Interim Management Statement

RNS Number : 6104W

British Assets Trust PLC

29 January 2013

 



British Assets Trust plc

Interim Management Statement

For the Period from 1 October 2012 to 31 December 2012

Investment Objective

British Assets Trust plc aims to achieve a total return in excess of a composite index, weighted as to 80 per cent FTSE All-Share Index and 20 per cent FTSE World (ex UK) Index, by investing principally in a diversified international portfolio of equities and equity-related securities.  Within this overall objective, the Company aims to maintain a progressive dividend policy which will be dependent upon, inter alia, the rate of revenue growth within the investment portfolio, and the level of dividend cover.

Performance Summary

Total Return1		Three months to 31/12/12
Net asset value2		+3.8%
Composite index3		+3.5%
Capital Values	As at  31/12/12	As at  30/09/12
Net asset value per share	134.8p	131.4p
Share price (mid market)	121.5p	119.8p
(Discount)/Premium  - Basic4  - Debt adjusted5  - Debt adjusted6	(9.9)% (6.0)% (3.6)%	(8.8)% (5.3)% (2.8)%
Gearing  - Net of cash7  - Equity gearing8	18.1% 4.1%	16.4% 2.9%

Sources: F&C Investment Business Limited, Datastream.

1          All total return calculations are based on dividends re-invested

2          Net asset value total return is calculated as the total return attributable to an Ordinary Share

3          Composite index of 80 per cent FTSE All-Share Index and 20 per cent FTSE World (ex UK) Index

4          Net asset value (UK GAAP) with debt at par

5          Net asset value (UK GAAP) adjusted to reflect market value of debt

6          Net asset value (non-UK GAAP, ex-income NAV) adjusted to reflect market value of debt

7          Gearing net of cash: (investments-shareholders' funds)/shareholders' funds

8          Equity gearing: (equity investments-shareholders' funds)/shareholders' funds

Review for the Period

The Company's net asset value total return for the three months ended 31 December 2012 was 3.8%. This compares with a total return of 3.5% from the composite benchmark index of 80% FTSE All-Share Index and 20% FTSE World (ex UK) Index.

Global markets generated a further quarter of positive returns as they climbed the "walls of worry" surrounding the US elections, Chinese leadership handover and, at the very last minute, an initial deal on sustaining an element of the US tax cuts.

In China, the hoped for stabilisation in growth appears to have been delivered, with GDP growth of around 8% in 2012. This is important as it reduces the immediate pressure on the new leadership and allows them time to focus on their strategic policies including rebalancing towards enhanced consumption as a source of economic growth, reducing corruption and, perhaps more aspirationally than realistically, redistributing wealth from the rich to the poor.

The UK economy continued to gyrate between positive and negative growth in the face of both cyclical and structural headwinds. This is well illustrated in the retail sector where yet more famous names have gone into administration, including Jessops, Comet, Blockbuster and HMV. All were national chains, principally in high streets (rather than out of town) and each was eventually overcome by the change in consumer behaviour to buying online.

Top Ten Holdings as at 31/12/12

Company	Country	% of total assets
Royal Dutch Shell	UK		3.9
BP	UK		2.9
BHP Billiton	UK		2.7
GlaxoSmithKline	UK		2.7
HSBC	UK		2.5
Standard Chartered	UK		2.2
British American Tobacco	UK		2.1
Vodafone	UK		2.0
Imperial Tobacco Group	UK		1.8
BAE Systems	UK		1.8
Total			24.6

Geographical Analysis as at 31/12/12

			%of total assets
UK				63.5
Global High Yield				14.2
Emerging Markets				7.5
Corporate Bonds				11.4
Net Current Assets				3.4
Total				100.0

Dividends

A third interim dividend in respect of the year ended 30 September 2012, of 1.442p per share, was paid on 5 October 2012 and a final dividend of 1.786p per share will be paid on 31 January 2013.

Subsequent Events

The Board is not aware of any significant events or transactions which have occurred since 31 December 2012 and the date of publication of this statement which would have a material impact on the financial position of the Company.

Daily and Key Information

This statement and further information regarding the Company, including daily net asset values published since the end of the period and monthly factsheets, can be found at the Company's website www.british-assets.co.uk, or at www.fandc.com.

For further information please contact:

Phil Doel/Gordon Hay Smith

F&C Investment Business Limited

Tel: [phone]

 

END

 

 

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