Net Asset Value(s)

RNS Number : 4483G

British Assets Trust PLC

01 February 2010

 



British Assets Trust plc

Interim Management Statement

For the Three Month Period 1 October 2009 to 31 December 2009

Investment Objective

British Assets Trust plc aims to achieve a total return in excess of a composite index, weighted as to 75 per cent FTSE All-Share Index and 25 per cent FTSE World (ex UK) Index, by investing principally in a diversified international portfolio of equities and equity-related securities.  Within this overall objective, the Company aims to maintain a progressive dividend policy which will be dependent upon, inter alia, the rate of revenue growth within the investment portfolio, and the level of dividend cover.

Performance Summary

Total Return1		Three months to 31/12/09
Net asset value		+5.4%
Composite index2		+4.9%
Capital Values	As at  31/12/09	As at  30/09/09
Net asset value	126.8p	121.9p
Share price (mid market)	112.0p	109.2p
Discount  - Basic  - Debt adjusted	11.7% 8.3%	10.4% 6.9%
Gearing  - Net of cash3  - Equity gearing 4	20.4% 7.5%	21.0% 7.0%

Sources: F&C Investment Business Limited, Datastream.

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

²           Composite Index of 75 per cent FTSE All-Share Index and 25 per cent FTSE World (ex UK) Index

³           Gearing net of cash: (investments-shareholders' funds)/shareholders' funds

⁴           Equity gearing: (equity investments-shareholders' funds)/shareholders' funds

Review for the Period

The Company's net asset value total return for the three months ended 31 December 2009 was 5.4%. This compares favourably with a return of 4.9% from the composite benchmark index of 75% FTSE All-Share Index and 25% FTSE World (ex UK) Index.

Global equity markets rounded off a very strong year by posting solid gains in the fourth quarter.  Despite continued concerns over the sustainability of the economic recovery and the prospect of interest rates being kept low for an extended period, bond yields rose as investors fretted over burgeoning budget deficits and the eventual removal of quantitative easing.

In the UK, the economic news remained mixed and it was the only major developed economy not to exit recession. The Bank of England, which maintained interest rates at 0.5%, reacted to the stuttering recovery by adding a further £25 billion of stimulus to its quantitative easing programme. While manufacturing data remained depressed, house prices registered their first annual increase in 19 months and consumer confidence improved.

The key question now is how and when the stimulus will be withdrawn and whether this can be done in a way which is not problematic for financial markets.  For now a slump back into recession is unlikely, inflation is likely to remain subdued and liquidity conditions remain favourable. Emerging markets should continue to outperform as the investment case based on superior long term growth prospects remains compelling.

Dividends

A third interim dividend in respect of the year ended 30 September 2009, of 1.442p per share, was paid on 9 October 2009.

Board Composition

On 17 December 2009, Mr William Thomson and Dr Christopher Masters retired from the Board and Ms Lynn Ruddick, who joined the Board in 2004, succeeded Mr Thomson as Chairman.

Top Ten Holdings as at 31/12/09

Company	Country	% of total assets
HSBC Holdings	UK		5.2
BP	UK		5.1
Rio Tinto	UK		3.9
GlaxoSmithKline	UK		3.9
Royal Dutch Shell	UK		3.6
Vodafone Group	UK		3.4
British American Tobacco	UK		2.4
AstraZeneca	UK		2.2
Tesco	UK		2.1
Scottish and Southern Energy	UK		2.0
Total			33.8

Geographical Analysis as at 31/12/09

			%of total assets
UK				61.6
Global Developed (ex UK) Markets				15.4
Emerging Markets				10.1
Corporate Bonds				10.4
Net Current Assets				2.5
Total				100.0

The Board is not aware of any significant events or transactions which have occurred since 31 December 2009 and the date of publication of this statement which would have a material impact on the financial position of the Company.

Daily and Key Information

This statement and further information regarding the Company, including daily net asset values published since the end of the period and monthly factsheets, can be found at the Company's website www.british-assets.co.uk, or at www.fandc.com.

For further information please contact:

Julie Dent/Gordon Hay Smith

F&C Investment Business Limited

Tel: [phone]

 

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