Midas Income & Growth Trust PLC
Unaudited Interim Management Statement - 3 months to 31 July 2010
To the shareholders of Midas Income & Growth Trust PLC
This interim management statement has been produced solely to provide additional information to shareholders as a body to meet the relevant requirements of the UK Listing Authority's Disclosure and Transparency Rules. It should not be relied upon by any other party or for any other purpose.
This interim management statement relates to the period from 1 May 2010 to 31 July 2010, and contains information that covers this period, and up to the date of publication of this interim management statement, unless otherwise specified.
Investment objective
The Company seeks to achieve an absolute return with low volatility through investment in a multi- asset portfolio. This will be achieved by investing in a diverse portfolio comprising principally of UK equities and fixed interest securities, together with overseas equities, property, alternative assets and structured products.
The portfolio will ordinarily contain some 50 - 65 holdings, and targets a benchmark return of 8% per annum through a combination of high and growing income and additional capital growth. Investment will be made in a combination of direct holdings together with a range of other investment funds where more specialised management skills are necessary.
Benchmark
The Company does not compare its performance to an index, but has instead adopted a target benchmark of 8% per annum.
Material events
On 6 July 2010, the Company posted its Annual Report and Accounts to 30 April 2010, and Notice of Annual General Meeting, to Shareholders. The Company's Annual General Meeting was held at Martin's Building, Water Street, Liverpool on 7 September 2010.
On 17 August 2010 the Company announced a first interim dividend to Ordinary Shareholders of 1.63p per share for the year ending 30 April 2011. The dividend will be payable on 17 September 2010 to those Shareholders on the register on 27 August 2010, Ex Date 25 August 2010.
On 7 September 2010 the Company held its Annual General Meeting at which all resolutions were passed. The special business included resolutions to allow the Company to issue shares (up to 10% of the issued share capital without pre-emption); to buy back shares (up to 14.99% of the issued share capital); to release the Directors from the obligation to wind up the Company in 2011 in accordance with Article 161.1; to adopt new Articles of Association; and, to authorise the Directors to convene a General Meeting on 14 days' notice.
The Company allotted 1,934,411 new Ordinary shares of 25p each on 7 September 2010 under its Blocklisting facility, following the exercise of 1,934,411 Warrants to subscribe for Ordinary shares at 100p per share in the period to the final exercise date on 31 August 2010. The Shares will rank pari passu with the Company's existing Shares.
The Board is not aware of any other significant events or transactions which have occurred between 31 July 2010 and the date of publication of this interim management statement which would have a material impact on the financial position of the trust.
Ten largest "direct equity" holdings at 31 July 2010
|
1.
|
A J Bell Holdings Limited*
|
5.0%
|
|
2.
|
GlaxoSmithKline plc
|
2.2%
|
|
3.
|
Standard Life plc
|
2.0%
|
|
4.
|
Scottish & Southern Energy plc
|
2.0%
|
|
5.
|
AstraZeneca plc
|
2.0%
|
|
6.
|
Ashmore Group plc
|
1.9%
|
|
7.
|
Royal Dutch Shell B Shares plc
|
1.8%
|
|
8.
|
BP plc
|
1.8%
|
|
9.
|
Vodafone Group plc
|
1.7%
|
|
10.
|
National Grid plc
|
1.7%
|
|
Total
|
22.1%
|
*Unquoted Investment.
Ten largest "other" holdings as at 31 July 2010
|
1.
|
Partners Group Global Opportunities
|
3.2%
|
|
2.
|
Blackrock Commodities Income Investment Trust
|
3.0%
|
|
3.
|
Threadneedle Property Unit Trust
|
2.9%
|
|
4.
|
Royal London Sterling Extra High Yield Bond Fund
|
2.7%
|
|
5.
|
City Merchants High Yield Trust
|
2.6%
|
|
6.
|
Harewood US Enhanced Income Fund (Hedged)
|
2.5%
|
|
7.
|
Acencia Debt Strategies
|
2.2%
|
|
8.
|
Ecclesiastical 8.625% Preference Shares
|
2.1%
|
|
9.
|
Assured Fund
|
2.1%
|
|
10.
|
Royal & Sun Alliance 7.375% Preference Shares
|
2.0%
|
|
Total
|
25.3%
|
General description of Company's financial position and performance as at 31 July 2010
|
Total Gross Assets*:
|
£51.6m
|
|
Debt:
|
£7.0m
|
|
Total Net Assets*:
|
£44.6m
|
|
Gearing:
|
15.7%
|
|
Historic Net Yield:
|
5.9%
|
|
Undiluted Net Asset Value*:
|
117.0p
|
|
Fully Diluted NAV*:
|
116.2p
|
|
Mid-Market Share Price:
|
111.3p
|
|
Discount
|
(4.2%)
|
|
Warrants:
|
9.8p
|
|
Annual Management Fee Charged on Net Assets:
|
1.0%
|
|
* Excluding current period revenue
|
|
A performance fee is payable of 10% of any out performance of the benchmark of 8%. This is subject to a high water mark.
Cumulative performance (%)
|
|
as at
31/07/10
|
3 months
|
6 months
|
1 year
|
2 year
|
3 year
|
19/08/2005 to Date
|
|
Share Price
|
111.3
|
-4.1
|
6.2
|
25.2
|
2.4
|
-22.7
|
-1.7
|
|
NAV
|
116.2
|
-3.2
|
2.4
|
17.7
|
-2.9
|
-18.3
|
0.4
|
|
Index (8% p.a.)
|
|
1.9
|
3.9
|
8.0
|
16.6
|
26.0
|
46.4
|
Discrete performance (%)
|
|
31/07/2010
|
31/07/2009
|
31/07/2008
|
31/07/2007
|
|
Share Price
|
25.2
|
-18.2
|
-24.5
|
9.5
|
|
NAV
|
17.7
|
-17.5
|
-15.9
|
13.5
|
|
Index (8% p.a.)
|
8.0
|
8.0
|
8.0
|
8.0
|
|
|
|
|
|
|
|
Total Return; Net Income Reinvested, GBP
|
|
Source: Aberdeen Asset Managers Limited, Morningstar and Russell Mellon
|
|
NAV returns based on NAVs excluding income and with debt valued at par
|
Please note that past performance is not necessarily a guide to the future and that the value of investments and the income from them may fall as well as rise. Investors may not get back the amount they originally invested.
For Midas Income & Growth Trust PLC
Aberdeen Asset Management PLC, Secretary
8 September 2010