Interim Management Statement
May 12 2010 - 6:26AM
UK Regulatory
TIDMBPW
Interim Management Statement - Blue Planet Worldwide Financials Investment Trust
Quarter Ended the 30th April 2010
Fund Manager's Review
In April our NAV fell 6.7% to 91.5p per share. The benchmark index made a
return of -2.4% over the month. The NAV underperformed the market in the second
half of the month as the gearing reintroduced in the fund amplified the effect
of the weakness in the market. The share price fell 2.9% to 66.0p. Over the
last three months the NAV of the fund has risen 2.5%, whilst the benchmark has
risen 12.5% and the share price has fallen 4.3%. As of 30th April 2010,
shareholder funds were GBP12,882,213 and total borrowings were GBP7,500,000.
With the Greek fiscal crisis in the EU and the UK General Election exposure to
the UK and Europe remained low this month. Significant investments in the US
were made as its economic recovery moves up a gear. Global manufacturing
activity continues to pick up, with the pace accelerating in April. While
emerging markets have been the main drivers of the early recovery in world
trade, US figures are also very encouraging. Production is increasing and
creating a pent-up demand for hiring and a jobs recovery is in sight. It
appears increasingly likely that US employment has entered a period of
sustained expansion. The first quarter results for many of the US financial
companies we are invested in are shown below. In these results it is clear that
credit pressures have moderated and revenues were resilient. US banks have also
relaxed their lending criteria, a precursor to credit expansion and a necessary
component for growth. This has led to significant upgrades to profit estimates
for US financial companies for 2010 and means that these companies are
currently on modest valuations. As the World's major economies are now growing,
some rapidly, we anticipate that this will propel share prices upwards over the
next year or two.
The following first quarter 2010 results have been issued this month by
companies within the portfolio:
Franklin Resources Net Income ("NI") rose 222% year-on-year ("yoy")
Citigroup NI rose 178% yoy
Goldman Sachs NI rose 91% yoy
Bank Mandiri NI rose 43% yoy
Australia and New Zealand Banking Group NI rose 36% yoy
CME Group NI rose 21% yoy
Erste NI rose 10% yoy
Bank of America NI fell 24% yoy
Morgan Stanley returned to profit of $1.4bn compared to a $0.6bn loss year ago.
MGIC net loss narrowed to $150m compared to a net loss of $184m a year ago.
Cumulative Performance (%) as of 30th April 2010
Current 1 month 3 months 6 months 1 year 3 years 5 years
(p)
NAV 91.52 -6.7% 2.5% -5.3% 29.1% -57.2% 15.1%
Share Price - 66.00 -2.9% -4.3% -24.7% 17.6% -63.5% -4.6%
Total Return
Benchmark 73.28 -2.4% 12.5% 11.3% 37.3% -15.4% 26.4%
Discount/ -27.9 -30.7 -22.7 -9.1 -20.6 -15.5 -12.9
Premium (%)
Source: Blue Planet, share price bid to bid, net income reinvested
Discrete Annual Performance (%) as of 30th April 2010
Share price Benchmark
1Q/09 - 1Q/10 77.0% 60.1%
1Q/08 - 1Q/09 -68.6% -34.1%
1Q/07 - 1Q/08 -44.7% -15.8%
1Q/06 - 1Q/07 31.8% -1.0%
1Q/05 - 1Q/06 137.3% 43.2%
Source: Blue Planet, share price bid to bid, net income reinvested
Portfolio Information as of 30th April 2010
Security Security Country Valuation Weighting
Type Name GBP %
61,696 Equity BP Global Eire 2,555,489 12.5
Financials-A
Class
2,789,060 Equity Bank Mandiri Indonesia 1,165,046 5.7
54,100 Equity Morgan Stanley US 1,072,508 5.2
1,640,084 Equity Bank Rakyat Indonesia 1,066,367 5.2
Indonesia
52,000 Equity Lincoln National US 1,040,409 5.1
Corporation
85,690 Equity Bank of America US 997,491 4.9
Corp
145,400 Equity MGIC Investment US 992,878 4.8
Corporation
64,910 Equity Australia & NZ Australia 949,174 4.6
Banking Group
26,600 Equity Commonwealth Bank Australia 941,835 4.6
Australia
99,800 Equity Radian Group Inc. US 924,558 4.5
55,335 Equity Westpac Banking Australia 909,300 4.4
Corp
306,345 Equity Citigroup Inc US 878,480 4.3
3,240 Equity CME Group Inc. US 696,662 3.4
34,130 Equity Hartford US 638,848 3.1
Financial
Services
8,300 Equity Franklin US 628,559 3.1
Resources Inc.
93,230 Equity Prudential Plc UK 539,802 2.6
17,790 Equity Erste Group Bank Austria 518,817 2.5
AG
87,220 Equity Turkyie Halk Turkey 448,560 2.2
Bankasi
244,640 Equity Asya Katilim Turkey 425,835 2.1
Bankasi AS
134,600 Equity Fortress US 418,587 2.0
Investment Group
LLC
7,750 Equity The Canada 376,456 1.8
Toronto-Dominion
Bank
7,280 Equity Canadian Imperial Canada 348,380 1.7
Bank
3,610 Equity Goldman Sachs US 342,517 1.7
Group Inc.
409,795 Equity Other Other 343,591 1.7
19,220,149 93.7
Security Cash Denomination Valuation Weighting
Type Security Name GBP %
Liquid Near Cash Assets GBP 0 0.0
Assets
Liquid Cash GBP 305,805 1.5
Assets
Liquid Cash Other 991,780 4.8
Assets Currency
1,297,585 6.3
20,517,734 100
END
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