Monthly Report
August 12 2003 - 6:40AM
UK Regulatory
RNS Number:5712O
Anglo & Overseas Trust PLC
12 August 2003
ANGLO & OVERSEAS TRUST PLC
REPORT FOR THE MONTH OF JULY 2003
REVIEW
Our trust had a good month and we made good use of our gearing with our net
asset value per share rising by 5.1%, with prior charges valued at their nominal
value, compared to a rise of 4.1% in our benchmark. Stock selection improved in
the US and we are adding to our holdings there.
UK
The UK equity market made steady progress over the month, with the FTSE
All-Share Index rising by 3.8% in capital terms. However, larger companies
continued to underperform, with the FTSE 100 Index rising by just 3.1% whereas
the FTSE
The best performing sectors over the month were the "cyclical" areas Steel &
Other Metals, IT Hardware and Life Assurance. Mining stocks also performed well
following a modest rally in the US dollar. "Defensive" sectors generally
performed poorly, with significant underperformance from Tobacco, Utilities,
Pharmaceuticals, Telecoms and Oils.
Major transactions during the period included adding to existing holdings in
Vodafone, Alliance & Leicester, Wm Morrison and Scottish & Southern Energy. New
holdings were also established in Kesa Electricals and Kingfisher post the
demerger. Holdings were sold in United Utilities, Taylor Nelson Sofres, Luminar
and Marks & Spencer as well as being significantly reduced in Tesco.
USA
Second quarter earnings season moved into high gear with about two thirds of the
companies in the S&P 500 reporting results. On average earnings were higher than
estimated, but this seemed to be already priced into the market. Cost-cutting
and the benefits of a weak dollar were common themes. Meanwhile, Wall Street
turned to economic data for evidence of a positive impact from the abundant
stimulus currently at work in the economy. Investors applauded a series of
better-than-expected reports that showed stronger economic growth, an increase
in durable goods orders, greater optimism among manufacturers and a drop in
demand for initial jobless benefits.
The broad market S&P 500 gained 1.6% in USD capital terms for the month of July.
Top performing sectors continue to rotate each month. The materials and
technology sectors were the largest contributors to the performance of the S&P
500 in July, while a month earlier they were among the poorest performing
sectors.
Major transactions during the period included the purchases of Symantec and
Kohl's. Holdings were eliminated in Anadarko Petroleum and Biovail.
Japan
The market retained its upward momentum from June and the Nikkei 225 Index
briefly hit the 10,000 level on the back of strong buying from foreign
investors. However, there was continued and intensified selling pressure from
domestic financial institutions, which contributed to the market falling off
towards the end of the month. Japan's large integrated electronic manufacturers,
whose share prices had risen sharply in recent months, fell as some of these
companies reported disappointing earnings. The average daily transaction value
exceeded 1 trillion yen for the first time since April 2000. During the month we
established a holding in Nippon Oil on valuation grounds and in the belief that
profitability should improve on the back of cost cutting and industry
consolidation. We sold the holding in Yamanouchi Pharmaceutical in favour of
Fujisawa and Takeda. We sold the holding in Secom after valuation work suggested
the shares were fully valued following a period of strong performance.
EUROPE
European markets collectively rose over July on hopes of an improvement in the
economic climate.
Activity on the portfolio was as follows; we sold positions in OPAP, Valeo, ABN
Amro and Infineon (all of which had achieved price targets). We also sold
holdings in Brisa and ENEL in order to reduce a significant utility overweight.
Positions were acquired in Peugeot after a sharp period of underperformance,
Reed Elsevier (also a recent underperformer) as well as the German financials
Allianz and HypoVereins. These two had performed better recently (from very low
bases), but look to be reasonable restructuring situations given stability in
the equity market.
NET ASSET VALUE 31/07/03 30/06/03
prior charges at nominal value 213.22p 202.81p
prior charges at market value 197.25p 185.62p
MID-MARKET SHARE PRICE
Ordinary Share 171.75p 163.75p
Dividend Yield (%) 2.3 2.4
DISTRIBUTION OF ASSETS at market value 31/07/03 30/06/03
Market exposure
% %
EQUITIES
United Kingdom 45.3 44.7
U.S.A. 33.6 32.9
Latin America 0.7 0.6
Japan 4.8 4.5
Belgium 0.3 0.3
Denmark 0.4 0.5
Eire 0.1 0.1
Finland 0.4 0.6
France 2.2 1.8
Germany 1.8 1.8
Greece 0.0 0.1
Italy 1.0 1.2
Netherlands 1.0 1.0
Portugal 0.0 0.4
Spain 0.8 0.9
Sweden 0.2 0.3
Switzerland 2.1 1.9
TOTAL PORTFOLIO 94.7 93.6
Net Current Assets 5.3 6.4
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TOTAL 100.00 100.00
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Based on total assets less current liabilities of #291.5 million (#280.6 million).
GEARING
Borrowings and Gearing at 31/07/03 30/06/03
#000's #000's
Debenture Stock 2020 34,411 34,407
Debenture Stock 2012 33,732 33,720
----------- -----------
68,143 68,127
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30.5% 32.1%
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Based on net asset value of #223.4 million (#212.5 million).
LARGEST HOLDINGS (market value #110.5 million equal to 40.0% of total portfolio)
#'000's % of
portfolio
HSBC Holdings 10,161 3.7
Vodafone Group 9,531 3.5
BP 8,470 3.1
GlaxoSmithKline 8,347 3.0
Royal Bank of Scotland 7,426 2.7
AstraZeneca 5,771 2.1
Shell Transport & Trading 5,300 2.0
Citigroup 3,854 1.4
Microsoft 3,799 1.4
BT Group 3,752 1.4
Scottish and Southern Energy 3,707 1.3
Exxon Mobil 3,435 1.2
Bank of America 3,318 1.2
Pfizer 3,206 1.2
General Electric Co. of America 3,167 1.1
Cisco Systems 3,122 1.1
United Technologies 3,094 1.1
Lloyds TSB 2,879 1.0
Morgan Stanley 2,869 1.0
Tate & Lyle 2,740 1.0
Barclays 2,639 1.0
Amgen 2,587 0.9
3M Company 2,512 0.9
Imperial Tobacco 2,492 0.9
Avon Products 2,286 0.8
FINANCIAL CALENDAR 21 August 2003
Interim report & accounts posted
Interim dividend paid 12 September 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
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