Half Yearly Report

RNS Number : 6938R

Martin Currie Global Portfolio Tst

15 September 2014

 



Martin Currie Global Portfolio Trust plc

Half-yearly financial report

Six months to 31 July 2014

A copy of the Half Year report for the six months ended 31 July 2014 has been submitted to the National Storage Mechanism.  This will be available for viewing at http://www.hemscott.com/nsm.do

A copy of this half year report can be downloaded at www.martincurrieglobal.com.

Financial Summary

Key data

	As at 31 July 2014	As at 31 January 2014
Net asset value per share (cum income)	166.8p	157.4p
Net asset value per share (ex income)	165.2p	156.4p
Benchmark (capital) ‡	432.0	411.9
Share price	165.5p	156.5p
Discount*	0.8%	0.6%

Total returns+

	Six months ended 31 July 2014	Six months ended 31 July 2013
Net asset value per share§	7.0%	12.6%
Benchmark	6.5%	12.4%
Share price	7.2%	14.4%

Income

	Six months ended 31 July 2014	Six months ended 31 July 2013
Revenue return per share	2.48p	2.38p
Dividend per share	1.80p	1.80p

Ongoing charges**(as a percentage of shareholders' funds)

	Six months ended 31 July 2014	Six months ended 31 July 2013
Ongoing charges	0.75%	0.77%
Performance Fee	-	-
Ongoing charges plus performance fee	0.75%	0.77%

‡     The benchmark is the FTSE World Index.

*      Figures shown are inclusive of income as per AIC guidance. The premium calculated exclusive of income was 0.2% (31 January 2014: 0.1%).

†    The combined effect of the rise and fall in the NAV, or benchmark, or share price, together with any dividends paid.

§     The NAV is exclusive of income with dividends reinvested.

     For details of calculation, refer to note 2.

**     Ongoing charges (as a percentage of shareholders' funds) are calculated using average net assets over the period. The ongoing charges figure has been calculated with the AIC's recommended methodology.

Chairman's Statement

Welcome to your half-yearly report covering the six months to 31 July 2014. During the period stockmarket sentiment has again been dominated by global events. The growing political tensions in Ukraine and the Middle East have contributed to continuing uncertainty in investment markets.

I am pleased to report that the Company's shares produced a total return of 7.2% over the six months, outperforming the FTSE World index return of 6.5%. The Company's NAV also outperformed the benchmark, returning 7.0%. This is a good result, despite the challenging investment environment, and reflects your portfolio manager's careful selection of a strong portfolio of growth stocks from the world's larger companies.

In his manager's review, Tom Walker outlines some of the main themes underlying the performance of the past six months. He also looks ahead to what we might expect from global markets in the months ahead and stresses the importance of stock picking in the low growth environment that he envisages.

Dividends

Following last year's announcement that dividends will be paid to shareholders on a quarterly basis, we paid 1.3p on 25 April 2014 making a total of 4.0p for the year ending 31 January 2014. This was followed by an interim dividend of 0.9p on 25 July 2014. The next quarterly dividend will be 0.9p paid on 24 October to shareholders on the register on 3 October.

Over the period the number of shares held in Treasury has increased slightly, following several share buybacks. This is in keeping with the announcement last July that the board would use its share buyback powers with the objective of ensuring that the Company's shares trade at, or around, NAV, in normal market conditions.

Alternative Investment Funds Managers' Directive ("AIFMD")

On 16 July, the Company obtained approval as a small registered UK AIFM under the AIFMD which the board believes is the most appropriate and lowest cost level of this regulation for the Company. This directive introduced additional regulatory oversight of the investment fund industry and is designed to regulate any fund which is not a UCITS fund and which is managed and/or marketed in the European Union.

Board and investment manager

Gill Nott retired from the board after 11 years following this year's annual general meeting ('AGM'). As we mentioned in the 2014 annual report Gill will not immediately be replaced and so the number of directors now stands at four. In July, Martin Currie announced that it plans to become a wholly owned affiliate of Legg Mason, a US based global asset management firm. The board has been assured that this will not involve any change to the management of the Company's portfolio by Tom Walker and that Legg Mason is strongly supportive of Martin Currie's investment trust business.

Looking ahead

The major global stockmarkets continue to be buoyant despite the political uncertainties which Tom describes in his report and, given a picture of continued overall economic growth, the investment outlook remains positive. There are many good individual company growth stories to be found across the global remit of our Company, and your board believes that this is an environment which offers good stock picking opportunities for your portfolio manager.

Neil Gaskell

Chairman

15 September 2014

 

 

Manager's Review

Global equity markets fell in January this year. However, after this weak start, they recovered and in the first half of our fiscal year, which started on 1 February, our benchmark, the FTSE World index, returned 6.5%. Our NAV did better, returning 7.0%. A recovery in emerging markets led returns while Japan lagged, though even it produced positive returns.

The political backdrop has deteriorated in the last six months, with high profile hostilities in Ukraine and the Middle East and a less newsworthy, but still alarming, escalation in tension in the Pacific Ocean. However, for equity investors, the supportive commentary from central banks in the developed world, and in the US in particular, has overridden political concerns and markets have continued to climb.

With many of these hostilities impacting oil production or distribution, the oil price has remained resilient (it has fallen since). As a result, the energy sector has been the best performing industry globally, with the technology sector also doing well. Perhaps reflecting concern about underlying demand in the global economy, the consumer services and industrial sectors were weakest.

Our stock selection was good in the period. Chemical company LyondellBasell continued to benefit from low natural gas and ethane prices and is enjoying record margins. Apple has recovered from its slump a year ago and recent results showed that demand for the iPhone and Mac is still strong. I bought Cooper Companies, the contact lens supplier, in the period and it has had a very promising contribution to performance already. Our worst performance came from three stocks in the industrial sector. The share prices of global industrial conglomerates United Technologies, Pentair and Safran have suffered from the same macroeconomic concerns over the pace of global economic recovery. I believe that their valuations are attractive, especially if we see economic activity pick up in the coming months.

As ever, portfolio activity has been driven by stock specifics. I switched out of US telecommunications company AT&T into Verizon when relative valuations were distorted by the inflated selling of Verizon following its purchase of part of Vodafone. I also bought Chinese oil and gas producer CNOOC and Japan-based machinery manufacturer, Komatsu. Sales included Walmart, whose end market is increasingly competitive, and communications company China Mobile, where the near term earnings outlook remains challenged.

Outlook

With all the problems in the world today, it seems extraordinary to many that stockmarkets continue to rise. Certainly, the larger global stockmarkets have performed better than economies and corporate earnings in recent years, with the result that valuations are looking more stretched; though not necessarily overstretched. Easy monetary policy has created a pot of money which has found a home in equity, bond and property markets alike, driving up asset prices. As a result, investors are more consumed by fears over what may happen when central banks start to tighten their policy stance than they are by fears over sluggish economies and wars.

On its current trajectory, the US Federal Reserve (Fed) will stop its monthly buying of bonds in October this year. This will effectively end quantitative easing in the US. The obvious next step should be higher interest rates, which may have implications for equity market valuations and economic activity alike. In my view, interest rates in the US are unlikely to rise any time soon and, when they do, I expect the quantum and pace of the increase to be small and slow, respectively. The US and global economies are simply too fragile for the Fed to risk undoing all its efforts to stimulate growth over the last five or so years.

As a stockpicker, I spend most of my time focusing on individual stock opportunities. However, on the crucial issue of whether share prices are likely to rise or fall in the next 12 months, US monetary policy is the key determinant. Clearly, lots of other things could go wrong, including the escalation of hostilities in various parts of the world. However, while the US 10-year Treasury yield languishes at these low levels, I do not think that the monetary environment is going to deteriorate any time soon. I therefore expect modest positive returns from equities in the year ahead. I have positioned the portfolio accordingly, aiming to add value through picking stocks that are mispriced or that are well placed to perform in a low growth environment.

Tom Walker

15 September 2014

Risk and mitigation

The Company's business model is longstanding and resilient to most of the short term uncertainties that it faces, which the board believes are effectively mitigated by its internal controls and the oversight of the investment manager, as described in the latest annual report.

Its principal risks and uncertainties are therefore largely longer-term and driven by the inherent uncertainties of investing in global equity markets. The board believes that it is able to respond to these longer term risks and uncertainties with effective mitigation so that both the potential impact and the likelihood of these seriously affecting shareholders' interests are materially reduced.

A short-term uncertainty is the potential impact on the Company of Scottish independence which the board is closely monitoring. Contingency plans have been prepared and the board will act to protect shareholders' interests if necessary.

Risks are regularly monitored at board meetings and the board's planned mitigation measures are described in the latest annual report. The board also carries out a risk workshop as part of its annual strategy meeting. The board has identified the following principal risks to the Company:

·      Loss of s1158-9 status

·      Long term investment underperformance

·      Decline in overall size of the Company

·      Failure to manage shareholder relations

·      Discount management policy

·      The investment manager ceases to effectively manage investment trusts or its reputation fails

·      Index liquidity test

Further details of these risks and how the board manages them can be found in the 2014 annual report and on the Company's website www.martincurrieglobal.com

Directors' Responsibilities

In accordance with Chapter 4 of the Disclosure and Transparency Rules and to the best of their knowledge, each director of the Company confirms that the financial statements have been prepared in accordance with the United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and Applicable Law) and with the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies and Venture Capital Trusts' issued in January 2009.  The directors are satisfied that the financial statements give a true and fair view of the assets, liabilities, financial position and net return of the Company. Furthermore, each director certifies that the interim management report includes an indication of important events that have occurred during the first six months of the financial year and their impact on the financial statements together with a description of the principal risks and uncertainties that the Company faces. In addition, each director of the Company confirms that, with the exception of management and secretarial fees, directors' fees and directors' shareholdings there have been no related party transactions during the first six months of the financial year.

By order of the board

Neil Gaskell

Chairman

15 September 2014

 

 

 

Portfolio Summary

Portfolio distribution by region

By Region	31 July 2014 Company	31 July 2014 FTSE World index	31 January 2014 Company	31 January 2014 FTSE World index
North America	49.2%	54.0%	52.2%	53.8%
Developed Europe ex UK	16.4%	16.5%	15.3%	17.1%
United Kingdom	13.7%	8.2%	12.6%	8.6%
Developed Asia Pacific ex Japan	10.7%	7.0%	9.5%	6.7%
Japan	6.4%	8.6%	6.7%	8.8%
Global emerging markets	2.3%	5.4%	2.0%	4.8%
Middle East	1.3%	0.3%	1.7%	0.2%
	100.0%	100.0%	100.0%	100.0%

By Sector (excluding cash)	31 July 2014 Company	31 July 2014 FTSE World index	31 January 2014 Company	31 January 2014  FTSE World index
Financials	22.3%	21.8%	22.3%	21.8%
Industrials	14.5%	12.3%	14.0%	12.8%
Consumer services	11.8%	10.5%	12.8%	10.7%
Healthcare	10.8%	10.2%	10.4%	10.1%
Oil and gas	10.5%	9.2%	10.3%	8.5%
Technology	9.7%	10.4%	9.9%	10.0%
Basic materials	7.9%	5.8%	8.1%	5.9%
Consumer goods	5.7%	13.0%	6.4%	13.2%
Telecommunications	4.8%	3.5%	3.8%	3.7%
Utilities	2.0%	3.3%	2.0%	3.3%
	100.0%	100.0%	100.0%	100.0%

By Asset Class (including cash and borrowings)	31 July 2014	31 January 2014
Equities	98.9%	99.7%
Cash	1.1%	0.3%
	100.0%	100.0%

Largest 10 Holdings	31 July 2014 Market Value £000	31 July 2014 % of total portfolio	31 January 2014 Market Value £000	31 January 2014 % of total portfolio
JP Morgan Chase	6,367	3.8	6,279	3.8
Roche	6,028	3.6	4,236	2.6
Apple	5,834	3.4	4,484	2.7
Prudential	5,444	3.2	4,886	3.0
LyondellBasell Industries	5,385	3.2	5,543	3.4
AbbVie	5,014	3.0	4,846	3.0
BG Group	4,830	2.8	4,212	2.6
Verizon Communications	4,680	2.8	-	-
United Technologies	4,528	2.7	5,042	3.1
L Brands	4,509	2.7	2,554	1.6

Unaudited Income Statement

		Six months to 31 July 2014			Six months to 31 July 2013
	Note	Revenue £000	Capital £000	Total £000	Revenue £000	Capital £000	Total £000
Net gains on investments	5	-	9,676	9,676	-	15,615	15,615
Net currency gains/(losses)	8	-	8	8	-	(6)	(6)
Income	3	3,250	-	3,250	3,108	-	3,108
Investment management fee		(140)	(281)	(421)	(139)	(278)	(417)
Other expenses		(217)	-	(217)	(225)	-	(225)
Net return on ordinary activities before taxation		2,893	9,403	12,296	2,744	15,331	18,075
Taxation on ordinary activities	4	(331)	-	(331)	(275)	-	(275)
Net return attributable to shareholders		2,562	9,403	11,965	2,469	15,331	17,800
Net returns per ordinary share	2	2.48p	9.09p	11.57p	2.38p	14.75p	17.13p

Unaudited income statement cont.

		(Audited) Year to 31 January 2014
	Note	Revenue £000	Capital £000	Total £000
Net gains on investments	5	-	7,193	7,193
Net currency gains/(losses)	8	-	(14)	(14)
Income	3	5,108	-	5,108
Investment management fee		(279)	(558)	(837)
Other expenses		(429)	-	(429)
Net return on ordinary activities before taxation		4,400	6,621	11,021
Taxation on ordinary activities	4	(490)	-	(490)
Net return attributable to shareholders		3,910	6,621	10,531
Net returns per ordinary share	2	3.76p	6.37p	10.13p

The total columns of the above statement are the profit and loss accounts of the Company.

The revenue and capital items are presented in accordance with the Association of Investment Companies (AIC) Statement of Recommended Practice.

All revenue and capital items in the above statement derive from continuing operations.

No operations were acquired or discontinued in the six months.

A statement of total recognised gains and losses is not required as all gains and losses of the Company have been reflected in the above statement.

There is no material difference between the net return on ordinary activities before taxation and the net return attributable to shareholders stated above and their historical cost equivalents.

Unaudited Balance Sheet

		As at 31 July 2014		As at 31 July 2013		(Audited) as at 31 January 2014
	Note	£000	£000	£000	£000	£000	£000
Fixed assets
Investments at fair value through profit or loss
Listed on the London Stock Exchange			23,254		23,768
Listed on exchanges abroad			146,224		145,497
	5		169,478		169,265
Current Assets
Debtors	6	403		424
Cash at bank and in hand		1,814		2,443
		2,217		2,867
Creditors
Amounts falling due within one year	7	(628)		(317)
Net current assets			1,589		2,550
Total assets less current liabilities			171,067		171,815
Capital and Reserves
Called-up share capital		5,224		5,224
Capital redemption reserve		10,793		10,793
Special distributable reserve		113,423		114,727
Capital reserve		35,631		34,938
Revenue reserve		5,996		6,133
Total Shareholders' Funds			171,067		171,815		164,201
Net asset value per ordinary share of 5p	2		166.8p		166.2p		157.4p

Unaudited Reconciliation of Movements in Shareholders' Funds

Reconciliation of movements in shareholders' funds for the six months to 31 July 2014	Called up ordinary share capital £000		Capital redemption reserve £000	Special distributable reserve £000	Capital reserve £000		Revenue Reserve £000	Total £000
At 1 February 2014	5,224		10,793	116,249	26,228		5,707	164,201
Ordinary shares bought back during the period	-		-	(2,826)	-		-	(2,826)
Gains on realisation of investments at fair value	-		-	-	5,355		-	5,355
Movement in currency gains/(losses)	-		-	-	8		-	8
Movement in fair value gains/(losses)	-		-	-	4,321		-	4,321
Capitalised expenses	-		-	-	(281)		-	(281)
Net revenue	-		-	-	-		2,562	2,562
Dividends Paid	-		-	-	-		(2,273)	(2,273)
At 31 July 2014	5,224		10,793	113,423	35,631		5,996	171,067
Reconciliation of movements in shareholders' funds for the six months to 31 July 2013	Called up ordinary share capital £000	Capital redemption reserve £000		Special distributable reserve £000	Capital reserve £000	Revenue Reserve £000		Total £000
At 1 February 2013	5,227	10,790		116,378	19,607	7,397		159,399
Ordinary shares bought back during the period	(3)	3		(1,651)	-	-		(1,651)
Gains on realisation of investments at fair value	-	-		-	4,704	-		4,704
Movement in currency gains/(losses)	-	-		-	(6)	-		(6)
Movement in fair value gains/(losses)	-	-		-	10,588	-		10,588
Capitalised expenses	-	-		-	(278)	-		(278)
Capital distributions received	-	-		-	323	-		323
Net revenue	-	-		-	-	2,469		2,469
Dividends paid	-	-		-	-	(3,733)		(3,733)
At 31 July 2013	5,224	10,793		114,727	34,938	6,133		171,815

Reconciliation of movements in shareholders' funds for the year to 31 January 2014	Called up ordinary share capital £000	Capital redemption reserve £000	Special distributable reserve £000	Capital reserve £000	Revenue Reserve £000	Total £000
At 1 February 2013	5,227	10,790	116,378	19,607	7,397	159,399
Ordinary shares bought back during the year	-	-	(2,538)	-	-	(2,538)
Ordinary shares issued during the year	-	-	2,409	-	-	2,409
Ordinary shares cancelled during the year	(3)	3	-	-	-	-
Gains on realisation of investments at fair value	-	-	-	8,964	-	8,964
Movement in currency gains/(losses)	-	-	-	(14)	-	(14)
Movement in fair value gains/(losses)	-	-	-	(2,094)	-	(2,094)
Capitalised expenses	-	-	-	(558)	-	(558)
Capital distributions received	-	-	-	323	-	323
Net revenue	-	-	-	-	3,910	3,910
Dividends paid	-	-	-	-	(5,600)	(5,600)
At 31 January 2014	5,224	10,793	116,249	26,228	5,707	164,201

 

Unaudited Statement of Cash Flow

	Note	Six months to 31 July 2014		Six months to 31 July 2013		(Audited) Year to 31 January 2014
		£000	£000	£000	£000	£000	£000
Net cash inflow from operating activities	8		2,161		2,017		3,297
Capital expenditure and financial investment
Capital distributions		-		323		323
Payment to acquire investments		(21,450)		(22,302)		(44,012)
Proceeds from sales of investments		25,403		27,732		46,530
Net cash inflow from capital expenditure and financial investment			3,953		5,753		2,841
Equity dividends paid			(2,273)		(3,733)		(5,600)
Net cash inflow before financing			3,841		4,037		538
Financing
Repurchase of ordinary share capital		(2,493)		(1,651)		(2,538)
Shares issued for cash		-		-		2,409
New cash outflow from financing			(2,493)		(1,651)		(129)
Increase in cash			1,348		2,386		409
Reconciliation of net cash flow to movements in net cash
Increase in cash			1,348		2,386		409
Foreign exchange movements			8		(6)		(14)
Movement in net cash in the period			1,356		2,380		395
Opening net cash			458		63		63
Closing net cash			1,814		2,443		458

 

Notes to the Financial Statements

1          Accounting policies

a)    Basis of preparation - the financial statements have been prepared under the historical cost convention (modified to include investments at fair value through profit or loss) on a going concern basis and in accordance with applicable UK Accounting Standards and with the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies and Venture Capital Trusts' issued in January 2009. They have also been prepared on the assumption that approval as an investment trust will continue to be granted. The Company is a UK listed company with a predominantly UK shareholder base. The results and the financial position of the Company are expressed in sterling, which is the functional and presentational currency of the Company. The accounting policies have been disclosed consistently and in line with Companies Act 2006.

b)    Income from investments (other than capital dividends), including taxes deducted at source, is included in revenue by reference to the date on which the investment is quoted ex-dividend, or where no ex-dividend date is quoted, when the Company's right to receive payment is established. UK investment income is stated net of the relevant tax credit. Overseas dividends include any taxes deducted at source. Special dividends are credited to capital or revenue, according to the circumstances. Scrip dividends are treated as unfranked investment income; any excess in value of the shares received over the amount of the cash dividend is recognised as a capital item in the income statement. Income from underwriting commission is recognised as earned.

c)    Interest receivable and payable, management fees, performance fees and other expenses are treated on an accruals basis.

d)    The management fee and finance costs in relation to debt are recognised two-thirds as a capital item and one-third as a revenue item in the income statement in accordance with the board's expected long-term split of returns in the form of capital gains and income, respectively. The performance fee is recognised 100% as a capital item in the income statement as it relates entirely to the capital performance of the Company. All expenses are charged to revenue except where they directly relate to the acquisition or disposal of an investment, in which case, they are added to the cost of the investment or deducted from the sale proceeds.

e)    Investments - investments have been designated upon initial recognition as fair value through profit or loss. Investments are recognised and de-recognised at trade date where a purchase or sale is under a contract whose terms require delivery within the time frame established by the market concerned and are initially measured as fair value. Subsequent to initial recognition, investments are valued at fair value. For listed investments, this is deemed to be bid market prices. Gains and losses arising from changes in fair value are included in net profit or loss for the year as a capital item in the income statement and are ultimately recognised in the capital reserve.

In accordance with FRS29, all investments have been categorised as Level 1 - quoted in an active market.

f)     Transaction costs incurred on the purchase and disposal of investments are recognised as a capital item in the income statements.

g)    Monetary assets and liabilities expressed in foreign currencies are translated into sterling at rates of exchange ruling at the date of the balance sheet or at the related forward contract rate. Transactions in foreign currency are converted to sterling at the rate ruling at the date of the transaction or, where forward foreign currency contracts have been taken out, at contractual rates and included as an exchange gain or loss in the capital reserve or the revenue account depending on whether the gain or loss is of a capital or revenue nature.

h)    Cash at bank comprises cash and demand deposits which are readily convertible to a known amount of cash and are subject to insignificant risk of changes in value.

Other debtors and creditors (excluding borrowings) do not carry any interest, are short-term in nature and are accordingly stated at nominal value as reduced by appropriate allowances for estimated irrecoverable amounts.

i)      Dividend payable - under FRS21 fourth interim dividends should not be accrued in the financial statements unless they have been approved by shareholders before the Balance Sheet date. First, second and third interim dividends are only recognised when they have been paid. Dividends payable to equity shareholders are recognised in the Reconciliation of Movements in Shareholders' Funds when they have been approved by shareholders in the case of a fourth interim dividend, or paid in the case of the first, second and third interim dividend and become a liability of the Company.

j)     Capital reserve - gains or losses on realisation of investments and changes in fair values of investments are transferred to the capital reserve. Any changes in fair values of investments that are not readily convertible to cash are treated as unrealised gains or losses within the capital reserve. The capital element of the management fee and relevant finance costs are charged to this reserve. Any associated tax relief is also credited to this reserve.

The cost of share buybacks include the amount of consideration paid, including directly attributable costs and are deducted from the special distributable reserve until the shares are cancelled.

The special distributable reserve was created through the cancellation and reclassification of the share premium account in 1999 and 2004 and thereafter the cost of share buybacks are deducted from this reserve.

k)    The charge for taxation is based upon the revenue for the year and is allocated according to the marginal basis between revenue and capital using the Company's effective tax rate of corporation tax for the accounting period.

l)     Deferred taxation - deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events that result in an obligation to pay more or a right to pay less tax in future have occurred at the balance sheet date measured on an undiscounted basis and based on enacted tax rates. This is subject to deferred tax assets only being recognised if it is considered more likely than not that there will be suitable profits from which the future reversal of the underlying temporary differences can be deducted. Timing differences are differences arising between the Company's taxable profits and its results as stated in the accounts which are capable of reversal in one or more subsequent periods. Due to the Company's status as an investment trust company and its intention to continue meeting the conditions required to obtain approval in the foreseeable future, the Company has not provided deferred tax on any capital gains and losses arising on the revaluation or disposal of investments.

m)   The Company can use derivative financial instruments to manage risk associated with foreign currency fluctuations arising on the investments in currencies other than sterling. This is achieved by the use of forward foreign currency contracts. Derivative financial instruments are recognised initially at fair value on the contract date and subsequently remeasured to the fair value at each reporting date. The fair values of the derivative financial instruments are included within non-current assets or within current assets or current liabilities depending on the nature and motive of each derivative transaction.

2. 

	Six months to 31 July 2014	Six months to 31 July 2013	Year to 31 January 2014
Returns and net asset value
The return and net asset value per ordinary share are calculated with reference to the following figures:
Revenue return
Revenue return attributable to ordinary shareholders	£2,562,000	£2,469,000	£3,910,000
Weighted average number of shares in issue during period*	103,447,432	103,925,358	103,917,881
Return per ordinary share	2.48p	2.38p	3.76p
Capital return
Capital return attributable to ordinary shareholders	£9,403,000	£15,331,000	£6,621,000
Weighted average number of shares in issue during period*	103,447,432	103,925,358	103,917,881
Return per ordinary share	9.09p	14.75p	6.37p
Total return
Total return per ordinary shares	11.57p	17.13p	10.13p
	Six months to 31 July 2014	Six months to 31 July 2013	Year to 31 January 2014
Net asset value per share
Net assets attributable to shareholders	£171,067,000	£171,815,000	£164,201,000
Number of shares in issue at the period end*	102,574,515	103,379,548	104,293,171
Net asset value per share	166.8p	166.2p	157.4p

During the six months to 31 July 2014 there were 1,718,656 shares bought back into Treasury at a cost of £2,826,000. Between 1 August and 10 September 2014, 752,042 ordinary shares of 5p each were bought back into Treasury at a cost of £1,283,465. There have been no shares issued from Treasury during the six months to 31 July 2014.

*Calculated excluding shares held in Treasury.

3. 

	Six months to 31 July 2014 £000	Six months to 31 July 2013 £000	Year to 31 January 2014 £000
Income from investments
From listed investments
UK equities	481	448	792
International equities	2,767	2,659	4,312
Other income
Interest on deposits	2	1	4
	3,250	3,108	5,108

During the six months to 31 July 2014, the Company received no capital dividends. There was a capital dividend of £323,000 from ProSiebenSat.1 Media, during the year to 31 January 2014.

4.

	Six months to 31 July 2014			Six months to 31 July 2013			Year to 31 January 2014
	Revenue £000	Capital £000	Total £000	Revenue £000	Capital £000	Total £000	Revenue £000	Capital £000	Total £000
Taxation on ordinary activities
Foreign tax	331	-	331	275	-	275	490	-	490

5.

	As at 31 July 2014 £000	As at 31 July 2013 £000	As at 31 January 2014 £000
Investments
Opening valuation	163,755	158,894	158,894
Opening unrealised investment holding gains	(25,304)	(27,398)	(27,398)
Opening cost	138,451	131,496	131,496
Purchases at cost	21,450	18,630	40,340
Disposal proceeds	(25,403)	(23,551)	(42,349)
Net profit on disposal of investments	5,355	4,704	8,964
Disposal at cost	(20,048)	(18,847)	(33,285)
Closing cost	139,853	131,279	138,451
Closing unrealised investment holding gains	29,625	37,986	25,304
Closing valuation	169,478	169,265	163,755
Gain on investments	As at 31 July 2014 £000	As at  31 July 2013 £000	As at 31 January 2014 £000
Net profit on disposal of investments	5,355	4,704	8,964
Net gain/(loss) on revaluation of investments	4,321	10,588	(2,094)
Capital distributions	-	323	323
	9,676	15,615	7,193

The transaction cost in acquiring investments during the period was £44,000 (2013: £33,000). For disposals, transaction costs were £36,000  (2013: £39,000).

6. 

	As at 31 July 2014 £000	As at 31 July 2013 £000	As at 31 January 2014 £000
Debtors:
Dividends receivable	295	305	160
Interest accrued	1	-	-
Taxation recoverable	101	114	106
Other debtors	6	5	5
	403	424	271

7.

	As at 31 July 2014 £000	As at 31 July 2013 £000	As at 31 January 2014 £000
Creditors: amounts falling due within one year
Amount due to brokers	333	-	-
Due to Martin Currie	212	231	204
Other creditors	83	86	79
	628	317	283

8. 

	Six months to 31 July 2013 £000	Six months to 31 July 2013 £000	Year to 31 January 2014 £000
Reconciliation of net return on ordinary activities before taxation to net cash inflow from operating activities
Return on ordinary activities before taxation	12,296	18,075	11,021
Adjustments for:
Net gains on investments	(9,676)	(15,615)	(7,193)
Effect of foreign exchange rates	(8)	6	14
(Increase)/decrease in dividends receivable, interest accrued and other debtors	(137)	(136)	9
Increase/(Decrease) in other creditors and amounts due to Martin Currie	12	6	(28)
Overseas withholding tax suffered	(326)	(319)	(526)
Net cash inflow from operating activities	2,161	2,017	3,297

9 Interim report

The financial information contained in this half-yearly financial report does not constitute statutory accounts as defined in S434-6 of the Companies Act 2006. The financial information for the six months ended 31 July 2014 has not been audited.

The information for the year ended 31 January 2014 has been extracted from the latest published audited financial statements which have been filed with the Registrar of Companies. The report of the auditors on those accounts contained no qualification or statement under s498 (2),(3) or (4) of the Companies Act 2006.

10 Post balance sheet event

Since 1 August 2014 a further 752,042 Ordinary shares of 5p each have been bought back into Treasury at a cost of £1,283,465.

 

END

 

 

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