Interim Management Statement

RNS Number : 3499P

F&C Managed Portfolio Trust PLC

30 September 2011

 



To:      RNS

Date:  30 September 2011

From: F&C Managed Portfolio Trust plc

Interim Management Statement

For the quarter ended 31 August 2011

Company summary

The Company invests in a selection of listed investment companies that have underlying exposure across a range of geographic regions and sectors. This assists in diversifying the overall portfolio investment risk.

The Company's investments are managed in two separate portfolios; the Income Portfolio and the Growth Portfolio, to which the Income shares and the Growth shares are respectively entitled.  

Investment objective

Income Portfolio

The objective for the Income Portfolio is to provide shareholders with an attractive level of income together with the potential for income and capital growth from a diversified portfolio of investment company shares.

Growth Portfolio

The objective for the Growth Portfolio is to provide shareholders with capital growth from a diversified portfolio of investment company shares.

The benchmark index for both the Income Portfolio and the Growth Portfolio is the FTSE All-Share Index.

Performance summary

	Capital return				Total return 1
	As at 31 August 2011	As at 31 May 2011	Movement %		Qtr end 31 August 2011	Since launch 2 %
Income shares
Total net assets	£21.1m	£23.2m	-9.3%
NAV per share	93.54p	103.09p	-9.3%		-8.0%	+12.3%
Share price	93.0p	103.0p	-9.7%		-8.5%	+9.3%
Discount	(0.6)%	(0.1)%	n/a
Growth shares
Total net assets	£18.8m	£20.7m	-9.0%
NAV per share	97.80p	107.52p	-9.0%		-9.0%	-0.2%
Share price	98.0p	109.0p	-10.1%		-10.1%	-2.0%
Premium	0.2%	1.4%	n/a
FTSE All-Share Index Total return					-9.4%	+3.1%

Source: F&C Investment Business Limited, Datastream.

¹ All total returns are based on dividends re-invested.

² The Company was launched on 16 April 2008.

Review of the period 

Equity markets globally experienced a sharp setback during the period under review. The cause was steadily deteriorating macro economic data from most developed economies. The trigger was weak employment figures in the US followed by poor manufacturing survey data and then a host of similar negative indicators coming from Europe, for once including the previously strong performing German economy. Fear of recession led equity markets to move sharply lower and as with July there was a continued flight to safety with the likes of gold, the Japanese yen and the Swiss franc being seen as safe havens.

NAV performance of both the Income and Growth Portfolios was slightly ahead of the FTSE All-Share Index, albeit still noticeably down. Not unexpectedly the Income Portfolio proved more resilient, helped by holdings in Aberdeen Asian Income Fund (0.0%), 3i Infrastructure (-0.8%) and Schroder Oriental Income Fund (-2.3%). These individual performances should be set against the FTSE All-Share Index which declined by 9.4% over the same period.

Historically when mainstream equity indices experience a sharp decline Investment Companies generally do worse due to levels of gearing and widening discounts. However this has not happened this time for a number of reasons:

-  the FTSE Index was led lower by banks and miners which are two large sectors that the investment company sector is in general underweight (especially banks),

-  discounts (excluding private equity, hedge funds and direct property funds) remained broadly unchanged over the period moving only from 7.0% to 7.1%. In this regard, income biased sectors held up well with some trusts moving to premiums as asset values fell but prices remained resilient. So far in 2011 the range has been between 6% and 9%.

Dividends

A fourth interim dividend of 1.4 pence per Income share, in respect of the financial year to 31 May 2011, was paid on 8 July 2011.  For the financial year to 31 May 2011, total dividends of 4.4p per Income share were at the same rate as in the previous financial year to 31 May 2010.

On 9 September 2011, a first interim dividend of 1.0 pence per Income share was declared in respect of the financial year to 31 May 2012.  This dividend is payable on 7 October 2011.

Share buy backs and issues

During the quarter to 31 August 2011, the Company has not issued or bought back Income shares or Growth shares. At 31 August 2011, the Company held no Income shares and 335,000 Growth shares in treasury.  The total number of shares in issue with voting rights at 31 August 2011 was 22,557,192 Income shares and 19,225,567 Growth shares.

Top Ten Holdings at 31 August 2011

Income Portfolio

31 August 2011	31 May 2011	Company	% of net assets of Income Portfolio
1	1	British Assets Trust	5.7
2	2	Murray International Trust	5.7
3	3	Law Debenture Corporation	4.9
4	6	Aberdeen Asian Income Fund	4.9
5	5	The Merchants Trust	4.3
6	7	Invesco Leveraged High Yield Fund	4.3
7	8	Perpetual Income & Growth Investment Trust	4.2
8	4	European Assets Trust	4.2
9	12	Schroder Oriental Income Fund	4.1
10	13	Lowland Investment Company	4.0
			46.3

Growth Portfolio

31 August 2011	31 May 2011	Company	% of net assets of Growth Portfolio
1	1	British Empire Securities & General Trust	5.0
2	2	Perpetual Income & Growth Investment Trust	4.8
3	3	Templeton Emerging Markets Investment Trust	4.7
4	4	TR Property Investment Trust - Ordinary    shares	4.1
5	6	BlackRock World Mining	3.8
6	5	The Mercantile Investment Trust	3.7
7	7	Lowland Investment Company	3.5
8	8	RCM Technology Trust	3.4
9	10	Murray International Trust	3.4
10	9	Scottish Mortgage Investment Trust	3.3
			39.7

Following further equity market declines, the NAV per Income share and NAV per Growth share at the close of business on 29 September 2011 had fallen to 88.38p and 92.43p respectively. The Board is not aware of any other significant events or transactions that have occurred between 31 August 2011 and the date of publication of this statement that would have a material impact on the financial position of the Company.

Daily and key information

Further information regarding the Company, including daily net asset values published since the end of the period and monthly factsheets, can be found on the Company's website at www.fcmanagedportfolio.co.uk or on the website www.fandc.com.

This interim management statement has been prepared solely to provide information to meet the requirements of the UK Listing Authority's Disclosure and Transparency Rules.

For further information please contact:

Ian Ridge,

For F&C Investment Business Limited, Company Secretary Tel: [phone]

 

END

 

 

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