Half Yearly Report

RNS Number : 2022N

F&C Managed Portfolio Trust PLC

27 January 2016

 

Date:  27 January 2016

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 2015.

Chairman's Statement

Highlights

·      Net asset value total return of -5.1% for the Income shares and -2.4% for the Growth shares compared to the FTSE All-Share Index of -6.4%

·      £17.3 million raised from the issuance of new shares

·      Net assets exceed £100 million for the first time

·      First two interim dividends increased to 1.2 pence per Income share

·      Income share dividend yield of 4.3% at 30 November 2015

Investment performance

For the six months to 30 November 2015, the net asset value (NAV) total return was -5.1% for the Income shares and -2.4% for the Growth shares. The total return for the benchmark index for both Portfolios, the FTSE All-Share Index, was -6.4% while the FTSE Equity Investment Instruments Index, returned -3.5%.

This was a difficult period for global equity markets. As an illustration, for the first four months of the Interim period, the FTSE All-Share Index declined by over 11% (in total return terms). Acute anxiety amongst investors over the prospects for growth globally, and the Chinese economy in particular, was the cause of the sell off.

The other notable feature has been further weakness in the oil price which started the period at $68 and had fallen to $30 at the time of writing. Major commodities like copper and iron ore have also experienced prolonged price weakness with supply in excess of demand. This has been reflected in shares in companies within the energy and commodity sectors which have continued to underperform.

Against this background it is encouraging that both portfolios outperformed the FTSE All-Share Index, maintaining their record of strong performance. However we are acutely aware that investors "cannot eat relative performance". The key drivers of the performance of the Growth Portfolio were holdings exposed to UK mid and smaller companies and also holdings that specialise in the technology sector. In the case of the former, a benign background of decent levels of growth in the domestic economy and relatively attractive ratings of smaller companies were behind strong returns from; River and Mercantile UK Micro Cap which gained 14%, Diverse Income Trust which gained 10% and Miton UK MicroCap Trust which was ahead by 7%. In the technology sector, very strong results from large US technology companies helped Polar Capital Technology Trust to a 5% rise and the Allianz Technology Trust to a 1% gain.

In the Income Portfolio, where it is harder to gain the same exposure to the mid and small cap trusts due to their low yield, there are still some holdings which were beneficiaries. Standard Life UK Smaller Companies Trust Convertible gained 11% whilst Mercantile Investment Trust, the UK mid cap specialist was ahead by 4%. Other notable performers were the Edinburgh Investment Trust which rose 3% due to strong stock selection and 3i Infrastructure which also gained 3% following the payment of a special dividend.

The underperformers in both portfolios were focussed on the Asia Pacific and Emerging Markets sectors where the concerns over growth prospects were most acute. Murray International, which is a holding in both portfolios fell 19% whilst in the Growth Portfolio, Genesis Emerging Markets lost 14% and Blackrock Frontiers Trust was down 10%. Similarly in the Income Portfolio JPMorgan Global Emerging Markets Income Trust declined 23%, Aberdeen Asian Income Fund fell 20% and Henderson Far East Income was 17% lower. One encouraging note was that all of these trusts have maintained their dividends.

Growing the Company

In September the Board announced that the Company had been selected as the rollover option for the winding up of The Cayenne Trust.  Like F&C Managed Portfolio Trust; The Cayenne Trust invested in investment trusts and other closed ended funds and the rollover option allowed those shareholders who wished to remain invested in a similar investment company to elect to receive Income shares and/or Growth shares in our Company.  On 30 October 2015, we published a new Prospectus in order to extend the life of the existing one and to facilitate anticipated demand from The Cayenne Trust.

We were pleased to announce that we acquired approximately £12.9m of cash from The Cayenne Trust which was received on 2 December 2015.  Around £7.0m related to elections for Income shares and £5.9m for Growth shares.  Under the terms of the rollover these shares were issued at a premium to NAV of approximately 0.85%. I would like to welcome these new shareholders and thank them for their support.

Revenue and dividends

The Company's net revenue return for the six month period was £1,007,000 which is equivalent to 2.83p per Income share (compared to 2.68p per Income share for the corresponding period in 2014). Income shares are entitled to all the dividends paid by the Company.

In line with our objective of increasing dividends the Company has declared a first and second interim dividend in respect of the year to 31 May 2016, each of 1.2p per Income share (1.15p per share in the prior periods). The second interim dividend was paid to Income shareholders on 4 January 2016, after the period end.

The Board intends to pay three interim dividends, each of 1.2p 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 5.0p per Income share paid in the prior year represents a yield on the Income share price at 30 November 2015 of 4.3%.

Borrowing

After the period end, the Company renewed its 1 year £5 million unsecured revolving credit facility with The Royal Bank of Scotland plc. Borrowings are not normally expected to exceed 20% of the total assets of the relevant Portfolio and at 30 November 2015 total £1.5 million in the Income Portfolio and £1.4 million in the Growth Portfolio. However, having now received the cash from The Cayenne Trust we are in a net cash position of approximately 4% in the Income Portfolio and 5.5% 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%, by buying back shares from time to time if necessary. In practice we have maintained both shares at a small premium in recent years. During the six months to 30 November 2015 the average premium was 1.7% for the Income shares and 1.3% for the Growth shares. At 30 November 2015, the Income shares stood at a premium of 1.0% to NAV and the Growth shares at a premium of 0.5%.

 In addition to the issuance of shares to Cayenne Trust shareholders, demand for the Company's shares during the period meant that we were able to issue 1,825,000 new Income shares and 1,550,000 new Growth shares from our block listing authority. These shares were sold at average premiums to NAV of 1.4% and 1.5% respectively.

Outlook

The long heralded increase in US interest rates took place in mid-December. The trajectory of the interest rate cycle will not be steep and the eventual peak, in all likelihood, modest. The important point is the change of direction. The Federal Reserve wishes to gradually tighten monetary policy. The UK is some way behind and may not begin the same process until later this calendar year or even into 2017. Whilst the European Central Bank and the Bank of Japan are still in the midst of quantitative easing there is a sense that accommodative monetary policy may not offer quite the same level of support to global equity markets that it has over the last few years. That is not to say that equity markets will move into a "bear phase" rather that the driver of positive returns from equity markets may have to be different. The key from here will be earnings and dividend growth and if individual companies or sectors can achieve this then even though valuations are elevated that should not be a barrier to positive returns.

Though there is potential downside risk to markets should concerns over global growth re-emerge, on balance, equities still offer the best prospects of positive returns. Against this background the proceeds from the Cayenne Trust corporate action will be invested steadily and mainly into existing holdings.

Richard M Martin

Chairman

27 January 2016

Unaudited Condensed Income Statement

Six months to 30 November 2015

	Notes	Revenue	Capital	Total
		£'000	£'000	£'000
Losses on investments Foreign exchange gains		-             -	(4,144)             3	(4,144) 3
Income	2	1,298	-	1,298
Investment management and performance fee	3	(85)	(232)	(317)
Other expenses		(192)	-	(192)
Return on ordinary activities before finance           costs and tax		1,021	(4,373)	(3,352)
Finance costs		(6)	(12)	(18)
Return on ordinary activities before tax		1,015	(4,385)	(3,370)
Tax on ordinary activities		(8)	-	(8)
Return attributable to shareholders		1,007	(4,385)	(3,378)
Return per Income share (pence)	5	2.83p	(9.31)p	(6.48)p
Return per Growth share (pence)	5	-	(3.60)p	(3.60)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 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 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)	5	2.68p	0.73p	3.41p
Return per Growth share (pence)	5	-	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.

Condensed Income Statement (audited)

Year to 31 May 2015

	Notes	Revenue	Capital	Total
		£'000	£'000	£'000
Gains on investments Foreign exchange losses		- -	6,908 (4)	6,908 (4)
Income	2	2,260	-	2,260
Investment management and performance fee	3	(147)	(349)	(496)
Other expenses		(355)	-	(355)
Return on ordinary activities before finance costs and tax		1,758	6,555	8,313
Finance costs		(13)	(27)	(40)
Return on ordinary activities before tax		1,745	6,528	8,273
Tax on ordinary activities		(8)	-	(8)
Return attributable to shareholders		1,737	6,528	8,265
Return per Income share (pence)	5	5.87p	5.95p	11.82p
Return per Growth share (pence)	5	-	17.80p	17.80p

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 2015

	Notes	Income Shares	Growth Shares	Total
		£'000	£'000	£'000
Non-current assets
Investments	4	43,111	45,745	88,856
Current assets
Debtors Cash at bank and on deposit		7,139 1,123	5,919 1,432	13,058 2,555
		8,262	7,351	15,613
Creditors
Amounts falling due within one year		(1,673)	(1,613)	(3,286)
Net current assets		6,589	5,738	12,327
Net assets		49,700	51,483	101,183
Capital and reserves
Called-up share capital	7	4,254	3,428	7,682
Share premium		21,690	18,549	40,239
Capital redemption reserve		-	182	182
Special reserve		19,380	17,197	36,577
Capital reserves		3,009	12,127	15,136
Revenue reserve		1,367	-	1,367
Shareholders' Funds		49,700	51,483	101,183
Net asset value per share (pence)	8	116.84p	150.20p

Unaudited Condensed Balance Sheet

As at 30 November 2014

	Notes	Income Shares	Growth Shares	Total
		£'000	£'000	£'000
Non-current assets
Investments		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		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)	8	120.62p	142.24p

Condensed Balance Sheet (audited)

As at 31 May 2015

		Income Shares	Growth Shares	Total
	Notes	£'000	£'000	£'000
Non-current assets
Investments	4	43,964	45,012	88,976
Current assets
Debtors		110	44	154
Cash at bank and on deposit		1,388	1,063	2,451
		1,498	1,107	2,605
Creditors
Amounts falling due within one year		(1,623)	(1,728)	(3,351)
Net current liabilities		(125)	(621)	(746)
Net assets		43,839	44,391	88,230
Capital and reserves
Called-up share capital		3,469	2,884	6,353
Share premium		13,346	10,927	24,273
Capital redemption reserve		-	182	182
Special reserve		19,380	17,197	36,577
Capital reserves		6,320	13,201	19,521
Revenue reserve		1,324	-	1,324
Shareholders' Funds		43,839	44,391	88,230
Net asset value per share (pence)	8	126.37p	153.92p

Unaudited Condensed Statement of Cash Flows

Six months to 30 November 2015

	Notes	Income Shares		Growth Shares	Total
		£'000		£'000	£'000
Net cash inflow from operating activities	9	706		62	768
Investing activities
Purchases of investments		(3,371)		(3,291)	(6,662)
Sales of investments		1,199		1,237	2,436
Cash flows from investing activities		(2,172)		(2,054)	(4,226)
Cash flows before financing activities		(1,466)		(1,992)	(3,458)
Financing activities
Equity dividends paid		(964)		-	(964)
Net proceeds from issuance of new shares		2,165		2,361	4,526
Cash flows from financing activities		1,201		2,361	3,562
Net movement in cash and cash equivalents		(265)		369	104
Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period		1,388 1,123		1,063 1,432	2,451 2,555
Represented by: Cash at bank and short-term deposits		1,123		1,432	2,555

Unaudited Condensed Statement of Cash Flows (Restated*)

Six months to 30 November 2014

	Notes		Income Shares	Growth Shares	Total
			£'000	£'000	£'000
Net cash inflow from operating activities	9		456	91	547
Investing activities
Purchases of investments		(1,817)		(2,299)	(4,116)
Sales of investments		1,513		869	2,382
Cash flows from investing activities		(304)		(1,430)	(1,734)
Cash flows before financing activities		152		(1,339)	(1,187)
Financing activities
Equity dividends paid		(734)		-	(734)
Net proceeds from issuance of new shares Sale of shares from treasury		841 -		- 278	841 278
Cash flows from financing activities		107		278	385
Net movement in cash and cash equivalents		259		(1,061)	(802)
Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period		(467) (208)		341 (720)	(126) (928)
Represented by: (Overdrafts)/cash at bank and short-term deposits		(208)		(720)	(928)

* Restated to comply with FRS 102 on Statement of Cash Flows (see note 1)

Condensed Statement of Cash Flows (Restated*)

Year to 31 May 2015

	Notes			Income Shares		Growth Shares	Total
			£'000			£'000	£'000
Net cash inflow from operating activities	9		1,130		186		1,316
Investing activities
Purchases of investments			(9,748)		(6,963)		(16,711)
Sales of investments			1,609		1,826		3,435
Cash flows from investing activities			(8,139)		(5,137)		(13,276)
Cash flows before financing activities			(7,009)		(4,951)		(11,960)
Financing activities
Equity dividends paid			(1,388)		-		(1,388)
Net proceeds from issue of new shares Sale of shares from treasury			8,752 -		2,115 2,158		10,867 2,158
Loan drawn down			1,500		1,400		2,900
Cash flows from financing activities			8,864		5,673		14,537
Net movement in cash and cash equivalents			1,855		722		2,577
Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period			(467) 1,388		341 1,063		(126) 2,451
Represented by: Cash at bank and short-term deposits			1,388		1,063		2,451

* Restated to comply with FRS 102 on Statement of Cash Flows (see note 1)

Unaudited Condensed Statement of Changes in Equity

Six months to 30 November 2015

Notes		Income Shares	Growth Shares	Total
		£'000	£'000	£'000
Opening shareholders' funds Increase in share capital in issue		43,839 9,129	44,391 8,166	88,230 17,295
Transfer of net income from Growth shares to   Income shares		196	(196)	-
Transfer of capital from Income shares to Growth   shares		(196)	196	-
Dividends paid	6	(964)	-	(964)
Return attributable to shareholders		(2,304)	(1,074)	(3,378)
Closing shareholders' funds		49,700	51,483	101,183

Unaudited Condensed Statement of Changes in Equity

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	6	(734)	-	(734)
Return attributable to shareholders		949	1,517	2,466
Closing shareholders' funds		34,034	37,145	71,179

Condensed Statement of Changes in Equity (audited)

Year to 31 May 2015

		Income Shares	Growth Shares	Total
		£'000	£'000	£'000
Opening shareholders' funds Increase in share capital in issue		32,978 8,752	35,350            2,115	68,328 10,867
Shares sold from treasury		-	2,158	2,158
Transfer of net income from Growth shares to   Income shares		393	(393)	-
Transfer of capital from Income shares to Growth   shares		(393)	393	-
Dividends paid		(1,388)	-	(1,388)
Return attributable to shareholders		3,497	4,768	8,265
Closing shareholders' funds		43,839	44,391	88,230

 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 2015 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 applicable UK Accounting Standards 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 (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.

On behalf of the Board

Richard M. Martin

Director

27 January 2016

Notes

1.  Accounting Policies

For the period ended 30 November 2015 (and the year ending 31 May 2016), the Company is applying, for the first time, FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland, 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 ("SORP") "Financial Statements of Investment Trust Companies and Venture Capital Trusts" issued by the AIC in November 2014.

As a result of the first time adoption of New UK GAAP and the revised SORP, comparative amounts and presentation formats have been amended where required. The net return attributable to shareholders and total shareholders' funds remain unchanged 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 May 2015. However, the references to prior individual FRSs should now be taken to reference FRS 102.

2.  Income

	Six months to 30 November 2015	Six months to 30 November 2014	Year to 31 May 2015
	£'000	£'000	£'000
UK dividends	741	637	1,351
Overseas dividends	541	348	889
Interest on fixed   interest securities Deposit income	9 7	8 -	16 4
Total income	1,298	993	2,260

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 2015. 

    During the period, the Company has incurred investment management fees of £287,000, (30 November 2014: £225,000; 31 May 2015: £496,000) of which £145,000 is payable to F&C Investment Business Limited at the period end.  

    At 30 November 2015 the total return of the Income Portfolio for the period since 31 May 2013 (being the date a performance fee was last payable) did not exceed that of the FTSE All-Share Index and a performance fee has not been recognised. At 30 November 2015 the total return of the Growth portfolio since launch did exceed that of the FTSE All-Share Index and a performance fee of £30,000 has been accrued in the Growth Portfolio (30 November 2014: £nil - Income Portfolio and Growth Portfolio; 31 May 2015: £nil - Income Portfolio and Growth Portfolio).                

4.  Investments

	Income Shares Level A* £'000	Growth Shares Level A* £'000	Total £'000
Cost at 31 May 2015 Gains at 31 May 2015	32,905 11,059	30,631 14,381	63,536 25,440
Valuation at 31 May 2015 Movement in the period: Purchases at cost Sales proceeds (Losses)/gains on investments sold in the period Losses on investments held at period end	43,964 3,374 (1,199) (317) (2,711)	45,012 3,086 (1,237) 128 (1,244)	88,976 6,460 (2,436) (189) (3,955)
Valuation of investments held at 30 November 2015	43,111	45,745	88,856

	Income Shares Level A* £'000	Growth Shares Level A* £'000	Total £'000
Cost at 30 November 2015 Gains at 30 November 2015	34,763 8,348	32,608 13,137	67,371 21,485
Valuation at 30 November 2015	43,111	45,745	88,856

* Fair value hierarchy

The Company's investments as disclosed in the balance sheet are valued at fair value. The fair value as at the reporting date has been estimated using the following fair value hierarchy:

Level (A) - Quoted prices for identical instruments in active markets

Level (B) - Prices of a recent transaction for identical instruments

Level (C) - Valuation techniques that use:

                    (i) Observable market data; or

                      (ii) Non-observable market data.

There are no investments held which are valued in accordance with levels B, C(i) or C(ii).

5.  Return per share

     The return per share for the six months to 30 November 2015 is as follows:

	Income Shares			Growth Shares
	Revenue	Capital	Total	Revenue	Capital	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Return attributable to   Portfolios	811	(3,115)	(2,304)	196	(1,270)	(1,074)
Transfer of net income from Growth to Income Portfolio	196	-	196	(196)	-	(196)
Transfer of capital from Income to Growth Portfolio	-	(196)	(196)	-	196	196
Return attributable to   shareholders	1,007	(3,311)	(2,304)	-	(1,074)	(1,074)
Return per share	2.83p	(9.31)p	(6.48)p	-	(3.60)p	(3.60)p
Weighted average number of shares in issue during the period	35,559,855			29,836,768

The return per share for the comparative 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   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 year to 31 May 2015 is as follows:

	Income Shares			Growth Shares
	Revenue	Capital	Total	Revenue	Capital	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Return attributable to   shareholders	1,737	1,760	3,497	-	4,768	4,768
Return per share	5.87p	5.95p	11.82p	-	17.80p	17.80p
Weighted average number of shares in issue during the period	29,576,498			26,785,117

6.    Dividends

	Six months to 30 November 2015	Six months to 30 November 2014	Year to 31 May 2015
Dividends on Income Shares	£'000	£'000	£'000
Amounts recognised as distributions during the period:
In respect of the previous financial year:
- fourth interim of 1.55p (prior period: 1.5p) per share	538	416	416
In respect of the period under review:
- first interim of 1.20p (prior period: 1.15p) per share	426	318	318
- second interim (prior period: 1.15p per share)	-	-	325
- third interim (prior period: 1.15p per share)	-	-	329
	964	734	1,388

       A second interim dividend in respect of the year to 31 May 2016 of 1.20p per Income share was paid on 4 January 2016 to shareholders on the register on 20 November 2015. This amount has not been accrued in the results for the six months to 30 November 2015.

       For the financial year to 31 May 2015 interim dividends totalled 5.0p per Income share.

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

7.    Share capital

	Listed		Held in Treasury		In issue
	Number	£'000	Number	£'000	Number	£'000
Income shares of 10p each
Balance at 1 June 2015	34,689,936	3,469	-	-	34,689,936	3,469
Issued	7,845,099	785	-	-	7,845,099	785
Balance at 30 November 2015	42,535,035	4,254	-	-	42,535,035	4,254

During the period the Company issued 7,845,099 Income shares for net proceeds of £9,129,000 of which £7,023,000 is held as a debtor as at 30 November 2015. At 30 November 2015 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 2015	28,839,843	2,884	-	-	28,839,843	2,884
Issued	5,437,194	544	-	-	5,437,194	544
Balance at 30 November 2015	34,277,037	3,428	-	-	34,277,037	3,428
Total	76,812,072	7,682	-	-	76,812,072	7,682

  During the period the Company issued 5,437,194 Growth shares for net proceeds of £8,166,000 of which £5,870,000 is held as a debtor as at 30 November 2015. At 30 November 2014 the Company held nil Growth shares in treasury. 

8.     Net asset value per share

	30 November 2015	30 November 2014	31 May 2015
Income shares
Net asset value per share	116.84p	120.62p	126.37p
Net assets attributable at end of   period - £'000s	49,700	34,034	43,839
Shares in issue at end of period - number	42,535,035	28,214,936	34,689,936
Growth shares
Net asset value per share	150.20p	142.24p	153.92p
Net assets attributable at end of   period - £'000s	51,483	37,145	44,391
Shares in issue at end of period - number	34,277,037	26,114,843	28,839,843

9.    Reconciliation of return on ordinary activities before tax to cash flows from operating activities

Six months to 30 November 2015	Income Shares £'000			Growth Shares £'000		Total £'000
Return on ordinary activities before tax Adjust for returns from non-operating activities:		(2,298)		(1,072)		(3,370)
Losses on investments Exchange gains			3,028                 1,116                                  (3)                             -			4,144            (3)
Return from operating activities Increase in prepayments and accrued income (Decrease)/increase in creditors Withholding tax suffered			727       (6)       (9)      (6)		44            771              (5)           (11) 25                            16 (2)                            (8)
Net cash flows from operating activities			706		62           768

Six months to 30 November 2014	Income Shares £'000			Growth Shares £'000		Total £'000
Return on ordinary activities before tax Adjust for returns from non-operating activities:		952		1,519		2,471
Gains on investments Exchange losses			(461)               (1,426)                                    2                          -			(1,887)                     2
Return from operating activities Increase in prepayments and accrued income (Decrease)/increase in creditors Withholding tax suffered			493       (26)       (8)       (3)		93            586             5            (21) (5)           (13) (2)                           (5)
Net cash flows from operating activities			456		91           547

Year ended 31 May 2015	Income Shares £'000			Growth Shares £'000		Total £'000
Return on ordinary activities before tax Adjust for returns from non-operating activities:		3,503		4,770		8,273
Gains on investments Exchange losses			(2,315)            (4,593)                                     4                       -			(6,908)              4
Return from operating activities (Increase)/decrease in prepayments and accrued income Increase in creditors Withholding tax suffered			1,192         (69)         13         (6)		177        1,369               5            (64)  6                            19 (2)                            (8)
Net cash flows from operating activities			1,130		186        1,316

10.  Earnings for the six months to 30 November 2015 should not be taken as a guide to the results of the full year to 31 May 2016.

11.   Tax

       The effective revenue tax rate for the period to 30 November 2015 is 0.8 per cent (30 November 2014: 0.7 per cent; 31 May 2015: 0.5 per cent).  This is lower than the rate of corporation tax for small companies due to the level of non-taxable dividend income.

12.   Bank borrowing

       The Company has a one year £5 million unsecured revolving credit facility ("RCF") agreement with The Royal Bank of Scotland plc which was renewed after the period end, on 10 December 2015. £2.9 million of the RCF was drawn down at 30 November 2015 (£1.5 million was drawn down in the Income Portfolio and £1.4 million was drawn down in the Growth Portfolio). The interest rates on amounts drawn down are variable based on LIBOR plus a margin and a non-utilisation fee is payable on undrawn amounts.

13.   Going concern

       The Company's investment objective and policy is subject to regular Board monitoring processes and is designed to ensure that the Company is invested principally in listed securities. The Company retains title to all assets held by the Custodian. Cash is only held with banks approved and regularly reviewed by the Manager.

       The Directors believe in light of the controls and review processes and bearing in mind the nature of the Company's business and assets and revenue and expenditure projections, that the Company has adequate resources to continue in operational existence within its stated investment policy for a period of at least twelve months commencing from the date of this report. Accordingly, the financial statements have been drawn up on the basis that the Company is a going concern.

14.   Results

       The Company's auditors, Ernst & Young LLP have not audited or reviewed the Interim Report to 30 November 2015 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 2015, 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 2015 are an extract from those accounts.  No full statutory accounts in respect of any period after 31 May 2015 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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