Interim Management Statement

RNS Number : 6127K

British Assets Trust PLC

31 July 2013

 



British Assets Trust plc

Interim Management Statement

For the Period from 1 April 2013 to 31July 2013  

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 Return		Three months to 30/06/13
Net asset value1		(3.6)%
Composite index2		(1.2)%
Capital Values	As at  30/06/13	As at  31/03/13
Net asset value3	141.2p	147.8p
Share price (mid market)	127.5p	133.0p
Discount  - Basic4  - Debt adjusted5  - Debt adjusted6	9.7% 7.2% 4.7%	10.0% 6.7% 4.7%
Gearing  - Net of cash7  - Equity gearing8	17.5% 3.8%	16.6% 3.3%

Sources: F&C Investment Business Limited, Datastream.

1          Net asset value total return is calculated as the total return attributable to an Ordinary Share. It assumes that dividends paid to shareholders are re-invested in the net asset value.

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

3          Prepared in accordance with UK GAAP

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 30 June 2013 was -3.6%. This compares with a return of -1.2% from the composite benchmark index of 80% FTSE All-Share Index and 20% FTSE World (ex UK) Index.

The Managers had expected markets to pause for breath after the extended period of performance since June 2012 and the uncertainty that was instigated through Fed Chairman Bernanke's comments in May around the unwinding of the quantitative easing program certainly delivered that outcome.

These uncertainties were compounded by a mid-year softening of economic data in the US and the rapid slowdown in growth rates in China, as efforts to force rebalancing in the economy intensified and the central bank temporarily withdrew overnight liquidity to emphasise its message of intent.

There seems little danger of interest rate rises in the UK or Europe in the medium term, despite there finally being some signs of life in the UK economy, with core inflation fairly subdued and unemployment in Europe very soft. The US economy continues its recovery, with reasonable employment numbers further boosting the changes of a Fed withdrawal of quantitative easing this year, albeit underlying interest rates are unlikely to increase until late in 2014 at the earliest. This backdrop remains supportive for equities if the global economy regains its momentum into the second half, as forecast by many economists.

Top Ten Holdings as at 30/06/13

Company	Country	% of total assets
Royal Dutch Shell	UK		3.8
HSBC Holdings	UK		3.8
GlaxoSmithKline	UK		3.7
BP	UK		3.0
BAE Systems	UK		2.5
AstraZeneca	UK		2.4
BHP Billiton	UK		2.1
Centrica	UK		1.9
Prudential	UK		1.8
Standard Chartered	UK		1.8
Total			26.8

Geographical Analysis as at 30/06/13

			%of total assets
UK				64.0
Global High Yield Equities (ex UK)				15.5
Emerging Markets				7.4
Corporate Bonds				11.4
Net Current Assets				1.7
Total				100.0

Dividends

A first quarterly interim dividend of 1.442p per share and a second quarterly interim dividend of 1.4853p per share in respect of the year ended 30 September 2013 were paid on 12 April and 12 July 2013 respectively.

Subsequent Events

The Board is not aware of any significant events or transactions which have occurred since 30 June 2013 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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