15 Feb 2013 15:35
BLUE PLANET INTERNATIONAL FINANCIALS INVESTMENT TRUST PLC - Interim Management StatementBLUE PLANET INTERNATIONAL FINANCIALS INVESTMENT TRUST PLC - Interim Management Statement
PR Newswire
London, February 15
Interim Management Statement - Blue Planet International Financials InvestmentTrust plc
Quarter Ended the 31st January 2013
Fund Manager's Review
Over the past three months the Fund's NAV has risen 15.4% and its share pricehas risen 26.1%, whilst the benchmark has risen 9.3%. Gearing now stands at54.9%. Three months ago it was at 35.2%.
During January, global markets rallied as lawmakers in the US agreed on a shortterm deal to stave off the so called "Fiscal Cliff". The Fund was wellpositioned for this event, and has again managed to outperform its benchmarkindex, the FTSE 100 index. The NAV of the fund rose by 8.9% in the month to44.25p per share while its benchmark returned 6.5%. Our NAV has now increasedby 30.5% since the merger in June 2012. This compares to a 16.9% rise for theFTSE 100 index, over the same period.
During the month we realised some of our gains in the US with the consequentresult that it slightly reduced our exposure to this geographic region. Morespecifically, we sold our equity holdings in US Bancorp, Discovery Financialsand Capital One while adding to our equity holding in JP Morgan. We alsoacquired shares in Fortress Investment Group LLC, a US Fund Manager, and UnitedStates Steel, one of the largest steel producers in the world. Both offer theprospect of considerable capital appreciation over the short and medium term.Outside of the US, we increased our equity holding in Aviva to enhance theFund's income and dividend paying ability.
As we enter the second month of 2013, there are increasing signs that theglobal economy is starting to recover. Whilst we acknowledge that there arestill a number of risks that might slow down this recovery, the economic datapublished, in particular by the US and China, the two largest economies in theworld, has been encouraging. About 75% of the 341 S&P 500 companies that havereleased results so far in the reporting season have exceeded profitexpectations.
Europe remains a drag to this recovery and the Italian elections which are totake place in the coming weeks only adds to the uncertainty. However, theEuropean Central Bank remains committed to maintaining low interest rates, withthe objective of helping countries manage their way out of their currentproblems.
We remain bullish about the prospects for equity markets over the next two tothree years.
During the month of January, the following companies reported their earningsfor the year as:
JP Morgan's net income rose 12%; Ford's net income fell 9%;
Wells Fargo's net income rose 19%; Santander's net income fell 59%.
Cumulative Performance (%) as of 31st January 2013
Current 1 month 3 months 6 months 1 year 3 years 5 years (p)NAV 44.25 8.9% 15.4% 26.7% 15.2% -47.9% -71.3%Share Price - 29.00 20.8% 26.1% 31.8% 20.8% -50.0% -75.4%Total ReturnBenchmark 62.77 6.5% 9.3% 13.5% 15.5% 36.5% 32.4%Discount / + -34.46 -34.46 -40.03 -37.00 -37.52 -31.72 -22.69Premium (%)Portfolio Information as of 31st January 2013
Security Security Country Valuation % of NAV Type Name £ 242,500 Equity Banco Santander Spain 1,282,041 5.9 SA 6,250 Equity Zurich Insurance Switzerland 1,134,394 5.2 Group AG 37,790 Equity JP Morgan Chase & United 1,120,559 5.1 Co States 232,300 Equity BP Plc United 1,084,260 5.0 Kingdom 699,629 Equity Henderson Group United 1,083,026 4.9 Plc Kingdom 326,400 Equity Fortress United 1,050,714 4.8 Investment Group States LLC 778,600 Equity RSA Insurance United 1,025,416 4.7 Group Plc Kingdom 120,850 Equity Ford Motor Co United 985,894 4.5 States 341,600 Equity Enel S.p.A. Italy 938,654 4.3 396,728 Equity Sberbank R Russia 912,051 4.2 37,330 Equity American United 889,392 4.1 International States Group 236,200 Equity Aviva Plc United 866,145 4.0 Kingdom 1,613,000 Equity Air China Ltd China 864,683 3.9 37,220 Equity Wells Fargo & Co United 816,430 3.7 States Other Equity Other Other 9,330,642 42.6 23,384,301 106.8 711,000 Bonds Aviva plc 6.875% United 715,920 3.3 20/05/58 Kingdom 620,000 Bonds LloydsTSB 04/25 United 703,725 3.2 7.625% Kingdom 541,000 Bonds Co-Op Bank 9.25% United 596,658 2.7 28/04/21 Kingdom 427,000 Bonds Yorkshire Bld United 584,174 2.7 13.5% 01/04/25 Kingdom 832,000 Bonds BNP 4.875% 29/10/ France 566,511 2.6 49 769,000 Bonds RBS 5.25% 29/06/ United 489,857 2.2 49 Kingdom 600,000 Bonds SocGen 8.75% France 399,710 1.8 Perpetual 6,011,278 27.5 Security Cash Country Valuation % of NAV Type Security Name £ 880,000 Preference TNK-BP Holding Russia £961,850 4.4 shares 793,000 Preference Lloyd Banking United £927,810 4.2 shares 9.25% Kingdom 25,400 Preference iShare S&P U.S. United £642,120 2.9 shares Pref Stk Indx States 500,000 Preference Natwest Bank 9% United £622,500 2.8 shares Kingdom 17,000 Preference Bashneft OAO Russia £510,983 2.3 shares 300,000 Preference Standard United £372,000 1.7 shares Chartered Pref Kingdom 8.25% 284,000 Preference Santander UK plc United £345,060 1.6 shares 10.375% Kingdom 200,000 Preference Santander UK plc United £206,000 0.9 shares 8.625% Kingdom 4,588,323 21.0 Security Cash Currency Valuation % of NAV Type Security Name £ Liquid Near Cash Assets GBP 0 0.0 Assets Liquid Cash GBP 22,468 0.2 Assets Liquid Cash Other 0 0.0 Assets Currency 22,468 0.2 34,006,370 155.3For more information, please visit www.blueplanet.eu
You can also contact the Company on 0845 527 7588 or by emailinginfo@blueplanet.eu