Interim Management Statement

 
TIDMBPW 
 
Interim Management Statement - Blue Planet Worldwide Financials Investment 
Trust plc 
 
Quarter Ended the 30th April 2012 
 
Fund Manager's Review 
 
In April the NAV per share of the Fund fell 4.8% to 46.65p before taking 
account of GBP83,450 of merger costs which were met during the month. Those 
merger costs will however be offset by an uplift in NAV per share when the 
Fund's cross-shareholdings are cancelled on completion of the proposed merger. 
Over the last three months the Fund's NAV has fallen 4% and its share price 
risen by 11.5%, whilst the benchmark has risen 1.8%. 
 
The month was very disappointing not least because it is becoming increasingly 
clear from a wide range of economic indicators that the recovery in the US 
economy, where most of our investments are, is broadening and gathering pace. 
During the month data was released showing that in March consumer credit 
increased by the most in 10 years, consumer spending is rising; banks are 
beginning to lend again; small business confidence has risen to a 
post-recession high; and that in the first quarter house prices rose in more 
than half of all American cities signifying the housing market is stabilizing. 
In addition, US companies reported excellent first quarter earnings with over 
70% of S&P 500 companies beating estimates. In addition and of great importance 
the US Government had a budget surplus of $59.1bn in April the first surplus 
since September 2008 and the third largest since 2007. In summary, our US 
equities ought to be rising to reflect this improving economic environment yet 
for the most part they fell during the month. 
 
Sadly Greece, an economically insignificant country, with a GDP of only some 
EUR200bn and total outstanding Government debt of about EUR330bn - that is less 
than a fifth of the size of BNP Paribas' balance sheet - is responsible for 
this. European banks have the capacity to absorb a complete right down of all 
Greek Government debt if that were ever to be required. With approximately 70% 
of Greek Government Debt currently held by the ECB, IMF, and EU bailout funds, 
private sector exposure following the Debt Swap Deal in March is only about 
EUR89bn. To put this it into perspective that is the equivalent of about 5% of 
European banks' shareholders' funds. 
 
Several companies in which we are invested reported quarterly earnings during 
the month. Adjusted for one-time gains and extraordinary items they were as 
follows: 
 
 
American International Group +101% quarter on quarter and +27% year on year. 
Capital One +88% quarter on quarter and -25% year on year. 
JP Morgan Chase +27% quarter on quarter and +3.3% year on year. 
US Bancorp +6.3% quarter on quarter and +37% year on year. 
 
 
Cumulative Performance (%) as of 30th April 2012 
 
                Current  1 month  3 months 6 months  1 year  3 years  5 years 
                  (p) 
 
     NAV           46.05    -6.1%    -4.0%   -10.3%   -30.1%   -35.0%   -78.4% 
 
Share Price -      29.00     1.8%    11.5%    -6.5%   -25.6%   -48.3%   -84.0% 
 Total Return 
 
 Benchmark -       63.65    -2.7%     1.8%     7.7%   -10.0%    26.0%   -22.4% 
 Total Return 
 
 Discount / +      -37.0    -41.9    -45.8    -39.6    -40.8    -20.6    -15.5 
 Premium (%) 
 
Source: Blue Planet, share price bid to bid, net income reinvested 
 
 
Discrete Annual Performance (%) as of 30th April 2012 
 
                                  Share price                 Benchmark 
 
      1Q/11 - 1Q/12                  -32.1%                     -8.3% 
 
      1Q/10 - 1Q/11                  -38.2%                     0.5% 
 
      1Q/09 - 1Q/10                  77.0%                      60.1% 
 
      1Q/08 - 1Q/09                  -68.6%                    -34.1% 
 
      1Q/07 - 1Q/08                  -44.7%                    -15.8% 
 
Source: Blue Planet, share price bid to bid, net income reinvested 
 
 
Portfolio Information as of 30th April 2012 
 
              Security       Security        Country     Valuation   Weighting 
                Type           Name                          GBP           % 
 
     12,226    Equity       Capital One       United      417,901       6.4 
                             Financial        States 
                            Corporation 
 
    174,169    Equity     Resolution Ltd      United      389,790       6.0 
                                             Kingdom 
 
    285,240    Equity     Legal & General     United      335,442       5.2 
                             Group Plc       Kingdom 
 
    108,810    Equity        Aviva Plc        United      335,244       5.2 
                                             Kingdom 
 
    275,100    Equity     Henderson Group     United      333,146       5.1 
                                Plc          Kingdom 
 
     25,020    Equity        Hartford         United      316,719       4.9 
                             Financial        States 
                             Services 
 
      2,075    Equity    Zurich Insurance  Switzerland    312,475       4.8 
                             Group AG 
 
     62,672    Equity     Bank of America     United      312,318       4.8 
                            Corporation       States 
 
    612,500    Equity     PT Bank Mandiri   Indonesia     301,676       4.6 
                           (Persero) Tbk 
 
    586,000    Equity     PT Bank Rakyat    Indonesia     259,173       4.0 
                             Indonesia 
                           (Persero) Tbk 
 
     11,834    Equity      U.S. Bancorp       United      234,435       3.6 
                                              States 
 
    217,835    Equity      RSA Insurance      United      228,509       3.5 
                             Group Plc       Kingdom 
 
      7,910    Equity    JP Morgan Chase &    United      209,225       3.2 
                                Co            States 
 
     58,860    Equity     Tullett Prebon      United      202,184       3.1 
                                plc          Kingdom 
 
      8,410    Equity    iShares S&P U.S.     United      200,710       3.1 
                          Preferred Stock     States 
                            Index Fund 
 
  1,866,005    Equity          Other          Other      1,667,931     25.7 
 
 
                                                         6,056,878     93.2 
 
              Security         Cash        Denomination  Valuation   Weighting 
                Type       Security Name                     GBP           % 
 
            Fixed Income  LloydsTSB Bank      United      224,264       3.5 
                          plc 22/04/2025     Kingdom 
                              7.625% 
 
            Fixed Income  LloydsTSB Bank      United      130,406       2.0 
                          plc 29/05/2020     Kingdom 
                              6.9625% 
 
                                                          354,670       5.5 
 
              Security         Cash        Denomination  Valuation   Weighting 
                Type       Security Name                     GBP           % 
 
               Liquid    Near Cash Assets      GBP           0          0.0 
               Assets 
 
               Liquid          Cash            GBP        86,442        1.3 
               Assets 
 
               Liquid          Cash           Other          0          0.0 
               Assets                        Currency 
 
                                                          86,442        1.3 
 
                                                         6,497,990      100 
 
For more information, please visit www.blueplanet.eu 
 
You can also contact the Company on 0845 527 7588 or by emailing 
[e-mail] 
 
 
 
END