Interim Management Statement

RNS Number : 8222O

Midas Income & Growth Trust PLC

13 March 2009

 



Midas Income & Growth Trust PLC

Unaudited Interim Management Statement - 3 months to 31 January 2009

To the shareholders of Midas Income & Growth Trust PLC

This interim management statement has been produced solely to provide additional information to shareholders as a body to meet the relevant requirements of the UK Listing Authority's Disclosure and Transparency Rules. It should not be relied upon by any other party or for any other purpose.

This interim management statement relates to the period from 1 November 2008 to 31 January 2009, and contains information that covers this period, and up to the date of publication of this interim management statement, unless otherwise specified.

Investment objective

The Company seeks to achieve an absolute return with low volatility through investment in a multi- asset portfolio. This will be achieved by investing in a diverse portfolio comprising principally of UK equities and fixed interest securities, together with overseas equities, property, alternative assets and structured products. 

The portfolio will ordinarily contain some 50 - 65 holdings, and targets a benchmark return of 8% per annum through a combination of high and growing income and additional capital growth. Investment will be made in a combination of direct holdings together with a range of other investment funds where more specialised management skills are necessary. 

Benchmark

The Company does not compare its performance to an index, but has instead adopted a target benchmark of 8% per annum. 

Material events 

On 17 November 2008 the Company declared a second interim dividend of 1.63p per Ordinary share which was paid on 15 December 2008.

On 26 November 2008 the High Court confirmed the cancellation of the Company's share premium account which had been approved by the Company's shareholders and warrantholders at the EGM held on 27 October 2008 and the reconvened Warrantholders' meeting on 5 November 2008.

On 19 December 2008 the Company published its Half Yearly Report.

On 19 February 2009 the Company declared a third interim dividend of 1.63p per Ordinary share which will be payable on 20 March 2009 to Ordinary shareholders on the register on 25 February 2009.

During the 3 month period to 31 January 2009 the Company purchased for cancellation 1,772,000 Ordinary shares of 25p each. Between 31 January 2009 and 12 March 2009 the Company has purchased a further 540,000 Ordinary shares of 25p for cancellation. As at 12 March 2009 the Company's issued Ordinary share capital is 39,251,950 Ordinary shares of 25p each

For latest NAV and share price information please refer to the trust's website, www.midascapital.co.uk.

Ten largest 'direct equity' holdings at 31 January 2009

1.	A J Bell Holdings Limited*	7.1%
2.	BP plc	3.2%
3.	Royal Dutch Shell B Shares plc	3.0%
4.	National Grid plc	2.9%
5.	GlaxoSmithKline plc	2.7%
6.	Vodafone plc	2.7%
7.	William Hill plc	2.1%
8.	Tesco plc	1.8%
9.	Legal & General plc	1.8%
10.	Rexam plc	1.8%
Total		29.1%

*Unquoted Investment.

Ten largest 'other' holdings as at 31 January 2009

1.	Japan Opportunities Fund II		4.0%
2.	Signet Global Hedge Fund		3.6%
3.	Societe Generale 6m FTSE Short Strangle 6.10%		3.0%
4.	Royal London Sterling Extra High Yield Bond Fund		2.9%
5.	Blackrock Commodities Income Investment Trust		2.8%
6.	Assured Fund		2.8%
7.	Ignis Asset Argonaut European Income Fund		2.7%
8.	Aberdeen Asian Income Fund		2.7%
9.	BNP 1 Year FTSE Short Strangle 15%		2.6%
10.	Harewood US High Income Fund		2.6%
Total		29.7%

General description of Company's financial position and performance as at 31 January 2009

Total Gross Assets:	£45.7m
Debt:	£7.0m
Total Net Assets:	£38.7m
Gearing:	18.1%
Historic Net Yield	7.0%
Undiluted Net Asset Value:	97.4p
Fully Diluted NAV	97.4p
Mid-Market Share Price:	92.0p
Premium (Discount):	(5.5%)
Warrants	13.5p
Annual Management Fee Charged on Net Assets*:	1.0%

*A performance fee is payable of 10% of any out performance of the benchmark of 8%. This is subject to a high water mark. 

Cumulative performance (%)

	as at  31/01/2009	3  months	6  months	1  year	2  years	3  years	19/08/2005 to Date
Share Price	92.0	-1.4	-23.3	-30.4	-40.6	-32.6	-26.3
NAV	97.4	-2.6	-25.7	-32.0	-35.2	-27.8	-23.2
Index (8% p.a.)		1.9	3.9	8.0	16.0	24.0	30.4

Discrete performance (%)

	31/01/2009	31/01/2008	31/01/2007
Share Price	-30.4	-14.7	13.4
NAV	-32.0	-4.6	11.4
Index (8% p.a.)	8.0	8.0	8.0

Total Return; NAV to NAV, Net Income Reinvested, GBP

Source: Aberdeen Asset Managers Limited, Fundamental Data and Russell Mellon

NAV returns based on NAVs excluding income and with debt valued at par

Please note that past performance is not necessarily a guide to the future and that the value of investments and the income from them may fall as well as rise. Investors may not get back the amount they originally invested.

For Midas Income & Growth Trust PLC

Aberdeen Asset Management PLC, Secretary

13 March 2009

 

END

 

 

IMSGUUGPWUPBGUW