Monthly Report
May 13 2003 - 8:05AM
UK Regulatory
RNS Number:0236L
Anglo & Overseas Trust PLC
13 May 2003
Anglo & Overseas Trust
REPORT FOR THE MONTH OF APRIL 2003
REVIEW
Equity markets rallied strongly during April on relief over the quick end to the
Iraq war. Our net asset value rose 9.0% and our share price 15.5%. We invested a
net #3.9 million in the USA while trimming our UK and European portfolios.
UK
The UK equity market rallied strongly during the month with the FTSE All-Share
Index rising by 9.0% in capital terms. In contrast to last month, smaller
companies outperformed, with the FTSE Small Cap Index rising by 11.3%, the FTSE
Mid 250 Index rising by 10.9% and the FTSE 100 Index rising by 8.7% in capital
terms.
The best performing sectors over the month were the "cyclical" areas of Steel &
Other Metals, IT Hardware and Life Assurance, although it should be noted that
the big sectors of Banks and Pharmaceuticals also outperformed. Apart from
Mining and Oil & Gas stocks, the worst performing sectors were the "defensive"
areas of Tobacco, Real Estate, Electricity and Food Producers.
Major transactions during the period included the purchase of a new position in
Aviva and adding to existing holdings in both HSBC and Standard Chartered.
Disposals during the month included a reduction of holdings in HBOS and Imperial
Tobacco after strong outperformance.
USA
Equity markets rallied in April, driven by better than expected earnings and by
increasing investor confidence about the geopolitical environment. However,
while first-quarter earnings have generally been better than expected, investors
have remained concerned about the economic outlook.
Markets started to rally, as it became apparent that the major fighting in the
war was winding down, and that coalition forces had taken control of Iraq's
major cities. Many investors believe a conclusion to the war in Iraq will bring
lower oil prices and will help clear the path for an economic recovery in the
United States.
As the intensity of the war declined, investors seemed to shift some of their
attention away from events in Iraq to first quarter earnings season. About
two-thirds of the companies in the S&P 500 had reported earnings for the most
recent quarter. Many big-name companies have topped expectations with the help
of cost cutting, but some remain hesitant to offer clear forecasts for the
quarters ahead. Most of the positive surprises have come from the banks,
particularly investment banks, as well as consumer discretionary names, such as
autos. The financials and consumer discretionary sectors were the top performers
of the S&P 500 with both gaining about 12%.
Economic reports have been somewhat disappointing, with closely watched surveys
showing uneven demand for housing, weak industrial activity, and continued
softness on the employment front. Encouragingly, though, we are also starting to
see a selective recovery in retail spending and a modest pickup in consumer
sentiment. The Commerce Department reported that the nation's gross domestic
product (GDP) -- the broadest measure of economic health -- grew at an annual
rate of 1.6% in the first quarter. This was less than the 2.4% anticipated, but
it helped ease fears that the country could be headed for a double-dip
recession. Some attributed the weaker than expected GDP numbers to geopolitical
anxiety leading up to the war in Iraq, which caused oil prices to reach a
twelve-year high and brought consumer confidence to a nine-year low.
The broad market S&P 500 gained 8.1% in USD terms for the month. The energy
sector was the only sector of the S&P 500 to end in negative territory.
Major transactions during the period included adding Comcast and eliminating Dow
Chemical, Sungard, and SBC.
Japan
TOPIX rose 1.1% in local currency terms in April. The Japanese stock market
failed to fully participate in the rally that buoyed most western stock markets
at the end of the war in Iraq as fears of SARS impacted sentiment across Asia.
Economic statistics included the CPI indicating a fifth consecutive year of
decline in prices for the fiscal year 2002, the average unemployment rate for
fiscal 2002 reached an all time high at 5.4% and industrial production decreased
0.2% month on month in March compared to the market consensus of +1.5%. During
the month we established a position in Secom, which looks attractively valued
given the strong organic growth in its core security business. We reduced the
underweight position in NTT DoCoMo and increased the fund's auto exposure
further by adding to the holding in Toyota. We sold the fund's position in Sony
immediately following the release of disappointing annual results. We also sold
the positions in Daiwa House and Pioneer following strong outperformance, which
left the shares looking fully valued.
EUROPE
The market rallied strongly reflecting optimism over the development of the Iraq
war. During the month we added to holdings in Schneider (electricals), Aventis
(pharmaceuticals) and Tietoenator (IT Services). A new position was established
in Dexia (banks).
We sold the positions in Publicis (advertising), SAP (technology) and reduced
positions in Schering (pharmaceuticals), Telecom Italia (telecom) and D/S 1912
(shipping).
NET ASSET VALUE 30/04/03 31/03/03
prior charges at nominal value 194.37p 178.31p
prior charges at market value 177.80p 161.66p
MID-MARKET SHARE PRICE
Ordinary Share 156.50p 135.50p
Dividend Yield (%) 2.5 2.9
DISTRIBUTION OF ASSETS at market value 30/04/03 31/03/03
Market exposure
% %
EQUITIES
United Kingdom 43.5 43.4
U.S.A. 33.2 31.9
Latin America 0.6 0.6
Japan 4.2 4.8
Belgium 0.4 0.2
Denmark 0.4 0.5
Eire 0.1 0.1
Finland 0.9 0.8
France 1.6 1.6
Germany 1.8 1.8
Greece 0.1 0.1
Italy 1.4 1.4
Netherlands 0.7 0.7
Norway 0.1 0.1
Portugal 0.4 0.4
Spain 0.8 0.7
Sweden 0.6 0.6
Switzerland 2.3 2.2
TOTAL PORTFOLIO 93.1 91.9
Net Current Assets/(Liabilities) 6.9 8.1
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TOTAL 100.00 100.00
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Based on total assets less current liabilities of #271.7 million (#254.9 million).
GEARING
Borrowings and Gearing at 30/04/03 31/03/03
#000's #000's
Debenture Stock 2020 34,402 34,399
Debenture Stock 2012 33,696 33,684
----------- -----------
68,098 68,083
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33.4% 36.4%
===== =====
Based on net asset value of #203.6 million (#186.8 million).
LARGEST HOLDINGS (market value #103.3 million equal to 40.8% of total portfolio)
#'000's % of
portfolio
HSBC Holdings 9,275 3.7
GlaxoSmithKline 9,221 3.6
Vodafone Group 8,397 3.3
BP 7,883 3.1
Royal Bank of Scotland 6,936 2.7
AstraZeneca 5,858 2.3
Shell Transport & Trading 5,459 2.2
Microsoft 3,672 1.5
Bank of America 3,614 1.4
Exxon Mobil 3,394 1.3
Citigroup 3,374 1.3
General Electric Co. of America 3,276 1.3
BT Group 3,153 1.2
Pfizer 2,953 1.2
Scottish and Southern Energy 2,943 1.2
Johnson & Johnson 2,761 1.1
United Technologies 2,541 1.0
Lloyds TSB 2,453 1.0
Cisco Systems 2,401 1.0
Barclays 2,396 1.0
Tate & Lyle 2,392 0.9
Avon Products Inc 2,362 0.9
BPB 2,257 0.9
3M Company 2,255 0.9
Standard Chartered 2,115 0.8
For further information, contact Mark Pope at Deutsche Investment Trust Managers
Limited on 020-7545-6000.
For additional copies, changes of address or details of our Private Investors'
Plan, low cost ISA, PEP Transfer and Dividend Reinvestment Plan (a plan through
which shareholders, who hold their shares on the Company's main register, can
use their dividends to purchase further shares) contact Mark Pope on
020-7545-0520, e-mail address: mark.pope@db.com. Further details of Anglo &
Overseas Trust including the latest annual, interim and monthly reports can be
found on the Deutsche Investment Trust Managers website located at
www.deutsche-its.co.uk.
Issued by Anglo & Overseas Trust PLC and approved by Deutsche Investment Trust
Managers Limited, regulated by the Financial Services Authority and manager of
Anglo & Overseas Trust PLC. Investors should be aware that past performance is
not necessarily a guide to future returns, the price of shares and the income
from them can fall as well as rise and investors may not get back the amount
they invested. Fluctuations in exchange rates may also affect the value of your
investment. Anglo & Overseas Trust PLC may invest in shares traded in emerging
markets which may at times be illiquid and/or volatile.
This information is provided by RNS
The company news service from the London Stock Exchange
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