INTERNATIONAL FINANCIALS NEWS 10TH DECEMBER '09Interim Management Statement – Blue Planet European Financials Investment Trust
Interim Management Statement - Blue Planet European Financials Investment Trust
Quarter Ended the 30th November 2009
Fund Manager's Review
In November our NAV fell to 88.5p per share. This is a fall of 2.2%. The Fund
underperformed the benchmark index which was flat over the month, primarily due
to continued weakness in Irish stocks. The share price fell 11.0% to 65.0p.
Over the past 3 months the NAV has risen 4.5% compared to a 1.9% fall in its
benchmark. As of 30th November 2009, total shareholder funds were £14,204,515
and total borrowings were £7,200,000.
November ended on a weak note as concerns over the budget deficit in Greece and
the announcement of Dubai World's request to restructure its debt, highlighted
that the World's recovery from the banking crisis and subsequent recession will
have setbacks along the way. Our main concern lies with the UK. We believe the
UK is essentially bankrupt and its debts are so large it is doubtful it can
service them. This will become abundantly clear when the Whole of Government
Accounts are issued in early 2011. The UK fiscal deficit is projected to rise
to nearly 14% of GDP by April 2010, which would be the highest of all 33
industrial nations. The gap between the UK government spending and revenues
continues to diverge. We forecast a significant weakening of Sterling at some
point over the next couple of years, and aim to have the Fund's assets in
better run economies.
This month we reduced exposure to Russia, where our holdings are less liquid.
We invested in Standard Chartered and Prudential, both of which have strong
Asian exposure and in BBVA, which has a large footprint in Latin America, in
particular in Mexico.
The following quarterly results (to the 30th September 09) have been issued
this month by companies within the portfolio. Results from the Turkish banks
were particularly strong :
Turkiye Garanti Bankasi NI increased 65%
Turkiye Halk Bankasi NI rose 56%
BNP Paribas NI increased 45%
Asya Katilim Bankasi NI increased 25%
Bank of Cyprus NI fell 4%
Vozrozhdenie NI fell 79%
Man Group reported 6 month results to the end of September 2009, NI fell 51%
Bank of Ireland reported 6 months results to the end of September 2009, NI fell
73%
Cumulative Performance (%) as of 30th November 2009
Current 1 month 3 months 6 months 1 year 3 years 5 years
(p)
NAV 88.54 -2.2% 4.5% 28.6% 47.5% -51.9% 16.4%
Share Price - 65.00 -11.0% 0.0% 32.6% 14.9% -57.0% 29.2%
Total Return
Benchmark 111.97 -0.0% -1.9% 22.5% 40.7% -28.9% 8.2%
Discount/ -26.6 -19.3 -23.3 -28.0 -4.8 -17.0 -32.8
Premium (%)
Source: Blue Planet, share price bid to bid, net income reinvested
Discrete Annual Performance (%) as of 30th November 2009
Share price Benchmark
3Q/08 - 3Q/09 10.2% 10.2%
3Q/07 - 3Q/08 -45.8% -31.8%
3Q/06 - 3Q/07 -1.6% 4.1%
3Q/05 - 3Q/06 50.4% 26.7%
3Q/04 - 3Q/05 108.4% 27.0%
Source: Blue Planet, share price bid to bid, net income reinvested
Portfolio Information as of 30th November 2009
Security Security Country Valuation Weighting
Type Name £ %
55,255 Equity BP Global Financials-A Ireland 2,323,525 11.1
Class
53,905 Equity Erste Group Bank AG Austria 1,340,025 6.4
107,300 Equity Banco Bilbao Vizcaya Spain 1,228,420 5.9
Argentari
24,000 Equity BNP Paribas France 1,204,402 5.8
115,400 Equity Banco Santander SA Spain 1,201,623 5.7
161,056 Equity DNB NOR ASA Norway 1,099,300 5.3
24,906 Equity Deutsche Bank AG Germany 1,092,129 5.2
34,590 Equity Credit Suisse Switzerland 1,088,223 5.2
3,166,585 Equity MDM Bank R Russia 1,066,243 5.1
287,000 Equity Aviva Plc UK 1,062,761 5.1
69,900 Equity Standard Chartered plc UK 1,036,967 5.0
155,000 Equity Prudential Plc UK 968,750 4.6
221,525 Equity Bank of Cyprus Ltd Cyprus 946,118 4.5
247,700 Equity Turkyie Halk Bankasi Turkey 892,597 4.3
736,185 Equity Asya Katilim Bankasi AS Turkey 879,405 4.2
274,000 Equity Man Group plc UK 872,416 4.2
596,013 Equity Allied Irish Banks Plc Ireland 843,071 4.0
403,872 Equity Turkiye Garanti Bankasi Turkey 836,234 4.0
AS
30,229 Equity Bank Vozrozhdenie R Russia 729,782 3.4
330,000 Equity Bank Of Ireland Ireland 486,065 2.3
35,790 Equity DNB NOR ASA - Rights Norway 61,120 0.3
3,500 Equity Blue Planet Growth & UK 2,695 0.0
Income
21,261,871 101.6
Security Cash Denomination Valuation Weighting
Type Security Name £ %
Liquid Near Cash Assets GBP 0 0.0
Assets
Liquid Cash GBP -368,967 -1.7
Assets
Liquid Cash Other 29,664 0.1
Assets Currency
-339,303 -1.6
Total 20,922,568 100
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