Interim Management Statement
Midas Income & Growth Trust PLC
Unaudited Interim Management Statement - 3 months to 31 January 2011
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 2009 to 31 January 2010, 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 15 November 2010 the Company declared a second interim dividend of 1.63p per Ordinary share which was paid on 15 December 2010.
On 21 December 2010 the Company published its Half Yearly Report.
On 17 February 2011 the Company declared a third interim dividend of 1.63p per Ordinary share which will be payable on 18 March 2011 to Ordinary shareholders on the register on 25 February 2011.
Ten largest "direct equity" holdings at 31 January 2011
|
AJ Bell Holdings Limited * |
4.6% |
|
Standard Life plc |
2.1% |
|
GlaxoSmithKline plc |
2.1% |
|
Ashmore Group plc |
2.0% |
|
Reckitt Benckiser plc |
1.9% |
|
Scottish & Southern Energy plc |
1.9% |
|
Royal Dutch Shell B Shares plc |
1.9% |
|
AstraZeneca plc |
1.9% |
|
Vodafone Group plc |
1.9% |
|
BP plc |
1.8% |
|
Total |
22.1% |
*Unquoted Investment.
Ten largest "other" holdings as at 31 January 2011
|
Partners Group Global Opportunities |
3.3% |
|
Asian Real Estate Income Fund |
3.1% |
|
Threadneedle Property Unit Trust |
2.6% |
|
Royal London Sterling Extra Yield Bond Fund |
2.6% |
|
Harewood US Enhanced Income Fund (Hedged) |
2.4% |
|
AXA US Short Duration High Yield Fund |
2.4% |
|
Ecclesiastical 8.625% Preference Shares |
2.4% |
|
Blackrock Commodities Income Trust |
2.2% |
|
Acencia Debt Strategies |
2.2% |
|
ML 3 Year FTSE Short Strangle 8.80% Income |
2.2% |
|
Total |
25.4% |
General description of Company's financial position and performance as at 31 January 2011
|
Total Gross Assets*: |
£56.6m |
|
Debt: |
£7.0m |
|
Total Net Assets*: |
£49.6m |
|
Gearing: |
14.1% |
|
Historic Net Yield: |
5.6% |
|
NAV ex. Income *: |
123.92p |
|
NAV with Income *: |
124.48p |
|
Mid-Market Share Price: |
115.5p |
|
Premium (Discount) |
(6.8%) |
|
Annual Management Charge on Net Assets: |
1.0% |
* Excluding current period revenue
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 |
3 |
6 |
1 |
2 |
3 |
5 |
19/08/2005 to Date |
|
Share Price |
115.5p |
-0.1 |
6.9 |
13.4 |
42.6 |
-0.7 |
-3.9 |
5.1 |
|
NAV |
123.9p |
3.1 |
9.6 |
12.2 |
43.2 |
-2.7 |
3.4 |
10.0 |
|
Index (8% p.a.) |
|
1.9 |
3.9 |
8.0 |
16.6 |
26.0 |
46.9 |
52.1 |
Discrete performance (%)
|
|
31/01/2011 |
31/01/2010 |
31/01/2009 |
31/01/2008 |
31/01/2007 |
|
Share Price |
13.4 |
25.7 |
-30.4 |
-14.7 |
13.4 |
|
NAV |
12.2 |
27.6 |
-32.0 |
-4.6 |
11.4 |
|
Index (8% p.a.) |
8.0 |
8.0 |
8.0 |
8.0 |
8.0 |
|
|
|
|
|
|
|
|
Total Return; Net Income Reinvested, GBP |
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|
Source: Aberdeen Asset Managers Limited, Morningstar and Russell Mellon |
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|
NAV returns based on NAVs excluding income and with debt valued at par |
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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
15 March 2011
This information is provided by RNS