BMPG.L Regulatory News (BMPG)

Unaudited Interim Results

The Board of BMO Managed Portfolio Trust PLC announces the unaudited interim results of the Company for the six month period to 30 November 2021.

Income Shares - Financial Highlights and Performance Summary for the Six Months

· Dividend yield(1) of 4.3% at 30 November 2021, compared to the yield on the FTSE All-Share Index of 3.2%. Dividends are paid quarterly and this year the aim is to make the payments of more equal amounts.

· Net asset value total return(1) per Income share of +1.7% for the six months underperforming the FTSE All-Share Index total return of +1.9% by -0.2%.

Growth Shares - Financial Highlights and Performance Summary for the Six Months

· Net asset value total return(1) per Growth share of +5.0% for the six months outperforming the FTSE All-Share Index total return of +1.9% by +3.1%.

· The net asset value per Growth share has increased by +214.0% over 10 years, the equivalent of +12.1% compound(1) per year. This has outperformed the FTSE All-Share Index total return of +103.0%, the equivalent of +7.3% compound per year.

Notes:

(1) Yield, total return and compound annual growth rate - See Alternative Performance Measures.

Chairman's Statement

Highlights

· Net asset value ("NAV") total return for the six months of +1.7% for the Income shares and +5.0% for the Growth shares as compared to the FTSE All-Share Index total return of +1.9%

· NAV total return compound annual growth rate over 10 years of +9.4% for the Income shares and +12.1% for the Growth shares compared with +7.3% from the FTSE All-Share Index

· Income share dividend yield of 4.3% at 30 November 2021

Investment Performance

For the six months to 30 November 2021, the NAV total return was +1.7% for the Income shares and +5.0% for the Growth shares. The total return for the benchmark index for both share classes, the FTSE All-Share Index, was +1.9%. The long-term track record continues to show the NAV total return for both share classes outperforming the benchmark index over 3 years, 5 years and 10 years to 30 November 2021, with the NAV total return over 10 years achieving a compound annual growth rate of +9.4% for the Income shares and +12.1% for the Growth shares compared with +7.3% from the benchmark index.

The period under review experienced a reversal of the trend that had been evident in financial markets since the announcement of the first vaccines for COVID-19 in November 2020. Equity markets, sectors and individual stocks that had been perceived to benefit from a re-opening of economies had recovered strongly. However, from the beginning of June 2021 this changed, and bond yields, which had been rising in anticipation of very robust economic growth, began to subside. Growth, though still strong, was less than expected. The UK equity market which had been one of the best performers amongst global markets began to lag, and sectors and stocks previously leading the recovery also started to underperform on a relative basis and stocks that had done well earlier in the pandemic resumed their trend of outperformance. These were led by the US technology sector; as an illustration the Nasdaq Composite Index gained 21.8% over the period.

This trend benefitted the Growth Portfolio, which outperformed the benchmark index over the

six months to 30 November 2021. A number of investment companies with exposure to the wider technology sector were the leading performers. This was led by the portfolio's largest holding Allianz Technology Trust which gained 30%. This was closely followed by HgCapital Trust ('HGT') which rose 27%. HGT is a private equity trust that specialises in business-critical software companies mainly based in Europe. Over the year to 30 September 2021, their top 20 holdings which account for over 80% of the assets of the trust grew earnings at 29% and revenues at 25%. The next best performer was another long-time holding, Scottish Mortgage Investment Trust, which experienced a 25% rise in its share price mainly as a result of its technology and healthcare holdings.

Due to the requirement for yield, it is always a challenge for the Income Portfolio to gain exposure to the secular growth opportunities offered by investment companies investing in the technology sector where the underlying companies pay no or low dividends. This was the main reason why the Income Portfolio was slightly behind the benchmark index over the six months to 30 November 2021. The leading performer and the largest holding was NB Private Equity Partners ('NBPE') whose share price gained 33%. NBPE is managed in the US where the majority of its portfolio is located. Most of its holdings are co-investments with other well known private equity managers like Blackstone and KKR. Recently its largest holding Autostore, which provides warehouse robot technology solutions for customers worldwide, was successfully listed on the Oslo Stock Exchange. NBPE pays a dividend equivalent to 3% of its NAV annually. The next best performer with a 14% rise in its share price was 3i Infrastructure. This has been one of the best performers in the Income Portfolio over the long term and also increased its dividend by 7% in its recent interim results.

(All share prices are total return).

Revenue and Dividends

The Company's net revenue return for the six months was £1.67 million which is equivalent to 3.54p per Income share (compared to 3.57p per Income share for the corresponding period in 2020). Income shareholders are entitled to all the dividends paid by the Company. One benefit of the closed-end investment trust structure is the ability to utilise revenue reserves, built up in previous years, to sustain dividend payments during periods when there is a significant reduction in dividend income from underlying holdings. That has been the case over the course of the COVID-19 pandemic and enabled many of our holdings to sustain or, in some cases, grow their dividend payments. Over recent months a number of holdings in the Income Portfolio have begun to announce increased dividend payments which is an encouraging sign of a return to health after the worst effects of the pandemic.

With the aim of making the quarterly interim dividends of more equal amounts, the rate for each of the first and second interim dividends in respect of the year to 31 May 2022 was increased to 1.55p per Income share (1.4p per Income share in the corresponding periods in the year to 31 May 2021).

In the absence of unforeseen circumstances, the Board intends to pay three quarterly interim dividends, each of 1.55p per Income share, and that the aggregate dividends for the current financial year to 31 May 2022 will be at least 6.2p per Income share (2021: 6.2p per Income share). As a result of making the interim dividends of more equal amounts and the increase in each of the first two interim dividends and the anticipated increase in the third interim dividend, the fourth interim dividend is expected to be lower than last year. The amount of the fourth interim dividend will be determined when a clearer view emerges of income for the year. A minimum expected annual rate of 6.2p per Income share represents a yield on the Income share price at 30 November 2021 of 4.3% which is materially higher than the yield of 3.2% on the FTSE All-Share Index at the same date.

Borrowing

At 30 November 2021 the Income Portfolio had total borrowings of £7 million (9.4% of gross assets), the investment of which helps to boost net income after allowing for the interest cost. The Growth Portfolio had no borrowings.

Management of Share Premium and Discount to NAV

In normal circumstances we aim to maintain the discount to NAV at which our shares trade at not more than 5%. In practice over the years the shares have generally traded close to NAV. During the six months to 30 November 2021 the average premium to NAV for the Income shares and for the Growth shares was 1.0% and 0.7% respectively. At 30 November 2021, the Income shares stood at a premium to NAV of 2.1% and the Growth shares at a premium of 1.4% to NAV.

Share Conversion Facility

Shareholders have the opportunity to convert their Income shares into Growth shares or their Growth shares into Income shares annually subject to minimum and maximum conversion thresholds which may be reduced or increased at the discretion of the Board. On 4 November 2021 the conversion proceeded for those shareholders who had elected to do so. The net result of those conversions was a decrease of 27,625 Income shares and an increase of 13,595 Growth shares in issue. The ability to convert without incurring capital gains tax should be an attractive facility for shareholders and the next conversion date (subject to minimum and maximum thresholds) will be in October 2022. Details will be provided when the Company's annual report is published in late July 2022.

Board Changes

Following the Annual General Meeting on 30 September 2021, the Chairman Colin McGill retired from the Board and I was pleased to accept the Board's invitation to become Chairman. Colin was a director of your Company for over 13 years since its launch in 2008 and served as Chairman of the Audit Committee until January 2019 at which point he was appointed Chairman of the Board. I would like to thank Colin for his exceptional contribution and commitment to the Company throughout this time.

Following Colin's retirement I have also become Chairman of the Management Engagement Committee and Nomination Committee. As noted in the last Annual Report, David Harris was also appointed as a director at the launch of the Company in 2008 and has now served on the Board for close to 14 years. It is anticipated that David will retire at the AGM in September 2022 and a recruitment process to identify a new non-executive director will be undertaken in the first half of 2022.

Ownership of the Manager

On 8 November 2021, Columbia Threadneedle Investments, part of Ameriprise Financial, acquired BMO's EMEA asset management business ('BMO GAM (EMEA)'). This added £97 billion of assets under management ('AUM') to Columbia Threadneedle increasing its AUM to £530 billion. This was a transaction that was discussed in the Chairman's Statement in respect of the year to 31 May 2021. Your Board maintained a regular dialogue with BMO and has met with the CEO of Columbia Threadneedle Investments. We look forward to benefitting from the increase in scale and resources that the combined BMO/Columbia Threadneedle business can provide, and we are assured there will be no changes to the personnel running the activities of your Company in terms of both Fund Management and Administration.

Outlook

As Governments and Central Banks acknowledge that inflation has moved from being "transitory" to "sustained", this has reflected in a tapering down of monetary stimulus and the start (albeit from very low levels) of increases in interest rates. The Bank of England increased UK rates in December. The key theme in 2022 will be the speed and magnitude of interest rate rises and the chances of a policy mistake have increased.

For equity markets, volatility will likely increase and against a background of higher inflation and rising interest rates, positive equity returns may be harder to achieve. One of the features of the past decade has been the superior level of corporate earnings growth in the US, almost entirely due to the technology sector. In particular, the Growth Portfolio has benefitted from a number of investment companies with significant exposure in this area. Although earnings growth will remain strong from the US, the high valuations accorded to many companies in the technology sector may come under pressure in an environment when inflation is higher and interest rates start to rise. As economies continue to recover, the ability to grow earnings may not be so scarce and investors may begin to question the extent of the valuation premium of "growth" companies. At a market level this favours non-US equities, with European stock markets well placed, as is the UK stock market which is the most lowly valued.

In terms of investment strategy, the aim is to continue increasing exposure to UK equity trusts, especially those with a medium and smaller company bias, and also certain trusts with a decent exposure to Europe. This would be funded by some reduction in investment companies with significant exposure to technology and/or high growth companies.

David Warnock

Chairman

24 January 2022

Unaudited Condensed Income Statement

Six months to 30 November 2021

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 published by The Association of Investment Companies.

All revenue and capital items in the Income Statement derive from continuing operations.

Return attributable to shareholders represents the profit/(loss) for the period and also total comprehensive income.

Unaudited Condensed Income Statement

Six months to 30 November 2020

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 published by The Association of Investment Companies.

All revenue and capital items in the Income Statement derive from continuing operations.

Return attributable to shareholders represents the profit/(loss) for the period and also total comprehensive income.

Condensed Income Statement (audited)

Year to 31 May 2021

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 published by The Association of Investment Companies.

All revenue and capital items in the Income Statement derive from continuing activities.

Return attributable to shareholders represents the profit/(loss) for the year and also total comprehensive income.

Unaudited Condensed Balance Sheet

As at 30 November 2021

Unaudited Condensed Balance Sheet

As at 30 November 2020

Condensed Balance Sheet (audited)

As at 31 May 2021

Unaudited Condensed Statement of Cash Flows

Six months to 30 November 2021

Unaudited Condensed Statement of Cash Flows

Six months to 30 November 2020

Condensed Statement of Cash Flows (audited)

Year to 31 May 2021

Unaudited Condensed Statement of Changes in Equity

Six months to 30 November 2021

Unaudited Condensed Statement of Changes in Equity

Six months to 30 November 2020

Condensed Statement of Changes in Equity (audited)

Year to 31 May 2021

Notes

1. Accounting policies

These condensed financial statements, which are unaudited, have been prepared on a going concern basis in accordance with the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority, FRS 102, FRS 104 Interim Financial Reporting and the Statement of Recommended Practice ("SORP") "Financial Statements of Investment Trust Companies and Venture Capital Trusts" issued by The Association of Investment Companies ("AIC").

The accounting policies applied for the condensed financial statements are set out in the Company's annual report for the year ended 31 May 2021.

2. Income

3. Investment management and performance fees

At 30 November 2021 the adjusted total return of the Income portfolio for the period since 31 May 2021 (being the date a performance fee was last payable and including the outperformance brought forward in excess of the cap of 0.35% of total assets at 31 May 2021) exceeded that of the FTSE All-Share Index and a performance fee of £42,000 was accrued in the Income portfolio (30 November 2020: £114,000; 31 May 2021: £259,000).

At 30 November 2021 the adjusted total return of the Growth portfolio for the period since 31 May 2021 (being the date a performance fee was last payable and including the outperformance brought forward in excess of the cap of 0.35% of total assets at 31 May 2021) exceeded that of the FTSE All-Share Index and a performance fee of £1,473,000 has been calculated (30 November 2020: £1,695,000; 31 May 2021: £1,471,000). However, as the performance fee is capped at 0.35% of total assets of the relevant portfolio, the fee has been scaled back, in line with the cap, and an amount of £195,000 (30 November 2020: £160,000; 31 May 2021: £366,000) has been recognised.

4. Return per share

The return per share for the six months to 30 November 2021 is as follows:

The return per share for the comparative six months to 30 November 2020 is as follows:

The return per share for the comparative year to 31 May 2021 is as follows: