Half Yearly Report

RNS Number : 7750S

Hansa Trust PLC

25 November 2011

 



HANSA TRUST PLC

HALF-YEARLY REPORT For the six months to 30 September 2011

INVESTMENT POLICY AND BENCHMARK

To achieve growth of shareholder value, Hansa Trust PLC invests in a portfolio of special situations, where individual holdings or specific sectors may constitute a significant proportion of the portfolio or that of the equity of the companies concerned. This investment approach may produce returns which are not replicated by movements in any market index. Performance is measured against an absolute benchmark derived from the three-year average rolling rate of return of a five year UK government bond, plus two percent with interest being re-invested semi-annually. Investments are intended to add value over the medium to longer term through a non-market correlated, conviction based investment style.

STATISTICS

	30 September 2011	31 March 2011	% change
Shareholders' Funds	£260.1m	£264.1m	(1.5)
Net Asset Value (NAV) per share
Opening NAV	1,100.5p	895.9p	-
Dividends	-	(3.5p)	-
Revenue and capital return	(16.7p)	208.1p	-
Closing NAV	1,083.8p	1,100.5p	(1.5)
Performance Benchmark	2.3%	5.3%	-
Ordinary Share Price	882.5p	951.0p	(7.2)
'A' non-voting Ordinary Share Price	885.0p	930.0p	(4.8)
FTSE All‑Share Index	2,654	3,068	(13.5)
Discount
Ordinary shares	18.6%	13.6%	-
'A' non-voting Ordinary shares	18.3%	15.5%	-
Total Return (Dividends Reinvested)
Ordinary Shares	(7.2%)	25.6%	-
'A' non‑voting Ordinary shares	(4.8%)	24.4%	-
FTSE All‑Share Index Total Return Index	(11.7%)	9.4%	-

COMPANY REGISTRATION AND NUMBER

The Company is registered in England and its number is 126107.

NET ASSET VALUE

	6 months	1 year	3 years	5 years	10 years
Net Asset Value - dividends reinvested	(1.5%)	6.9%	40.4%	45.8%	272.3%
Benchmark	2.3%	4.8%	17.0%	30.4%	64.6%

SHARE PRICE

	6 months	1 year	3 years	5 years	10 years
Ordinary Share - dividends reinvested	(7.2%)	5.7%	24.7%	11.9%	235.0%
'A' Ordinary Share - dividends reinvested	(4.8%)	8.3%	26.5%	19.8%	260.3%
FTSE All-Share	(11.7%)	(3.9%)	20.9%	6.2%	66.0%

The returns in the above charts have assumed that the dividends paid by the Company have been re-invested on the payment date, at the prevailing Net Asset Value and Share Price.

Past Performance is not a guide to future performance.   Source: Internal Management Information

THE ASSET VALUE (AT 30 SEPTEMBER 2011)

NAV: 1,083.8p per share (-16.7p; -1.5%)

Against a background of much troubled stock markets, our net asset value declined modestly over the six months to the 30 September 2011, falling by circa 17p (1.5%) to 1,083.8p per ordinary and ''A'' ordinary share. I say modestly because stock markets generally did a lot worse with declines ranging from circa 11% for Japan to circa 25% for France amongst the major global stock markets. Our own stock market, as measured by the FTSE All-share Index, fell by 13.5%, being one of the less bad global performers.

The world's stock markets are clearly linked to each other but each one has its own set of problems - be it those European bourses with their banking and sovereign debt problems, the US and the UK stock markets with their economies struggling as their over-indebted consumers begin to repay their debts and the stock markets of the emerging market economies with their inflation.

The main driver behind the first half year's returns was the performance of our holding in Ocean Wilsons, the value of which rose by circa £12 million or 11.5% to £118 million. As John Alexander points out in his Investment Manager's Report (pages 7 to 14), the company continues to make excellent progress, with both revenues and profits rising in its half year to 30 June 2011. This is a particularly good performance against a background of weakness in the Brazilian stock market, which declined by 31% (in £ Sterling) over the last six months. Much as might be expected, given the dreadful state of stock markets, the rest of the portfolio lost some value, declining by circa £16 million or 10% to £142 million. John's report details the events within and the progress of the portfolio during the first half year and is, as always, a good read.

Returns earned over six months are of transitory interest and are soon forgotten. Nevertheless it is always disappointing to lose money, even if only a little over a short period of time. Our benchmark, against which we compare our returns, increased by 2.3%. The longer-term returns, however, are rather more encouraging. Even over the last twelve months - still a time period, which should be regarded as short-term - the net asset value has risen by a respectable (in the current circumstances) 6.5% (the benchmark increased by 4.8%) while over the last five years, which we regard as a proper measure of the long-term, the net asset value rose by 34.3% (the benchmark by 30.4%). For those interested in how the UK stock market performed, its FTSE All-share index fell by 7.4% and 13.0% respectively, demonstrating (amongst other things) that our absolute return benchmark is a better and a tougher one against which to compare long-term returns.

THE SHARE PRICES

Ordinary shares: 882.5p (-68.5p; -7.2%)

"A" Ordinary shares: 885.0p (-45.0p; -4.8%)

I am afraid that both the two share prices - of the ordinary and the ''A'' ordinary shares - fell as the discount at which they traded at in relation to the underlying net asset value per share rose. On top of the 1.5% decline emanating from the fall in the net asset value, the two share prices suffered a further 5.7% and 3.4% decline respectively as the discounts widened to 18.6% and 18.3%.

While I do not wish to sound complacent about the level of the discount, which is high relative to some other investment trusts' shares, I should point out that the main driver of returns over the long-term is the net asset value return. We think that, as long as we can produce good net asset value returns over the longer term, shareholders will enjoy good share price returns.

THE INTERIM DIVIDEND

Our Income Statement (on page 16) shows revenues from investments and other sources to be £4,688m and the revenue profit for the period to be £3,380m. The figures are much greater than those of the previous year (+56% and +306%) respectively because of the incidence of dividend payments received from Ocean Wilsons in the two previous years. On the back of these revenue results, the Board of Directors has declared an interim dividend of 3.5p per share (the same as that of a year ago) to be paid on 2 December 2011 to shareholders on the Register of Members on 18 November 2011.

PROSPECTS

Before making a few comments on the outlook and thence our prospects I should say, as I always do, that our prospects ultimately depend on ourselves. John Alexander has topped and tailed his report with some comment on the events that have transpired over the last six months and provided a view on what might happen in relation to the current crisis, the epicentre of which is in Europe.

It is, as we have said many times in our reports to shareholders, extremely difficult to forecast how the current crises are going to play out. In truth nobody really knows, least of all us. What we do know is that for various different reasons there are huge debt problems on both sides of the Atlantic Ocean. In Europe the debt has been caused by most governments living beyond their means - in part because they believed that membership of the Euro Club effectively underwrote their profligacy. The solution to the crisis will involve more than just writing off some Greek debt and may yet involve fiscal integration of the Eurozone, as John suggests. It may even be that they cannot be dealt with short of a breakup of the Eurozone. There is still a long way to go on this matter.

Outside Europe things appear to be calmer but that is only because the Euro crisis is hitting the headlines. America is as deeply in debt as most other countries once its federal government's debts and other long-term commitments, its individual states' debts, its consumer debt and its external debts are taken into consideration. It has the advantage and ability to print money internationally and is using it but it is surely a policy that could spark off a crisis at some point. Japan too has problems although it is sitting within the area of the world whose economy is most likely to grow over the foreseeable future.

Meanwhile Emerging Market countries - notably the BRIC ones - are having to deal with inflation. But by and large they are dealing with it, and, once brought under control, should be able to resume economic growth - even if not at quite the hectic rate of the last decade or so. While their economic growth will not deal with the debt problems of the industrialised countries, it will provide support to world trade and hence provide some help to the industrialised countries' economies.

In the UK we have similar debt problems to those of America. However our stock market is heavily exposed to the international economy and to the corporate profits that derive from it. So the revenues, profits and dividends of the many companies have prospects of growth emanating from their exposure to the growth areas of the global economy. Their shares can and should make good investments over the longer-term. In the shorter-term, however, it is anyone's guess as to what might happen. What seems reasonable to assume is that in the US, in Europe and in the UK their respective central banks will continue to print money; they appear to have no idea of what else to do. If so, stock markets may well do surprisingly well - just as they have done in the last two and a half years. Although many argue that stock markets are cheap, it is important to remember that cheap price earnings ratios do not drive markets - only money and confidence do. Periods of calm will support confidence and quantitative easing will provide the money. So stock markets may well surprise us - even if the solutions to our problems still seem a long way off.

Alex Hammond-Chambers

Chairman

4 November 2011

The Directors present their Report and Condensed Financial Statements for the six months to 30 September 2011.

THE BOARD'S OBJECTIVES

The Board's primary objective is to achieve growth of shareholders value over the medium to long‑term.

THE BOARD

Your Board consists of the following persons each of whom brings certain individual and complementary skills and experience to the Board's workings. Individual profiles for each member of the Board can be found in the Company's Annual Report and on our website.

Mr Hammond‑Chambers (Chairman)    Mr Salomon

Lord Borwick                                          Professor Wood

BUSINESS REVIEW FOR THE SIX MONTHS TO 30 SEPTEMBER 2011

The business review, which includes an indication of important events which have occurred within the six months to 30 September 2011, are covered in the Chairman's Statement and the Investment Manager's Report.

KEY RISKS FOR THE FINANCIAL YEAR TO 31 MARCH 2012

The key risks and uncertainties relating to the six months ending 30 September 2011 and for the six months to 31 March 2012 are covered in the Chairman's Statement and the Investment Manager's Report.

RELATED PARTY TRANSACTIONS

During the period, Hansa Capital Partners LLP charged investment management fees and company secretarial fees to the Company amounting to £847,543 (31 March 2011: £1,485,948). Amounts outstanding at 30 September 2011 were £124,994 (31 March 2011: £272,758).

THE BOARD'S RESPONSIBILITIES

The Board is charged by the shareholders with the responsibility for looking after the affairs of the Company. It involves the 'STEWARDSHIP' of the Company's assets and liabilities and 'THE PURSUIT OF GROWTH OF SHAREHOLDER VALUE'. Except for the items detailed below these responsibilities remain unchanged from those detailed in the last Annual Report.

The Directors confirm to the best of their knowledge that:

•    the condensed set of financial statements contained within the half-yearly financial report has been prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting' and on a going concern basis.

•    this Interim Management Report includes a fair review of the information required by 4.2.7R and 4.2.8R of the FSA's Disclosure and Transparency Rules.

The above Interim Management Report including the Responsibility Statement was approved by the Board on 4 November 2011 and was signed on its behalf by:

Alex Hammond-Chambers

Chairman

4 November 2010

The Investment Manager presents its report for the six months ended 30 September 2011.

BACKGROUND

Growth concerns have gone global. Fear in financial markets has seen a massive increase in volatility and eye-watering intra-day swings, as many global investors anticipate a sharp growth slowdown, if not a broad economic slump in the months ahead. Chinese growth is slowing, the US is flirting with recession as the Federal Reserve talks about "significant downside risk", and Europe is struggling with its solvency problems. A debt and growth crisis in the outer periphery of the Eurozone is breeding contagion in other member countries. Markets remain focussed on debt restructuring in Greece while politicians are focussed on debt rescheduling, as they try to shelter sovereign bondholders, chief amongst them the European banks, from taking losses on their holdings.
Banks are unnerved by counterparty risk, preferring to deposit cash at central banks than lend it on, and fears are starting to increase over an imminent funding crisis amongst European banks. The process of governing in the US and Eurozone appears to be running less well than ever, with political will in short supply as leaders look weak, hesitant and display a strong sense of disunity. Meanwhile companies are reluctant to invest their cash balances or take on debt against a backdrop of a more uncertain economic outlook, a fall in consumer confidence and a fundamental lack of demand across most advanced economies. Businesses will only invest if they feel confident; otherwise they would rather accumulate cash.

GENERAL BACKGROUND THOUGHTS

Sovereign debt and banking problems are a typical aftershock of any international financial crisis, just as anaemic growth with sustained high unemployment is par for the course over the extended duration of post financial recoveries. Expect the jobs market in the developed West to remain difficult.

Debt busts are deflationary and economic recoveries that follow financial recessions tend to be much weaker, slower and more erratic/uneven than those that follow non-financial recessions, as the necessary process of deleveraging drags on. Expect any recovery to be very long-haul and jagged in nature.

The developed economies have suffered the mother of all debt busts and they are buried in debt. Governments are way over-borrowed, and banks are trying to re-build their balance

sheets in a more harshly regulated world and are lending less. Meanwhile consumers in the developed world are still in the early stages of an unprecedented process of retrenchment after a spending binge that resulted in record levels of household debt and very low savings. Ready availability of credit and ever rising property prices are a thing of the past. An extended period of household retrenchment lies ahead in the West as consumers reduce their debt levels and save for the future, at a time when incomes are lagging rising inflation, and household bills and levels of taxation are rising.

The global economy moves forward as a two speed jagged/stalling recovery. Sluggish growth or 'possibly worse' and very low interest rates in the developed world coupled with corrosion in the Eurozone. The lack of employment and income growth and continued tight credit conditions are stalling the business cycle, leading to austerity in the West. In comparison, much faster growth in developing markets coupled with higher inflation and monetary policy tightening. Good times in the East.

The corporate sector is currently in good shape, with repaired and strengthened balance sheets, good top line growth in developing markets, depressed wage inflation in developed markets, and the benefits that could come from an increase in productivity; improving capital expenditure. The big question is have we seen the peak in profitability, and the verdict is out.

Corporate sector is likely to be a net buyer of equities, both through cash financed M&A activity, as well as share buybacks.

Asset prices fluctuate much more than fundamentals, as investor sentiment oscillates wildly between greed and fear, optimism and pessimism, with little sense of moderation. Short term volatility is a given on the equity journey.

INVESTMENT THEMES

London quoted companies with a strong position in their home markets, and who have the world as their market place.

Companies with leading market positions, offering top line growth and pricing power. The strong get stronger.

Companies which enjoy high margins and generate good levels of free cash flow.

Companies that re-invest in the products and services that they offer their customers.

Companies with good revenue predictability and visibility.

We generally prefer companies which sell to other companies ("B to B"), rather than companies which sell to the consumer ("B to C").

We are wary of companies which are largely dependent on the developed world consumer or public sector spending, or companies that are easily threatened by higher input prices.

INVESTMENT STYLE

Try to think like businessmen and proprietors. To quote Benjamin Graham's "Intelligent Investor": "Investment is most intelligent when it is most business-like. Every corporate security may best be viewed, in the first instance, as an ownership interest in, or a claim against a specific business enterprise".

Patience. Long only and give things time.

Very low turnover.

OVERALL PERFORMANCE

During the six months under review, the Ordinary and "A" Ordinary share prices declined by 7.2% and 4.8% respectively against the FTSE All-Share Index decline of 13.5% as both classes of shares traded at wider discount to their net asset value. The time weighted return of the portfolio was -1.1%, compared with a rise of 2.3% in the Company's benchmark and a decline of 11.6% in the FTSE All-Share Index - Total Return.

The portfolio recorded losses on thirty of its investments. The largest contributors to the overall 16.7 pence per share loss of the Net Asset Value were Kofax -14.5p, Cairn Energy -10.2p, BG Group -9.8p and BHP Billiton -9.7p which were offset by gains from Ocean Wilsons Holdings of +60.8p, Andor Technology +12.7p and NCC Group +5.9p.

PORTFOLIO ACTIVITY

The thematic emphasis of the portfolio continues to be on companies with overseas earning, and "B to B" rather than "B to C".

We only added to existing holdings over the period. The company had borrowings of £8.5m at the end of September, representing 4.0% of net assets.

SECTOR WEIGHTING AND PERFORMANCE

Sector	Sector Weighting at  30 September 2011 %	Sector Weighting at  30 September 2010 %	Six months' Performance to 30 September 2011 %
Strategic	45.5	43.1	13.6
Smaller Cap/AIM	20.0	16.0	(1.2)
Natural Resources	12.4	14.6	(24.4)
Property	6.6	5.3	(2.5)
Large Cap	10.7	11.2	(11.0)
Utilities	2.0	4.1	(5.5)
Mid Cap	3.4	4.6	(13.5)
Insurance	-	3.1	-
Investment Trusts	2.5	2.5	(15.4)
Net current liabilities (inc. loans)           (3.1)		(4.5)	(1.2)

NEWS UPDATES FROM TOP HOLDINGS

(The twenty three holdings listed below representing 96.2% of Net Asset Value ("NAV"). Details are provided in respect to each company's Market Capitalisation, the proportion of NAV that the holding represents and the company's performance during the six months to 30 September 2011)

Ocean Wilsons Holdings Ltd - (Market Cap. £497.3m: 45.5 % of NAV: Performance +13.6%) is a Bermuda based investment company and through its subsidiary operates as a maritime services company in Brazil. The company is listed on both the Bermuda Stock Exchange and the London Stock Exchange and has two principal subsidiaries. Wilson Sons Limited (58.25% owned), is an autonomous Bermuda company listed on the Sao Paulo Stock Exchange and Luxembourg Stock Exchange. Wilson Sons is one of the largest providers of maritime services in Brazil, with activities including harbour and ocean towage, container terminal operations, offshore support services, logistics, small vessel construction and ship agency. Ocean Wilsons (Investments) Limited (wholly owned) is a Bermuda investment company, holding a portfolio of international investments managed by Hanseatic Asset Management LBG, a Guernsey registered and regulated investment manager.

Over the next six years Wilson Sons Limited expects to invest over US$1.8bn, not including acquisitions, US$0.84bn in Offshore Support Services, the balance in Towage and Shipyards, as both will also benefit from offshore E&P activities. Brasco (wholly owned) has signed a contract for the acquisition of Briclog for R$125m. Briclog is located in the city of Rio de Janeiro and has been providing port services to the oil and gas industry since 2004. On the operational front, the legal action that temporarily halted the construction of the extension of the Guaraja shipyard has been satisfactorily resolved and the company has recently been granted an environmental licence to proceed with the construction of a much larger shipyard at Rio Grande, which will focus on building offshore support vessels to service oil and gas platforms. The expansion of the Company's naval construction capacity will facilitate the strategy of building vessels to meet the demand driven by the growth in the offshore oil and gas industry in Brazil. On the economic front, the recent strengthening of the US$ against the R$ will ease some of the cost pressures on Wilson Sons which has revenues in US$ and costs in R$, while the strengthening of the US$ against Sterling increases the translational value of the underlying assets.

Hargreaves Services - (Market Cap. £272.3m: 4.1% of NAV: Performance +8.1%) the UK's leading energy support services provider announced final figures in line with expectations and stated "The Board remain very excited by the Group's positioning and opportunities to grow the business. All production from Monkton and Maltby is contracted until at least 2012, with the average contract price comfortably below the current market prices for coke and coal. We remain particularly excited by the prospects for the Group in Europe and at Tower Colliery. We will continue efforts to invest to grow our operations in Europe and further afield".

BG Group - (Market Cap. £42,085m: 4.0% of NAV: Performance -19.2%) now expects only "modest" production growth for FY11, but emphasises that its plans for production ramp-up in 2012-13, as well as its 2020 goals are unaffected. BG has an excellent opportunity set including its vast Brazilian reserves and Asian LNG developments. The main highlight of recent months is the upgrade to its offshore Brazilian reserves. At the end of June BG doubled its estimates for the Brazilian Santos Basin reserves and resources which are now estimated to amount to some 6 billion barrels of oil equivalent net to BG. We will shortly get updates on Brazil, Australia (LNG) and on the US (shale gas).

Andor Technology - (Market Cap. £176.3m: 3.8% of NAV: Performance +48.5%) a global leader in the development and manufacture of high performance scientific digital cameras for academic, industrial and government applications, announced an excellent set of interim figures, stating that "trading through the second half has continued to be strong, with each of our markets delivering excellent growth over the same period last year". The company talks about a "clear market driven strategy, continuous investment and searching for innovation in every aspect of our business".

NCC Group - (Market Cap. £229.5m: 3.4% of NAV: Performance +20.1%) the international, independent provider of Escrow and Assurance announced a strong set of final figures with a cash conversion ratio of 133%. Two acquisitions have transformed the group's scale and international reach over the last eighteen months, and both divisions enjoy market leading positions and continue to see predictable long term expansion with strongly recurring revenues throughout. "The outlook for NCC Group remains very good and the Board remains confident in its ability to deliver further sustainable growth".

Cape - (Market Cap. £536.5m: 3.3% of NAV: Performance -6.6%) the international provider of essential non-mechanical downstream support services to the energy and mineral resources sectors, has confirmed that trading is in line with expectations and H2 is likely to see the next step change in activity, both in the Middle and Far East, while 91% of consensus revenues for 2011 are already secured. The group's tax residence is moving to Singapore and Jersey, and the share listing has moved from AIM to the main market. "Cape has a unique combination of capabilities and competence and an outstanding safety record. We are therefore ideally positioned to benefit from the upturn in demand for the construction support services which is driven by the forecast increase in capital spending in our sector and the global demand for energy. All indications continue to suggest we are entering a sustained period of demand growth for Cape's services".

Weir Group - (Market Cap. £3,274m: 2.8% of NAV: Performance -10.0%) is a global engineering solutions provider to the mining, oil & gas and power markets. This focus, together with a growing emerging market presence, continued commitment to operational excellence, strong aftermarket revenues and value enhancing acquisitions has resulted in record margins. The Weir SPM pressure pumping equipment operation is market leader in one of the fastest growing upstream oil and gas sectors, with growth in the installed base and increased operating intensities driving further aftermarket opportunities and an accelerated original equipment replacement cycle. "The group is well on track to achieve its ambition to double 2009 profits by 2014".

Experian - (Market Cap. £7,285m: 2.7% of NAV: Performance -4.8%) the global credit information and marketing services group remains a long-term growth story, as it continues on a journey of expansion into new geographic markets, notably Brazil, and verticals, with a culture of innovation to develop new products and move into new customer segments. In 2007 less than 20% of revenue was from outside the UK & US, and this is targeted to grow to 30-40% by 2014. The vertical diversification has seen non-financial sector revenue rise from just below 50% in 2007 to more than 60% currently. Acquisitive growth funded by free cash flow continues to play a role, with the deals tending to be bolt-ons that speed organic growth or allow the group to expand the reach of its core competencies of data or analytics.

Herald Investment Trust - (Market Cap. £349.9m: 2.5% of NAV: Performance -15.4%) its objective is to achieve capital appreciation by investing throughout the world in smaller quoted companies in the areas of communications and multi-media. The business activities of investee companies will include information technology, broadcasting, printing and publishing and the supply of equipment and services to these companies. Herald's Net Asset Value total return increased 6.6% in H1 2011, following on from a 41.2% rise in 2010. At 30 June 2011 the UK represented 67% of the equity portfolio, with 24% in the US, 2% in Europe and 7% in Asia/Emerging markets. The NAV has grown 11.2% pa since launch in 1994.

BHP Billiton - (Market Cap. £36,708m: 2.4% of NAV: Performance -28.1%) the largest mining company in the world, remains generally bullish about demand for commodities on the back of emerging market demand, while on the supply side mining projects are now at risk of delay due to economic uncertainty and potential delays to funding. BHP has tier one, high volume, low production cost, long-life and expandable assets.

Hansteen Holdings - (Market Cap. £461.2m: 2.3% of NAV: Performance -13.6%) is a European industrial REIT with a 60% German portfolio weighting, set up by the founders of Ashtenne after that business was sold. The management have invested alongside shareholders at the IPO and in successive capital raisings. The company has disposable acquisition firepower of around £450m, and management continues to work hard to improve occupancy and drive improved rents within the portfolio. With property yields remaining largely flat, Hansteen is driving earnings to maximise the dividend pay out to its shareholders. "The Board intends to continue to operate a prudently progressive dividend policy for the foreseeable future reflecting the growing profitability of the business", in the true spirit of a REIT.

GlaxoSmithKline - (Market Cap. £67,525m: 2.0% of NAV: Performance 15.1%) delivered solid Q2 results, with cost-cutting benefits ahead of expectations and a strong performance from emerging markets. Buyback guidance remains at the upper end of £1-2bn, along with some £500m of divestments. The chief executive has stated "we expect underlying sales growth to translate into sustainable reported growth as we exit the year and move in to 2012".

Kofax - (Market Cap. £255m: 2.0% of NAV: Performance -42.9%) a leading global provider of capture driven business process automation solutions, announced full year figures in line with the lower guidance set at the July trading statement, with H2 materially weaker than H1, the main weakness being in software license sales. With a growing pipeline the outlook statement reads "in the current fiscal year we conservatively expect between eight and ten per cent total revenue growth in US dollars on a constant currency basis". Year-end cash balances totalled US$98.3m (US$55.5m) and the company confirmed that it intends to IPO in the US and maintain a dual listing.

Centrica - (Market Cap. 15,396m: 2.0% of NAV: Performance -5.5%) the UK's largest energy supplier, said pre-tax profits dropped by 19% in the first half of the year after higher wholesale prices and warmer weather took its toll on its residential energy business, but the interim dividend was increased by 12%. British Gas is being run as a single business with a greater emphasis on cost savings and is on course to exceed its £100m cost reduction target, while the rest of the business is benefitting from vertical integration and a focus on energy related services.

DV4 - (£1bn committed. Unquoted, 1.9% of NAV: Performance +7.6%) is 53% drawn, and Hansa Trust has a £10m commitment to this property fund. The focus of acquisitions for the DV4 portfolio for the past year and going forward has largely been towards London and the South East, in the two principal markets where momentum exists; namely prime offices and residential. This is set against the back drop of a number of key objectives. First, a drive towards more income. Second, recognising that bank finance is in short supply, a search for leveraged investment opportunities such as land purchases. Third, the search for potential partners on projects from which the fund can benefit from enhanced promotes and fees. The acquisition of Minerva has increased the Fund's exposure to some first class assets in the London office and residential sectors. Alpha Plus was acquired in December 2007 and is the premier private education platform in the UK but with a London focus.

Great Portland Estates - (Market Cap. £1,063m: 1.8% of NAV: Performance -10.9%) is a fully exposed London offices and retail Real Estate Investment Trust ("REIT"), with an 80% weighting in the West End and the balance in the City and Southwark. There are two commercial property markets in the UK, Central London and the rest of the country, or simply put "London calling, regions falling". The near term development pipeline could potentially provide an additional 1.8m sq. ft. from 11 schemes which could be delivered by 2014. The depreciation of the pound together with a lack of new office space in the West End has fuelled demand from international investors.

HSBC Holdings - (Market Cap. 88,680m: 1.7% of NAV: Performance -20.9%) its strategic review outlined a target ROE of 12-15% over the cycle and emphasised the need to reduce costs and boost returns by focusing on profitable countries and businesses to be in. In Hong Kong and the UK, HSBC will continue to build on its large retail presence, but in many parts of the world, where it is sub-scale, it will exit. At least 39 out of 87 countries are ear-marked for possible exit. HSBC has a loan to deposit ratio of 79%, meaning that it is a net lender into the wholesale markets. Around 47% of revenues are derived from emerging markets, particularly Asia, the Middle East and Latin America. Total Eurozone exposure, including that to banks and corporates is U$32bn, or 25% of shareholders' funds.

United Business Media - (Market Cap. £1,098m: 1.6% of NAV: Performance -22.5%) focuses on two principal activities: worldwide information distribution, targeting and monitoring; and the development and monetisation of B to B communities and markets. The group had a good first half and all core areas of the business advanced with particularly strong performances from events and online marketing services, and the dividend was increased by 5% reflecting strong cash generation. The group's exposure to faster growing emerging markets is increasing, including China, India and Brazil, and the events activities were flagged as likely to outperform guidance.

BP - (Market Cap. £73,676m: 1.5% of NAV: Performance -12.7%) continues to put the Macondo well disaster in the Gulf of Mexico behind it, and is well on track to meet its target of achieving up to US$30bn of divestments by the end of 2011, giving the company more than sufficient cash to pay for the US escrow account. BP is poised to become a major player in the Indian gas business after a US$20bn deal with Reliance Industries covering exploration and development, although management's resolve to remain in the Russian TNK-BP joint venture is being severely tested. BP expects the momentum of its recovery to build into 2012 and 2013, with nine new projects coming on stream in the period, mostly in high margin areas. It remains on track to double its exploration spend and to increase the number of wells drilled in areas such as Brazil, Trinidad and Australia. It is proceeding with four developments in the North Sea with investment expected to total some £10bn over the next 5 years, to maintain production from the North Sea at 200-250Kbopd through to 2030.

Cairn Energy - (Market Cap. £3,948m: 1.5% of NAV: Performance -39.3%) has received ONGC's consent to Vedanta's proposed acquisition of a controlling stake in Cairn India from Cairn Energy. Formal completion and a shareholder return could happen sometime in Q4-2011. The Delta-1 well offshore Greenland has been plugged and abandoned, leaving two wells out of a four well program still to be drilled this season. The company remains committed to seeking partners upon completion of the 2011 drilling program, as several of the largest global oil companies including ExxonMobil and Royal Dutch Shell have secured acreage offshore Greenland in recent years.

ENI - (Market Cap. £45,261m: 1.3% of NAV: Performance -20.0%) has confirmed that Libyan gas/condensate volumes should return soon, Management expects to see exports via Greenstream before year end, with full output early in 2012. ENI has reiterated its volume growth target of 3% p.a. for 2010-14 and has laid out its expectation of 2% pa growth thereafter to 2020, providing more confidence about cash generation and the strong implication that the dividend should be covered by free cash flow down to at least US$70/bb oil.

Galliford Try (Market Cap. £360.1m: 1.2% NAV: Performance +18.6%) its housing strategy of unit and margin growth based on land acquired in the South of England at the bottom of the market, at a time when other house builders were retrenching, is paying off, materially pushing earnings ahead, even with competitive conditions in the group's construction operations. 72% of the land bank is new higher margin land and 2012 will see some 64% of units being built on this land. The company has opened numerous new sites and currently sells off 81 active sites, which will rise to 90 on average in the current financial year, ending the year at 100 sites. If the company chooses not to expand beyond 3,600 housing units and consolidates and replaces lots used with replacement plots, it will be in a strong position to increase its cash distributions to shareholders in the future.

Royal Dutch Shell (Market Cap. £53,730m: 1.1% NAV: Performance -8.8%) is at a different point in the capital cycle than many peers, where a multi-year period of high capital investment is set to translate into superior cash flow growth over the next few years. In the upstream operations, a highlight of 2011 is the start-up of some major projects, including Qatargas 4, the Pearl GTL plant in Qatar and the start-up of additional oil sands projects. In total these three projects are expected to contribute peak production of some four hundred thousand barrels of oil equivalent per day.

OUTLOOK

It will be challenging for policymakers to regain immediate control of a rapidly deteriorating global economy. The biggest risk to the world economy is not a US default as the ability to print its own currency means the worst that can happen is a continued weakening of the dollar over decades. Italy and Spain, however, are hostage to the euro, a currency they cannot control. The Eurozone crisis will only be resolved by centralising powers to tax and spend, fiscal integration, a common Treasury. In order to erect safeguards against contagion from a possible Greek default, European policymakers will need to undertake a large and co-ordinated recapitalisation of their national banks if they are to succeed, to remove the incentive to deleverage, and the bonds of countries like Italy and Spain need to be protected by allowing the countries to refinance themselves at a very low cost. France and Germany have set themselves a deadline of the end of October to reach agreement on a comprehensive package of measures to stabilise the Eurozone. Markets are saying that time is running out, with a revised economic outlook of flagging growth and an amplifying European banking and sovereign debt crisis, leaving investors so gloomy that their expectations are low. In the meantime Goldman Sachs is talking about "the Great Stagnation" as "both Europe and the US are remarkably close to the typical stagnation trajectory" and "unless growth picks up substantially in the next couple of years, we are likely to have mapped out a five year period of stagnant growth". After years of credit expansion, a debt bust and banking crisis, record government stimulus, a sovereign debt crisis and second banking crisis, it could take a long time for developed western economies and standards of living to reach a new equilibrium and for financial markets to acclimatise to a new world of possibly lower returns. There is a fear that this could be "the big one" in the developed world, the beginning of a sort of Japanese semi-permanent recession that has ground on for an age while the developing world boomed. Companies are generally reporting healthy orders and profits and have strong balance sheets, while the fundamental outlook in the emerging markets is still positive. Looking forward it could feel like a less prosperous world as global growth slows, business confidence deteriorates and policy-making remains in a vacuum.

Hansa Capital Partners LLP

Investment Manager

30 September 2011

at 30 September 2011

Investments	Fair Value £000	Percentage of Net Assets
Ocean Wilsons Holdings Ltd	118,313	45.5
Hargreaves Services Plc	10,658	4.1
BG Group Plc	10,453	4.0
Andor Technology Plc	9,831	3.8
NCC Group Plc	8,770	3.4
Cape Industries Plc	8,465	3.3
Weir Group Plc	7,265	2.8
Experian Group Ltd	7,043	2.7
Herald Investment Trust Plc	6,619	2.6
BHP Billiton Plc	6,283	2.4
Top 10 Investments	193,700	74.6
Hansteen Holdings Plc	5,996	2.3
Glaxosmithkline Plc	5,332	2.0
Kofax Plc	5,193	2.0
Centrica Plc	5,117	2.0
DV4 Ltd #	4,927	1.9
Great Portland Estates Plc	4,698	1.8
HSBC Holdings Plc	4,400	1.7
United Business Media Plc	4,039	1.6
BP Plc	3,885	1.5
Cairn Energy Plc	3,789	1.5
Top 20 Investments	241,076	92.9
Eni S.P.A.	3,390	1.3
Galliford Try Plc	3,225	1.2
Royal Dutch Shell Plc	2,891	1.1
Wolseley Plc	2,314	0.9
Goals Soccer Centres Plc	2,160	0.8
Lloyds Banking Group Plc	1,627	0.6
DV3 Preference Shares Ltd #	1,539	0.6
Melrose Resources Plc	1,423	0.5
Morson Group Plc	1,365	0.5
Qinetiq Group Plc	1,167	0.4
Top 30 Investments	262,177	100.8
Other Investments (28)	5,904	2.3
Total Investments	268,081	103.1
Net current liabilities	(7,976)	(3.1)
Net Assets	260,105	100.0
Listed	209,538	78.2
AIM and OFEX	52,078	19.4
Unquoted #	6,465	2.4
	268,081	100.0

for the six months ended 30 September 2011

	(Unaudited) Six months ended 30 September 2011			(Unaudited) Six months ended 30 September 2010			(Audited) Year ended 31 March 2011
	Revenue	Capital	Total	Revenue	Capital	Total	Revenue	Capital	Total
	£000	£000	£000	£000	£000	£000	£000	£000	£000
(Losses)/gains on investments	-	(7,398)	(7,398)	-	28,369	28,369	-	49,127	49,127
Loss on derivatives	-	-	-	-	(16)	(16)	-	(16)	(16)
Currency exchange losses	-	(2)	(2)	-	(4)	(4)	-	(4)	(4)
Investment income (see note 2)	4,688	12	4,700	1,889	-	1,889	3,009	-	3,009
	4,688	(7,388)	(2,700)	1,889	28,349	30,238	3,009	49,107	52,116
Investment management fees	(798)	-	(798)	(639)	-	(639)	(1,386)	-	(1,386)
Write back of prior years' VAT	-	-	-	51	-	51	51	-	51
Other expenses	(415)	-	(415)	(351)	-	(351)	(724)	-	(724)
	(1,213)	-	(1,213)	(939)	-	(939)	(2,059)	-	(2,059)
Profit/(loss) before finance costs and taxation	3,475	(7,388)	(3,913)	950	28,349	29,299	950	49,107	50,057
Finance costs	(57)	-	(57)	(37)	-	(37)	(114)	-	(114)
Profit/(loss) before taxation	3,418	(7,388)	(3,970)	913	28,349	29,262	836	49,107	49,943
Taxation	(38)	-	(38)	(4)	-	(4)	(4)	-	(4)
Profit/(loss) for the period	3,380	(7,388)	(4,008)	909	28,349	29,258	832	49,107	49,939
Return per Ordinary and 'A' non‑voting Ordinary share (see note 3)	14.1p	(30.8p)	(16.7p)	3.8p	118.1p	121.9p	3.5p	204.6p	208.1p

The Company does not have any income or expense that is not included in the profit for the period. Accordingly the "Profit for the period" is also the "Total comprehensive income for the period", as defined in IAS 1 (revised) and no separate Statement of Comprehensive Income has been presented.

All of the profit and total comprehensive income for the period is attributable to the Company's shareholders.

The total column of the statement is the Income Statement of the Company prepared in accordance with IFRS. The supplementary revenue and capital columns are presented for information purposes as recommended by the Statement of Recommended Practice issued by the Association of Investment Companies.

The Statement above is regarded as being in a condensed form due to the fact that fewer explanatory notes are included than would be the case in the Annual Report.

for the six months ended 30 September 2011 (Unaudited)

	Share Capital £000	Capital redemption reserve £000	Retained Earnings £000	Total £000
Net assets at 1 April 2011	1,200	300	262,613	264,113
Loss for the period	-	-	(4,008)	(4,008)
Dividends paid	-	-	-	-
Balance at 30 September 2011	1,200	300	258,605	260,105

Condensed Statement of Changes in Equity for the six months ended 30 September 2010 (Unaudited)
	Share Capital £000	Capital redemption reserve £000	Retained Earnings £000	Total £000
Net assets at 1 April 2010	1,200	300	213,514	215,014
Profit for the period	-	-	29,258	29,258
Dividends paid	-	-	-	-
Balance at 30 September 2010	1,200	300	242,772	244,272

Condensed Statement of Changes in Equity for the year ended 31 March 2011 (Audited)
	Share Capital £000	Capital redemption reserve £000	Retained Earnings £000	Total £000
Net assets at 1 April 2010	1,200	300	213,514	215,014
Profit for the period	-	-	49,939	49,939
Dividends paid	-	-	(840)	(840)
Balance at 31 March 2011	1,200	300	262,613	264,113

The Statements above are regarded as being in a condensed form due to the fact that fewer explanatory notes are included than would be the case in the Annual Report.

as at 30 September 2011
	(Unaudited) 30 September 2011 £000	(Unaudited) 30 September 2010 £000	(Audited) 31 March 2011 £000
Non‑current investments
Investments held at fair value through profit and loss	268,081	254,655	266,435
Current Assets
Trade and other receivables	402	688	281
Cash and cash equivalents	404	176	8,295
	806	864	8,576
Current Liabilities
Trade and other payables falling due within one year	(8,782)	(11,247)	(10,898)
Net current assets	(7,976)	(10,383)	(2,322)
Net assets	260,105	244,272	264,113
Equity
Called up share capital	1,200	1,200	1,200
Capital redemption reserve	300	300	300
Retained earnings	258,605	242,772	262,613
Total equity shareholders' funds	260,105	244,272	264,113
Net asset value per Ordinary and 'A' non‑voting Ordinary share (see note 5)	1,083.8p	1,017.8p	1,100.5p

The Statement above is regarded as being in a condensed form due to the fact that fewer explanatory notes are included than would be the case in the Annual Report.

for the six months ended 30 September 2011
	(Unaudited) Six months ended 30 September 2011 £000	(Unaudited) Six months ended 30 September 2010 £000	(Audited) Year ended 31 March 2011 £000
Cash flows from operating activities
(Loss)/profit before finance costs and taxation	(3,913)	29,299	50,057
Adjustments for:
Realised gains on investments	-	(939)	(3,689)
Unrealised losses/(gains) on investments	7,398	(27,430)	(45,438)
Effect of foreign exchange rate changes	2	4	(4)
(Increase)/decrease in trade and other receivables	(121)	(57)	350
(Decrease)/increase in trade and other payables	(150)	(3)	182
Taxes paid	(38)	(4)	(4)
Purchase of non-current investments	(9,134)	(12,050)	(24,688)
Sale of non-current investments	24	2,073	23,755
Net cash (outflow)/inflow from operating activities	(5,932)	(9,107)	521
Cash flows from financing activities
Interest paid on bank loans	(57)	(37)	(114)
Dividends paid	-	-	(840)
(Repayment)/drawdown of loans	(1,900)	7,500	6,900
Net cash (outflow)/inflow from financing activities	(1,957)	7,463	5,946
(Decrease)/increase in cash and cash equivalents	(7,889)	(1,644)	6,467
Cash and cash equivalent at 1 April	8,295	1,824	1,824
Effect of foreign exchange rate changes	(2)	(4)	4
Cash and cash equivalents at end of period	404	176	8,295

The Statement above is regarded as being in a condensed form due to the fact that no explanatory notes are included as would be the case in the Annual Report.

1.  ACCOUNTING POLICIES

The financial statements of the Group have been prepared in accordance with International Financial Reporting Standards ('IFRS'). These financial statements are presented in pounds sterling because that is the currency of the primary economic environment in which the Group operates.

(a)           Basis of preparation

This half-yearly report is prepared in accordance with IAS 34 and on the basis of the accounting policies set out in the group and Company's Annual Report and Accounts at 31 March 2011.

The financial statements have been prepared on an historical cost basis, except for the revaluation of certain financial assets. The principal accounting policies adopted are set out below. Where presentational guidance set out in the Statement of Recommended Practice ('SORP') for investment trusts issued by the Association of Investment Companies (AIC) is consistent with the requirements of IFRS, the Directors have sought to prepare the financial statements on a basis compliant with the recommendations of the SORP and with pronouncements on interim reporting issued by the Accounting Standards Board.

(b)           Basis of Consolidation

The consolidated financial statements incorporate the financial statements of the Company and its subsidiary undertakings made up to 30 September 2011.

(c)           Presentation of income statement

In order to better reflect the activities of an investment trust company and in accordance with guidance issued by the AIC, supplementary information which analyses the income statement between items of a revenue and capital nature has been presented alongside the Income Statement. In accordance with the Company's status as a UK investment company under section 833 of the Companies Act 2006, net capital returns may not be distributed by way of dividend. Additionally, the net revenue is the measure the Directors believe to be appropriate in assessing the Company's compliance with certain requirements set out in s.1158-1159 Corporation Taxes Act 2010 ("CTA 2010").

(d)           Non-current investments

As the Company's business is investing in financial assets, with a view to profiting from their total return in the form of income received and increases in fair value, investments are designated as fair value through profit and loss on initial recognition in accordance with IAS 39. The Company manages and evaluates the performance of these investments on a fair value basis in accordance with its investment strategy and information about the investments is provided on this basis to the Board of Directors.

Investments are recognised and de-recognised on the trade date. For listed investments fair value is deemed to be bid market prices or closing prices for SETS stocks sourced from the London Stock Exchange. SETS is the London Stock Exchange electronic trading service covering most of the market including all FTSE 100 constituents and most liquid FTSE 250 constituents along with some other securities.

Unquoted investments are stated at fair value through profit or loss as determined by using various valuation techniques, in accordance with the International Private Equity and Venture Capital ("IPEVC") Valuation Guidelines. These include using recent arm's length market transactions between knowledgeable and willing parties where available.

Gains and losses arising from changes in fair value are included in net profit or loss for the period as a capital item in the Income Statement and are ultimately recognised in the Capital Reserves.

(e)           Derivative Financial Instruments

Over the counter derivative options are measured at fair value as valued by the issuing broker at bid-market price.

(f) Cash and cash equivalents

Cash and cash equivalents comprise cash at bank, short-term deposits and cash funds with an original maturity of three months or less and are subject to an insignificant risk of changes in capital value.

(g)           Investment Income

Dividends receivable on equity shares are recognised on the ex-dividend date. Where no ex-dividend date is quoted, dividends are recognised when the Company's right to receive payment is established. UK dividends are stated net of related tax credits while overseas dividends and REIT income is stated gross.

Underwriting commission is recognised in the revenue column of the Income Statement, insofar as it relates to shares not required to be taken up. Where a proportion of the shares underwritten are required to be taken up the same proportion of the commission received is recognised in the capital column of the Income Statement, with the balance taken to the revenue column.

(h)           Expenses

All expenses are accounted for on an accruals basis. Expenses are charged through the revenue column of the Income Statement except as follows:

(i)  expenses which are incidental to the acquisition or disposal of an investment are charged to the capital column of the Income Statement; and

(ii) expenses are charged to the realised capital reserve, via the capital column of the Income Statement, where a connection with the maintenance or enhancement of the value of the investments can be demonstrated.

(i) Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit before tax as reported in the Income Statement because it excludes items of income or expenses that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Group's liability for current tax is calculated using tax rates that have been enacted or substantially enacted by the balance sheet date.

In line with the recommendations of the SORP, the allocation method used to calculate tax relief on expenses presented against capital returns in the supplementary information in the Income Statement is the "marginal basis". Under this basis, if taxable income is capable of being offset entirely by expenses presented in the revenue return column of the Income Statement, then no tax relief is transferred to the capital return column.

Deferred taxation is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the Financial Statements and the corresponding tax bases used in the computation of taxable profit and is accounted for using the balance sheet liability method. Deferred tax liabilities are recognised for all taxable temporary differences and deferred tax assets are recognised to the extent it is probable that taxable profits will be available against which deductible temporary differences can be utilised.

Investment trusts which have approval under s.1158-1159 CTA 2010 are not liable for taxation on capital gains.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax is calculated at the tax rates expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the Income Statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.

 (j)           Foreign Currencies

Transactions denominated in foreign currencies are recorded in the local currency, at the actual exchange rates as at the date of the transaction. Assets and liabilities denominated in foreign currencies at the year-end are reported at the rate of exchange prevailing at the year-end. Any gain or loss arising from a change in exchange rates, subsequent to the date of the transaction, is included as an exchange gain or loss in the capital or revenue column of the Income Statement, depending on whether the gain or loss is of a capital or revenue nature respectively.

(k)           Capital Reserve

Gains or losses on realisation of investments and changes in fair values of investments which are readily convertible to cash, without accepting adverse terms, are transferred to the capital reserve.

2.  INVESTMENT INCOME

	(Unaudited) Six months ended 30 September 2011 £000		(Unaudited) Six months ended 30 September 2010 £000		(Audited) Year ended 31 March 2011 £000
Income from listed investments
Dividends		1,751		1,315		2,353
Overseas dividends		2,936		569		649
		4,687		1,884		3,002
Other operating income
Interest receivable AAA rated money market funds		-		-		2
Interest receivable		1		5		5
		1		5		7
Total income		4,688		1,889		3,009
Total income comprises:
Dividends		4,687		1,884		3,002
Interest		1		5		7
		4,688		1,889		3,009

3.  RETURNS PER SHARE

The returns stated below are based on 24,000,000 shares, being the weighted average number of shares in issue during the period.

	Revenue		Capital		Total
Period	£000	Pence per share	£000	Pence per share	£000	Pence per share
Six months ended 30 September 2011	3,380	14.1	(7,388)	(30.8)	(4,008)	(16.7)
Six months ended 30 September 2010	909	3.8	28,349	118.1	29,258	121.9
Year ended 31 March 2011	832	3.5	49,107	204.6	49,939	208.1

4.  FINANCIAL INFORMATION

The financial information contained in this half-yearly report is not the Company's statutory accounts as defined in section 434-436 of the Companies Act 2006. The financial information for the six months ended 30 September 2011 and 30 September 2010 is not for a financial year, has not been audited or reviewed by the auditors and has been prepared in accordance with accounting policies consistent with those set out in the Annual Report and Accounts for the year ended 31 March 2011.

The statutory accounts for the financial year ended 31 March 2011 have been delivered to the Registrar of Companies and received an audit report which was unqualified, did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying the report, and did not contain statements under section 498 (2), (3) and (4) of the Companies Act 2006.

The half-yearly financial information was approved by the Board of Directors on 4 November 2011.

5.  NET ASSET VALUE PER SHARE

The Net Asset Value per share is based on the net assets attributable to equity shareholders of £260,105,000 (six months ended 30 September 2010: £244,272,000; year ended 31 March 2011: £264,113,000) and on 24,000,000 shares, being the number of shares in issue at the period ends.

6.  COMMITMENTS AND CONTINGENCIES

The Company has entered into a commitment agreement with DV3 Limited, an unquoted property investment company. The commitment was for £807,438 and has been extended for a further one year until 30 March 2012. The amount outstanding at 30 September 2011 was £327,438 (31 March 2011: £327,438).

The Company entered into a further commitment agreement with DV4 Limited, also an unquoted property investment company. The commitment was for £10m for a period of five years from 7 March 2008 and the amount outstanding at 30 September 2011 was £6,194,325 (31 March 2011: £7,379,011).

The Company currently manages its affairs so as to be a qualifying investment trust for ISA purposes. As a result, under current UK legislation, the Ordinary and 'A' non-voting Ordinary shares qualify for investment in the stocks and shares component of a non-CAT Standard ISA up to the full annual subscription limit. It is the present intention that the Company will conduct its affairs so as to continue to qualify for ISA products.

CAPITAL STRUCTURE

The Company has 8,000,000 Ordinary shares of 5p and 16,000,000 'A' non-voting Ordinary shares of 5p each in issue. The Ordinary shareholders are entitled to one vote per Ordinary share held. The 'A' non‑voting Ordinary shares do not entitle the holders to vote or receive notice of meetings but in all other respects they have the same rights as the Company's Ordinary shares.

CONTACT DETAILS

Please contact the Investment Manager, as below, if you have any queries concerning the Company's investments or performance.

Hansa Capital Partners LLP

50 Curzon Street

London W1J 7UW

Telephone: [phone]

www.hansagrp.com

Please contact the Registrars, as below, if you have a query about a certificated holding in the Company's shares.

Capita Registrars

The Registry

34 Beckenham Road

Beckenham

Kent

BR3 4TU

Tel: [phone]

Email: [e-mail]

www.capitaregistrars.com

WEB SITE ADDRESS AND CONTENTS

The Company's website, www.hansatrust.com contains information on the Company and includes the following:

Monthly Fact Sheets

Quarterly Interim Statements

Annual and Half‑yearly Reports

Stock Exchange Announcements

Details of the Board and Investment Manager

Share Price Data

SHARE PRICE LISTINGS

The price of your shares can be found in the Financial Times under the heading Investment Companies.

In addition, share price information can be found under the following:

ISIN No                                        Code

Ordinary Shares                            GB0007879728

'A' non‑voting Ordinary shares      GB0007879835

Sedol No

Ordinary Shares                            0787972

'A' non‑voting Ordinary shares      0787983

Reuters

Ordinary shares                            HAN.L

'A' non‑voting Ordinary shares      HANA.L

Bloomberg

Ordinary shares                            HAN LN

'A' non‑voting Ordinary shares      HANA LN

SEAQ

Ordinary shares                            HAN

'A' non‑voting Ordinary shares      HANA

USEFUL INTERNET ADDRESSES

The Association of

Investment Companies                www.theaic.co.uk

London Stock
Exchange               www.londonstockexchange.com

TrustNet                                    www.trustnet.com

Interactive                                        www.iii.co.uk

FINANCIAL CALENDAR

Company year end                                 31 March

Preliminary full year results announced           June

Annual Report sent to shareholders                 July

Annual General Meeting held                       August

Final Dividend payment                             August

Announcement of half‑yearly results 8 November

Half‑yearly Report sent to shareholders         24 November

Interim Dividend payment                   2 December

Interim Management Statements   January and July

NOTES

Hansa Trust PLC

50 Curzon Street, London W1J 7UW

Tel: [phone] Fax: [phone]

Website: www.hansatrust.com

Email: [e-mail]

 

END

 

 

IR FEMSWIFFSEIF