Interim Management Statement
May 16 2012 - 9:56AM
UK Regulatory
TIDMBPW
Interim Management Statement - Blue Planet Worldwide Financials Investment
Trust plc
Quarter Ended the 30th April 2012
Fund Manager's Review
In April the NAV per share of the Fund fell 4.8% to 46.65p before taking
account of GBP83,450 of merger costs which were met during the month. Those
merger costs will however be offset by an uplift in NAV per share when the
Fund's cross-shareholdings are cancelled on completion of the proposed merger.
Over the last three months the Fund's NAV has fallen 4% and its share price
risen by 11.5%, whilst the benchmark has risen 1.8%.
The month was very disappointing not least because it is becoming increasingly
clear from a wide range of economic indicators that the recovery in the US
economy, where most of our investments are, is broadening and gathering pace.
During the month data was released showing that in March consumer credit
increased by the most in 10 years, consumer spending is rising; banks are
beginning to lend again; small business confidence has risen to a
post-recession high; and that in the first quarter house prices rose in more
than half of all American cities signifying the housing market is stabilizing.
In addition, US companies reported excellent first quarter earnings with over
70% of S&P 500 companies beating estimates. In addition and of great importance
the US Government had a budget surplus of $59.1bn in April the first surplus
since September 2008 and the third largest since 2007. In summary, our US
equities ought to be rising to reflect this improving economic environment yet
for the most part they fell during the month.
Sadly Greece, an economically insignificant country, with a GDP of only some
EUR200bn and total outstanding Government debt of about EUR330bn - that is less
than a fifth of the size of BNP Paribas' balance sheet - is responsible for
this. European banks have the capacity to absorb a complete right down of all
Greek Government debt if that were ever to be required. With approximately 70%
of Greek Government Debt currently held by the ECB, IMF, and EU bailout funds,
private sector exposure following the Debt Swap Deal in March is only about
EUR89bn. To put this it into perspective that is the equivalent of about 5% of
European banks' shareholders' funds.
Several companies in which we are invested reported quarterly earnings during
the month. Adjusted for one-time gains and extraordinary items they were as
follows:
American International Group +101% quarter on quarter and +27% year on year.
Capital One +88% quarter on quarter and -25% year on year.
JP Morgan Chase +27% quarter on quarter and +3.3% year on year.
US Bancorp +6.3% quarter on quarter and +37% year on year.
Cumulative Performance (%) as of 30th April 2012
Current 1 month 3 months 6 months 1 year 3 years 5 years
(p)
NAV 46.05 -6.1% -4.0% -10.3% -30.1% -35.0% -78.4%
Share Price - 29.00 1.8% 11.5% -6.5% -25.6% -48.3% -84.0%
Total Return
Benchmark - 63.65 -2.7% 1.8% 7.7% -10.0% 26.0% -22.4%
Total Return
Discount / + -37.0 -41.9 -45.8 -39.6 -40.8 -20.6 -15.5
Premium (%)
Source: Blue Planet, share price bid to bid, net income reinvested
Discrete Annual Performance (%) as of 30th April 2012
Share price Benchmark
1Q/11 - 1Q/12 -32.1% -8.3%
1Q/10 - 1Q/11 -38.2% 0.5%
1Q/09 - 1Q/10 77.0% 60.1%
1Q/08 - 1Q/09 -68.6% -34.1%
1Q/07 - 1Q/08 -44.7% -15.8%
Source: Blue Planet, share price bid to bid, net income reinvested
Portfolio Information as of 30th April 2012
Security Security Country Valuation Weighting
Type Name GBP %
12,226 Equity Capital One United 417,901 6.4
Financial States
Corporation
174,169 Equity Resolution Ltd United 389,790 6.0
Kingdom
285,240 Equity Legal & General United 335,442 5.2
Group Plc Kingdom
108,810 Equity Aviva Plc United 335,244 5.2
Kingdom
275,100 Equity Henderson Group United 333,146 5.1
Plc Kingdom
25,020 Equity Hartford United 316,719 4.9
Financial States
Services
2,075 Equity Zurich Insurance Switzerland 312,475 4.8
Group AG
62,672 Equity Bank of America United 312,318 4.8
Corporation States
612,500 Equity PT Bank Mandiri Indonesia 301,676 4.6
(Persero) Tbk
586,000 Equity PT Bank Rakyat Indonesia 259,173 4.0
Indonesia
(Persero) Tbk
11,834 Equity U.S. Bancorp United 234,435 3.6
States
217,835 Equity RSA Insurance United 228,509 3.5
Group Plc Kingdom
7,910 Equity JP Morgan Chase & United 209,225 3.2
Co States
58,860 Equity Tullett Prebon United 202,184 3.1
plc Kingdom
8,410 Equity iShares S&P U.S. United 200,710 3.1
Preferred Stock States
Index Fund
1,866,005 Equity Other Other 1,667,931 25.7
6,056,878 93.2
Security Cash Denomination Valuation Weighting
Type Security Name GBP %
Fixed Income LloydsTSB Bank United 224,264 3.5
plc 22/04/2025 Kingdom
7.625%
Fixed Income LloydsTSB Bank United 130,406 2.0
plc 29/05/2020 Kingdom
6.9625%
354,670 5.5
Security Cash Denomination Valuation Weighting
Type Security Name GBP %
Liquid Near Cash Assets GBP 0 0.0
Assets
Liquid Cash GBP 86,442 1.3
Assets
Liquid Cash Other 0 0.0
Assets Currency
86,442 1.3
6,497,990 100
For more information, please visit www.blueplanet.eu
You can also contact the Company on 0845 527 7588 or by emailing
info@blueplanet.eu
END
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