Interim Management Statement
December 04 2007 - 4:16AM
UK Regulatory
INTERIM MANAGEMENT STATEMENT
Anglo & Overseas Plc
Interim Management Statement for the three months to 31 October 2007
The Board of Anglo & Overseas Plc ('the Company') announces its first Interim
Management Statement as required by the UK Listing Authority's Disclosure and
Transparency Rules. This Statement is in respect of the period from 1 August
2007 to 31 October 2007.
Objective & Investment Policy
The objective of Anglo & Overseas Plc is to provide shareholders with above
average returns over the longer term through both capital appreciation and
income growth. The Company invests principally in securities of publicly
quoted companies worldwide, though it may invest up to 5 per cent of its gross
assets in unquoted securities. There are concentrated UK and international
portfolios, with each portfolio representing between 40 and 60 per cent of the
Company's total investments, and comprising 30 to 40 securities. The Company
may also invest in bonds, cash or short term deposits where the manager
considers it prudent to do so. The Company's investments are managed without
reference to the composition of any stock market index.
Review of the Period
Results and Dividend
During the three month period to 31 October 2007 the Company's net asset value
per share (including income) increased by 0.3% from 130.99p to 131.33p. The
total return for the period was 0.3%.
Although the Company's portfolio is not managed by reference to any stock
market index, the Board having decided not to adopt a formal benchmark, we
continue to believe it would be useful to highlight the performance of your
Company against market indices for comparison purposes.
The total return from the FTSE All-Share Index over the three month period was
+6.0%, while the corresponding total return from the FTSE All-World ex UK Index
was +7.1%. The total return from the average of these indices over the three
month period under review was +6.5%.
Performance was adversely impacted by the Company's lack of exposure to emerging
markets and mining stocks, which performed strongly the period. Our Investment
Manager believes emerging markets and mining stocks are overvalued from a long
term investment viewpoint.
Since the Company's launch in July 2005 the net asset value total return has
amounted to 34.0%. The total return from the FTSE All-Share Index since launch
was 40.8%, while the return from the FTSE All-World ex UK Index was 30.6%. The
total return from the average of those indices since launch was 35.7%.
Following the approval of shareholders at the Annual General Meeting held on 8
November 2007, the Company paid a final dividend of 1.58p per share for the
period to 31 July 2007. This was paid on 14 November 2007 to shareholders on
the register as at 26 October 2007. The ex-dividend date was 24 October 2007.
Share Price and Discount
The share price fell by 1.7% from 118.25p to 116.25p, resulting in the share
price discount to net asset value (excluding income) increasing from 9.1% to
11.0% during what was a very volatile period in equity markets.
Your Board continues to believe that the shares of your Company should trade in
a relatively narrow range around net asset value and as a consequence operates
a share buy back policy. During the period the Company repurchased 510,000 shares
which are all held in treasury. The total number of shares held in treasury as
at 31 October 2007 totalled 1,904,285 shares. The total number of shares in
circulation at 31 October 2007 was 87,820,096, with the total number of shares
in issue, including treasury shares, being 89,724,381 shares.
Investment Strategy and Outlook
There was a high degree of volatility in global equity markets during the
period. Given the more uncertain economic outlook the Manager reduced the
Company's equity exposure and increased cash balances to over 9% of net assets
by the end of the period.
The Manager continues to remain concerned that risk is under priced in many
companies and with economic growth slowing that this will have a significant
impact on companies which have high levels of operational gearing.
The Company's portfolio is constructed from a valuation
perspective, with the vast majority of the holdings being large capitalisation
stocks with strong balance sheets and good cash flow. These companies should
be better able to increase profits in a more adverse economic environment.
FINANCIAL SUMMARY
31 October 31 July 2007 % Change
2007
Net asset value per 131.33p 130.99p +0.3%
share (including
income)
Net asset value per 130.60p 130.12p +0.4%
share (excluding
income)
Share price 116.25p 118.25p -1.7%
Share price 11.0% 9.1%
discount/ (premium)
to net asset value
(excluding income)
Total net assets �115.3m �115.7m
TOTAL RETURN PERFORMANCE
3 Month Period Period Period Since
1 August 2007 29 July 2006 12 May 2005 Launch
to to to
31 October 2007 31 July 2007 28 July 2006*
Share Price -0.3% +10.5% +9.3% +20.4%
Net Asset Value +0.3% +12.3% +19.0% +34.0%
Composite Index +6.5% +12.9% +12.9% +35.7%
The above table shows the Net Asset Value total return (including re-invested
dividends) and Share Price total return (including reinvested dividends) of
Anglo & Overseas Plc from 29 July 2005, the date the Company's shares were
first admitted to listing on the London Stock Exchange and the total return
from a comparable stock market index. The Net Asset Value total return has
been calculated on a monthly basis by Edinburgh Partners. The Share price and
index performance figures are calculated monthly using total return figures
sourced from Datastream International. The index is a 50:50 split of the FTSE
All-Share Index and FTSE All-World ex UK Index.
*The Company was incorporated on 12 May 2005, but did not start trading until
29 July 2005.
Past performance is not a guide to future performance.
Enquiries:
Sandy Nairn
Graham Campbell
Kenneth Greig
Edinburgh Partners Limited
12 Charlotte Square
Edinburgh EH2 4DJ
Tel: 0131 270 3800
Registered Office of the Company:
Beaufort House
51 New North Road
Exeter EX4 4EP
END
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