Interim Management Statement
August 11 2008 - 9:52AM
UK Regulatory
RENAISSANCE US GROWTH INVESTMENT TRUST PLC
Interim Management Statement
for the three month period from 1 April 2008 to 30 June 2008
The Board of Renaissance US Growth Investment Trust PLC ("the Company") is
pleased to present the Company's third Interim Management Statement. These
statements will be produced in addition to the Company's quarterly newsletters.
The next quarterly newsletter will be posted to shareholders and released via
RIS later this month.
Investment objective
The Company's investment objective is to achieve capital growth and outperform
its benchmark, the Russell 2000 Index.
At the Company's Annual General Meeting held on 10 July 2008 the following
investment policy was approved by shareholders:
The Manager will seek to meet the above mentioned investment objective by
investing primarily in securities issued by companies listed, quoted or
domiciled in the US and Canada. These securities include, inter alia, privately
placed common stock, preferred stock, convertible debentures and warrants, and
may also include securities traded on an exchange. The companies in which
investments are made would generally be regarded as belonging to the category
of companies with `micro' stock market capitalisations at the time of purchase,
typically those companies with market capitalisation below $1 billion. From
time to time, the Company also invests in securities in unlisted US companies
with similar characteristics. Although there are no limits set up the Board on
the proposition which may be invested in unlisted securities, it is expected
that such exposure will not exceed 25%.
Subject to the geographic restrictions on listing or domicile set out here, the
Company is able to invest its net assets in businesses which generate sales and
earnings outside the US so the Company may have significant economic exposure
to markets or economies outside North America.
The Board sets no specific limits on sector weights, or on the number of
securities which may be held, although no investment will be made that would
represent more than 15% of the value of the Company's total investments at the
time of purchase. The Board reviews the investment at each board meeting to
ensure that diversification is adequate for a portfolio of this type.
The Company is permitted by its Articles of Association to borrow up to 30% of
its net assets, and may do so on an opportunistic basis determined by the
availability of investment opportunities.
A large proportion of the Company's investments will be, by their very nature,
less readily marketable than equities in general.
The Company invests on a long only basis, and does not currently intend to
hedge its non UK currency exposure back into sterling.
It is the Company's policy not to invest in UK listed investment companies,
including listed investment trusts.
Financial highlights: Performance
30 June 2008* 31 March 2008 % change
Net assets
Sterling � 56,051,000 56,261,000 (0.37)
US $ 111,550,000 111,819,000 (0.24)
Number of Ordinary shares 19,109,008 19,109,008 -
Net asset value
Pence per share 293.32p 294.42p (0.37)
US cents per share 583.75c 585.16c (0.24)
Mid Market price 244.50p 253.00p (3.36)
Discount to NAV 16.64% 14.07% 2.57
Russell 2000 Index - total return with dividends reinvested into
index for the period
US $ 0.59
Sterling adjusted 0.38
S&P 500 Index - total return with dividends reinvested into the
index for the period
US $ (2.72)
Sterling adjusted (2.92)
Financial highlights: Summary of net assets
30 June 2008* 31 March 2008 % change
�'000 �'000
Listed portfolio holdings 43,061 39,940 7.81
Unlisted portfolio holdings 15,523 13,072 18.75
Net current assets 1,752 3,249 (46.08)
(excluding margin accounts)
Gross assets 60,336 56,261 7.24
Margin account (4,285) - -
Net assets 56,051 56,261 (0.37)
* Net assets for the period to 30 June 2008 include estimated current period
revenue.
Review of the period
The Company's Annual General Meeting was held on 10 July 2008, at which all
resolutions were passed on a show of hands.
During the period the Company has drawn down amounts totalling $8,500,000 on
its margin facility. Interest is charged to the margin account increasing the
outstanding balance.
NAV performance
The NAV decreased from 294.42p on 31 March 2008 to 293.32p on 30 June 2008
resulting in a three month return of -0.37% against the Russell 2000 return of
0.38%. Unrealized gains in A-Power and Fushi Copperweld were offset by
unrealized losses in BPO Management Services, Integrated Security Systems,
Merriman Curhan Ford, Omnivision, Points International and Simtek.
Largest holdings
As at 30 June 2008, the Company's three largest holdings were Fushi Copperweld,
Zhongpin and Bovie Medical Corporation. Fushi Copperweld manufactures
bimetallic composite wire products in the United States, Europe and China.
Zhongpin is a Chinese meat and food processor which offers chilled and frozen
pork products. Bovie Medical Corporation engages in the manufacture and
marketing of medical products.
Top ten holdings as at 30 June 2008
Portfolio company Sector Value % of net
assets
$'000 %
Fushi Copperweld Industrial 13,111 11.8
manufacturing
Zhongpin Food processing 8,121 7.3
Bovie Medical Corporation Healthcare 7,865 7.1
A Power Energy Generation Constructional 6,663 6.0
Systems engineering
Cover-All Technologies Information technology 5,901 5.3
Dynamic Green Energy Solar Photovoltaics 4,000 3.6
China Greenscape Company Forest products 3,250 2.9
SIMTEK Corporation Engineering 3,236 2.9
Skystar Biotechnology 3,063 2.8
Bio-Pharmaceutical Company
China Urban Planning 3,000 2.7
Infrastructure Development
Subsequent events
The Board is not aware of any significant events or transactions which have
occurred since 30 June 2008 and the date of publication of this statement which
would have a material effect on the financial position of the Company.
11 August 2008
END
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