Interim Management Statement
August 19 2011 - 10:10AM
UK Regulatory
TIDMRUG
RENN UNIVERSAL GROWTH INVESTMENT TRUST PLC
Interim Management Statement
for the three month period from 1 April 2011 to 30 June 2011
The Board of RENN Universal Growth Investment Trust PLC ("the Company") is
pleased to present the Company's 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 objective of the Company is to achieve capital growth and to outperform its
benchmark, the Russell 2000 Index.
Investments are made 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 capitalisations at the time of
purchase, typically those companies with market capitalisations 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 by
the Board on the proportion which may be invested in unlisted securities, it is
expected that such exposure will not exceed 25% over a prolonged period.
The full text of the investment policy can be found in the Company's 2011
annual report and accounts, which is available at: http://
www.renaissanceusgrowth.com.
Financial highlights: Performance
30 June 2011 31 March 2011 % change
Net assets
Sterling GBP 53,977,000 58,564,000 (7.8)
US $ 86,657,000 93,875,000 (7.7)
Number of Ordinary shares 18,394,008 18,659,008 (1.4)
Net asset value
Pence per share 293.45p 313.86p (6.5)
US cents per share 471.12c 503.11c (6.4)
Mid Market price 207.88p 252.00p (17.5)
Discount to NAV 29.16% 19.71% (9.5)
Russell 2000 Index
US Dollar 3,717.36 3,778.03 (1.6)
Sterling adjusted 2,313.66 2,351.71 (1.6)
S&P 500 Index
US Dollar 2,241.66 2,239.44 0.1
Sterling adjusted 1,395.20 1,393.99 0.1
Financial highlights: Summary of net assets
30 June 2011 31 March 2011 % change
GBP'000 GBP'000
Listed portfolio holdings 32,998 42,425 (22.2)
Unlisted unquoted portfolio 13,903 13,039 6.6
holdings
Other unlisted portfolio holdings 1,340 1,418 (5.5)
Time value of warrants 3 11
Cash at bank 5,643 1,563
Net current assets 183 426
Gross assets 54,071 58,882
Revolving credit facility - (241)
Provision for liabilities and (94) (77)
charges
Net assets 53,977 58,564 (7.8)
Review of the period
The Company's annual results were released on 21 June 2011.
The Company's Annual General Meeting was held on 28 July 2011, at which all
resolutions were passed on a show of hands.
As at 30 June 2011, the Company had $nil drawn down on its revolving credit
facility with Salomon Smith Barney. This facility was repaid in full on 8 June
2011.
NAV performance
The NAV decreased from 313.86p on 31 March 2011 to 293.45p on 30 June 2011
resulting in a three month decline of 6.5% against the Russell 2000 decline (in
Sterling terms) of 1.6%.
Largest holdings
As at 30 June 2011, the Company's three largest holdings were, Cover-All
Technologies Inc. AnchorFree Inc. and PHC, Inc.
Cover-All Technologies is a leader in developing sophisticated software
solutions primarily for the property and casualty insurance industry.
AnchorFree is the world's only free ad-supported virtual private network
enabling users to access all internet content anonymously and securely from any
location in the world. PHC provides behavioural health services through
inpatient and outpatient facilities. PHC specialises in treatment related to
alcohol and drug dependency.
Top ten holdings as at 30 June 2011
Company Name Sector Value % of Net A
ssets
$000
Cover-All Technologies, Application Software 19,010 21.9
Inc.
AnchorFree Internet Software & Services 16,262 18.8
PHC, Inc. Healthcare Facilities 4,567 5.3
Dynamic Green Energy Semiconductors 4,000 4.6
Fushi Copperweld, Inc. Electrical Components & 3,166 3.7
Equipment
Points International Ltd. Internet Software & Services 3,035 3.5
Bovie Medical Corporation Healthcare Equipment 2,871 3.3
Access Plans, Inc. Managed Healthcare 2,725 3.1
SinoHub, Inc. Application Software 2,693 3.1
Integrated Security Electrical Components & 2,659 3.1
Systems, Inc. Equipment
Subsequent events
At a meeting of the Board of Directors on 28 July 2011, following a review of
the portfolio the Board decided to write off GBP636,000 of accrued interest which
it now believes is unlikely to be collected. Other than this write off and the
repayment of the margin facility on 8 June 2011 (as referred to above), the
Board is not aware of any significant events or transactions which have
occurred since 30 June 2011 and the date of publication of this statement which
would have a material effect on the financial position of the Company.
19 August 2011
END
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