial Conduct Authority, FRS 102, FRS 104 Interim Financial Reporting issued by the FRC in March 2015 and the revised Statement of Recommended Practice "Financial Statements of Investment Trust Companies and Venture Capital Trusts" ('SORP') issued by the AIC in November 2014.

 

As a result of the adoption of New UK GAAP and the revised SORP, comparative amounts and presentation formats have been amended where required. The net return attributable to ordinary shareholders and total shareholders' funds remain unchanged from under old UK GAAP basis, as reported in the preceding annual and interim reports. The Statement of Cash Flows has been restated to reflect presentational changes required under FRS 102 and does not include any other material changes. 

 

The accounting policies applied for the condensed set of financial statements are set out in the Company's annual report for the year ended 31 January 2016. However, the references to prior individual FRSs should now be taken to reference FRS 102.

 

 

Note 2: Returns and net asset value

 


(Unaudited)

Six months to 31 July 2016

(Unaudited)

Six months to 31 July 2015

(Audited)

Year to 31 January 2016

The return and net asset value per ordinary shares are calculated with reference to the following figures:




Revenue return (£000)

2,544

2,613

4,211

Capital return (£000)

27,757

2,121

(2,099)

Total return (£000)

30,301

4,734

2,112





Weighted average number of shares in issue during period *

99,379,371

102,052,532

101,410,238

Revenue return per share

2.56p

2.56p

4.15p

Capital return per share

27.93p

2.08p

(2.07p)

Total return per share

30.49p

4.64p

2.08p

 

There are no dilutive or potentially dilutive shares in issue.

 

Net asset value per share




Net assets attributable to shareholders

£200,014,000

£183,413,000

£178,107,000

Number of shares in issue at the period end*

97,733,894

101,486,930

101,044,956

Net asset value per share

204.7p

180.7p

176.3p

 

During the six months to 31 July 2016 there were 3,311,062 shares bought back into treasury at a cost of £6,064,000. (Six months to 31 July 2015 1,795,029 shares brought back into treasury at a cost of £3,340,000, twelve months to 31 January 2016 4,863,436 shares brought back into treasury at a cost of £8,668,772). Between 1 August and 6 September 2016, 316,333 ordinary shares of 5p each were bought back into treasury at a cost of £657,000. There have been no shares issued from treasury during the six months to 31 July 2016. (Six months to 31 July 2015 218,584 shares issued from treasury, twelve months to 31 January 2016 2,845,017 shares issued from treasury.) There have been no shares cancelled from treasury during the six months to 31 July 2016. (Six months to 31 July 2015 no shares were cancelled from treasury, twelve months to 31 January 2016 909,969 shares were cancelled from treasury.)

 

* Calculated excluding shares held in treasury.

 

 

Note 3: Revenue from investments

 


(Unaudited)

Six months to

31 July 2016

£000

(Unaudited)

Six months to

31 July 2015

£000

(Audited)

Year to

31 January 2016

£000

From listed investments




UK equities

449

408

888

International equities

2,784

2,906

4,490





Other revenue




Interest on deposits

-

4

5

Stock lending

40

-

40


3,273

3,318

5,423

 

During the six months to 31 July 2016, the Company received one capital dividend of £1,568,575. (Six months to 31 July 2015 no capital dividends). There were no capital dividends received during the year ended 31 January 2016.

 

 

Note 4: Taxation on ordinary activities

 


(Unaudited)

Six months to 31 July 2016

(Unaudited)

Six months to 31 July 2015

(Audited)

    Year to  31 January 2016


Revenue

£000

Capital

£000

Total

£000

Revenue

£000

Capital

£000

Total

£000

Revenue

£000

Capital

£000

Total

£000

Foreign tax

359

-

359

347

-

347

       509

-

509

 

 

Note 5: Investments at fair value through profit or loss

 


(Unaudited)

As at

31 July 2016

£000

(Unaudited)

As at

31 July 2015

£000

(Audited)

As at

31 January 2016

£000

Opening valuation

174,976

181,798

181,798

Opening unrealised investment holding gains

(27,657)

(39,584)

(39,584)

Opening cost

147,319

142,214

142,214

 

Purchases at cost

 

28,598

 

16,382

 

34,519

Disposal proceeds

(32,263)

(19,906)

(39,735)

Net (loss)/profit on disposal of investments

(456)

2,454

10,321

Disposal at cost

(32,719)

(17,452)

(29,414)

 

Closing cost

 

143,198

 

141,144

 

147,319

Closing unrealised investment holding gains

54,725

39,586

27,657

Closing valuation

197,923

180,730

174,976






(Unaudited)

As at

31 July 2016

£000

(Unaudited)

As at

31 July 2015

£000

(Audited)

As at

31 January 2016

£000

Gain on investments




Net (loss)/profit on disposal of investments

(456)

2,454

10,321

Net gain/(loss) on revaluation of investments

27,068

2

(11,927)

Capital dividends

1,569

-

-


28,181

2,456

(1,606)

 

The transaction cost in acquiring investments for the six months to 31 July 2016 was £44,000 (six months to 31 July 2015: £24,000, twelve months to 31 January 2016: £65,000). For disposals, transaction costs were £41,000 for the six months to 31 July 2016 (six months to 31 July 2015: £26,000, twelve months to 31 January 2016: £54,000).

 

 

Note 6: Receivables: amounts falling due within one year

 


(Unaudited)

As at 31 July 2016

£000

(Unaudited)

As at 31 July 2015

£000

(Audited)

As at 31 January 2016

£000

Amount due from brokers

807

-

-

Dividends receivable

151

179

186

Taxation recoverable

115

112

123

Other debtors

6

5

5

Stock lending receivable

3

-

6


1,082

296

320

 

 

Note 7: Trade payables: amounts falling due within one year

 


(Unaudited)

As at 31 July 2015

£000

(Audited)

As at 31 January 2016

£000

Amount due to brokers

-

93

-

Due to Martin Currie

248

227

221

Other creditors

51

371


371

592

 

 

Note 8: Stock lending

 

The Company has a Securities Lending Authorisation Agreement with State Street Bank & Trust Company.

 

As at 31st July 2016 £19,459,000 of investments were subject to stock lending agreements and £20,910,000 was held in collateral. The collateral was held in the form of cash (in GBP, USD or EUR), government securities issued by any of the OECD countries or equity securities listed and/or traded on an exchange in the following countries: Australia, Canada, Hong Kong, Japan, New Zealand, Singapore, Switzerland and USA (2015: £Nil of investments subject to stock lending, £Nil held as collateral).

 

The gross earnings and the fees paid for the period are £53,000 (2015: £Nil) and £13,000 (2015: £Nil). 

 

 

Note 9: Interim report

 

The financial information contained in this half-yearly financial report does not constitute statutory accounts as defined in S434 - 6 of the Companies Act 2006. The financial information for the six months ended 31 July 2016 has not been audited or reviewed.

 

The information for the year ended 31 January 2016 has been extracted from the latest published audited financial statements which have been filed with the Registrar of Companies. The report of the auditors on those accounts contained no qualification or statement under s498 (2),(3) or (4) of the Companies Act 2006.

 

 

Note 10: Fair value hierarchy

 

The Company has early adopted the amendments to FRS 102, where an entity is required to classify fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy shall have the following levels:

 

-    Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;

-    Level 2: other significant observable inputs (including quoted prices for similar investments, interest rates, prepayments, credit risk, etc); or

-    Level 3: significant unobservable input (including the company's own assumptions in determining the fair value of investments).

 

The financial assets measured at fair value through profit and loss are grouped into the fair value hierarchy as follows:

 


As at 31 July 2016 (Unaudited)


Level 1

Level 2

Level 3

Total


£000

£000

£000

£000

Financial assets at fair value through profit or loss





Quoted equities

197,923

-

-

197,923

Net fair value

197,923

-

-

197,923


As at 31 July 2015 (Unaudited)


Level 1

Level 2

Level 3

Total


£000

£000

£000

£000

Financial assets at fair value through profit or loss





Quoted equities

180,730

-

-

180,730

Net fair value

180,730

-

-

180,730


As at 31 January 2016 (Audited)


Level 1

Level 2

Level 3

Total


£000

£000

£000

£000

Financial assets at fair value through profit or loss





Quoted equities

174,976

-

-

174,976

Net fair value

174,976

-

-

174,976

 

 

Note 11: Post balance sheet event

 

Since 1 August 2016, 3166,333 ordinary shares of 5p each have been bought back into treasury at a cost of £657,000.

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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