Monthly Report
July 14 2003 - 12:09PM
UK Regulatory
RNS Number:5335N
Anglo & Overseas Trust PLC
14 July 2003
Anglo & Overseas Trust
REPORT FOR THE MONTH OF JUNE 2003
REVIEW
Our trust marked time with a small increase over the month. We continue to
maintain our level of exposure to the markets, which we expect to rise as
interest rates remain low.
UK
The UK equity market was relatively flat over the month, with the FTSE All-Share
Index rising by just 0.1% in capital terms. Medium-sized and smaller companies
continued to outperform, with the FTSE Small Cap Index rising by 3.6% and the
FTSE Mid 250 Index by 3.1% but the FTSE 100 Index falling by 0.4% in capital
terms.
The best performing sectors were the "cyclical" areas of Automobiles & Parts and
Electronic & Electrical Equipment. General Retailers, Leisure & Hotel and
Financial stocks also performed well. The worst performing sectors were Telecom
Services and IT Hardware, although Food Producers & Processors were also weak
following another disappointing update from Unilever.
Major transactions during the period included adding to existing holdings in
BSkyB, Gallaher, Vodafone and Smith & Nephew as well as establishing a new
holding in Marks & Spencer. Holdings were sold in Carphone Warehouse and reduced
in Canary Wharf.
USA
Many market watchers had anticipated a pullback in stocks following a run in
April and May that brought the major stock indexes to their highest levels in a
year. Equity markets proceeded to move higher in June, however, as a lack of
negative earnings pre-announcements and some positive economic news seemed to
add to investor optimism. Stocks encountered some headwinds in the form of
downbeat news from the corporate sector, but not enough to keep the market out
of positive territory.
The Composite of Leading Economic Indicators, which is designed to predict the
direction of the U.S. economy for the next three to six months, rose for its
second consecutive month in May. The better-than-expected gain marked the
biggest rise in the index since December 2001 and reflected higher stock prices,
fewer jobless claims, and an increase in money supply. The Conference Board,
which releases the number, said two consecutive months of increases reflect "the
beginning of an upward trend." The Federal Reserve cut the fed funds rate, which
banks charge each other for overnight loans, by a quarter-point to a 45-year low
in an attempt to stave off deflation and stimulate the economy. Stocks advanced
in anticipation of the rate cut, but pulled back slightly as some investors were
disappointed by only a quarter-point cut that was already priced into stocks.
The broad market S&P 500 gained 1.1% in USD terms for the month of June. Equity
markets remain volatile with top performing sectors rotating each month. The
health care and industrial sectors were the largest contributors to the
performance of the S&P 500 in June, while a month earlier they were among the
poorest performing sectors.
Major transactions during the period included the purchase of Altera which had
sold off due to market fears about the Intel mid quarter update and the
elimination of Intuit after a strong price rally.
Japan
The Japanese market had a strong liquidity driven rally in June on the back of a
stronger US market, foreign investors' buying, and Japanese individual
investors' speculative purchases of lower quality, low priced stocks. Japanese
macro economic announcements during the month were mixed, however suggesting
some tentative signs of improvement. Tokyo Stock Exchange 1st Section's daily
traded volume exceeded one billion shares, taking it back to June 1988 levels.
Technology stocks, economically and market geared stocks and lower quality
stocks outperformed. Defensive and high quality stocks trailed. During the month
we established holdings in Konami and Daiwa House, which we believe look
attractively valued, Konami in the light of the strong growth it looks likely to
experience over the next two years and Daiwa house due to a combination of
strong order inflow, restructuring and share buy-backs. We sold the holding in
Sumitomo Trust & Banking and took profits in Sharp and KDDI following strong
outperformance.
EUROPE
After a strong start to June markets fell towards month end, leaving them little
changed overall.
We have added to our holdings in the materials segment, with new purchases of
Lafarge and Stora Enso. This was partially offset by reductions in the financial
sphere, with disposals of Swiss Re , Nordea and Dexia.
After a period of relative weakness we bought back Group 4 Falck (sold earlier
this year).
NET ASSET VALUE 30/06/03 31/05/03
prior charges at nominal value 202.81p 202.16p
prior charges at market value 185.62p 183.57p
MID-MARKET SHARE PRICE
Ordinary Share 163.75p 161.50p
Dividend Yield (%) 2.4 2.4
DISTRIBUTION OF ASSETS at market value 30/06/03 31/05/03
Market exposure
% %
EQUITIES
United Kingdom 44.7 43.7
U.S.A. 32.9 32.7
Latin America 0.6 0.6
Japan 4.5 4.2
Belgium 0.3 0.4
Denmark 0.5 0.4
Eire 0.1 0.1
Finland 0.6 0.6
France 1.8 1.6
Germany 1.8 1.8
Greece 0.1 0.1
Italy 1.2 1.4
Netherlands 1.0 0.7
Norway - 0.1
Portugal 0.4 0.4
Spain 0.9 1.0
Sweden 0.3 0.5
Switzerland 1.9 2.3
TOTAL PORTFOLIO 93.6 92.6
Net Current Assets 6.4 7.4
---------- ----------
TOTAL 100.00 100.00
---------- ----------
Based on total assets less current liabilities of #280.6 million (#279.9 million).
GEARING
Borrowings and Gearing at 30/06/03 31/05/03
#000's #000's
Debenture Stock 2020 34,407 34,405
Debenture Stock 2012 33,720 33,708
----------- -----------
68,127 68,113
=========== ===========
32.1% 32.2%
=========== ===========
Based on net asset value of #212.5 million (#211.8 million).
LARGEST HOLDINGS (market value #106.2 million equal to 40.5% of total portfolio)
#'000's % of
portfolio
HSBC Holdings 9,687 3.7
Vodafone Group 8,694 3.3
GlaxoSmithKline 8,564 3.3
BP 8,355 3.2
Royal Bank of Scotland 7,185 2.7
AstraZeneca 5,647 2.1
Shell Transport & Trading 5,442 2.0
BT Group 3,905 1.5
Microsoft 3,592 1.4
Citigroup 3,587 1.4
Exxon Mobil 3,377 1.3
Pfizer 3,197 1.2
General Electric Co. of America 3,111 1.2
Bank of America 3,094 1.2
Scottish and Southern Energy 3,085 1.2
United Technologies 2,837 1.1
Tate & Lyle 2,818 1.0
Imperial Tobacco 2,760 1.0
Cisco Systems 2,620 1.0
Lloyds TSB 2,565 1.0
Barclays 2,536 1.0
Morgan Stanley 2,518 1.0
Johnson & Johnson 2,469 0.9
Gallagher 2,338 0.9
3M Company 2,251 0.9
FINANCIAL CALENDAR
Interim dividend announced 4 August 2003
Interim report posted 21 August 2003
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, authorised and 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
END
MSCILFIRDDISLIV