Interim Management Statement

RNS Number : 2712Z

Midas Income & Growth Trust PLC

13 March 2012

 



Midas Income & Growth Trust PLC

Unaudited Interim Management Statement - 3 months to 31 January 2012

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 2011 to 31 January 2012, and contains information that covers this period, and up to the date of publication of this interim management statement, unless otherwise specified.

Investment objective

Following approval from shareholders at the General Meeting of the Company held on 18 January 2012, the company's investment objective is to seek to outperform 3-month LIBOR plus 3.0 per cent. over the longer term, with low volatility and the prospect of capital and income growth, through investment in a multi-asset portfolio. The Directors intend to measure the Company's performance based on rolling three-year periods.

The portfolio will ordinarily contain some 50 - 65 holdings and 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 seeking to outperform 3-month LIBOR plus 3.0 per cent. over the longer term,.

Material events

On 14 November 2011 the Company declared a second interim dividend of 1.63p per Ordinary share which was paid on 15 December 2011.

On 14 December 2011 the Company published its Half Yearly Report and announced recommended proposals regarding the rebasing of the level of dividends payable, changes to the investment objective, policy and benchmark and the introduction of an annual continuation vote (the "Proposals") together with changes to management fee arrangements . 

On 22 December 2011 the Company posted the Half Yearly Report to shareholders together with a Circular containing further details of the Proposals.

On 18 January 2012 the Proposals were approved by shareholders at a General Meeting of the company and became effective from that date.

On 16 February 2012 the Company declared a third interim dividend of 1.3p per Ordinary share which will be payable on 16 March 2012 to Ordinary shareholders on the register on 24 February 2012.

Ten largest "direct equity" holdings at 31 January 2012

Company	%
AJ Bell Holdings Limited*	6.0
GlaxoSmithKline plc	2.3
Reckitt Benckiser plc	2.3
Ashmore Group plc	2.2
Legal & General plc	2.1
Unilever plc	2.1
AstraZeneca plc	2.0
Vodafone plc	1.9
Atkins (WS) plc	1.8
HSBC plc	1.7

*Unquoted Investment

Ten largest "other" holdings as at 31 January 2012

	Company	%
Partners Group Global Opportunities		4.6
Asian Real Estate Income Fund		2.7
Royal London Sterling Extra Yield Bond Fund		2.6
Somerset Emerging Markets Dividend Growth Fund		2.4
Newton Asian Income Fund		2.2
Lindsell Train Japanese Equity Fund		2.1
Acencia Debt Strategies		2.0
Policy Selection Assured Fund		1.8
Ecclesiastical 8.625% Preference Shares		1.8
Duet Real Estate Finance		1.8

General description of Company's financial position and performance as at 31 January 2012

Total Gross Assets*:	£54.7m
Debt:	£7.0m
Total Net Assets*:	£47.7m
Gearing:	14.7%
Historic Net Yield:	6.25%
NAV ex. Income *:	118.47p
NAV with Income *:	119.63p
Mid-Market Share Price:	104.38p
Discount	-11.9%
Annual Management Charge on Market Capitalisation:	0.9%

* Excluding current period revenue

Cumulative performance (%)

	as at	3 m	6 m	1 yr	2 yr	3 yr	5 yr	19/08/05 to Date	18/01/12 to date
	31/01/12
Share Price	104.4p	-1.4	-8.3	-4.2	8.7	36.6	-18.8	0.6	1.1
NAV	118.5p	1.6	-3.4	0.9	13.2	44.4	-6.4	11.0	1.0
Composite Index		1.8	3.8	7.9	16.5	25.8	46.8	64.1	0.1

Discrete performance (%)

	31/01/2012	31/01/2011	31/01/2010	31/01/2009	31/01/2008
Share Price	-4.2	13.4	25.7	-30.4	-14.7
NAV	0.9	12.2	27.6	-32.0	-4.6
Composite Index	7.9	8.0	8.0	8.0	8.0
Composite Index: 8% p.a. to 18/01/12 thereafter LIBOR GBP 3 Months + 3%
Total Return; Net Income Reinvested, GBP
Source: Aberdeen Asset Managers Limited, Morningstar, LIM and Russell Mellon
NAV returns based on NAVs excluding income and with debt valued at par

The Board is not aware of any significant events or transactions which have occurred between 1 February 2012 and the date of publication of this interim management statement which would have a material impact on the financial position of the Company. For latest performance information, please refer to the Company's website, www.mamfundsplc.com/migt*.

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.

* Neither the Company's website nor the content of any website accessible from hyperlinks on the

Company's website (or any other website) is (or is deemed to be) incorporated into, or forms (or is deemed to form) part of this announcement.

For Midas Income & Growth Trust PLC

Aberdeen Asset Management PLC, Secretary

13 March 2012

 

END

 

 

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