Annual Financial Report

RNS Number : 0515W

F&C Managed Portfolio Trust PLC

22 July 2009

To: RNS

Date: 22 July 2009

From: F&C Managed Portfolio Trust plc

Results for the period from 20 February 2008 (date of incorporation) to 31 May 2009

Net asset value total return per Income share was -20.8%, compared to the FTSE All-Share Index total return of -23.2%, since launch on 16 April 2008.

Four interim dividends paid totalling 4.9p per Income share in respect of the period from launch to 31 May 2009.

Dividend yield of 5.9% at 31 May 2009, based on dividends at an annualised rate of 4.4p per Income share, compared to the yield on the FTSE All-Share Index of 4.6%.

Net asset value total return per Growth share was -28.8%, compared to the FTSE All-Share Index total return of -23.2%, since launch on 16 April 2008.

Chairman's Statement as follows:

Successful launch in a challenging year.
Dividends paid totalling 4.9p per Income share, meeting the prospectus forecast.

The Company was launched only a few months before the full force of the financial and economic storm broke in the autumn of 2008. As a result, it is inevitable, but disappointing, that at the period end the Company's two share classes stood below their issue price.

Much has been written about the crisis, with excessive use of credit leading to the near collapse of the financial system and about the actions of governments and central banks to restore some degree of stability. I see little point in adding more here.

The vast majority of our shareholders are private individuals so we will endeavour to report to you as clearly as possible with the minimum of jargon.

The Board and Investment Manager are strong believers in the investment trust movement, which offers stable, low cost vehicles for investors. We are fortunate in having Peter Hewitt as the lead fund manager, who has spent much of his career managing and investing in investment trusts. As you would expect, the majority of the Directors have invested in the shares of the Company and did so at launch. I have also added to my holding of Income shares during the period.

Some background

The Company was launched following the roll-over of assets held in the F&C investment trust managed portfolio service ('MPS'). We were delighted that approximately 95% of investors supported the launch providing assets of £42.8 million at the start of trading on 16 April 2008. The Company's structure enables the two investment portfolios - one, targeting income and the other capital growth - to be managed more effectively, since no corporation tax is paid on capital gains.

The Company has an innovative structure and any net income earned by the Growth Portfolio is passed to the Income Portfolio which it is able to use to increase the dividends paid to Income shareholders. In return, the Income Portfolio passes an equal amount of capital to the Growth Portfolio. It is important that shareholders appreciate that the Company is not in any sense a 'split capital trust' as there is no element of gearing or borrowing involved. The structure merely allows each of the two Portfolios to enhance the returns to shareholders, as dividends and capital growth respectively.

Performance

Over the 13 ½ month period since launch to the Company's 'year end' on 31 May 2009, the total return (i.e. adding dividends paid to capital performance) of the FTSE All-Share Index was -23.2%. This index is the performance benchmark for both Portfolios.

The net asset value ('NAV') per share of the Income shares fell by 24.6% to 73.86p per share. However, if the three dividends paid out during the period are included, then the total return of -20.8% was ahead of the benchmark. The fourth interim dividend in respect of the period to 31 May 2009 was paid after the period end.

The Growth Portfolio fared less well as its broader exposure to growth - in sector and region - struggled in difficult markets. Its NAV per share fell by 28.8% to 69.79p. However, as some confidence has returned and the strength of Asian and Emerging Markets has been recognised, it has outperformed the benchmark index over the last six months to 31 May 2009.

Dividends

The prospectus issued at the launch of the Company forecast that dividends of 4.9p per Income share would be paid in respect of this first 13 ½ month financial period to 31 May 2009. We have been able to achieve this and transfer £101,000 to revenue reserves.

In the absence of unforeseen circumstances, your Board intends to declare three interim dividends, each of 1p per Income share payable in October 2009, January 2010 and April 2010. It is intended that a fourth interim dividend will be paid to Income shareholders in July 2010 but, in view of the current uncertain outlook, your Board will determine the amount of the fourth interim dividend when a clearer view of income emerges for the year to 31 May 2010.

I have to stress that forecasting income over the coming year is extremely difficult. Much depends on movements in the oil price and the sterling/US dollar exchange rate. Shell, BP and HSBC, which together contribute 34% of the dividend stream from the FTSE All-Share Index, all pay dividends in US dollars. Clearly, we cannot make a formal forecast of dividends from the Company at present.

Discounts and share buy-backs

As shareholders will be aware, the share price of investment trusts does not always mirror closely their underlying NAV and many trusts trade at a substantial discount. By buying back shares from time to time, we have been able to maintain an average discount of 3.0% for the Income shares and 1.9% for the Growth shares. At the period end, the ratings were a premium of 1.5% for the Income shares and a discount of 1.8% for the Growth shares.

During the period the Company bought back 1,825,000 Income shares and 2,035,000 Growth shares, all to be held in Treasury and available to re-sell. In addition, 260,000 Growth shares were bought back and cancelled, as the powers to hold further Treasury shares had been utilised.

By keeping the discount within reasonable limits we have been able to re-sell some of these shares as demand arose. During the period, 268,000 Income shares and 25,000 Growth shares were re-sold out of these Treasury shares. We will be seeking shareholders' approval to renew these powers at the AGM. In addition, since the period end, a further 550,000 Income shares and 100,000 Growth shares have been re-sold out of Treasury at a small premium to NAV.

Share plans and conversion facility

F&C operates various share plans which enable shareholders to invest in the Company's shares in a cost effective way. One of these, the F&C Managed Portfolio Trust Share Plan and ISA, provides investment protection, which repays the gross amount invested, in the event of death. We consider this to be a valuable benefit which may be of interest to many, including trustees. Subject to certain minimum thresholds, shareholders have the opportunity to convert their Income shares into Growth shares and/or their Growth shares into Income shares upon certain dates, the first of which will be 28 October 2009. Full details will be provided on the Company's website (www.fcmanagedportfolio.co.uk) from 29 July 2009 and in the Company's Annual Report and Accounts.

AGM

Over 95% of the Income shares and Growth shares are held by investors through F&C retail plans. Under F&C's current arrangements, the nominee company, which holds these shares on behalf of the plan holders, will vote the shares held on behalf of plan holders who have not returned their voting directions in the same proportion, for, against and withheld, to those that have voted. This proportional voting arrangement will apply, subject to certain limits, at the forthcoming Annual General Meeting. Any investor wishing to exclude his shares from the arrangement may do so.

Outlook

Central banks and financial authorities appear to have succeeded in stabilising economies by nationalising and providing support for failing banks and by providing liquidity for the financial system. Ahead lies the equally difficult task of steering between runaway inflation (which may arise from the injection of billions into the system) and prolonged recession if this stimulus is withdrawn too quickly.

While it is difficult to be optimistic about the outlook for Western economies, equity markets should be supported by reasonable dividend yields - well in excess of interest on bank deposits - and exposure to growing economies in Asia and Emerging Markets.

Richard M. Martin

Chairman

Manager's Review as follows:

Stockmarket background

The shares of F&C Managed Portfolio Trust were listed on the London Stock Exchange on 16 April 2008. The subsequent period to the end of the financial year on 31 May 2009 proved to be one of the most turbulent and challenging ever for investors. When the Company was launched, the FTSE 100 Index stood at 6046; it subsequently rose to 6376 on 19 May 2008, but by 3 March this year had fallen to 3512: a truly momentous decline. By 31 May the Index had rallied to 4418, still substantially lower than May last year, but a welcome recovery nonetheless.

The factors behind such moves have been well documented; sub-prime mortgages in the US and the collapse of US investment bank Lehman Brothers in September, which then triggered a near-failure of the banking system both in Europe and the US. To prevent this required unprecedented intervention and support from authorities and governments. The real economy, which had shown signs of tipping into recession earlier in 2008, rapidly tumbled into a very sharp and severe downturn.

This created very adverse conditions for equity markets which caused substantial falls in index levels as illustrated in the numbers above for the FTSE 100 Index. What the numbers don't reveal is the effect on investor sentiment during this period which could best be described as capitulation and extreme pessimism.

Policy action by monetary authorities, however, was significant and rapid and probably averted the worst. Interest rates have been cut to almost zero, re-capitalisation of the banking system has been undertaken, followed by quantitative easing, whereby the Bank of England purchases both gilts and corporate bonds and, through this mechanism, liquidity is injected into the financial system. By mid-March these actions began to take effect and stock markets staged a marked recovery through to the end of the period covered by this report.

Performance

Despite the recent improvement, equity markets remain well below the level when the Company was listed on the London Stock Exchange last April. For the period under review the FTSE All-Share Index returned -23.2% (in total return terms) whilst the Net Asset Value per share of the Income Portfolio returned -20.8% and the Growth Portfolio -28.8% (again both in total return terms).

In general, when equity markets experience a 'bear' phase, investment companies will tend to underperform market averages. Two factors are behind this trend. First, the discount between the share price of an investment company and its underlying asset value typically widens in a bear market. Second, many investment companies employ gearing (borrowings) which, in a falling market, has an adverse affect on both absolute returns and on returns relative to a benchmark index. It should be remembered that both of the above trends work in reverse when equity markets enter a 'bull' phase.

One of the key features of performance was the level of cash held in both Portfolios throughout 2008. This reflected the Manager's cautious view of markets and was used to provide a measure of protection for the Portfolios. Cash levels were maintained well above average from launch through to the end of 2008. They peaked at 25% for the Growth Portfolio and 22% for the Income Portfolio at the end of October. In December it was decided to gradually move to a more fully invested position and this was achieved by the end of the financial year on 31 May 2009. At that stage cash levels were 6% for the Income Portfolio and 4% for the Growth Portfolio.

A combination of the levels of cash held, and holdings that are typically more defensive in nature, were behind the outperformance of the Income Portfolio relative to that of the FTSE All-Share Index. The Growth Portfolio however did not fare as well, despite the high levels of cash maintained. The traditional reasons why investment companies underperform a falling market, as explained above, were the main factors behind the Growth Portfolio's performance.

However, it should be noted that the reverse trend, also as explained above, was at work as the market recovered. From the end of February to the end of May (effectively the last quarter of the Company's accounting period) the FTSE All-Share Index returned 18.3% whilst the Net Asset Value per share of the Growth Portfolio returned 25.0% (both in total return terms). There is still some way to go; however it is encouraging that the Growth Portfolio in particular performed well during a recovery phase of the stock market.

Investment Approach

For investment companies, whilst the discount between the share price and the net asset value is an important element in the decision to invest, and close attention is paid to it, it is not the dominant factor behind the investment selections of F&C Managed Portfolio Trust. The policy which we believe will serve shareholders best is to employ a long-term approach to investment and, as such, the key driver to performance is asset growth over the long-run. Integral to this approach is endeavouring to identify fund managers, within the investment company universe, who can demonstrate good performance records over the long-term either relative to a benchmark index or against a relevant peer group.

Once a potential investment has been identified an analysis of the fundamentals is then undertaken. Examples of factors to focus on include:

- what the prospects are for the relevant market or sector in which the company specialises,

- the need to understand the capital structure, the attitude to and use of gearing, as well as the cost and flexibility of the borrowings,

- it is essential to meet with the fund manager regularly to gain an understanding and appreciation of their views and approach and also to ensure that they are properly resourced and not managing too many other funds or different mandates,

- what is the investment style; for example, value or growth and how does this translate into portfolio selections.

Investment Strategy and Outlook

On balance it appears likely that economic activity in the UK (and probably the US) will stabilise during the second half of this year. The interesting question then revolves around the likely trajectory and profile of growth from 2010 onwards. Given the high levels of both government and personal indebtedness in the UK any upturn may well be of a more muted variety than otherwise would have been the case. Inflation and higher interest rates, neither of which is on the agenda currently, will also serve to constrain the strength of any recovery over the medium-term.

Against this background, and despite the recent rally, the valuation of UK equities in a historic context is modest. At the time of writing the historic price earnings ratio is around 10 times and the historic dividend yield 4.6%. Indeed, even allowing for a further fall in corporate earnings and dividends over the rest of 2009, equities are attractively valued when compared to bonds or cash.

In terms of strategy, it is the intention that the Company continues to be fully invested. Within that a key theme for both Portfolios is to have considerable exposure to overseas markets. This is primarily because growth prospects, particularly in the Pacific Rim region and also for other Emerging Markets, are superior to those of the UK. Returns from overseas holdings are boosted should sterling weaken and, whilst it is extremely hazardous to forecast currency movements in the near term, looking ahead to the long-term it is difficult to view sterling as anything else but a relatively weak currency. Given underlying gearing in our investee companies it is not our intention to use gearing in either Portfolio at present.

An additional theme for the Income Portfolio is to have a high exposure to equities and not to be overly reliant on bond or property-related holdings, which tend to have good income streams but less growth potential. This strategy should permit robust capital returns from the Income Portfolio over the medium-term and highlights that the Income Portfolio is managed from a total return perspective with a focus on both capital and income.

The first accounting period for F&C Managed Portfolio Trust could hardly have been more challenging; however, both Portfolios have emerged in reasonable shape. The Manager is cautiously optimistic for the year ahead.

Peter Hewitt

Investment Manager Income Statement (audited)

Period from 20 February 2008 (date of incorporation) to 31 May 2009*


	Note
		Revenue	Capital	Total
		£'000	£'000	£'000

Losses on investments		-	(11,462)	(11,462)
Income		1,527	-	1,527
Investment management fee		(62)	(180)	(242)
Other expenses		(319)	-	(319)
Return on ordinary activities before tax		1,146	(11,642)	(10,496)
Tax on ordinary activities	5	(32)	24	(8)
Return attributable to shareholders		1,114	(11,618)	(10,504)

Return per Income share (pence)	3	5.33p	(27.39)p	(22.06)p
Return per Growth share (pence)	3	-p	(30.00)p	(30.00)p

The total column of this statement is the Profit and Loss Account of the Company.

The supplementary revenue and capital columns are prepared under guidance published by The Association of Investment Companies.

Segmental analysis for the two separate Portfolios of assets, the Income Portfolio and the Growth Portfolio, is provided in note 2.

All revenue and capital items in the Income Statement derive from continuing operations.

* The Company was incorporated on 20 February 2008 and commenced operations on 16 April 2008.

Balance Sheet as at 31 May 2009 (audited)

		Income Shares	Growth Shares	Total
	Note	£'000	£'000	£'000

Non-current assets
Investments at fair value		14,137	12,463	26,600
Current assets
Debtors		30	22	52
Cash at bank and on deposit		981	609	1,590
		1,011	631	1,642

Creditors
Amount falling due within one year		(117)	(68)	(185)
Net current assets		894	563	1,457
Net assets		15,031	13,026	28,057

Capital and reserves
Called-up share capital		2,191	2,068	4,259
Capital redemption reserve		-	26	26
Special reserve		18,194	16,831	35,025
Capital reserve		(5,748)	(5,899)	(11,647)
Revenue reserve		394	-	394
Shareholders' Funds		15,031	13,026	28,057

Net asset value per share (pence)	6	73.86p	69.79p

Cash Flow Statement

Period from 20 February 2008 (date of incorporation) to 31 May 2009*

	Income Shares	Growth Shares	Total
	£'000	£'000	£'000

Operating activities
Investment income received	920	379	1,299
Deposit interest received	99	93	192
Investment management fees paid	(84)	(76)	(160)
Other cash payments	(125)	(106)	(231)
Net cash inflow from operating activities	810	290	1,100
Taxation
Withholding tax paid	(6)	(2)	(8)
Capital expenditure and financial investment
Purchases of investments	(9,675)	(13,139)	(22,814)
Disposals of investments	11,413	15,304	26,717
Net cash inflow from capital expenditure and financial investment	1,738	2,165	3,903
Equity dividends paid	(720)	-	(720)
Net cash inflow before financing	1,822	2,453	4,275
Financing
Issue of new shares	30	30	60
Expenses of share issue and launch costs	(328)	(314)	(642)
Sale of shares from treasury	182	16	198
Shares purchased for cancellation	-	(153)	(153)
Shares purchased to be held in treasury	(1,401)	(1,564)	(2,965)
Net cash outflow from financing	(1,517)	(1,985)	(3,502)
Increase in cash	305	468	773
Reconciliation of net cash flow to movement in net cash
Increase in cash in the period	305	468	773
Cash inflow from transfer of cash at launch†	676	141	817
Movement in net cash resulting from cash flows	981	609	1,590
Opening net cash at 20 February 2008	-	-	-
Closing net cash at 31 May 2009	981	609	1,590

† On 16 April 2008, investments with a market value of £21,201,000 (Income) and £20,764,000 (Growth) together with cash of £676,000 (Income) and £141,000 (Growth) (all of which were held in F&C's investment trust managed portfolio service) were received by the Company in exchange for the issue of Income and Growth Shares.

* The Company was incorporated on 20 February 2008 and commenced operations on 16 April 2008.

Reconciliation of Movements in Shareholders' Funds (audited)

Period from 20 February 2008 (date of incorporation) to 31 May 2009*

	Income Shares	Growth Shares	Total
	£'000	£'000	£'000

Opening shareholders' funds at 20 February 2008	-	-	-
Increase in share capital in issue	21,907	20,936	42,843
Launch costs	(328)	(314)	(642)
Sale of shares from treasury	182	16	198
Shares purchased for treasury	(1,401)	(1,564)	(2,965)
Shares purchased for cancellation	-	(153)	(153)
Transfer of net income from Growth shares to Income shares	318	(318)	-
Transfer of capital from Income shares to Growth shares	(318)	318	-
Dividends paid	(720)	-	(720)
Return attributable to shareholders	(4,609)	(5,895)	(10,504)
Closing shareholders' funds at 31 May 2009	15,031	13,026	28,057

* The Company was incorporated on 20 February 2008 and commenced operations on 16 April 2008.

Principal Risks and Uncertainties

The Company's assets consist mainly of listed equity securities and its principal risks are therefore market-related. Other risks faced by the Company include the following:

External - events such as terrorism, protectionism, inflation or deflation, economic recessions and movements in interest rates and exchange rates could affect share prices in particular markets.

Investment and strategic - incorrect strategy, asset allocation, stock selection and the use of gearing could all lead to poor returns for shareholders.

Credit risk - is the risk that a counterparty will fail to discharge an obligation or commitment that it has entered into with the Company. All the assets of the Company which are traded on a recognised exchange are held by JPMorgan Chase Bank, the Company's custodian. Bankruptcy or insolvency of the custodian may cause the Company's rights with the respect to securities held by the custodian to be delayed or limited.

Regulatory - breach of regulatory rules could lead to suspension of the Company's Stock Exchange listing, financial penalties or a qualified audit report. Breach of Section 842 of the Income and Corporation Taxes Act 1988 could lead to the Company being subject to tax on capital gains.

Operational - failure of the Manager's accounting systems or disruption to the Manager's business, or that of the third party service providers, could lead to an inability to provide accurate reporting and monitoring, leading to a loss of shareholders' confidence.

Financial - inadequate controls by the Manager or third party service providers could lead to misappropriation of assets. Inappropriate accounting policies or failure to comply with accounting standards could lead to misreporting or breaches of regulations.

The Board seeks to mitigate and manage these risks through continual review, policy-setting and reliance upon contractual obligations. It also regularly monitors the investment environment and the management of the Company's investment portfolio, and applies the principles detailed in the internal control guidance issued by the Financial Reporting Council.

F&C Managed Portfolio Trust plc

Statement of Directors' Responsibilities in Respect of the Annual Financial Report

In accordance with Chapter 4 of the Disclosure and Transparency Rules, we confirm that to the best of our knowledge:

The financial statements contained within the Annual Report for the period from incorporation on 20 February 2008 to 31 May 2009, of which this statement of results is an extract, have been prepared in accordance with applicable UK Generally Accepted Accounting Practice, on a going concern basis, and give a true and fair view of the assets, liabilities, financial position and return of the Company;

The Chairman's Statement and Manager's Review include a fair review of the important events that have occurred during the financial period and their impact on the financial statements;

'Principal Risks and Risk Management' includes a description of the Company's principal risks and uncertainties; and

The Annual Report includes details of related party transactions that have taken place during the financial period.

On behalf of the Board

Richard M. Martin

Chairman

21 July 2009

Notes (audited)

1.    The financial statements of the Company, which are the responsibility of, and were approved by, the
       Board on 21 July 2009, have been prepared in accordance with UK Generally Accepted Accounting
       Practice ('UK GAAP') and in accordance with guidelines set out in the Statement of Recommended
       Practice (''SORP''), issued in January 2009, for Investment Trust Companies and Venture Capital Trusts
       issued by the Association of Investment Companies (''AIC'').

2. Segmental analysis

The Company carries on business as an investment trust, and manages two separate portfolios of assets,
the Income Portfolio and the Growth Portfolio.

The Company's Income Statement can be analysed as follows:

Period from 20 February 2008 (date of incorporation) to 31 May 2009*

	Income Portfolio			Growth Portfolio
	Revenue	Capital	Total	Revenue	Capital	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Losses on investments	-	(5,326)	(5,326)	-	(6,136)	(6,136)
Income	1,039	-	1,039	488	-	488
Investment management fee	(43)	(103)	(146)	(19)	(77)	(96)
Other expenses	(170)	-	(170)	(149)	-	(149)
Return on ordinary activities
before tax	826	(5,429)	(4,603)	320	(6,213)	(5,893)
Tax on ordinary activities	(30)	24	(6)	(2)	-	(2)
Return ≠	796	(5,405)	(4,609)	318	(6,213)	(5,895)

* The Company was incorporated on 20 February 2008 and commenced operations on

16 April 2008.

≠ Any net revenue return attributable to the Growth Portfolio is transferred to the Income Portfolio and a corresponding transfer of an identical amount of capital is made from the Income Portfolio to the Growth Portfolio and accordingly the whole return in the Growth Portfolio is capital. Refer to the Reconciliation of Movements in Shareholders' Funds.

3. Return per share

The return per share is as follows:

	Income Shares			Growth Shares
	Revenue	Capital	Total	Revenue	Capital	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Return attributable to Portfolios	796	(5,405)	(4,609)	318	(6,213)	(5,895)
Transfer of net income from Growth to Income Portfolio	318	-	318	(318)	-	(318)
Transfer of capital from Income to Growth Portfolio	-	(318)	(318)	-	318	318
Return attributable to shareholders	1,114	(5,723)	(4,609)	-	(5,895)	(5,895)
Return per share	5.33p	(27.39)p	(22.06)p	-	(30.00)p	(30.00)p

The Income shares revenue and capital return per share have been calculated using a denominator of 20,897,345 Income shares, being the weighted average number of Income shares in issue during the period.

The Growth shares revenue and capital return per share have been calculated using a denominator of 19,647,465 Growth shares, being the weighted average number of Growth shares in issue during the period.

4. The fourth interim dividend of 1.4p per Income share, was paid on 9 July 2009 to Income shareholders on
the register at close of business on 26 June 2009, having an ex-dividend date of 24 June 2009.

5 a) Tax on ordinary activities

Income Portfolio

Growth Portfolio

Total

Revenue

£'000

Capital

£'000

Total

£'000

Revenue

£'000

Capital

£'000

Total

£'000

Revenue

£'000

Capital

£'000

Total

£'000

Corporation tax

(19)

Double tax relief

(6)

Overseas taxation

Current tax charge/(credit)

for the period

(19)

Deferred taxation on accrued income (note 5c)

(5)

Taxation on ordinary activities

(24)

b) Reconciliation of tax charge

The tax charge for the period is different to the standard rate of corporation tax in the UK for an investment company (28 per cent). The differences are explained below:

	Income Shares £'000	Growth Shares £'000	Total £'000
Return on ordinary activities before tax:	(4,603)	(5,893)	(10,496)
Corporation tax at standard rate of 28 per cent	(1,289)	(1,650)	(2,939)
Effects of:
Losses on investments not relievable	1,491	1,718	3,209
Overseas tax suffered	6	2	8
Double tax relief	(6)	-	(6)
Non taxable dividend income	(200)	(101)	(301)
Expenses not utilised	5	33	38
Marginal relief	(1)	-	(1)
Current year tax charge (note 5a)	6	2	8

c) Provision for deferred taxation

	Income Shares			Growth Shares			Total
	Revenue £’000	Capital £’000	Total £’000	Revenue £’000	Capital £’000	Total £’000	Revenue £’000	Capital £’000	Total £’000
Charge/(credit) for the period	5	(5)	-	-	-	-	5	(5)	-

       As at 31 May 2009, the Company had unutilised expenses of £128,000. No deferred tax asset has been
       recognised on the unutilised expenses as it is unlikely there will be suitable taxable profits from which the
       future reversal of the deferred tax could be deducted.

6.    The basic net asset value per Income share of 73.86p is based on the Income shares net assets of
       £15,031,000 and on 20,350,192 Income shares, being the number of Income shares in issue at the period
       end.

       The basic net asset value per Growth share of 69.79p is based on the Growth shares net assets of
       £13,026,000 and on 18,665,567 Growth shares, being the number of Growth shares in issue at the period
       end.

7.     At incorporation, four subscriber shares (2 Income shares and 2 Growth shares) were subscribed for, fully
        paid, at a subscription price of £1 each (nominal value 10p each).

        On 15 April 2008, the Company issued 21,907,190 Income shares and 20,935,565 Growth shares each
        at an Issue price of £1 each. The value of the assets acquired in relation to the allotment of these Income
        shares was investments with a market value of £21,201,034 and cash of £706,158. The value of the
        assets acquired in relation to the allotment of these Growth shares was investments with a market value
        of £20,764,440 and cash of £171,127.

        During the period the Company bought back 1,825,000 Income shares at a cost of £1,401,000 and
        2,035,000 Growth shares at a cost of £1,564,000 to be held in treasury. During the period the Company
        resold out of treasury 268,000 Income shares, receiving net proceeds of £182,000 and 25,000 Growth
        shares receiving net proceeds of £16,000.

During the period the Company bought back 260,000 Growth shares at a cost of £153,000 for
cancellation.

At 31 May 2009 the Company held 1,557,000 Income Shares and 2,010,000 Growth Shares in treasury.

8. Financial Instruments

       The Company's financial instruments comprise its investment portfolio, cash balances and debtors and
       creditors that arise directly from its operations. As an investment trust the Company holds a portfolio of
       financial assets in pursuit of its investment objective.

Listed fixed asset investments held are valued at fair value. The fair value of all other financial assets and
liabilities is represented by their carrying value in the Balance Sheet.

The fair value of the financial assets and liabilities of the Company at 31 May 2009 is not materially
different from their carrying value in the financial statements.

The main risks that the Company faces arising from its financial instruments are:

(i) market price risk, being the risk that the value of investment holdings will fluctuate as a result of
changes in market prices caused by factors other than interest rate or currency rate movements;

(ii) interest rate risk, being the risk that the future cash flows of a financial instrument will fluctuate
because of changes in market interest rates;

(iii) foreign currency risk, being the risk that the value of investment holdings, investment purchases,
investment sales and income will fluctuate because of movements in currency rates;

(iv) credit risk, being the risk that a counterparty to a financial instrument will fail to discharge an
obligation or commitment that it has entered into with the Company; and

(v) liquidity risk, being the risk that the Company may not be able to liquidate its investments quickly.

Market price risk

       The management of market price risk is part of the fund management process and is typical of equity
       investment. The portfolio is managed with an awareness of the effects of adverse price movements
       through detailed and continuing analysis with an objective of maximising overall returns to shareholders.

Interest rate risk

Floating rate

       When the Company retains cash balances the majority of the cash is held in deposit accounts. The
     benchmark rate which determines the interest payments received on cash balances is the UK base rate
       which was 0.5 per cent at 31 May 2009.

Fixed rate

The Company does not hold any fixed interest investments.

Foreign currency risk

       Although the Company's performance is measured in sterling and the Company's investments are
       denominated in sterling a proportion of their underlying assets are quoted in currencies other than sterling.
       Therefore movements in the rates of exchange between sterling and other currencies may affect the
       Company's investment portfolios and therefore they have currency exposure.

Credit risk

        Credit risk is the risk that a counterparty to a financial instrument will fail to discharge an obligation or
        commitment that it has entered into with the Company. The investment manager has in place a
        monitoring procedure in respect of counterparty risk which is reviewed on an ongoing basis. The carrying
        amounts of financial assets best represents the maximum credit risk exposure at the balance sheet
        date.

        Credit risk arising on transactions with brokers relates to transactions awaiting settlement. Risk relating
        to unsettled transactions is considered to be small due to the short settlement period involved and the
        acceptable credit quality of the brokers used. The Manager monitors the quality of service provided by the
        brokers used to further mitigate this risk.

        All the assets of the Company which are traded on a recognised exchange are held by JPMorgan Chase
        Bank, the Company's custodian. Bankruptcy or insolvency of the custodian may cause the Company's
        rights with respect to securities held by the custodian to be delayed or limited. The Board monitors the
        Company's risk by reviewing the custodian's internal control reports.

        The credit risk on liquid funds is controlled because the counterparties are banks with acceptable credit
        ratings, normally rated AA or higher, assigned by international credit rating agencies. Bankruptcy or
        insolvency of such financial institutions may cause the Company's ability to access cash placed on
        deposit to be delayed, limited or lost.

Liquidity risk
The Company's listed securities are considered to be readily realisable.

        The Company's liquidity risk is managed on an ongoing basis by the investment manager in accordance
        with policies and procedures in place. The Company's overall liquidity risks are monitored on a quarterly
        basis by the Board.

        The Company maintains sufficient investments in cash and readily realisable securities to pay accounts
        payable and accrued expenses. Short term flexibility is achieved, where necessary, through the use of
        overdraft facilities.

9.    Subject to certain minimum and maximum thresholds which may be set by the Board of F&C Managed
        Portfolio Trust plc (the 'Board') from time to time, shareholders have the opportunity to convert their
        Income shares into Growth shares and/or their Growth shares into Income shares upon certain dates, the
        first of which will be 28 October 2009 and then annually or close to annually thereafter (subject to the
        articles of association of the Company). The Conversion notice period will commence on 29 July 2009
        and full details will be provided on the Company's website from this date and in the Company's Annual
        Report and Accounts.

10.    These are not full statutory accounts in terms of Section 434 of the Companies Act 2006. The full
         audited Annual Report and Accounts for the period ended 31 May 2009 will be sent to shareholders in
         July 2009 and will be available for inspection at 80 George Street, Edinburgh, the registered office of the
         Company. The full Annual Report and Accounts will be available on the Company's
         website www.fcmanagedportfolio.co.uk.

The audited accounts for the period to 31 May 2009 will be lodged with the Registrar of Companies
following the Annual General Meeting to be held on 22 September 2009.

For further information, please contact:

Peter Hewitt, F&C Investment Business Limited 0131 718 1244

Ian Ridge, F&C Investment Business Limited 0131 718 1010

This information is provided by RNS

The company news service from the London Stock Exchange

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