MITON GLOBAL OPPORTUNITIES PLC
(formerly Miton Worldwide Growth Investment Trust PLC)
Half-Yearly Report for the period ended 31 October 2015
Miton Global Opportunities plc ("the Company") has today released its
Half-Yearly Report for the six months ended 31 October 2015.
Key Information:
* The Company's name has been changed to more accurately reflect the
investment approach, which seeks principally to exploit pricing
inefficiencies in closed-end investment funds.
* The Company has been reclassified into the AIC's new Flexible Investment
sector, being companies "whose policy allows them to invest in a range of
asset types".
* Shareholders have approved new provisions within the Articles to enable
shareholders to elect, in 2018 and then at three year intervals, for the
realisation of all or part of their shareholding.
* Investment Manager believes that the current environment increases the
potential for pricing inefficiencies and provides a number of interesting
opportunities. Despite maintaining a cautious view about the general
direction of equity markets, the Company is fully invested.
The Half-Yearly Report and other information is available via
www.mitongroup.com/migo.
Enquiries:
Miton Group plc
David Barron
DDI: +44 (0) 203 714 1474
Email: david.barron@mitongroup.com
Numis Securities Limited
Nathan Brown, Corporate Broking and Advisory
DDI: +44 (0) 20 7260 1426
Email: n.brown@numis.com
HALF-YEARLY REPORT
Miton Global Opportunities plc is an investment trust which was launched on 6
April 2004.
CAPITAL STRUCTURE
At a General Meeting of the Company held on 9 September 2015, shareholders
approved proposals to remove the requirement for future continuation votes in
the Company's Articles of Association and instead include provisions enabling
shareholders to elect, in 2018 and then at three year intervals, for the
realisation of all or part of their shareholding. The Company's share capital
therefore comprises Ordinary shares of 1p each with one vote per share and
Realisation shares of 1p each, when in issue, with one vote per share.
The rights of holders of Ordinary shares (being shares in respect of which no
election for realisation has been made) and of Realisation shares (being shares
in respect of which an election for realisation has been made), when in issue,
will be as follows: the portfolio will be split into two separate and distinct
pools, namely a continuation pool comprising assets attributable to the
continuing Ordinary shares (the "Continuation Pool") and a realisation pool
comprising the assets attributable to the Realisation shares (the "Realisation
Pool"). The assets in the Realisation Pool will be managed in accordance with
an orderly realisation programme with the aim of making progressive returns of
cash to holders of Realisation shares as soon as practicable. The precise
mechanism for any return of cash to holders of Realisation shares will depend
upon the relevant factors prevailing at the time and will be at the discretion
of the Board.
As at 31 October 2015 and the date of this report, there were 25,279,985
Ordinary shares in issue, none of which were held in Treasury.
INVESTMENT OBJECTIVE
The objective of the Company is to outperform 3 month LIBOR plus 2% over the
longer term, principally through exploiting inefficiencies in the pricing of
closed-end funds. This objective is intended to reflect the Company's aim of
providing a better return to shareholders over the longer term than they would
get by merely placing money on deposit.
The benchmark in the investment objective is a target only and should not be
treated as a guarantee of performance of the Company or its portfolio.
INVESTMENT POLICY
The Company invests in closed-end investment funds traded on the London Stock
Exchange's Main Market, but has the flexibility to invest in investment funds
listed or dealt on other recognised stock exchanges, in unlisted closed-end
funds (including, but not limited to, funds traded on AIM) and in open-ended
investment funds. The funds in which the Company invests may include all types
of investment trusts, companies and funds established onshore or offshore. The
Company has the flexibility to invest in any class of security issued by
investment funds including, without limitation, equity, debt, warrants or other
convertible securities. In addition, the Company may invest in other
securities, such as non-investment fund debt, if deemed to be appropriate to
produce the desired returns to shareholders.
The Company is unrestricted in the number of funds it holds. However, at the
time of acquisition, no investment will have an aggregated value totalling more
than 15% of the gross assets of the Company. Furthermore, the Company will not
invest more than 10%, in aggregate, of the value of its gross assets at the
time of acquisition in other listed closed-end investment funds, although this
restriction does not apply to investments in any such funds which themselves
have stated investment policies to invest no more than 15% of their gross
assets in other listed closed-end investment funds. In addition, the Company
will not invest more than 25%, in aggregate, of the value of its gross assets
at the time of acquisition in open-ended funds.
There are no prescriptive limits on allocation of assets in terms of asset
class or geography, save that no more than 80% of the Company's gross assets
can be held in any one geographical region.
There are no limits imposed on the size of hedging contracts, save that their
aggregated value will not exceed 20% of the portfolio's gross assets at the
time they are entered into.
The Board permits borrowings of up to 20% of the Company's net asset value
(measured at the time new borrowings are incurred).
The Company's investment objective may lead, on occasions, to a significant
amount of cash or near cash being held.
REVIEW OF THE PERIOD
Over the period, the Company's net asset value decreased by 4.37% and the share
price decreased by 2.76% (capital return).
During the period, the shares traded between a 6.01% and an 11.55% discount,
ending the period on an 8.89% discount (source: Bloomberg).
As at 31 October 2015, the Company had short-term borrowings of £5,000,000.
FINANCIAL HIGHLIGHTS
31 October 30 April
2015 2015
Net asset value per Ordinary
share (including revenue 173.70p 181.63p
reserves)
Net asset value per Ordinary
share (excluding all revenue 175.07p 182.25p
reserves)
Share price 158.25p 162.75p
Discount to net asset value 8.89% 10.40%
Total net assets (after
deduction of borrowings) £43.91m £45.92m
Total borrowings £5.00m £3.00m
Ongoing charges 1.32% 1.16%
TOTAL RETURN PERFORMANCE TO 31 OCTOBER 2015
6 months 1 year Since
% % launch
%
Net asset value* (4.4) 2.3 78.5
Share price ** (2.8) 4.8 58.3
MSCI World Index in (3.6) 5.4 137.8
Sterling**
FTSE All-Share Index** (5.7) 3.0 132.7
Sterling 3 month LIBOR +2%* 1.3 2.6 68.3
**
Sources:
* Based on initial NAV of 97.33p (after launch expenses).
** Bloomberg. Net income reinvested GBP.
*** Miton Asset Management Limited (Sterling 3 month LIBOR +2% at the
beginning of the accounting period).
ANNUAL GENERAL MEETING/GENERAL MEETING
In accordance with the Articles of Association, a continuation vote was put to
shareholders at the Annual General Meeting of the Company held on 9 September
2015 and approved. Over 67% of shareholders voted on this resolution, with 99%
voting in favour.
A General Meeting was held on the same date, at which proposals were approved
to amend the Articles of Association. The changes removed the requirement for
future continuation votes and instead shareholders will be offered the
opportunity to elect to exit the Company at three year intervals, through the
conversion of all or part of their holding of Ordinary shares into Realisation
shares.
As a result of the changes to the Articles, the management and performance fees
payable by the Company to the Manager have also been amended to reflect new fee
arrangements that would apply in respect of the share reorganisation that would
take place on the issue of Realisation shares. As this was a related party
transaction, a resolution was put to, and approved by, shareholders at the
General Meeting on 9 September 2015. Details of the fee changes are set out in
Note 9 below.
CHANGE OF NAME
The Directors believe that the Company's name should be simplified and more
accurately reflect the investment approach. Accordingly, with effect from 5
January 2016, the name of the Company was changed from Miton Worldwide Growth
Investment Trust PLC to Miton Global Opportunities plc. A change of name is
permitted by the Company's Articles of Association and does not require a
shareholder vote. The Company's ticker has changed to MIGO.
AIC SECTOR
With effect from January 2016, the AIC has introduced a new sector
classification: Flexible Investment. The definition for this sector is
"Companies whose policy allows them to invest in a range of asset types". Miton
Global Opportunities is one of the companies that has been reclassified into
this new sector.
INTERIM MANAGEMENT REPORT
for the period ended 31 October 2015
The period under review was a tough period for equity markets. During the
summer, the major indices fell to levels around 15% below where they had
reached in early April, most of the damage coming in August. The Company's net
asset value declined from 181.63p to 173.70p, a fall of 4.37%. This
incorporates the costs associated with the changes to our capital structure
which were approved by shareholders at our Annual General Meeting in September,
which amounted to 0.46p per Ordinary share. In response, our discount narrowed
modestly as our share price declined by 2.76%. During the corresponding period,
the FTSE 100 Index fell 8.61% whilst the MSCI World (Sterling) Index drifted
4.78% lower.
The very high level of leverage which exists in many corners of the financial
system leaves markets vulnerable to sudden sell offs. These will have no
obvious cause other than a collective loss of nerve. This was certainly the
case in August when the catalyst appeared to be a change of heart by the
Federal Reserve over an expected increase in interest rates. Similar rapid
declines are more than likely in the future. Therefore relatively little
mainstream equity exposure is retained within our portfolio.
The market in smaller closed ended funds has suffered from a further decline in
liquidity in recent months. This has been an unintended side effect of proposed
regulatory change. Such an environment increases the potential for pricing
inefficiencies to develop and provides a number of interesting opportunities
for us to exploit. Despite maintaining a cautious view about the general
direction of equity markets, we are fully invested.
Notwithstanding central banks retaining highly accommodative monetary policies,
notably in Europe and Japan, the global economy continues to be sluggish and
earnings growth remains unspectacular. Emerging markets were harshly treated as
investors fretted over China's slowdown and change of emphasis away from
industry towards a service-based economy. Whilst there are real challenges for
equity markets in countries such as Brazil, Turkey, Russia and of course China,
there seemed to be no account taken of the significantly varying fundamentals
which exist in countries labelled "Emerging". These all sold off together. Our
exposure to this area comes via The Establishment Investment Trust, which is
largely an Asian focused fund, Pacific Horizon, which is a play on disruptive
technologies within Asia, and India Capital Growth. Establishment's share price
fell nearly 10% during the summer but held up better than many of the local
indices and its peer group. India Capital Growth actually made a modest gain, a
sterling achievement in the circumstances. On the other hand, Pacific Horizon
fell sharply in line with the global technology sector.
"Alternatives" is a term which encompasses a wide range of asset classes from
solar farms to infrastructure projects and distressed debt. These markets are
far less liquid than equities and managers of these assets require the
protection from inflows and outflows that is provided by the closed ended
structure. It is likely that as time progresses "Alternatives" will represent a
much greater proportion of the sector. This creates an opportunity given that
valuing these assets is not as straightforward as in the case of a traditional
equity investment trust. This creates scope for anomalies to develop between
the stated net asset value and what we believe the portfolio could be sold for
in the open market. Within our portfolio, there are three areas where we
believe disposable values are greater than stated ones. These are: private
equity, residential property in Berlin and second-hand traded life policies. In
the case of private equity, the industry has raised substantial sums which now
need to find a home. A mature portfolio owned by a private equity investment
trust is in the sweet spot of a sellers' market. Our two Berlin specialist
funds are in the process of splitting up the apartment blocks within their
portfolio and selling individual flats as leasehold. The rental market in
Germany is highly regulated, which depresses the value of tenanted property.
Once "privatised", these flats command around double the value they previously
justified as a rented property. The stated net asset value of these funds is
arrived at by valuing assets as for rental occupation rather than privately
owned.
Five holdings accounted for the bulk of the difference between the general
decline in mainstream indices and the move in the value of our portfolio. These
were Rights and Issues Investment Trust, Real Estate Investors, Aurora
Investment Trust, Reconstruction Capital and Terra Catalyst Fund. In most
cases, the trigger for such a strong move was the belated recognition of
embedded value which had existed for some time. Conversely, Aurora Investment
Trust announced proposals to move the management contract, which was welcomed
by investors and was followed by a narrowing of the discount.
A number of other positions withstood the general decline and posted gains.
These included Better Capital PCC, Aseana Properties, Boussard & Gavaudan,
Chelverton Growth Trust, F&C Private Equity, Phoenix Spree Deutschland,
Taliesin Property Fund and Prospect Japan Fund.
Our modest exposure to mining continued to represent a drag on performance as
it again proved to be a sector that nobody wanted to own at any price and our
holdings typically declined by a third. Juridica Investments, a financier of
civil legal cases in the United States, had a bad day in court and the shares
subsequently fell sharply. Macau Property Opportunity Fund's shares suffered
from rapid deterioration in sentiment towards the former Portuguese colony. In
view of the Chinese anti-corruption drive, no mainland officials wish to be
seen in Macau. This has led to a drop in turnover in the region of a quarter,
however the development of a new betting strip destined to coincide with the
completion of a bridge from Hong Kong will create the need for around 40,000
new staff. This will have a significant effect on Macau where the total
population is currently only 650,000. This will create intense demand for
accommodation.
Japan also proved a drag on performance as investors questioned whether
Abenomics was running out of steam. We take the view that the change of
corporate attitudes in Japan is slow moving but irreversible. Since the Second
World War, shareholders have found themselves a long way down the pecking order
when it has come to sharing profits, often well behind stakeholders such as the
local community, suppliers, management and staff. Our call on the Tokyo market
relies on shareholders accessing a greater proportion of embedded profits
rather than a robust recovery in the Japanese economy.
Looking forward, the closed ended sector accounts for around a fifth of all
listings on the London Stock Exchange, yet these represent less than 4% of the
market's total assets under management. Some very large trusts such as Scottish
Mortgage and Alliance Trust, which individually have market capitalisations
well into the billions, make up a significant proportion of the total assets
under management. Therefore, it is not surprising that so many funds fall below
the radar and languish at deep discounts to the fundamental value of their
portfolios. In view of our own closed ended status, we are well positioned to
exploit such opportunities.
Nick Greenwood
Miton Asset Management Limited
7 January 2016
RISK MANAGEMENT
The principal risks facing the Company are substantially unchanged since the
date of the Annual Report for the year ended 30 April 2015 and continue to be
as set out in that report.
Risks faced by the Company include, but are not limited to, investment activity
and strategy risk (including discount risk and liquidity), financial risk
(including gearing), discount volatility and compliance with section 1158 of
the Corporation Tax Act 2010.
RESPONSIBILITY STATEMENT
The Directors confirm that to the best of their knowledge:
* the condensed set of financial statements has been prepared in accordance
with the Statement on Half-Yearly Financial Reports issued by the UK
Accounting Standards Board and gives a true and fair view of the assets,
liabilities and financial position of the Company; and
* the Half-Yearly Report includes a fair review of the information required
by:
1. DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of
important events that have occurred during the first six months of the
financial year and their impact on the condensed set of financial
statements, and a description of the principal risks and uncertainties for
the remaining six months of the year; and
2. DTR 4.2.8R of the Disclosure and Transparency Rules, being related party
transactions that have taken place in the first six months of the current
financial year and that have materially affected the financial position or
performance of the Company during the period, and any changes in the
related-party transactions described in the last Annual Report that could
do so.
Anthony Townsend
Chairman
7 January 2016
CONDENSED INCOME STATEMENT (unaudited)
for the period ended 31 October 2015
Six months to 31 October Six months to 31 October Year ended 30 April
2015 2014 2015
(audited)
Revenue Capital Total Revenue Capital Total Revenue Capital Total
Note £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Losses/(gains) on
investments at fair
value through
profit or loss 5 - (1,814) (1,814) - 565 565 - 3,509 3,509
Income 4 264 - 264 328 - 328 681 - 681
Management fee (108) - (108) (97) - (97) (197) - (197)
Exchange losses on
capital items - (2) (2) - (4) (4) - (22) (22)
Other expenses (301) - (301) (158) - (158) (320) - (320)
Return on ordinary
activities before
finance costs and
taxation (145) (1,816) (1,961) 73 561 634 164 3,487 3,651
Finance costs
Interest payable (44) - (44) (30) - (30) (60) - (60)
Return on ordinary
activities before
and after taxation (189) (1,816) (2,005) 43 561 604 104 3,487 3,591
Return per Ordinary
share pence pence pence pence pence pence pence pence pence
Basic and diluted (0.75) (7.18) (7.93) 0.17 2.22 2.39 0.41 13.79 14.20
The revenue and capital returns per Ordinary share are based on 25,279,985
shares, being the weighted average number of Ordinary shares in issue in the
six months to 31 October 2015 (six months to 31 October 2014: 25,279,985
shares; year ended 30 April 2015: 25,279,985 shares).
The total column of this statement is the profit and loss account of the
Company. The supplementary revenue and capital columns are prepared under
guidance issued by the Association of Investment Companies' Statement of
Recommended Practice.
All revenue and capital items in the above statement derive from continuing
operations. No operations were acquired or discontinued in the period.
There are no recognised gains or losses other than those passing through the
Income Statement and as a consequence no Statement of Total Recognised Gains
and Losses has been presented.
The notes form an integral part of these financial statements.
RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS (unaudited)
For the period ended 31 October 2015
Capital Share
Share redemption premium Special Capital Revenue
capital reserve account reserve reserve reserve Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Six months to
31 October 2015
At 30 April 2015 252 60 16,727 10,008 19,027 (157) 45,917
Net return for the - - - - (1,816) (189) (2,005)
period
Balance at 31 October 252 60 16,727 10,008 17,211 (346) 43,912
2015
Six months to
31 October 2014
At 30 April 2014 252 60 16,727 10,008 15,540 (261) 42,326
Net return for the - - - - 561 43 604
period
Balance at 31 October 252 60 16,727 10,008 16,101 (218) 42,930
2014
Year ended 30 April
2015 (audited)
Balance at 30 April 252 60 16,727 10,008 15,540 (261) 42,326
2014
Net return for the year - - - - 3,487 104 3,591
Balance at 30 April 252 60 16,727 10,008 19,027 (157) 45,917
2015
The notes form an integral part of these financial statements.
BALANCE SHEET (unaudited)
As at 31 October 2015
As at 31 October As at 31 As at 30 April
2015 October 2015
£'000 2014 (audited)
£'000 £'000
Fixed assets
Investments held at fair
value 47,763 44,091 46,940
through profit or loss
Current assets
Debtors and prepayments 131 30 411
Cash and short-term deposits 1,107 2,908 1,868
1,238 2,938 2,279
Creditors: amounts falling
due
within one year
Bank loan (5,000) (3,000) (3,000)
Other creditors (89) (1,099) (302)
(5,089) (4,099) (3,302)
Net current assets (3,851) (1,161) (1,023)
Net assets 43,912 42,930 45,917
Share capital and reserves
Share capital 252 252 252
Capital redemption reserve 60 60 60
Share premium account 16,727 16,727 16,727
Special reserve 10,008 10,008 10,008
Capital reserve 17,211 16,101 19,027
Revenue reserve (346) (218) (157)
Equity shareholders' funds 43,912 42,930 45,917
pence pence pence
Net asset value per Ordinary 173.70 169.82 181.63
share
Number of Ordinary shares
used for the calculation of 25,279,985 25,279,985 25,279,985
the net asset value
The notes form an integral part of these financial statements.
CASH FLOW STATEMENT (unaudited)
for the period ended 31 October 2015
Six months to Six months to Year ended
31 October 31 October 30 April
2015 2014 2015
Note (audited)
£'000 £'000 £'000
Net cash (outflow)/
inflow from 7 (180) 54 169
operating
activities
Servicing of
finance
Interest paid (46) (30) (60)
Capital expenditure
and financial
investment
Purchases of (8,290) (7,262) (18,652)
investments
Sales of 5,757 6,055 16,325
investments
Exchange losses on (4) (3) (9)
settlement
Net cash outflow
from capital
expenditure and (2,537) (1,210) (2,336)
financial
investment
Net cash outflow
before financing (2,763) (1,186) (2,227)
Financing
Revolving credit
facility drawn down 2,000 - -
Net cash inflow
from financing 2,000 - -
Decrease in cash 8 (763) (1,186) (2,227)
The notes form an integral part of these financial statements.
NOTES
1. Accounting policies
The financial statements are prepared in accordance with UK applicable
accounting standards and the Statement of Recommended Practice regarding the
Financial Statements of Investment Trust Companies and Venture Capital Trusts
("SORP") issued by the Association of Investment Companies in November 2014.
The Company has also adopted FRS 104, which applies to interim periods
commencing on or after 1 January 2015. The transition to FRS 104 has had no
impact on the previous reported financial position and financial performance.
With the exception of this, the financial statements have been prepared in
accordance with the accounting policies set out in the Annual Report and
Financial Statements of the Company for the year ended 30 April 2015.
2. Financial information
The above financial information does not constitute full statutory financial
statements as defined in Section 434 of the Companies Act 2006. The financial
information for the six months ended 31 October 2015 and 31 October 2014 has
not been audited or reviewed.
The information for the year ended 30 April 2015 has been extracted from the
latest published audited financial statements. Those statutory financial
statements have been filed with the Registrar of Companies and included the
report of the auditors, which was unqualified and did not contain a statement
under Sections 498(2) or (3) of the Companies Act 2006.
3. Going concern
After making enquiries, and having reviewed the portfolio, Balance Sheet and
projected income and expenditure for the next 12 months, the Directors have a
reasonable expectation that the Company has adequate resources to continue in
operation for the foreseeable future. The Directors have therefore adopted the
going concern basis in preparing these financial statements.
4. Income
Six months to Six months Year ended
31 October 2015 to 30 April
£'000 31 October 2015
2014 £'000
£'000
Income from investments
UK dividend income 158 244 374
Unfranked dividend income 98 76 290
Fixed interest income 8 8 16
264 328 680
Other income
Bank interest receivable - - 1
Total income 264 328 681
5. (Losses)/gains on investments
Six months to Six months to Year ended
31 October 31 October 30 April
2015 2014 2015
£'000 £'000 £'000
(Losses)/gains on sales
of investments (187) 1,080 2,618
Movement in investment
holding gains (1,627) (515) 891
(1,814) 565 3,509
6. Tax credit/charge on ordinary activities
The tax charge for the half year is £nil (31 October 2014: £nil; 30 April 2015:
£nil) based on an estimated effective tax rate of 0% for the year ending 30
April 2016. The estimated effective tax rate is 0% as investment gains are
exempt from capital gains tax owing to the Company's status as an investment
trust. As stated in the audited statutory financial statements, at 30 April
2015 the Company had surplus excess management expenses of £5,607,000 that are
available to offset future taxable revenue and therefore there is no liability
to corporation tax during the six months to 31 October 2015 (31 October 2014: £
nil; 30 April 2015: £nil).
7. Reconciliation of net return before finance costs and taxation to net cash
outflow from operating activities
Six months Six months Year ended
to to 30 April
31 October 31 October 2015
2015 2014 £'000
£'000 £'000
Net return before finance
costs and taxation (1,961) 634 3,651
Losses/(gains) on 1,814 (565) (3,509)
investments
Exchange losses on
capital items 2 4 22
Decrease in creditors and
accruals (22) (34) (7)
(Increase)/decrease in
debtors and accrued (13) 15 12
income
Net cash (outflow)/inflow
from operating activities (180) 54 169
8. Reconciliation of net cash flow to net funds
Six months Six months Year
to to ended
31 October 31 October 30 April
2015 2014 2015
£'000 £'000 £'000
Opening net funds (1,132) 1,095 1,095
Decrease in cash in (763) (1,186) (2,227)
period
Revolving credit facility
drawdown (2,000) - -
Exchange gains/(losses) 2 (1) -
Closing net funds (3,893) (92) (1,132)
Foreign At 31
At 30 Cash exchange October
April flows movement 2015
2015 £'000 £'000 £'000
£'000
Net funds are comprised
as follows:
Cash and short-term 1,868 (763) 2 1,107
deposits
Debt due within one (3,000) (2,000) - (5,000)
year
(1,132) (2,763) 2 (3,893)
9. Transactions with the Manager
Under the Listing Rules, the Manager is regarded as a related party of the
Company. Under the AIC SORP issued in January 2009, the Investment Manager is
not considered to be a related party of the Company. The amounts paid to the
Manager are shown in the Income Statement.
At the General Meeting held on 9 September 2015, shareholders approved changes
to the management fees and the performance fees payable by the Company to the
Manager to reflect new fee arrangements in respect of any share reorganisation
arising on the election by shareholders for the conversion of their Ordinary
shares into Realisation shares.
With effect from 9 September 2015, the management fee relating to the Ordinary
shares was amended so that it is calculated at the annual rate of 0.65% of the
adjusted market capitalisation of the Ordinary shares on the last business day
of each calendar month. The management fee relating to Realisation shares, when
these are in existence, will be calculated at an annual rate of 0.5% of the
adjusted market capitalisation of the Realisation shares on the last business
day of each calendar month.
A performance fee will be payable in respect of the realisation of assets in
the Realisation Pool, at a rate of 15% of all cash realised and returned to
holders of Realisation shares from the realisation of assets in the Realisation
Pool in excess of the hurdle.* The performance fee will become payable once the
aggregate net asset value of undistributed assets (including cash) remaining in
the Realisation Pool is less than 5% of the aggregate net asset value of the
assets in the Realisation Pool.
Where the Company as a whole moves onto a realisation basis, the performance
fee will be 15% of all cash realised from the realisation process in excess of
the hurdle* and will become payable once the aggregate net asset value of
undistributed assets (including cash) is less than 5% of the aggregate net
asset value of the Company on the relevant Reorganisation Date.
There will be no annual cap on the performance fees.
* the hurdle shall be an amount per share equivalent to interest at a rate
equal to 3 month sterling LIBOR on the Reorganisation Date plus 5% per annum,
measured from 9 September 2015 and calculated by reference to the net asset
value per Ordinary share as at that date, until the date when the aggregate net
asset value of undistributed assets (including cash) remaining in the relevant
pool is:
(a) where the Company operates a Continuation Pool and a Realisation Pool, less
than 5% of the aggregate net asset value of the assets in the Realisation Pool
on the relevant Reorganisation Date; or
(b) where the Company as a whole has moved onto realisation basis, less than 5%
of the aggregate net asset value of the Company on the relevant Reorganisation
Date.
10. Bank loan
The bank loan with The Royal Bank of Scotland is a £7,000,000 revolving credit
facility and bears interest at the rate of 1.35% over LIBOR on any drawn down
balance and 0.6% on any undrawn balance. The facility may be drawn down in
Sterling or other 'optional' currencies as approved by the lender.
The bank loan facility contains covenants which require that net borrowings
will not at any time exceed 25% of the adjusted net asset value, which shall at
all times be equal to or greater than £20,000,000. If the Company breaches
either covenant, then it is required to notify the Bank of any default and the
steps being taken to remedy it.
At 31 October 2015, the Company had drawn down £5,000,000 under the facility.
The facility will mature on 31 January 2016.
11. Fair value hierarchy
All investments are initially recognised and subsequently measured at fair
value. Changes in fair value are recognised in the Income Statement.
The methods of fair value measurement are classified into a hierarchy based on
reliability of the information used to determine the valuation.
Level - Fair value is measured based on quoted prices in an active market.
a
Level - Fair value is measured based on directly observable current market prices or
b indirectly being derived from market prices.
Level - i) Fair value is measured using a valuation technique that is based on data
c from an observable market; or
- ii) Fair value is measured using a valuation technique that is not based on
data from an observable market.
The table below sets out the Company's fair value hierarchy investments as at
31 October 2015.
Level a Level Level c (i) Level c Total
b (ii)
Opening book 41,192 558 376 3,116 45,242
cost
Opening
unrealised 3,830 77 (207) (2,002) 1,698
appreciation
Opening 45,022 635 169 1,114 46,940
valuation
Movements in the
period:
Purchase at cost 7,957 144 - - 8,101
Sales - proceeds (5,445) - - (19) (5,464)
Sales - realised
(losses)/gains
on sales (206) - - 19 (187)
Transfer from
level b to Level 37 (37) - - -
a
Transfer from
level c (i) to 65 - (65) - -
Level a
Transfer from
level c (i) to - - (311) 311 -
Level c (ii)
Transfer in
unrealised 21 - 207 (228) -
appreciation
(Decrease)/
increase in
unrealised (1,666) (28) - 67 (1,627)
appreciation
Closing 45,785 714 - 1,264 47,763
valuation
Closing book 43,600 665 - 3,427 47,692
cost
Closing
unrealised 2,185 49 - (2,163) 71
appreciation
Closing 45,785 714 - 1,264 47,763
valuation
PORTFOLIO VALUATION AS AT 31 OCTOBER 2015
Fair
value % of
Type of security valuation portfolio
£'000
India Capital Growth Fund* Ordinary shares 2,717 5.69
Taliesin Property Fund* Ordinary shares 2,504 5.24
Establishment Investment Trust Ordinary shares 2,317 4.85
(The)
Alternative Asset Opportunities Preference shares 2,257 4.73
†
Pantheon International Redeemable shares 2,239 4.69
Real Estate Investors* Ordinary shares 2,003 4.19
JPMorgan Japanese Smaller Ordinary shares 1,975 4.14
Companies Investment Trust
Better Capital PCC† Ordinary shares 1,906 3.99
Rights & Issues Investment Capital shares 1,691 3.54
Trust
Alpha Real Trust Ordinary shares 1,645 3.44
New Star Investment Trust Ordinary shares 1,642 3.44
Marwyn Value Investors† Ordinary shares 1,541 3.23
Aurora Investment Trust† Ordinary shares 1,523 3.19
Prospect Japan Fund Ordinary shares 1,496 3.13
Macau Property Opportunities Ordinary shares 1,487 3.11
Fund†
Phoenix Spree Deutschland Ordinary shares 1,372 2.87
Phaunos Timber Fund (The) Ordinary shares 1,360 2.85
Monks Investment Trust Ordinary shares 1,165 2.44
EPE Special Opportunities* Ordinary shares 1,105 2.31
Japan Residential Investment Ordinary shares 1,004 2.10
Company*
F&C Private Equity Ordinary shares 944 1.98
Henderson Alternative Ordinary shares 877 1.84
Strategies Trust
Pacific Horizon Investment Ordinary shares 774 1.62
Trust
Artemis Alpha Trust Ordinary shares 773 1.62
Atlantis Japan Growth Fund Ordinary shares 750 1.57
Invesco Perpetual Japan Fund Open Ended Fund 714 1.50
Geiger Counter Ordinary shares 694 1.45
Aseana Properties† Ordinary shares 682 1.43
RENN Universal Growth Ordinary shares 677 1.42
Investment Trust†
Terra Catalyst Fund† Ordinary shares 622 1.30
Eredene Capital† Ordinary shares 556 1.16
Private Equity Investor† Ordinary shares 555 1.16
Sanditon Investment Trust Ordinary shares 542 1.14
Boussard & Gavaudan Ordinary shares 518 1.09
Juridica Investments* Ordinary shares 455 0.95
Chelverton Growth Trust Ordinary shares 353 0.74
Middlefield Canadian Income PCC Preference shares 326 0.68
Baker Steel Resources Trust Ordinary shares 322 0.67
Global Fixed Income Realisation Ordinary shares 299 0.63
†
New City Energy Ordinary shares 273 0.57
EPE Special Opportunities 7.5% Convertible Loan 202 0.42
31/12/15* Notes
Reconstruction Capital II* Ordinary shares 188 0.39
St Peter Port Capital*† Ordinary shares 143 0.30
Camper & Nicholsons Marina Ordinary shares 132 0.28
Investments*
Miton UK MicroCap Trust Ordinary shares 105 0.22
India Capital Growth Fund* Subscription 69 0.14
shares
Duke Royalty (previously Ordinary shares 64 0.13
Praetorian Resources)*
Auctus Growth Ordinary shares 62 0.13
Origo Partners*† Ordinary shares 48 0.10
Aurora Russia* Ordinary shares 40 0.08
BlackRock Absolute Return Ordinary shares 31 0.07
Strategies
Global Resources Investment Ordinary shares 13 0.03
Trust
Tau Capital*† Ordinary shares 11 0.02
Absolute Return Trust† Preference shares - -
Dexion Absolute† Ordinary shares - -
Douglasbay Capital*† Ordinary shares - -
International Oil and Gas Preference shares - -
Technology†
Jupiter Second Split Trust† Ordinary shares - -
PSource Structured Debt† Ordinary shares - -
Sofia Property Fund*† Ordinary shares - -
Thames River Multi-Hedge† Preference shares - -
Total 47,763 100.00
* AIM/ISDX listed.
† In liquidation, in a process of realisation or has a fixed life.
SHAREHOLDER INFORMATION
Share dealing
Shares can be traded through a stockbroker or other authorised intermediary.
The Company's Ordinary shares are traded on the London Stock Exchange. The
Company's shares are fully qualifying investments for Individual Savings
Accounts ("ISAs").
Share register enquires
The register for the Ordinary shares is maintained by Capita Asset Services. In
the event of queries regarding your holding, please contact the Registrar on
0871 664 0300 (calls cost 12p per minute plus network extras; lines are open
9.00am to 5.30pm, Monday to Friday) (from outside the UK: +44 (0) 208 639 3399)
or email: shareholderenquiries@capita.co.uk. Changes of name and/or address
must be notified in writing to the Registrar: Shareholder Services, Capita
Asset Services, The Registry, 34 Beckenham Road, Beckenham, Kent BR3 4TU, or
via the shareholder portal at www.capitashareportal.com.
Share capital and net asset value information
Ordinary 1p shares 25,279,985
SEDOL number 3436594
ISIN number GB0034365949
Bloomberg symbol MIGO
The Company releases its net asset value per Ordinary share to the London Stock
Exchange on a daily basis.
Website: www.mitongroup.com/migo
Share prices
The mid-market prices are quoted daily in the Financial Times under 'Investment
Companies'.
Annual and Half-Yearly Reports
Copies of the Annual and Half-Yearly Reports are available from the Company
Secretary and are available on the Company's website.
Investment Manager: Miton Asset Management Limited
The Company's Investment Manager is Miton Asset Management Limited, a wholly
owned subsidiary of Miton Group plc. Miton Group is listed on the AIM market
for smaller and growing companies.
As at 31 August 2015, the Group had £2.4 billion of assets under management.
Investor updates in the form of monthly factsheets are available from the
Company's website, www.mitongroup.com/migo.
Association of Investment Companies
The Company is a member of the Association of Investment Companies.
DIRECTORS AND ADVISERS
Directors (all non-executive) Registrar and Transfer Office
Anthony Townsend (Chairman) Capita Asset Services
James Fox The Registry
Michael Phillips 34 Beckenham Road
Hugh van Cutsem Beckenham
Kent BR3 4TU
All of:
Beaufort House Tel: 0871 664 0300
51 New North Road (calls will cost 12p per minute plus
Exeter EX4 4EP network charges)
Fax: 020 8639 2342
Email: shareholderenquiries@capita.co.uk
Website: www.capitaregistrars.com
Company Secretary and Registered Stockbroker and Financial Adviser
Office
Capita Sinclair Henderson Limited Numis Securities Limited
trading as, The London Stock Exchange Building
Capita Asset Services - Fund 10 Paternoster Square
Solutions London EC4M 7LT
Beaufort House
51 New North Road
Exeter EX4 4EP
Tel: 01392 477 500
Alternative Investment Fund Manager Banker and Custodian
Miton Trust Managers Limited Bank of New York Mellon
Paternoster House One Canada Square
65 St Paul's Churchyard London E14 5AL
London EC4M 8AB
Investment Manager Depositary
Miton Asset Management Limited BNY Mellon Trust & Depositary (UK)
Paternoster House Limited
65 St Paul's Churchyard 160 Queen Victoria Street
London EC4M 8AB London EC4V 4LA
Website: www.mitongroup.com
Tel: 020 3714 1525
Independent Auditor
Grant Thornton UK LLP
30 Finsbury Square
London EC2P 2YU
Miton Global Opportunities plc
An investment company as defined under Section 833 of the Companies Act 2006
Registered in England and Wales No.5020752
END
Neither the contents of the Company's website nor the contents of any website
accessible from hyperlinks on this announcement (or any other website) is
incorporated into, or forms part of, this announcement.
MITON GLOBAL OPPORTUNITIES PLC - Half-yearly Report
January 07, 2016 at 10:16 am EST
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© PRNewswire - 2016
