REG - CT Glbl Mgd Ptfo Tst - Annual Financial Report
28/07/2025 07:00
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RNS Number : 6881S CT Global Managed Portfolio Trust 28 July 2025
To: RNS
Date: 28 July 2025
From: CT Global Managed Portfolio Trust PLC
LEI: 213800ZA6TW45NM9YY31
Information disclosed in accordance with Disclosure Guidance and Transparency
Rule 4.1
Statement of Audited Results for the year ended 31 May 2025
Income Shares - 2025 Highlights
- Annual dividend of 7.60p per Income share (2024: 7.40p), an increase
of 2.7%.
- Dividend yield((1)) of 6.6% at 31 May 2025, based on total dividends
for the financial year of 7.60p per Income share. This compares to the yield
on the FTSE All-Share Index of 3.5%. Dividends are paid quarterly.
- Net asset value total return((2)) per Income share of +4.2% for the
financial year (2024: +7.0%), underperforming the total return of the FTSE
All-Share Index of +9.4% (2024: +15.4%) by 5.2 percentage points.
- Share price total return((2)) per Income share of +3.8% for the
financial year (2024: +5.2%), underperforming the total return of the FTSE
All-Share Index of +9.4% (2024: +15.4%) by 5.6 percentage points.
Growth Shares - 2025 Highlights
- Net asset value total return per Growth share of +2.5% for the
financial year (2024: +12.7%), underperforming the total return of the FTSE
All-Share Index total of +9.4% (2024: +15.4%) by 6.9 percentage points.
- Share price total return((2)) per Growth share of +1.6% for the
financial year (2024: +12.9%), underperforming the total return of the FTSE
All-Share Index of +9.4% (2024: +15.4%) by 7.8 percentage points.
- Net asset value total return((2)) per Growth share of +72.7% in the
10 years to 31 May 2025, the equivalent of +5.6% compound per year. This
compares with the total return of the FTSE All-Share Index of +80.7%, the
equivalent of +6.1% compound per year.
Notes:
(1) Dividend yield - based on dividends at the annual rate of 7.60p per
Income share for the financial year to 31 May 2025 and the Income share price
of 115.5p at 31 May 2025.
(2) Total return - the return to shareholders calculated on a per share
basis taking into account both the reinvestment of any dividends paid in the
period and the increase or decrease in the share price or NAV in the period.
Chairman's Statement
Performance
For the Company's financial year ended 31 May 2025 the NAV total return
(capital performance plus the reinvestment of dividends paid) was +4.2% for
the Income shares and +2.5% for the Growth shares, both of which
underperformed the +9.4% total return for the FTSE All-Share Index, the
benchmark index for both share classes. Of relevance and for interest, the
FTSE All-Share Closed End Investments Index total return was +4.4% for the
year.
Most of the underperformance occurred in the second half of the financial year
during a period of heightened uncertainty in the global economy due to
concerns of what the imposition of severe tariffs by the US on imports would
mean for growth. Stock markets reacted negatively and moved sharply downwards,
especially the US equity market. The investment company sector, with over half
of its assets invested overseas, was also affected. Holdings with exposure to
US assets, particularly to the technology sector, were impacted and although
there was a sharp recovery starting in mid-April it was not enough to offset
the declines experienced earlier in the first calendar quarter. This affected
the Growth Portfolio in particular, which has a greater exposure in this area.
However, it should be remembered that it is those investment companies that
are exposed to secular growth in the technology and healthcare sectors that
have generated particularly strong performance over the long term. Performance
is discussed in greater depth in the Investment Managers' Review.
Recent years have been challenging for investment companies. Returns from
major stock markets have been dominated by the largest companies, creating a
difficult environment for active investment managers to outperform benchmarks,
whilst higher interest rates have adversely affected alternative asset
valuations. In addition, investment company discounts widened. Inevitably,
these factors have impacted the Company's long-term returns: the compound
annual NAV total returns over the 10 years to 31 May 2025 were +4.3% for the
Income shares and +5.6% for the Growth shares, both returning less than the
compound annual total return of +6.1% for the FTSE All-Share Index for the
same period. The lesser returns have mostly been in the last four years. As
explained in their Review, the Investment Managers are seeing value in both
equity markets and alternative assets and, therefore, the current historically
wide level of investment company discounts appear to represent attractive
value.
Revenue and Dividends
For the financial year ended 31 May 2025, four interim dividends have now been
paid totalling 7.60p per Income share, which represents an increase of 2.7%
from the prior financial year (2024: 7.40p per Income share). The fourth
interim dividend was paid after the year end on 11 July 2025.
This is the 14th consecutive year of dividend increase and the yield on the
Income shares was 6.6% on the year end Income share price, compared with 3.5%
for the FTSE All-Share Index.
In the absence of unforeseen circumstances, it is the Board's intention, in
accordance with the Company's stated dividend policy, to pay four quarterly
interim dividends, each of at least 1.90p per Income share, so that the
aggregate dividends for the financial year ending 31 May 2026 will be at least
7.60p per Income share.
While it is not an objective or indeed a key performance indicator for the
Company's dividend increase to exceed inflation over any period, the Board
believes it is likely important to Income shareholders. It is hopefully
therefore reassuring that, despite the tumultuous events and shocks of the
last few years, the Company's total annual dividends have grown by more than
inflation (as measured by the CPI), cumulatively over the last seven years and
over longer periods, back to the Company's inception. It is fair to say the
comparison is not quite so favourable in more recent years but it is close,
and certainly in the Board's mind when declaring dividends.
After allowing for the payment of the fourth interim dividend, CT Global
Managed Portfolio Trust has a revenue reserve of £2.76 million, equivalent to
approximately 68% of the current annual dividend cost (at 7.60p per Income
share). In addition, the £29.6 million distributable reserve (the 2022
special reserve, which was created following the cancellation of the share
premium account) is attributable to the Income Portfolio. These reserves can
be drawn on to support the payment of dividends to Income shareholders if and
when considered appropriate by the Board, as has been the case this year.
Going forward, the Board believes the Income Portfolio's total return might be
improved by an adaptable use of reserves in support of maintaining and
increasing dividends paid to Income shareholders. This will afford the
Investment Managers more choice with portfolio construction.
Borrowing
Effective 10 February 2025, the Company put in place a two- year unsecured
revolving credit facility ('RCF') with The Royal Bank of Scotland
International Limited ('RBSI') for £10 million. This replaced the Company's
£5 million unsecured term loan and a £5 million RCF, both of which matured
on that date. At the year end, £7 million of the RCF had been drawn down in
the Income Portfolio (2024: total borrowings were also £7 million in the
Income Portfolio), which represented 10.3% of its gross assets (2024: 10.4%).
No borrowings were drawn down in the Growth Portfolio.
The Board is responsible for the Company's gearing strategy and sets
parameters within which the Investment Managers operate. Borrowings are not
normally expected to exceed 20% of the total assets of the relevant Portfolio;
in practice they have been more modest and used to seek to enhance total
return as well as the net income in the Income Portfolio.
Management of Share Price Premium and Discount to NAV
In normal circumstances we aim to ensure the discount to NAV at which our
shares trade is no more than 5% and, during the financial year ended 31 May
2025, the Income shares and Growth shares traded at an average premium of
+0.8% and an average discount of -1.8% respectively.
We are active in issuing shares to meet demand and buying back shares when
this is appropriate. During the financial year 1,870,000 new Income shares
were issued from the Company's block listing facility at an average premium to
NAV of 1.7%. 50,000 Income shares and 150,000 Growth shares were also resold
out of treasury at an average premium to NAV of 1.7% and 1.6% respectively.
In addition, 1,255,000 Growth shares were bought back into treasury at an
average price of 255p per Growth share and at an average discount to NAV of
-3.3%. 50,000 Income shares were also bought back into treasury at an average
price of 115p per Income share and at an average discount to NAV of -2.9%.
The Board is seeking shareholders' approval to renew the powers to allot
shares, buy back shares and sell shares from treasury at the forthcoming
Annual General Meeting ('AGM'). Specifically, the Board is seeking approval to
allow the Company to issue (or sell from treasury) up to 20% of its Income
shares and up to 20% of its Growth shares without rights of pre-emption and,
in this respect, there are two resolutions proposed. Each resolution is for up
to 10% and, therefore, for an aggregate of up to 20% of each of the Income
shares and Growth shares. This approach allows any shareholder who may not
wish to give approval to an aggregate limit higher than that recommended by
corporate governance guidelines the ability to approve the first resolution
for up to 10% and to also consider the second resolution separately for a
further 10%. The Board believes the ability to issue and buy back shares helps
to reduce the volatility in the premium or discount of the share prices to the
underlying NAVs and the 20% overall share allotment authority and the 14.99%
buy back authority with respect to both the Income shares and Growth shares
are therefore in the best interests of all shareholders.
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 quantum thresholds which may be reduced or increased at
the discretion of the Board.
The ability to convert without incurring UK capital gains tax should be an
attractive facility for shareholders who wish to do so, and the next
conversion date will be on 30 October 2025. Information is provided in the
Annual Report and Financial Statements and full details will be provided on
the Company's website (ctglobalmanagedportfolio.co.uk) from 4 August 2025.
Investment Manager Succession
As announced in April 2025, Peter Hewitt, who had been responsible for the
management of the Company's Income and Growth portfolios since the Company's
launch in April 2008, gave notice of his desire to retire. Peter managed the
portfolios with great knowledge, dedication and enthusiasm and communicated
the Company's progress to shareholders regularly, engagingly and openly.
Naturally, the Board and the Manager had been planning for Peter's retirement
for some time, while acknowledging that managing Peter's succession would be
no easy task. From 1 June 2025, the beginning of the Company's current
financial year, the Portfolios are now managed by London-based Investment
Managers Adam Norris and Paul Green, supported by the broader EMEA Multi-Asset
Solutions team (of which they are members). Some background about each of Adam
and Paul is provided in the Annual Report and Financial Statements.
Shareholders will have an opportunity to meet Adam and Paul at the forthcoming
AGM. The Board thanks Peter for his years of service to shareholders and
wishes him a long and happy retirement. The Board also looks forward to
working with Adam and Paul on the evolution of the portfolios in the best
interests of all shareholders.
Investment Management Fee
The Board and Manager have agreed a reduction in the investment management fee
(the 'Fee') with effect from 1 September 2025. The Fee will be reduced to
0.60% per annum of the net asset value of each portfolio of the Company
(rather than 0.65% per annum of the total assets of each portfolio) and there
will no longer be any charge on any assets which are invested in other
investment vehicles managed by the Manager. In aggregate these changes will
lead to an annualised pro forma reduction in the Fee paid to the Manager of
approximately £135,000. It is the Board's intention to use much of this
saving to enhance the marketing and promotion of the Company in the belief
that the scale benefits that may accrue to shareholders will, in time, more
than cover the additional investment. Basing the Fee on net asset value rather
than total assets better aligns the interests of the Manager and shareholders,
in essence by not charging on any borrowings, and, while there are merits in
the alignment of interests achieved between the Manager and shareholders by a
Fee based on market capitalisation, the Company's share issuance and buy-back
policy ensures this alignment is effectively achieved.
AGM
The Annual General Meeting will be held on 1 October 2025 at Columbia
Threadneedle Investments, Cannon Place, 78 Cannon Street, London, EC4N 6AG at
11.30am. Adam Norris and Paul Green will give a presentation and provide an
overview of their investment strategy together with their views on the
outlook.
Voting on all resolutions at the AGM will be held on a poll, the results of
which will be announced and posted on the Company's website following the
meeting (ctglobalmanagedportfolio.co.uk). All shareholders are therefore
encouraged to make use of the proxy form or form of direction provided, in
order that they can lodge their votes.
Should shareholders have any questions or comments in advance, these can be
raised with the Company Secretary (MPTCoSec@columbiathreadneedle.com).
Following the AGM, the Investment Managers' presentation will be available on
the Company's website.
Outlook
While the economic backdrop remains relatively benign, there is a prevailing
level of elevated uncertainty thanks, in the main, to the tariff policies of
the US administration. While many tariff levels are likely to ultimately be
lower than those threatened at the start of April, the global economy is still
facing the highest level of tariffs since the 1930s. This means there are
still notable downside risks to growth and upside risks to inflation, though
precise forecasting remains especially difficult until there is more clarity
on the size, scope and duration of the aforementioned tariffs. Provided the
impact on growth, inflation and corporate earnings is limited, equity markets
have the potential to continue to 'look through' the worst of the tariff
headlines on the assumption that economic pragmatism will prevail.
Towards the end of the financial year, European, Asian and UK stocks showed
signs of outperformance versus the US market, as the notion of 'US
exceptionalism' was challenged. Whilst foreign exchange markets may well
adjust, the US stock market, due to its wealth of technology stocks and deep
capital markets, is likely to generate continued superior earnings growth
versus the rest of the world. Your Company will remain diversified across a
broad spread of investment companies, covering a variety of geographies,
sectors and investment managers. This diversification should prove of
particular merit during especially uncertain times.
David Warnock
Chairman
25 July 2025
Investment Managers' Review
"We are both excited to be the new Investment Managers for CT Global Managed
Portfolio Trust and would like to thank Peter Hewitt for his long-term
stewardship of shareholder assets since the Company's launch in 2008. We
consider ourselves privileged to be the Company's Investment Managers and will
endeavour to invest prudently for the benefit of all shareholders and to
continue Peter's passion for the investment company sector."
Q: What were the key influences on the market over the year?
The sporting cliché 'a game of two halves' is a very apt summary describing
the environment for equity markets over the reporting period. The first six
months of the financial year ended 31 May 2025 continued the trend apparent
over recent years of the US stock market leading world equity markets in terms
of returns. The prospect of a return of President Trump in the November
election, with the promise of business-friendly policies and tax cuts, both
personal and corporate, together with a strongly growing economy, helped the
US stock market to all-time highs. Meanwhile, in the UK, the October budget
from the new government, which included increased taxes on business, did not
go down well with investors. As a result, the UK stock market went sideways
and continued to relatively underperform globally.
The environment for financial markets, and the US stock market in particular,
changed markedly soon after the new President took power towards the end of
January. A series of pronouncements regarding the widespread imposition of
tariffs on goods coming into the US led to a sharp sell-off in stock markets,
led by the US on the way down. The implication for growth everywhere was not
good. In the US, concerns over tariffs and fears of upside risks to inflation
caused volatility in bond markets. This became heightened after 'liberation
day' on 2 April when actual tariffs on individual countries were announced,
with China being hit the hardest. Bond markets in the US reacted badly, with
yields moving higher. Only a week later, various pauses on tariffs were
announced to allow negotiations to take place. Equity markets began to recover
sharply.
Tariff agreements with individual countries, at much lower levels than were
initially announced (but still higher than before the election), were
announced, for example with the UK, whilst discussions remain underway
regarding bi-lateral deals with a series of other countries. In the US, the
Federal Reserve has paused interest rate reductions due to widespread
uncertainty affecting major sections of the economy. In continental Europe and
the UK, interest rate cuts have continued as the inflation outlook eases.
Total Return by Region for the Year Ended 31 May 2025 (sterling adjusted)
FTSE All-Share +9.4%
FTSE World ex UK +7.7%
FTSE Europe ex UK +7.4%
MSCI Emerging Markets +7.3%
S&P 500 (US) +7.2%
FTSE Japan +5.8%
FTSE Pacific ex Japan +4.4%
Source: Columbia Threadneedle Investments
The table above shows returns from most regions in a narrow band of mid to
high single digits for the year. However, this masks a major recovery in the
second half of the year by a number of non-US equity markets, led by Europe
and the UK. As investors viewed the US with increased uncertainty the relative
stability of other regions both economically and politically became more
attractive for investors. With valuations much less demanding than in the US,
both the UK and continental European stock markets experienced a much improved
second half in terms of returns.
A key feature of the year under review has been the weakness of the dollar,
most of which occurred in the second half of the year amidst a blizzard of
tariff announcements. Certain other currencies benefitted with, as an
illustration, sterling appreciating against the dollar by nearly 6% over the
year (all of which occurred post President Trump taking power). This has the
effect of reducing returns from US assets when translated back into sterling.
Since the start of 2022 a feature of stock market returns in the UK, US and
continental Europe has been the dominance of the largest companies in terms of
market leadership. The table below highlights the performance trends within
the UK stock market over the past year.
Total Returns for the Year Ended 31 May 2025
FTSE 100
Index
+10.1%
FTSE 250
Index
+4.8%
FTSE Small Cap (ex-Investment Trusts)
Index
+6.3%
FTSE AIM All-Share
Index
-5.5%
FTSE All-Share Closed End Investments
Index
+4.4%
Source: Columbia Threadneedle Investments
The trend of the largest companies within stock markets leading in terms of
share price performance has been evident in other equity markets like the US
and continental Europe. In the case of the UK, the make-up of the FTSE 100 is
markedly different from indices representing medium sized and smaller
companies. Sectors like oils, banks, pharmaceuticals, utilities, mining and
tobacco have significant weightings, and they are viewed as 'old economy' low
growth mature sectors.
However, at times of uncertainty, investors exhibit a preference for larger
companies as these are perceived as better placed to survive an adverse
environment of high inflation and interest rates. Over the past twelve months
this has again been evident.
In the autumn of 2024 acute uncertainty in the UK over the new government's
first budget pervaded financial markets and then in the early part of 2025
fear and uncertainty over the potential introduction of widespread tariffs by
the US and what it could mean for growth severely affected investor sentiment.
The preceding table highlights the significant outperformance from the very
largest companies in the UK stock market.
Q: How did each Portfolio perform over the financial year?
For the year ended 31 May 2025 the FTSE All-Share Index recorded a 9.4% rise
(in total return terms). Over the same period the net asset value of the
Growth Portfolio gained 2.5% whilst that of the Income Portfolio was up by
4.2% (again in total return terms). For information, the FTSE All-Share Closed
End Investments Index rose by 4.4%.
All of the underperformance from the Growth Portfolio and most of the
underperformance from the Income Portfolio occurred in the second half of the
financial year.
A key factor behind the relative performance, which was very evident in the
second half of the financial year, was performance leadership within the stock
market. At the halfway stage, all of the different size indices within the
stock market had performed in a narrow range for the first six months of the
financial year. However, a sizeable gap opened up between the FTSE 100 Index
and the FTSE 250 Index, the FTSE SmallCap (ex-Investment Trusts) Index, the
FTSE AIM All-Share Index and importantly the FTSE All-Share Closed End
Investments Index. For active fund managers who are seeking to outperform an
equity index this is difficult because it is not easy to be overweight the
very largest companies which may comprise substantial portions of an index.
Over the longer-term, medium and smaller companies tend to grow their profits
and earnings more rapidly which drives performance. Encouragingly the final
two months of the financial year saw a reversal of this trend.
The second key factor, not unrelated, relates to investment company discounts.
Over the course of the year the average sector discount widened slightly from
just over 14% to just over 15% by the year end. However, over the course of
the year there was significant volatility in discounts. Following the UK
election last July, the average sector discount narrowed to 12%. However, by
the time of the pause in the imposition of tariffs was announced in mid-April
2025, they had widened to 20%, only to narrow sharply thereafter. The ongoing
shifts in discounts unsettled investor confidence and demand for investment
company shares remained consistently low over the period whilst the supply
(selling) continued at high levels. The only consistent source of demand
(buying) came from investment companies themselves in the form of share
buy-backs and also activist shareholders.
The chart on p19 of the Annual Report and Financial Statements puts in
perspective the long-term trend of discounts. In broad terms there was a
steady tightening from 2010 to 2021, however the last three and half years
have seen a sharp reversal to the current level of 15%. Narrowing discounts
were a key feature of the sector's outperformance through to 2021 and
similarly widening discounts have been a key feature of the underperformance
in recent years. There is little doubt that at the current historically wide
level the investment company sector represents attractive value.
Q: On 1 June 2025 you were appointed as Investment Managers. What are your
backgrounds?
Adam Norris
I am a portfolio manager in Columbia Threadneedle's EMEA Multi-Asset Solutions
team. I joined Columbia Threadneedle through the acquisition of BMO GAM (EMEA)
in 2021, having joined the firm in 2013 when it was known as F&C
Investments. I joined the Multi-Manager team in February 2016, which became
part of EMEA Multi-Asset Solutions team in 2024. I graduated with a BA in
Economics and Politics from University of Leicester, am a CFA Charterholder
and have attained the CFA Institute ESG Certificate, as well as the Investment
Management Certificate.
Paul Green
I am also a portfolio manager in Columbia Threadneedle's EMEA Multi-Asset
Solutions team. I started my career at Rothschild Asset Management and then
moved to Credit Suisse Asset Management in 2001. In 2007, I joined BMO GAM
(EMEA)'s Multi-Manager team. As Adam mentioned, BMO GAM (EMEA) was acquired by
Columbia Threadneedle in 2021 and the Multi-Manager team became part of its
EMEA Multi-Asset Solutions team in 2024. I hold the Investment Administration
Qualification (IAQ), the Investment Management Certificate, the CISI Level 6
Certificate in Private Client Investment Advice and Management and the CISI
Diploma.
Q: Are the Company's investment objectives changing?
No, the Company's investment objectives remain unchanged. The Company remains
a 'one-stop-shop' for investment company exposure, blending the best portfolio
managers in the investment company universe.
The Company has two share classes: Growth shares and Income shares, with their
objectives unchanged. The objective for the Growth Portfolio is to provide
investors with capital growth. The objective for the Income Portfolio is to
provide investors with an attractive level of income (paid quarterly), with
the potential for income and capital growth.
The Company's investment Portfolios will remain well diversified by market,
asset class and investment approach, and will continue to invest in UK listed
investment companies which themselves invest in public equity, private equity
and alternatives around the world.
Q: How do you select holdings for CT Global Managed Portfolio Trust?
At the heart of the process is to understand investment company managers,
their style of investment and how repeatable their own process is. We consider
it of paramount importance, much like Peter did before us, to meet with
investment company managers in order to understand their culture, philosophy
and investment process. This will remain fundamental to the selections made
within CT Global Managed Portfolio Trust.
We then take our understanding of a manager's investment process and use our
proprietary scoring system. This condenses the subjective areas of investing
more broadly into a single numeric score. It captures areas such as our view
of the process, relevant manager and team experience, buy-backs and issuance
and valuation details as well as our view of the overall use of the investment
company structure.
In addition, we review manager positioning through time, understanding the
geographic and investment style exposures which have contributed to company
performance.
Q: How should an investor expect the two portfolios to change over the next 12
months?
In the coming financial year, we will continue to review the best ideas
available in the investment company universe and invest into those which we
believe can generate strong returns for shareholders. We will continue to
focus on geographies, themes or investment sectors which we believe can drive
long-term capital and income for shareholders. As part of the Manager's
Multi-Asset Solutions team, we are constantly assessing both macroeconomic
conditions and the valuations of different asset classes. Any decisions we
make will be thoughtful around return and risk expectations.
We will look to invest in the best ideas we can find in the investment company
sector and make use of quantitative systems to assist with diversification and
portfolio construction. These systems allow us to review portfolio manager
holdings and their market exposures, such as country and sector breakdowns. By
using a mixture of our qualitative understanding and these quantitative
inputs, we will seek to invest the Portfolios into best-in-class investment
company managers as well as reduce overlapping market exposures. This will
result in the Portfolios becoming more concentrated over time whilst remaining
well diversified on an underlying security basis. In addition, given the value
on offer, investors will likely see increased allocation to alternative asset
classes, such as infrastructure and property, where we believe the total
return opportunities are attractive, underpinned by sustainable dividends. As
a result, the Growth and Income portfolios may, at certain points in time,
have an increased degree of overlap, as we focus on generating total returns
for investors.
Q: What is your outlook on the market?
Whilst policy uncertainty and geopolitical risks remain elevated, we continue
to see value in equity markets and risk assets more broadly. We believe US
equities have scope for outperformance with superior growth rates versus their
rest of the world competitors, with its concentration of technology- related
stocks, deep capital markets and vibrant economy.
After a tough three-year period, we are also a little more sanguine on the
outlook for Asia and Emerging Markets. A weakening dollar, perhaps an
intention of the US administration rather than a symptom, low valuations and
rebounding earnings growth could make a potent mix for equity returns. Chinese
technology companies, for instance, are demonstrating impressive innovation
and trade at considerably lower multiples than their US equivalents.
UK equities appear cheap. However, once adjusted for sector composition, the
discount versus continental European and Asia-equity markets becomes less
pronounced. Whilst it is encouraging to see continuing merger and acquisition
('M&A') activity within small and medium sized companies which is
beneficial for short-term performance, the UK issuance market remains
moribund, implying the UK equity market is not yet replacing its most
attractive companies. Further still, high profile re-listings of stocks away
from UK market leaves fewer exciting companies for active managers to own.
Listed private equity portfolios, on the whole, are ripe with value. Once US
capital markets reopen more fully - only a matter of time in our opinion -
then exits will materialise, and shareholder returns delivered. Despite large
discounts to net asset values, overall, the UK listed private equity market is
comprised of top-quality private equity managers.
We see strong value in certain alternative asset classes which are offering
both the opportunity for income and capital growth. Areas such as
infrastructure, renewable energy generation and property have suffered due to
sensitivities to interest rates and offer compelling total return
opportunities. This is despite a pick-up in M&A activity, where prices
paid for acquisition represent meaningful premiums to the undisturbed share
prices. We expect this theme to continue until such time as a re-rating of the
alternatives sector materialises. In addition, industry shareholders are
requiring larger, more liquid investment companies and we would expect
industry consolidation to continue.
We are further encouraged to see boards of directors continuing to promote
more flexible capital policies. Board initiatives such as debt paydown,
buy-backs or tender offers can be powerful tools in generating shareholder
returns.
We feel privileged to become the Investment Managers of your Company. It
coincides at a time when we believe there are pockets of tremendous value in
the investment company sector and feel optimistic about the year ahead.
Adam Norris and Paul Green
Investment Managers
Columbia Threadneedle Investment Business Limited
25 July 2025
Income Statement
For the Year ended 31 May 2025
Notes Revenue Capital Total
£'000 £'000 £'000
Gains on investments - 1,600 1,600
Foreign exchange losses - (4) (4)
Income 5,075 - 5,075
Investment management fee (290) (732) (1,022)
Other expenses (744) - (744)
Return on ordinary activities before
finance costs and tax 4,041 864 4,905
Finance costs (128) (194) (322)
Return on ordinary activities before tax 3,913 670 4,583
Tax on ordinary activities - - -
Return attributable to shareholders 3,913 670 4,583
Return per Income share - basic and diluted 3 7.44p (2.93p) 4.51p
Return per Growth share - basic and diluted 3 - 6.33p 6.33p
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.
Segmental analysis, illustrating the two separate portfolios of assets, the
Income Portfolio and the Growth Portfolio, is shown in note 2 to the financial
statements.
All revenue and capital items in the Income Statement derive from continuing
operations.
Return attributable to shareholders represents the profit/(loss) for the year
and also total comprehensive income.
Income Statement
For the Year ended 31 May 2024
Notes Revenue Capital Total
£'000 £'000 £'000
Gains on investments - 11,175 11,175
Foreign exchange losses - (6) (6)
Income 5,167 - 5,167
Investment management fee (280) (702) (982)
Other expenses (659) - (659)
Return on ordinary activities before
finance costs and tax 4,228 10,467 14,695
Finance costs (114) (171) (285)
Return on ordinary activities before tax 4,114 10,296 14,410
Tax on ordinary activities - - -
Return attributable to shareholders 4,114 10,296 14,410
Return per Income share - basic and diluted 3 8.06p (0.28p) 7.78p
Return per Growth share - basic and diluted 3 - 28.33p 28.33p
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.
Segmental analysis, illustrating the two separate portfolios of assets, the
Income Portfolio and the Growth Portfolio, is shown in note 2 to the financial
statements.
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.
Balance Sheet
As at 31 May 2025
Income Growth
shares shares Total
Notes £'000 £'000 £'000
Fixed assets
Investments at fair value 66,576 87,956 154,532
Current assets
Debtors 286 146 432
Cash at bank and on deposit 1,332 3,592 4,924
1,618 3,738 5,356
Creditors
Amounts falling due within one year (7,219) (289) (7,508)
Net current (liabilities)/ assets (5,601) 3,449 (2,152)
Net assets 60,975 91,405 152,380
Capital and reserves
Called-up share capital 2,481 1,787 4,268
Share premium 5,197 476 5,673
Capital redemption reserve 2,699 2,258 4,957
2022 special reserve 29,588 29,581 59,169
2008 special reserve 19,681 6,122 25,803
Capital reserves (2,540) 51,181 48,641
Revenue reserve 3,869 - 3,869
Shareholders' funds 60,975 91,405 152,380
Net asset value per share (pence) 6 113.36p 265.86p
Balance Sheet
As at 31 May 2024
Income Growth
shares shares Total
Notes £'000 £'000 £'000
Fixed assets
Investments at fair value 65,994 91,861 157,855
Current assets
Debtors 293 208 501
Cash at bank and on deposit 1,200 476 1,676
1,493 684 2,177
Creditors
Amounts falling due within one year (7,223) (310) (7,533)
Net current (liabilities)/ assets (5,730) 374 (5,356)
Net assets 60,264 92,235 152,499
Capital and reserves
Called-up share capital 3,134 2,353 5,487
Share premium 3,223 428 3,651
Capital redemption reserve 1,950 1,698 3,648
2022 special reserve 29,588 29,581 59,169
2008 special reserve 19,464 9,206 28,670
Capital reserves (998) 48,969 47,971
Revenue reserve 3,903 - 3,903
Shareholders' funds 60,264 92,235 152,499
Net asset value per share (pence) 6 116.51p 259.29p
Cash Flow Statement
Year ended 31 May 2025
Notes Income shares Growth shares
Total
£'000 £'000 £'000
Net cash outflow from operations before dividends and interest
(732) (1,054) (1,786)
Dividends received 3,365 1,610 4,975
Interest received 57 113 170
Interest paid (334) - (334)
Net cash inflow from operating activities 2,356 669 3,025
Investing activities
Purchases of investments (5,938) (6,359) (12,297)
Sales of investments 5,374 11,848 17,222
Net cash flows from investing activities (564) 5,489 4,925
Net cash flows before financing activities 1,792 6,158 7,950
Financing activities
Equity dividends paid 4 (3,947) - (3,947)
Proceeds from issuance of new shares 2,064 - 2,064
Share conversion - Income to Growth (210) 210 -
Share conversion - Growth to Income 433 (433) -
Shares purchased to be held in treasury (58) (3,219) (3,277)
Sale of shares from treasury 58 400 458
Fixed rate term loan repaid (5,000) - (5,000)
Revolving credit facility drawdown 5,000 5,000
Net cash flows from financing activities (1,660) (3,042) (4,702)
Net movement in cash and cash equivalents 132 3,116 3,248
Cash and cash equivalents at the beginning of the year 1,200 476 1,676
Cash and cash equivalents at the end of the year 1,332 3,592 4,924
Represented by:
Cash at bank 192 52 244
Short-term deposits 1,140 3,540 4,680
1,332 3,592 4,924
Cash Flow Statement
Year ended 31 May 2024
Notes Income shares Growth shares
Total
£'000 £'000 £'000
Net cash outflow from operations before dividends and interest
(615) (943) (1,558)
Dividends received 3,181 1,515 4,696
Interest received 57 133 190
Interest paid (268) - (268)
Net cash inflow from operating activities 2,355 705 3,060
Investing activities
Purchases of investments (10,193) (10,167) (20,360)
Sales of investments 8,474 10,054 18,528
Net cash flows from investing activities (1,719) (113) (1,832)
Net cash flows before financing activities 636 592 1,228
Financing activities
Equity dividends paid (3,863) - (3,863)
Proceeds from issuance of new shares 1,381 - 1,381
Share conversion - Income to Growth (238) 238 -
Share conversion - Growth to Income 282 (282) -
Shares purchased to be held in treasury - (5,682) (5,682)
Net cash flows from financing activities (2,438) (5,726) (8,164)
Net movement in cash and cash equivalents (1,802) (5,134) (6,936)
Cash and cash equivalents at the beginning of the year 3,002 5,610 8,612
Cash and cash equivalents at the end of the year 1,200 476 1,676
Represented by:
Cash at bank 510 36 546
Short-term deposits 690 440 1,130
1,200 476 1,676
Statement of Changes in Equity
For the Year ended 31 May 2025
Capital redemption reserve 2022 2008 Total shareholders' funds
Share capital Share £'000 special special reserve Capital reserves Revenue reserve £'000
£'000 premium reserve £'000 £'000 £'000
Income shares £'000 £'000
As at 31 May 2024 3,134 3,223 1,950 29,588 19,464 (998) 3,903 60,264
Increase in share capital in issue, net of share issuance expenses
90 1,974 - - - - - 2,064
Shares purchased for treasury - - - - (58) - - (58)
Sale of shares from treasury - - - - 58 - - 58
Share conversion 6 - - - 217 - - 223
Cancellation of deferred shares (749) - 749 - - - - -
Transfer of net income from Growth to Income Portfolio
- - - - - - 1,109 1,109
Transfer of capital from Income to Growth Portfolio
- - - - - (1,109) - (1,109)
Dividends paid - - - - - - (3,947) (3,947)
Return attributable to shareholders - - - - - (433) 2,804 2,371
As at 31 May 2025 2,481 5,197 2,699 29,588 19,681 (2,540) 3,869 60,975
Growth shares
As at 31 May 2024 2,353 428 1,698 29,581 9,206 48,969 - 92,235
Increase in share capital in issue, net of share issuance expenses
- - - - - - - -
Shares purchased for treasury - - - - (3,219) - - (3,219)
Sale of shares from treasury - - - - 400 - - 400
Profit on sale of treasury shares - 48 - - (48) - - -
Share conversion (6) - - - (217) - - (223)
Cancellation of deferred shares (560) - 560 - - - - -
Transfer of net income from Growth to Income Portfolio
- - - - - - (1,109) (1,109)
Transfer of capital from Income to Growth Portfolio
- - - - - 1,109 - 1,109
Return attributable to shareholders - - - - - 1,103 1,109 2,212
As at 31 May 2025 1,787 476 2,258 29,581 6,122 51,181 - 91,405
Total Company
As at 31 May 2024 5,487 3,651 3,648 59,169 28,670 47,971 3,903 152,499
Increase in share capital in issue, net of share issuance expenses
90 1,974 - - - - - 2,064
Shares purchased for treasury - - - - (3,277) - - (3,277)
Sale of shares from treasury - - - - 458 - - 458
Profit on sale of treasury shares - 48 - - (48) - - -
Share conversion - - - - - - - -
Cancellation of deferred shares (1,309) - 1,309 - - - - -
Dividends paid - - - - - - (3,947) (3,947)
Return attributable to shareholders - - - - - 670 3,913 4,583
Total Company as at 31 May 2025 4,268 5,673 4,957 59,169 25,803 48,641 3,869 152,380
Statement of Changes in Equity
For the Year ended 31 May 2024
Capital redemption reserve 2022 2008 Total shareholders' funds
Share capital Share £'000 special special reserve Capital reserves Revenue reserve £'000
£'000 premium reserve £'000 £'000 £'000
Income shares £'000 £'000
As at 31 May 2023 3,247 1,917 1,760 29,588 19,422 (853) 3,652 58,733
Increase in share capital in issue, net of share issuance expenses
75 1,306 - - - - - 1,381
Share conversion 2 - - - 42 - - 44
Cancellation of deferred shares (190) - 190 - - - - -
Transfer of net income from Growth to Income Portfolio
- - - - - - 1,261 1,261
Transfer of capital from Income to Growth Portfolio
- - - - - (1,261) - (1,261)
Dividends paid - - - - - - (3,863) (3,863)
Return attributable to shareholders
- - - - - 1,116 2,853 3,969
As at 31 May 2024 3,134 3,223 1,950 29,588 19,464 (998) 3,903 60,264
Growth shares
As at 31 May 2023 2,500 428 1,553 29,581 14,930 38,528 - 87,520
Increase in share capital in issue, net of share issuance expenses
- - - - - - - -
Share conversion (2) - - - (42) - - (44)
Cancellation of deferred shares
(145) - 145 - - - - -
Transfer of net income from Growth to Income Portfolio
- - - - - - (1,261) (1,261)
Transfer of capital from Income to Growth Portfolio
- - - - - 1,261 - 1,261
Shares purchased for treasury
- - - - (5,682) - - (5,682)
Return attributable to shareholders - - - - - 9,180 1,261 10,441
As at 31 May 2024 2,353 428 1,698 29,581 9,206 48,969 - 92,235
Total Company
As at 31 May 2023 5,747 2,345 3,313 59,169 34,352 37,675 3,652 146,253
Increase in share capital in issue, net of share issuance expenses 75 1,306 - - - - - 1,381
Cancellation of deferred shares (335) - 335 - - - - -
Share conversion - - - - (5,682) - - (5,682)
Dividends paid - - - - - - (3,863) (3,863)
Return attributable to shareholders - - - - - 10,296 4,114 14,410
Total Company as at 31 May 2024 5,487 3,651 3,648 59,169 28,670 47,971 3,903 152,499
Principal Risks and Uncertainties
As an investment company investing primarily in listed securities, most of the
Company's principal risks and uncertainties that could threaten the
achievement of its objective, strategy, future performance, liquidity and
solvency are market-related.
A summary of the Company's risk management and internal control arrangements
is included within the Report of the Audit Committee in the Annual Report and
Financial Statements. By means of the procedures set out in that summary, the
Board has established an ongoing process for identifying, evaluating and
managing the significant risks faced by the Company. The Board also considers
emerging risks which might affect the Company and related updates from the
Manager on such risks are also considered. During the year, significant and
emerging risks included the outlook for inflation, ongoing macroeconomic and
geopolitical concerns, and the impact on financial markets of US trade
tariffs. Any emerging risks that are identified and that are considered to be
of significance are included on the Company's risk register with any
mitigations. These significant risks, emerging risks and other risks are
regularly reviewed by the Audit Committee and the Board. The Audit Committee
and the Board have also regularly reviewed the effectiveness of the Company's
risk management and internal control systems for the period.
The principal risks and uncertainties faced by the Company, and the Board's
mitigation approach, are described below.
Market risk
The Company's assets consist mainly of listed closed-end investment companies
and its principal risks are therefore market-related and include market risk
(comprising currency risk, interest rate risk and other price risk), liquidity
risk and credit risk.
Climate change may also have an impact on investee companies in the coming
years.
Uncertainty in markets, with events such as the war in Ukraine, increased
conflict in the Middle East and the impact on financial markets of US trade
tariffs, together with macroeconomic and geopolitical concerns, have led to
volatility in the Company's NAV.
No change in overall risk during the year, but, given macroeconomic and
geopolitical concerns, this risk remains heightened.
Mitigation
The Board regularly considers the composition and diversification of the
Income Portfolio and the Growth Portfolio and considers individual stock
performance together with purchases and sales of investments. Investments and
markets are discussed with the Manager on a regular basis.
Engagement on financially material environmental, social and governance
matters is undertaken by the Manager and its approach is explained on pages 21
and 22 of the Annual Report and Financial Statements.
The Board has, in particular, considered the impact of market volatility,
macroeconomic and geopolitical concerns and inflation and they are discussed
in the Chairman's Statement and Investment Managers' Review. As a closed-end
investment company, the Company is not constrained by asset sales to meet
redemptions so can remain invested through volatile market conditions and is
well suited to investors seeking longer-term returns.
Investment performance risk
Incorrect strategy, asset allocation, stock selection (in the context of the
market, economic or geopolitical backdrop) and the use of gearing could all
lead to poor returns for shareholders.
No change in overall risk during the year, but, given macroeconomic and
geopolitical concerns, this risk remains heightened.
Mitigation
The investment strategy and performance against peers and the benchmark are
considered by the Board at each meeting and reviewed with the Manager. The
Board is responsible for setting the gearing range within which the Manager
may operate and gearing is discussed at every meeting and related covenant
limits are closely monitored. The Manager's Investment Risk team provide
oversight on investment risk management.
The Income Portfolio and Growth Portfolio are diversified and principally
comprise listed closed-end investment companies and their compositions are
reviewed regularly by the Board.
Underlying dividends from investee companies are also closely monitored and
the revenue reserve and the 2022 special reserve attributable to the Income
Portfolio can be drawn to support the payment of dividends to Income
shareholders.
If required, the Board can hold additional meetings at short notice to discuss
any significant matters.
Third party service delivery and cyber risk
Failure of the Manager as the Company's main service provider or disruption to
its business, or that of any other outsourced or third party service provider,
could lead to an inability to provide accurate reporting and monitoring or
misappropriation of assets, leading to a potential breach of the Company's
investment mandate or loss of shareholders' confidence.
The risk includes failure or disruption as a consequence of external events
such as the COVID-19 pandemic.
External cyber attacks could cause such failure or could lead to the loss or
sabotage of data.
No change in overall risk during the year.
Mitigation:
The Board meets regularly with the management of the Manager and its
Operational Risk Management team to review internal control and risk reports,
which includes oversight of its own third party service providers. During the
year, the Audit Committee also met with a representative of the Manager's
internal audit function to discuss the outcome of its recent projects and
planned activities. The Manager's appointment is reviewed annually and the
contract can be terminated with six months' notice. The Manager has a business
continuity plan in place to ensure that it is able to respond quickly and
effectively to an unplanned event that could affect the continuity of its
business.
The Manager has outsourced certain functions (such as fund accounting
services) to State Street Bank and Trust Company ('State Street') and
supervision of such third party service providers, including the administrator
of the Manager's savings plans, has been maintained by the Manager. This
includes the review of IT security and heightened cyber threats.
The Manager also closely monitors the performance of its technology platform
to ensure it is functioning within acceptable service levels. Periodically,
the Audit Committee receives a presentation from the Manager's Chief
Information Security Officer on its information and cyber security programme.
The Board receives quarterly reports from the Depositary confirming safe
custody of the Company's assets and cash and holdings are reconciled to the
Custodian's records. The Custodian's internal controls reports are also
reviewed by the Manager and key points reported to the Audit Committee. The
Board also receives periodic updates from the Custodian on its own cyber
security controls.
The Depositary is specifically liable for loss of any of the Company's assets
that constitute financial instruments under the AIFMD.
Viability Assessment and Statement
In accordance with the UK Corporate Governance Code, the Board is required to
assess the future prospects for the Company and considered that a number of
characteristics of the Company's business model and strategy were relevant to
this assessment:
· The Company's investment objective and policy, which are subject
to regular Board monitoring, means that the Company is invested principally in
two diversified Portfolios of listed closed-end investment companies and the
level of borrowing is restricted.
· The Company's investments are principally in listed securities
which are traded in the UK on the London Stock Exchange's Main Market or other
regulated exchanges and which are expected to be readily realisable.
· The Company is a listed closed-end investment company whose
shares are not subject to redemptions by shareholders.
· Subject to shareholder continuation votes, the next of which will
be at the AGM in 2028 and five yearly thereafter, the Company's business model
and strategy is not time-limited.
Also relevant were a number of aspects of the Company's operational
arrangements:
· The Company retains title to all assets held by the Custodian
under the terms of a formal agreement with the Custodian and Depositary.
· The borrowing facility, which remains available until February
2027, is subject to a formal agreement, including financial covenants with
which the Company complied in full during the year.
· Revenue and expenditure forecasts are reviewed by the Directors
at each Board meeting.
· The operational robustness of key service providers and the
effectiveness of alternative working arrangements.
· Alternative service providers can be engaged at relatively short
notice if necessary.
The Directors also considered:
· The level of ongoing charges incurred by the Company which are
modest and predictable and, excluding the ongoing charges of underlying funds,
total 1.22% and 1.11% of average net assets (at 31 May 2025) for the Income
shares and Growth shares respectively.
· Future revenue and expenditure projections.
· The Company's ability to meet liquidity requirements given its
investment Portfolios consist principally of listed investment companies which
can be realised if required.
· The ability to undertake share buy-backs if required.
· Whether the Company's investment objective and policy continue to
be relevant to investors.
· Directors are non-executive and the Company has no employees and
consequently the Company does not have potential redundancy or other
employment-related liabilities or responsibilities.
· The uncertainty in markets and macroeconomic and geopolitical
concerns and the prospects for the Company's investment Portfolios.
These matters were assessed over a five year period to July 2030, and the
Board will continue to assess viability over rolling five year periods. A
rolling five year period represents the horizon over which the Directors
believe they can form a reasonable expectation of the Company's prospects,
although they do have due regard to viability over the longer term.
In considering the viability of the Company, the Directors carried out a
robust assessment of the principal risks and uncertainties which could
threaten the Company's objective and strategy, future performance and
solvency. The assessment also included a number of stress tests and scenarios
which considered the impact of inflation and the impact of market volatility
and a significant fall in equity markets on the Company's investment
Portfolios over a five year period. These risks, their mitigations and the
processes for monitoring them are set out in Principal Risks and Uncertainties
and in the Report of the Audit Committee and in notes 18 to 23 to the
financial statements in the Annual Report and Financial Statements.
The results demonstrated the impact on the Company's net assets and its
expenses and its ability to meet its liabilities over that period and adhere
to its financial covenants.
Based on their assessment, and in the context of the Company's business model,
strategy and operational arrangements set out above, the Directors have a
reasonable expectation that the Company will be able to continue in operation
and meet its liabilities as they fall due over the five year period to July
2030.
Responsibility Statement of the Directors in Respect of the Annual Report and
Financial Statements
We confirm that to the best of our knowledge:
· the financial statements, prepared in accordance with the
applicable set of accounting standards, give a true and fair view of the
assets, liabilities, financial position and profit or loss of the Company;
· the Strategic Report and the Report of the Directors include a
fair review of the development and performance of the business and the
position of the Company, together with a description of the principal risks
and uncertainties that the Company faces; and
· we consider the Annual Report and Financial Statements, taken as
a whole, is fair, balanced and understandable and provides the information
necessary for shareholders to assess the Company's position and performance,
business model and strategy.
On behalf of the Board
David Warnock
Chairman
25 July 2025
Notes
1. These financial statements of the Company, which are the
responsibility of, and were approved by, the Board on 25 July 2025, have been
prepared on a going concern basis in accordance with the Disclosure Guidance
and Transparency Rules of the Financial Conduct Authority, Financial Reporting
Standards (FRS 102) 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 audited
financial statements for the Company comprise the Income Statement and the
total columns of the Balance Sheet, the Cash Flow Statement and the Statement
of Changes in Equity and the Company totals shown in the notes to the
financial statements. The analysis showing the two separate Portfolios of
assets attributable to the Income shares and Growth shares is disclosed to
assist shareholders' understanding, but is additional to that required. The
Company's capital structure is explained in the Capital Structure section on
page 91 of the Annual Report and Financial Statements.
There have been no significant changes to the Company's accounting policies
during the year ended 31 May 2025.
The preparation of the Company's financial statements on occasion requires
management to make judgements, estimates and assumptions that affect the
reported amounts in the primary financial statements and accompanying
disclosures. These assumptions and estimates could result in outcomes that
require a material adjustment to the carrying amount of assets or liabilities
affected in the current or future periods, depending on the circumstance.
Management do not believe that any significant accounting judgements or
estimates have been applied to this set of financial statements that have a
significant risk of causing a material adjustment to the carrying amount of
assets and liabilities within the next financial year.
The Company's assets consist mainly of equity shares in closed-end investment
companies which are traded in the UK or another Regulated Stock Exchange and
in most circumstances, including in the current market environment, are
expected to be readily realisable.
The Company has a £10 million unsecured revolving credit facility, which is
available until 10 February 2027. The Board has set limits for borrowing and
regularly reviews the Company's gearing levels and its compliance with bank
covenants.
The Board has considered the Company's principal risks and uncertainties and
other matters, and has considered a number of stress tests and scenarios which
considered the impact of severe stock market volatility on shareholders' funds
and demonstrated that if required the Company had the ability to raise
sufficient funds so as to remain within its debt covenants and meet its
liabilities.
As such, and in light of the controls and review processes in place and the
operational robustness of key service providers, and bearing in mind the
nature of the Company's business and assets and revenue and expenditure
projections, the Directors believe that the Company has adequate resources to
continue in operational existence for a period of at least twelve months from
the date of approval of the financial statements. For this reason, the Board
continues to adopt the going concern basis in preparing the financial
statements.
2. Segmental Analysis
The Company carries on business as an investment trust and
manages two separate Portfolios of assets: the Income Portfolio and the Growth
Portfolio. The Company's Income Statement can be analysed as follows. This
has been disclosed to assist shareholders' understanding, but this analysis is
additional to that required.
Year ended 31 May 2025
Income Portfolio Growth Portfolio Total
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Gains on
investments - 22 22 - 1,578 1,578 - 1,600 1,600
Foreign exchange
losses - (4) (4) - - - - (4) (4)
Income 3,404 - 3,404 1,671 - 1,671 5,075 - 5,075
Investment management fee
(171) (257) (428) (119) (475) (594) (290) (732) (1,022)
Other expenses (301) - (301) (443) - (443) (744) - (744)
Return on ordinary activities before finance costs and tax
2,932 (239) 2,693 1,109 1,103 2,212 4,041 864 4,905
Finance costs (128) (194) (322) - - - (128) (194) (322)
Return on ordinary activities before tax
2,804 (433) 2,371 1,109 1,103 2,212 3,913 670 4,583
Tax on ordinary activities
- - - - - - - - -
Return # 2,804 (433) 2,371 1,109 1,103 2,212 3,913 670 4,583
Year ended 31 May 2024
Income Portfolio Growth Portfolio Total
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Gains on
investments - 1,543 1,543 - 9,632 9,632 - 11,175 11,175
Foreign exchange
losses - (6) (6) - - - - (6) (6)
Income 3,395 - 3,395 1,772 - 1,772 5,167 - 5,167
Investment management fee
(167) (250) (417) (113) (452) (565) (280) (702) (982)
Other expenses (261) - (261) (398) - (398) (659) - (659)
Return on ordinary activities before finance costs and tax
2,967 1,287 4,254 1,261 9,180 10,441 4,228 10,467 14,695
Finance costs (114) (171) (285) - - - (114) (171) (285)
Return on ordinary activities before tax
2,853 1,116 3,969 1,261 9,180 10,441 4,114 10,296 14,410
Tax on ordinary activities
- - - - - - - - -
Return # 2,853 1,116 3,969 1,261 9,180 10,441 4,114 10,296 14,410
# Any net revenue return attributable to the Growth Portfolio is transferred
to the Income Portfolio and a corresponding transfer of an identical amount of
capital is made from the Income Portfolio to the Growth Portfolio and
accordingly the whole return in the Growth Portfolio is capital. Refer to
the Statement of Changes in Equity.
3. Return per share
The return per share for the year ended 31 May 2025 is as follows:
Income shares Growth shares
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Return attributable to Portfolios
2,804 (433) 2,371 1,109 1,103 2,212
Transfer of net income from Growth Portfolio to Income Portfolio
1,109 - 1,109 (1,109) - (1,109)
Transfer of capital from Income Portfolio to Growth Portfolio
- (1,109) (1,109) - 1,109 1,109
Return attributable to shareholders 3,913 (1,542) 2,371 - 2,212 2,212
Return per share 7.44p (2.93p) 4.51p - 6.33p 6.33p
Weighted average number of shares in issue during the year (excluding shares
held in treasury)
52,569,505 34,946,339
The return per share for the year ended 31 May 2024 is as follows:
Income shares Growth shares
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Return attributable to Portfolios
2,853 1,116 3,969 1,261 9,180 10,441
Transfer of net income from Growth Portfolio to Income Portfolio
1,261 - 1,261 (1,261) - (1,261)
Transfer of capital from Income Portfolio to Growth Portfolio
- (1,261) (1,261) - 1,261 1,261
Return attributable to shareholders 4,114 (145) 3,969 - 10,441 10,441
Return per share 8.06p (0.28p) 7.78p - 28.33p 28.33p
Weighted average number of shares in issue during the year (excluding shares
held in treasury)
51,034,226 36,851,904
4. Dividends
2025
Income shares
Total
Dividends on Income shares Register date Payment date £'000
Amounts recognised as distributions during the year:
For the year ended 31 May 2024
- fourth interim dividend of 2.00p per Income share 14 June 2024 5 July 2024 1,036
For the year ended 31 May 2025
- first interim dividend of 1.85p per Income share 13 September 2024 11 October 2024 959
- second interim dividend of 1.85p per Income share 13 December 2024 10 January 2025 968
- third interim dividend of 1.85p per Income share 14 March 2025 11 April 2025 984
3,947
Amounts relating to the year but not paid at the year end:
- fourth interim dividend of 2.05p per Income share 13 June 2025 11 July 2025 1,105
The fourth interim dividend of 2.05p per Income share was paid on 11 July 2025
to shareholders on the register on 13 June 2025, with an ex-dividend date of
12 June 2024.
The Growth shares do not carry an entitlement to receive dividends.
5. (a) Tax on ordinary activities
Year ended 31 May 2025
Income Portfolio Growth Portfolio Total
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Current tax charge for the year being taxation on ordinary activities
- - - - - - - - -
Year ended 31 May 2024
Income Portfolio Growth Portfolio Total
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Current tax charge for the year being taxation on ordinary activities
- - - - - - - - -
(b) Reconciliation of tax charge
2025
Income shares Growth shares
Total
£'000 £'000 £'000
Gain on ordinary activities before tax: 2,371 2,212 4,583
Corporation tax at standard rate of 25% 593 553 1,146
Effects of:
Gains on investments not taxable (5) (394) (399)
Non-taxable UK dividend income (520) (378) (898)
Non-taxable overseas dividend income (250) (12) (262)
Expenses not utilised 182 231 413
Tax charge (note 5 (a)) - - -
6. The net asset value per Income share is calculated on net assets of
£60,975,000 (2024: £60,264,000), divided by 53,790,518 (2024: 51,723,251)
Income shares, being the number of Income shares in issue at the year-end
(excluding any shares held in treasury).
The net asset value per Growth share is calculated on net assets of
£91,405,000 (2024: £92,235,000), divided by 34,381,161 (2024: 35,572,608)
Growth shares, being the number of Growth shares in issue at the year-end
(excluding any shares held in treasury).
7. During the year, the Company bought back 50,000 (2024: nil ) Income
shares through the market for treasury at a cost of £58,000 (2024: £nil).
During the year, the Company resold 50,000 (2024: nil) Income shares from
treasury receiving net proceeds of £58,000 (2024: nil).
During the year the Company issued 1,870,000 (2024: 1,225,000) Income shares
from the block listing facility for net proceeds of £2,064,000 (2024:
£1,381,000).
During the year, valid conversion notices were received to convert
185,555 Income shares (2024: 232,005 Income shares) (which represented a value
of £210,000 (2024: £238,000)). These were converted into 81,313 Growth
shares (2024: 110,393 Growth shares) in accordance with the Company's Articles
and by reference to the ratio of the relative underlying net asset values of
the Growth shares and Income shares on the conversion date.
The Company's Articles allow for Deferred shares to be allotted as part of the
share conversion to ensure that the conversion does not result in a reduction
of the aggregate par value of the Company's issued share capital. The Deferred
shares were subsequently repurchased by the Company for nil consideration (as
they have no economic value) and as authorised by shareholders at the October
2024 AGM.
Since the year end, the Company has issued 575,000 Income shares from the
block listing facility receiving net proceeds of £686,000.
8. During the year, the Company bought back 1,255,000 (2024: 2,440,000)
Growth shares through the market for treasury at a cost of £3,219,000 (2024:
£5,682,000). During the year, the Company resold 150,000 (2024: nil) Growth
shares from treasury receiving net proceeds of £400,000 (2024: nil).
During the year, valid conversion notices were received to convert
167,760 Growth shares (2024: 130,734 Growth shares) (which represented a value
of £433,000 (2024: £282,000)). These were converted into 382,822 Income
shares (2024: 274,753 Income share) in accordance with the Company's Articles
and by reference to the ratio of the relative underlying net asset values of
the Growth shares and Income shares on the conversion date.
The Company's Articles allow for Deferred shares to be allotted as part of the
share conversion to ensure that the conversion does not result in a reduction
of the aggregate par value of the Company's issued share capital. The Deferred
shares were subsequently repurchased by the Company for nil consideration (as
they have no economic value) and as authorised by shareholders at the October
2024 AGM.
Since the year end, the Company has bought back a further 730,000 Growth share
for treasury at a cost of £1,943,000.
9. Financial Instruments
The Company's financial instruments comprise its investment
Portfolios, cash balances, bank borrowings and debtors and creditors that
arise directly from its operations. The Company, which is an investment trust,
holds two Portfolios of financial assets in pursuit of its investment
objective.
Listed and quoted fixed asset investments held are valued at fair
value.
The fair value of the financial assets and liabilities of the
Company at 31 May 2025 and 31 May 2024 is not materially different from their
carrying value in the financial statements.
The main risks that the Company faces arising from its financial instruments
are:
(i) market price risk, being the risk that the value of
investment holdings will fluctuate as a result of changes in market prices
caused by factors other than interest rate or currency rate movements;
(ii) interest rate risk, being the risk that the future cash
flows of a financial instrument will fluctuate because of changes in market
interest rates;
(iii) foreign currency risk, being the risk that the value of
investment holdings, investment purchases, investment sales and income will
fluctuate because of movements in currency rates;
(iv) credit risk, being the risk that a counterparty to a
financial instrument will fail to discharge an obligation or commitment that
it has entered into with the Company; and
(v) liquidity risk, being the risk that the Company may not be
able to liquidate its investments quickly or otherwise raise funds to meet
financial commitments.
Market Price Risk
The management of market price risk is part of the fund
management process and is typical of equity and debt investment. The
Portfolios are managed with an awareness of the effects of adverse price
movements through detailed and continuing analysis with an objective of
maximising overall returns to shareholders.
Interest Rate Risk
Floating Rate
When the Company retains cash balances the majority of the
cash is held in variable rate bank accounts yielding rates of interest linked
to the UK base rate which was 4.25% at 31 May 2025 (2024: 5.25%). There are no
other assets which are directly exposed to floating interest rate risk.
When the Company draws down amounts under its revolving
credit facility, interest is payable based on SONIA (which can vary on a daily
basis) plus a margin.
Fixed Rate
Movements in market interest rates will affect the market value of fixed
interest investments. Neither the Income Portfolio nor the Growth Portfolio
holds any fixed interest investments.
Foreign Currency Risk
The Company may invest in overseas securities which give rise
to currency risks. At 31 May 2025, the Income Portfolio had Euro denominated
investments valued at £1,603,000 (2024: £1,487,000), and a US Dollar
denominated investment valued at £1,167,000 (2024: £1,182,000). At 31 May
2025, the Growth Portfolio had a US Dollar denominated investment valued at
£946,000 (2024: £840,000).
As the remainder of the Company's investments and all other
assets and liabilities are denominated in sterling there is no other direct
foreign currency risk. However, although the Company's performance is
measured in sterling and the Company's investments (other than the above) are
denominated in sterling, a proportion of their underlying assets are quoted in
currencies other than sterling. Therefore movements in the rates of exchange
between sterling and other currencies may affect the market price of the
Company's investments and therefore the market price risk includes an element
of currency exposure.
Credit Risk
Credit risk is the risk that a counterparty to a financial instrument will
fail to discharge an obligation or commitment that it has entered into with
the Company. The Manager has in place a monitoring procedure in respect of
counterparty risk which is reviewed on an ongoing basis. The carrying amounts
of financial assets best represents the maximum credit risk exposure at the
Balance Sheet date.
Credit risk arising on transactions with brokers relates to
transactions awaiting settlement. Risk relating to unsettled transactions is
considered to be small due to the short settlement period involved and the
acceptable credit quality of the brokers used. The Manager monitors the
quality of service provided by the brokers used to further mitigate this risk.
All the assets of the Company which are traded on a recognised exchange are
held by JPMorgan Chase Bank, the Company's Custodian. Bankruptcy or insolvency
of the Custodian may cause the Company's rights with respect to securities
held by the Custodian to be delayed or limited. The Board monitors the
Company's risk by reviewing the Custodian's internal control reports as
described in the Report of the Audit Committee in the Annual Report and
Financial Statements.
The credit risk on liquid funds is controlled because the counterparties are
banks with acceptable credit ratings, normally rated A or higher, assigned by
international credit rating agencies. Bankruptcy or insolvency of such
financial institutions may cause the Company's ability to access cash placed
on deposit to be delayed, limited or lost.
Liquidity Risk
Liquidity risk is the risk that the Company will encounter difficulty in
realising assets or otherwise raising funds to meet financial commitments. The
risk of the Company not having sufficient liquidity at any time is not
considered by the Board to be significant, given that the Company's listed and
quoted securities are considered to be readily realisable.
The Company's liquidity risk is managed on an ongoing basis by the Manager in
accordance with policies and procedures in place as described in the Report of
the Directors. The Company's overall liquidity risks are monitored on a
quarterly basis by the Board.
The Company maintains sufficient investments in cash and readily realisable
securities to pay accounts payable and accrued expenses which are settled in
accordance with suppliers stated terms. The Company has a £10 million
unsecured revolving credit facility which is available until 10 February 2027
with The Royal Bank of Scotland International Limited. As at 31 May 2025, £7
million of the unsecured revolving credit facility was drawn down (2024: £2
million). The interest rate on the unsecured revolving credit facility is
variable, and a non-utilisation fee is payable on undrawn amounts.
10. Subject to certain minimum and maximum thresholds which may be set
by the Board of CT Global Managed Portfolio Trust PLC, from time to time,
shareholders have the right to convert their Income shares into Growth shares
and/or their Growth shares into Income shares upon certain dates, the next of
which will be on 30 October 2025 and then annually or close to annually
thereafter. Under current law, such conversions will not be treated as
disposals for UK capital gains tax purposes. The Conversion notice period
commences on 4 August 2025 and full details will be provided on the Company's
website and in the Company's Annual Report and Financial Statements.
11. The Board of Directors (the "Board") is considered a related party.
Under the UK Listing Rules, the Manager is also defined as a related party.
However, the existence of an independent Board of Directors demonstrates that
the Company is free to pursue its own financial and operating policies and
therefore, under the AIC SORP, the Manager is not considered to be a related
party for accounting purposes.
There are no transactions with the Board other than aggregated remuneration
for services as Directors as disclosed in the Directors' Remuneration Report
within the Annual Report and Financial Statements. The beneficial interests of
the Directors in the Income shares and Growth shares of the Company are
disclosed in the Annual Report and Financial Statements. There are no
outstanding balances with the Board at the year-end.
David Warnock is a non-executive director of ICG Enterprise Trust plc. The
Growth Portfolio had a holding of 190,000 shares (2024: 190,000 shares) in
this company valued at £2,394,000 at 31 May 2025 (2024: £2,314,000). Simon
Longfellow is a non-executive director of Artemis UK Future Leaders plc
(formerly Invesco Perpetual UK Smaller Companies Investment Trust plc). The
Income Portfolio had a holding of 405,000 shares (2024: 450,000 shares) in
this company valued at £1,490,000 at 31 May 2025 (2024: £1,935,000).
Transactions between the Company and the Manager are detailed in the notes to
the financial statements in the Annual Report and Financial Statements.
12. This statement was approved by the Board on 25 July 2025. It is not
the Company's full statutory accounts in terms of Section 434 of the Companies
Act 2006. The statutory Annual Report and Financial Statements for the year
ended 31 May 2025 has been approved and audited and received an unqualified
audit report and did not include a reference to any matters to which the
auditor drew attention by way of emphasis without qualifying the report, and
did not contain a statement under Section 498 of the Companies Act. This will
be sent to shareholders during August 2025 and will be available for
inspection at 6(th) Floor, Quartermile 4, 7a Nightingale Way, Edinburgh, EH3
9EG the registered office of the Company.
The statutory Annual Report and Financial Statements for the year ended 31 May
2024 also received an unqualified audit report and did not include a reference
to any matters to which the auditor drew attention by way of emphasis without
qualifying the report, and did not contain a statement under Section 498 of
the Companies Act.
The full Annual Report and Financial Statements are available on the Company's
website www.ctglobalmanagedportfolio.co.uk
(http://www.ctglobalmanagedportfolio.co.uk)
The Annual General Meeting of CT Global Managed Portfolio Trust PLC will be
held at 11.30am on 1 October 2025 at Columbia Threadneedle Investments, Cannon
Place, 78 Cannon Street, London EC4N 6AG.
The audited financial statements for the year to 31 May 2024
have been lodged with the Registrar of Companies and the audited financial
statements for the year to 31 May 2025 will be lodged with the Registrar of
Companies following the Annual General Meeting.
Alternative Performance Measures ('APMs')
The Company uses the following APMs. These are not statutory accounting
measures and are not intended as a substitute for statutory measures.
Discount/premium - the share price of an investment company is derived from
buyers and sellers trading their shares on the stockmarket. This price is not
identical to the net asset value ('NAV') per share of the underlying assets
less liabilities of the Company. If the share price is lower than the NAV per
share, the shares are trading at a discount. This usually indicates that there
are more sellers of shares than buyers. Shares trading at a price above NAV
per share are deemed to be at a premium, usually indicating there are more
buyers of shares than sellers.
31 May 2025 31 May 2024
Income Growth Income Growth
Shares shares shares shares
Net asset value per share (a) 113.36p 256.86p 116.51p 259.29p
Share price (b) 115.50p 258.00p 119.00p 254.00p
+Premium/ -discount (c = (b-a)/(a)) (c) +1.9% -3.0% +2.1% -2.0%
Average discount/premium to NAV during the financial year - this is the
average difference between the share price and NAV per share during the
financial year.
Ongoing charges - all operating costs (attributable to the relevant share
class of the Company), incurred and expected to be incurred in the foreseeable
future, whether charged to capital or revenue in the Company's Income
Statement, expressed as a proportion of the average daily net assets (of the
relevant share class of the Company) over the reporting year. In accordance
with the AIC methodology, the costs of buying and selling investments are
excluded in calculating ongoing charges, as are any performance fee, the cost
of the Company's borrowings, taxation, non-recurring costs and the costs of
buying back or issuing shares. The Company's ongoing charges calculated in
accordance with this methodology are shown in column A in the following
tables.
The AIC recommends that investment companies with a substantial proportion of
their portfolio invested in other funds and where the relevant information is
readily available should consider incorporating a relevant proportion of
ongoing charges of the underlying funds into its own ongoing charges figure.
These calculations are shown in column B in the following tables.
Ongoing charges calculations - Income Portfolio
31 May 2025 31 May 2024
Column A((1)) Column B((2)) Column A((1)) Column B((2))
£'000 £'000 £'000 £'000
Investment management fee 428 428 417 417
Other expenses 301 301 261 261
(Less)/plus non-recurring (costs)/credits (7) (7) 5 5
Ongoing charges of - 566 - 584
underlying funds
Total (a) 722 1,288 683 1,267
Average daily net assets (b) 59,328 59,328 56,934 56,934
Ongoing charges (c=a/b) (c) 1.22% 2.17% 1.20% 2.23%
( )
((1)) AIC methodology, excluding ongoing charges of underlying funds
((2)) AIC methodology, including ongoing charges of underlying funds
Ongoing charges calculations - Growth Portfolio
31 May 2025 31 May 2024
Column A((1)) Column B((2)) Column A((1)) Column B((2))
£'000 £'000 £'000 £'000
Investment management fee 594 594 565 565
Other expenses 443 443 398 398
(Less)/plus non-recurring (costs)/credits (15) (15) 3 3
Ongoing charges of underlying funds - 833 - 913
Total (a) 1,022 1,855 966 1,879
Average daily net assets (b) 91,989 91,989 86,982 86,982
Ongoing charges (c=a/b) (c) 1.11% 2.02% 1.11% 2.16%
((1)) AIC methodology, excluding ongoing charges of underlying funds
((2)) AIC methodology, including ongoing charges of underlying funds
Total return - the return to shareholders calculated on a per share basis
taking into account both any dividends paid in the year and the increase or
decrease in the share price or NAV in the year. The dividends are assumed to
have been re-invested in the form of shares or net assets, respectively, on
the date on which the shares were quoted ex-dividend.
The effect of reinvesting these dividends on the respective ex-dividend dates
and the share price total returns and NAV total returns are shown below.
31 May 2025 31 May 2024
Income Growth shares Income Growth
shares shares shares
NAV per share at start of financial year 116.51p 259.29p 116.41p 230.12p
NAV per share at end of financial year 113.36p 265.86p 116.51p 259.29p
Change in the year -2.7% 2.5% 0.1% 12.7%
Impact of dividend reinvestments† 6.9% n/a 6.9% n/a
NAV total return for the year 4.2% 2.5% 7.0% 12.7%
† During the year ended 31 May 2025 dividends totalling 7.55p went
ex-dividend with respect to the Income shares. During the year ended 31 May
2024 the equivalent figure was 7.59p.
31 May 2025 31 May 2024
Income shares Growth shares Income Growth
shares shares
Share price per share at start of financial year 119.0p 254.0p 121.0p 225.0p
Share price per share at end of financial year 115.5p 258.0p 119.0p 254.0p
Change in the year -2.9% 1.6% -1.7% 12.9%
Impact of dividend reinvestment† 6.7% n/a 6.9% n/a
Share price total return for the year 3.8% 1.6% 5.2% 12.9%
† During the year ended 31 May 2025 dividends totalling 7.55p went
ex-dividend with respect to the Income shares. During the year ended 31 May
2024 the equivalent figure was 7.59p.
Compound annual total return - converts the total return over a period of more
than one year to a constant annual rate of return applied to the compounded
value at the start of each year.
31 May 2025
Income Growth
shares shares
Indexed NAV total return at 31 May 2015 100.0 100.0
Indexed NAV total return at 31 May 2025 152.2 172.7
Period (years) 10.0 10.0
Compound annual total return 4.3% 5.6%
Yield - the total annual dividend expressed as a percentage of the year-end
share price.
31 May 2025 31 May 2024
Annual dividend (a) 7.60p 7.40p
Income share price (b) 115.5p 119.0p
Yield (c = a/b) (c) 6.6% 6.2%
Net gearing/net cash - this is calculated by expressing the Company's
borrowings less cash and cash equivalents as a percentage of shareholders'
funds. If the amount calculated is positive, this is described as net gearing.
If the amount calculated is negative, this is described as net cash.
31 May 2025 31 May 2024
Income Growth Income Growth
shares shares shares shares
£'000 £'000 £'000 £'000
Borrowings 7,000 - 7,000 -
Less cash and cash equivalents (1,332) (3,592) (1,200) (476)
5,668 (3,592) 5,800 (476)
Shareholders' funds 60,975 91,405 60,264 92,235
Net gearing/-net cash 9.3% -3.9% 9.6% -0.5%
For further information, please contact:
Adam Norris, Columbia Threadneedle Investment Business Limited
0131 573 8360
Paul Green, Columbia Threadneedle Investment Business
Limited 0131 573 8360
Ian Ridge, Columbia Threadneedle Investment Business
Limited 0131 573
8316
Sarah Gibbons-Cook, Quill
PR
07702 412680
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