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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| F&C Man | LSE:FMPI | London | Ordinary Share | GB00B2PP3J36 | INC SHS 10P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 131.00 | 129.00 | 133.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMFMPI
RNS Number : 6353U
F&C Managed Portfolio Trust PLC.
19 January 2017
To: RNS
Date: 19 January 2017
From: F&C Managed Portfolio Trust plc
Interim Results
The Board of F&C Managed Portfolio Trust plc announces the unaudited interim results of the Company for the six month period to 30 November 2016.
Chairman's Statement
Highlights
-- Net asset value total return of 10.0% for both the Income shares and Growth shares, compared with the FTSE All-Share Index rise of 9.6%
-- First two interim dividends increased to 1.25 pence per Income share -- Income share dividend yield of 4.2% at 30 November 2016
Investment performance
For the six months to 30 November 2016, the net asset value (NAV) total return was 10.0% for both the Income shares and the Growth shares. The total return for the benchmark index for both Portfolios, the FTSE All-Share Index, was 9.6% while the FTSE Equity Investment Instruments Index, achieved 12.6%.
To say it has been an eventful six months would be an understatement. To start with there was the Brexit vote, the result of which was widely unexpected. The most immediate effect was the plunge in the value of sterling, which declined by 14% against the dollar and by 10% against the Euro during the period under review. A significant knock-on effect was the boost to returns from overseas markets for sterling based investors.
The Bank of England moved swiftly to avert fears over Brexit by cutting interest rates. The combined effect of this action and weaker sterling pushed the UK equity market sharply higher. Over the six months to 30 November 2016, the FTSE 100 Index rose 11%, led by large global companies with substantial overseas operations. More domestic orientated companies were left behind. This is best illustrated by the FTSE 250 Index (medium sized companies) which gained only 3.5% and the FTSE Small Cap (ex-Investment Companies) which rose only 5.3% (all in total return terms).
The surprises just kept on coming with the result of the US Presidential election in early November. In response, equity markets, led by the US, rather unexpectedly moved sharply higher.
Against this background it is encouraging that both investment portfolios ended the period with significant gains, slightly ahead of the FTSE All-Share Index. This maintains their long-term record of strong performance.
For the Growth Portfolio the best performers were led by Polar Capital Technology Trust and Allianz Technology Trust which gained 39% and 34% respectively. Both have outstanding long-term performance records and have proven a good way for the portfolio to gain exposure to the dynamic US technology sector. Gabelli Value Plus Trust, a US equity trust, experienced a strong 38% gain whilst Monks Investment Trust rose 30%. The latter is a more global trust with around half its assets in the US and draws on the best ideas generated by manager Baillie Gifford. Another trust from the same house, Baillie Gifford Japan Trust rose by 25%, driven by its exposure to medium sized growth companies in Japan.
The detractors to performance in the Growth Portfolio tended to be UK and European trusts with a bias towards smaller companies. Strategic Equity Capital, a UK smaller company specialist, fell 14%. European Assets Trust, which invests in European medium sized and small companies was 6% lower as was Woodford Patient Capital Trust. Henderson Opportunities Trust, a UK equity trust with a sizeable exposure to smaller companies was down 5% and TR Property Investment Trust which invests mainly in UK and European listed property companies was also 5% lower, reflecting concerns over the prospects for property following Brexit.
In the Income Portfolio the best performance was a gain of 34% by BlackRock Commodities Income Investment Trust which invests in energy and mining companies and has experienced a strong recovery on the back of rising oil and commodity prices. Another Blackrock trust, BlackRock North American Income was next best with a rise of 26% in its share price as it benefitted from the strong performance from US equity markets. Of the other notable performers there was a common theme of exposure to Emerging Markets or the Asia Pacific region. JPMorgan Global Emerging Markets Income Trust was ahead by 26% whilst Schroder Oriental Income Fund gained 22% and Henderson Far East Income rose by 20%. All of the trusts highlighted benefitted significantly from the decline in the value of sterling. It should also be mentioned that this trend is positive for dividends from trusts which receive their income from overseas companies.
As with the Growth Portfolio most of the relative detractors from performance came from UK equity sectors. Aberforth Geared Income Trust a UK smaller company specialist fell by 8% whilst Standard Life Equity Income Trust was 7% lower. These two trusts along with The Mercantile Investment Trust which was 4% lower over the period all had substantial exposure to UK medium and smaller companies. Perpetual Income & Growth Investment Trust, a long time holding with an excellent record, was 4% lower due mainly to having little in the way of cyclical exposure in energy, mining, banks or industrials, which had been the best performing sectors over the period. (All returns for individual trusts are capital only).
Revenue and dividends
The Company's net revenue for the six months was GBP1,212,000 which is equivalent to 2.91p per Income share (compared to 2.83p per Income share for the corresponding period in 2015). Income shares are entitled to all the dividends paid by the Company.
In line with our objective of increasing dividends over time, the Company has declared a first and second interim dividend in respect of the year to 31 May 2017, each of 1.25p per Income share (1.2p per Income share in the prior periods).
The Board intends to pay a third interim dividend of 1.25p per Income share in the current financial year. The amount of the fourth interim dividend will be determined when a clearer view of income for the year emerges. The annual rate of 5.2p per Income share paid in the prior year represents a yield on the Income share price at 30 November 2016 of 4.2%.
Borrowing
Borrowings are not normally expected to exceed 20% of the total assets of the relevant Portfolio and at the time of writing total GBP3.5 million (6.2% of gross assets) in the Income Portfolio and nil in the Growth Portfolio.
Discount to NAV and share buy-backs
In normal circumstances we aim to maintain our discount at not more than 5%, by buying back shares from time to time if necessary. In practice over the years the shares have generally traded close to NAV. During the six months to 30 November 2016 the average discount to NAV for the Income shares and for the Growth shares was 0.7% and 0.5% respectively. At 30 November 2016, the Income shares and the Growth shares stood at a discount to NAV of 0.1% and 1.4% respectively.
Outlook
"Stockmarkets climb walls of worry", has certainly been true this past year, as the FTSE 100 Index has just made an all-time high and yet scarcely has there been a time when financial markets have faced so many uncertainties. The imminent change in administration in the US appears to herald a change in economic policy towards a fiscal-led domestic stimulus through tax cuts and infrastructure spending with an increase in tariffs to protect US industry. This may lead to higher interest rates and a rise in bond yields in the US. Meanwhile in the UK, inflation is set to rise and growth may well slow as the uncertainties around Brexit negotiations come to the fore. Yet at the company level many continue to trade well, due in part to weaker sterling. In summary, the potential downside to equity markets suggests that a cautious approach appears sensible. In terms of investment strategy, a preference for overseas exposure and a continued emphasis on quality are the key elements in investment selection for both portfolios.
Richard M Martin
Chairman
19 January 2017
Unaudited Condensed Income Statement
Six months to 30 November 2016
Hot Features
Premium
Notes Revenue Capital Total
GBP'000 GBP'000 GBP'000
-------- -------- --------
Gains on investments - 8,664 8,664
Foreign exchange gains - 4 4
Income 2 1,559 - 1,559
Investment management and
performance fee 3 (103) (245) (348)
Other expenses (231) - (231)
-------- -------- --------
Return on ordinary activities
before finance costs and
tax 1,225 8,423 9,648
Finance costs (4) (7) (11)
-------- -------- --------
Return on ordinary activities
before tax 1,221 8,416 9,637
Tax on ordinary activities (9) - (9)
-------- -------- --------
Return attributable to
shareholders 1,212 8,416 9,628
-------- -------- --------
Return per Income share
(pence) 5 2.91p 8.30p 11.21p
Return per Growth share
(pence) 5 - 14.69p 14.69p
-------- -------- --------
The total column of this statement is the Profit and Loss Account of the Company.
The supplementary revenue and capital columns are prepared under the guidance published by The Association of Investment Companies.
All revenue and capital items in the Income Statement derive from continuing operations.
Unaudited Condensed Income Statement
Six months to 30 November 2015
Notes Revenue Capital Total
GBP'000 GBP'000 GBP'000
-------- ---------- ----------
Losses on investments - (4,144) (4,144)
Foreign exchange gains - 3 3
Income 2 1,298 - 1,298
Investment management and
performance fee 3 (85) (232) (317)
Other expenses (192) - (192)
-------- ---------- ----------
Return on ordinary activities
before finance costs and
tax 1,021 (4,373) (3,352)
Finance costs (6) (12) (18)
-------- ---------- ----------
Return on ordinary activities
before tax 1,015 (4,385) (3,370)
Tax on ordinary activities (8) - (8)
-------- ---------- ----------
Return attributable to
shareholders 1,007 (4,385) (3,378)
-------- ---------- ----------
Return per Income share
(pence) 5 2.83p (9.31)p (6.48)p
Return per Growth share
(pence) 5 - (3.60)p (3.60)p
-------- ---------- ----------
The total column of this statement is the Profit and Loss Account of the Company.
The supplementary revenue and capital columns are prepared under the guidance published by The Association of Investment Companies.
All revenue and capital items in the Income Statement derive from continuing operations.
Condensed Income Statement (audited)
Year to 31 May 2016
Notes Revenue Capital Total
GBP'000 GBP'000 GBP'000
-------- ---------- ----------
Losses on investments - (6,051) (6,051)
Foreign exchange gains - 2 2
Income 2 2,797 - 2,797
Investment management and
performance fee 3 (177) (418) (595)
Other expenses (415) - (415)
-------- ---------- ----------
Return on ordinary activities
before finance costs and
tax 2,205 (6,467) (4,262)
Finance costs (8) (20) (28)
-------- ---------- ----------
Return on ordinary activities
before tax 2,197 (6,487) (4,290)
Tax on ordinary activities (11) - (11)
-------- ---------- ----------
Return attributable to
shareholders 2,186 (6,487) (4,301)
-------- ---------- ----------
Return per Income share
(pence) 5 5.62p (11.18)p (5.56)p
Return per Growth share
(pence) 5 - (6.72)p (6.72)p
-------- ---------- ----------
The total column of this statement is the Profit and Loss Account of the Company.
The supplementary revenue and capital columns are prepared under the guidance published by The Association of Investment Companies.
All revenue and capital items in the Income Statement derive from continuing activities.
Unaudited Condensed Balance Sheet
As at 30 November 2016
Notes Income Growth
Shares Shares Total
GBP'000 GBP'000 GBP'000
-------- -------- --------
Fixed assets
Investments 4 52,461 53,574 106,035
-------- -------- --------
Current assets
Debtors 201 75 276
Cash at bank and on deposit 2,245 976 3,221
2,446 1,051 3,497
Creditors
Amounts falling due within
one year (3,648) (143) (3,791)
-------- -------- --------
Net current (liabilities)/assets (1,202) 908 (294)
-------- -------- --------
Net assets 51,259 54,482 105,741
-------- -------- --------
Capital and reserves
Called-up share capital 7 4,254 3,428 7,682
Share premium 21,685 18,546 40,231
Capital redemption reserve - 182 182
Special reserve 18,265 16,315 34,580
Capital reserves 5,431 16,011 21,442
Revenue reserve 1,624 - 1,624
-------- -------- --------
Shareholders' Funds 51,259 54,482 105,741
-------- -------- --------
Net asset value per share
(pence) 8 123.34p 161.75p
Unaudited Condensed Balance Sheet
As at 30 November 2015
Notes Income Growth
Shares Shares Total
GBP'000 GBP'000 GBP'000
-------- -------- --------
Fixed assets
Investments 43,111 45,745 88,856
-------- -------- --------
Current assets
Debtors 7,139 5,919 13,058
Cash at bank and on deposit 1,123 1,432 2,555
8,262 7,351 15,613
Creditors
Amounts falling due within
one year (1,673) (1,613) (3,286)
-------- -------- --------
Net current assets 6,589 5,738 12,327
-------- -------- --------
Net assets 49,700 51,483 101,183
-------- -------- --------
Capital and reserves
Called-up share capital 4,254 3,428 7,682
Share premium 21,690 18,549 40,239
Capital redemption reserve - 182 182
Special reserve 19,380 17,197 36,577
Capital reserves 3,009 12,127 15,136
Revenue reserve 1,367 - 1,367
-------- -------- --------
Shareholders' Funds 49,700 51,483 101,183
-------- -------- --------
Net asset value per share
(pence) 8 116.84p 150.20p
Condensed Balance Sheet (audited)
As at 31 May 2016
Income Growth
Shares Shares Total
Notes GBP'000 GBP'000 GBP'000
-------- -------- --------
Fixed assets
Investments 4 48,262 49,051 97,313
-------- -------- --------
Current assets
Debtors 161 28 189
Cash at bank and on deposit 762 1,005 1,767
-------- -------- --------
923 1,033 1,956
Creditors
Amounts falling due within
one year (1,141) (142) (1,283)
-------- -------- --------
Net current (liabilities)/assets (218) 891 673
-------- -------- --------
Net assets 48,044 49,942 97,986
-------- -------- --------
Capital and reserves
Called-up share capital 4,254 3,428 7,682
Share premium 21,685 18,546 40,231
Capital redemption reserve - 182 182
Special reserve 18,532 16,733 35,265
Capital reserves 1,973 11,053 13,026
Revenue reserve 1,600 - 1,600
-------- -------- --------
Shareholders' Funds 48,044 49,942 97,986
-------- -------- --------
Net asset value per share
(pence) 8 114.98p 147.02p
Unaudited Condensed Statement of Cash Flows
Six months to 30 November 2016
Notes Income Growth
Shares Shares Total
GBP'000 GBP'000 GBP'000
-------- -------- --------
Net cash inflow from operating
activities 9 784 86 870
Investing activities
Purchases of investments (6,300) (3,253) (9,553)
Sales of investments 5,948 3,551 9,499
-------------------------------- ------ -------- -------- --------
Cash flows from investing
activities (352) 298 (54)
-------------------------------- ------ -------- -------- --------
Cash flows before financing
activities 432 384 816
-------------------------------- ------ -------- -------- --------
Financing activities
Equity dividends paid (1,188) - (1,188)
Net proceeds from issuance
of new shares 6 5 11
Shares purchased to be held
in treasury (267) (418) (685)
Loan drawn down 2,500 - 2,500
Cash flows from financing
activities 1,051 (413) 638
-------------------------------- ------ -------- -------- --------
Net movement in cash and
cash equivalents 1,483 (29) 1,454
Cash and cash equivalents
at the beginning of the
period
Cash and cash equivalents 762 1,005 1,767
at the end of the
period 2,245 976 3,221
-------------------------------- ------ -------- -------- --------
Represented by:
Cash at bank and short-term
deposits 2,245 976 3,221
-------------------------------- ------ -------- -------- --------
Unaudited Condensed Statement of Cash Flows
Six months to 30 November 2015
Notes Income Growth
Shares Shares Total
GBP'000 GBP'000 GBP'000
-------- -------- --------
Net cash inflow from operating
activities 9 706 62 768
Investing activities
Purchases of investments (3,371) (3,291) (6,662)
Sales of investments 1,199 1,237 2,436
-------------------------------- ---------------- -------- --------
Cash flows from investing
activities (2,172) (2,054) (4,226)
-------------------------------- ---------------- -------- --------
Cash flows before financing
activities (1,466) (1,992) (3,458)
-------------------------------- ---------------- -------- --------
Financing activities
Equity dividends paid (964) - (964)
Net proceeds from issuance
of new shares 2,165 2,361 4,526
Cash flows from financing
activities 1,201 2,361 3,562
-------------------------------- ---------------- -------- --------
Net movement in cash and
cash equivalents (265) 369 104
Cash and cash equivalents
at the beginning of the
period
Cash and cash equivalents 1,388 1,063 2,451
at the end of the
period 1,123 1,432 2,555
-------------------------------- ---------------- -------- --------
Represented by:
Cash at bank and short-term
deposits 1,123 1,432 2,555
-------------------------------- ---------------- -------- --------
Condensed Statement of Cash Flows (audited)
Year to 31 May 2016
Income Growth
Notes Shares Shares Total
GBP'000 GBP'000 GBP'000
-------- -------- ---------
Net cash inflow from operating
activities 9 1,535 226 1,761
Investing activities
Purchases of investments (9,703) (8,606) (18,309)
Sales of investments 1,682 2,035 3,717
-------------------------------- -------- -------- -------- ---------
Cash flows from investing
activities (8,021) (6,571) (14,592)
-------------------------------- -------- -------- -------- ---------
Cash flows before financing
activities (6,486) (6,345) (12,831)
-------------------------------- -------- -------- -------- ---------
Financing activities
Equity dividends paid (1,910) - (1,910)
Net proceeds from issue
of new shares 9,118 8,159 17,277
Sale of shares from treasury - 400 400
Shares purchased to be held
in treasury (848) (872) (1,720)
Loan repayment (500) (1,400) (1,900)
-------------------------------- -------- -------- -------- ---------
Cash flows from financing
activities 5,860 6,287 12,147
-------------------------------- -------- -------- -------- ---------
Net movement in cash and
cash equivalents (626) (58) (684)
Cash and cash equivalents
at the beginning of the
period
Cash and cash equivalents 1,388 1,063 2,451
at the end of the
period 762 1,005 1,767
-------------------------------- -------- -------- -------- ---------
Represented by:
Cash at bank and short-term
deposits 762 1,005 1,767
-------------------------------- -------- -------- -------- ---------
Unaudited Condensed Statement of Changes in Equity
Six months to 30 November 2016
Share Capital Total
Share premium redemption Special Capital Revenue shareholders'
capital account reserve reserve reserves reserve funds
Income Shares GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
--------------------- ---------- --------- ------------ ---------- ----------- ---------- ---------------
As at 31
May 2016 4,254 21,685 - 18,532 1,973 1,600 48,044
--------------------- ---------- --------- ------------ ---------- ----------- ---------- ---------------
Shares purchased
for treasury - - - (267) - - (267)
--------------------- ---------- --------- ------------ ---------- ----------- ---------- ---------------
Transfer
of net income
from Growth
to Income
Portfolio - - - - - 274 274
--------------------- ---------- --------- ------------ ---------- ----------- ---------- ---------------
Transfer
of capital
from Income
to Growth
Portfolio - - - - (274) - (274)
--------------------- ---------- --------- ------------ ---------- ----------- ---------- ---------------
Dividends
paid - - - - - (1,188) (1,188)
--------------------- ---------- --------- ------------ ---------- ----------- ---------- ---------------
Return attributable
to shareholders - - - - 3,732 938 4,670
--------------------- ---------- --------- ------------ ---------- ----------- ---------- ---------------
As at 30
November
2016 4,254 21,685 - 18,265 5,431 1,624 51,259
--------------------- ---------- --------- ------------ ---------- ----------- ---------- ---------------
Growth Shares
--------------------- ---------- --------- ------------ ---------- ----------- ---------- ---------------
As at 31
May 2016 3,428 18,546 182 16,733 11,053 - 49,942
--------------------- ---------- --------- ------------ ---------- ----------- ---------- ---------------
Shares purchased
for treasury - - - (418) - - (418)
--------------------- ---------- --------- ------------ ---------- ----------- ---------- ---------------
Transfer
of net income
from Growth
to Income
Portfolio - - - - - (274) (274)
--------------------- ---------- --------- ------------ ---------- ----------- ---------- ---------------
Transfer
of capital
from Income
to Growth
Portfolio - - - - 274 - 274
--------------------- ---------- --------- ------------ ---------- ----------- ---------- --------------- Return attributable to shareholders - - - - 4,684 274 4,958 --------------------- ---------- --------- ------------ ---------- ----------- ---------- --------------- As at 30 November 2016 3,428 18,546 182 16,315 16,011 - 54,482 --------------------- ---------- --------- ------------ ---------- ----------- ---------- --------------- Total Company --------------------- ---------- --------- ------------ ---------- ----------- ---------- --------------- As at 31 May 2016 7,682 40,231 182 35,265 13,026 1,600 97,986 --------------------- ---------- --------- ------------ ---------- ----------- ---------- --------------- Shares purchased for treasury - - - (685) - - (685) --------------------- ---------- --------- ------------ ---------- ----------- ---------- --------------- Dividends paid - - - - - (1,188) (1,188) --------------------- ---------- --------- ------------ ---------- ----------- ---------- --------------- Return attributable to shareholders - - - - 8,416 1,212 9,628 --------------------- ---------- --------- ------------ ---------- ----------- ---------- --------------- As at 30 November 2016 7,682 40,231 182 34,580 21,442 1,624 105,741 --------------------- ---------- --------- ------------ ---------- ----------- ---------- ---------------
Unaudited Condensed Statement of Changes in Equity
Six months to 30 November 2015
Share Capital Total
Share premium redemption Special Capital Revenue shareholders'
capital account reserve reserve reserves reserve funds
Income Shares GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
--------------------- ---------- --------- ------------ ---------- ----------- ---------- ---------------
As at 31
May 2015 3,469 13,346 - 19,380 6,320 1,324 43,839
--------------------- ---------- --------- ------------ ---------- ----------- ---------- ---------------
Increase
in share
capital
in issue,
net of share
issuance
expenses 785 8,344 - - - - 9,129
--------------------- ---------- --------- ------------ ---------- ----------- ---------- ---------------
Transfer
of net income
from Growth
to Income
Portfolio - - - - - 196 196
--------------------- ---------- --------- ------------ ---------- ----------- ---------- ---------------
Transfer
of capital
from Income
to Growth
Portfolio - - - - (196) - (196)
--------------------- ---------- --------- ------------ ---------- ----------- ---------- ---------------
Dividends
paid - - - - - (964) (964)
--------------------- ---------- --------- ------------ ---------- ----------- ---------- ---------------
Return attributable
to shareholders - - - - (3,115) 811 (2,304)
--------------------- ---------- --------- ------------ ---------- ----------- ---------- ---------------
As at 30
November
2015 4,254 21,690 - 19,380 3,009 1,367 49,700
--------------------- ---------- --------- ------------ ---------- ----------- ---------- ---------------
Growth Shares
--------------------- ---------- --------- ------------ ---------- ----------- ---------- ---------------
As at 31
May 2015 2,884 10,927 182 17,197 13,201 - 44,391
--------------------- ---------- --------- ------------ ---------- ----------- ---------- ---------------
Increase
in share
capital
in issue,
net of share
issuance
expenses 544 7,622 - - - - 8,166
--------------------- ---------- --------- ------------ ---------- ----------- ---------- ---------------
Transfer
of net income
from Growth
to Income
Portfolio - - - - - (196) (196)
--------------------- ---------- --------- ------------ ---------- ----------- ---------- ---------------
Transfer
of capital
from Income
to Growth
Portfolio - - - - 196 - 196
--------------------- ---------- --------- ------------ ---------- ----------- ---------- ---------------
Return attributable
to shareholders - - - - (1,270) 196 (1,074)
--------------------- ---------- --------- ------------ ---------- ----------- ---------- ---------------
As at 30
November
2015 3,428 18,549 182 17,197 12,127 - 51,483
--------------------- ---------- --------- ------------ ---------- ----------- ---------- ---------------
Total Company
--------------------- ---------- --------- ------------ ---------- ----------- ---------- ---------------
As at 31
May 2015 6,353 24,273 182 36,577 19,521 1,324 88,230
--------------------- ---------- --------- ------------ ---------- ----------- ---------- ---------------
Increase
in share
capital
in issue,
net of share
issuance
expenses 1,329 15,966 - - - - 17,295
--------------------- ---------- --------- ------------ ---------- ----------- ---------- ---------------
Dividends
paid - - - - - (964) (964)
--------------------- ---------- --------- ------------ ---------- ----------- ---------- ---------------
Return attributable
to shareholders - - - - (4,385) 1,007 (3,378)
--------------------- ---------- --------- ------------ ---------- ----------- ---------- ---------------
As at 30
November
2015 7,682 40,239 182 36,577 15,136 1,367 101,183
--------------------- ---------- --------- ------------ ---------- ----------- ---------- ---------------
Condensed Statement of Changes in Equity (audited)
Year to 31 May 2016
Share Capital Total
Share premium redemption Special Capital Revenue shareholders'
capital account reserve reserve reserves reserve funds
Income Shares GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
--------------------- ---------- --------- ------------ ---------- ----------- ---------- ---------------
As at 31
May 2015 3,469 13,346 - 19,380 6,320 1,324 43,839
--------------------- ---------- --------- ------------ ---------- ----------- ---------- ---------------
Increase
in share
capital
in issue,
net of share
issuance
expenses 785 8,339 - - - - 9,124
--------------------- ---------- --------- ------------ ---------- ----------- ---------- ---------------
Shares purchased
for treasury - - - (848) - - (848)
--------------------- ---------- --------- ------------ ---------- ----------- ---------- ---------------
Transfer
of net income
from Growth
to Income
Portfolio - - - - - 438 438
--------------------- ---------- --------- ------------ ---------- ----------- ---------- ---------------
Transfer
of capital
from Income
to Growth
portfolio - - - - (438) - (438)
--------------------- ---------- --------- ------------ ---------- ----------- ---------- ---------------
Dividends
paid - - - - - (1,910) (1,910)
--------------------- ---------- --------- ------------ ---------- ----------- ---------- ---------------
Return attributable
to shareholders - - - - (3,909) 1,748 (2,161)
--------------------- ---------- --------- ------------ ---------- ----------- ---------- ---------------
As at 31
May 2016 4,254 21,685 - 18,532 1,973 1,600 48,044 --------------------- ---------- --------- ------------ ---------- ----------- ---------- --------------- Growth Shares --------------------- ---------- --------- ------------ ---------- ----------- ---------- --------------- As at 31 May 2015 2,884 10,927 182 17,197 13,201 - 44,391 --------------------- ---------- --------- ------------ ---------- ----------- ---------- --------------- Increase in share capital in issue, net of share issuance expenses 544 7,619 - - - - 8,163 --------------------- ---------- --------- ------------ ---------- ----------- ---------- --------------- Shares sold from treasury - - - 408 (8) - 400 --------------------- ---------- --------- ------------ ---------- ----------- ---------- --------------- Shares purchased for treasury - - - (872) - - (872) --------------------- ---------- --------- ------------ ---------- ----------- ---------- --------------- Transfer of net income from Growth to Income Portfolio - - - - - (438) (438) --------------------- ---------- --------- ------------ ---------- ----------- ---------- --------------- Transfer of capital from Income to Growth Portfolio - - - - 438 - 438 --------------------- ---------- --------- ------------ ---------- ----------- ---------- --------------- Return attributable to shareholders - - - - (2,578) 438 (2,140) --------------------- ---------- --------- ------------ ---------- ----------- ---------- --------------- As at 31 May 2016 3,428 18,546 182 16,733 11,053 - 49,942 --------------------- ---------- --------- ------------ ---------- ----------- ---------- --------------- Total Company --------------------- ---------- --------- ------------ ---------- ----------- ---------- --------------- As at 31 May 2015 6,353 24,273 182 36,577 19,521 1,324 88,230 --------------------- ---------- --------- ------------ ---------- ----------- ---------- --------------- Increase in share capital in issue, net of share issuance expenses 1,329 15,958 - - - - 17,287 --------------------- ---------- --------- ------------ ---------- ----------- ---------- --------------- Shares sold from treasury - - - 408 (8) - 400 --------------------- ---------- --------- ------------ ---------- ----------- ---------- --------------- Shares purchased for treasury - - - (1,720) - - (1,720) --------------------- ---------- --------- ------------ ---------- ----------- ---------- --------------- Dividends paid - - - - - (1,910) (1,910) --------------------- ---------- --------- ------------ ---------- ----------- ---------- --------------- Return attributable to shareholders - - - - (6,487) 2,186 (4,301) --------------------- ---------- --------- ------------ ---------- ----------- ---------- --------------- As at 31 May 2016 7,682 40,231 182 35,265 13,026 1,600 97,986 --------------------- ---------- --------- ------------ ---------- ----------- ---------- ---------------
Statement of Principal Risks and Uncertainties
Most of the Company's principal risks that could threaten the achievement of its objective; strategy, future performance, liquidity and solvency are market related and comparable to those of other investment trusts investing primarily in listed securities.
These risks, and the way in which they are managed, are described in more detail under the heading "Principal Risks and Viability Statement" within the Strategic Report in the Company's 2016 Annual Report.
The Company's principal risks and uncertainties have not changed materially since the date of that report and are not expected to change materially for the remainder of the Company's financial year.
The most important types of risk associated with financial instruments are credit risk, market price risk, liquidity risk, interest rate risk and foreign currency risk. Other risks faced by the Company include investment, custody and operational risks.
Statement of Directors' Responsibilities in Respect of the Interim Report
We confirm, that to the best of our knowledge:
-- the condensed set of financial statements have been prepared in accordance with applicable UK Accounting Standards on a going concern basis and give a true and fair view of the assets, liabilities, financial position and return of the Company;
-- the Chairman's Statement (constituting the Interim Management Report) together with the Statement of Principal Risks and Uncertainties shown above include a fair review of the information required by the Disclosure and Transparency Rules ('DTR') 4.2.7R, being an indication of important events that have occurred during the first six months of the financial year and their impact on the financial statements; and
-- the condensed set of financial statements include a fair review of the information required by DTR 4.2.8R, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the Company during the period, and any changes in the related party transactions described in the last Annual Report that could do so.
On behalf of the Board
Richard M. Martin
Director
19 January 2017
Notes
1. Accounting Policies
The unaudited interim results have been prepared on a going concern basis in accordance with the Disclosure and Transparency Rules of the Financial Conduct Authority, FRS 102, FRS 104 Interim Financial Reporting issued by the FRC in March 2015 and Statement of Recommended Practice ("SORP") "Financial Statements of Investment Trust Companies and Venture Capital Trusts" issued by the AIC in November 2014.
The accounting policies applied for the unaudited interim results are set out in the Company's annual report for the year ended 31 May 2016.
2. Income
Six months Six months Year to
to to 31 May
30 November 30 November 2016
2016 2015
GBP'000 GBP'000 GBP'000
----------------------- ---------------- ---------------- -----------
UK dividends 1,049 741 1,635
Overseas dividends 499 541 1,132
Interest on
fixed
interest
securities 6 9 17
Deposit income 5 7 13
Total income 1,559 1,298 2,797
----------------------- ---------------- ---------------- -----------
3. Investment management and performance fee
There have been no changes to the terms of the management and performance fee arrangements with F&C Investment Business Limited, which are set out in detail in the Annual Report and Accounts to 31 May 2016.
During the period, the Company has incurred investment management fees of GBP343,000, (30 November 2015: GBP287,000; 31 May 2016: GBP593,000) of which GBP175,000 is payable to F&C Investment Business Limited at the period end.
At 30 November 2016 the adjusted total return of the Income Portfolio for the period since 31 May 2016 (being the date a performance fee was last payable) exceeded that of the FTSE All-Share Index and a performance fee of GBP5,000 has been accrued. At 30 November 2016 the adjusted total return of the Growth portfolio since launch did not exceed that of the FTSE All-Share Index and a performance fee has not been recognised in the Growth Portfolio (30 November 2015: GBPnil - Income Portfolio and GBP30,000 - Growth Portfolio; 31 May 2016: GBP2,000 - Income Portfolio and GBPnil - Growth Portfolio).
4. Investments
Income Growth
Shares Shares
Level Level Total
1* 1* GBP'000
GBP'000 GBP'000
---------------------------- --------- --------- ----------
Cost at 31 May 2016 40,589 37,471 78,060
Gains at 31 May 2016 7,673 11,580 19,253
---------------------------- --------- --------- ----------
Valuation at 31 May 2016 48,262 49,051 97,313
Movement in the period:
Purchases at cost 6,304 3,253 9,557
Sales proceeds (5,948) (3,551) (9,499)
Gains on investments sold
in the period 931 1,213 2,144
Gains on investments held
at period end 2,912 3,608 6,520
---------------------------- --------- --------- ----------
Valuation of investments
held at 30 November 2016 52,461 53,574 106,035
---------------------------- --------- --------- ----------
Income Growth
Shares Shares
Level Level Total
1* 1* GBP'000
GBP'000 GBP'000
---------------------------- --------- --------- ----------
Cost at 30 November 2016 41,876 38,386 80,262
Gains at 30 November 2016 10,585 15,188 25,773
---------------------------- --------- --------- ----------
Valuation at 30 November
2016 52,461 53,574 106,035
---------------------------- --------- --------- ----------
* Fair value hierarchy
The Company's investments as disclosed in the balance sheet are valued at fair value. The fair value as at the reporting date has been estimated using the following fair value hierarchy:
-- Level 1 - Quoted prices (unadjusted) in active markets for identical assets (previously described as Level A)
-- Level 2 - Investments whose value is evidenced by comparison with other observable current market transactions in the same instrument or based on a valuation technique whose variables includes only data from observable markets (previously described as Level B)
-- Level 3 - Investments whose value is not based on observable market data (previously described as Level C).
There are no investments held which are valued in accordance with levels 2 or 3.
5. Return per share
The return per share for the six months to 30 November 2016 is as follows:
Income Shares Growth Shares
Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------------- -------- -------- -------- -------- -------- --------
Return attributable
to
Portfolios 938 3,732 4,670 274 4,684 4,958
Transfer of
net income
from Growth
to Income
Portfolio 274 - 274 (274) - (274)
Transfer of
capital from
Income to
Growth
Portfolio - (274) (274) - 274 274
--------------------- -------- -------- -------- -------- -------- --------
Return attributable
to
shareholders 1,212 3,458 4,670 - 4,958 4,958
Return per
share 2.91p 8.30p 11.21p - 14.69p 14.69p
Weighted average
number of shares
in issue during
the period 41,664,543 33,756,997
--------------------- ---------------------------- ----------------------------
The return per share for the comparative six months to 30 November 2015 is as follows:
Income Shares Growth Shares
Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Return attributable
to
shareholders 1,007 (3,311) (2,304) - (1,074) (1,074)
Return per
share 2.83p (9.31)p (6.48)p - (3.60)p (3.60)p
Weighted average
number of shares
in issue during
the period 35,559,855 29,836,768
---------------------- -------------------------------- --------------------------------
The return per share for the comparative year to 31 May 2016 is as follows:
Income Shares Growth Shares
Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Return attributable
to
shareholders 2,186 (4,347) (2,161) - (2,140) (2,140)
Return per
share 5.62p (11.18)p (5.56)p - (6.72)p (6.72)p
Weighted average
number of shares
in issue during
the period 38,891,707 31,829,730
--------------------- -------------------------------- --------------------------------
6. Dividends
Six months Six months Year
to to to
30 November 30 November 31
2016 2015 May
2016
Dividends on Income Shares GBP'000 GBP'000 GBP'000
------------------------------------- ------------- ------------- --------
Amounts recognised as distributions
during the period:
In respect of the previous
financial year:
- fourth interim of 1.60p
(prior period: 1.55p) per
share 669 538 538
In respect of the period
under review:
- first interim of 1.25p
(prior period: 1.20p) per
share 519 426 426
- second interim (prior
period: 1.20p per share) - - 439
- third interim (prior
period: 1.20p per share) - - 507
------------------------------------- ------------- ------------- --------
1,188 964 1,910
------------------------------------- ------------- ------------- --------
A second interim dividend in respect of the year to 31 May 2017 of 1.25p per Income share was paid on 6 January 2017 to shareholders on the register on 16 December 2016. This amount has not been accrued in the results for the six months to 30 November 2016.
For the financial year to 31 May 2016 interim dividends totalled 5.2p per Income share.
The Growth shares do not carry an entitlement to receive dividends.
7. Share capital
Listed Held in In issue
Treasury
--------------------- -------------------- ---------------------
Number GBP'000 Number GBP'000 Number GBP'000
Income shares
of 10p each
Balance at 1 June
2016 42,535,035 4,254 (750,000) (75) 41,785,035 4,179
Purchased for
Treasury - - (225,000) (23) (225,000) (23)
------------------- ----------- -------- ---------- -------- ----------- --------
Balance at 30
November 2016 42,535,035 4,254 (975,000) (98) 41,560,035 4,156
------------------- ----------- -------- ---------- -------- ----------- --------
During the period the Company bought back 225,000 Income shares to be held in treasury at a cost of GBP267,000. At 30 November 2016 the Company held 975,000 Income shares in treasury.
Listed Held in Treasury In issue
----------------------- ------------------------ -----------------------
Number GBP'000 Number GBP'000 Number GBP'000
Growth shares
of 10p each
Balance at 1 June
2016 34,277,037 3,428 (308,537) (31) 33,968,500 3,397
Purchased for
Treasury - - (285,000) (29) (285,000) (29)
Balance at 30
November 2016 34,277,037 3,428 (593,537) (60) 33,683,500 3,368
------------------------ ------------- -------- -------------- -------- ------------- --------
Total at 30 November
2016 76,812,072 7,682 (1,568,537) (158) 75,243,535 7,524
------------------------ ------------- -------- -------------- -------- ------------- --------
During the period the Company bought back 285,000 Growth shares to be held in treasury at a cost of GBP418,000. At 30 November 2016 the Company held 593,537 Growth shares in treasury.
8. Net asset value per share
30 November 30 November 31 May
2016 2015 2016
Income shares
Net asset value per
share 123.34p 116.84p 114.98p
Net assets attributable
at end of
period - GBP'000s 51,259 49,700 48,044
Shares in issue at end
of period - number 41,560,035 42,535,035 41,785,035
Growth shares
Net asset value per
share 161.75p 150.20p 147.02p
Net assets attributable
at end of
period - GBP'000s 54,482 51,483 49,942
Shares in issue at end
of period - number 33,683,500 34,277,037 33,968,500
9. Reconciliation of return on ordinary activities before tax to cash flows from operating activities
Income Shares Growth Total
Six months to 30 GBP'000 Shares GBP'000
November 2016 GBP'000
-------------------------- ----------------- ---------- ----------
Return on ordinary
activities before tax
Adjust for returns
from non-operating
activities: 4,678 4,959 9,637
Gains on investments (3,843) (4,821) (8,664)
Exchange gains (4) - (4)
--------------------------- ---------------- ---------- ----------
Return from operating
activities 831 138 969
Increase in prepayments
and accrued
income (36) (51) (87)
Increase in creditors 7 1 8
Withholding tax suffered (18) (2) (20)
--------------------------- ---------------- ---------- ----------
Net cash flows from
operating activities 784 86 870
--------------------------- ---------------- ---------- ----------
Income Shares Growth Shares Total
Six months to 30 GBP'000 GBP'000 GBP'000
November 2015
-------------------------- --------------- -------------- ---------
Return on ordinary
activities before tax
Adjust for returns
from non-operating
activities: (2,298) (1,072) (3,370)
Losses on investments 3,028 1,116 4,144
Exchange losses (3) - (3)
--------------------------- -------------- -------------- ---------
Return from operating
activities 727 44 771
Increase in prepayments
and accrued
income (6) (5) (11)
(Decrease)/increase
in creditors (9) 25 16
Withholding tax suffered (6) (2) (8)
--------------------------- -------------- -------------- ---------
Net cash flows from
operating activities 706 62 768
--------------------------- -------------- -------------- ---------
Income Shares Growth Total
Year ended 31 May 2016 GBP'000 Shares GBP'000
GBP'000
-------------------------- ---------------- ---------- ----------
Return on ordinary
activities before tax
Adjust for returns
from non-operating
activities: (2,152) (2,138) (4,290)
Losses on investments 3,725 2,326 6,051
Exchange gains (2) - (2)
-------------------------- ---------------- ---------- ----------
Return from operating
activities 1,571 188 1,759
(Increase)/decrease
in prepayments and
accrued income (33) 21 (12)
Increase in creditors 18 19 37
Withholding tax suffered (21) (2) (23)
-------------------------- ---------------- ---------- ----------
Net cash flows from
operating activities 1,535 226 1,761
-------------------------- ---------------- ---------- ----------
10. Earnings for the six months to 30 November 2016 should not be taken as a guide to the results of the full year to 31 May 2017.
11. Tax
The effective revenue tax rate for the period to 30 November 2016 is 0.7 per cent (30 November 2015: 0.8 per cent; 31 May 2016: 0.5 per cent). This is lower than the rate of corporation tax for small companies due to the level of non-taxable dividend income.
12. Bank borrowing
The Company has a GBP5 million unsecured revolving credit facility ("RCF") agreement with The Royal Bank of Scotland plc until 10 February 2017 of which GBP3.5 million was drawn down at 30 November 2016 (GBP3.5 million was drawn down in the Income Portfolio and GBPnil was drawn down in the Growth Portfolio). The interest rates on amounts drawn down are variable based on LIBOR plus a margin and a non-utilisation fee is payable on undrawn amounts.
13. Going concern
In assessing the going concern basis of accounting, the Directors have had regard to the guidance issued by the Financial Reporting Council and have undertaken a rigorous review of the Company's ability to continue as a going concern.
The Company's investment objective and policy, which is subject to regular Board monitoring processes, is designed to ensure that the Company is invested principally in listed securities. The Company retains title to all assets held by its custodian and has an agreement relating to its borrowing facility with which it has complied. Cash is only held with banks approved and regularly reviewed by the Manager.
The Directors believe in light of the controls and review processes and bearing in mind the nature of the Company's business and assets and revenue and expenditure projections, that the Company has adequate resources to continue in operational existence within its stated investment policy for a period of at least twelve months commencing from the date of approval of the accounts. Accordingly, the financial statements have been drawn up on the basis that the Company is a going concern.
14. Results
The Company's auditors, Ernst & Young LLP have not audited or reviewed the Interim Report to 30 November 2016 pursuant to the Auditing Practices Board guidance on 'Review of Interim Financial Information'. These are not full statutory accounts in terms of Section 434 of the Companies Act 2006 and are unaudited. Statutory accounts for the year ended 31 May 2016, which received an unqualified audit report and which did not contain a statement under Section 498 of the Companies Act 2006, have been lodged with the Registrar of Companies. The abridged financial statements included for the year ended 31 May 2016 are an extract from those accounts. No full statutory accounts in respect of any period after 31 May 2016 have been reported on by the Company's auditors or delivered to the Registrar of Companies. The Interim Report will be posted to shareholders shortly and is available on the website: www.fcmanagedportfolio.co.uk
For further information, please contact:
Peter Hewitt, F&C Investment Business Limited 0131 718 1244 Ian Ridge, F&C Investment Business Limited 0131 718 1010
This information is provided by RNS
The company news service from the London Stock Exchange
END
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