TO:	RNS
FROM:	CT Global Managed Portfolio Trust PLC
DATE:	27 January 2023
LEI:	213800ZA6TW45NM9YY31

 

Unaudited Interim Results

The Board of CT Global Managed Portfolio Trust PLC announces the unaudited interim results of the Company for the six month period to 30 November 2022.

 

Income Shares - Financial Highlights and Performance Summary for the Six Months

 

·   Dividend yield⁽¹⁾ of 5.4% at 30 November 2022, compared to the yield on the FTSE All-Share Index of 3.5%. Dividends are paid quarterly.

·   Net asset value total return⁽¹⁾ per Income share of -5.4% for the six months, underperforming the total return of the FTSE All-Share Index of +0.3% by -5.7% points.

 

Growth Shares - Financial Highlights and Performance Summary for the Six Months

 

·   Net asset value total return⁽¹⁾ per Growth share of -3.7% for the six months, underperforming the total return of the FTSE All-Share Index of +0.3% by -4.0% points.

·    The net asset value per Growth share has increased by +123.9% over 10 years, the equivalent of +8.4% compound⁽¹⁾ per year. This has outperformed the total return of the FTSE All-Share Index of +92.8%, the equivalent of +6.8% compound per year.

 

Notes:

(1)   Yield, total return and compound annual growth rate - See Alternative Performance Measures.

 

 

Chairman's Statement

 

Highlights

·     Net asset value ("NAV") total return for the six months of -5.4% for the Income shares and    -3.7% for the Growth shares as compared to the total return for the FTSE All-Share Index of +0.3%

·     NAV total return compound annual growth rate over 10 years of +6.8% for the Income shares and +8.4% for the Growth shares compared with +6.8% from the FTSE All-Share Index

·     Income share dividend yield of 5.4% at 30 November 2022

 

Investment Performance

 

For the six months to 30 November 2022, the NAV total return was -5.4% for the Income shares and -3.7% for the Growth shares. The total return for the benchmark index for both share classes, the FTSE All-Share Index, was +0.3%.

 

The long-term track record shows the NAV total return over 10 years has achieved a compound annual growth rate of +6.8% for the Income shares and +8.4% for the Growth shares compared with +6.8% from the benchmark index. Performance over the 12 months to 30 November 2022 (being the second half of the last financial year and the first half of the current financial year) has been difficult for the Company. The main factors behind this have been: the average sector discount widening from 2% to over 13%; the underperformance of medium and smaller companies in most global equity markets; and leadership within equity markets moving from "growth" to "value", best illustrated by the significant de-rating of structural growth companies in technology, healthcare and biotechnology. This has led to the NAV total return for both share classes underperforming the benchmark index over 3 years and 5 years to 30 November 2022. Until last year, for the 3 and 5 year periods to 30 November 2021, the NAV total return for both share classes had been well ahead of the benchmark index.

 

The period under review was particularly challenging for investment companies. The very modest positive return from mainstream equities was driven by a small group of mega-cap companies, led by the large oil and mining companies, at the top end of the FTSE 100 Index. Most companies experienced share price falls over the period, as highlighted by the FTSE Mid 250 Index declining by 4.8% and the FTSE Small Cap Index (ex Investment Companies) being down by 10.1%. Over the last decade medium and smaller companies in most equity markets of developed countries have consistently outperformed the largest companies who tend to be in mature low growth sectors like oil, mining, tobacco, banks and pharmaceuticals. When these largest companies lead the market then most active fund managers lag the Index, in terms of performance, as they tend to be overweight faster growing medium and smaller companies. This is what has occurred over the past six months and was behind the FTSE Investment Companies Sector Index declining by 1.5%. An illustration of the adverse investor sentiment over this period has been the substantial widening of the average investment company sector discount from 7% to over 13%.

 

The Income Portfolio was also affected by the sharp underperformance of the "alternatives" sector. These investment companies are held to diversify a portion of revenue earned away from equity market related trusts. Typically, they tend to be in the specialist property, renewables, infrastructure or royalty income sectors. All of these sectors experienced a sharp widening of their discounts when bond yields moved sharply upwards in September around the time of the ill-fated mini-budget. Encouragingly, this did not adversely affect dividends which have come through as expected both from "alternatives" and also equity investment companies held within the Portfolio. Best performers were global equity income trust Scottish American Investment Company with a 8% rise in its share price, followed by long- term outperformer NB Private Equity Partners which had a 7% share price gain. The principal detractors were all in the "alternatives" sector. Civitas Social Housing REIT fell 26% whilst specialist healthcare property company Assura experienced a share price fall of 24%. In both cases rising dividends were paid to shareholders.

 

The Growth Portfolio did slightly better, but still lagged the benchmark index. As the Growth Portfolio is focused on capital growth, it does not have the need to own higher yielding investment companies in the "alternatives" sector. Leading contributor was Biotech Growth Trust which had a share price gain of over 16%, which marked a welcome recovery after a significant sell off in 2021. Private equity specialist Oakley Capital Investments benefitted from a number of successful realisations which helped the shares to a 10% gain. Lastly, hedge fund BH Macro, which benefits from volatility in foreign currency and bond markets, had a 9% rise in its share price. The principal laggards were Schiehallion Fund which invests in high growth private technology companies and had a 29% decline in its share price and the Growth Portfolio's "alternative" copyright royalty income investment company, Hipgnosis Songs Fund, which experienced a 26% fall in its share price.

 

(All share prices are total return).

 

Revenue and Dividends

 

The Company's net revenue return for the six months was £1.96 million which is equivalent to 4.01p per Income share (compared to 3.54p per Income share for the corresponding period in 2021). Income shareholders are entitled to all the dividends paid by the Company. One benefit of the closed-end investment trust structure is the ability to utilise revenue reserves, built up in previous years, to sustain dividend payments during periods when there is a significant reduction in dividend income from underlying holdings. That has been the case, in particular over the last few years, and enabled many of our holdings to sustain or, in some cases, grow their dividend payments. It is encouraging that in the six months to 30 November 2022 a series of holdings, particularly amongst investment trusts invested in equities in both the Income Portfolio and Growth Portfolio, have announced increased dividend payments.

 

During the prior financial year, the Board sought to make the quarterly interim dividends of more equal amounts and has continued with that aim. In the absence of unforeseen circumstances, the Board intends to pay four quarterly interim dividends, each of 1.67p per Income share, and that the aggregate dividends for the current financial year to 31 May 2023 will be at least 6.68p per Income share (2022: 6.65p per Income share). Given the performance of the Company's revenue and the current rate of inflation, it is however highly likely that the fourth interim dividend will be higher than the corresponding dividend of 2.0p per Income share which was paid in July 2022, but this will be determined when a clearer view of income for the year emerges.

 

To date, a first and second interim dividend in respect of the year to 31 May 2023 have been announced, each at a rate of 1.67p per Income share (1.55p per Income share in the corresponding periods in the year to 31 May 2022).

 

A minimum expected annual rate of 6.68p per Income share represents a yield on the Income share price at 30 November 2022 of 5.4% which is materially higher than the yield of 3.5% on the FTSE All-Share Index at the same date.

 

Performance Fee

 

Since the launch of the Company in 2008, in addition to an annual investment management fee, based on the total assets of each Portfolio, if certain conditions were met, a performance fee had been payable to Columbia Threadneedle Investment Business Limited (the "Manager"). The performance fee, in respect of any one financial year, was capped at 0.35% of the total assets of the relevant Portfolio.

 

Over recent years, the use of performance fees, which are often complicated and costly, has reduced across the investment trust sector. During the current period, the Board and the Manager discussed the appropriateness of the performance fee and were pleased to agree its cessation with effect from 29 September 2022. Both the Board and Manager believe this to be in shareholders' best interests and will help simplify and reduce the level of fees incurred by the Company in the future. The last performance fee generated and payable to the Manager was in the year to 31 May 2021. There was no change made to the annual investment management fee.

 

Borrowing

 

At 30 November 2022 the Income Portfolio had total borrowings of £7 million (10.3% of gross assets), the investment of which helps to boost net income after allowing for the interest cost. The Growth Portfolio had no borrowings.

 

Management of Share Premium and Discount to NAV

 

In normal circumstances we aim to maintain the discount to NAV at which our shares trade at not more than 5%. In practice over the years the shares have generally traded close to NAV. During the six months to 30 November 2022 the average premium to NAV for the Income shares and for the Growth shares was 0.6% and 0.2% respectively. At 30 November 2022, the Income shares stood at a premium to NAV of 0.4% and the Growth shares at a discount of 1.5% to NAV.

 

We are active in issuing shares to meet demand and equally buying back when this is appropriate. During the six months to 30 November 2022, 815,000 new Income shares and 190,000 new Growth shares were issued from the Company's block listing facilities at an average premium to NAV of 1.7% and 1.5% respectively. 215,000 Growth shares were also bought back to be held in treasury at a discount to NAV of 5.3%.

 

Share Conversion Facility

 

Shareholders have the opportunity to convert their Income shares into Growth shares or their Growth shares into Income shares annually subject to minimum and maximum conversion thresholds which may be reduced or increased at the discretion of the Board. On 3 November 2022 the conversion proceeded for those shareholders who had elected to do so. The net result of those conversions was an increase of 393,338 Income shares and a decrease of 202,199 Growth shares in issue. The ability to convert without incurring capital gains tax should be an attractive facility for shareholders and the next conversion date (subject to minimum and maximum thresholds) will be in October 2023. Details will be provided when the Company's Annual Report is published in the summer.

 

Board Changes

 

Following the Annual General Meeting on 29 September 2022, David Harris retired from the Board. David was the Senior Independent Director and Sue Inglis now fulfils this role. As part of its succession plan, the Board was pleased to appoint Shauna Bevan as a non-executive Director with effect from 9 June 2022.

 

Company Name

 

As reported in my statement in the Annual Report to 31 May 2022, following the acquisition of the Company's Manager by Columbia Threadneedle Investments, part of Ameriprise Financial, the Board resolved to change the Company's name to CT Global Managed Portfolio Trust PLC, with effect from 29 June 2022.

 

Change of Auditor

 

As was explained in the Report of the Audit Committee in the Company's Annual Report to 31 May 2022, in view of increases in audit fees, it was agreed to conduct a competitive audit tender during the year. This was no reflection on the quality of the existing Auditor's work or any issue other than cost. Following this process, KPMG LLP has now formally resigned as the Company's auditor, having served since its appointment in September 2017. The Board has resolved to appoint BDO LLP and it will undertake the audit for the current year to 31 May 2023. Shareholders will be asked to approve its re-appointment for the following year at the AGM, currently scheduled for September 2023. As required by law, a formal letter from KPMG LLP in relation to its resignation accompanies the Interim Report.

 

Outlook

 

It is quite possible that inflation in the US has peaked. It may also be the case it has in Europe and, if not, it is not far from peaking, likely in the first quarter in 2023. More importantly, interest rates, which have risen rapidly in the US, UK and Europe throughout 2022, are towards their peak. However, there does remain a danger, particularly in the US, of overshoot by the Federal Reserve which would manifest in a deeper recession with a commensurate impact on corporate profits and earnings. The key will be the depth and duration of the coming recession. With unemployment at historically low levels a relatively mild recession is possible. Should that take place prospects for equity markets will brighten as we move through the year. In terms of investment strategy, though timing is always difficult, the current intention is to build further exposure to investment companies which either specialise in, or have significant exposure to, UK mid and small cap equities. This segment of the market experienced a challenging 2022, however valuations are attractive, and in the scenario outlined above, prospects for a recovery in performance are good.

 

 

 

David Warnock

Chairman

26 January 2023

 

Unaudited Condensed Income Statement

Six months to 30 November 2022

		Notes	Revenue	Capital	Total
			£'000	£'000	£'000
Losses on investments			-	(8,671)	(8,671)
Foreign exchange losses			-	(4)	(4)
Income		2	2,498	-	2,498
Investment management fee		3	(149)	(371)	(520)
Other expenses			(350)	-	(350)
Return on ordinary activities before   finance costs and tax			1,999	(9,046)	(7,047)
Finance costs			(43)	(65)	(108)
Return on ordinary activities before tax			1,956	(9,111)	(7,155)
Tax on ordinary activities			-	-	-
Return attributable to shareholders			1,956	(9,111)	(7,155)
Return per Income share (pence)		4	4.01p	(11.41p)	(7.40p)
Return per Growth share (pence)		4	-	(9.11p)	(9.11p)

 

The total column of this statement is the Profit and Loss Account of the Company. The supplementary revenue and capital columns are prepared under guidance published by The Association of Investment Companies.

 

All revenue and capital items in the Income Statement derive from continuing operations.

 

Return attributable to shareholders represents the profit/(loss) for the period and also total comprehensive income.

 

Unaudited Condensed Income Statement

Six months to 30 November 2021

 

	Notes	Revenue	Capital	Total
		£'000	£'000	£'000
Gains on investments		-	5,364	5,364
Foreign exchange losses		-	(2)	(2)
Income	2	2,178	-	2,178
Investment management and performance fees	3	(171)	(675)	(846)
Other expenses		(307)	-	(307)
Return on ordinary activities before   finance costs and tax		1,700	4,687	6,387
Finance costs		(28)	(42)	(70)
Return on ordinary activities before tax		1,672	4,645	6,317
Tax on ordinary activities		-	-	-
Return attributable to shareholders		1,672	4,645	6,317
Return per Income share (pence)	4	3.54p	(1.23p)	2.31p
Return per Growth share (pence)	4	-	13.75p	13.75p

 

The total column of this statement is the Profit and Loss Account of the Company. The supplementary revenue and capital columns are prepared under guidance published by The Association of Investment Companies.

 

All revenue and capital items in the Income Statement derive from continuing operations.

 

Return attributable to shareholders represents the profit/(loss) for the period and also total comprehensive income.

 

Condensed Income Statement (audited)

Year to 31 May 2022^₸

		Notes	Revenue	Capital	Total
			£'000	£'000	£'000
Losses on investments			-	(15,724)	(15,724)
Foreign exchange losses			-	(2)	(2)
Income		2	4,384	-	4,384
Investment management and performance fees		3	(322)	(818)	(1,140)
Other expenses			(723)	-	(723)
Return on ordinary activities before   finance costs and tax			3,339	(16,544)	(13,205)
Finance costs			(61)	(92)	(153)
Return on ordinary activities before tax			3,278	(16,636)	(13,358)
Tax on ordinary activities			(14)	-	(14)
Return attributable to shareholders			3,264	(16,636)	(13,372)
Return per Income share (pence)		4	6.85p	(8.95p)	(2.10p)
Return per Growth share (pence)		4	-	(32.28p)	(32.28p)

 

 

^₸These figures are audited

 

The total column of this statement is the Profit and Loss Account of the Company. The supplementary revenue and capital columns are prepared under guidance published by The Association of Investment Companies.

 

All revenue and capital items in the Income Statement derive from continuing activities.

 

Return attributable to shareholders represents the profit/(loss) for the year and also total comprehensive income.

 

Unaudited Condensed Balance Sheet

As at 30 November 2022

	Notes	Income Shares	Growth Shares	Total
		£'000	£'000	£'000
Fixed assets
Investments at fair value	6	65,331	83,953	149,284
Current assets
Debtors		232	121	353
Cash at bank and on deposit		2,445	7,334	9,779
		2,677	7,455	10,132
Creditors: Amounts falling due within one year	7	(2,234)	(459)	(2,693)
Net current assets		443	6,996	7,439
Creditors: Amounts falling due in more than one year	7	(5,000)	-	(5,000)
Net assets		60,774	90,949	151,723
Capital and reserves:
Called-up share capital	8	4,695	3,688	8,383
Share premium		930	428	1,358
Capital redemption reserve		257	365	622
2022 special reserve		29,588	29,581	59,169
2008 special reserve		19,422	16,290	35,712
Capital reserves		2,543	40,597	43,140
Revenue reserve		3,339	-	3,339
Equity shareholders' funds		60,774	90,949	151,723
Net asset value per share (pence)	9	122.52p	235.42p

 

 

Unaudited Condensed Balance Sheet

As at 30 November 2021

 

 

	Notes	Income Shares	Growth Shares	Total
		£'000	£'000	£'000
Fixed assets
Listed investments		72,215	105,604	177,819
Current assets
Debtors		380	63	443
Cash at bank and on deposit		2,053	5,847	7,900
		2,433	5,910	8,343
Creditors: Amounts falling due within one year	7	(7,230)	(996)	(8,226)
Net current (liabilities)/assets		(4,797)	4,914	117
Creditors: Amounts falling due in more than one year		-	-	-
Net assets		67,418	110,518	177,936
Capital and reserves:
Called-up share capital		4,540	3,622	8,162
Share premium		28,793	27,594	56,387
Capital redemption reserve		256	365	621
2008 special reserve		18,980	17,199	36,179
Capital reserves		11,794	61,738	73,532
Revenue reserve		3,055	-	3,055
Equity shareholders' funds		67,418	110,518	177,936
Net asset value per share (pence)	9	141.07p	289.81p

 

 

 

Condensed Balance Sheet (audited)

As at 31 May 2022^₸

 

	Notes	Income shares	Growth shares	Total
		£'000	£'000	£'000
Fixed assets
Listed investments		69,874	89,258	159,132
Current assets
Debtors		697	95	792
Cash at bank and on deposit		1,549	5,929	7,478
		2,246	6,024	8,270
Creditors
Amounts falling due within one year	7	(2,428)	(303)	(2,731)
Net current (liabilities)/assets		(182)	5,721	5,539
Creditors:
Amounts falling due in more than one year	7	(5,000)	-	(5,000)
Net assets		64,692	94,979	159,671
Capital and reserves
Called-up share capital		4,596	3,692	8,288
Share premium		-	-	-
Capital redemption reserve		257	365	622
2022 special reserve		29,588	29,581	59,169
2008 special reserve		18,980	17,199	36,179
Capital reserves		8,109	44,142	52,251
Revenue reserve		3,162	-	3,162
Equity shareholders' Funds		64,692	94,979	159,671
Net asset value per share (pence)	9	133.67p	244.41p

 

 

^₸These figures are audited

Unaudited Condensed Statement of Cash Flows

Six months to 30 November 2022

 

 

	Notes	Income shares	Growth shares	Total
		£'000	£'000	£'000
Net cash outflow from operations before dividends   and interest	10	(558)	(550)	(1,108)
Dividends received		1,758	753	2,511
Interest received		21	62	83
Interest paid		(100)	-	(100)
Net cash inflow from operating activities		1,121	265	1,386
Investing activities
Purchases of investments		(7,330)	(1,372)	(8,702)
Sales of investments		7,413	2,997	10,410
Cash flows from investing activities		83	1,625	1,708
Cash flows before financing activities		1,204	1,890	3,094
Financing activities
Equity dividends paid Proceeds from issuance of new shares	5	(1,779) 1,007	- 446	(1,779) 1,453
Shared purchased to be held in treasury		-	(467)	(467)
Share conversion		464	(464)	-
Cash flows from financing activities		(308)	(485)	(793)
Net movement in cash and cash equivalents		896	1,405	2,301
Cash and cash equivalents at the beginning of the period		1,549	5,929	7,478
Cash and cash equivalents at the end of the period		2,445	7,334	9,779
Represented by: Cash at bank and short-term deposits		2,445	7,334	9,779

Unaudited Condensed Statement of Cash Flows

Six months to 30 November 2021

 

 

 

	Notes	Income shares	Growth shares	Total
		£'000	£'000	£'000
Net cash outflow from operations before dividends   and interest	10	(841)	(921)	(1,762)
Dividends received		1,540	573	2,113
Interest received		-	-	-
Interest paid		(59)	-	(59)
Net cash inflow/(outflow) from operating activities		640	(348)	292
Investing activities
Purchases of investments		(1,620)	(2,120)	(3,740)
Sales of investments		1,506	3,478	4,984
Cash flows from investing activities		(114)	1,358	1,244
Cash flows before financing activities		526	1,010	1,536
Financing activities
Equity dividends paid Proceeds from issuance of new shares	5	(1,670) 1,196	- 1,029	(1,670) 2,225
Share conversion		(39)	39	-
Cash flows from financing activities		(513)	1,068	555
Net movement in cash and cash equivalents		13	2,078	2,091
Cash and cash equivalents at the beginning of the period		2,040	3,769	5,809
Cash and cash equivalents at the end of the period		2,053	5,847	7,900
Represented by: Cash at bank and short-term deposits		2,053	5,847	7,900

 

 

 

 

Condensed Statement of Cash Flows (audited)

Year to 31 May 2022

 

 

 

	Notes	Income shares	Growth shares	Total
		£'000	£'000	£'000
Net cash outflow from operations before dividends   and interest	10	(1,234)	(1,463)	(2,697)
Dividends received		3,126	1,174	4,300
Interest received		1	9	10
Interest paid		(181)	-	(181)
Net cash inflow/(outflow) from operating activities		1,712	(280)	1,432
Investing activities
Purchases of investments		(5,154)	(15,865)	(21,019)
Sales of investments		4,025	15,180	19,205
Cash flows from investing activities		(1,129)	(685)	(1,814)
Cash flows before financing activities		583	(965)	(382)
Financing activities
Equity dividends paid	5	(3,155)	-	(3,155)
Proceeds from issuance of new shares		2,120	3,086	5,206
Share conversion		(39)	39	-
Cash flows from financing activities		(1,074)	3,125	2,051
Net movement in cash and cash equivalents		(491)	2,160	1,669
Cash and cash equivalents at the beginning of the period		2,040	3,769	5,809
Cash and cash equivalents at the end of the period		1,549	5,929	7,478
Represented by: Cash at bank and short-term deposits		1,549	5,929	7,478

 

 

Unaudited Condensed Statement of Changes in Equity

Six months to 30 November 2022

 

Income shares	Share capital £000	Share premium £000	Capital redemption reserve £000	2022 special reserve £'000	2008 special reserve £000	Capital reserves £000	Revenue reserve £000	Total shareholders' funds £000
As at 31 May 2022	4,596	-	257	29,588	18,980	8,109	3,162	64,692
Increase in share capital in issue, net of issuance expenses	77	930	-	-	-	-	-	1,007
Share conversion	22	-	-		442	-	-	464
Transfer of net income from Growth to Income Portfolio	-	-	-	-	-	-	580	580
Transfer of capital from Income to Growth Portfolio	-	-	-	-	-	(580)	-	(580)
Dividends paid	-	-	-	-	-	-	(1,779)	(1,779)
Return attributable to shareholders	-	-	-	-	-	(4,986)	1,376	(3,610)
As at 30 November 2022	4,695	930	257	29,588	19,422	2,543	3,339	60,774
Growth shares
As at 31 May 2022	3,692	-	365	29,581	17,199	44,142	-	94,979
Increase in share capital in issue, net of issuance expenses	18	428	-	-	-	-	-	446
Shares purchased for treasury	-	-	-	-	(467)	-	-	(467)
Share conversion	(22)	-	-	-	(442)	-	-	(464)
Transfer of net income from Growth to Income Portfolio	-	-	-	-	-	-	(580)	(580)
Transfer of capital from Income to Growth Portfolio	-	-	-	-	-	580	-	580
Return attributable to shareholders	-	-	-	-	-	(4,125)	580	(3,545)
As at 30 November 2022	3,688	428	365	29,581	16,290	40,597	-	90,949
Total
As at 31 May 2022	8,288	-	622	59,169	36,179	52,251	3,162	159,671
Increase in share capital in issue, net of issuance expenses	95	1,358	-		-	-	-	1,453
Shares purchased for treasury	-	-			(467)	-	-	(467)
Share conversion	-	-	-		-	-	-	-
Dividends paid	-	-	-		-	-	(1,779)	(1,779)
Return attributable to shareholders	-	-	-		-	(9,111)	1,956	(7,155)
Total Company as at 30 November 2022	8,383	1,358	622	59,169	35,712	43,140	3,339	151,723

Unaudited Condensed Statement of Changes in Equity

Six months to 30 November 2021

 

 

Income shares	Share capital £000	Share premium £000	Capital redemption reserve £000	2008 special reserve £000	Capital reserves £000	Revenue reserve £000	Total shareholders' funds £000
As at 31 May 2021	4,459	27,608	256	19,017	12,373	3,053	66,766
Increase in share capital in issue, net of issuance expenses	83	1,185	-	-	-	-	1,268
Share conversion	(2)	-	-	(37)	-	-	(39)
Transfer of net income from Growth to Income Portfolio	-	-	-	-	-	327	327
Transfer of capital from Income to Growth Portfolio	-	-	-	-	(327)	-	(327)
Dividends paid	-	-	-	-	-	(1,670)	(1,670)
Return attributable to shareholders	-	-	-	-	(252)	1,345	1,093
As at 30 November 2021	4,540	28,793	256	18,980	11,794	3,055	67,418
Growth shares
As at 31 May 2021	3,586	26,599	365	17,162	56,514	-	104,226
Increase in share capital in issue, net of issuance expenses	34	995	-	-	-	-	1,029
Share conversion	2	-	-	37	-	-	39
Transfer of net income from Growth to Income Portfolio	-	-	-	-	-	(327)	(327)
Transfer of capital from Income to Growth Portfolio	-	-	-	-	327	-	327
Return attributable to shareholders	-	-	-	-	4,897	327	5,224
As at 30 November 2021	3,622	27,594	365	17,199	61,738	-	110,518
Total
As at 31 May 2021	8,045	54,207	621	36,179	68,887	3,053	170,992
Increase in share capital in issue, net of issuance expenses	117	2,180	-	-	-	-	2,297
Share conversion	-	-	-	-	-	-	-
Dividends paid	-	-	-	-	-	(1,670)	(1,670)
Return attributable to shareholders	-	-	-	-	4,645	1,672	6,317
Total Company as at 30 November 2021	8,162	56,387	621	36,179	73,532	3,055	177,936

 

 

 

Condensed Statement of Changes in Equity (audited)

Year to 31 May 2022^₸

 

Income Shares	Share capital £000	Share premium £000	Capital redemption reserve £000	2022 special reserve £000	2008 special reserve £000	Capital reserves £000	Revenue reserve £000	Total shareholders' funds £000
As at 31 May 2021	4,459	27,608	256	-	19,017	12,373	3,053	66,766
Increase in share capital in issue, net of share issuance expenses	140	1,980	-	-	-	-	-	2,120
Share conversion	(2)	-	-	-	(37)	-	-	(39)
Cancellation of Deferred shares	(1)	-	1	-	-	-	-	-
Transfer of net income from Growth to Income Portfolio	-	-	-	-	-	-	644	644
Transfer of capital from Income to Growth Portfolio	-	-	-	-	-	(644)	-	(644)
Share premium cancellation	-	(29,588)	-	29,588	-	-	-	-
Dividends paid	-	-	-	-	-	-	(3,155)	(3,155)
Return attributable to shareholders	-	-	-	-	-	(3,620)	2,620	(1,000)
As at 31 May 2022	4,596	-	257	29,588	18,980	8,109	3,162	64,692
Growth Shares
As at 31 May 2021	3,586	26,599	365	-	17,162	56,514	-	104,226
Increase in share capital in issue, net of share issuance expenses	104	2,982	-	-	-	-	-	3,086
Share conversion	2	-	-	-	37	-	-	39
Cancellation of Deferred shares	-	-	-	-	-	-	-	-
Transfer of net income from Growth to Income Portfolio	-	-	-	-	-	-	(644)	(644)
Transfer of capital from Income to Growth Portfolio	-	-	-	-	-	644	-	644
Share premium cancellation	-	(29,581)	-	29,581	-	-	-	-
Return attributable to shareholders	-	-	-	-	-	(13,016)	644	(12,372)
As at 31 May 2022	3,692	-	365	29,581	17,199	44,142	-	94,979
Total
As at 31 May 2021	8,045	54,207	621	-	36,179	68,887	3,053	170,992
Increase in share capital in issue, net of share issuance expenses	244	4,962	-	-	-	-	-	5,206
Share conversion	-	-	-	-	-	-	-	-
Cancellation of Deferred shares	(1)	-	1	-	-	-	-	-
Share premium cancellation	-	(59,169)	-	59,169	-	-	-	-
Dividends paid	-	-	-	-		-	(3,155)	(3,155)
Return attributable to shareholders	-	-	-	-		(16,636)	3,264	(13,372)
Total Company as at 31 May 2022	8,288	-	622	59,169	36,179	52,251	3,162	159,671

 

^₸ These figures are audited

Notes

 

1.  Accounting policies

These condensed financial statements, which are unaudited, have been prepared on a going concern basis in accordance with the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority, FRS 102, FRS 104 Interim Financial Reporting and the Statement of Recommended Practice ("SORP") "Financial Statements of Investment Trust Companies and Venture Capital Trusts" issued by The Association of Investment Companies ("AIC").

 

The accounting policies applied for the condensed financial statements are set out in the Company's Annual Report for the year ended 31 May 2022.

 

2.  Income

	Six months to 30 November 2022	Six months to 30 November 2021	Year to 31 May 2022
	£'000	£'000	£'000
UK dividends	1,855	1,738	3,050
Overseas dividends	560	440	1,324
Deposit income	83	-	10
Total income	2,498	2,178	4,384

 

3.  Investment management and performance fees

   

 

	Six months to 30 November 2022	Six months to 30 November 2021	Year to 31 May 2022
	£'000	£'000	£'000
Investment management fee	520	609	1,140
Performance fee	-	237	-
	520	846	1,140

 

                                                              

The terms of the Investment Management Agreement with Columbia Threadneedle Investment Business Limited (the "Manager") are summarised in the Company's Annual Report to 31 May 2022 and there has been no change to the terms of the base investment management fee as set out. In addition, if certain conditions were met, a performance fee was payable annually. Since the publication of the Annual Report to 31 May 2022, the cessation of the performance fee was agreed, effective 29 September 2022. While an accrual for a performance fee was held at 30 November 2021, due to performance this was subsequently reversed. The last performance fee generated and ultimately payable to the Manager was with respect to the year to 31 May 2021.

 

4.  Return per share

 

The return per share for the six months to 30 November 2022 is as follows:

 

	Income shares			Growth shares
	Revenue	Capital	Total	Revenue	Capital	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Return attributable to portfolios	1,376	(4,986)	(3,610)	580	(4,125)	(3,545)
Transfer of net income from Growth to Income   Portfolio	580	-	580	(580)	-	(580)
Transfer of capital from Income to Growth Portfolio	-	(580)	(580)	-	580	580
Return attributable to shareholders	1,956	(5,566)	(3,610)	-	(3,545)	(3,545)
Return per share	4.01p	(11.41p)	(7.40p)	-	(9.11p)	(9.11p)
Weighted average number of shares in issue during the period	48,798,222			38,917,489

 

 

The return per share for the comparative six months to 30 November 2021 is as follows:

 

 

	Income shares			Growth shares
	Revenue	Capital	Total	Revenue	Capital	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Return attributable to portfolios	1,345	(252)	1,093	327	4,897	5,224
Transfer of net income from Growth to Income Portfolio	327	-	327	(327)	-	(327)
Transfer of capital from Income to Growth Portfolio	-	(327)	(327)	-	327	327
Return attributable to shareholders	1,672	(579)	1,093	-	5,224	5,224
Return per share	3.54p	(1.23p)	2.31p	-	13.75p	13.75p
Weighted average number of shares in issue during the period	47,256,712			37,999,706

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The return per share for the comparative year to 31 May 2022 is as follows:

 

	Income shares			Growth shares
	Revenue	Capital	Total	Revenue	Capital	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Return attributable to portfolios	2,620	(3,620)	(1,000)	644	(13,016)	(12,372)
Transfer of net income from Growth to Income  Portfolio	644	-	644	(644)	-	(644)
Transfer of capital from Income to Growth Portfolio	-	(644)	(644)	-	644	644
Return attributable to shareholders	3,264	(4,264)	(1,000)	-	(12,372)	(12,372)
Return per share	6.85p	(8.95p)	(2.10p)	-	(32.28p)	(32.28p)
Weighted average number of shares in issue during the period	47,655,020			38,325,735

 

 

5.    Dividends

	Payment	Six months to 30 November 2022	Six months to 30 November 2021	Year to 31 May 2022
Dividends on Income shares	Date	£'000	£'000	£'000
Amounts recognised as distributions during the period:
In respect of the previous financial year:
- fourth interim of 2.0p (prior period: 2.0p) per Income share	8-Jul-2022	968	939	939
In respect of the period under review:
- first interim of 1.67p (prior period: 1.55) per Income share	7-Oct-2022	811	731	731
- second interim (prior period: 1.55p per share)	-	-	-	741
- third interim (prior period: 1.55p per share)	-	-	-	744
		1,779	1,670	3,155

 

       A second interim dividend in respect of the year to 31 May 2023 of 1.67p per Income share was paid on 6 January 2023 to shareholders on the register on 16 December 2022. This amount has not been accrued in the results for the six months to 30 November 2022.

 

       For the financial year to 31 May 2022 interim dividends totalled 6.65p per Income share.

 

       The Growth shares do not carry an entitlement to receive dividends.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6.   Investments

 

	Income shares Level 1* £'000	Growth shares Level 1* £'000	Total £'000
Cost at 31 May 2022 Gains at 31 May 2022	54,354 15,520	60,017 29,241	114,371 44,761
Valuation at 31 May 2022 Movement in the period: Purchases at cost Sales proceeds Gains/(losses) on investments sold in the period Losses on investments held at period end	69,874   7,326 (7,086) 44 (4,827)	89,258   1,580 (2,997) (585) (3,303)	159,132   8,906 (10,083) (541) (8,130)
Valuation of investments held at 30 November 2022	65,331	83,953	149,284

 

 

Cost at 30 November 2022 Gains at 30 November 2022	54,638 10,693	58,015 25,938	112,653 36,631
Valuation at 30 November 2022	65,331	83,953	149,284

 

* Fair value hierarchy

 

Total gains/(losses) on investments	Income shares £'000	Growth shares £'000	Total £'000
Gains/(losses) on investments sold in the period Losses on investments held at period end	44 (4,827)	(585) (3,303)	(541) (8,130)
Total losses on investments	(4,783)	(3,888)	(8,671)

 

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 hierachy:

 

·    Level 1 - quoted prices (unadjusted) in active markets for identical assets;

·  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; and

·    Level 3 - investments whose value is not based on observable market data.

 

There were no investments held which were valued in accordance with Levels 2 or 3.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7.   Creditors

Amounts falling due within one year

30 November 2022	Income shares £'000	Growth shares £'000	Total £'000
Revolving credit facility	2,000	-	2,000
Management fee accrued	107	147	254
Secretarial fee accrued	11	17	28
Amount due to brokers	50	208	258
Other accruals	66	87	153
	2,234	459	2,693

Amounts falling due in more than one year

30 November 2022	Income shares £'000	Growth shares £'000	Total £'000
£5m fixed rate term loan maturing 10 February 2025	5,000	-	5,000

 

Amounts falling due within one year

30 November 2021	Income shares £'000	Growth shares £'000	Total £'000
£5m fixed rate term loan maturing 10 February 2022	5,000	-	5,000
Revolving credit facility	2,000	-	2,000
Management fee accrued	124	182	306
Performance fee provision	42	195	237
Secretarial fee accrued	10	16	26
Amount due to brokers	-	528	528
Other accruals	54	75	129
	7,230	996	8,226

 

Amounts falling due within one year

31 May 2022	Income shares £'000	Growth shares £'000	Total £'000
Revolving credit facility	2,000	-	2,000
Management fee accrued	114	155	269
Secretarial fee accrued	10	16	26
Amount due to brokers	197	-	197
Other accruals	107	132	239
	2,428	303	2,731

Amounts falling due in more than one year

31 May 2022	Income shares £'000	Growth shares £'000	Total £'000
£5m fixed rate term loan maturing 10 February 2025	5,000	-	5,000

 

 

At 30 November 2022 the Company has a £5 million unsecured fixed rate term loan and a £5 million unsecured revolving credit facility ("RCF") with The Royal Bank of Scotland International Limited. These facilities were put in place effective 10 February 2022, when the previous facilities matured and are available until 10 February 2025. The interest rate on the term loan is fixed at 2.78% per annum, (30 November 2021: 2.03%; 31 May 2022: 2.78%) and the interest rate on the amounts drawn down under the RCF are variable, and a non-utilisation fee is payable on undrawn amounts.

 

During the six months to 30 November 2022 there were no changes in the amount borrowed and

therefore no change in liabilities arising from financing activities.

 

8.   Share capital

 

	Listed		Held in treasury		In issue
	Number	£'000	Number	£'000	Number	£'000
Income shares
Balance at 1 June 2022^	48,397,165	4,596	-	-	48,397,165	4,596
Issued	815,000	77	-	-	815,000	77
Share conversion:
-  Income to Growth	(131,631)	(12)	-	-	(131,631)	(12)
-  Growth to Income	524,969	34	-	-	524,969	34
-  Change in nominal value^	-	(1,503)	-	-	-	(1,503)
Balance at 30 November 2022^	49,605,503	3,192	-	-	49,605,503	3,192

 

	Deferred shares - Income
	Number	£'000
Deferred shares - Income
Balance at 1 June 2022	-	-
Issue of 49,080,534 shares*	49,080,534	1,503
Balance at 30 November 2022	49,080,534	1,503
Total called-up share capital		4,695

 

^ As part of the conversion process which was carried out during the period in accordance with the Company's Articles, the nominal value of each Income share changed from £0.094976101 to £0.064343979 per Income share.

* The nominal value of a Deferred share is £0.030632122 per share.

 

During the period, the Company issued 815,000 Income shares (30 November 2021: 875,000; 31 May 2022: 1,480,000) from the block listing facilities receiving net proceeds of £1,007,000 (30 November 2021: £1,268,000; 31 May 2022: £2,120,000).

During the period, valid conversion notices were received to convert 131,631 Income shares (which represented a value of £155,000). These were converted into 67,665 Growth shares in accordance with the Company's Articles and by reference to the ratio of the relative underlying net asset values of the Growth shares and Income shares on the conversion date.

The Company's Articles allow for Deferred shares to be allotted as part of the share conversion to ensure that the conversion does not result in a reduction of the aggregate par value of the Company's issued share capital. The Deferred shares issued as part of the share conversion in the current period are set out above. The Deferred shares will be repurchased by the Company from time to time as last authorised by shareholders at the September 2022 AGM.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	Listed		Held in treasury		In issue
	Number	£'000	Number	£'000	Number	£'000
Growth shares
Balance at 1 June 2022^	38,860,148	3,692	-	-	38,860,148	3,692
Issued	190,000	18	-	-	190,000	18
Purchased for treasury	-	-	(215,000)	(20)	(215,000)	(20)
Share conversion:
-  Growth to Income	(269,864)	(26)	-	-	(269,864)	(26)
-  Income to Growth	67,665	4	-	-	67,665	4
-  Change in nominal value^	-	(1,188)	-	6	-	(1,182)
Balance at 30 November 2022^	38,847,949	2,500	(215,000)	(14)	38,632,949	2,486

 

	Deferred shares -
		Growth
	Number	£'000
Deferred shares - Growth
Balance at 1 June 2022	-	-
Issue of 38,870,284 shares*	38,780,284	1,188
Balance at 30 November 2022	38,780,284	1,188
Total called-up share capital		3,688

 

^As part of the conversion process which was carried out during the period in accordance with the     Company's Articles, the nominal value of each Growth share changed from £0.094976101 to £0.064343979 per Growth share.

* The nominal value of a Deferred share is £0.030632122 per share.

 

During the period, the Company issued 190,000 Growth shares (30 November 2021: 360,000; 31 May 2022: 1,085,000) from the block listing facilities receiving net proceeds of £446,000 (30 November 2021: £1,029,000; 31 May 2022: £3,086,000). During the period the Company bought back 215,000 (30 November 2021: nil; 31 May 2022: nil) Growth shares at a cost of £467,000 to be held in treasury.

During the period, valid conversions were received to convert 269,864 Growth shares (which represented a value of £619,000). These were converted into 524,969 Income shares in accordance with the Company's Articles and by reference to the ratio of the relative underlying net asset values of the Growth shares and Income shares on the conversion date.

The Company's Articles allow for Deferred shares to be allotted as part of the share conversion to ensure that the conversion does not result in a reduction of the aggregate par value of the Company's issued share capital. The Deferred shares issued as part of the share conversion in the current period are set out above. The Deferred shares will be repurchased by the Company from time to time as last authorised by shareholders at the September 2022 AGM.

 

9.     Net asset value per share

	30 November 2022	30 November 2021	31 May 2022
Income shares
Net asset value per share - pence	122.52p	141.07p	133.67p
Net assets attributable at end of   period - £'000	60,774	67,418	64,692
Shares in issue at end of period - number	49,605,503	47,792,165	48,397,165
Growth shares
Net asset value per share - pence	235.42p	289.81p	244.41p
Net assets attributable at end of   period - £'000	90,949	110,518	94,979
Shares in issue at end of period - number	38,632,949	38,135,148	38,860,148

 

 

 

 

10.   Reconciliation of return on ordinary activities before tax to net cash outflows from operations

Six months to 30 November 2022	Income shares £'000		Growth shares £'000	Total £'000
Return on ordinary activities before tax Adjust for returns from non-operating activities:		(3,610)	(3,545)	(7,155)
Losses on investments		4,783	3,888	8,671
Exchange losses		4	-	4
Return from operating activities		1,177	343	1,520
Decrease in prepayments		2	8	10
Decrease in creditors		(194)	(52)	(246)
Withholding tax suffered		(2)	-	(2)
Dividend income		(1,628)	(787)	(2,415)
Interest income		(21)	(62)	(83)
Interest expense		108	-	108
Net cash outflow from operations before dividends and interest		(558)	(550)	(1,108)

 

 

Six months to 30 November 2021	Income shares £'000		Growth shares £'000	Total £'000
Return on ordinary activities before tax Adjust for returns from non-operating activities:		1,093	5,224	6,317
Losses/(gains) on investments		18	(5,382)	(5,364)
Exchange losses		2	-	2
Return from operating activities		1,113	(158)	955
Decrease in prepayments		2	8	10
Decrease in creditors		(437)	(181)	(618)
Withholding tax suffered		(1)	-	(1)
Dividend income		(1,588)	(590)	(2,178)
Interest expense		70	-	70
Net cash outflow from operations before dividends and interest		(841)	(921)	(1,762)

 

Year to 31 May 2022		Income shares £'000	Growth shares £'000	Total £'000
Return on ordinary activities before tax Adjust for returns from non-operating activities:	(986)		(12,372)	(13,358)
Losses on investments	3,245		12,479	15,724
Exchange losses	2		-	2
Return from operating activities	2,261		107	2,368
Increase in prepayments	-		(15)	(15)
Decrease in creditors	(436)		(346)	(782)
Withholding tax suffered	(34)		-	(34)
Dividend income	(3,176)		(1,200)	(4,376)
Interest income	(1)		(9)	(10)
Interest expense	152		-	152
Net cash outflow from operations before dividends and interest	(1,234)		(1,463)	(2,697)

 

 

 

 

11.  Earnings

       Earnings for the six months to 30 November 2022 should not be taken as a guide to the results for the full year to 31 May 2023.

 

12.   Tax

       The effective revenue tax rate for the period to 30 November 2022 is nil% (30 November 2021: nil%; 31 May 2022: 0.4%). This is lower than the rate of corporation tax for small companies due to the level of non-taxable dividend income.

 

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 value of these investments exceeds the Company's liabilities by a significant margin.

The Company retains title to all assets held by its Custodian and has an agreement relating to its borrowing facilities with which it has complied. Cash is only held with banks approved and regularly reviewed by the Manager.

 

The Company does not have a fixed life. However, the Company's Articles of Association require the Board to next put a resolution to shareholders at the 2023 Annual General Meeting (and five yearly thereafter) to continue the Company. The continuation vote will be proposed as an ordinary resolution. The first such resolution was put to shareholders and passed at the Annual General Meeting held on 19 September 2018.

 

The Directors believe, having assessed the principal risks and other matters, including the impact of increased market volatility and the present uncertainties in economic recovery and geopolitical unrest and 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 financial statements.  In addition, the Directors have a reasonable expectation that shareholders will support the resolution, that the Company continues in existence, at the 2023 Annual General Meeting. Accordingly, the financial statements have been drawn up on the basis that the Company is a going concern.

 

14.   Related party transactions

       The Directors of the Company are considered a related party.  There have been no transactions with related parties during the first six months of the current financial year that have materially affected the financial position or performance of the Company during the period and there have been no changes in the related party transactions described in the last Annual Report that could do so.

 

15.   Results

       KPMG LLP, the Company's auditor until 26 January 2023, has not audited or reviewed the Interim Report to 30 November 2022 pursuant to the Auditing Practices Board guidance on 'Review of Interim Financial Information'. These are not full statutory financial statements in terms of Section 434 of the Companies Act 2006 and are unaudited. Statutory financial statements for the year ended 31 May 2022, 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 2022 are an extract from those financial statements. No full statutory financial statements in respect of any period after 31 May 2022 have been reported on by the Company's auditor or delivered to the Registrar of Companies.

 

       The Interim Report to 30 November 2022 is available on the website maintained on behalf of the Company at ctglobalmanagedportfolio.co.uk

 

 

 

 

 

 

 

 

Statement of Principal Risks and Uncertainties

 

Most of the Company's principal risks and uncertainties 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 Uncertainties and Viability Statement" within the Strategic Report in the Company's Annual Report for the year ended 31 May 2022.

 

The principal risks identified in the Annual Report were:

 

·      Market Risk. The Company's assets consist mainly of listed closed-end investment companies and its principal financial risks are therefore market-related and include market risk (comprising currency risk, interest rate risk and other price risk), liquidity risk and credit risk

·      Investment Risk

·      Custody Risk

·      Operational Risk

 

These include risks in relation to failures at service providers or loss or sabotage of data through

cyber attacks or business continuity failure.

 

The Board continues to review the key risk summary for the Company which identifies the risks that the Company is exposed to, the controls in place and the actions being taken to mitigate them. The Board has also considered the emerging risks from the uncertainties in economic recovery from the COVID-19 pandemic, geopolitical unrest, climate change and rising inflation. In addition the operational resilience of the Manager and the Company's other third party service providers has been considered. The merger and integration of the Manager's business and systems with Columbia Threadneedle Investments also continues to be monitored closely.

 

The Board considers that the Company's principal risks and uncertainties have not changed materially since 8 August 2022, the date of the Company's Annual Report, and are not expected to change materially for the remainder of the Company's financial year. The Board has also considered these principal risks in relation to going concern, as set out in note 13.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 has 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 and the Statement of Principal Risks and Uncertainties (together constituting the Interim Management Report) include a fair review of the information required by the Disclosure Guidance and Transparency Rule ("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;

 

·    the Statement of Principal Risks and Uncertainties is a fair review of the principal risks and uncertainties for the remainder of the financial year; and

 

·   the Interim Report includes 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

 

David Warnock

Director

26 January 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alternative Performance Measures ("APMs")

The Company uses the following APMs:

Discount/premium - the share price of an investment company is derived from buyers and sellers trading their shares on the stock market. This price is not identical to the net asset value ("NAV") per share of the underlying assets less liabilities of the Company. If the share price is lower than the NAV per share, the shares are trading at a discount. This usually indicates that there are more sellers of shares than buyers. Shares trading at a price above NAV per share are deemed to be at a premium usually indicating there are more buyers of shares than sellers.

 

		30 November 2022		31 May 2022
		Income shares	Growth shares	Income shares	Growth shares
Net asset value per share	(a)	122.52p	235.42p	133.67p	244.41p
Share price	(b)	123.00p	232.00p	131.00p	244.00p
+ Premium/ - discount (c=(b-a)/(a))	(c)	+0.4%	-1.5%	-2.0%	-0.2%

 

Total return - the return to shareholders calculated on a per share basis taking into account both any dividends paid in the period to the increase or decrease in the share price or NAV in the period. The dividends are assumed to have been re-invested in the form of shares or net assets, respectively, on the date on which the shares were quoted ex-dividend.

The effect of reinvesting these dividends on the respective ex-dividend dates and the share price total returns and NAV total returns are shown below.

 

	Six months to		Year to
	30 November 2022		31 May 2022
Total return - NAV	Income shares	Growth shares	Income shares	Growth shares
NAV per share at start of financial period/year	133.67p	244.41p	142.22p	276.01p
NAV per share at end of financial period/year	122.52p	235.42p	133.67p	244.41p
Change in the period/year	-8.3%	-3.7%	-6.0%	-11.4%
Impact of dividend reinvestment (1)	2.9%	n/a	4.5%	n/a
NAV total return for the period/year	-5.4%	-3.7%	-1.5%	-11.4%

 

 ⁽¹⁾ During the six months to 30 November 2022 dividends totalling 3.67p went ex-dividend with respect to the Income shares. During the year to 31 May 2022 the equivalent figure was 6.65p.

 

 

	Six months to 30 November 2022		Year to 31 May 2022
Total return - Share price	Income shares	Growth shares	Income shares	Growth shares
Share price per share at start of financial period/year	131.0p	244.0p	143.5p	277.0p
Share price per share at end of financial period/year	123.0p	232.0p	131.0p	244.0p
Change in the period/year	-6.1%	-4.9%	-8.7%	-11.9%
Impact of dividend reinvestment (1)	2.8%	n/a	4.3%	n/a
Share price total return for the period/year	-3.3%	-4.9%	-4.4%	-11.9%

 

⁽¹⁾ During the six months to 30 November 2022 dividends totalling 3.67p went ex-dividend with respect to the Income shares.  During the year to 31 May 2022 the equivalent figure was 6.65p.

 

 

 

 

 

 

 

 

Yield - the total annual dividend expressed as a percentage of the period-end share price.

 

		30 November 2022	31 May 2022
Annual dividend	(a)	6.68p(1)	6.65p
Income share price	(b)	123.0p	131.0p
Yield (c=a/b)	(c)	5.4%	5.1%

 

⁽¹⁾  Based on dividends at the expected minimum annual rate of 6.68 pence per Income share for the

    financial year to 31 May 2023.

 

Net gearing/net cash - this is calculated by expressing the Company's borrowings less cash and cash equivalents as a percentage of shareholders' funds. If the amount calculated is positive this is described as net gearing. If the amount calculated is negative, this is described as net cash.

 

	30 November 2022		31 May 2022
	Income shares	Growth shares	Income shares	Growth shares
	£'000	£'000	£'000	£'000
Borrowings	7,000	-	7,000	-
Cash	(2,445)	(7,334)	(1,549)	(5,929)
	4,555	(7,334)	5,451	(5,929)
Shareholders' funds	60,774	90,949	64,692	94,979
Net gearing/ -net cash	7.5%	-8.1%	8.4%	-6.2%

 

 

Compound annual growth rate - converts the total return over a period of more than one year to a constant annual rate of return applied to the compounded value at the start of each year.

 

30 November 2022
		Income shares	Growth shares
Indexed NAV total return at 30 November 2012		100.0	100.0
Indexed NAV total return at 30 November 2022		192.4	223.9
Period (years)		10.0	10.0
Compound annual growth rate		6.8%	8.4%

 

 

 

 

For further information, please contact:

 

Peter Hewitt, Columbia Threadneedle Investment Business Limited                      0131 718 1244

Ian Ridge, Columbia Threadneedle Investment Business Limited                          0131 573 8316