Majedie Investments PLC

Half-Yearly Financial Report

31 March 2021

 

The Half-Yearly Financial Report for the six months ended 31 March 2021 can be found on the Majedie Investments PLC website:

https://www.majedieinvestments.com/reporting 

 

Financial Highlights

           

	Half Year ended 31 March 2021
Total shareholder return (including dividends):	+38.0%
Net asset value (NAV) total return (debt at par including dividends):	+15.9%
NAV total return (debt at fair value including dividends):	+17.1%
NAV per share (debt at par value):	280.2p
NAV per share (debt at fair value):	273.3p
Revenue Return per share:	5.9p
Interim Dividend:	4.4p
Directors' valuation of investment in Majedie Asset Management Limited:	£25.3m
Total assets*:	£169.3m
* Total assets are defined as total assets less current liabilities.

 

Investment Objective and Policy Statement

 

Investment Objective

 

The Company's investment objective is to maximise total shareholder return whilst increasing dividends by more than the rate of inflation over the long term.

 

General

The Company invests principally in securities of publicly quoted companies worldwide and in funds managed by its investment manager, though it may invest in unquoted securities up to levels set periodically by the Board, including its investment in Majedie Asset Management Limited (MAM). Investments in unquoted securities, other than those managed by its investment manager or made prior to the date of adoption of this investment policy, (measured by reference to the Company's cost of investment) will not exceed 10% of the Company's gross assets.

 

Risk Diversification

Whilst the Company will at all times invest and manage its assets in a manner that is consistent with spreading investment risk, there will be no rigid industry, sector, region or country restrictions. The overall approach is based on an analysis of global economies sector trends with a focus on companies and sectors judged likely to deliver strong growth over the long term. The number of investments held, together with the geographic and sector diversity of the portfolio, enable the Company to spread its risks with regard to liquidity, market volatility, currency movements and revenue streams.

 

The Company will not invest in any holding that would, at the time of investment, represent more than 15% of the value of its gross assets save that the Company may invest up to 25% of its gross assets in any single fund managed by its investment manager where the Board believes that the investment policy of such funds is consistent with the Company's objective of spreading investment risk.

 

The Company may utilise derivative instruments including index-linked notes, contracts for difference, covered options and other equity-related derivative instruments for efficient portfolio management and investment purposes.

 

Any use of derivatives for investment purposes will be made on the basis of the same principles of risk spreading and diversification that apply to the Company's direct investments, as described above.

 

Asset Allocation

The assets of the Company will be allocated principally between investments in publicly quoted companies worldwide, in investments intended to provide an absolute return (in each case either directly or through other funds or collective investment schemes managed by the Company's investment manager) and the Company's investment in MAM itself.

 

Benchmark

The Company does not have one overall benchmark, rather each distinct group of assets is viewed independently. Any investments made into funds managed by the Company's investment manager will be measured against the benchmark or benchmarks, if any, whose constituent investments appear to the Company to correspond most closely to those investments. It is important to note that in all cases investment decisions and portfolio construction are made on an independent basis. The Board however sets various specific portfolio limits for stocks and sectors in order to restrict risk levels from time to time, which remain subject to the investment restrictions set out in this section.

 

Gearing

The Company uses gearing currently via long term debentures. The Board has the ability to borrow up to 100% of adjusted capital and reserves. The Board also reviews the level of net gearing (borrowings less cash) on an on-going basis and sets a range at its discretion as appropriate. The Company's current debenture borrowings are limited by covenant to 66 2/3%, and any additional indebtedness is not to exceed 20%, of adjusted capital and reserves.

 

Chief Executive's Report

 

In the six months ended 31 March 2021 the NAV at par and the NAV at FV (net asset value with debt at par and at fair value) rose by 15.9% and 17.1% respectively, on a total return basis. The share price rose by 38.0%  over the period, also on a total return basis. Over the six months the FTSE All-Share index rose by 18.5% and the MSCI All Country Index rose by 12.4% in sterling terms.

 

Stock markets, having consolidated their recovery from the March 2020 lows, rallied strongly following the announcement of successful vaccine trials in November 2020 and continued into 2021 as the vaccine programme was rolled out. Market leadership shifted away from Technology and Growth stocks which had dominated the market as beneficiaries of lockdowns and low interest rates. Markets were led by more cyclical areas of the market which had been overlooked as investors focussed on companies that will benefit from economies opening up. Ongoing fiscal and monetary measures globally have also helped restore confidence to equity markets. It is encouraging that all the Majedie Asset Management Funds, in which the Company is invested at 31 March 2021, have outperformed their respective index benchmarks.

 

However, the Company has been informed by Majedie Asset Management (MAM) that it has received notification that St. James's Place has taken the decision to move to a more style specific investment approach. Therefore, after ten years as client, they have decided to remove their segregated mandates from MAM. The Company remains confident in the flexible investment style of MAM that has generated excellent performance over the long term and particularly over the last twelve months across its fund range. The MAM valuation set out later in this report fully reflects the impact on management fees that will result from the reduction in assets under management from £8.0bn to £6.4bn.

 

Results and Dividends

The Company had a capital gain for the six months to 31 March 2021 of £17.8m despite a reduction in value for the Company's holding in MAM from £31.0m to £25.3m, excluding dividends received.

 

Total income received from investments was £3.7m compared to £4.0m in the six months to 31 March 2020. The dividend received from MAM was £2.9m, the same as in the six months to 31 March 2020 while the income from the MAM Funds decreased by £0.3m. Total administration and management fees were unchanged at £0.8m and finance costs of £0.8m were also unchanged.

 

The net revenue return after tax was £3.1m compared to £3.4m in the six months to 31 March 2020.

 

The Board has declared an interim dividend of 4.4p (2020: 4.4p) which will be paid on 18 June 2021 to shareholders on the register on 4 June 2021.

 

Asset Allocation

The Company invests through a number of equity investment strategies, across all geographies, managed by MAM, the highly regarded boutique fund manager that the Company seeded in 2003. It retains an equity holding in MAM of 17.2%. The Company has no overall benchmark; rather each fund has its own benchmark and it is expected that performance will be generated by stock picking at the fund level. The monthly factsheets of the relevant MAM Funds can be found on the Company's website together with the monthly factsheets of the Company itself which show the allocation between the funds and the top twenty holdings on a look through basis. The Company's total assets at 31 March 2021 were £169.3m as defined above.

 

There were no sales of MAM shares over the period. In the six months to 31 March 2021, in order to consolidate the Company's asset allocation, the board took the decision to redeem its holdings in the UK Income Fund and US Equity Fund and reinvested the proceeds into the UK Equity Segregated Portfolio and Global Equity Fund respectively. The reallocation has reduced the allocation to the US equity market and increased the exposure to Emerging Markets. The UK equity exposure is broadly unchanged.

 

Allocation of Total Assets at 31 March 2021

 

	Value £000s	%of Total Assets
UK Equity Segregated Portfolio	61,469	36.3
Global Equity Fund	42,664	25.2
International Equity Fund	13,473	8.0
Tortoise Fund	22,726	13.4
MAM	25,310	14.9
Net cash/realisation portfolio*	3,697	2.2
Total Assets	169,339	100.0

 

*Net cash and the realisation portfolio do not include cash held in the UK Equity Segregated Portfolio of MAM funds.

 

Investment Performance

 

It is particularly heartening that all funds in which the Company was invested, at 31 March 2021, have outperformed their respective benchmarks in the last six months as well as over the last year, given the volatility of markets and style rotation. It is a sound endorsement of MAM's flexible investment process built on fundamental analysis rather than more binary style processes. The Company's underlying portfolio is diverse and includes many different investment themes.

 

The Tortoise Fund, in particular, after a slow few years, has navigated recent market conditions extremely well. Having recognised the undervaluation of cyclical companies in the summer of 2020 it ran a significant net long position whilst retaining a low gross exposure to manage overall risk. In recent months to protect the downside the managers have taken out short futures positions on the S&P 500 and NASDAQ 100 indices.

 

 

	6 months to 31 March 2021			Since MI invested (per annum)
	% Fund return	% Benchmark return	% Relative performance	% Fund return	% Benchmark return	% Relative performance
UK Equity Segregated Portfolio	18.7	18.5	0.2	3.6	4.4	(0.8)
UK Income Fund	16.3	17.4	(1.1)	3.5	4.3	(0.8)
Global Equity Fund	19.5	12.4	7.1	14.9	12.5	2.4
International Equity Fund	16.8	13.4	3.4	29.1	8.3	20.8
US Equity Fund	8.5	4.7	3.8	14.4	15.5	(1.1)
Tortoise Fund	41.5			2.7

 

Notes:

All Fund returns are quoted in Sterling, net of fees.

The initial investment in the UK Equity Segregated Portfolio was made on 22 January 2014.

The initial investment in the UK Income Fund was made on 29 January 2014 and the total investment was redeemed on 6 January 2021. The funds were transferred to the UK Equity Segregated Portfolio.

The initial investment in the Global Equity Fund was made on 30 June 2014.

The initial investment in the International Equity Fund was made on 12 December 2019.

The initial investment in the US Equity Fund was made on 27 June 2014 and the total investment was redeemed on 3 December 2020. The Funds were transferred to the Global Equity Fund.

The initial investment in the Tortoise Fund was made on 29 January 2014.

 

Majedie Asset Management

The Company, having taken external advice has adopted a valuation policy for its holding in MAM that annualises the most recent quarterly earnings of MAM and applies the median peer group price earnings multiple with an unlisted liquidity discount of 20% which the Directors may adjust to reflect market conditions. Performance fee multiples are further discounted by 50%. Surplus net assets are then added after deducting 200% of Regulatory Capital.

 

In the six months to 31 March 2021 MAM's AUM declined from £8.1bn to £8.0bn, reflecting higher markets but a net outflow of funds. The outflow of funds is mainly due ongoing derisking by defined benefit pension schemes.

 

In order to reflect the recent notification of a future outflow of funds from St James's Place, the Board believe it to be prudent to recognise the future reduction in management fees in the valuation of the Company's holding in MAM at 31 March 2021.

 

The valuation methodology is as follows-:

	3 months to 31 December 2020	3 months to 31 March including subsequent outflows
Earnings after tax (last 3 months, annualised)	£11.7m	£8.3m*
Peer group median PE multiple	15.4	14.7
Liquidity discount	20%	20%
Peer Group PE median multiple after liquidity discount	12.3	11.8
Performance fee earnings after tax (12 month rolling)	£2.0m	£2.2m
50% of peer group median PE multiple	7.7	7.4
50% of peer group median PE multiple after liquidity discount	6.2	5.9
Surplus net assets having deducted 200% of Regulatory Capital	£33.4m	£36.4m
Valuation of MAM	£189.7m	£147.3m
Valuation of the Company's 17.2% holding in MAM	£32.6m	£25.3m

 

*adjusted to reflect the notified outflow by St James's Place

 

Development of Net Asset Value

The chart below outlines the change in the Company's Net Asset Value (debt at par) over the six months ended 31 March 2021. In aggregate, the NAV has increased by £17.2m, comprised of net investment gains at the MAM funds, including the UK Equity Segregated Portfolio, of £25.3m, a net write-down of the investment in MAM by £2.8m, expenses and interest of £1.6m and dividends paid to shareholders of £3.7m.

 

Nav 30.09.20	£131.3m
UK Equity Segregated Portfolio	£8.4m
Tortoise Fund	£6.7m
UK Income Fund	£1.5m
Global Equity Fund	£6.0m
International Equity Fund	£2.0m
US Equity Fund	£0.7m
MAM	(£2.8m)
Admin Costs & Other	(£0.8m)
Finance Costs	(£0.8m)
Dividend Paid	(£3.7m)
NAV 31.03.21	£148.5m

 

MAM Funds

The UK Equity Fund launched in March 2003. Its objective is to produce a total return in excess of the FTSE All-Share Index after costs over any five year period through a diversified portfolio of predominantly UK Equities with the flexibility to invest up to 20% of assets in shares listed outside the UK and incorporating a dedicated investment in smaller companies. Since its inception to 31 March 2021 it has returned 10.4% per annum net of fees, with a relative outperformance of 2.4% against its benchmark. The Company's assets are invested in a segregated portfolio which is managed pari passu to the UK Equity Fund.

 

The most significant positive and negative sector contributors to the relative performance of the UK Equity Segregated Portfolio for the six months to 31 March 2021, in %

 

Industrials	1.6	Overweight
Consumer Staples	0.7	Overweight
Utilities	0.5	Underweight
Health Care	0.2	Underweight
Real Estate	0.2	Underweight
Financials	0
Consumer Discretionary	-0.1	Overweight
Telecommunications	-0.1	Underweight
Technology	-0.1	Overweight
Energy	-0.9	Underweight
Basic Materials	-1.5	Underweight

 

The most significant positive and negative stock contributors to the relative performance of the UK Equity Segregated Portfolio for the six months to 31 March 2021, in %

 

GlaxoSmithKline	0.9	Underweight
NatWest	0.9	Overweight
Electrocomponents	0.5	Overweight
AstraZeneca	0.5	Underweight
Reckitt Benckiser	0.4	Underweight
Royal Dutch Shell	-0.5	Underweight
Roche	-0.6	Overweight
Fevertree Drinks	-0.6	Overweight
Barrick Gold	-0.6	Overweight
HSBC	-0.8	Underweight

 

The table below shows the principal overweight and underweight sector positions of the UK Equity Segregated Portfolio at 31 March 2021 relative to the FTSE All-Share Index, in %

Industrials	7.4	Overweight
UK Smaller Companies	7.3	Overweight
Consumer Discretionary	5.4	Overweight
Technology	2.5	Overweight
Telecommunications	-0.2	Underweight
Consumer Staples	-0.6	Underweight
Health Care	-1.0	Underweight
Utilities	-1.7	Underweight
Real Estate	-3.0	Underweight
Energy	-3.7	Underweight
Basic Materials	-5.1	Underweight
Financials	-8.8	Underweight

 

The table below shows the principal overweight and underweight stock positions of the UK Equity Segregated Portfolio at 31 March 2021 relative to the FTSE All-Share Index, in %

 

Electrocomponents	2.7	Overweight
NatWest	2.4	Overweight
Fevertree Drinks	2.2	Overweight
AVEVA	2.2	Overweight
Tesco	2.1	Overweight
Prudential	-1.8	Underweight
BP	-2.6	Underweight
British American Tobacco	-2.8	Underweight
GlaxoSmithKline	-2.8	Underweight
HSBC	-3.1	Underweight

 

 

The Global Equity Fund was launched in June 2014. Its objective is to produce a total return in excess of the MSCI All Country World Index after costs over any five year period through investment in a diversified portfolio of global equities.

 

The most significant positive and negative sector contributors to the relative performance of the Global Equity Fund for the six months to 31 March 2021, in %

 

Information Technology	4.0	Underweight
Consumer Discretionary	1.7	Overweight
Consumer Staples	1.6	Underweight
Industrials	1.6	Overweight
Communication Services	0.5	Overweight
Health Care	0.3	Overweight
Utilities	0.3	Underweight
Materials	0.2	Overweight
Real Estate	0.2	Underweight
Energy	-0.5	Underweight
Financials	-1.6	Underweight

 

The most significant positive and negative stock contributors to the relative performance of the Global Equity Fund for the six months to 31 March 2021, in %

 

ON Semiconductor	0.8	Overweight
NXP Semiconductors	0.7	Overweight
A.P. Moller - Maersk	0.7	Overweight
US Foods	0.6	Overweight
Samsung SDI	0.6	Overweight
Tesla	-0.2	Underweight
Electronic Arts	-0.3	Overweight
New Oriental Education & Technology	-0.3	Overweight
Seagen	-0.5	Overweight
Barrick Gold	-0.8	Overweight

 

The table below shows the principal overweight and underweight sector positions of the Global Equity Fund at 31 March 2021 relative to the MSCI All Country Index, in %

 

Communication Services	9.5	Overweight
Consumer Discretionary	6.3	Overweight
Materials	1.8	Overweight
Industrials	0.7	Overweight
Health Care	0.6	Overweight
Information Technology	-1.6	Underweight
Real Estate	-2.6	Underweight
Energy	-2.7	Underweight
Utilities	-2.9	Underweight
Financials	-5.0	Underweight
Consumer Staples	-5.4	Underweight

 

The table below shows the principal overweight and underweight stock positions of the Global Equity Fund at 31 March 2021 relative to the MSCI All Country Index, in %

 

SoftBank	2.7	Overweight
A.P. Moller - Maersk	2.7	Overweight
Facebook	2.5	Overweight
Fiserv	2.4	Overweight
NXP Semiconductors	2.4	Overweight
Alibaba	-0.7	Underweight
Johnson & Johnson	-0.7	Underweight
JPMorgan Chase	-0.8	Underweight
Tesla	-0.8	Underweight
Apple	-3.4	Underweight

 

The International Equity Fund was launched in December 2019. Its objective is to produce a total return in excess of the MSCI All Country World ex US Index over any five year period after costs. It is a high conviction portfolio which captures developed and emerging markets opportunities and can invest up to 10% in US equities.

 

The most significant positive and negative sector contributors to the relative performance of the International Equity Fund for the six months to 31 March 2021, in %

 

Information Technology	2.2	Overweight
Industrials	1.3	Underweight
Communication Services	1.3	Overweight
Consumer Staples	0.7	Underweight
Health Care	0.6	Overweight
Consumer Discretionary	0.3	Overweight
Materials	0.2	Overweight
Utilities	0.2	Underweight
Real Estate	0.1	Underweight
Energy	-0.5	Underweight
Financials	-1.7	Underweight

 

The most significant positive and negative stock contributors to the relative performance of the International Equity Fund for the six months to 31 March 2021, in %

 

Samsung SDI	1.3	Overweight
Anglo American	1.2	Overweight
Sociedad Quimica y Minera de Chile	1.1	Overweight
Alibaba	1.0	Underweight
Copa	0.8	Overweight
Ionis Pharmaceuticals	-0.5	Overweight
Kao	-0.5	Overweight
Novozymes	-0.5	Overweight
New Oriental Education & Technology	-0.9	Overweight
Barrick Gold	-1.1	Overweight

 

The table below shows the principal overweight and underweight sector positions of the International Equity Fund at 31 March 2021 relative to the MSCI All Country Index ex US, in %

 

Health Care	11.4	Overweight
Consumer Discretionary	9.5	Overweight
Communication Services	4.3	Overweight
Materials	2.8	Overweight
Information Technology	2.7	Overweight
Real Estate	-2.6	Underweight
Utilities	-3.2	Underweight
Industrials	-3.9	Underweight
Energy	-4.5	Underweight
Consumer Staples	-6.9	Underweight
Financials	-11.2	Underweight

 

The table below shows the principal overweight and underweight stock positions of the International Equity Fund at 31 March 2021 relative to the MSCI All Country Index ex US, in %

 

Prosus	5.1	Overweight
Anglo American	4.2	Overweight
SoftBank	4.2	Overweight
Samsung SDI	3.9	Overweight
MercadoLibre	3.5	Overweight
Roche	-0.9	Underweight
ASML	-0.1	Underweight
Nestle	-1.2	Underweight
Alibaba	-1.6	Underweight
Tencent	-1.7	Underweight

 

The Tortoise Fund is a global absolute return product which was launched in August 2007. Its objective is to achieve positive absolute returns in all market conditions, through investment primarily in long and synthetic short positions in equities over rolling three year periods, with less volatility than a conventional long only equity fund. Since inception to 31 March 2021 the Tortoise Fund has returned 7.2% per annum net of fees.

 

The most significant positive and negative sector contributors to the performance of the Tortoise Fund for the six months to 31 March 2021, in %

 

Financials	8.6	Long
Consumer Discretionary	7.0	Long
Industrials	5.7	Long
Energy	4.0	Long
Information Technology	3.9	Long
Materials	3.7	Long
Communication Services	3.6	Long
Consumer Staples	1.3	Long
Real Estate	0.6	Long
Utilities	0.6	Long
Health Care	-0.5	Long
US Future Short	-1.2	Short

 

The most significant positive and negative stock contributors to the performance of the Tortoise Fund for the six months to 31 March 2021, in %

 

Freeport-McMoRan	2.7	Long
Banco Santander	2.0	Long
ON Semiconductor	1.9	Long
Daimler	1.8	Long
NatWest	1.7	Long
Sanofi	-0.2	Long
Viatris	-0.3	Long
Nokia	-0.3	Long
Barrick Gold	-0.4	Long
Gold Fields	-0.7	Long

 

The Table below shows the principal long and short sector positions of the Tortoise Fund at 31 March 2021, in %

 

Financials	13.5	Long
Consumer Discretionary	11.6	Long
Health Care	10.8	Long
Materials	10.4	Long
Information Technology	9.0	Long
Communication Services	8.5	Long
Energy	7.7	Long
Industrials	7.0	Long
Consumer Staples	5.5	Long
Real Estate	3.9	Long
Utilities	1.3	Long
US Future Short	-63.7	Short

 

The Table below shows the principal long and short stock positions of the Tortoise Fund at 31 March 2021, in %

 

Volkswagen	2.7	Long
Freeport-McMoRan	2.6	Long
Banco Santander	2.5	Long
Citigroup	2.5	Long
Daimler	2.5	Long
Union Pacific	-0.9	Short
Home Depot	-0.1	Short

 

As noted in the Report and Accounts at 30 September 2020 the Company and its fund manager provided a detailed report on Responsible Capitalism and its approach to ESG. Additional information can be found on the Company's website under the Portfolio & Performance tab. A further update will be given in the full year Report and Accounts.

 

Discount

The Board continues to monitor the Company's discount to NAV and will take action when appropriate. The Company has not bought back any shares during the period and notes that Aviva plc has reduced its holding from 12.98% to below 3%.

 

Outlook

Stock markets have reacted positively to the improving economic outlook due to the massive levels of fiscal and monetary stimulus to help support economies through lockdowns. In addition, the effective roll out of the vaccine programmes in the developed world has boosted confidence from investors that some form of a return to normality will be forthcoming. Growth figures are being revised upwards and it is notable that following corporate Q1 results in the US and Europe the proportion of companies beating forecasts as well as their magnitude is the highest for a decade. Investors' concerns have shifted to rising inflation and interest rates from deflation and negative interest rates. The rise in US Treasury bond yields, albeit from historic lows reflect these concerns. For stock markets this has caused a major rotation away from growth at any cost to previously unloved cyclical companies. Markets are expected to remain volatile having recovered so strongly from March 2020. This market background should favour fund managers with a proven flexible investment process such as MAM. Their investment returns since the outbreak of the pandemic reinforces our confidence that MAM will gain assets under management as investment performance tends to be a leading indicator of asset growth.

 

 

William Barlow

Chief Executive
For and on behalf of the Board

 

25 May 2021

 

 

Fund Analysis

at 31 March 2021

 

Geographic and Sector Analysis at 31 March 2021

 

	%  Europe	% United Kingdom	% Emerging Markets	% Asia Pacific	% North America	% Cash	% Total
Basic Materials	0.2	2.5	1.1		1.9		5.7
Consumer Goods		7.1		0.1	1.0		8.2
Consumer Services	2.2	8.9	2.4	0.4	6.7		20.6
Financials	1.3	7.3	0.8	0.5	2.5		12.4
Real Estate		0.1			0.6		0.7
Health Care	4.1	2.8		0.6	3.7		11.2
Industrials	2.5	8.9		0.8	2.9		15.1
Oil & Gas	0.9	1.8			0.4		3.1
Technology	0.5	2.6	5.1	0.2	6.9		15.3
Telecommunications	1.9	0.9		1.3	0.1		4.2
Utilities		0.5					0.5
Cash						3.0	3.0
	13.6	43.4	9.4	3.9	26.7	3.0	100.0
Futures*					(10.3)

 

Notes:

The assets analysed above are the net exposure of the UK Equity Segregated Portfolio, Global Equity Fund, International Equity Fund and the Tortoise Fund. The Tortoise Fund, as an absolute return fund, invests through CFDs, futures and the net exposure of the fund is shown in the table. The aggregate of the funds represents a total of 82.9% of the Company's total assets.

 

Exposures are classified by the stock exchange on which the underlying is listed and by the relevant FTSE

sector classification.

 

* The Tortoise Fund has short futures positions on the S&P 500 and NASDAQ 100 Indices.

 

Thirty Largest Portfolio Holdings 

at 31 March 2021

 

Company	Fair Value £000	% of Total Assets
Majedie Asset Management Ltd	25,310	14.9%
Royal Dutch Shell PLC	2,390	1.4%
AstraZeneca PLC	2,293	1.4%
A.P. Moller - Maersk A/S	2,234	1.3%
NatWest Group PLC	2,172	1.3%
Unilever PLC	2,129	1.3%
Anglo American PLC	2,086	1.2%
Tesco PLC	2,030	1.2%
SoftBank Group Corp	1,881	1.1%
RELX PLC	1,836	1.1%
Electrocomponents PLC	1,799	1.1%
NXP Semiconductors NV	1,668	1.0%
Taiwan Semiconductor Manufacturing Co., Ltd.	1,563	0.9%
Royal KPN NV	1,547	0.9%
Facebook, Inc.	1,541	0.9%
3i Group PLC	1,517	0.9%
Amazon.com, Inc.	1,466	0.9%
AVEVA Group PLC	1,437	0.8%
Fevertree Drinks PLC	1,374	0.8%
Ashtead Group PLC	1,360	0.8%
Samsung SDI Co., Ltd	1,343	0.8%
St. James's Place PLC	1,299	0.8%
Weir Group PLC	1,229	0.7%
QinetiQ Group PLC	1,220	0.7%
Serco Group PLC	1,208	0.7%
Samsung Electronics Co., Ltd.	1,163	0.7%
Alphabet Inc.	1,153	0.7%
MercadoLibre, Inc.	1,118	0.7%
Reckitt Benckiser Group PLC	1,105	0.7%
Bellway PLC	1,100	0.6%
Total	71,571	42.3%

 

The assets analysed above show the Company's largest thirty holdings on a look through basis across all funds. 

 

Interim Management Report                

 

The important events that have occurred during the period under review, the key factors influencing the financial statements and the principal uncertainties for the remaining six months of the financial year are set out in the Chief Executive's Report above. This Half-Yearly Financial Report has not been audited or reviewed by the Company's auditor.

 

The financial statements continue to be prepared on a going concern basis. The approach used for the Annual Report is applied, giving proper consideration to financial and cashflow forecasts, including any COVID-19 impacts, and it is believed that the Company has adequate financial resources to continue to operate for a period of at least twelve months from the date on which these financial statements were approved.

 

The principal risks facing the Company remain unchanged since the date of the Annual Report for the year ended 30 September 2020, as set out in the Business Review section of the Strategic Report (pages 31 to 32). COVID-19 continues to provide uncertainty in global equity markets, both economically and politically, and the impact on the Company is set out in the Chief Executive's Report. The Company and its service providers have implemented Business Continuity Plans and operations and service levels have been maintained. Risks faced by the Company include, but are not limited to, market risk, discount volatility, compliance risk (including non-compliance with Section 1158 of the Corporation Tax Act 2010), operational risk and financial risk.

 

Responsibility Statement of the Directors in respect of the Half-Yearly Financial Report

 

In accordance with the Disclosure Guidance and Transparency Rules 4.2.7R and 4.2.8R, we confirm that to the best of our knowledge:

 

(a)  the condensed set of financial statements has been prepared in accordance with International Accounting Standard (IAS) 34, Interim Financial Reporting, as required by the Disclosure Guidance and Transparency Rule 4.2.4R, and gives a true and fair view of the assets, liabilities and financial position of the Company;

 

(b)  the Chief Executive's Report includes a fair review of the information required to be disclosed under the Disclosure Guidance and Transparency Rule 4.2.7R, interim management report. This includes (i) 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 presented in the Half-Yearly Financial Report and (ii) a description of the principal risks and uncertainties for the remaining six months of the financial year; and

 

(c)  there were no changes in the transactions or arrangements with related parties as described in the Annual Report for the year ended 30 September 2020 that would have had a material effect on the financial position or performance of the Company in the first six months of the current financial year.

 

 

David Henderson

Chairman

For and on behalf of the Board

25 May 2021