Final Results

RNS Number : 7598T

Personal Assets Trust PLC

11 June 2009

 



To:            RNS

From:        Personal Assets Trust plc

Date:         11 June 2009

Results for the year ended 30 April 2009

The Directors of Personal Assets Trust (PAT) are pleased to announce the Company's results for the year ended 30 April 2009. 

The key points are as follows:

• PAT is run expressly for private investors. Its investment policy is to protect and increase (in that order) the value of shareholders' funds over the long term and to earn as high a total return as is compatible with a risk equivalent to that of the FTSE All-Share Index.

• The Board appointed Troy Asset Management as Investment Adviser following the sudden and untimely death of Ian Rushbrook on 12 October 2008. 

• Over the year to 30 April 2009 PAT's net asset value per share ('NAV') fell by 10.8%. This compares to a fall of 29.9% in the Company's benchmark, the FTSE All-Share Index. PAT's share price fell by £25.25 during the year and at 30 April 2009 was £233.00. An analysis of performance is provided in the Chairman's Statement and Investment Adviser's Report below.

• Since PAT became independently managed in 1990 the Board has chosen to measure PAT's performance over rolling three-year periods. Over the three years to 30 April 2009 the net asset value per share fell by 10.3% compared to the FTSE All-Share Index's fall of 29.3%, an outperformance of 26.9%.

• During the year, PAT continued to maintain a high level of effective liquidity (30 April 2009: 30% (includes 6% in Gold Bullion), 30 April 2008: 100%).

• The Directors intend PAT's annual dividend rate to grow at least in line with inflation. Two interim dividends have been declared and paid during the year, totalling £5.00 per ordinary share. Together these represent an increase of 8.7% over the corresponding payments for the previous year, compared to inflation (RPI) of -1.2%.  

• The Board's stated policy is for the present dividend rate to grow in real terms and never to cut the dividend rate, so that shareholders know that each half-yearly payment will at least equal the previous one. Therefore, the first interim dividend for the year ended 30 April 2010, expected to be paid in October 2009, will be at least £2.50 per share and total dividends for the year will be not less than £5.00 per share.

The Chairman, Robert White, said:

'This has been a tumultuous year, not only in world markets but, sadly, also in your Company with the sudden and untimely death of Ian Rushbrook last October. We have all felt the loss keenly and our tribute to an outstanding man, composed by Robin Angus for 'The Scotsman' at the time of Ian's death, appears at the front of the Annual Report. Life, however, has to go on and your Board has, since last October, spent much time and energy in searching for and finding a successor. It may seem invidious to pick out one member of the Board for special mention but we were all very aware of the exceptional contribution made by Gordon Neilly and that has been recognised in a tangible manner.

In our selection of Troy Asset Management to succeed Ian, we chose a group to which the addition of Personal Assets Trust ('PAT') was not only significant to it but also its first closed end fund. Further, its Chief Executive, Sebastian Lyon, was known to us as a shareholder in the Trust, might almost be described as a Rushbrook disciple and has an investment record which compares very favourably with most.

Having listened to innumerable members of the Government say 'No one could have forecast this calamity' I thought, before composing this statement, I would read Ian's contributions to this Report in each of the past five years. One can only regret that Mr Greenspan among many others - Gordon, Fred and Andy come quickly to mind - had not been shareholders in the Company. The world might now be a happier place if they had read and inwardly digested. If you have half an hour to spare, you can find these on our new website which has been created in the past few months to keep shareholders, and others, aware of all events and changes at PAT. It can be found at www.patplc.co.uk.

I wonder if anyone has counted the number of times Gordon Brown has used the word 'global' in the past eighteen months. I imagine in West Fife this is translated as 'it wisnae me' and it would be less than fair, though tempting, to attribute all of the world's problems to him. Nevertheless, he cannot walk away from much of the blame for the UK's problems - and judging by the Euro election results the electorate have reached a similar conclusion - having put in place a regulatory system in the financial sector which was plainly inadequate and used the resources of this country in a manner suggesting he actually believed he had abolished boom and bust. Further, he has now put in place solutions to the problems which seem to involve huge risks and mortgage our grandchildren's futures. As one who, half a century ago, had to buy his way through an economics exam (37/6d), I hesitate to pronounce on such matters but trying to solve a problem caused by too much debt with even more debt strikes me as risky. I have heard it said that alcoholics can drink themselves sober but doubt this analogy is appropriate to the circumstances here.

Let me turn now to our performance in this past year. We were concerned that, following Ian's death, our capital base would be eroded by shareholders who felt it was the end of an era. We have been greatly encouraged, therefore, by the fact that our capital base has remained stable and, indeed, has increased by rather more than 12,000 shares in the course of the year. Our high levels of liquidity throughout most of this year have produced a very solid outperformance of our benchmark even if we are no richer. Our liquidity has been gradually reduced in the course of the year and we have, therefore, shared to some extent in the remarkably strong rally in March and April. I use the phrase 'to some extent' as this rally has largely bypassed quality and has been classified by some as 'a dash for trash'. As you will read in the following pages, our Investment Adviser is less than convinced that we are out of the woods.

We have managed to achieve a compound rate of dividend growth in the past five years of 10%, a target we set ourselves some years ago and long before deposit interest rates more or less vanished and even major companies felt obliged by economic forces to reduce or eliminate their dividends. In the circumstances, an increase of 8.7% we feel is a creditable effort but we must warn shareholders that in the foreseeable future we may struggle to achieve increases of this magnitude.

Our Annual General Meeting has become a very popular event and, as we imagine many of you will wish to meet and listen to Sebastian Lyon, we have changed the venue to accommodate larger numbers and plan to offer attendees light refreshments at the conclusion of the meeting. If you intend coming to the meeting, it will be helpful if you will return the attendance card.

Several of our southern shareholders have asked if we might hold our Annual General Meeting in London. We are inclined to the view that this is unlikely but have decided that we should make a presentation in London at the time of our interim figures in November. Depending on the response, this could become an annual event.

I have now occupied this chair for 15 years and, even if in this last year we have all suffered a grievous loss, it has been a hugely enjoyable experience surrounded by immensely able and agreeable people. When, in the last two or three years, I  have raised the matter with Ian and Robin in particular, they were kind enough to say that I could stay as long as I liked. With the number alongside my photograph getting higher and higher, however, and at a time when other major changes have occurred, I think it is time to demit office before I have to interpret signals. I shall, therefore, retire at the conclusion of the Annual General Meeting. I do know, however, that I pass the baton to a man, Hamish Buchan, with long and wide experience in the sector - experience which has included recently a term of office as Chairman of The Association of Investment Companies - and have no doubt that the man we have chosen as our investment adviser will prove a worthy successor to his predecessor. To maintain the Rushbrook connection we have invited Ian's elder son, Frank, to join the Board. Frank works with F&C Asset Management, with a particular involvement on the European side. We have also invited Stuart Paul to join the Board.  Stuart is Joint Managing Partner of Asia Pacific Global Emerging Markets equity team at First State Investors and brings with him a wider knowledge of international markets than any of the current members of the Board. Both will take up their appointment at the conclusion of the Annual General Meeting.' 

The Investment Adviser, Sebastian Lyon, said:

'Over the year to 30 April 2009 the FTSE All-Share Index ('FTSE') our benchmark, fell by 29.9%, while the net asset value per share ('NAV') of Personal Assets Trust ('PAT') declined by 10.8%, an outperformance of 27.2%.  However, my predecessor, Ian Rushbrook's preferred starting point was to report PAT's performance from 30 April 2000.  This nine year phase is the period since stock markets peaked and a secular bear market began.  It also coincides with Ian's correct analysis, that since 2000, the Federal Reserve policy has been woefully misguided.  In those nine years our NAV has increased by 14.9%, a figure which compares with our benchmark's fall of 27.6%, an outperformance of 58.7%.

As a Personal Assets shareholder myself for the past ten years, I benefited from Ian's outstanding performance as well as his wisdom.  His approach to investment has had a major influence on the way I have managed money at Troy Asset Management Limited ('Troy') for the past eight years.  The prevailing industry view is that asset allocation is a dark art and does not add value.  The convention (even after nine years of falling stock markets) is to remain fully invested.  Ian endeavoured to protect shareholders from the roller coaster ride of markets and it is fitting that he succeeded in insulating the Trust's investors from the ravages of the past year.  Our aim is to continue where Ian left off, by combining strategic asset allocation with stock selection.  We intend to invest in companies that will prove resilient, even in the difficult economic environment we anticipate in the next few years.

The financial and economic mess that Ian predicted came to pass last year.  Stock markets were slow to realise the implications of the credit crisis that began immediately prior to the collapse of Northern Rock in August 2007.  This financial crisis did not hit despite the actions of policymakers.  It hit because of them.  Alan Greenspan's decision to keep interest rates too low for too long and Gordon Brown's woeful management of the public finances combined with abysmal financial regulation were all avoidable.  We are left with government, corporate and consumer balance sheets ill equipped to cope with a sharply deteriorating economy.  Policy makers have, until recently, been behind the curve.  They have now thrown not only the kitchen sink at the problems but the kitchen too.  In the US, between 1929 and 1932, GDP fell by 27% while fiscal stimulus was 8.3% of GDP.  Today, US GDP has suffered a drop of only 3.3% from the peak which has, to date been offset by a stimulus of 30% of GDP.  Over three times the medicine for one tenth of the fall.  The politicians and central bankers who got us into this state are trying to convince us that they have the answers, but they will not permit the market to clear and allow asset prices to find their natural levels.  No one knows the outcome of these decisions, but interventions lead to a lack of clarity.

We live in a world of dishonest money.  The largest UK gilt and US Treasury issuance ever is being sold, only to be bought back, by newly printed cash via 'quantitative easing'.  This can only distort investor perceptions.  Governments have a track record of monetising their debt - inflation is the lesser evil.  The seeds have, therefore, been sown for much higher prices down the road.  Government bonds, once described as offering risk free returns, now offer 'return-free risk'.  Investors tend to focus on nominal values, but inflation destroys the real wealth of the prudent.  Our intention, in the years to come, will be to endeavour to protect shareholders' from this ultimate stealth tax.

Stock markets have rallied from their lows in March.  We have increased PAT's net equity exposure from zero in April 2008 to 70% today and you will see on the table below how the Trust's asset allocation has changed through the year.  Valuations are lower than they were last April, but risks remain.  Shareholders will see on page 10 of the Annual Report that we have made a number of changes to the portfolio.  Our policy is to buy holdings in stocks that we believe offer sustainable and growing dividends but we will also continue to use FTSE futures for asset allocation purposes.  Our preference is for businesses with strong balance sheets and predictable cash flows.  The bias will be towards UK equities but we may, like Ian, invest in US stocks as well.  In contrast to previous policy, we may also occasionally invest in European stocks and recently we acquired a holding in Nestlé.  This investment approach, which has served Troy's investors well over the long term, will from time to time be in or out of fashion.  For this reason, performance is likely to vary from the benchmark. This experience will not be unfamiliar to PAT shareholders!

In addition to the portfolio's equity exposure and 24% liquidity (held in US Treasury Index Protected Securities hedged back into sterling) we have acquired a holding in Gold Bullion Securities, shares quoted on the London stock market backed by physical gold. In a world where central bankers are openly printing money, it leaves investors with the real risk of currency compromise.  Sterling and the US dollar look very vulnerable.  As Ian highlighted in his last annual report to shareholders 'both the destruction of the Dollar as the world's reserve currency and much higher inflation' were realistic possibilities.  Gold is an insurance policy against such uncertainty and while I accept it is a volatile asset, so are equities.  With interest rates at such low levels the opportunity cost of holding gold is far lower than it has been for a century.

A year ago, Ian identified the credit crisis as posing the combined threats to the world economy of 'fire and ice' (inflation and recession).  The ice has arrived but the fire is still to come.'

Date		Liquidity  (%)		Gold  (%)		Direct Equities  (%)		FTSE  Futures  (%)		FTSE 100 Level
30 April 2008		100		-		39		-39		6,087
31 May 2008		101		-		38		-39		6,054
30 June 2008		50		-		36		14		5,626
31 July 2008		25		-		35		40		5,412
31 August 2008		40		-		41		19		5,637
30 September 2008		42		-		39		19		4,902
31 October 2008		13		-		38		49		4,377
30 November 2008		16		-		38		46		4,288
31 December 2008		28		-		36		36		4,434
31 January 2009		44		-		33		23		4,150
28 February 2009		45		-		32		23		3,830
31 March 2009		37		6		35		22		3,926
30 April 2009		24		6		47		23		4,244

For further information contact:

Robert White

Chairman

Tel: [phone]

Steven Budge

Executive Office

Tel: [phone]

The Company's Income Statement, Balance Sheet, Statement of Changes in Equity and Cash Flow Statement follow.

  Income Statement

	Year ended 30 April 2009
	Revenue	Capital	Total
	£'000	£'000	£'000
Income
Investment income	5,164	-	5,164
Other operating income	491	-	491
	5,655	-	5,655
Gains on investments held at fair value	-	3,728	3,728
Gains on derivatives held at fair value	-	1,911	1,911
Foreign exchange differences	-	(26,359)	(26,359)
Total income	5,655	(20,720)	(15,065)
Expenses	(1,759)	-	(1,759)
Profit/(loss) before tax	3,896	(20,720)	(16,824)
Tax	-	-	-
Profit/(loss) for the year	3,896	(20,720)	(16,824)
Earnings per share	£5.34	(£28.43)	(£23.09)
The 'Total' column of this statement represents the Company's Income Statement, prepared in accordance with IFRS.   Under IFRS the Income Statement is the equivalent of the Statement of Total Return. The supplementary revenue and capital return columns are both prepared under guidance published by the Association of Investment Companies. All items in the above statement derive from continuing operations.
Supplementary Information
Dividends per share	£5.00
Dividends paid out of current year revenue	£'000
First interim dividend of £2.50 per share	1,849
Second interim dividend of £2.50 per share	1,824
	3,673

  Income Statement

	Year ended 30 April 2008
	Revenue	Capital	Total
	£'000	£'000	£'000
Income
Investment income	5,219	-	5,219
Other operating income	953	-	953
	6,172	-	6,172
Losses on investments held at fair value	-	(11,670)	(11,670)
Gains on derivatives held at fair value	-	5,962	5,962
Foreign exchange differences	-	(346)	(346)
Total income	6,172	(6,054)	118
Expenses	(2,099)	-	(2,099)
Profit/(loss) before tax	4,073	(6,054)	(1,981)
Tax	(37)	-	(37)
Profit/(loss) for the year	4,036	(6,054)	(2,018)
Earnings per share	£5.59	(£8.38)	(£2.79)

  Balance Sheet

			As at 30 April 2009			As at 30 April 2008
			£'000			£'000
Non current assets
Investments held at fair value			158,183			170,546
Current assets
Other receivables			5,039			9,397
Cash and cash equivalents			8,202			14,660
			13,241			24,057
Total Assets			171,424			194,603
Current liabilities
Other payables			(292)			(5,939)
Total liabilities			(292)			(5,939)
Net assets			171,132			188,664
Capital and reserves
Ordinary share capital			9,386			9,386
Share premium account			87,224			87,582
Capital redemption reserve			219			219
Special reserve (distributable)			22,517			22,517
Treasury share reserve			(1,346)			(4,669)
Other Capital reserves			49,457			70,177
Revenue reserve			3,675			3,452
Total equity			171,132			188,664
Net asset value per share			£229.64			£257.37

Statement of Changes in Equity

For the year ended  30 April 2009	Share Capital	Share Premium Account	Capital Redemption Reserve	Special Reserve	Treasury Reserve	Other Capital Reserves	Revenue Reserve	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Balance as at 30 April 2008	9,386	87,582	219	22,517	(4,669)	70,177	3,452	188,664
Loss for the year	-	-	-	-	-	(20,720)	3,896	(16,824)
Issue of ordinary shares	-	(358)	-	-	12,926	-	-	12,568
Buy-back of ordinary shares	-	-	-	-	(9,603)	-	-	(9,603)
Dividends paid	-	-	-	-	-	-	(3,673)	(3,673)
Balance as at 30 April 2009	9,386	87,224	219	22,517	(1,346)	49,457	3,675	171,132
For the year ended  30 April 2008	Share Capital	Share Premium Account	Capital Redemption Reserve	Special Reserve	Treasury Reserve	Other Capital Reserves	Revenue Reserve	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Balance as at 30 April 2007	9,386	87,098	219	22,517	(6,047)	76,498	2,745	192,416
Transfer*	-	267	-	-	-	(267)	-	-
Loss for the year	-	-	-	-	-	(6,054)	4,036	(2,018)
Issue of ordinary shares	-	217	-	-	4,532	-	-	4,749
Buy-back of ordinary shares	-	-	-	-	(3,154)	-	-	(3,154)
Dividends paid	-	-	-	-	-	-	(3,329)	(3,329)
Balance as at 30 April 2008	9,386	87,582	219	22,517	(4,669)	70,177	3,452	188,664

* The premium on shares issued from Treasury has been transferred to Share premium.

  Cash Flow Statement 

	Year Ended 30 April	Year Ended 30 April
	2009	2008
	£'000	£'000
Operating activities
Loss before taxation	(16,824)	(1,981)
(Gain)/loss on investments	(6,036)	5,708
Foreign exchange differences at fair value through the profit or loss	26,359	346
Operating cash flows before movements in working capital	3,499	4,073
Decrease in other receivables	111	173
Increase/(decrease) in other payables	184	(87)
Net cash from operating activities before taxation	3,794	4,159
Taxation	(51)	(37)
Net cash inflow from operating activities	3,743	4,122
Investing activities
Purchases of investments	(401,890)	(332,186)
Sales of investments	418,441	344,174
Net cash inflow from investing activities	16,551	11,988
Financing activities
Equity dividends paid	(3,673)	(3,329)
Issue of ordinary shares	12,568	4,749
Buy-back of ordinary shares	(9,603)	(3,154)
Net cash outflow from financing activities	(708)	(1,734)
Net increase in cash and cash equivalents	19,586	14,376
Cash and cash equivalents at the start of the year	14,660	155
Effect of foreign exchange rates	(26,044)	129
Cash and cash equivalents at the end of the year	8,202	14,660

Principal Risks and Risk Management

The Board believes that the principal risks to shareholders, which it seeks to mitigate through continual review of its investments and through shareholder communication, are events or developments which can affect the general level of share prices, including, for instance, inflation or deflation, economic recessions and movements in interest rates.

Other risks faced by the Company include breach of regulatory rules which could lead to suspension of the Company's Stock Exchange listing, financial penalties, or a qualified audit report. Breach of Section 842 of the Income and Corporation Taxes Act 1988 could lead to the Company being subject to tax on capital gains.

In the mitigation and management of these risks, the Board regularly monitors the investment environment and the management of the Company's investment portfolio, and applies the principles detailed in the guidance provided by the Financial Reporting Council.

Statement of Directors' Responsibilities in Respect of the Annual Financial Report

In accordance with Chapter 4 of the Disclosure and Transparency Rules, we confirm that to the best of our knowledge:

• The financial statements contained within the Annual Report for the year ended 30 April 2009, of which this statement of results is an extract, have been prepared in accordance with applicable International Financial Reporting Standards, on a going concern basis, and give a true and fair view of the assets, liabilities, financial position and return of the Company;
•  The Chairman's Statement and Investment Adviser's Report include a fair review of the important events that have occurred during the financial year and their impact on the financial statements;
• 'Principal Risks and Risk Management' includes a description of the Company's principal risks and uncertainties; and
• The Annual Report includes details of related party transactions, if any, that have taken place during the financial year.

On behalf of the Board

Robert P White    

Chairman    

11 June 2009

Notes:

 

1.         The financial statements of the Company, which are the responsibility of, and were approved by the Board on 11 June 2009, have been prepared in accordance with International Financial Reporting Standards (“IFRS”). These comprise standards and interpretations approved by the International Accounting Standards Board (“IASB”), together with such interpretations by the International Accounting Standards and Standing Interpretations Committee as have been approved by the IASB and still remain in effect, to the extent that these have been adopted by the European Union.

Where the presentational guidance set out in the Statement of Recommended Practice (“the SORP”) for investment trusts issued by the Association of Investment Companies (“the AIC”) in January 2009 is consistent with the requirements of IFRS, the Directors have sought to prepare the financial statements on a basis compliant with the recommendation of the SORP.

2.         Return per ordinary share is based on a weighted average of 728,778 ordinary shares in issue during the year (2008 – 722,662).

 

3.         Net asset value per ordinary share is based on the 745,231 ordinary shares in issue as at 30 April 2009 (2008 – 733,051).

 

4.         During the year the Directors allotted 55,237 ordinary shares from Treasury and bought back 43,057 ordinary shares to be held in Treasury. At the year end the Company held 5,645 ordinary shares in Treasury.

 

5.         At 30 April 2009 the sterling value of the US Treasury Strip and US Equity exposure was protected by a forward currency contract.

 

6.         Financial Instruments

The Company holds investments in listed companies and fixed interest securities, holds cash balances and has debtors and creditors. It also invests in FTSE 100 Futures and may from time to time enter into forward currency contracts. Cash balances are held for future investment and forward currency contracts are used to manage the exchange risk of holding foreign investments.

The fair value of the financial assets and liabilities of the Company at 30 April 2009 is not different from their carrying value in the financial statements.

The Company is exposed to various types of risk that are associated with financial instruments. The most important types are credit risk, liquidity risk, interest rate risk, market price risk and foreign currency risk.

The Board reviews and agrees policies for managing its risk exposures. These policies are summarised below and have remained unchanged for the year under review.

Credit Risk

Credit risk is the risk that an issuer or counterparty will be unable or unwilling to meet a commitment that it has entered into with the Company.

The Company’s principal financial assets are investments, bank balances, cash and other receivables, which represent the Company’s maximum exposure to credit risk in relation to financial assets. The Company did not have any exposure to any financial assets which were passed due or impaired at the year end.

The Company is exposed to potential failure by counterparties to deliver securities for which the Company has paid, or to pay for securities which the company has delivered. A list of pre-approved counterparties used in such transactions is maintained, and regularly reviewed by the Company, and transactions must be settled on a basis of delivery against payment. Broker counterparties are selected based on a combination of criteria, including credit rating, balance sheet strength and membership of a relevant regulatory body. Risk relating to unsettled transactions is considered to be small because of the short settlement period involved and the credit quality of the brokers used.

All of the assets of the Company, other than cash deposits and the exposure to the FTSE 100 Future, are held by JPMorgan Chase Bank, the Company’s custodian. Bankruptcy or insolvency of the custodian might cause the Company’s rights with respect of the securities held by the custodian to be delayed or limited. The Board monitors the Company’s risk by reviewing the custodian’s internal control reports on a regular basis.

The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit ratings, rated AA or higher, assigned by international credit rating agencies. Bankruptcy or insolvency of such financial institution might cause the Company’s ability to access cash placed on deposit to be delayed or limited. The Company has no concentration of credit risk and exposure is spread over a large number of counterparties.

Market Price Risk

The fair value of equity and other financial securities held in the Company’s portfolio fluctuates with changes in market prices. Prices are themselves affected by movements in currencies and interest rates and by other financial issues including the market perception of future risks. The Board sets policies for managing this risk and meets regularly to review full, timely and relevant information on investment performance and financial results. The management of market price risk is part of the fund management process and is fundamental to equity investment. The portfolio is managed with an awareness of the effects of adverse price movements in the UK equity market with an objective of maximising overall returns to shareholders.

The Company continued to use derivatives during the year. These contracts were entered into to manage the Company’s effective liquidity.

Liquidity Risk

Liquidity risk is the risk that the Company will encounter in realising assets or otherwise raising funds to meet financial commitments. The risk of the Company not having sufficient liquidity at any time is not considered by the Board to be significant, given the liquid nature of the portfolio of investments and the level of cash and cash equivalents ordinarily held. Cash balances are held with reputable banks with a credit rating of AA or higher, usually on overnight deposit. The Investment Adviser reviews liquidity at the time of each investment decision. The Board reviews liquidity exposure at each meeting.

All of the Company’s financial liabilities at 30 April 2009 have a maturity period of less than three months.

Interest Rate Risk

Some of the Company’s financial instruments are interest bearing. As such, the Company is exposed to interest rate risk due to fluctuations in the prevailing market rate.

Floating Rate

When the Company holds cash balances, such balances are held on overnight deposit accounts and call deposit accounts. The benchmark rate which determines the interest payments received on cash balances is the bank base rate, which at 30 April 2009 was 0.50% in the UK (2008: 5.00%).

Foreign Currency Risk

The Company invests in overseas securities.

	2009	2008
Currency exposure at 30 April:	£’000	£’000
US Dollars
Fixed asset investments	88,325	100,493
Swiss Francs
Fixed asset investments	3,320	–

At 30 April 2009 the Sterling cost of the US Treasury and US Equity exposure was protected by a forward currency contract. The gain of £754,000 (2008: gain of £1,069,000) on the US$122,100,000 (2008: US$ 200,000,000) sold forward against £83,154,000 (2008: £102,144,000) is included in debtors (2008: debtors). All foreign exchange contracts in place at 30 April 2009 are due to mature within one month.

Given the policy to hedge currency risk by entering into forward foreign exchange currency contracts, the Board view the weakening or strengthening of Sterling against the US Dollar as having minimal impact on either income for the period or net asset value as at 30 April 2009.

7.         These are not statutory accounts in terms of Section 434 of the Companies Act 2006. Full audited accounts for the year to 30 April 2009 will be sent to shareholders in June 2009 and will be available for inspection at 80 George Street, Edinburgh, the registered office of the Company. The full annual report and accounts will be available on the Company’s website www.patplc.co.uk.

 

8.         The audited accounts for the year ended 30 April 2009 will be lodged with the Registrar of Companies following the Annual General Meeting to be held on 16 July 2009.

 

 

 

END

 

 

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