Select Committee on Treasury Minutes of Evidence


Annex B

MONTHLY REPORTS ON ABERDEEN SCCEFs

CONTENTS

  Aberdeen Development Capital PLC

  The Income & Growth Trust PLC

  Murray Extra Return Investment Trust PLC

  Jersey Phoenix Trust Limited

  The European Monthly Income Trust Limited

  The American Income Trust Limited

  Real Estate Opportunities Limited

  Broadgate Investment Trust PLC

  Murray Global Return Trust PLC

  European Growth & Income Trust PLC

  Murray Emerging Growth and Income Trust PLC

  Danae Investment Trust PLC

  The Media & Income Trust PLC and Media Zeros PLC

  The Technology and Income Trust Limited

  St David's Investment Trust PLC

  Jove Investment Trust PLC

  Aberdeen Preferred Income Trust PLC

  Aberdeen High Income Trust PLC

  Leveraged Income Fund Limited

  The Enhanced Zero Trust PLC

Aberdeen Development Capital PLC

INSTITUTIONAL REPORT

August 2002



OBJECTIVE

  Aberdeen Development Capital PLC aims to provide shareholders with above average long-term capital and income appreciation principally by investing development capital into private companies throughout Britain, and by the acquisition of companies of other entities investing development capital.

MANAGER'S REPORT

  During July global equity markets continued to fall. ADC's limited exposure to listed stocks has meant that the recent downturn has not had a severe impact on the portfolio.

  ADC announced preliminary results for the year ended 31 May 2002, with the key highlights being:

    —  Net asset value per Ordinary share up by 8.8 per cent to 74.34p compared with a fall of 16.78 per cent in the FTSE Small Cap Index (ex Investment Trusts);

    —  Dividend per Ordinary share maintained at 5.2p;

    —  Part disposal of John Wood Group stake at IPO realises £3.86 million compared with cost of £0.2 million. A further sale post year-end realises a further £4.04 million against cost of £0.2 million.

  Over recent months, against a general backdrop of economic downturn the mangers believe that entry valuations in the private equity market are becoming increasingly attractive as vendor expectations and entry price earnings multiples fall. As such we remain confident that the quality and volume of dealflow will be maintained.

CALENDARYear end  31 MayAccounts published  AugustAnnual General Meeting  SeptemberDividend paid  November, January, May, AugustLaunch date  September 1986

TRADING DETAILS

SEAQ Code21330
Topic Page50020A
Epic CodeAVC
StockbrokerCazenove + 44 (0) 20 7588 2828
Market MakersCAZN, HSBC, ABN, WDR, CSCS
Internethttp://www.developmentcap.co.uk
  http://www.aberdeen-asset.com


Capital Structure at 31 July 2002

Ordinary shares
36,919,225
Zero Dividend Preference shares
30,206,638
Source: Aberdeen Asset Managers Ltd.


The Income & Growth Trust PLC

INSTITUTIONAL REPORT

August 2002

Performance Table




Top Ten Equity Holdings at 31 July 2002


Holding
%

BP Plc
5.7
Royal Bank of Scotland
3.9
GlaxoSmithKline
3.6
Shell Transport & Trading
3.6
HSBC Holdings
2.5
Vodafone Group
2.4
Intermediate Cap
2.4
Barclays
1.9
Gallaher Group
1.7
Abbey National
1.4

Total
29.1

Source: Aberdeen Asset Managers Ltd.


Top Ten Bond Holdings at 31 July 2002


Holding
%

HBOS 9.25% Non Cum Pref
4.0
Co-Operative Bank 9.25% Non Cum Irred Pref
2.5
Abbey National 10.375% Non Cum Pref
2.4
Royal & Sun Alliance 7.375% Cum Irred Pref
2.3
Kilroot Electric 9.5% Debenture 2006/2010
1.1
Greycoat 9.5% 30/09/03
1.0
Imperial Tobacco Finance 6.875% 13/06/12
1.0
Queens Moat Houses 10.25% 1st Mtg Deb 01/10/20
0.9
Peel (Holdings) 9.875% 1st Mtg Deb 30/04/11
0.9
Skandinaviska Ensklida Banken FRN 29/12/49
0.9

Total
17.0

Source: Aberdeen Asset Managers Ltd.


Total Number of Investments Held at 31 July 2002

Total Investments
112

Source: Aberdeen Asset Managers Ltd.


Objective

  The Company seeks to achieve long-term capital and income growth from investments primarily in higher yielding UK securities.

Manager's Report

  After the weak performance during June, equity investors were shown no respite in July as share prices again fell sharply. For the second month running yielding shares outperformed the FTSE All-Share Index only modestly. The pronounced weakness of share prices in recent weeks means that share prices are in many cases below their levels of five years ago. This current bear market is now the deepest for a generation.

  As well as lingering doubts about the quality of reported earnings; there has in recent weeks been a deterioration in the economic background. Some commentators are now concerned that the US economy is now weakening again after a strong start to 2002. In this country, previously strong retail sales are now slowing and the problems of manufacturing remain. What this does mean however, is that expectations of rising short-term interest rates occurring shortly in both the UK and US are now unlikely to be fulfilled. Inflation remains muted with the underlying rate in this country now only 1.5 per cent and goods prices falling.

  Concerns about the strength of economic growth predictably led to a weak performance from cyclical sectors such as Mining and Engineering. The Insurance and Life Assurance sectors both underperformed again due to concerns about their exposure to equity markets. The more defensive sectors such as Tobacco and Food Producers outperformed. The Telecomms sector also produced a better performance with the large stocks now seen as financially secure.

  In this very difficult environment for equities, the fixed interest portion of the portfolio again provided stability.

  Following a period of weakness the Manager has established a position in FKI, an engineering company that at current price levels offers an attractive yield. There has also been a modest increase in the holding of Greene King, the regional brewer and pub operation.





 
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Prepared 17 October 2002