WORLDWIDE FINANCIALS NEWS 11TH NOVEMBER '09Interim Management Statement – Blue Planet Worldwide Financials Investment TrustInterim Management Statement – Blue Planet Worldwide Financials Investment Trust Quarter Ended the 31st October 2009
Fund Manager's Review
In October our NAV fell to 97.9p per share, a fall of 18.2%. The Fund underperformed the benchmark index return of -4.4% over the month and reversed part of the last two months strong outperformance, as some of last month's strong gainers in the portfolio slipped back. The share price fell 5.3% to 89.0p. Over the past 3 months the NAV has increased 23.7% compared to a 7.2% rise in its benchmark. As of 31st October 2009, total shareholder funds were £13,776,244 and total borrowings were £7,500,000. A dividend of 1.2p per share, payable on 18th November 2009, has been proposed for approval by shareholders at the AGM to be held on 12th November 2009.
Despite a strong start to the third quarter reporting season by many companies in the US and internationally, a bout of nervousness hit the market towards the end of October. This was exacerbated by the significant capital raising and divestitures announced by ING as a results of its discussions with the European Commission to obtain approval of its state-aided restructuring plan. This had a negative impact on the share prices of all EU banks relying on state aid and our holding in Allied Irish Bank suffered. In our view the situation is somewhat different for Allied Irish Bank and we have remained invested in the stock. During the month we took profits on some US holdings and carried out some consolidation in the portfolio. As a result of the changes gearing ended this month at a lower level. We remain confident that the worst of the economic downturn is behind us, as leading economic indicators stay positive. We also maintain our conviction that the real investment opportunities lie in emerging markets where medium term prospects are so much better than in the developed markets. The following quarterly results (to the 30th September 2009) have been issued this month by companies within the portfolio: Goldman Sachs Group Net Income ("NI") rose 274% Deutsche Bank NI rose 238% South Indian Bank NI rose 40% LIC Housing Finance NI rose 27% Bank Mandiri NI rose 26% Bank Rakyat Indonesia NI rose 25% Bank Central Asia NI rose 14% DnB NOR NI fell 23% Lincoln National Corp NI fell 8% Morgan Stanley NI fell 91% MDM Bank also reported their IFRS results for the first half of 2009 in which the bank reported a loss of RUB 4.3m. Cumulative Performance (%) as of 31st October 2009
Source: Blue Planet, share price bid to bid, net income reinvested
Discrete Annual Performance (%) as of 31st October 2009
Source: Blue Planet, share price bid to bid, net income reinvested
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