Half-year Report

RNS Number : 5625Q

Schroder Asian Total Retn InvCo PLC

13 September 2017

 

Half Year Report

Schroder Asian Total Return Investment Company plc hereby submits its Half Year Report for the period ended 30 June 2017 as required by the UK Listing Authority's Disclosure Guidance and Transparency Rule 4.2. 

The Half Year Report is also being published in hard copy format and an electronic copy of that document will shortly be available to download from the Company's webpage. Please click on the following link to view the document:

http://www.rns-pdf.londonstockexchange.com/rns/5625Q_-2017-9-12.pdf

The Company has submitted a pdf of the hard copy format of its Half Year Report to the National Storage Mechanism and it will shortly be available for inspection at www.morningstar.co.uk/uk/NSM.

Enquiries:

Andrea Davidson

Schroder Investment Management Limited                                                                            Tel: [phone]

12 September 2017

Half Year Report and Accounts for the six months ended 30 June 2017

Interim Management Report

Chairman's Statement

Performance

I am pleased to report that the Company has performed strongly since the year end, continuing the excellent track record of the past few years. During the six months to 30 June 2017, the Company produced a net asset value ("NAV") total return of 19.2%, outperforming both the Reference Index, which produced a total return of 14.0%, and the peer group average NAV total return of 17.6%.

Further details on performance may be found in the Portfolio Managers' review.

Promotion and discount management

The Board remains focused on promotion of the Company's shares based on the distinctive characteristics of the Company's strategy and the differentiation of the opportunities offered by the Company from those offered by the peer group.

In the six months to 30 June 2017, increased demand for the Company's shares saw a sustained narrowing of the discount, which reduced to 0.9% at 30 June 2017 from 4.3% at the beginning of the period. The average discount to NAV during the six month period was 4.2%, compared with an average of 9.2% for the peer group.

At the Annual General Meeting held in April 2017, the authority from shareholders to reissue ordinary shares from treasury at a discount of no greater than 4% to the NAV per ordinary share was renewed. During the period, the Board has utilised this authority to issue 4,225,000 ordinary shares, raising £11.9m for the Company and providing liquidity to investors. It is pleasing to see the discount trading closer to NAV and the Board is hopeful that the continued narrowing of the discount will allow it to issue shares at a premium in the future.

Gearing and the use of derivatives

The Board has agreed a disciplined framework for gearing, based on a number of valuation indicators, and it will not exceed 30% of net asset value. The maximum gearing level during the period was 9.2%.

The portfolio managers continued to use gearing during the period and at 30 June 2017, it stood at 4.2%. However, adjusting for derivative protection brings net exposure slightly below 100% at the end of June.

Outlook

As you will read in the Portfolio Managers' Review, the evidence points to markets being frothy though somewhat short of "bubble" conditions following the very strong performance over the last couple of years. Protecting these gains is at the forefront of our minds and the managers are likely to further de-risk the portfolio both through increasing the capital protection and by trimming back on stocks they perceive as having higher risk. It would be remarkable if markets continue to deliver such strong returns over the second half of our financial year.

David Brief

Chairman

12 September 2017

Portfolio Managers' Review

Performance analysis

Asian equity markets delivered solid returns for the first half of the year, with the Reference Index - the MSCI AC Asia Pacific ex-Japan Index - rising 14.0% in sterling terms. Investor sentiment was buoyed by hopes of a pick-up in global growth and as in other global markets, regional market performance was led by strong gains in the internet and technology stocks. The less market sensitive telecoms and utilities sectors lagged, whilst the energy sector was the weakest performer as falling oil prices continued to weigh on the earnings outlook for oil stocks across the region.

On a country basis there was a significant divergence of returns. The tech and internet heavy Korean and Chinese stock markets performed best whereas the Australia and ASEAN markets were generally lacklustre. Korea was also buoyed by the election of new president Moon Jae-In, raising the hopes of potential restructuring for the nation's large Chaebol groups. Sentiment towards the Chinese stock market was also helped by improving economic data and the landmark decision in mid-June by index provider MSCI to include the onshore Chinese A-shares in a range of its benchmark indices.

The portfolio delivered an NAV total return of 19.2% in the first half in sterling terms. Performance was driven by strong contribution from Chinese private sector names in the technology, consumer discretionary and industrials sectors. Alibaba and Tencent led the Chinese internet rally as the continued rapid growth in their internet platforms drove major upward revisions in earnings forecasts, while consumer names China Lodging and New Oriental Education were up strongly on the back of rising demand for their leisure and education services. The Company's holdings in Chinese A-share companies Hangzhou Hikvision and Midea also saw strong outperformance on robust earnings momentum, with their share prices further boosted by positive sentiment ahead of MSCI's inclusion of China A-shares in its benchmark indices.

Across other markets, Taiwan technology stocks advanced with Apple supply chain stocks Hon Hai Precision, Largan Precision and Taiwan Semiconductor Manufacturing benefiting from expectations of a strong demand cycle with the launch of the new iPhone 8. Indian private sector banks also added to gains when HDFC Bank and Indusind Bank rebounded as concerns faded over the drag on economic growth from the government's decision to remove high value currency notes.

Among the laggards, Australian logistics company Brambles corrected after the group announced a profit downgrade due to revenue and cost pressures in its North American business. Sluggish growth for some of the ASEAN consumer staples names also weighed on returns with RFM Corp and PT Sumber Alfaria Trijaya underperforming following weak earnings results against a muted consumption backdrop.

The portfolio was slightly geared with total equity exposure of 105.9% at the end of June. Gearing was initially used to purchase high-yielding telecom stocks and real estate investment trusts, though high valuations and concerns about the sustainability of yields have led to a decision to reduce the use of gearing to buy high yielding stocks. Capital protection (in the form of put options on the Australian, Hong Kong, China H-shares, Korean and Taiwan markets, which offer some protection if the markets fall) was a slight drag given strong rising markets, while the currency hedge on the Australian dollar pared some gains amid a modest appreciation of the currency. Adjusting for the derivative protection, net exposure was approximately 97.8%, made up of gearing, offset by derivative exposure of 6.4% at the end of June.

Outlook

With Asian indices up around 25% year to date in US dollar terms, are we in a bubble? In the view of your portfolio managers, who have managed money over three bubbles in Asian equities (1993, 2000 and 2007), we can honestly say that at the current point we do not think we have a bubble in Asian equities (yet). Many of the valuation measures we look at - such as price to core earnings and the percentage of stocks that trade below our estimate of fair value - are expensive, but they still have some way to go compared to the bubbles of 2000 and 2007.

Given clear signs of froth in the markets, your portfolio managers have decided that we should aim to further de-risk the portfolio gradually if current market conditions persist. At the moment we are likely to do this principally via the purchase of put options. One of the positive results of the current complacent and borderline euphoric market conditions is that implied equity volatility has dropped substantially, with the VIX index - a measure of US stockmarket risk - hitting its lowest ever point in July. This has made buying protection relatively cheap, and put option prices in Asia are now the lowest for some time. We have bought put options on the Hong Kong, Korean and Taiwanese indices. Given that our tactical models still forecast an upward bias to markets, this is the preferred way to aim to provide some capital preservation for the portfolio, rather than selling futures or raising cash. It also allows us to continue using a limited amount of gearing where there are specific stock opportunities, and since the end of June the gearing has risen slightly to 8% following the introduction of three new holdings. We will seek to use gearing as opportunities arise, without increasing net exposure.

It is at the stock level that we find ourselves in more of a conundrum. At this point in the cycle we would normally be looking to switch into lower-risk stocks that have lagged, whilst taking profits from higher beta holdings that have exceeded even our high estimates of fair value. This time round we are struggling. We think many of the less market-sensitive sectors which look cheap may stay cheap as they face disruption (e.g. utilities, telecoms, consumer staples, commodities). As Chart 4 on page 7 of the Half Year Report highlights, sectors we view as structurally challenged due to disruption and rapid technological change comprise a substantial portion of the Asian markets.

So we find ourselves in a quandary. It is increasingly clear that big platform companies with all the data flows are likely to remain winners (Alibaba, Tencent, etc) and that leading tech companies in the right sectors are likely to see good momentum and, barring strategic errors, keep their edge (TSMC, Samsung, Largan, Hikvision, Hon Hai). Unless valuations really get silly we are not inclined to aggressively trim these winners yet. What is clear on the other side, however, is we should avoid overhyped, sexy, untested models (the Snapchats, Line, Taiwan and Korea biotech start-ups, and any private equity backed IPOs) which are where we feel the real dangers lie at the moment as froth feeds into the markets.

Conclusion

With the portfolio having delivered strong absolute returns year to date, our strategy therefore is to gradually trim more market-sensitive holdings, and look for incumbent companies in sectors where we feel the threat of disruption is less or has been overhyped. Currently this is steering us back towards selected financials where, due to the incumbent advantage of large client databases and the high regulatory pressure and costs facing start-ups, we feel fintech newcomers may struggle to make significant headway. Other areas we are looking at include selected domestic companies in Australia which have lagged due to short term worries about the slowing economy, and office property in Hong Kong where we think the demand-supply balance remains favourable.

Robin Parbrook, King Fuei Lee

For Schroder Investment Management Limited

12 September 2017

Securities shown are for illustrative purposes only and should not be viewed as a recommendation to buy or sell.

Principal risks and uncertainties

The principal risks and uncertainties with the Company's business fall into the following categories: strategic risk; investment management risk; custody risk; financial and currency risk; gearing and leverage risk; accounting, legal and regulatory risk; and service provider risk. A detailed explanation of the risks and uncertainties in each of these categories can be found on pages 18 and 19 of the Company's published Annual Report and Accounts for the year ended 31 December 2016.

These risks and uncertainties have not materially changed during the six months ended 30 June 2017 with the exception of cyber risk relating to the Company's key service providers. The Board considers that this has increased in light of the rising frequency and success of cyber attacks on businesses and institutions. In order to ensure that this risk is managed and mitigated appropriately, the Board is seeking assurances on cyber risk controls from its key service providers.

Going concern

Having assessed the principal risks and uncertainties, and the other matters discussed in connection with the viability statement as set out on page 20 of the published Annual Report and Accounts for the year ended 31 December 2016, the Directors consider it appropriate to adopt the going concern basis in preparing the accounts.

Related party transactions

There have been no transactions with related parties that have materially affected the financial position or the performance of the Company during the six months ended 30 June 2017.

Directors' responsibility statement

The Directors confirm that, to the best of their knowledge, this set of condensed financial statements has been prepared in accordance with United Kingdom Generally Accepted Accounting Practice ("UK GAAP") and with the Statement of Recommended Practice, "Financial Statements of Investment Trust Companies and Venture Capital Trusts" issued in November 2014 and that this Interim Management Report includes a fair review of the information required by 4.2.7R and 4.2.8R of the Financial Conduct Authority's Disclosure Guidance and Transparency Rules.

Income Statement

		(Unaudited) For the six months ended 30 June 2017			(Unaudited) For the six months ended 30 June 2016			(Audited) For the year ended 31 December 2016
		Revenue	Capital	Total	Revenue	Capital	Total	Revenue	Capital	Total
	Note	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Gains on investments held at fair value through profit or loss
		-	43,405	43,405	-	25,220	25,220	-	46,666	46,666
Net losses on derivative contracts
		-	(5,181)	(5,181)	-	(744)	(744)	-	(485)	(485)
Net foreign currency gains/(losses)		-	979	979	-	(914)	(914)	-	(2,289)	(2,289)
Income from investments		2,603	-	2,603	2,396	-	2,396	4,765	-	4,765
Other interest receivable and similar income
		6	-	6	233	-	233	34	-	34
Gross return		2,609	39,203	41,812	2,629	23,562	26,191	4,799	43,892	48,691
Investment management fee		(193)	(579)	(772)	(143)	(428)	(571)	(317)	(950)	(1,267)
Performance fee provision		-	(2,677)	(2,677)	-	(1,429)	(1,429)	-	(2,650)	(2,650)
Administrative expenses		(296)	-	(296)	(288)	-	(288)	(564)	-	(564)
Net return before finance
costs and taxation		2,120	35,947	38,067	2,198	21,705	23,903	3,918	40,292	44,210
Finance costs		(32)	(96)	(128)	(16)	(49)	(65)	(42)	(126)	(168)
Net return on ordinary
activities before taxation		2,088	35,851	37,939	2,182	21,656	23,838	3,876	40,166	44,042
Taxation on ordinary activities	3	5	-	5	(184)	-	(184)	64	-	64
Net return on ordinary
activities after taxation		2,093	35,851	37,944	1,998	21,656	23,654	3,940	40,166	44,106
Return per share - basic and diluted	4	2.82p	48.34p	51.16p	2.74p	29.69p	32.43p	5.40p	55.07p	60.47p

The "Total" column of this statement is the profit and loss account of the Company. The "Revenue" and "Capital" columns represent supplementary information prepared under guidance issued by The Association of Investment Companies. The Company has no other items of other comprehensive income, and therefore the net return on ordinary activities after taxation is also the total comprehensive income for the period.

All revenue and capital items in the above statement derive from continuing operations. No operations were acquired or discontinued in the period.

Statement of Changes in Equity

For the six months ended 30 June 2017 (unaudited)

		Called-up		Capital
		share	Share	redemption	Special	Capital	Revenue
		capital	premium	reserve	reserve	reserves	reserve	Total
	Note	£'000	£'000	£'000	£'000	£'000	£'000	£'000
At 31 December 2016		4,260	5	11,646	29,182	137,783	12,141	195,017
Repurchase of the Company's
own shares into treasury		-	-	-	-	(334)	-	(334)
reissue of shares from treasury		-	3,330	-	-	8,545	-	11,875
Net return on ordinary activities		-	-	-	-	35,851	2,093	37,944
Dividend paid in the period	5	-	-	-	-	-	(3,273)	(3,273)
At 30 June 2017		4,260	3,335	11,646	29,182	181,845	10,961	241,229

For the six months ended 30 June 2016 (unaudited)

		Called-up		Capital
		share	Share	redemption	Special	Capital	Revenue
		capital	premium	reserve	reserve	reserves	reserve	Total
	Note	£'000	£'000	£'000	£'000	£'000	£'000	£'000
At 31 December 2015		4,260	5	11,646	29,182	98,120	10,973	154,186
Net return on ordinary activities		-	-	-	-	21,656	1,998	23,654
Dividend paid in the period	5	-	-	-	-	-	(2,772)	(2,772)
At 30 June 2016		4,260	5	11,646	29,182	119,776	10,199	175,068

For the year ended 31 December 2016 (audited)

		Called-up		Capital
		share	Share	redemption	Special	Capital	Revenue
		capital	premium	reserve	reserve	reserves	reserve	Total
	Note	£'000	£'000	£'000	£'000	£'000	£'000	£'000
At 31 December 2015		4,260	5	11,646	29,182	98,120	10,973	154,186
Repurchase of the Company's
own shares into treasury		-	-	-	-	(503)	-	(503)
Net return on ordinary activities		-	-	-	-	40,166	3,940	44,106
Dividend paid in the year	5	-	-	-	-	-	(2,772)	(2,772)
At 31 December 2016		4,260	5	11,646	29,182	137,783	12,141	195,017

Statement of Financial Position

		(Unaudited)	(Unaudited)	(Audited)
		30 June	30 June	31 December
		2017	2016	2016
	Note	£'000	£'000	£'000
Fixed assets
Investments held at fair value through profit or loss		255,434	183,231	207,947
Current assets
Debtors		584	3,131	1,255
Cash at bank and in hand		911	4,420	7,310
Derivative financial instruments held at fair value
through profit or loss		592	472	2,681
		2,087	8,023	11,246
Current liabilities
Creditors: amounts falling due within one year		(16,029)	(16,104)	(24,176)
Derivative financial instruments held at fair value
through profit or loss		(263)	(82)	-
		(16,292)	(16,186)	(24,176)
Net current liabilities		(14,205)	(8,163)	(12,930)
Total assets less current liabilities		241,229	175,068	195,017
Net assets		241,229	175,068	195,017
Capital and reserves
Called-up share capital	6	4,260	4,260	4,260
Share premium		3,335	5	5
Capital redemption reserve		11,646	11,646	11,646
Special reserve		29,182	29,182	29,182
Capital reserves		181,845	119,776	137,783
Revenue reserve		10,961	10,199	12,141
Total equity shareholders' funds		241,229	175,068	195,017
Net asset value per share	7
Undiluted		313.88p	239.99p	268.07p
Diluted		313.67p	N/A	267.09p

Registered in England and Wales

Company registration number: 02153093

Cash Flow Statement

		(Unaudited)	(Unaudited)
		For the	For the	(Audited)
		six months	six months	For the
		ended	ended	year ended
		30 June	30 June	31 December
		2017	2016	2016
	Note	£'000	£'000	£'000
Net cash (outflow)/inflow from operating activities	8	(930)	1,349	3,037
Net cash outflow from servicing of finance		(130)	(61)	(161)
Net cash outflow from investment activities		(4,520)	(4,930)	(9,478)
Dividends paid		(3,273)	(2,772)	(2,772)
Net cash inflow from financing		730	4,553	10,273
Net cash (outflow)/inflow in the period		(8,123)	(1,861)	899
Reconciliation of net cash flow to movement in net funds
Net cash (outflow)/inflow in the period		(8,123)	(1,861)	899
Bank loan repaid/(drawn down)		10,812	(4,554)	(10,776)
Exchange movements		979	(914)	(2,289)
Changes in net funds arising from cash flows		3,668	(7,329)	(12,166)
Net debt at the beginning of the period		(13,732)	(1,566)	(1,566)
Net debt at the end of the period		(10,064)	(8,895)	(13,732)
Represented by:
Cash at bank and in hand		911	4,420	7,310
Bank overdrafts		(2,891)	-	-
Bank loans		(8,084)	(13,315)	(21,042)
Net debt		(10,064)	(8,895)	(13,732)

Notes to the Accounts

1.             Financial Statements

The information contained within the accounts in this Half Year report has not been audited or reviewed by the Company's auditors.

The figures and financial information for the year ended 31 December 2016 are extracted from the latest published accounts of the Company and do not constitute statutory accounts for that year. Those accounts have been delivered to the Registrar of Companies and included the report of the auditors which was unqualified and did not contain a statement under either section 498(2) or 498(3) of the Companies Act 2006.

2.             Accounting policies

Basis of accounting

The accounts have been prepared in accordance with United Kingdom Generally Accepted Accounting Practice and with the Statement of Recommend Practice "Financial Statements of Investment Trust Companies and Venture Capital Trusts" issued by the Association of Investment Companies in November 2014 and updated in January 2017.

All of the Company's operations are of a continuing nature.

The accounting policies applied to these accounts are consistent with those applied in the accounts for the year ended 31 December 2016.

3.             Taxation on ordinary activities

The Company's effective corporation tax rate is nil, as deductible expenses exceed taxable income. The taxation credit/(charge) comprises irrecoverable overseas withholding tax on dividends receivable, offset by Taiwanese withholding tax recovered, relating to prior periods.

4.             Return per share    

	(Unaudited)	(Unaudited)
	Six months	Six months	(Audited)
	ended	ended	Year ended
	30 June	30 June	31 December
	2017	2016	2016
	£'000	£'000	£'000
Revenue return	2,093	1,998	3,940
Capital return	35,851	21,656	40,166
Total return	37,944	23,654	44,106
Weighted average number of shares in issue during the period,
excluding shares held in treasury	74,167,594	72,949,141	72,931,791
Revenue return per share	2.82p	2.74p	5.40p
Capital return per share	48.34p	29.69p	55.07p
Total return per share	51.16p	32.43p	60.47p

There is no dilution to the above returns per share when the diluted returns are calculated in accordance with the requirements of Financial Reporting Standard 102.

5.             Dividend paid

	(Unaudited)	(Unaudited)
	Six months	Six months	(Audited)
	ended	ended	Year ended
	30 June	30 June	31 December
	2017	2016	2016
	£'000	£'000	£'000
2016 dividend paid of 4.50p (2015: 3.80p)	3,273	2,772	2,772

No interim dividend has been declared in respect of the year ending 31 December 2017 (2016: nil).

6.             Called-up share capital

	(Unaudited)	(Unaudited)
	Six months	Six months	(Audited)
	ended	ended	Year ended
	30 June	30 June	31 December
	2017	2016	2016
	£'000	£'000	£'000
Changes in called-up share capital during the period were as follows:
Opening balance, ordinary shares of 5p each, allotted, called-up and fully paid	3,637	3,647	3,647
Repurchase of shares into treasury	(6)	-	(10)
Reissue of shares from treasury	212	-	-
Subtotal, ordinary shares of 5p each, excluding shares held in treasury	3,843	3,647	3,637
Shares held in treasury	417	613	623
Closing balance, ordinary shares of 5p each, including shares held in treasury	4,260	4,260	4,260

	(Unaudited)	(Unaudited)
	Six months	Six months	(Audited)
	ended	ended	Year ended
	30 June	30 June	31 December
	2017	2016	2016
Changes in the number of shares in issue during the period were as follows:
Opening balance of shares in issue, excluding shares held in treasury	72,749,141	72,949,141	72,949,141
Repurchase of shares into treasury	(120,000)	-	(200,000)
Reissue of shares from treasury	4,225,000	-	-
Closing balance of shares in issue, excluding shares held in treasury	76,854,141	72,949,141	72,749,141
Closing balance of shares held in treasury	8,350,671	12,255,671	12,455,671
Closing balance of shares in issue, including shares held in treasury	85,204,812	85,204,812	85,204,812

7.             Net asset value per share

	(Unaudited)	(Unaudited)
	Six months	Six months	(Audited)
	ended	ended	Year ended
	30 June	30 June	31 December
	2017	2016	2016
Undiluted
Total equity shareholders' funds (£'000)	241,229	175,068	195,017
Shares in issue at the period end	76,854,141	72,949,141	72,749,141
Net asset value per share	313.88p	239.99p	268.07p
Diluted1
Total equity shareholders' funds assuming reissue of any dilutive treasury shares (£'000)	260,308	N/A	213,790
Potential shares in issue at the period end in accordance with the authority granted at the AGM	82,987,041	N/A	80,044,055
Net asset value per share	313.67p	N/A	267.09p

¹ The diluted net asset value per share assumes that all potentially dilutive treasury shares were reissued at the period end. At a General Meeting on 15 November 2016, the Company was granted authority to reissue a number (being up to 10% of the ordinary shares in issue) of shares from treasury at a discount of no greater than 4% to the net asset value per share at the time of sale. This authority was renewed at the Annual General Meeting on 26 April 2017.

8.             Reconciliation of total return on ordinary activities before finance costs and taxation to net cash inflow from operating activities

	(Unaudited)	(Unaudited)
	Six months	Six months	(Audited)
	ended	ended	Year ended
	30 June	30 June	31 December
	2017	2016	2016
	£'000	£'000	£'000
Total return before finance costs and taxation	38,067	23,903	44,210
Less capital return before finance costs and taxation	(35,947)	(21,705)	(40,292)
Stock dividends received as income	-	-	(53)
(Increase)/decrease in prepayments and accrued income	(1)	(12)	45
Increase in other debtors	(350)	(431)	(14)
Increase in creditors	520	1,520	2,738
Management fee allocated to capital	(579)	(428)	(950)
Performance fee allocated to capital	(2,677)	(1,429)	(2,650)
Taiwanese withholding tax recovered	184	-	317
Overseas withholding tax deducted at source	(147)	(69)	(314)
Net cash (outflow)/inflow from operating activities	(930)	1,349	3,037

9.             Financial instruments measured at fair value

The Company's financial instruments that are held at fair value include its investment portfolio and derivative financial instruments.

Paragraph 34.22 (amended) of FRS 102 requires that these financial instruments are categorised into a hierarchy consisting of the following three levels:

Level 1 - valued using unadjusted quoted prices in active markets for identical assets.

Level 2 - valued using observable inputs other than quoted prices included within Level 1.

Level 3 - valued using inputs that are unobservable.

The following table sets out the fair value measurements using the above hierarchy:

		30 June 2017 (unaudited)
	Level 1	Level 2	Level 3	Total
	£'000	£'000	£'000	£'000
Financial instruments held at fair value through profit or loss
Equity investments and derivative financial instruments	248,450	-	-	248,450
Participatory notes1	-	7,313	-	7,313
Total	248,450	7,313	-	255,763

		30 June 2016 (unaudited)
	Level 1	Level 2	Level 3	Total
	£'000	£'000	£'000	£'000
Financial instruments held at fair value through profit or loss
Equity investments and derivative financial instruments	170,856	-	-	170,856
Participatory notes1	-	12,765	-	12,765
Total	170,856	12,765	-	183,621

		31 December 2016 (audited)
	Level 1	Level 2	Level 3	Total
	£'000	£'000	£'000	£'000
Financial instruments held at fair value through profit or loss
Equity investments and derivative financial instruments	200,492	-	-	200,492
Participatory notes1	-	10,136	-	10,136
Total	200,492	10,136	-	210,628

¹ Participatory notes, which are valued using the quoted bid prices of the underlying securities, have been allocated to Level 2 as, strictly, these are not identical assets.

10.           Events after the interim period that have not been reflected in the financial statements for the interim period

The Directors have evaluated the period since the interim date and have confirmed that there are no significant events which have not been reflected in the financial statements.

 

END

 

 

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