REG-Miton Global Opp Plc: Half-year Report <Origin Href="QuoteRef">MIGO.L</Origin>
20/12/2017 10:20
Miton Global Opportunities plc
Half-Yearly Report for the six months ended 31 October 2017
Miton Global Opportunities plc (the “Company”) has today released its
Half-Yearly Report for the six months ended 31 October 2017.
The Half-Yearly Report and other information is available via
www.mitongroup.com/private/fund/miton-global-opportunities-plc/.
Enquiries:
David Barron
Miton Group plc
DDI: +44 (0) 203 714 1474
Email: david.barron@mitongroup.com
Frostrow Capital LLP
Company Secretary
DDI: +44 (0)203 709 8734
Email: info@frostrow.com
Financial Highlights
31 October 2017 30 April 2017
Net asset value per share 272.6p 248.7p
Share price 278.5p 242.3p
Premium / (Discount) 2.2% (2.6%)
Net asset value volatility over one year 4.9% 5.9%
Gearing 7.1% 8.0%
Ongoing charges 1.4% 1.4%
Total Return Performance to 31 October 2017
6 months % 1 year % 5 years %
Net asset value* 9.6 20.3 90.4
Share price * 14.9 33.3 114.2
Sterling 3 month LIBOR +2%** 1.2 2.3 13.2
Sources:
* Bloomberg. Net income reinvested GBP.
** Miton Asset Management Limited (sterling 3 month LIBOR +2%
at the beginning of the accounting period).
Investment Objective
The objective of the Company is to outperform sterling 3 month LIBOR plus 2%
(the Benchmark) over the longer term, principally through exploiting
inefficiencies in the pricing of closed-end funds. This objective is intended
to reflect the Company’s aim of providing a better return to shareholders
over the longer term than they would get by placing money on deposit.
The Benchmark is a target only and should not be treated as a guarantee of the
performance of the Company or its portfolio.
Investment Policy
The Company invests in closed-end investment funds traded on the London Stock
Exchange’s Main Market, but has the flexibility to invest in investment
funds listed or dealt on other recognised stock exchanges, in unlisted
closed-end funds (including, but not limited to, funds traded on AIM) and in
open-ended investment funds. The funds in which the Company invests may
include all types of investment trusts, companies and funds established
onshore or offshore. The Company has the flexibility to invest in any class of
security issued by investment funds including, without limitation, equity,
debt, warrants or other convertible securities. In addition, the Company may
invest in other securities, such as non-investment fund debt, if deemed to be
appropriate to produce the desired returns to shareholders.
The Company is unrestricted in the number of funds it holds. However, at the
time of acquisition, no investment will have an aggregated value totalling
more than 15% of the gross assets of the Company. Furthermore, the Company
will not invest more than 10%, in aggregate, of the value of its gross assets
at the time of acquisition in other listed closed-end investment funds,
although this restriction does not apply to investments in any such funds
which themselves have stated investment policies to invest no more than 15% of
their gross assets in other listed closed-end investment funds. In addition,
the Company will not invest more than 25%, in aggregate, of the value of its
gross assets at the time of acquisition in open-ended funds.
There are no prescriptive limits on allocation of assets in terms of asset
class or geography.
There are no limits imposed on the size of hedging contracts, save that their
aggregated value will not exceed 20% of the portfolio’s gross assets at the
time they are entered into.
The Board permits borrowings of up to 20% of the Company’s net asset value
(measured at the time new borrowings are incurred).
The Company’s investment objective may lead, on occasions, to a significant
amount of cash or near cash being held.
Chairman’s Statement
Performance
I am pleased to report that in the six months to 31 October 2017 covered by
this report the Company’s net asset value per share total return of +9.6%
and the share price total return of +14.9% comfortably outperformed the
Company’s Benchmark, sterling 3 month LIBOR +2%, which delivered a total
return of +1.2%.
A comprehensive review of the factor’s affecting the Company’s performance
during the period can be found in the Investment Manager’s Review later in
this report.
Share Price
As noted above the Company’s share price performance during the period was
particularly strong, reflecting a re-rating of the Company’s shares. At
the start of the period, the discount to net asset value per share was -2.6%
which compares to a premium to net asset value per share of 2.2% at the end of
the period.
This is of course largely due to the good performance of the portfolio, but is
also a result of a number of initiatives introduced by the Board which are now
bearing fruit, including the realisation opportunity to be presented next
year, the appointment of Numis Securities Limited as broker and the
appointment of Frostrow Capital LLP to help market your Company. Since these
steps were taken, the average daily trading volume in the Company’s shares
has significantly increased and a significant number of new shareholders have
been welcomed to the register.
Accordingly, the Board has implemented a share issuance programme to increase
the total issued share capital of the Company. The first issue was on 11
October and continued investor demand resulted in the issue of a total of
485,000 new shares to 31 October with a further 405,000 shares issued since
the half year end. This has raised new funds of £2.3 million. As at 31
October 2017, the Company had 25,764,985 shares in issue (31 October 2016:
25,279,985) and at the date of this report, the number had increased to
26,169,985. The funds were invested in line with the investment objective
and further details are contained in the Investment Manager’s Review.
During 2017 to date, the following steps have been taken to address the demand
for your Company’s shares:
• a block listing authority was obtained from the UK
Listing Authority in July 2017 to enable shares to be issued as cost
effectively as possible; and
• shareholder authority to issue shares equal to 10% of
the Company’s issued share capital on a non-pre-emptive basis was granted at
the Company’s AGM held in September 2017.
The Company will continue to be proactive in managing its share price
premium. Issuing new shares at a premium to net asset value per share is
accretive to existing shareholders and such share issuance also improves the
liquidity of the Company’s shares, controls the premium to net asset value
at which the shares trade and spreads the operating costs over a larger
capital base, reducing the ongoing charges ratio.
The Board
I stated in the Company’s last Annual Report that I had initiated a Board
refreshment process and it was announced at the Annual General Meeting held in
September (as well as in a stock exchange announcement that followed the
meeting) that the Board had appointed a director search agency to assist with
the search for a new Chairman and a new Audit Committee Chairman.
As reported in a recent stock exchange announcement, the Board has resolved to
appoint Richard Davidson as Chairman-elect and Katya Thomson as Chairman-elect
of the Audit Committee, with effect from 18 December 2017. We are very
pleased to have appointed directors with extensive industry and financial
expertise. Resolutions proposing their election together with resolutions
for those Directors standing for re-election will be considered by
shareholders at the Annual General Meeting of the Company to be held in
September 2018.
Having served on the Board since the launch of the Company, James Fox and I
intend to step down from the Board after a suitable handover period and the
effective date of our retirement will be announced to the stock exchange in
due course.
I would like to thank James for his very significant contribution during his
years on the Board and for his expertise as Audit Committee Chairman. I and
my fellow directors have all greatly enjoyed working with him.
It has been a great pleasure to have been a member of this Board and I should
like to thank very warmly all my Board colleagues for their support over my
tenure.
Outlook
The investment trust sector continues to be affected by the consolidation of
private client stockbrokers, as our investment manager explains in his
review. Against this background, he continues to find new opportunities for
the portfolio. Your Board continues to support fully the Investment
Manager’s strategy of exploiting the inefficiencies across the investment
company market to deliver capital growth over the long term.
Anthony Townsend
Chairman
20 December 2017
Investment Manager’s Report for the period ended 31 October 2017
Performance
The period under review saw a continuation of the long-term trend where asset
prices have been squeezed unhealthily higher. Very low interest rates leave
few alternatives for investors to own. Our net asset value rose from 248.7p to
272.6p. This represents a gain of 9.6%. In comparison, the FTSE All Share
index appreciated 3.9% and the MSCI World Index (in sterling) rose 5.8% in
capital terms. This outperformance is significant, as our investment style
tends to lag the general direction of mainstream markets in both directions.
Furthermore, a narrowing discount led to Miton Global Opportunities shares
appreciating by 14.9%.
Portfolio Themes
The three dominant themes within the portfolio remained constant; India,
residential property in Berlin, and listed private equity.
India
India’s economy continues to evolve under the leadership of Prime Minister
Modi. His reforms continue to reposition the country away from an informal
cash economy riven by corruption and bureaucracy. Short term hardships have
been wrought on the general population through disruption associated with the
introduction of a national goods and sales tax and an overnight move to rule
that the vast majority of bank notes were no longer legal tender.
Nevertheless, Modi has continued to do well in the polls. The man in the
street appears to buy into his vision. India is an emerging market where stock
picking can be particularly profitable. The Mumbai exchange was founded in
1875 and has thousands of companies listed on it. Investors can gain access to
most industrial sectors. Other emerging markets often offer less depth with
trading until recently being dominated by a narrow range of sectors such as
banks, utilities and breweries.
Residential Property in Berlin
It is without parallel that a city has moved from an urban wilderness to major
capital in one generation. Despite commentators expressing concern about the
extent of the rally in apartment prices and the backlash against Berlin’s
gentrification, we believe that residential property will continue to
appreciate in value. Apartments remain much cheaper than in other German
cities despite the fact that the young and the educated continue to flock to
the capital. We believe that in some respects Berlin has the scope to become a
world city, a possibility that is not remotely reflected in current prices.
The combination of a left wing government in city hall and the heavily
regulated rental market has created a gulf between the prices of property
available to rent and similar apartments that have the required permissions to
split and sell into private hands. These permissions are now extremely
difficult to obtain. Notwithstanding the bull market conditions, the two
trusts within our portfolio can exploit this differential by privatising much
of their estate.
Private Equity
In recent years, the private equity industry has been extraordinarily
successful in raising capital. Approaching one trillion US dollars has been
committed to the industry but is yet to be spent. This has created a buoyant
market in unlisted companies ripe for sale. Net asset values of the sector’s
specialist investment trusts, which own mature portfolios, will continue to
appreciate. The obvious concern has to be whether it is possible to reinvest
the proceeds of these disposals profitably at this point in the cycle.
Therefore we have focused on trusts that either are in wind down or are not
compelled to spend at these inflated levels.
Contributors
During the six months under review, many of the material contributors to our
portfolio’s progress have come from these dominant themes. Shareholders in
Dunedin Enterprise voted last year to move the trust into an orderly
liquidation. The managers have proved to be very successful in disposing of
businesses into the sellers’ market. Its shares rallied by nearly 30% during
the interim period and have continued to rise since. Pantheon, Standard Life
Private Equity and EPE Special Opportunities also made useful contributions.
India Capital Growth and Phoenix Spree Deutschland, representatives of the
other top down themes, enjoyed healthy moves with the latter’s shares
gaining nearly 30%.
Baker Steel Resources, which specialises in developing mining prospects, saw a
number of projects move towards production. Its shares rerated given improved
visibility about its prospects. Its largest investment is Siberian based
Polar Silver. If developed, Polar would become one of the largest producers of
the precious metal in the world. An encouraging feasibility study suggests
that there is a real chance that Polar becomes a viable mine. Such an
eventuality would lead to the Polar investment dwarfing Baker Steel itself,
which currently has a market capitalisation of less than £50 million.
Alpha Real Trust continued to take an entrepreneurial approach to the world of
property. It sold the bulk of its stake in a Madrid shopping centre that was
acquired opportunistically in the immediate aftermath of the global financial
crisis. Its current focus is on developing purpose built residential rental
properties in major cities such as Birmingham and Leeds. Despite Alpha’s
continued good performance, its shares continue to languish at a wide
discount.
Detractors
Inevitably, there were disappointments. Geiger Counter’s shares declined in
the absence of a recovery in the Uranium spot price. Phaunos Timber failed to
win its continuation vote, its shares fell in response to this development.
The new board face an uncertain process of selling plantations where they are
minority shareholders.
Sector Developments
The consolidation of the private client stockbroking community into a small
number of major chains continues apace. This has significant implications for
the investment trust movement. This is because these brokers were until
relatively recently the dominant buyer of trusts. Rathbones and Smith &
Williamson came close to merging during the summer. If this transaction had
been successful, it would have created an operation managing £52 billion
worth of assets. The scale of such an organisation would have dictated
increased standardisation of client portfolios. Inevitably, this would have
reduced the number of investment trusts owned by the organisation as it would
be impossible to source sufficient investment trust shares on the open market
to allocate across all portfolios. To put this challenge into context, FTSE
250 index constituent Halfords has a market capitalisation of £640 million.
Assuming that an investor needs to allocate at least 1% of their portfolio in
order “to move the needle” then a combination of Rathbones and Smith and
Williamson would in practice have to buy virtually every share in Halfords or
a similar sized company to make any investment worthwhile. Therefore the
process of consolidation is forcing private client brokers to steadily reduce
their exposure to investment trusts.
On a more positive note, there is increased interest from the self-directed
investor. During the last couple of years, the percentage of shares in Miton
Global Opportunities held on platforms such as Hargreaves Lansdowne and
Alliance Trust Savings, which are favoured, by this type of investor, has
increased from less than 10% to over 30%. Their interest is often triggered by
articles in periodicals such as Moneyweek, Investors Chronicle and Shares
Magazine that highlight the advantages enjoyed by investment trusts.
New Entrants
The fact that traditional private client brokers are restricting their
interest to only the largest trusts has led to an opportunity for us to
acquire positions in medium sized funds at wider than usual discounts. New
entrants of this type include; Henderson Opportunities, Atlantis Japan Growth
and Polar Capital Financials.
Departures
The only complete departure was Global Fixed Interest Realisation, which rose
sharply in the aftermath of disposing of an Indonesian beach resort. There
were also positive developments at Better Capital (2009) and Prospect Japan.
Better Capital returned the bulk of its assets to shareholders post the
realisation of its spectacularly successful investment in Gardners Aerospace.
Prospect Japan merged with its more liquid sister company listed in Tokyo.
Outlook
Looking forward there is an intense sense of déjà vu. Despite much
speculation that interest rates are about to rise, it is difficult to envisage
any increase proving meaningful. Nearly a decade of freely available easy to
service credit has seen debt levels surge in many corners of the financial
system. Economic activity would grind to a halt if interest rates returned to
levels even close to those historically considered normal. Therefore an
environment of excessively low interest rates is likely to persist for some
time yet. However, a point may be reached where investors decide that they
want much higher rates for lending to highly indebted nations, individuals and
corporations. Whilst for now there are no warning signs emanating from the
fixed interest world, such a development would send markets into a completely
different environment.
Nick Greenwood
Miton Asset Management Limited
20 December 2017
Portfolio Valuation as at 31 October 2017
Valuation £’000 % of portfolio
Taliesin Property Fund* 5,906 8.1
India Capital Growth Fund* 4,983 6.8
Pantheon International 4,875 6.7
Macau Property Opportunities Fund † 4,084 5.6
EPE Special Opportunities* 3,840 5.3
Establishment Investment Trust 3,551 4.9
Alpha Real Trust 3,138 4.3
Artemis Alpha Trust 3,080 4.2
Real Estate Investors* 2,857 3.9
Dunedin Enterprise Investment Trust † 2,667 3.7
Top 10 Investments 38,981 53.5
Baker Steel Resources Trust 2,569 3.5
New Star Investment Trust 2,363 3.2
Phaunos Timber Fund 2,359 3.2
Rights And Issues Investment Trust 2,357 3.2
Prospect Co 2,167 3.0
Phoenix Spree Deutschland 2,160 3.0
Aurora Investment Trust 1,813 2.6
Marwyn Value Investors 1,722 2.4
JPMorgan Indian Investment Trust 1,520 2.1
Standard Life Private Equity Trust 1,496 2.0
Top 20 Investments 59,507 81.7
Vinacapital Vietnam Opportunity Fund 1,495 2.0
Geiger Counter 1,403 1.9
Ecofin Global Utilities And Infrastructure Trust 1,248 1.7
Atlantis Japan Growth Fund 1,040 1.4
Polar Capital Global Financials Trust 833 1.1
Eredene Capital 774 1.1
Aseana Properties 773 1.1
City Natural Resources High Yield Trust 757 1.0
IP Japan Z 745 1.0
Origo Partners 612 0.8
Top 30 Investments 69,187 94.8
RENN Universal Growth Investment Trust† 429 0.6
Henderson Opportunities Trust 426 0.6
Chelverton Growth Trust 420 0.6
SQN Secured Income Fund 397 0.5
Downing Strategic Micro-Cap Investment Trust Plc/The Fund 396 0.5
Better Capital PCC † 302 0.5
Cambium Global Timberland*† 287 0.4
LMS Capital 242 0.3
Terra Catalyst Fund *† 220 0.3
Reconstruction Capital II*† 204 0.3
Top forty investments 72,510 99.4
Camper & Nicholsons Marina Investments* 184 0.3
Duke Royalty* 103 0.1
St Peter Port Capital*† 64 0.1
Origo Partners 47 0.1
New City Energy † 36 0.0
Auctus Growth 36 0.0
Alternative Asset Opportunity Traded Life † 27 0.0
Global Resources Investment Trust 23 0.0
Total investments in the portfolio 73,030 100.0
* AIM/ISDX listed.
† In liquidation, in a process of realisation or has a fixed life.
Capital Structure
At a General Meeting of the Company held on 9 September 2015, shareholders
approved proposals to remove the requirement for future continuation votes in
the Company’s Articles of Association and instead include provisions
enabling shareholders to elect, in 2018 and then at three year intervals, for
the realisation of all or part of their shareholding. The Company’s share
capital therefore comprises Ordinary shares of 1p each with one vote per share
and Realisation shares of 1p each, when in issue, with one vote per share.
The rights of holders of Ordinary shares (being shares in respect of which no
election for realisation has been made) and of Realisation shares (being
shares in respect of which an election for realisation has been made), when in
issue, will be as follows: the portfolio will be split into two separate and
distinct pools, namely a continuation pool comprising assets attributable to
the continuing Ordinary shares (the “Continuation Pool”) and a realisation
pool comprising the assets attributable to the Realisation shares (the
“Realisation Pool”). The assets in the Realisation Pool will be managed in
accordance with an orderly realisation programme with the aim of making
progressive returns of cash to holders of Realisation shares as soon as
practicable. The precise mechanism for any return of cash to holders of
Realisation shares will depend upon the relevant factors prevailing at the
time and will be at the discretion of the Board.
As at 31 October 2017 there were 25,764,985 Ordinary shares in issue and as at
the date of this report there were 26,169,985 Ordinary shares were in issue.
No Realisation shares are in issue.
Interim Management Report
Principal Risks and Uncertainties
The principal risks and uncertainties facing the Company were explained in
detail in the annual report for the year ended 30 April 2017. The Directors
are not aware of any new risks or uncertainties for the Company and its
investors for the period under review and moving forward, beyond those stated
within the Annual Report.
Related Parties Transactions
During the first six months of the current financial year, no transactions
with related parties have taken place which have materially affected the
financial position or the performance of the Company.
Going Concern
The Directors believe, having considered the Company’s investment objective,
risk management policies, capital management policies and procedures, the
nature of the portfolio and expenditure projections, that the Company has
adequate resources, an appropriate financial structure and suitable management
arrangements in place to continue in operational existence for the foreseeable
future and, more specifically, that there are no material uncertainties
pertaining to the Company that would prevent its ability to continue in such
operational existence for at least twelve months from the date of the approval
of this half year report. For these reasons, the Directors consider there is
reasonable evidence to continue to adopt the going concern basis in preparing
the Half-Yearly Report.
Directors Responsibility Statement
The Directors confirm that to the best of their knowledge:
* the condensed set of financial statements has been prepared in accordance
with the Financial Reporting Standard (FRS 104) ‘Interim Financial
Reporting’ and gives a true and fair view of the assets, liabilities,
financial position and return of the Company; and
* the interim management report includes a fair review of the information
required by sections 4.2.7R and 4.2.8R of the UK Listing Authority Disclosure
Guidance and Transparency Rules.
In order to provide these confirmations, and in preparing these financial
statements, the Directors are required to:
* select suitable accounting policies and then apply them consistently;
* make judgements and accounting estimates that are reasonable and prudent;
* state whether applicable UK Accounting Standards have been followed, subject
to any material departures disclosed and explained in the financial
statements; and
* prepare the financial statements on the going concern basis unless it is
inappropriate to presume that the Company will continue in business.
and the Directors confirm that they have done so.
Anthony Townsend
Chairman
20 December 2017
Condensed Income Statement
Six months to 31 October 2017 (Unaudited) Six months to 31 October 2016 (Unaudited) Year ended 30 April 2017 (Audited)
Note Revenue £’000 Capital £’000 Total £’000 Revenue £’000 Capital £’000 Total £’000 Revenue £’000 Capital £’000 Total £’000
Gains on investments - 6,089 6,089 - 11,233 11,233 - 16,936 16,936
Income 4 471 - 471 347 - 347 675 - 675
Management fee (212) - (212) (150) - (150) (331) - (331)
Other expenses (278) - (278) (205) - (205) (447) - (447)
(Loss) / Return before finance costs and taxation (19) 6,089 6,070 (8) 11,233 11,225 (103) 16,936 16,833
Finance costs (35) - (35) (36) - (36) (77) - (77)
(Loss) / Return before and after taxation (54) 6,089 6,035 (44) 11,233 11,189 (180) 16,936 16,756
(Loss) / Return per Ordinary share (0.2p) 24.0p 23.8p (0.2p) 44.4p 44.2p (0.7p) 67.0p 66.3p
The revenue loss, capital and total returns per Ordinary share are based on
25,309,279 shares, being the weighted average number of Ordinary shares in
issue at the end of the period (31 October 2016 & 30 April 2017: 25,279,985).
The total column of this statement is the Income Statement of the Company. The
supplementary revenue and capital columns have been prepared in accordance
with guidance issued by the AIC.
All revenue and capital items in the above statement derive from continuing
operations. There are no recognised gains or losses other than those passing
through the Income Statement and therefore no Statement of Total Comprehensive
Income has been presented.
The notes form an integral part of these financial statements.
Condensed Statement of Changes in Equity
Share Capital£’000 Capital Redemption reserve £’000 Share Premium account £’000 Special reserve £’000 Capital reserve £’000 Revenue reserve £’000 Total £’000
Six months to 31 October 2016 (Unaudited)
At 30 April 2016 252 60 16,727 10,008 19,548 (474) 46,121
Return/(loss) for the period - - - - 11,233 (44) 11,189
Balance at 31 October 2016 252 60 16,727 10,008 30,781 (518) 57,310
Six months to 31 October 2017 (Unaudited)
At 30 April 2017 252 60 16,727 10,008 36,484 (654) 62,877
New issue of shares during the period 6 - 1,323 - - - 1,329
Return/(loss) for the period - - - - 6,089 (54) 6,035
Balance at 31 October 2017 258 60 18,050 10,008 42,573 (708) 70,241
Year ended 30 April 2017 (Audited)
At 30 April 2016 252 60 16,727 10,008 19,548 (474) 46,121
Return/(loss) for the period - - - - 16,936 (180) 16,756
Balance at 30 April 2017 252 60 16,727 10,008 36,484 (654) 62,877
The notes form an integral part of these financial statements.
Condensed Statement of Financial Position
As at 31 October 2017 (Unaudited) £’000 As at 31 October 2016 (Unaudited) £’000 As at 30 April 2017 (Audited) £’000
Non-current assets
Investments 73,030 58,572 64,155
Current assets
Debtors 116 302 90
Cash 2,244 3,551 3,806
2,360 3,853 3,896
Creditors: amounts falling due within one year
Bank loan (5,000) (5,000) (5,000)
Other creditors (149) (115) (174)
(5,149) (5,115) (5,174)
Net current liabilities (2,789) (1,262) (1,278)
Net assets 70,241 57,310 62,877
Share capital and reserves
Share capital 258 252 252
Capital redemption reserve 60 60 60
Share premium account 18,050 16,727 16,727
Special reserve 10,008 10,008 10,008
Capital reserve 42,573 30,781 36,484
Revenue reserve (708) (518) (654)
Total shareholders’ funds 70,241 57,310 62,877
Net asset value per Ordinary share 272.6p 226.7p 248.7p
The net asset value per Ordinary share is based on 25,764,985 shares, being
the shares in issue as at 31 October 2017 (31 October 2016 and 30 April 2017:
25,279,985).
The notes form an integral part of these financial statements.
Condensed Cash Flow Statement
Six months to 31 October 2017 (Unaudited) £’000 Six months to 31 October 2016 (Unaudited) £’000 Year ended 30 April 2017 (Audited) £’000
Net cash outflow from operating activities (19) (1) (86)
Investing Activities
Purchases of investments (11,202) (4,168) (13,289)
Sales of investments 8,365 6,253 15,755
Net cash (outflow) / inflow from investing activities (2,837) 2,085 2,466
Financing Activities
New issue of shares 1,329 - -
Interest paid (35) (36) (77)
Net cash inflow / ( outflow) from financing activities 1,294 (36) (77)
(Decrease) / increase in cash (1,562) 2,048 2,303
The notes form an integral part of these financial statements.
Notes to the Condensed Interim Financial Statements
1.Accounting policies
These condensed financial statements have been prepared on a going concern
basis in accordance with the Disclosure Guidance and Transparency Rules of the
Financial Conduct Authority, FRS 104 ‘Interim Financial Reporting’, the
Statement of Recommended Practice ‘Financial Statements of Investment Trust
Companies and Venture Capital Trusts’ dated November 2014 and using the same
accounting policies as set out in the Company’s Annual Report for the year
ended 30 April 2017.
2.Financial Statements
The condensed financial statements contained in this interim financial report
do not constitute statutory accounts as defined in s434 of the Companies Act
2006. The financial information for the six months to 31 October 2017 has not
been audited or reviewed by the Company’s external auditors.
The information for the year ended 30 April 2017 has been extracted from the
latest published audited financial statements. Those statutory financial
statements have been filed with the Registrar of Companies and included the
report of the auditors, which was unqualified and did not contain a statement
under Sections 498(2) or (3) of the Companies Act 2006.
3.Going concern
After making enquiries, and having reviewed the investments, Statement of
Financial Position and projected income and expenditure for the next 12
months, the Directors have a reasonable expectation that the Company has
adequate resources to continue in operation for the foreseeable future. The
Directors have therefore adopted the going concern basis in preparing these
financial statements.
4.Income
Six months to 31 October 2017 £’000 Six months to 31 October 2016 £’000 Year ended 30 April 2017 £’000
Income from investments
UK dividend income 230 180 446
Unfranked dividend income 241 167 229
Total income 471 347 675
5.Fair value hierarchy
The methods of fair value measurement are classified into a hierarchy based on
reliability of the information used to determine the valuation.
Level 1 – Quoted prices in an active market.
Level 2 – Inputs other than quoted prices included within Level 1 that are observable (i.e. developed using market data), either directly or indirectly.
Level 3 – Inputs are unobservable (i.e. for which market data is unavailable)
The table below sets out the Company’s fair value hierarchy investments.
Level 1 £’000 Level 2 £’000 Level 3 £’000 Total £’000
As at 31 October 2017
Investments – Equities 70,407 - 1,266 71,673
Investments – Preference shares 612 - - 612
Investments – OEICs - 745 - 745
Total 71,019 745 1,266 73,030
As at 31 October 2016
Investments – Equities 54,082 - 985 55,067
Investments – Preference shares 2,815 - - 2,815
Investments – OEICs - 690 - 690
Total 56,897 690 985 58,572
As at 30 April 2017
Investments – Equities 57,968 - 1,012 58,980
Investments – Preference shares 4,476 - - 4,476
Investments – OEICs - 699 - 699
Total 62,444 699 1,012 64,155
Shareholder Information
Share dealing
Shares can be traded through a stockbroker or other authorised intermediary.
The Company’s Ordinary shares are traded on the London Stock Exchange. The
Company’s shares are fully qualifying investments for Individual Savings
Accounts (“ISAs”).
Share register enquires
The register for the Ordinary shares is maintained by Link Asset Services. In
the event of queries regarding your holding, please contact the Registrar on
0871 664 0300 (calls cost 12p per minute plus network extras; lines are open
9.00am to 5.30pm, Monday to Friday) (from outside the UK: +44 (0) 208 639
3399) or email: enquiries@linkgroup.co.uk. Changes of name and/or address must
be notified in writing to the Registrar: Shareholder Services, Link Asset
Services, The Registry, 34 Beckenham Road, Beckenham, Kent BR3 4TU, or via the
shareholder portal at www.signalshares.com.
Share capital and net asset value information
SEDOL number 3436594
ISIN number GB0034365949
Bloomberg symbol MIGO
The Company releases its net asset value per Ordinary share to the London
Stock Exchange on a daily basis.
Website: www.mitongroup.com/private/fund/miton-global-opportunities-plc/
Share prices
The mid-market prices are quoted daily in the Financial Times under
‘Investment Companies’.
Annual and Half-Yearly Reports
Copies of the Annual and Half-Yearly Reports are available from the Company
Secretary and are available on the Company’s website.
Investment Manager: Miton Asset Management Limited
The Company’s Investment Manager is Miton Asset Management Limited, a wholly
owned subsidiary of Miton Group plc. Miton Group is listed on the AIM market
for smaller and growing companies.
As at 31 October 2017, the Group had £3.6 billion of assets under management.
Investor updates in the form of monthly factsheets are available from the
Company’s website,
www.mitongroup.com/private/fund/miton-global-opportunities-plc/.
Association of Investment Companies
The Company is a member of the Association of Investment Companies.
Legal Entity Identifier
21380075RRMI7D4NQS20
Directors and Advisers
Directors (all non-executive) Registrar
Anthony Townsend (Chairman) Richard Davidson James Fox Michael Phillips Katya Thomson Hugh van Cutsem Registered Office 6th Floor Paternoster House 65 St. Paul's Churchyard, London EC4M 8AB Link Asset Services, The Registry 34 Beckenham Road, Beckenham Kent BR3 4TU Tel: 0871 664 0300* Fax: 020 8639 2342 Email: enquiries@linkgroup.co.uk Website: www.linkassetservices.com *Calls cost 12p per minute plus your phone company’s access charge and
may be recorded for training purposes. Calls outside the UK will be charged at the applicable international rate. Lines are open from 9.00 a.m. to 5.30 p.m. Monday to Friday excluding public holidays in England and Wales.
Company Secretary, Marketing & Administration Stockbroker and Financial Adviser
Frostrow Capital LLP 25 Southampton Buildings London WC2A 1AL Website: www.frostrow.com Numis Securities Limited The London Stock Exchange Building 10 Paternoster Square London EC4M 7LT
Alternative Investment Fund Manager Custodian
Miton Trust Managers Limited Paternoster House 65 St Paul’s Churchyard, London EC4M 8AB Bank of New York Mellon One Canada Square, London E14 5AL
Investment Manager Depositary
Miton Asset Management Limited Paternoster House 65 St Paul’s Churchyard, London EC4M 8AB Website: www.mitongroup.com Tel: 020 3714 1525 BNY Mellon Trust & Depositary (UK) Limited 160 Queen Victoria Street London EC4V 4LA
Independent Auditor
PricewaterhouseCoopers LLP 2 Glass Wharf Bristol BS2 0FR
Miton Global Opportunities plc An investment company as defined under Section 833 of the Companies Act 2006 Registered in England and Wales No.5020752
END
Neither the contents of the Company’s website nor the contents of any
website accessible from hyperlinks on this announcement (or any other website)
is incorporated into, or forms part of, this announcement.
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