Half Yearly Report

RNS Number : 7691C

F&C Managed Portfolio Trust PLC

21 January 2015

 



To:     RNS

Date:  21 January 2015

From: F&C Managed Portfolio Trust plc

Interim Results

The Board of F&C Managed Portfolio Trust plc announces the unaudited interim results of the Company for the six month period to 30 November 2014.

Chairman's Statement

Highlights

—	A period of positive returns; 3.0% for the Income shares and 4.3% for the Growth shares compared to the FTSE All-Share Index of -0.1%
—	First two interim dividends increased to 1.15 pence per Income share
—	Income share dividend yield of 3.9% at 30 November 2014

Investment performance

For the six months to 30 November 2014, the net asset value (NAV) total return was 3.0% for the Income shares and 4.3% for the Growth shares. The total return for the benchmark index for both Portfolios, the FTSE All-Share Index, was -0.1% while the FTSE Equity Investment Instruments Index, returned 5.6%.

There were a number of notable features in the global economic background:

-        The decline in the price of oil from $112 as at the end of June to around $70 at the end of November with further falls to below $50 currently.

-        Concerns over growth globally and in particular in the Euro zone where there is little forward economic momentum in key economies and the threat of deflation has become very real.

-        The weakness of sterling relative to the US dollar. The currency declined 7% over the period.

It is encouraging that both Portfolios outperformed the FTSE All-Share Index, maintaining their strong performance record. The key drivers behind the performance of the Growth Portfolio were holdings exposed to the biotechnology and technology sectors. The leading performance came from the Biotech Growth Trust which rose 52% and the Worldwide Healthcare Trust which gained 33%. Successful new products and continuing merger and acquisition activity underpinned the share prices of leading companies in the sector, almost all of which are based in the US. Stocks in the broader technology sector also did well, again mainly based in the US. This helped the strong performance of Scottish Mortgage Investment Trust which rose 24% and Polar Capital Technology Trust which was up 23%.

In the Income Portfolio the major contributor was the Swiss based BB Biotech which is exposed to the same biotech theme and where shareholders receive a dividend equivalent to 5% of the share price at the start of a calendar year. The share price rose 50% over the period. Another strong performer was Schroder Real Estate Investment Trust which was ahead by 10%. It benefitted from the uplift in property values in key provincial cities in the UK and has little exposure in central London.

The underperformers were focussed on the commodity and natural resource sectors where the oversupply situation in oil and certain key commodities is likely to persist for some time. Against this background the holdings in Blackrock World Mining and BlackRock Commodities Income Investment Trust have both been sold.

Revenue and dividends

The Company's net revenue return for the six month period was £745,000 which is equivalent to 2.68p per Income share (compared to 2.76p per Income share for the corresponding period in 2013). Income shares are entitled to all the dividends paid by the Company.

The Company has declared a first and second interim dividend in respect of the year to 31 May 2015, each of 1.15p per Income share (1.1p per share in the prior periods). The second interim dividend was paid to Income shareholders on 5 January 2015, after the period end.

The Board intends to pay three interim dividends, each of 1.15p per Income share in the current financial year. The amount of the fourth interim dividend will be determined when a clearer view of income for the year emerges. The annual rate of 4.8p per Income share paid in the prior year represents a yield on the Income share price at 30 November 2014 of 3.9%.

Borrowing

After the period end, the Company entered into a £5 million unsecured revolving credit facility with The Royal Bank of Scotland plc to be used in place of the borrowing facility with its custodian JPMorgan Chase Bank. Borrowings are not normally expected to exceed 20% of the total assets of the relevant Portfolio and at the time of writing total £1.5 million (4.2%) in the Income Portfolio and £1.4 million (3.6%) in the Growth Portfolio.

Discount to NAV and share buy-backs

In normal circumstances we aim to maintain our discount at not more than 5%, if necessary, by buying back shares from time to time. During the six months to 30 November 2014 we have been able to maintain an average premium of 1.5% for the Income shares and 0.6% for the Growth shares. At 30 November 2014, the Income shares stood at a premium of 1.4% to NAV and the Growth shares at a discount of 1.2%.

During the period 700,000 Income shares were sold through our block listing authority and 200,000 Growth shares were sold from treasury. These shares were sold at average premiums to NAV of 1.6% and 1.1% respectively.

Renewing the Board's authority to issue further shares

The Board believes that the Company's continuing ability to issue shares at a premium to NAV increases liquidity, spreads the fixed costs of the Company over a larger asset base and reduces volatility by preventing the build-up of excessive demand for shares. Over the last twelve months the Company has sold all its remaining Income shares which were held in treasury and 1,400,000 Growth shares which were held in treasury. It has also issued a further 1,225,000 new Income shares.

We anticipate that before the next AGM in September future demand is likely to exceed our authority to issue shares, which is currently limited to approximately 10% of the Company's shares. If no action was taken, the Company would need to limit the issuance of new shares which the Directors believe would not be in the interests of shareholders. At a General Meeting to be held on 2 February 2015 the Board is therefore seeking early renewal of shareholder authorities to allot further Income shares and Growth shares and to dis-apply pre-emption rights in respect of those shares.

Where a company wishes to apply for the admission to trading on a regulated market of shares representing, over a period of 12 months, 10% or more of its shares, then the Prospectus Rules provide that the company is required to issue a prospectus. Accordingly, subject to the requisite authorities being granted by shareholders at the General Meeting, the Company intends to publish a prospectus shortly thereafter. This would allow the Company to continue its share issuance policy if required.

Alternative Investment Fund Managers Directive ("AIFMD")

As highlighted in previous reports, the AIFMD is new European legislation which regulates the management of alternative investment funds and so applies to the Company. In order to satisfy the demands of the Directive the Board has entered into arrangements with the Manager, F&C Investment Business Limited, to act as the Company's Alternative Investment Fund Manager, at no additional cost to the Company. Under the Directive, the Company was also required to appoint a Depositary and the Company appointed JPMorgan Europe Limited. This will result in an additional cost but the Board does not expect this to be significant.

Outlook

The magnitude of the fall of the oil price has certainly caught markets by surprise. Clearly it is bad news for oil producers and good news for oil consumers, basically Europe, Asia and the US. It should be helpful for growth which is important for Europe where the ECB have just cut their growth expectations for the Euro zone in half for 2015 to 1% pa. It will also have the effect of reducing inflation in the Euro zone which may well turn negative during the first half of 2015. Lower energy prices are the equivalent of a tax cut, particularly for the US where 70% of the economy is consumer based. This underpins the outlook for growth in the US which could well strengthen further in 2015 and bring with it the likelihood of the first interest rate increase for many years. The UK should also do well though the prospect of a rate increase is somewhat further out. The area of most concern remains Europe.

Prospects for corporate earnings and dividend growth are good in the US, reasonable in the UK and less clear in the Euro zone. Equity markets, particularly in the US, have come a long way; however bull markets tend not to end until either valuation levels massively overshoot fair value or there is premature monetary tightening, of which there is no sign yet. Our strategy is to remain fully invested as there should be more to go for in this market cycle, though there is little room for error.

Richard M Martin

Chairman

21 January 2015

Unaudited Condensed Income Statement

Six months to 30 November 2014

	Notes	Revenue	Capital	Total
		£'000	£'000	£'000
Gains on investments Foreign exchange losses		-             -	1,887             (2)	1,887 (2)
Income	2	993	-	993
Investment management and performance fee	3	(67)	(158)	(225)
Other expenses		(173)	-	(173)
Return on ordinary activities before finance  costs and tax		753	1,727	2,480
Finance costs		(3)	(6)	(9)
Return on ordinary activities before tax		750	1,721	2,471
Tax on ordinary activities		(5)	-	(5)
Return attributable to shareholders		745	1,721	2,466
Return per Income share (pence)	4	2.68p	0.73p	3.41p
Return per Growth share (pence)	4	-	5.81p	5.81p

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

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

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

Unaudited Condensed Income Statement

Six months to 30 November 2013

	Notes	Revenue	Capital	Total
		£'000	£'000	£'000
Gains on investments		-	2,440	2,440
Income	2	962	-	962
Investment management and performance fee	3	(61)	(146)	(207)
Other expenses		(152)	-	(152)
Return on ordinary activities before finance costs and tax		749	2,294	3,043
Finance costs		(5)	(9)	(14)
Return on ordinary activities before tax		744	2,285	3,029
Tax on ordinary activities		(4)	-	(4)
Return attributable to shareholders		740	2,285	3,025
Return per Income share (pence)	4	2.76p	0.45p	3.21p
Return per Growth share (pence)	4	-	8.67p	8.67p

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

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

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

Condensed Income Statement (audited)

Year to 31 May 2014

	Notes	Revenue	Capital	Total
		£'000	£'000	£'000
Gains on investments Foreign exchange losses		- -	3,528 (9)	3,528 (9)
Income	2	1,971	-	1,971
Investment management and performance fee	3	(125)	(297)	(422)
Other expenses		(332)	-	(332)
Return on ordinary activities before finance costs and tax		1,514	3,222	4,736
Finance costs		(11)	(21)	(32)
Return on ordinary activities before tax		1,503	3,201	4,704
Tax on ordinary activities		(4)	-	(4)
Return attributable to shareholders		1,499	3,201	4,700
Return per Income share (pence)	4	5.56p	1.22p	6.78p
Return per Growth share (pence)	4	-	11.41p	11.41p

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

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

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

Unaudited Condensed Balance Sheet

As at 30 November 2014

	Notes	Income Shares	Growth Shares	Total
		£'000	£'000	£'000
Non-current assets
Investments at fair value		34,277	38,110	72,387
Current assets
Debtors		67	567	634
		67	567	634
Creditors
Amounts falling due within one year		(310)	(1,532)	(1,842)
Net current liabilities		(243)	(965)	(1,208)
Net assets		34,034	37,145	71,179
Capital and reserves
Called-up share capital	6	2,821	2,740	5,561
Share premium		6,083	8,372	14,455
Capital redemption reserve		-	182	182
Special reserve		19,380	15,901	35,281
Capital reserves		4,764	9,950	14,714
Revenue reserve		986	-	986
Shareholders' Funds		34,034	37,145	71,179
Net asset value per share (pence)	7	120.62p	142.24p

Unaudited Condensed Balance Sheet

As at 30 November 2013

	Notes	Income Shares	Growth Shares	Total
		£'000	£'000	£'000
Non-current assets
Investments at fair value		33,023	33,702	66,725
Current assets
Debtors		83	46	129
		83	46	129
Creditors
Amounts falling due within one year		(1,256)	(483)	(1,739)
Net current liabilities		(1,173)	(437)	(1,610)
Net assets		31,850	33,265	65,115
Capital and reserves
Called-up share capital		2,736	2,740	5,476
Share premium		5,033	7,922	12,955
Capital redemption reserve		-	182	182
Special reserve		18,920	14,696	33,616
Capital reserves		4,352	7,725	12,077
Revenue reserve		809	-	809
Shareholders' Funds		31,850	33,265	65,115
Net asset value per share (pence)	7	118.49p	133.51p

Condensed Balance Sheet (audited)

As at 31 May 2014

		Income Shares	Growth Shares	Total
	Notes	£'000	£'000	£'000
Non-current assets
Investments at fair value		33,514	35,218	68,732
Current assets
Debtors		41	49	90
Cash at bank and on deposit		-	341	341
		41	390	431
Creditors
Amounts falling due within one year		(577)	(258)	(835)
Net current (liabilities)/assets		(536)	132	(404)
Net assets		32,978	35,350	68,328
Capital and reserves
Called-up share capital		2,751	2,740	5,491
Share premium		5,312	8,295	13,607
Capital redemption reserve		-	182	182
Special reserve		19,380	15,700	35,080
Capital reserves		4,560	8,433	12,993
Revenue reserve		975	-	975
Shareholders' Funds		32,978	35,350	68,328
Net asset value per share (pence)	7	119.85p	136.41p

Unaudited Condensed Statement of Cash Flows

Six months to 30 November 2014

		Income Shares	Growth Shares	Total
		£'000	£'000	£'000
Net cash inflow from operating activities		461	95	556
Cash outflow from servicing of finance		(5)	(4)	(9)
Net cash outflow from financial investment		(304)	(1,430)	(1,734)
Equity dividends paid		(734)	-	(734)
Net cash outflow before financing		(582)	(1,339)	(1,921)
Net cash inflow from financing		841	278	1,119
Increase/(decrease) in cash		259	(1,061)	(802)
Reconciliation of net cash flow to movement in net debt
Increase/(decrease) in cash as above		259	(1,061)	(802)
Opening net (debt)/cash		(467)	341	(126)
Closing net debt		(208)	(720)	(928)
Reconciliation of net return before finance costs and taxation to net cash inflow from operating activities
Net return before finance costs and taxation		957	1,523	2,480
Withholding tax suffered Foreign exchange losses		(3) 2	(2) -	(5) 2
Gains on investments		(461)	(1,426)	(1,887)
Changes in working capital and other non-cash   items		(34)	-	(34)
Net cash inflow from operating activities		461	95	556

Unaudited Condensed Statement of Cash Flows

Six months to 30 November 2013

		Income Shares	Growth Shares	Total
		£'000	£'000	£'000
Net cash inflow from operating activities		338	62	400
Cash outflow from servicing of finance		(11)	(3)	(14)
Net cash (outflow)/inflow from financial investment		(715)	96	(619)
Equity dividends paid		(642)	-	(642)
Net cash (outflow)/inflow before financing		(1,030)	155	(875)
Net cash inflow/(outflow) from financing		292	(105)	187
(Decrease)/increase in cash		(738)	50	(688)
Reconciliation of net cash flow to movement in net debt
(Decrease)/increase in cash as above		(738)	50	(688)
Opening net debt		(421)	(430)	(851)
Closing net debt		(1,159)	(380)	(1,539)
Reconciliation of net return before finance costs and taxation to net cash inflow from operating activities
Net return before finance costs and taxation		876	2,167	3,043
Withholding tax suffered		(3)	(1)	(4)
Gains on investments		(374)	(2,066)	(2,440)
Changes in working capital and other non-cash   items		(161)	(38)	(199)
Net cash inflow from operating activities		338	62	400

Condensed Statement of Cash Flows (audited)

Year to 31 May 2014

		Income Shares	Growth Shares	Total
		£'000	£'000	£'000
Net cash inflow from operating activities		912	168	1,080
Cash outflow from servicing of finance		(25)	(7)	(32)
Net cash outflow from financial investment		(744)	(662)	(1,406)
Equity dividends paid		(1,235)	-	(1,235)
Net cash outflow before financing		(1,092)	(501)	(1,593)
Net cash inflow from financing		1,046	1,272	2,318
(Decrease)/increase in cash		(46)	771	725
Reconciliation of net cash flow to movement in net debt
(Decrease)/increase in cash as above		(46)	771	725
Opening net debt		(421)	(430)	(851)
Closing net (debt)/cash		(467)	341	(126)
Reconciliation of net return before finance costs and taxation to net cash inflow from operating activities
Net return before finance costs and taxation		1,857	2,879	4,736
Withholding tax suffered Foreign exchange losses		(3)             9	(1)             -	(4)             9
Gains on investments		(845)	(2,683)	(3,528)
Changes in working capital and other non-cash   items		(106)	(27)	(133)
Net cash inflow from operating activities		912	168	1,080

Unaudited Condensed Reconciliation of Movements in Shareholders' Funds

Six months to 30 November 2014

Notes		Income Shares	Growth Shares	Total
		£'000	£'000	£'000
Opening shareholders' funds Increase in share capital in issue		32,978 841	35,350 -	68,328 841
Shares sold from treasury		-	278	278
Transfer of net income from Growth shares to   Income shares		188	(188)	-
Transfer of capital from Income shares to Growth   shares		(188)	188	-
Dividends paid	5	(734)	-	(734)
Return attributable to shareholders		949	1,517	2,466
Closing shareholders' funds		34,034	37,145	71,179

Unaudited Condensed Reconciliation of Movements in Shareholders' Funds

Six months to 30 November 2013

Notes		Income Shares	Growth Shares	Total
		£'000	£'000	£'000
Opening shareholders' funds		31,338	31,207	62,545
Shares sold from treasury		292	220	512
Shares purchased for treasury		-	(325)	(325)
Transfer of net income from Growth shares to   Income shares		184	(184)	-
Transfer of capital from Income shares to Growth   shares		(184)	184	-
Dividends paid	5	(642)	-	(642)
Return attributable to shareholders		862	2,163	3,025
Closing shareholders' funds		31,850	33,265	65,115

Condensed Reconciliation of Movements in Shareholders' Funds (audited)

Year to 31 May 2014

		Income Shares	Growth Shares	Total
		£'000	£'000	£'000
Opening shareholders' funds Increase in share capital in issue		31,338 180	31,207                    -	62,545 180
Shares sold from treasury		866	1,597	2,463
Shares purchased for treasury		-	(325)	(325)
Transfer of net income from Growth shares to   Income shares		368	(368)	-
Transfer of capital from Income shares to Growth   shares		(368)	368	-
Dividends paid		(1,235)	-	(1,235)
Return attributable to shareholders		1,829	2,871	4,700
Closing shareholders' funds		32,978	35,350	68,328

 Statement of Principal Risks and Uncertainties

The Company's assets consist mainly of listed equity securities and its principal risks are therefore market-related.  The most important types of risk associated with financial instruments are credit risk, market price risk, liquidity risk, interest rate risk and foreign currency risk.  Other risks faced by the Company include external, investment and strategic, regulatory, operational and financial risks.

These risks, and the way in which they are managed, are described in more detail under the heading "Principal Risks" within the Strategic Report in the Company's 2014 Annual Report. 

The Company's principal risks and uncertainties have not changed materially since the date of that report and are not expected to change materially for the remainder of the Company's financial year.

Statement of Directors' Responsibilities in Respect of the Interim Report

We confirm, that to the best of our knowledge:

·      the condensed set of financial statements have been prepared in accordance with the Statement 'Half-Yearly Financial Reports' issued by the UK Accounting Standards Board and  give a true and fair view of the assets, liabilities, financial position and return of the Company;

·      the Chairman's Statement (constituting the Interim Management Report) together with the Statement of Principal Risks and Uncertainties shown above include a fair review of the information required by the Disclosure and Transparency Rules ('DTR') 4.2.7R, being an indication of important events that have occurred during the first six months of the financial year and their impact on the financial statements; and

·      the condensed set of financial statements include a fair review of the information required by DTR 4.2.8R, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the Company during the period, and any changes in the related party transactions described in the last Annual Report that could do so.

·      in light of the controls and review processes that are in place and bearing in mind the nature of the Company's business and assets, the Company has adequate resources to continue in operational existence for the foreseeable future.  Accordingly, the accounts continue to be prepared on the basis that the Company is a going concern.

On behalf of the Board

Richard M. Martin

Director

21 January 2015

Notes

1.  Accounting Policies

The unaudited interim results have been prepared on the basis of the accounting policies set out in the Company's statutory financial statements for the year ended 31 May 2014. These accounting policies are expected to be followed throughout the year ending 31 May 2015.

2.  Income

	Six months to 30 November 2014	Six months to 30 November 2013	Year to 31 May 2014
	£'000	£'000	£'000
UK dividends	637	617	1,252
Overseas dividends	348	336	702
Interest on fixed   interest securities	8	9	17
Total income	993	962	1,971

3.  Investment management and performance fee

    There have been no changes to the terms of the management and performance fee arrangements with F&C Investment Business Limited, which are set out in detail in the Annual Report and Accounts to 31 May 2014. 

    During the period, the Company has incurred investment management fees of £225,000, (30 November 2013: £207,000; 31 May 2014: £422,000) of which £114,000 is payable to F&C Investment Business Limited at the period end.  

    At 30 November 2014 the total return of the Income Portfolio (since 31 May 2013) and the Growth Portfolio (since launch) did not exceed that of the FTSE All-Share Index and a performance fee has not been recognised in either portfolio (30 November 2013: £nil - Income Portfolio and Growth Portfolio; 31 May 2014: £nil - Income Portfolio and Growth Portfolio).      

4.  Return per share

     The return per share for the six months to 30 November 2014 is as follows:

	Income Shares			Growth Shares
	Revenue	Capital	Total	Revenue	Capital	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Return attributable to   Portfolios	557	392	949	188	1,329	1,517
Transfer of net income from Growth to Income Portfolio	188	-	188	(188)	-	(188)
Transfer of capital from Income to Growth Portfolio	-	(188)	(188)	-	188	188
Return attributable to   shareholders	745	204	949	-	1,517	1,517
Return per share	2.68p	0.73p	3.41p	-	5.81p	5.81p
Weighted average number of shares in issue during the period	27,851,275			26,106,100

     The return per share for the comparative six months to 30 November 2013 is as follows:

	Income Shares			Growth Shares
	Revenue	Capital	Total	Revenue	Capital	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Return attributable to   shareholders	740	122	862	-	2,163	2,163
Return per share	2.76p	0.45p	3.21p	-	8.67p	8.67p
Weighted average number of shares in issue during the period	26,829,116			24,960,198

The return per share for the comparative year to 31 May 2014 is as follows:

	Income Shares			Growth Shares
	Revenue	Capital	Total	Revenue	Capital	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Return attributable to   shareholders	1,499	330	1,829	-	2,871	2,871
Return per share	5.56p	1.22p	6.78p	-	11.41p	11.41p
Weighted average number of shares in issue during the period	26,969,936			25,153,747

5.    Dividends

	Six months to 30 November 2014	Six months to 30 November 2013	Year to 31 May 2014
Dividends on Income Shares	£'000	£'000	£'000
Amounts recognised as distributions during the period:
In respect of the previous financial year:
- fourth interim of 1.5p (prior period: 1.3p) per share	416	346	346
In respect of the period under review:
- first interim of 1.15p (prior period: 1.1p) per share	318	296	296
- second interim (prior period: 1.1p per share)	-	-	296
- third interim (prior period: 1.1p per share)	-	-	297
	734	642	1,235

       A second interim dividend in respect of the year to 31 May 2015 of 1.15p per Income share was paid on 5 January 2015 to shareholders on the register on 19 December 2014. This amount has not been accrued in the results for the six months to 30 November 2014.

       For the financial year to 31 May 2014 interim dividends totalled 4.8p per Income share.

       The Growth shares do not carry an entitlement to receive dividends.

6.    Share capital

	Listed		Held in Treasury		In issue
	Number	£'000	Number	£'000	Number	£'000
Income shares of 10p each
Balance at 1 June 2014	27,514,936	2,751	-	-	27,514,936	2,751
Issued	700,000	70	-	-	700,000	70
Balance at 30 November 2014	28,214,936	2,821	-	-	28,214,936	2,821

During the period the Company issued 700,000 Income shares for net proceeds of £841,000 and resold out of treasury nil (30 November 2013: 250,000; 31 May 2014: 735,000) Income shares. At 30 November 2014 the Company held nil Income shares in treasury. 

	Listed		Held in Treasury		In issue
	Number	£'000	Number	£'000	Number	£'000
Growth shares of 10p each
Balance at 1 June 2014	27,404,843	2,740	(1,490,000)	(149)	25,914,843	2,591
Resold out of treasury	-	-	200,000	20	200,000	20
Balance at 30 November 2014	27,404,843	2,740	(1,290,000)	(129)	26,114,843	2,611
Total	55,619,779	5,561	(1,290,000)	(129)	54,329,779	5,432

  During the period the Company bought back nil (30 November 2013: 270,000; 31 May 2014: 270,000) Growth shares to be held in treasury and resold out of treasury 200,000 (30 November 2013: 175,000; 31 May 2014: 1,175,000) Growth shares receiving net proceeds of £278,000. At 30 November 2014 the Company held 1,290,000 Growth shares in treasury. 

7.    Net asset value per share

	30 November 2014	30 November 2013	31 May 2014
Income shares
Net asset value per share	120.62p	118.49p	119.85p
Net assets attributable at end of   period - £'000s	34,034	31,850	32,978
Shares in issue at end of period - number	28,214,936	26,879,936	27,514,936
Growth shares
Net asset value per share	142.24p	133.51p	136.41p
Net assets attributable at end of   period - £'000s	37,145	33,265	35,350
Shares in issue at end of period - number	26,114,843	24,914,843	25,914,843

8.    Earnings for the six months to 30 November 2014 should not be taken as a guide to the results of the full year to 31 May 2015.

9.    Tax

       The effective revenue tax rate for the period to 30 November 2014 is 0.7 per cent (30 November 2013: 0.5 per cent; 31 May 2014: 0.3 per cent).  This is lower than the rate of corporation tax for small companies due to the level of non-taxable dividend income.

10.   Bank borrowing

       The Company has an unsecured borrowing facility with its custodian JPMorgan Chase Bank ("JPM").  The facility allows up to 10% of the value of the Company's assets to be borrowed and is repayable on demand. At 30 November 2014 £208,000 (30 November 2013: £1,159,000; 31 May 2014: £467,000) had been drawn down in the Income Portfolio and £720,000 (30 November 2013: £380,000; 31 May 2014: £nil) in the Growth Portfolio.  After the period end, the Company entered into a £5 million unsecured revolving credit facility with The Royal Bank of Scotland plc to be used in place of the JPM facility.

11.   Results

       The Company's auditors, Ernst & Young LLP have not audited or reviewed the Interim Report to 30 November 2014 pursuant to the Auditing Practices Board guidance on 'Review of Interim Financial Information'.  These are not full statutory accounts in terms of Section 434 of the Companies Act 2006 and are unaudited.  Statutory accounts for the year ended 31 May 2014, which received an unqualified audit report and which did not contain a statement under Section 498 of the Companies Act 2006, have been lodged with the Registrar of Companies.  The abridged financial statements included for the year ended 31 May 2014 are an extract from those accounts.  No full statutory accounts in respect of any period after 31 May 2014 have been reported on by the Company's auditors or delivered to the Registrar of Companies. The Interim Report will be posted to shareholders shortly and is available on the website: www.fcmanagedportfolio.co.uk 

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

 

END

 

 

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