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 September 10, 2015 - 6:28 AM EDT
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All information is at 31 August 2015 and unaudited.
Performance at month end with net income reinvested


(24 Oct 2012)
Net asset value -3.9% -6.2% -4.9% 5.3% 31.9%
Share price -3.8% -4.1% -5.8% 4.7% 21.0%
Russell 1000 Value Index -4.6% -8.2% -6.3% 4.2% 49.3%
Source: BlackRock


At month end
Net asset value – capital only: 116.77p
Net asset value – cum income:                               117.65p
Share price:                                                109.50p
Discount to cum income NAV: 6.9%
Net yield*:                                                    3.8%
Total assets including current year revenue:                £94.2m
Target yield: 4.0p
Gearing:                                                        Nil
Options overwrite:                            15.67%
Ordinary shares in issue**: 80,039,044
Ongoing charges***: 1.3%


* Based on dividends of 1.10p per share declared on 6 May 2015 and 5 August 2015 and 1.00p per share each declared on 6 November 2014 and 12 February 2015.
** Excluding 20,322,261 ordinary shares held in treasury.
*** Ongoing charges represent the management fee and all other operating expenses excluding interest as a % of average shareholders’ funds for the year ended 31 October 2014.


Sector Analysis Total Assets (%)
Financials 26.7
Industrials 14.2
Health Care 13.8
Information Technology 8.4
Energy 8.3
Consumer Discretionary 7.9
Consumer Staples 7.6
Utilities 5.9
Materials 4.0
Telecommunication Services 2.6
Net current assets 0.6


Country Analysis Total Assets (%)
USA 96.2
France 1.5
United Kingdom 0.8
Australia 0.4
Canada 0.3
Netherlands 0.2
Net current assets 0.6


Ten Largest Investments
Company Country of Risk Total Assets (%)
JPMorgan Chase USA 4.2
Wells Fargo USA 4.0
Citigroup USA 3.3
Home Depot USA 2.9
General Electric USA 2.8
Pfizer USA 2.6
Exxon Mobil USA 2.5
Merck USA 2.3
United Health USA 2.3
Microsoft USA 2.2


Bob Shearer and Tony DeSpirito, representing the Investment Manager, noted:
For the one month period ended 31 August 2015 the Company’s NAV decreased by 3.9%, while the share price decreased by 3.8% (all in sterling).  The Company’s benchmark, the Russell 1000 Value Index, declined by 4.6% in the period.
The largest contributor to relative returns was stock selection in the consumer discretionary sector.  Notably, non-benchmark holding Home Depot, (+1.0% in GBP) proved to be resilient amid U.S. equity market volatility.  Stock selection in information technology and industrials also contributed to relative returns, as did stock selection in the consumer staples and telecommunication services sectors.
The largest detractor from relative performance for the month was a combination of stock selection and an underweight to the energy sector.  Notably, a sharp rebound in crude oil prices occurred during the final three trading days in August after nearly two months of downward price pressure. The upward inflection in crude prices proved to be costly given our higher quality orientation and overall underweight to the sector.  Stock selection in the materials, health care and financials sectors also modestly hurt relative returns for the month.
Transactions: We made several incremental changes to the portfolio during the month.  Notably, in industrials we trimmed our exposure to United Technologies Corporation and increased our exposure to General Electric Company.  Similarly, in information technology we reduced our exposure to IBM and used the proceeds to increase our allocation to Oracle.
As at 31 August 2015, the Company’s options exposure was 15.67% and the delta of the options was 95.26%.
The Company is currently overweight to the industrials, consumer discretionary, health care, materials and consumer staples sectors.  We maintain a neutral weighting in telecommunication services and are underweight to the energy, financials, information technology and utilities sectors.
10 September 2015
Latest information is available by typing on the internet, "BLRKINDEX" on Reuters, "BLRK" on Bloomberg or "8800" on Topic 3 (ICV terminal).  Neither the contents of the Manager’s website nor the contents of any website accessible from hyperlinks on the Manager’s website (or any other website) is incorporated into, or forms part of, this announcement.

Source: PR Newswire (September 10, 2015 - 6:28 AM EDT)

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