F&C ASSET MANAGEMENT
F&C Managed Portfolio Trust ('the Company') has announced a period of positive net asset value ('NAV') total returns in its interim results to 30 November 2014, led by returns in the biotech and technology sectors. NAV total returns for the six months were 4.3% for the Growth Portfolio, and 3.0% for the Income Portfolio, ahead of the benchmark return of -0.1% for the FTSE All-Share Index over the same period.
Biotech holdings, which led the strong performance in the Growth Portfolio, included the Biotech Growth Trust, which rose 52%, and the Worldwide Healthcare Trust, which gained 33%. Successful new products and continuing M&A activity underpinned the share prices of leading companies in the sector, almost all of which are based in the US. Stocks in the broader technology sector also did well, with Polar Capital Technology Trust up 23%. In the Income Portfolio the major contributor to positive performance was the Swiss based BB Biotech which saw a 50% increase in its share price over the period. Another strong performer was Schroder Real Estate Investment Trust, which was ahead by 10% and benefitted from the uplift in property values in key provincial cities in the UK.
The Company has declared a first and second interim dividend in respect of the year to 31 May 2015, each of 1.15p per Income share. The second interim dividend was paid to Income shareholders on 5 January
2015. The Board intends to pay three interim dividends, each of 1.15p per Income share in the current financial year. The amount of the fourth interim dividend will be determined when a clearer view of income for the year emerges. Based on dividends at the historic annual rate of 4.8p per Income share and the Income share price at 30 November 2014, this represents a dividend yield of 3.9%, compared to a yield on the benchmark of 3.3%.
Commenting on the global outlook, fund manager, Peter Hewitt, said:
"The magnitude of the fall in oil price has caught markets by surprise. Lower energy prices are the equivalent of a tax cut, particularly for the US where 70% of the economy is consumer based. This underpins the outlook for growth in the US, which could well strengthen further in 2015 and bring with it the likelihood of the first interest rate increase for many years. The UK should also do well, though the prospect of a rate increase is somewhat further out. The area of most concern remains Europe.
"Prospects for corporate earnings and dividend growth are good in the US, reasonable in the UK, and less clear in the Eurozone. Equity markets, particularly in the US, have come a long way; however bull markets tend not to end until either valuation levels massively overshoot fair value, or there is premature monetary tightening, of which there is no sign yet. Our strategy is to remain fully invested as there should be more to go for in this market cycle, though there is little room for error."
After the period end, the Company entered into a £5 million unsecured revolving credit facility with The Royal
Bank of Scotland plc to replace the borrowing facility with JPMorgan Chase Bank.
Over the last twelve months the Company has sold all its remaining Income shares which were held in treasury and 1,400,000 Growth shares which were held in treasury. It has also issued a further 1,225,000 new Income shares. At a General Meeting, to be held on 2 February 2015, the Board is seeking early renewal of shareholder authorities to allot further Income shares and Growth shares and to dis-apply pre- emption rights in respect of those shares.
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A period of positive net asset value total returns; 4.3% for the Growth shares and 3.0%% for the
Income shares, compared to a benchmark return of -0.1%
Dividend yield of 3.9%, based on dividends at the historic annual rate of 4.8p per Income share, compared to a yield on the benchmark of 3.3%
About F&C Managed Portfolio Trust: F&C Managed Portfolio Trust has two classes of shares - Income shares and Growth shares each with distinct investment objectives, investment policies and underlying asset portfolios.
The objective of the Growth Portfolio is to provide Growth shareholders with capital growth from a diversified portfolio of investment companies. The Growth Portfolio invests in at least 25 investment
companies.
The objective of the Income Portfolio is to provide Income shareholders with an attractive level of income with the potential for income and capital growth from a diversified portfolio of investment companies. The Income Portfolio invests in at least 25 investment companies.
The benchmark index for both the Income Portfolio and the Growth Portfolio is the FTSE All-Share
Index.
EndsThe full results statement is attached.
Press enquiries: Richard Janes Director, Communications Richard.janes@fandc.comTel: +44 (0) 20 7011 4298fandc.sc@fticonsulting.com
Tel: +44 (0) 20 3727 1888 About F&C Investments, a part of BMO Global Asset Management
F&C is focused exclusively on managing money for its clients. It manages assets for a combination of insurance clients, institutional investors, intermediaries and private individuals. F&C invests across all major asset classes - equities, fixed income and property - and has specialist expertise in asset allocation, alternative investments, liability driven investments, multi-manager, private equity funds and Environmental Social and Governance (ESG) Investing. The F&C Group includes F&C REIT, a global real estate asset manager.
F&C has a strong footprint in the U.K. and the rest of Europe with assets under management of approximately £83 billion as at June 30, 2014. F&C has a rich heritage that dates back almost 150 years and can be traced back to the founding in 1868 of the Foreign & Colonial Investment Trust.
BMO Global Asset Management, of which F&C Investments is the European hub, is a global investment organisation providing investment management, retirement, and trust and custody services to institutional, retail and high net worth investors, from 24 offices in 14 countries to clients across five continents. BMO Global Asset Management has £169 billion assets under management as at September 30 2014. BMO Global Asset Management is a part of BMO Financial Group (NYSE:BMO), a fully diversified financial services organization with C$522 billion total assets and more than 47,000 employees as of October 31,
2014.
Past performance should not be seen as an indication of future performance. The value of investments and income derived from them can go down as well as up as a result of market or currency movements and investors may not get back the original amount inve sted. The information, opinions estimates or forecasts contained in this document were obtained from sources reasonably believed to be reliable and are subject to change at any time. F&C Group Companies may from time to time deal in investments mentioned herein on behalf of their clients. The source of information in all graphs is F&C unless otherwise stated. F&C Management Limited is a uthorised
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and regulated by the Financial Conduct Authority FRN: 119230 F&C Management Limited is a member of the F&C Group. The F&C Group is wholly owned by BMO Global Asset Management (Europe) Limited, which is itself a wholly owned subsidiary of the Bank of Montreal. F&C, the F&C logo, REO and the 'reo' logo are registered trademarks of F&C Asset Management plc. F&C Investments and the F&C Investments logo are trademarks of F&C Management Limited. © Copyright F&C Management Limited 2014. All Rights Reserved. Neither this document nor any part of it may be reproduced by any party whether by photocopying or storing in any m edium by electronic means or otherwise without the prior approval of F&C Management Limited.
F&C Management Ltd accepts no liability in respect of the information or any views expressed herein which may be subject to c hange without notice at any time.
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