TO:	RNS
FROM:	CT Global Managed Portfolio Trust PLC
DATE:	29 January 2024
LEI:	213800ZA6TW45NM9YY31

 

Unaudited Half-Year Results

The Board of CT Global Managed Portfolio Trust PLC announces the unaudited half-year results of the Company for the six month period to 30 November 2023.

 

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

 

·      Dividend yield⁽¹⁾ of 6.5% at 30 November 2023, compared to the yield on the FTSE All-Share Index of 4.0%. Dividends are paid quarterly.

·      Net asset value total return⁽¹⁾ per Income share of -2.9% for the six months, underperforming the total return of the FTSE All-Share Index of +1.6% by -4.5% points.

 

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

 

·      Net asset value total return⁽¹⁾ per Growth share of -0.5% for the six months, underperforming the total return of the FTSE All-Share Index of +1.6% by -2.1% points.

·      The net asset value per Growth share has increased by +133.6% since launch on 16 April 2008, the equivalent of +5.6% compound⁽¹⁾ per year. This has outperformed the total return of the FTSE All-Share Index of +131.7%, the equivalent of +5.5% 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 -2.9% for the Income shares and -0.5% for the Growth shares as compared to the total return for the FTSE All-Share Index of +1.6%

•        NAV total return compound annual growth rate since launch of +5.7% for the Income shares and +5.6% for the Growth shares as compared with +5.5% from the FTSE All-Share Index

•     Income share dividend yield of 6.5% at 30 November 2023

 

Investment Performance

 

For the six months to 30 November 2023, the NAV total return was -2.9% for the Income shares and -0.5% for the Growth shares. The total return for the benchmark index for both share classes, the FTSE All-Share Index, was +1.6%.

 

Until the final month of the period under review, the investment environment continued to be very adverse for investment companies. High inflation and rising interest rates were a considerable headwind, particularly for the wider alternatives sector. Investment companies in the renewables, core infrastructure, property, specialist property, credit and royalty income sub-sectors are sensitive to interest rates, gilt yields and discount rates for valuing their underlying assets. This led to declines in reported asset values and, in the main, the share prices of these investment companies moved to wider discounts. This affected mainly the Income Portfolio where a number of investment companies in these sub-sectors have been held for their attractive dividends and diversity of income so that not all the portfolio's revenue is reliant on equity funds. Another headwind was leadership within equity markets where in the case of the UK the share prices of larger companies continued to outperform smaller ones. The FTSE 100 rose by 2.1% whilst the FTSE 250, which measures the performance of medium sized companies, fell by 0.8%. Over the long run, medium and smaller sized companies tend to outperform but at times of uncertainty or when there is fear of recession the largest companies are viewed as safer. Active fund managers tend to underperform in these circumstances, and this led to many investment companies lagging their respective benchmarks.  This trend was evident across most equity markets, e.g. US, Europe and the UK. Finally, the average sector discount continued to widen and reached 19% at the end of October. Apart from a very short period at the start of the COVID-19 lockdown, this represented its widest level this century. This affected the vast majority of trusts but once again the alternatives were impacted the most.

 

As mentioned above, the Income Portfolio was particularly affected by the adverse environment for investment companies in the alternatives sub-sector and this was a key factor in the portfolio lagging the benchmark. The best performers included CC Japan Income & Growth Trust which had a 9% rise in its share price. Although the Tokyo market performed well, much of the rise was diluted for UK investors due to a weakening of the yen relative to sterling; however, the value orientated style of the manager helped the trust to outperform. Private equity trust NB Private Equity Partners has been a long-term outperformer for the Income Portfolio, and this continued with a 10% rise in its share price. Another consistent outperformer has been JPMorgan Global Growth & Income which continued to do well with a 8% rise in its share price. The main detractors were Digital 9 Infrastructure with a 48% fall in the share price. This was a disappointment as the trust has some valuable assets, but too much debt led to a removal of the dividend and was behind the share price decline. Another high profile detractor was Hipgnosis Songs Fund whose share price fell by 16%, at least in part due to it also removing its dividend, though in addition there have been governance, accounting and debt level concerns too. Impact Healthcare REIT, a specialist healthcare property REIT, experienced a 16% fall in its share price. This was a case of higher interest rates being reflected in a modest decline in the net asset value which caused the shares to move to a wider discount. Encouragingly the dividend was raised by 3.5%. 

 

The Growth Portfolio did better but still slightly underperformed the benchmark index. As the Growth Portfolio is focused on capital growth it does not need to own higher yielding investment companies in the alternatives sub-sector. One of the leading contributors was Aurora Investment Trust with a 14% gain in its share price. This is a high conviction UK equity trust with a short list of stocks and was helped by a strong performance from its largest holding, Frasers Group. JPMorgan American Investment Trust has been a consistent performer over the long term for the Growth Portfolio and once again the trust delivered with a 12% rise in its share price. Another notable gain of 10% in the share price was achieved by Allianz Technology Trust. The trust has large holdings in some of the well- known technology companies in the US which did well and also a major position in Nvidia which dominates the market in semiconductor chips needed for artificial intelligence applications. Detractors included Syncona which invests mainly in unlisted biotechnology companies. As a sector, biotech has been out of favour as valuations of companies were adversely affected by rising interest rates. Syncona's share price discount widened to 35% over the period. BH Macro, which was one of the best performers in the 2022 calendar year, experienced a 14% fall in its share price as the net asset value moved sideways and the shares moved from a premium to a 10% discount.

 

(All share prices are total return).

 

Revenue and Dividends

 

The Company's net revenue return for the six months was £2.12 million which is equivalent to 4.19p per Income share (compared to 4.01p per Income share for the corresponding period in 2022). Income shareholders are entitled to all the dividends paid by the Company. The second half of the financial year will see the impact of the removal of dividends by Digital 9 Infrastructure and Hipgnosis Songs Fund referred to above. However, these will not impact the Board's dividend intentions for the financial year as the Company enjoys significant distributable reserves that can be used to overcome any temporary or extraordinary revenue shortfalls.

 

As I referenced in the 31 May 2023 Annual Report and Financial Statements, in the absence of unforeseen circumstances, it was (and it remains) the Board's intention to pay four quarterly interim dividends, each of at least 1.80p per Income share so that the aggregate dividends for the financial year to 31 May 2024 will be at least 7.20p per Income share (2023: 7.20p per Income share).

 

To date, a first and second interim dividend in respect of the year to 31 May 2024 have been announced and paid, each at a rate of 1.80p per Income share (1.67p per Income share in the corresponding periods in the year to 31 May 2023).

 

The minimum intended total dividend for the financial year of 7.20p per Income share represents a yield on the Income share price at 30 November 2023 of 6.5% which was materially higher than the yield of 4.0% on the FTSE All-Share Index at the same date.

 

Borrowing

 

At 30 November 2023 the Income Portfolio had total borrowings of £7 million (11.1% 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 Price Premium and Discount to NAV

 

In normal circumstances the Board aims to maintain the discount to NAV at which the Company's shares trade at not more than 5%. During the six months to 30 November 2023 the Income shares traded at an average premium to NAV of 0.1% and the Growth shares traded at an average discount of 2.0%. At 30 November 2023, the Income shares stood at a premium to NAV of 1.3% and the Growth shares at a discount to NAV of 1.7%.

 

The Company is active in issuing shares to meet demand and equally in buying back when this is appropriate. During the six months to 30 November 2023, 800,000 new Income shares were issued from the Company's block listing facilities at an average premium to NAV of 1.6%. 1,130,000 Growth shares were also bought back to be held in treasury at an average discount to NAV of 3.3%.

 

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 2 November 2023 the conversion proceeded for those shareholders who had elected to do so. The net result of those conversions was an increase of 42,748 Income shares and a decrease of 20,341 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 2024. Details will be provided when the Company's Annual Report and Financial Statements is published in the summer.

 

Cost Disclosure Reform

 

Shareholders will be aware of the costs which are presented in the Company's Key Information Documents ('KIDs') for each of its share classes. However, the regime and related requirements which introduced this in 2018 has been a cause for concern in the sector for some time. The current requirements are very strict and prescriptive. Counter to what the regulations sought to achieve, the Board believes they do not support informed consumer decisions, can lead to the disclosure of costs which may be misleading or misunderstood and make comparisons against other investment products difficult with the potential for distorting investment decisions.

 

In addition to disclosing the ongoing operating costs of the Company, it is also a requirement to include the costs incurred by the underlying investments held in the Income and Growth Portfolios. At present, in the Company's Annual Report and Financial Statements, we provide a breakdown of these costs and those presented on the Company's KIDs, in an effort to assist shareholders' understanding of them. These are not additional costs to your Company and is effectively double counting, as these costs will already have been accounted for in the performance of the investments in the portfolios, through their share prices and net asset values. In addition, any performance-related fees in these holdings are also included. For these to be triggered, it would mean outperformance had been achieved, which should be welcomed, and would also already be reflected in the valuations. 

 

The Board is very supportive of the lobbying by the Association of Investment Companies on this matter and recently the UK government and the FCA have begun to take action on this and related issues. While a permanent solution may be some way off, we are hopeful that progress will now be made to ensure investment companies are presented clearly and fairly when compared to other investment products.

 

Outlook

 

The key themes for both portfolios are: investment companies focused on UK equities with a bias to medium and smaller companies which offer interesting growth prospects at very attractive valuations; investment companies with secular growth characteristics typically with holdings in the technology and healthcare sectors; and private equity trusts which have strong underlying growth characteristics though are at very wide discounts.

 

At the outset I mentioned that the environment for investment companies was quite adverse until the last month of the period under review. In November, there was a change which is positive for equity markets and investment companies in particular. Inflation data in key economies appears at last to be trending meaningfully lower, which if sustained could pave the way for interest rates to be cut sooner than had been anticipated. Lower inflation and lower interest rates is a more favourable environment for equity markets and investment companies. Discounts are beginning to narrow; however, at around 15%, the average sector discount is still at a historically wide level.

 

 

David Warnock

Chairman

26 January 2024

 

Unaudited Condensed Income Statement

Six months to 30 November 2023

		Notes	Revenue	Capital	Total
			£'000	£'000	£'000
Losses on investments			-	(3,880)	(3,880)
Foreign exchange gains			-	1	1
Income		2	2,655	-	2,655
Investment management fee		3	(138)	(346)	(484)
Other expenses			(336)	-	(336)
Return on ordinary activities before   finance costs and tax			2,181	(4,225)	(2,044)
Finance costs			(57)	(85)	(142)
Return on ordinary activities before tax			2,124	(4,310)	(2,186)
Tax on ordinary activities			-	-	-
Return attributable to shareholders			2,124	(4,310)	(2,186)
Return per Income share - basic and diluted (pence)		4	4.19p	(7.54p)	(3.35p)
Return per Growth share - basic and diluted (pence)		4	-	(1.31p)	(1.31p)

 

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 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 - basic and diluted (pence)	4	4.01p	(11.41p)	(7.40p)
Return per Growth share - basic and diluted (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.

 

Condensed Income Statement (audited)

Year to 31 May 2023⁽¹⁾

		Notes	Revenue	Capital	Total
			£'000	£'000	£'000
Losses on investments			-	(13,698)	(13,698)
Foreign exchange losses			-	(5)	(5)
Income		2	5,019	-	5,019
Investment management fee		3	(293)	(730)	(1,023)
Other expenses			(689)	-	(689)
Return on ordinary activities before   finance costs and tax			4,037	(14,433)	(10,396)
Finance costs			(95)	(143)	(238)
Return on ordinary activities before tax			3,942	(14,576)	(10,634)
Tax on ordinary activities			(11)	-	(11)
Return attributable to shareholders			3,931	(14,576)	(10,645)
Return per Income share - basic and diluted (pence)		4	7.96p	(18.16p)	(10.20p)
Return per Growth share - basic and diluted (pence)		4	-	(14.51p)	(14.51p)

 

 

⁽¹⁾ 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 2023

	Notes	Income Shares	Growth Shares	Total
		£'000	£'000	£'000
Fixed assets
Investments at fair value	6	61,270	82,417	143,687
Current assets
Debtors	7	550	182	732
Cash at bank and on deposit		1,327	2,117	3,444
		1,877	2,299	4,176
Creditors Amounts falling due within one year	8	(2,195)	(266)	(2,461)
Net current (liabilities)/assets		(318)	2,033	1,715
Creditors Amounts falling due in more than one year	8	(5,000)	-	(5,000)
Net assets		55,952	84,450	140,402
Capital and reserves:
Called-up share capital	9	3,299	2,498	5,797
Share premium		2,751	428	3,179
Capital redemption reserve		1,760	1,553	3,313
2022 special reserve		29,588	29,581	59,169
2008 special reserve		19,464	12,352	31,816
Capital reserves		(4,673)	38,038	33,365
Revenue reserve		3,763	-	3,763
Equity shareholders' funds		55,952	84,450	140,402
Net asset value per share (pence)	10	109.07p	228.97p

 

 

Unaudited Condensed Balance Sheet

As at 30 November 2022

 

 

	Notes	Income Shares	Growth Shares	Total
		£'000	£'000	£'000
Fixed assets
Investments at fair value		65,331	83,953	149,284
Current assets
Debtors	7	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	8	(2,234)	(459)	(2,693)
Net current assets		443	6,996	7,439
Creditors Amounts falling due in more than one year	8	(5,000)	-	(5,000)
Net assets		60,774	90,949	151,723
Capital and reserves:
Called-up share capital		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)	10	122.52p	235.42p

 

 

Condensed Balance Sheet (audited)

As at 31 May 2023⁽¹⁾

 

	Notes	Income shares	Growth shares	Total
		£'000	£'000	£'000
Fixed assets
Investments at fair value		64,183	82,360	146,543
Current assets
Debtors	7	198	68	266
Cash at bank and on deposit		3,002	5,610	8,612
		3,200	5,678	8,878
Creditors
Amounts falling due within one year	8	(3,650)	(518)	(4,168)
Net current (liabilities)/assets		(450)	5,160	4,710
Creditors
Amounts falling due in more than one year	8	(5,000)	-	(5,000)
Net assets		58,733	87,520	146,253
Capital and reserves
Called-up share capital	9	3,247	2,500	5,747
Share premium		1,917	428	2,345
Capital redemption reserve		1,760	1,553	3,313
2022 special reserve		29,588	29,581	59,169
2008 special reserve		19,422	14,930	34,352
Capital reserves		(853)	38,528	37,675
Revenue reserve		3,652	-	3,652
Equity shareholders' funds		58,733	87,520	146,253
Net asset value per share (pence)	10	116.41p	230.12p

 

 

⁽¹⁾ These figures are audited

Unaudited Condensed Statement of Cash Flows

Six months to 30 November 2023

 

 

	Notes	Income shares	Growth shares	Total
		£'000	£'000	£'000
Net cash outflow from operations before dividends   and interest	11	(351)	(485)	(836)
Dividends received		1,525	782	2,307
Interest received		31	93	124
Interest paid		(135)	-	(135)
Net cash inflow from operating activities		1,070	390	1,460
Investing activities
Purchases of investments		(4,651)	(5,686)	(10,337)
Sales of investments		3,242	4,383	7,625
Cash flows from investing activities		(1,409)	(1,303)	(2,712)
Cash flows before financing activities		(339)	(913)	(1,252)
Financing activities
Equity dividends paid Proceeds from issuance of new shares	5	(2,013) 633	- -	(2,013) 633
Shared purchased to be held in treasury		-	(2,536)	(2,536)
Share conversion		44	(44)	-
Cash flows from financing activities		(1,336)	(2,580)	(3,916)
Net movement in cash and cash equivalents		(1,675)	(3,493)	(5,168)
Cash and cash equivalents at the beginning of the period		3,002	5,610	8,612
Cash and cash equivalents at the end of the period		1,327	2,117	3,444
Represented by: Cash at bank and short-term deposits		1,327	2,117	3,444

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	11	(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

 

 

 

 

Condensed Statement of Cash Flows (audited)

Year to 31 May 2023⁽¹⁾

 

 

 

	Notes	Income shares	Growth shares	Total
		£'000	£'000	£'000
Net cash outflow from operations before dividends   and interest	11	(775)	(1,006)	(1,781)
Dividends received		3,409	1,556	4,965
Interest received		70	169	239
Interest paid		(220)	-	(220)
Net cash inflow from operating activities		2,484	719	3,203
Investing activities
Purchases of investments		(9,793)	(5,367)	(15,160)
Sales of investments		9,690	6,174	15,864
Cash flows from investing activities		(103)	807	704
Cash flows before financing activities		2,381	1,526	3,907
Financing activities
Equity dividends paid	5	(3,441)	-	(3,441)
Proceeds from issuance of new shares		2,049	446	2,495
Shares purchased to be held in treasury		-	(1,827)	(1,827)
Share conversion		464	(464)	-
Cash flows from financing activities		(928)	(1,845)	(2,773)
Net movement in cash and cash equivalents		1,453	(319)	1,134
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		3,002	5,610	8,612
Represented by: Cash at bank and short-term deposits		3,002	5,610	8,612

 

 

⁽¹⁾ These figures are audited

Unaudited Condensed Statement of Changes in Equity

Six months to 30 November 2023

 

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 2023	3,247	1,917	1,760	29,588	19,422	(853)	3,652	58,733
Increase in share capital in issue, net of issuance expenses	50	834	-	-	-	-	-	884
Share conversion	2	-	-		42	-	-	44
Transfer of net income from Growth to Income Portfolio	-	-	-	-	-	-	734	734
Transfer of capital from Income to Growth Portfolio	-	-	-	-	-	(734)	-	(734)
Dividends paid	-	-	-	-	-	-	(2,013)	(2,013)
Return attributable to shareholders	-	-	-	-	-	(3,086)	1,390	(1,696)
As at 30 November 2023	3,299	2,751	1,760	29,588	19,464	(4,673)	3,763	55,952
Growth shares
As at 31 May 2023	2,500	428	1,553	29,581	14,930	38,528	-	87,520
Increase in share capital in issue, net of issuance expenses	-	-	-	-	-	-	-	-
Shares purchased for treasury	-	-	-	-	(2,536)	-	-	(2,536)
Share conversion	(2)	-	-	-	(42)	-	-	(44)
Transfer of net income from Growth to Income Portfolio	-	-	-	-	-	-	(734)	(734)
Transfer of capital from Income to Growth Portfolio	-	-	-	-	-	734	-	734
Return attributable to shareholders	-	-	-	-	-	(1,224)	734	(490)
As at 30 November 2023	2,498	428	1,553	29,581	12,352	38,038	-	84,450
Total
As at 31 May 2023	5,747	2,345	3,313	59,169	34,352	37,675	3,652	146,253
Increase in share capital in issue, net of issuance expenses	50	834	-	-	-	-	-	884
Shares purchased for treasury	-	-	-	-	(2,536)	-	-	(2,536)
Share conversion	-	-	-	-	-	-	-	-
Dividends paid	-	-	-	-	-	-	(2,013)	(2,013)
Return attributable to shareholders	-	-	-	-	-	(4,310)	2,124	(2,186)
Total Company as at 30 November 2023	5,797	3,179	3,313	59,169	31,816	33,365	3,763	140,402

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

 

 

 

Condensed Statement of Changes in Equity (audited)

Year to 31 May 2023⁽¹⁾

 

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 share issuance expenses	132	1,917	-	-	-	-	-	2,049
Share conversion	22	-	-	-	442	-	-	464
Cancellation of deferred shares	(1,503)	-	1,503	-	-	-	-	-
Transfer of net income from Growth to Income Portfolio	-	-	-	-	-	-	1,187	1,187
Transfer of capital from Income to Growth Portfolio	-	-	-	-	-	(1,187)	-	(1,187)
Dividends paid	-	-	-	-	-	-	(3,441)	(3,441)
Return attributable to shareholders	-	-	-	-	-	(7,775)	2,744	(5,031)
As at 31 May 2023	3,247	1,917	1,760	29,588	19,422	(853)	3,652	58,733
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 share issuance expenses	18	428	-	-	-	-	-	446
Share conversion	(22)	-	-	-	(442)	-	-	(464)
Cancellation of deferred shares	(1,188)	-	1,188	-	-	-	-	-
Transfer of net income from Growth to Income Portfolio	-	-	-	-	-	-	(1,187)	(1,187)
Transfer of capital from Income to Growth Portfolio	-	-	-	-	-	1,187	-	1,187
Share purchased for treasury	-	-	-	-	(1,827)	-	-	(1,827)
Return attributable to shareholders	-	-	-	-	-	(6,801)	1,187	(5,614)
As at 31 May 2023	2,500	428	1,553	29,581	14,930	38,528	-	87,520
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 share issuance expenses	150	2,345	-	-	-	-	-	2,495
Share conversion	-	-	-	-	-	-	-	-
Cancellation of deferred shares	(2,691)	-	2,691	-	-	-	-	-
Shares purchased for treasury	-	-	-	-	(1,827)	-	-	(1,827)
Dividends paid	-	-	-	-	-	-	(3,441)	(3,441)
Return attributable to shareholders	-	-	-	-	-	(14,576)	3,931	(10,645)
Total Company as at 31 May 2023	5,747	2,345	3,313	59,169	34,352	37,675	3,652	146,253

 

⁽¹⁾ 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 'Financial Statements of Investment Trust Companies and Venture Capital Trusts' issued by The Association of Investment Companies.

 

The accounting policies applied for the condensed financial statements are set out in the Company's Annual Report and Financial Statements for the year ended 31 May 2023.

 

2.  Income

	Six months to 30 November 2023	Six months to 30 November 2022	Year to 31 May 2023
	£'000	£'000	£'000
UK dividends	1,850	1,605	3,096
Overseas dividends	568	560	1,290
Property income distributions	113	250	394
Deposit interest	124	83	239
Total income	2,655	2,498	5,019

 

3.  Investment management fee

   

 

	Six months to 30 November 2023	Six months to 30 November 2022	Year to 31 May 2023
	£'000	£'000	£'000
Investment management fee	484	520	1,023
	484	520	1,023

 

                                                              

The terms of the Investment Management Agreement with Columbia Threadneedle Investment Business Limited (the 'Manager') are summarised in the Company's Annual Report and Financial Statements to 31 May 2023 and there has been no change to the terms of the investment management fee as set out.

 

 

4.  Return per share

 

The return per share for the six months to 30 November 2023 is as follows:

 

	Income shares			Growth shares
	Revenue	Capital	Total	Revenue	Capital	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Return attributable to Portfolios	1,390	(3,086)	(1,696)	734	(1,224)	(490)
Transfer of net income from Growth Portfolio to Income Portfolio	734	-	734	(734)	-	(734)
Transfer of capital from Income Portfolio to Growth Portfolio	-	(734)	(734)	-	734	734
Return attributable to shareholders	2,124	(3,820)	(1,696)	-	(490)	(490)
Return per share	4.19p	(7.54p)	(3.35p)	-	(1.31p)	(1.31p)
Weighted average number of shares in issue during the period	50,632,769			37,456,146

 

 

The return per share for the comparative 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 Portfolio to Income Portfolio	580	-	580	(580)	-	(580)
Transfer of capital from Income Portfolio 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 year to 31 May 2023 is as follows:

 

	Income shares			Growth shares
	Revenue	Capital	Total	Revenue	Capital	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Return attributable to Portfolios	2,744	(7,775)	(5,031)	1,187	(6,801)	(5,614)
Transfer of net income from Growth Portfolio to Income Portfolio	1,187	-	1,187	(1,187)	-	(1,187)
Transfer of capital from Income Portfolio to Growth Portfolio	-	(1,187)	(1,187)	-	1,187	1,187
Return attributable to shareholders	3,931	(8,962)	(5,031)	-	(5,614)	(5,614)
Return per share	7.96p	(18.16p)	(10.20p)	-	(14.51p)	(14.51p)
Weighted average number of shares in issue during the year	49,363,770			38,696,431

 

 

5.    Dividends

	Payment	Six months to 30 November 2023	Six months to 30 November 2022	Year to 31 May 2023
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 2.19p (prior period: 2.0p) per Income share	7-Jul-2023	1,105	968	968
In respect of the period under review:
- first interim of 1.80p (prior period: 1.67p) per Income share	6-Oct-2023	908	811	811
- second interim (prior period: 1.67p per share)	-	-	-	829
- third interim (prior period: 1.67p per share)	-	-	-	833
		2,013	1,779	3,441

 

       A second interim dividend in respect of the year to 31 May 2024 of 1.80p per Income share was paid on 12 January 2024 to shareholders on the register on 15 December 2023. This amount has not been accrued in the results for the six months to 30 November 2023.

 

       For the financial year to 31 May 2023 interim dividends totalled 7.20p per Income share.

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6.   Investments

 

	Income shares Level 1(1) £'000	Growth shares Level 1(1) £'000	Total £'000
Cost at 31 May 2023 Gains at 31 May 2023	55,931 8,252	58,642 23,718	114,573 31,970
Valuation at 31 May 2023 Movement in the period Purchases at cost Sales proceeds (Losses)/gains on investments sold in the period Losses on investments held at period end	64,183   3,207 (3,242) (144) (2,734)	82,360   5,442 (4,383) 220 (1,222)	146,543   8,649 (7,625) 76 (3,956)
Valuation of investments held at 30 November 2023	61,270	82,417	143,687

           

 

Cost at 30 November 2023 Gains at 30 November 2023	55,752 5,518	59,921 22,496	115,673 28,014
Valuation at 30 November 2023	61,270	82,417	143,687

 

⁽¹⁾ Fair value hierarchy

 

(Losses)/gains on investments	Income shares £'000	Growth shares £'000	Total £'000
(Losses)/gains on investments sold in the period Losses on investments held at period end	(144) (2,734)	220 (1,222)	76 (3,956)
Total losses on investments	(2,878)	(1,002)	(3,880)

 

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;

·    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.   Debtors

 

30 November 2023	Income shares £'000	Growth shares £'000	Total £'000
Accrued Income	209	161	370
Due from brokers	251	-	251
Other debtors and prepayments	90	21	111
	550	182	732

 

30 November 2022	Income shares £'000	Growth shares £'000	Total £'000
Accrued Income	143	91	234
Other debtors and prepayments	89	30	119
	232	121	353

 

31 May 2023	Income shares £'000	Growth shares £'000	Total £'000
Accrued Income	102	44	146
Other debtors and prepayments	96	24	120
	198	68	266

 

 

 

8.   Creditors

Amounts falling due within one year

30 November 2023	Income shares £'000	Growth shares £'000	Total £'000
Revolving credit facility	2,000	-	2,000
Management fee accrued	101	137	238
Secretarial fee accrued	12	19	31
Other accruals	82	110	192
	2,195	266	2,461

Amounts falling due in more than one year

30 November 2023	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 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

31 May 2023	Income shares £'000	Growth shares £'000	Total £'000
Revolving credit facility	2,000	-	2,000
Management fee accrued	105	142	247
Secretarial fee accrued	12	17	29
Amount due to brokers	1,445	244	1,689
Other accruals	88	115	203
	3,650	518	4,168

Amounts falling due in more than one year

31 May 2023	Income shares £'000	Growth shares £'000	Total £'000
£5m fixed rate term loan maturing 10 February 2025	5,000	-	5,000

 

 

At 30 November 2023 the Company had 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 and are available until 10 February 2025. The interest rate on the term loan is fixed at 2.78% per annum, (30 November 2022: 2.78%; 31 May 2023: 2.78%) and the interest rate on the amounts drawn down under the RCF are variable based on SONIA plus a margin and a non-utilisation fee is payable on undrawn amounts.

 

During the six months to 30 November 2023 there were no changes in the amount borrowed and

therefore no change in liabilities arising from financing activities.

 

 

 

 

 

 

 

 

 

9.   Share capital

 

	Listed		Held in treasury		In issue
	Number	£'000	Number	£'000	Number	£'000
Income shares
Balance at 1 June 2023(1)	50,455,503	3,247	-	-	50,455,503	3,247
Issued	800,000	50	-	-	800,000	50
Share conversion:
-  Income to Growth	(232,005)	(15)	-	-	(232,005)	(15)
-  Growth to Income	274,753	17	-	-	274,753	17
-  Change in nominal value(1)	-	(190)	-	-	-	(190)
Balance at 30 November 2023(1)	51,298,251	3,109	-	-	51,298,251	3,109

 

	Deferred shares - Income
	Number	£'000
Deferred shares - Income
Balance at 1 June 2023	-	-
Issue of 50,748,498 shares(2)	50,748,498	190
Balance at 30 November 2023	50,748,498	190
Total called-up share capital		3,299

 

⁽¹⁾ 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 £0.064343979 to £0.060600579 per Income share.

⁽²⁾ The nominal value of a Deferred share is £0.0037434 per share.

 

During the period, the Company issued 800,000 Income shares (30 November 2022: 815,000; 31 May 2023: 1,665,000) from the block listing facilities receiving net proceeds of £884,000 (30 November 2022: £1,007,000; 31 May 2023: £2,049,000).

During the period, valid conversion notices were received to convert 232,005 Income shares (which represented a value of £238,000). These were converted into 110,393 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 2023 AGM.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	Listed		Held in treasury		In issue
	Number	£'000	Number	£'000	Number	£'000
Growth shares
Balance at 1 June 2023(1)	38,847,949	2,500	(815,000)	(53)	38,032,949	2,447
Issued	-	-	-	-	-	-
Purchased for treasury	-	-	(1,130,000)	(72)	(1,130,000)	(72)
Share conversion:
-  Growth to Income	(130,734)	(9)	-	-	(130,734)	(9)
-  Income to Growth	110,393	7	-	-	110,393	7
-  Change in nominal value(1)	-	(145)	-	7	-	(138)
Balance at 30 November 2023(1)	38,827,608	2,353	(1,945,000)	(118)	36,882,608	2,235

 

	Deferred shares -
	Growth
	Number	£'000
Deferred shares - Growth
Balance at 1 June 2023	-	-
Issue of 38,717,215 shares(2)	38,717,215	145
Balance at 30 November 2023	38,717,215	145
Total called-up share capital		2,498

 

⁽¹⁾ 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 £0.064343979 to £0.060600579 per Growth share.

⁽²⁾ The nominal value of a Deferred share is £0.0037434 per share.

 

During the period the Company bought back 1,130,000 (30 November 2022: 215,000; 31 May 2023: 815,000) Growth shares at a cost of £2,536,000 to be held in treasury.

During the period, valid conversions were received to convert 130,734 Growth shares (which represented a value of £282,000). These were converted into 274,753 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 2023 AGM.

 

10.     Net asset value per share

	30 November 2023	30 November 2022	31 May 2023
Income shares
Net asset value per share - pence	109.07p	122.52p	116.41p
Net assets attributable at end of   period - £'000	55,952	60,774	58,733
Shares in issue at end of period - number	51,298,251	49,605,503	50,455,503
Growth shares
Net asset value per share - pence	228.97p	235.42p	230.12p
Net assets attributable at end of   period - £'000	84,450	90,949	87,520
Shares in issue at end of period - number	36,882,608	38,632,949	38,032,949

 

 

 

 

 

 

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

Six months to 30 November 2023	Income shares £'000		Growth shares £'000	Total £'000
Return on ordinary activities before tax Adjust for returns from non-operating activities:		(1,696)	(490)	(2,186)
Losses on investments		2,878	1,002	3,880
Foreign exchange gains		(1)	-	(1)
Return from operating activities		1,181	512	1,693
Decrease in prepayments		-	3	3
Decrease in creditors		(10)	(8)	(18)
Withholding tax suffered		(1)	-	(1)
Dividend income		(1,632)	(899)	(2,531)
Interest income		(31)	(93)	(124)
Interest expense		142	-	142
Net cash outflow from operations before dividends and interest		(351)	(485)	(836)

 

 

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
Foreign 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)

 

Year to 31 May 2023		Income shares £'000	Growth shares £'000	Total £'000
Return on ordinary activities before tax Adjust for returns from non-operating activities:	(5,020)		(5,614)	(10,634)
Losses on investments	7,363		6,335	13,698
Foreign exchange losses	5		-	5
Return from operating activities	2,348		721	3,069
Decrease in prepayments	2		14	16
Decrease in creditors	(26)		(29)	(55)
Withholding tax suffered	(30)		-	(30)
Dividend income	(3,237)		(1,543)	(4,780)
Interest income	(70)		(169)	(239)
Interest expense	238		-	238
Net cash outflow from operations before dividends and interest	(775)		(1,006)	(1,781)

 

 

 

 

12.  Earnings

       Earnings for the six months to 30 November 2023 should not be taken as a guide to the results for the full year to 31 May 2024.

 

13.   Tax

       The effective revenue tax rate for the period to 30 November 2023 was nil% (30 November 2022: nil%; 31 May 2023: 0.3%). This is lower than the standard rate of corporation tax due to the level of non-taxable dividend income.

 

14.   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 during the period. 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 2028 Annual General Meeting ('AGM') (and five yearly thereafter) to continue the Company.  This will be proposed as an ordinary resolution.  The last such resolution was put to shareholders and passed at the AGM held on 28 September 2023.

 

The Directors believe, having assessed the principal risks and other matters 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 for a period of at least twelve months from the date of approval of the financial statements.  Accordingly, the financial statements have been drawn up on the basis that the Company is a going concern.

 

15.   Related party transactions

       The Directors of the Company is 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 and Financial Statements that could do so.

 

16.   Results

       The Company's auditor has not audited or reviewed the Half-Year Report and the results for the six months to 30 November 2023 and 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 2023, which received an unqualified audit report and 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 2023 are an extract from those financial statements. No full statutory financial statements in respect of any period after 31 May 2023 have been reported on by the Company's auditor or delivered to the Registrar of Companies.

 

       The Half-Year Report to 30 November 2023 is available on the website maintained on behalf of the Company at ctglobalmanagedportfolio.co.uk

 

 

 

 

 

 

 

 

 

 

 

 

Statement of Principal Risks and Uncertainties

 

As an investment company, investing primarily in listed securities, 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.

 

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 and Financial Statements for the year ended 31 May 2023.

 

The principal risks identified in the Annual Report and Financial Statements were:

 

·      Market risk - the Company's assets consist mainly of listed closed-end investment companies and its principal 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; and

·      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 outlook for inflation and ongoing macroeconomic and geopolitical concerns which have impacted the value of investments. In addition, the operational resilience of the Manager and the Company's other third party service providers has been considered. Following the acquisition of the Manager's business by Ameriprise Financial, the integration of its systems with Columbia Threadneedle Investments is now almost complete. It is believed that the residual risks from the integration are now low but the Board will continue to monitor this until complete.

 

The Board considers that the Company's principal risks and uncertainties have not changed materially since 31 July 2023, the date that the Company's Annual Report and Financial Statements was approved, 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 14.

 

Statement of Directors' Responsibilities in Respect of the Half-Year 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 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 Half-Year 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 and Financial Statements that could do so.

 

On behalf of the Board

 

David Warnock

Director

26 January 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alternative Performance Measures ('APMs')

The Company uses the following APMs.  These are not statutory accounting measures and are not intended as a substitute for statutory measures.

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 2023			31 May 2023
		Income	Growth		Income	Growth
		shares	shares		shares	shares
Net asset value per share	(a)	109.07p	228.97p		116.41p	230.12p
Share price	(b)	110.50p	225.00p		121.00p	225.00p
+Premium/ -discount (c = (b-a)/(a))	(c)	+1.3%	-1.7%		+3.9%	-2.2%

 

 

Total return - the return to shareholders calculated on a per share basis taking into account both any dividends paid in the period and 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 30 November 2023			Year to 31 May 2023
Total return - NAV	Income shares	Growth shares		Income Shares	Growth Shares
NAV per share at start of financial period/year	116.41p	230.12p		133.67p	244.41p
NAV per share at end of financial period/year	109.07p	228.97p		116.41p	230.12p
Change in the period/year	-6.3%	-0.5%		-12.9%	-5.8%
Impact of dividend reinvestments(1)	3.4%	n/a		5.5%	n/a
NAV total return for the period/year	-2.9%	-0.5%		-7.4%	-5.8%

 

 ⁽¹⁾ During the six months to 30 November 2023 dividends totalling 3.99p went ex-dividend with respect to the Income shares. During the year to 31 May 2023 the equivalent figure was 7.01p.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	Six months to 30 November 2023			Year to 31 May 2023
Total return - Share price	Income shares	Growth shares		Income Shares	Growth Shares
Share price per share at start of financial period/year	121.0p	225.0p		131.0p	244.0p
Share price per share at end of financial period/year	110.5p	225.0p		121.0p	225.0p
Change in the period/year	-8.7%	-%		-7.6%	-7.8%
Impact of dividend reinvestment(1)	3.3%	n/a		5.5%	n/a
Share price total return for the period/year	-5.4%	-%		-2.1%	-7.8%

 

⁽¹⁾ During the six months to 30 November 2023 dividends totalling 3.99p went ex-dividend with respect to the Income shares.  During the year to 31 May 2023 the equivalent figure was 7.01p.

 

 

 

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

		30 November 2023	31 May 2023
		£'000	£'000
Annual dividend	(a)	7.20p(1)	7.20p
Income share price	(b)	110.5p	121.0p
Yield (c = a/b)	(c)	6.5%	6.0%

 

⁽¹⁾  Based on dividends at the expected minimum annual rate of 7.20 pence per Income share for the

    financial year to 31 May 2024.

 

 

 

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 2023		31 May 2023
	Income Shares £'000	Growth Shares £'000	Income Shares £'000	Growth Shares £'000
Borrowings	7,000	-	7,000	-
Less cash and cash equivalents	(1,327)	(2,117)	(3,002)	(5,610)
	5,673	(2,117)	3,998	(5,610)
Shareholders' funds	55,952	84,450	58,733	87,520
Net gearing/-net cash	10.1%	-2.5%	6.8%	-6.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 2023
		Income shares	Growth shares
Indexed NAV total return at launch		100.0	100.0
Indexed NAV total return at 30 November 2023		236.2	233.6
Period (years)		15,625	15,625
Compound annual growth rate		5.7%	5.6%

 

 

 

 

For further information, please contact:

 

Peter Hewitt, Columbia Threadneedle Investment Business Limited                      0131 573 8360

Ian Ridge, Columbia Threadneedle Investment Business Limited                          0131 573 8316

Sarah Gibbons-Cook, Quill PR                                                                           07702 412680