Gulf
Investment Fund PLC
22
February 2024
Legal Entity Identifier:
2138009DIENFWKC3PW84
Gulf
Investment Fund plc (GIF)
Interim report for the six months ended 31 December
2023
- Net Asset Value up 7.60% vs the index which rose
3.20%.
- Final dividend of 4.05c to be paid on 22 March 2024
- GIF shares ended the period trading at a 14% discount to
NAV
Anderson Whamond, Chairman of Gulf Investment Fund plc,
said:
"The Hamas/Israel war hit GCC markets in October and caused
the fund's slight premium to NAV to widen to a significant discount
to NAV. That said Gulf Investment Fund continued to outperform,
with the net asset value of the shares beating the index by over
4%, and ending the period up 7.60%. The discount to NAV has
narrowed since October, and we hope the twice-yearly tender offers
combined with the long-term outperformance of the fund will
continue this trend.
"For investors this region is now about the traction that GCC
governments are achieving with their economic diversification
policies. There are good signs. While the IMF expects
overall GDP growth to be 1.5 per cent and 3.7 per cent in 2023 and
2024 respectively, non-oil GDP growth is expected to be higher at
4.3 per cent and 4.0 per cent in 2023 and 2024. All this is
helped by major infrastructure projects, tourism initiatives and
socio-economic reforms.
"A
final dividend of USD 4.05 cents per ordinary share for the year
ended 30 June 2023 was approved under the enhanced divided
policy. In December, Jubin Jose, manager of the fund, stepped
down and handed the role to his deputy Bijoy Joy. Patrick
Grant joined the board at the beginning of October 2023, with his
wide experience of the Gulf having spent over twenty years working
with Schroders and JP Morgan Asset Management in the
region.
"While global investors generally are underweight Qatar,
Kuwait, and Saudi, the weighting of the GCC in EM indexes will
increase as more IPOs are listed, governments sell stakes, and
foreign ownership limits increase."
++
Anderson Whamond
Chairman
Gulf Investment Fund Plc
+44 (0) 1624 692600
William Clutterbuck / Rachel Cohen
H/Advisors Maitland
+44 (0) 20 7379 5151
gulfinvestmentfund-maitland@h-advisors.global
Chairman's Statement
On behalf of the Board, I am pleased
to present the interim results for Gulf Investment Fund Plc (which
we also refer to as GIF, the Fund or the Company) for the six
months from July 2023 to the end of December 2023.
Results
The Fund continues to outperform,
this time with a 4.4% gain ahead of the benchmark, the S&P GCC
Composite Index, in the six months. In absolute terms GIF Net Asset
Value per Share, excluding dividend, was up 7.60% to US$ 2.54
compared to the index which rose 3.20%.
The share price fell 8.4% from US$
2.38 to US$ 2.18 in the period. This marked disparity between the
NAV rising and the share price falling was mainly caused by market
worries following the outbreak in hostilities in Israel and Gaza.
In June 2023 GIF shares were trading at a 1.1% premium to NAV while
in December 2023 the share price was trading close to an
historically high discount to NAV of 14.18%. Despite the outbreak
of hostilities in the wider region, equity markets ended
the second half of 2023 up 3.2%. The manager of the fund goes
into more detail about this below.
In the tender process in September
1,397,276 shares (3.37% of the issued share capital) were tendered
and cancelled. On a more positive note we issued 375,000 shares to
buyers when the share price was trading at a premium to NAV. The
board has considered introducing a share buy-back scheme but
believe that the twice yearly tenders should mean the discount to
NAV narrows over time.
During calendar year 2023
outperformance was 21.40%. Over the past three and five years GIF
has outperformed its benchmark by 44.2% and 84.6% in total return
terms respectively. Since the investment mandate was made Gulf-wide
in 2017 the shares have generated annualised returns of
20.52%.
At the Annual General Meeting on
22nd December 2023 a final dividend of USD 4.05 cents per ordinary
share for the year ended 30 June 2023 was approved. This dividend
is in line with our enhanced dividend policy and therefore equates
to 4% of the NAV of the fund as at the end of June 2022. The
dividend will be paid on 22 March 2024 to shareholders on the
register on 15 February 2024.
In December the lead manager, Jubin
Jose, stepped down and handed the role to his deputy Bijoy Joy.
They both worked together for 10 years on the day-to-day management
of the Fund. Bijoy Joy is supported by a team of managers and
research analysts. Also stepping down at the end of December was
non-executive director Neil Benedict. We thank both Jubin Jose and
Neil Benedict for their work and contribution over many years and
wish them well in the future.
Patrick Grant joined the board at
the beginning of October 2023. Patrick has wide
experience of the Gulf having spent over twenty years working with
Schroders and JP Morgan Asset Management in the
region.
Outlook, risks and uncertainties
We continue to see good investment
opportunities in the GCC region. The economic diversification
policies that have been adopted across the GCC to reduce reliance
on oil and gas are progressing. Major infrastructure projects,
tourism initiatives and socio-economic reforms all contribute to
this positive outlook. Of course there remain risks and
uncertainties. Top of these are geopolitical risks as to some
extent global macro-tensions seem to play out in the Gulf.
These and other risks - market risks, investment and strategy
risks, accounting, legal and regulatory risks, operational risks
and financial risks - are covered in the Business Review section of
our Annual Report each year.
I am pleased to be able to report
that at the time of writing the GIF NAV is now higher than before
the Hamas incursion into Israel in October, with the share price
recovered to that level.
Anderson Whamond
Chairman
21 February 2024
Director's Responsibility
Statement
The Directors confirm that, to the
best of their knowledge:
a)
the condensed set of financial statements has been prepared in
accordance with IAS 34;
b)
the interim management report and Chairman's statement include a
fair review of the information required by the Disclosure and
Transparency Rule 4.2.7R (indication of important events during the
first six months and a description of the principal risks and
uncertainties for the remaining six months of the year
respectively);
c)
in accordance with Disclosure and Transparency Rule 4.2.8R there
have been no related party transactions during the six months to 31
December 2023 and therefore nothing to report on any material
effect by such a transaction on the financial position or the
performance of the Company during that period; and there have been
no changes in this position since the last Annual Report that could
have a material effect on the financial position or performance of
the Company in the first six months of the current financial
year.
d)
in accordance with Disclosure and Transparency Rule 6.4.2, the
Company confirms that its Home State is the United
Kingdom.
The interim financial report has not
been audited by the Company's Independent Auditor.
Anderson Whamond
Chairman
21 February 2024
Report of the Investment Manager and
the Investment Adviser
Regional
overview
Country / Region
|
Index
|
31-Dec-22
|
30-Jun-23
|
1H2023
|
31-Dec-23
|
2H2023
|
FY2023
|
Qatar
|
DSM Index
|
10,681
|
10,075
|
-5.7%
|
10,831
|
7.5%
|
1.4%
|
Saudi Arabia
|
SASEIDX Index
|
10,478
|
11,459
|
9.4%
|
11,967
|
4.4%
|
14.2%
|
Dubai
|
DFMGI Index
|
3,336
|
3,792
|
13.7%
|
4,060
|
7.1%
|
21.7%
|
Abu Dhabi
|
ADSMI Index
|
10,211
|
9,550
|
-6.5%
|
9,578
|
0.3%
|
-6.2%
|
Kuwait
|
KWSEAS Index
|
7,292
|
7,030
|
-3.6%
|
6,817
|
-3.0%
|
-6.5%
|
Oman
|
MSM30 Index
|
4,857
|
4,768
|
-1.8%
|
4,514
|
-5.3%
|
-7.1%
|
Bahrain
|
BHSEASI Index
|
1,895
|
1,958
|
3.3%
|
1,971
|
0.7%
|
4.0%
|
S&P GCC
|
SEMGGCPD Index
|
139
|
143
|
2.9%
|
148
|
3.2%
|
6.2%
|
Brent
|
CO1 Comdty
|
86
|
75
|
-12.8%
|
77
|
2.9%
|
-10.3%
|
MSCI EM
|
MXEF Index
|
956
|
989
|
3.5%
|
1,024
|
3.5%
|
7.0%
|
MSCI World
|
MXWO Index
|
2,603
|
2,967
|
14.0%
|
3,169
|
6.8%
|
21.8%
|
Source: Bloomberg
Equity markets in the GCC rose by
3.2 per cent in the second half of 2023. GCC markets rose sharply
towards the final two months of the year, tracking global optimism.
The Hamas-Israel conflict initially caused
GCC markets to fall in October although the region ended up on the
six months.
Qatar, Saudi Arabia, Dubai, Abu
Dhabi, and Bahrain gained 7.5 per cent, 4.4 per cent, 7.1 per cent,
0.3 per cent and 0.7 per cent respectively. Oman fell 5.3 per cent,
and Kuwait was down 3.0 per cent.
Brent crude oil price ended the year
at ~US$77 per barrel, up 2.9 per cent in H2 2023.
GCC
becoming more than just oil
The IMF expects overall GCC GDP to
grow 1.5 per cent in 2023, non-oil GDP is expected to be 4.3 per
cent and 4.0 per cent in 2023 and 2024 respectively.
Non-energy sectors, notably in Saudi
Arabia and the UAE, have seen resurgence in travel and tourism
surpassing pre-pandemic levels. Saudi Arabia recorded a 156 per
cent increase in international arrivals in 2023 compared to 2019.
The Saudi government is aiming for tourism to contribute 10 per
cent of GDP by 2030.
Real
GDP Growth
|
2019
|
2020
|
2021
|
2022
|
2023E
|
2024E
|
GCC
|
4.2%
|
-4.7%
|
3.6%
|
7.9%
|
1.5%
|
3.7%
|
GCC oil GDP
|
2.3%
|
-5.4%
|
0.1%
|
12.1%
|
-2.8%
|
3.1%
|
GCC non-oil GDP
|
5.9%
|
-4.1%
|
5.2%
|
5.3%
|
4.3%
|
4.0%
|
IMF
GDP growth forecast
Source: IMF World Economic Outlook
and Regional Economic Outlook October 2023
GCC
IPOs
There were 46 IPOs in 2023, with
Saudi Arabia being home to 35 of these and UAE raising US$6.1 bn,
56 per cent of the of the total IPO proceeds. This contrasts with
IPOs globally which were down 8% on 2022.
GCC Economy
Saudi Arabia
US$
Billions
|
2021
|
2022
|
2023
|
2024E
|
Revenue
|
257.3
|
338.1
|
318.1
|
312.5
|
Expenditure
|
277.1
|
310.4
|
340.0
|
333.6
|
Surplus/ (Deficit)
|
(19.8)
|
27.7
|
(21.9)
|
(21.1)
|
Nominal GDP
|
833.6
|
1,108.5
|
1,102.9
|
1,136.3
|
Public Debt
|
250.1
|
264.0
|
273.1
|
294.1
|
Surplus/ (Deficit) - % of GDP
|
-2.4%
|
2.5%
|
-2.0%
|
-1.9%
|
Public Debt - % of GDP
|
30.0%
|
23.8%
|
24.8%
|
25.9%
|
Source: Saudi Arabia MoF; Table
contains budgeted numbers for respective year
The Saudi government plans to
continue with its expansionary policy with expenditures dedicated
to education, healthcare and social development initiatives along
with the country's major infrastructure projects.
Saudi Arabia won its bid to host the
Expo 2030 which is expected to attract more than 40 million
visitors and is expected to be implemented with a planned outlay of
SAR 29.3 billion (US$7.8 billion). The country was the lone bidder
to host the FIFA World Cup in 2034. This should lead to more
event-driven infrastructure spending.
Saudi Arabia is offering a 30-year
tax break to global companies moving regional headquarters to the
country, as part of its Vision 2030 agenda to diversify its economy
away from oil. The package includes a zero per cent rate for
corporate income tax and withholding tax related to approved
regional headquarters activities.
Qatar
US$
Billion
|
2018
|
2019
|
2020
|
2021
|
2022
|
2023E
|
2024E
|
Total Revenues
|
48.1
|
58.0
|
58.0
|
44.0
|
53.8
|
62.6
|
55.5
|
Total Expenditures
|
55.8
|
56.8
|
57.8
|
53.5
|
56.1
|
54.7
|
55.2
|
Surplus / (Deficit)
|
(7.7)
|
1.2
|
0.2
|
(9.5)
|
(2.3)
|
7.9
|
0.3
|
Oil Price Assumption
(USD/bbl)
|
45.0
|
55.0
|
55.0
|
40.0
|
55.0
|
65.0
|
60.0
|
Source: Qatar MoF; Table contains
budgeted numbers for respective year
Qatar's 2024 decrease in revenues is
largely on the back of a lower average oil price assumption of $60
per barrel for 2024 ($65 in 2023). Qatar is
set to invest over USD 19 billion in 395 projects spanning water
and electricity networks, public services, and road
infrastructure.
UAE
The UAE has approved a budget for
2024-2026 with a total estimated expenditure of US$52.3 billion.
The 2024 budget, recently endorsed, expects revenues of US$17.9
billion and expenses of US$17.5 billion, resulting in a projected
surplus of US$0.5 billion.
The UAE economy should continue to
see strong non-oil GDP growth into 2024. The tourism sector
achieved a 19.9 per cent year-on-year increase in visitors to
Dubai, totalling 15.4 million during the period of January to
November 2023.
The UAE industrial sector's
contribution to gross domestic product reached about AED 197 bn
(US$53.6 bn) in 2023 achieving 30 percent of Operation 300 bn's
target since it's 2021 launch.
Kuwait
Has approved US$5.6 bn in capital
spending to enhance crude output capacity and develop gas
resources. The initiative aims to increase oil production to 3.5
million barrels per day by 2030 and meet domestic gas
demand.
It has unveiled a four-year program
encompassing 107 major projects, spanning economic, social,
entertainment, and human resources sectors. The ambitious
initiative aims to address demographic challenges by revising
residence laws for foreigners and reducing the expatriate
population, which currently constitutes nearly 70 per cent of
Kuwait's 4.5 million residents. Notable projects include
participation in the Gulf Railway, the construction of Kuwait
Airport Terminal 2, and an increase in flight numbers from 240,000
to 650,000. The program also targets an increase in free natural
gas output from 521 million cubic feet to 930 million cubic feet
daily at the end of the program.
Oman
Has set a budget for 2024 with total
projected revenue of US$28.6 bn, based on an oil price of
US$60/barrel, expenditure of US$30.3 bn, resulting in a deficit of
US$1.7 bn or 1.5 per cent of GDP in 2024. Oil revenues in the 2024
budget constitute 54 per cent of total revenues, while the gas
sector's contribution amounts to 14 per cent and non-oil revenues
represent 32 per cent of total public revenues. The 2024 state
budget is geared towards enhancing the business environment and
increasing private sector involvement in economic
development.
Non-hydrocarbon growth accelerated
from 1.2 per cent in 2022 to 2.7 per cent in the January-June
period of 2023. This acceleration was attributed to the recovery of
Oman's agricultural and construction activities, along with a
resilient services sector.
Oman is strategically investing over
US$30 bn in the hydrogen economy, aiming to become one of the
world's leading hydrogen producers by 2030.
Embedded image removed - please
refer to the Company's website www.gulfinvestmentfundplc.com
Chart: GCC countries fiscal breakeven oil price
(2024 Est)
Other developments
Saudi minister expects US$600 bn in petrochemical investments
by 2030
Saudi Investment Minister Khaled Al
Falih announced 14 agreements and memorandums of understanding
between Saudi Arabia and Japan covering various sectors, including
water, telecommunications, information technology, energy,
financial services, and healthcare. 45 major Japanese companies are
participating, offering opportunities for large-scale projects in
the Kingdom.
UAE
financial sector slated to grow 13 per cent in
2023
The UAE's financial sector grew 30
per cent in Q2 2023, supporting economic diversification, and is
expected to grow by 13 per cent in 2023. The non-oil sector,
comprising 54 per cent of total GDP, increased 12 per cent in
Q2.
Qatar PMI
Qatar's non-energy sector
experienced improved business conditions towards the end of 2023,
according to the latest Purchasing Managers' Index (PMI) survey
data from the Qatar Financial Centre. The PMI registered 51.5 in
November 2023, marking a tenth consecutive month-on-month
improvement in business conditions and the first acceleration in
growth since July 2023.
Oman rating upgrade
S&P Global Ratings has raised
Oman's long-term foreign and local currency sovereign credit
ratings to "BB+" from "BB" with a stable outlook on "favourable"
oil sector dynamics, along with higher output in the
non-hydrocarbon sector. Moody's has upgraded the credit rating of
Oman to 'Ba1', with a stable outlook.
Bahrain rating
S&P Global Ratings has reduced
Bahrain's outlook from "positive" to "stable," citing concerns over
spending pressures. S&P maintained its "B+/B" ratings on the
country.
GIF
portfolio
Country allocation
Compared to the benchmark, GIF is
overweight in Qatar (24.8 per cent vs. S&P GCC weighting of
10.0 per cent) and Oman (2.2 per cent vs 1.0 per cent). GIF is
underweight Saudi Arabia (59.3 per cent vs benchmark weight of 61.4
per cent), UAE (7.1 per cent vs 17.7 per cent), Kuwait (6.5 per
cent vs 9.3 per cent). The fund's cash weighting was 0.1 per cent
on 31 December 2023.
During H2 2023, exposure to Kuwait
increased by 1.7 percentage points taking it to 6.5 per cent.
A 2.2 per cent allocation to Oman was made during this
period..
The fund's overweight in Qatar
arises from Qatar's macroeconomic resilience, growth prospects and
attractive valuations. As of 31st December 2023, Qatar was trading
on P/E multiple of 12.9 times (MSCI EM trades on 15.4
times).
GIF ended the quarter with 28
holdings: 16 in Saudi Arabia, 7 in Qatar, 2 in the UAE, 2 in Kuwait
and 1 in Oman.
Embedded image removed - please
refer to the Company's website www.gulfinvestmentfundplc.com
for a chart depicting country allocation
2023.
Top
10 Holdings
Company
|
Country
|
Sector
|
% NAV
Weighting
|
Saudi National Bank
|
Saudi Arabia
|
Financials
|
9.5%
|
Middle East Healthcare
|
Saudi Arabia
|
Health Care
|
6.2%
|
Saudi Awwal Bank
|
Saudi Arabia
|
Financials
|
6.1%
|
Qatar Navigation
|
Qatar
|
Industrials
|
5.4%
|
Integrated Holding
Company
|
Kuwait
|
Industrials
|
5.0%
|
Qatar Insurance Company
|
Qatar
|
Financials
|
4.7%
|
Qatar Islamic Bank
|
Qatar
|
Financials
|
4.4%
|
Banque Saudi Fransi
|
Saudi Arabia
|
Financials
|
4.3%
|
United Electronics
Company
|
Saudi Arabia
|
Consumer Discretionary
|
4.0%
|
Dubai Islamic Bank (DIB)
|
UAE
|
Financials
|
4.0%
|
Source: QIC
Embedded image removed -please refer
to the Company's website www.gulfinvestmentfundplc.com
for a chart depicting sector exposure.
GIF expanded its exposure to the
Financials, Materials and Healthcare sector taking advantage of
companies with attractive valuations and strong earnings growth
potential.
Exposure to Financials was increased
to 46.3 per cent of NAV in Q4 2023 from 35.0 per cent in Q2 2023,
with Gulf Bank of Kuwait, Arab National Bank - Shamal, Dubai
Islamic Bank and Bank Muscat added as new holdings to capitalize on
the growth potential and stability offered by these prominent
financial institutions.
Materials exposure increased to 5.5
per cent of NAV in Q4 2023 from 3.0 per cent in Q2 2023, mainly due
to adding new positions in Advanced Petrochemicals, City Cement and
Yamama Cement. With their strategic proximity and substantial
capacity, Yamama and City Cement are poised to capitalize on demand
stemming from major projects.
Exposure to Energy, Real Estate,
Utilities, Communication Services and Industrials sector were
reduced to capture better opportunities elsewhere.
Top
holdings:
Saudi National Bank (9.5 per cent of
NAV)
The Saudi National Bank (SNB)
is Saudi Arabia's largest financial institution and one of its most
powerful institutions. SNB will play a vital role in catalysing the
delivery of Vision 2030 of Saudi Arabia and supporting economic
transformation. SNB seeks to leverage the expanded scale and
digital capabilities to provide enhanced products and deliver
unparalleled customer experience. SNB's robust balance sheet,
resilient business model, and healthy liquidity position enhance
the bank's capability to compete locally and regionally.
Middle East Healthcare (6.2 per cent of NAV)
Middle East Healthcare Co (Saudi
German Hospitals) (MEH) is one of the largest hospital chains in
Saudi Arabia with nearly 1,300 beds in operation. MEH is
geographically diversified within KSA with growth expected from
increasing utilization rate of new hospitals in Dammam and Makkah,
and over 300 beds expansions upcoming in Riyadh and Jeddah. In
FY23, the revenue per patient from government clients is also
expected to improve with continued accreditations of the facilities
while volume flows will increase due to measures taken for improved
patient experience and insurance policy changes.
Saudi Awwal Bank (6.1 per cent of NAV)
Saudi Awwal Bank (SAB) offers
integrated financial and banking services, including corporate
banking, investment, private banking, and treasury. SAB is fifth
largest bank in Saudi Arabia with total loans market share of
around 10 per cent. SAB is 31 per cent owned by HSBC group and
effectively uses the HSBC backing to capture domestic and
international corporate growth. We expect SAB's EPS expansion will
be faster vs other GCC peers mainly driven by strong margins,
elevated loan growth and benign asset quality.
Qatar Navigation (5.4 per cent of NAV)
Qatar Navigation (Milaha) (QNNS) is
one of the largest and most diversified maritime and logistics
companies in the Middle East with a focus on providing marine
transport and services, as well as supply chain solutions. Higher
shipping rates and volumes should drive revenue from container
shipping and logistic business. In Logistic business, new global
network partnerships and work related to NFE project should bring
uplift in warehousing and freight forwarding activities. Ports
management (QTerminals) business should also benefit from volume
uptick/phase II expansion at the Hamad Port and growth associated
with the NFE project.
Integrated Holding Company (5.0 per cent of
NAV)
Integrated Holding Kuwait is the
fourth largest crane rental and leasing company in the world. It
provides services for logistics, heavy lift, engineering and
equipment requirements to MENA region.
GIF
Performance
In calendar 2023 GIF NAV grew 32.1
per cent, 22.1 per cent ahead of the index.
Over the past six months, the stock
markets in Qatar, Saudi Arabia, and Dubai rose 7.5 per cent, 4.4
per cent, and 7.1 per cent, respectively. This was fuelled by
economic indicators, government initiatives, and increased investor
confidence. Kuwait and Oman declined 3.0 per cent and 5.3 per
cent, respectively, caused by economic challenges, geopolitical
factors, and specific domestic issues.
Since the investment mandate widened
from a Qatari-focus to GCC in December 2017, NAV has risen 197.1
per cent (dividend included), as against the 88.5 per cent returns
recorded by S&P GCC total return index. On 31 December 2023,
the GIF share price was trading at a 13.2 per cent discount to NAV,
below the five-year average discount of 6.3 per cent.
Embedded image removed - please
refer to the Company's website www.gulfinvestmentfundplc.com
for a chart depicting GIF NAV v Reference
Index.
GCC Outlook
Gulf Cooperation Council (GCC) is a
region with a widespread economic diversification plans to reduce
reliance on oil. Major infrastructure projects, tourism initiatives
and socio-economic reforms all contribute to a positive outlook for
the region. The IMF expects GCC real GDP growth to be 1.5 per cent
and 3.7 per cent in 2023 and 2024 respectively. Non-oil GDP growth
is expected to be 4.3 per cent and 4.0 per cent in 2023 and
2024.
Tourism-related industries are a
driver of non-energy growth. Qatar saw the strongest growth,
globally, of international tourist arrivals in 2023 compared to
2019. The country set a visitor record by welcoming 4 million
visitors in 2023. Saudi Arabia was second with a 156 per cent
increase on 2019. Visitors to Dubai increased by 19.9 per cent in
the Jan-Nov 2023 period, with 15.4 million visitors, surpassing
pre-pandemic levels. The Middle East is the only world region to
surpass 2019 levels in this period.
OPEC predicts year-on-year growth of
oil demand of 2.5 million bpd in 2023 and 2.2 million bpd in 2024.
The IMF projects GCC inflation at 2.6 per cent and 2.3 per cent in
2023 and 2024, providing governments in the region with the room to
increase fiscal spending.
The GCC countries are actively
engaged in transformative socio-economic reforms. Post-pandemic,
there's notable progress in social and business-friendly reforms,
fiscal sustainability, and strategic investments in digital and
green infrastructure.
While global investors generally are
underweight Qatar, Kuwait, and Saudi, the weighting of the GCC in
EM indexes is expected to increase as more IPOs are listed,
governments sell stakes, and foreign ownership limits
increase.
Valuation:
Market
|
Market Cap.
|
PE (x)
|
PB (x)
|
Dividend Yield
(%)
|
|
|
|
|
|
|
|
|
Qatar
|
153.2
|
11.16
|
10.62
|
1.46
|
1.39
|
4.33
|
4.83
|
Saudi Arabia
|
2,998.7
|
20.11
|
17.53
|
2.52
|
2.37
|
3.38
|
3.72
|
Dubai
|
156.4
|
8.76
|
8.16
|
1.12
|
1.04
|
4.92
|
5.11
|
Abu Dhabi
|
744.8
|
17.96
|
17.96
|
2.34
|
2.34
|
3.33
|
3.33
|
Kuwait
|
142.7
|
14.61
|
12.33
|
0.54
|
N/A
|
4.28
|
4.50
|
S&P GCC
|
3,809.9
|
12.60
|
9.86
|
1.95
|
1.82
|
3.72
|
4.14
|
MSCI EM
|
20,360.3
|
14.08
|
11.84
|
1.60
|
1.44
|
3.06
|
3.09
|
MSCI World
|
66,789.4
|
19.26
|
17.61
|
3.06
|
2.83
|
1.99
|
2.10
|
Source: Bloomberg, as of 28 Dec
2023; Market Cap. as of 31 Dec 2023 for Qatar, Saudi Arabia,
S&P GCC; 29 Dec 2023 for Dubai and Abu Dhabi; 28 Dec 2023 for
Kuwait, MSCI EM and MSCI World.
Epicure Managers Qatar
Limited
Qatar Insurance Company S.A.Q.
21
February
2024
21 February 2024
Income Statement
|
|
(Unaudited)
|
(Unaudited)
|
|
Note
|
For the
period from
1
July 2023 to
31
December 2023
|
For the
period from
1 July 2022 to
31 December 2022
|
|
|
US$'000
|
US$'000
|
|
|
|
|
Income
|
|
|
|
Net (loss)/income in
investment at fair value through profit or loss
|
|
(1,151)
|
203
|
Distribution received from
subsidiary
|
|
10,000
|
-
|
Interest income on
loan
|
|
192
|
131
|
Total net income
|
|
9,041
|
334
|
|
|
|
|
Expenses
|
|
|
|
Expenses
|
5
|
336
|
384
|
Total operating expenses
|
|
336
|
384
|
|
|
|
|
Profit/(loss) before tax
|
|
8,705
|
(50)
|
|
|
|
|
Income tax expense
|
|
-
|
-
|
Retained profit/(loss) for the period
|
|
8,705
|
(50)
|
|
|
|
|
Basic and diluted profit/(loss) per share
(cents)
|
3
|
21.26
|
(0.12)
|
Statement of Comprehensive
Income
|
|
(Unaudited)
|
(Unaudited)
|
|
|
For the
period from
1
July 2023 to
31
December 2023
|
For the
period from
1 July 2022 to
31 December 2022
|
|
|
US$'000
|
US$'000
|
|
|
|
|
Loss/(profit) for the period
|
|
8,705
|
(50)
|
Other comprehensive income
|
|
-
|
-
|
Total comprehensive income/(expense) for the
period
|
|
8,705
|
(50)
|
Statement of Financial
Position
|
|
(Unaudited)
|
(Audited)
|
|
Note
|
At 31
December 2023
|
At 30 June
2023
|
|
|
US$'000
|
US$'000
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
Investment at fair value through
profit or loss - comprising:
|
|
1(a)
|
|
|
- equity interest in
subsidiary
|
|
92,616
|
93,766
|
|
- loan to
subsidiary
|
|
8,747
|
2,320
|
|
|
|
101,363
|
96,086
|
Other receivables and
prepayments
|
|
170
|
60
|
Cash and cash equivalents
|
11
|
215
|
881
|
Total assets
|
|
101,748
|
97,027
|
|
|
|
|
Equity
|
|
|
|
Issued share capital
|
|
401
|
411
|
Share premium
|
|
-
|
1,008
|
Reserves
|
|
101,269
|
95,457
|
Total equity
|
|
101,670
|
96,876
|
|
|
|
|
Current liabilities
|
|
|
|
Other payables and accrued
expenses
|
4
|
78
|
151
|
Total current liabilities
|
|
78
|
151
|
Total equity and liabilities
|
|
101,748
|
97,027
|
|
|
|
|
|
|
| |
Statement of Changes in
Equity
|
Share
capital
|
Share
premium
|
Reserves
|
Total
|
|
US$'000
|
US$'000
|
US$'000
|
US$'000
|
Balance at 1 July 2022
|
411
|
-
|
82,853
|
83,264
|
Total comprehensive income for the period
|
|
|
|
|
Loss for the period
|
-
|
-
|
(50)
|
(50)
|
Total comprehensive loss for the
period
|
-
|
-
|
(50)
|
(50)
|
Contributions by and distributions to owners
|
|
|
|
|
Dividends paid
|
-
|
-
|
(1,443)
|
(1,443)
|
Shares subject to tender
offer
|
(2)
|
-
|
(345)
|
(347)
|
Tender offer expenses
|
-
|
-
|
(41)
|
(41)
|
Proceeds from shares
issued
|
1
|
150
|
-
|
151
|
Total contributions by and
distributions to owners
|
(1)
|
150
|
(1,829)
|
(1,680)
|
Balance at 31 December 2022
|
410
|
150
|
80,974
|
81,534
|
|
|
|
|
|
|
Share
capital
|
Share
premium
|
Reserves
|
Total
|
|
US$'000
|
US$'000
|
US$'000
|
US$'000
|
Balance at 1 July 2023
|
411
|
1,008
|
95,457
|
96,876
|
Total comprehensive income for the period
|
|
|
|
|
Profit for the period
|
-
|
-
|
8,705
|
8,705
|
Total comprehensive income for the
period
|
-
|
-
|
8,705
|
8,705
|
Contributions by and distributions to owners
|
|
|
|
|
Dividends paid
|
-
|
-
|
(1,681)
|
(1,681)
|
Shares subject to tender
offer
|
(14)
|
(1,914)
|
(1,169)
|
(3,097)
|
Tender offer expenses
|
-
|
-
|
(43)
|
(43)
|
Proceeds from shares
issued
|
4
|
906
|
-
|
910
|
Total contributions by and
distributions to owners
|
(10)
|
(1,008)
|
(2,893)
|
(3,911)
|
Balance at 31 December 2023
|
401
|
-
|
101,269
|
101,670
|
Statement of Cash Flows
|
|
(Unaudited)
|
(Unaudited)
|
|
Note
|
For the
period from
1 July
2023 to
31
December 2023
|
For the
period from
1 July
2022 to
31
December 2022
|
|
|
US$'000
|
US$'000
|
|
|
|
|
Cash flows from operating activities
|
|
|
|
Received from investment at fair
value through profit or loss
|
|
3,765
|
2,344
|
Operating expenses paid
|
|
(408)
|
(470)
|
Increase in trade and other
receivables
|
|
(110)
|
(150)
|
Net
cash generated from operating activities
|
|
3,247
|
1,724
|
|
|
|
|
Financing activities
|
|
|
|
Proceeds from shares
issued
|
|
910
|
151
|
Dividends paid
|
|
(1,681)
|
(1,443)
|
Cash used in tender offer
|
|
(3,097)
|
(347)
|
Tender expenses
|
|
(43)
|
(41)
|
Net
cash used in financing activities
|
|
(3,911)
|
(1,680)
|
|
|
|
|
Net (decrease)/increase in cash and
cash equivalents
|
|
(664)
|
44
|
Effects of exchange rate changes on
cash and cash equivalents
|
|
(2)
|
3
|
Cash and cash equivalents at
beginning of period
|
|
881
|
67
|
Cash and cash equivalents at end of period
|
11
|
215
|
114
|
Notes to the Interim Financial
Statements
1(a)
Investment at fair value through profit or loss
|
31
December 2023
|
30 June
2023
|
|
US$'000
|
US$'000
|
|
|
|
Equity interest in
subsidiary
|
92,616
|
93,766
|
Loan to subsidiary
|
8,747
|
2,320
|
Total investment in subsidiary
|
101,363
|
96,086
|
The Company has one subsidiary,
Epicure Qatar Opportunities Holdings Limited ("the Subsidiary"),
which holds the portfolio of investments and has the investment
management and custodian agreements. The investment in subsidiary
is stated at fair value through profit or loss in accordance with
the IFRS 10 Investment Entity Consolidation Exception. The fair
value of the investment in Subsidiary is based on the year-end net
asset value of the Subsidiary as reported by the Administrator. The
loan to Subsidiary, with an aggregate principal amount of
US$8,746,777 (30 June 2023: US$2,320,179), is included within this
balance. The loan is subject to interest on the aggregate principal
amount drawn down from 1 January 2011, at the US prime rate per
annum. All loan repayments made by the Subsidiary will first be
deducted from the outstanding loan interest before being applied to
the principal balance. The loan is secured by fixed and floating
charges over the assets of the Subsidiary and is repayable on
demand. Additions and disposals regarding the investment in
subsidiary are recognised on trade date.
1(b) Financial
assets at fair value through profit or loss held by the
Subsidiary
The Subsidiary holds a portfolio of
quoted equities and P-Notes which are classified as fair value
through profit or loss. The fair value for quoted equities is based
on the current bid price ruling at the year-end without regard to
selling prices. The fair value of P-Notes is based on the quoted
period-end bid price of the underlying equity to which they
relate. P-Notes are promissory notes issued
by certain counterparty banks that are designed to offer the holder
a return linked to the performance of a particular underlying
equity security or market and used where direct investment in the
relevant underlying equity security or market is not possible for
regulatory or other reasons. To the extent dividends are received
on the securities to which the P-Notes are linked, these are taken
to investment income.
At 31 December 2023 the Subsidiary
held 20 P-Notes with a value of US$66,498,511, (June 2023 23
P-Notes US$52,441,930) held to obtain exposure to Saudi
Arabia.
Purchases and sales of investments
are recognised on trade date - the date on which the Company
commits to purchase or sell the asset. Investments are initially
recorded at fair value, and transaction costs for all financial
assets and financial liabilities carried at fair value through
profit and loss are expensed as incurred.
Gains and losses (realised and
unrealised) arising from changes in the fair value of the financial
assets are included in the income statement in the year in which
they arise.
Investments held by the Subsidiary
31 December 2023: Financial assets
at fair value through profit or loss; all quoted equity securities
or P-Notes:
Security
Shares
US$'000
Saudi National Bank*
|
937,079
|
9,645
|
|
Middle East Healthcare*
|
268,499
|
6,322
|
|
Saudi Awwal Bank B12LSY7*
|
610,669
|
6,163
|
|
Qatar Navigation (QNNS QD)
|
2,065,757
|
5,503
|
|
Integrated Holding Company
|
3,070,928
|
5,085
|
|
Banque Saudi Fransi - SHAMAL
05.06.19*
|
413,512
|
4,406
|
|
Qatar Islamic Bank (QIBK
QD)
|
753,000
|
4,301
|
|
United Electronics
Company*
|
171,500
|
4,098
|
|
Arab National Bank -
Shamal*
|
577,800
|
3,899
|
|
Saudi Ground Services*
|
384,395
|
3,701
|
|
Qatar Insurance (QATI QD)
|
5,131,406
|
3,607
|
|
Saudi Airlines Catering
Co*
|
104,803
|
3,600
|
|
Maharah Human Resources*
|
151,336
|
3,209
|
|
Commercial Bank of Qatar (CBQK
QD)
|
1,797,814
|
2,948
|
|
Seera Group Holdings*
|
390,400
|
2,811
|
|
Qatar National Bank (QNBK
QD)
|
624,949
|
2,796
|
|
Dubai Islamic Bank USD*
|
1,700,000
|
2,643
|
|
Jarir Marketing Co*
|
599,417
|
2,491
|
|
Qatar Gas Transport (QGTS
QD)
|
2,511,933
|
2,414
|
|
Fawaz Abdulaziz Al*
|
480,816
|
2,259
|
|
Yamama Cement*
|
243,475
|
2,214
|
|
Arabian Contracting
Services*
|
34,050
|
2,188
|
|
Bank Muscat
|
3,224,909
|
2,176
|
|
Advanced Petrochemicals*
|
204,302
|
2,128
|
|
Aramex Co USD*
|
2,700,000
|
1,654
|
|
Gulf Bank of Kuwait
|
1,727,272
|
1,576
|
|
Aramex (ARMX)
|
2,366,616
|
1,450
|
|
Dubai Islamic Bank (DIB)
|
910,590
|
1,416
|
|
Barwa Real Estate (BRES
QD)
|
1,710,963
|
1,351
|
|
City Cement*
|
224,000
|
1,239
|
|
Qatar Insurance USD*
|
1,500,000
|
1,055
|
|
Barwa Real Estate USD*
|
978,416
|
772
|
|
|
|
|
Total
101,120
|
|
|
|
|
|
|
|
| |
*P-Notes
2
Net Asset Value per Share
The net asset value per share as at
31 December 2023 is US$2.5352 per share based on 40,103,204
ordinary shares in issue as at that date (30 June 2023: US$2.3556
based on 41,125,480 ordinary shares in issue).
3
Profit per Share
Basic and diluted profit/(loss) per
share is calculated by dividing the profit attributable to equity
holders of the Company by the weighted average number of ordinary
shares in issue during the period:
|
31
December 2023
|
31
December 2022
|
|
|
|
Profit/(loss) attributable to equity
holders of the Company (US$'000)
|
8,705
|
(50)
|
Weighted average number of ordinary
shares in issue (thousands)
|
40,941
|
41,034
|
Basic profit/(loss) per share (cents
per share)
|
21.26
|
(0.12)
|
4
Other payables and accrued expenses
|
31
December 2023
|
30 June
2023
|
|
US$'000
|
US$'000
|
Administration fee
payable
|
40
|
40
|
Accruals and sundry
creditors
|
38
|
111
|
|
78
|
151
|
5
Charges and Fees
|
31
December 2023
|
31
December 2022
|
|
US$'000
|
US$'000
|
Administrator and Registrar's fees
(see below)
|
81
|
81
|
Audit fees
|
23
|
44
|
Custodian fees (see
below)
|
2
|
2
|
Directors' fees and
expenses
|
71
|
68
|
Directors' insurance
cover
|
19
|
22
|
Broker fees
|
27
|
22
|
Other
|
113
|
145
|
Other expenses
|
336
|
384
|
Investment management fees and
custodian fees borne by the Subsidiary were US$387,869 and
US$36,427 respectively (2022: US$346,166 and US$45,546
respectively).
Investment Manager's fees
Annual fees
The Investment Manager is entitled
to an annual fee of 0.80% of the net asset value of the
Company.
Management fees for the period ended
31 December 2023 amounted to US$387,869 (31 December 2022:
US$346,166) and the amount accrued but not paid at the period-end
was US$198,170 (31 December 2022: US$170,108). This fee is borne by
the Subsidiary.
Custodian fees
The Custodian is entitled to receive
fees of US$7,200 per annum and US$25 per processed
transaction.
In addition the Custodian is
entitled to receive fees of 8 basis points per annum in respect of
Qatari securities held by the Subsidiary and 10 basis points per
annum in respect of non-Qatari, GCC securities held by the
Subsidiary and $45 per settled transaction (Qatar)/$50 per settled
transaction (GCC excluding Qatar).
Custodian and sub-custodian fees for
the period ending 31 December 2023 amounted to US$38,027 (31
December 2022: US$45,546). This fee is borne by the
Subsidiary
Administrator and Registrar fees
The Administrator is entitled to
receive a monthly fee of US$12,000, payable quarterly in arrears.
The Administrator receives an additional fee of US$1,200 per month
for providing monthly valuation data to the Association of
Investment Companies.
The Administrator assists in the
preparation of the financial statements of the Company and provides
general secretarial services.
Administration fees paid for the
period ending 31 December 2023 amounted to US81,245 and US$8,594
for additional services (31 December 2022: US$80,555 and US$8,594
respectively).
Directors' Remuneration
The maximum amount of remuneration
payable to the Directors permitted under the Articles of
Association is £200,000 per annum.
Anderson Whamond as non-executive
chairman was entitled to receive an annual fee of
£35,000.
David Humbles as non-executive
chairman of the Audit Committee is entitled to receive an annual
fee of £26,250.
Neil Benedict as non-executive
director received £24,500 per annum and retired at the AGM on 22
December 2023.
Patrick Grant as non-executive
director, with effect from 1 October 2023, receives £24,500 per
annum.
The Directors are each entitled to
receive reimbursement of any expenses incurred in relation to their
appointment. Total fees and expenses paid to the Directors for the
period ended 31 December 2023 amounted to US$71,391 (31 December
2022: US$67,892).
6
Taxation
Isle of Man taxation
The Company is resident for taxation
purposes in the Isle of Man by virtue of being incorporated in the
Isle of Man and is subject to taxation at the rate of 0% in the
Isle of Man.
7
Related Party Transactions
Parties are considered to be related
if one party has the ability to control the other party or to
exercise significant influence over the other party in making
financial or operational decisions.
The Investment Adviser is Qatar
Insurance Company S.A.Q. The Company holds shares in Qatar
Insurance Company S.A.Q. (see note 1(a)). The Investment Adviser's
fees are paid by the Investment Manager.
The Investment Manager, Epicure
Managers Qatar Limited, is a related party by virtue of its ability
to make operational decisions for the Company (via the Subsidiary)
and through common Directors. Fees paid and payable to the
Investment Manager are disclosed in note 5.
Epicure Managers Qatar Limited is a
wholly owned subsidiary of the Investment Adviser, Qatar Insurance
Company S.A.Q.
8
The Company
Gulf Investment Fund plc was
incorporated and registered in the Isle of Man under the Isle of
Man Companies Acts 1931-2004 on 26 June 2007 as a public company
with registered number 120108C.
In the Circular published by the
Company on 25 March 2021 the Board announced the implementation of
an enhanced dividend policy targeting an annual dividend equivalent
to 4 per cent. of Net Asset Value at the end of the preceding year,
to be paid in semi-annual instalments.
The Net Asset Value per Share at 30
June 2022 was US$2.0256 per share and pursuant to the above stated
policy, the directors declared a first interim dividend for the
year ended 30 June 2022 of 4.05 cents per ordinary
share.
The dividend was paid on 20 October
2023 to ordinary shareholders on the register as at 15 September
2023 (the "Record Date").
The shareholders also approved a
dividend of 4.05 cents per share on 22 December 2023. This will be
paid to shareholders in March 2024.
The Company's agents and the Manager
perform all significant functions. Accordingly, the Company itself
has no employees.
9
The Subsidiary
The Company has the following
subsidiary company:
|
Country of
incorporation
|
Percentage
of shares held
|
Epicure Qatar Opportunities Holdings
Limited
|
British
Virgin Islands
|
100%
|
Epicure Qatar Opportunities Holdings
Limited is a wholly owned subsidiary of the Company and was
incorporated in the British Virgin Islands on 4 July 2007 under the
provisions of the BVI Companies Act 2001, as a limited liability
company with registration number 1415393. The principal activity of
the Subsidiary is holding investments on behalf of the
Company.
10
Significant Accounting Policies
The accounting policies applied by
the Company in these condensed interim financial statements are the
same as those applied by the Company in its financial statements
for the year ended 30 June 2023.
10.1 Basis of
presentation
These financial statements have been
prepared in accordance with International Financial Reporting
Standard ("IFRS") IAS 34 Interim
Financial Reporting. They do not
include all of the information required for full annual financial
statements and should be read in conjunction with the financial
statements of the Company as at and for the year ended 30 June
2023.
In accordance with IFRS 10,
'Consolidated financial statements', the Directors have concluded
that the Company falls under the definition of an investment entity
because the Company has the following characteristics:
· the
Company has obtained funds for the purpose of providing investors
with investment management services;
· the
Company's investing policy, which was communicated directly to
investors, is investment solely for returns from capital
appreciation and investment income; and
· the
performance of investments is measured and evaluated on a fair
value basis.
As a result, the Company does not
consolidate its subsidiaries, instead it is required to account for
these subsidiaries at fair value through profit or loss in
accordance with IFRS 9, 'Financial instruments' and prepares
separate company financial statements only.
The preparation of financial
statements in conformity with IFRS requires the use of certain
critical accounting estimates. It also requires the Board of
Directors to exercise its judgement in the process of applying the
Company's accounting policies. The financial statements do not
contain any critical accounting estimates.
10.2 Segment reporting
The Company is organised into one
operating segment, comprising the investment in a portfolio of
equity securities in the GCC region via the wholly owned
subsidiary. The financial performance of this portfolio is
presented to and monitored by the Board of Directors, being the
chief operating decision makers as defined under IFRS 8. All of the
Company's activities are interrelated, and each activity is
dependent on the others. Accordingly, all significant operating
decisions are based upon analysis of the Company as one segment.
The financial results from this segment are equivalent to the
financial statements of the Company as a whole.
11
Cash and Cash Equivalents
|
31
December 2023
|
30 June
2023
|
|
US$'000
|
US$'000
|
|
|
|
Bank balances
|
215
|
881
|
Cash and cash equivalents
|
215
|
881
|
12
Post Balance Sheet Events
There were no post balance sheet
events.
Unaudited consolidated financial
information
Consolidated Income
Statement
|
|
(Unaudited)
For the
period from 1 July 2023 to 31 December 2023
|
(Unaudited)
For the
period from 1 July 2022 to 31 December
2022
|
|
|
US$'000
|
US$'000
|
|
|
|
|
Income
|
|
|
|
Dividend income on quoted
equity
investments
|
|
561
|
1,175
|
Realised gain on sale of
financial
assets at fair value through profit or loss
|
|
9,196
|
1,108
|
Net changes in fair value on
financial assets at fair value through profit or loss
|
|
(239)
|
(1,593)
|
Commission
|
|
-
|
-
|
Interest income
|
|
11
|
68
|
Net foreign exchange loss
|
|
(12)
|
-
|
Total net income
|
|
9,517
|
758
|
|
|
|
|
Expenses
|
|
|
|
Investment manager's
fees
|
|
386
|
346
|
Other expenses
|
|
426
|
462
|
Total operating expenses
|
|
812
|
808
|
|
|
|
|
Profit/(loss) before tax
|
|
8,705
|
(50)
|
|
|
|
|
Income tax expense
|
|
|
-
|
Profit/(loss) for the year
|
|
8,705
|
(50)
|
|
|
|
|
Basic profit/(loss) per share (cents)
|
|
21.26
|
(0.12)
|
Diluted profit/(loss) per share (cents)
|
|
21.26
|
(0.12)
|
Notes:
1)
Consolidated information has been presented to assist the user in
interpreting the results of the Company and to be consistent with
previous years. This information consolidates the results of the
Subsidiary with the Company. It is based on IFRS requirements that
would apply if the IFRS 10 consolidation exception for investment
entities did not apply to the Company.
2) Where
relevant to understanding the risks of financial instruments held
by the Company certain disclosures relating to the subsidiary's
assets and liabilities have been given in the notes to the
Financial Statements and would be relevant to understanding the
consolidated position presented in this appendix.
Consolidated Statement of
Comprehensive Income
|
|
(Unaudited)
|
(Unaudited)
|
|
|
For the
period from
1
July 2023 to
31
December 2023
|
For the
period from
1 July 2022 to
31 December 2022
|
|
|
US$'000
|
US$'000
|
|
|
|
|
Profit/(loss) for the year
|
|
8,705
|
(50)
|
Other comprehensive income
|
|
|
|
Items that are or may be reclassified subsequently to profit
or loss:
|
|
|
|
Currency translation
differences
|
|
-
|
-
|
Total items that are or may be reclassified subsequently to
profit or loss
|
|
-
|
-
|
Other comprehensive income/(expense) for the year (net of
tax)
|
|
-
|
-
|
Total comprehensive income/(expense) for the
year
|
|
8,705
|
(50)
|
Consolidated Statement of Financial
Position
|
|
At 31
December 2023
|
At 30 June
2023
|
|
|
US$'000
|
US$'000
|
|
|
|
|
Assets
|
|
|
|
Financial assets at fair value
through profit or loss
|
|
101,120
|
94,622
|
Other receivables and
prepayments
|
|
238
|
328
|
Cash and cash equivalents
|
|
1,053
|
2,512
|
Total assets
|
|
102,411
|
97,462
|
|
|
|
|
Equity
|
|
|
|
Issued share capital
|
|
401
|
411
|
Share premium
|
|
-
|
1,008
|
Reserves
|
|
101,269
|
95,457
|
Total equity
|
|
101,670
|
96,876
|
|
|
|
|
Current liabilities
|
|
|
|
Other payables and accrued
expenses
|
|
741
|
586
|
Total current liabilities
|
|
741
|
586
|
Total equity and liabilities
|
|
102,411
|
97,462
|
Consolidated Statement of Changes in
Equity
|
|
|
|
|
|
|
|
|
Share
capital
|
Distributable reserves
|
Reserves
|
Share
premium
|
Other
reserves
|
Total
|
|
|
US$'000
|
US$'000
|
US$'000
|
US$'000
|
US$'000
|
US$'000
|
|
Balance at 1 July 2023
|
411
|
(7,330)
|
100,940
|
1,008
|
1,847
|
96,876
|
|
Total comprehensive income for the period
|
|
|
|
|
|
|
|
Profit for the period
|
-
|
-
|
8,705
|
-
|
-
|
8,705
|
|
Other comprehensive income
|
|
|
|
|
|
|
|
Foreign exchange translation
differences
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Total comprehensive income for the
period
|
-
|
-
|
8,705
|
-
|
-
|
8,705
|
|
Contributions by and distributions to owners
|
|
|
|
|
|
|
|
Dividends paid
|
-
|
-
|
(1,681)
|
-
|
-
|
(1,681)
|
|
Shares subject to tender
offer
|
(14)
|
(1,183)
|
-
|
(1,914)
|
14
|
(3,097)
|
|
Tender offer expenses
|
-
|
(43)
|
-
|
-
|
-
|
(43)
|
|
Proceeds from shares
issued
|
4
|
-
|
-
|
906
|
|
910
|
|
Total contributions by and
distributions to owners
|
(10)
|
(1,226)
|
(1,681)
|
(1,008)
|
14
|
(3,911)
|
|
Balance at 31 December 2023
|
401
|
(8,556)
|
107,964
|
-
|
1,861
|
101,670
|
|
Balance at 1 July 2022
|
411
|
(6,356)
|
87,366
|
-
|
1,843
|
83,264
|
Total comprehensive income for the period
|
|
|
|
|
|
|
Loss for the period
|
-
|
-
|
(50)
|
-
|
-
|
(50)
|
Other comprehensive income
|
|
|
|
|
|
|
Foreign exchange translation
differences
|
-
|
-
|
-
|
-
|
-
|
-
|
Total other comprehensive
expense
|
-
|
-
|
(50)
|
-
|
-
|
(50)
|
Contributions by and distributions to owners
|
|
|
|
|
|
|
Dividends paid
|
-
|
|
(1,443)
|
-
|
-
|
(1,443)
|
Shares subject to tender
offer
|
(2)
|
(347)
|
-
|
-
|
2
|
(347)
|
Tender offer expenses
|
-
|
(41)
|
-
|
-
|
-
|
(41)
|
Proceeds from shares
issued
|
1
|
-
|
-
|
150
|
-
|
151
|
Total contributions by and
distributions to owners
|
(1)
|
(388)
|
(1443)
|
150
|
2
|
(1,680)
|
Balance at 31 December 2022
|
410
|
(6,744)
|
85,873
|
150
|
1,845
|
81,534
|
|
|
|
|
|
|
|
|
|
|
| |
Consolidated Statement of Cash
Flows
|
|
(Unaudited)
|
(Unaudited)
|
|
|
For the
period from
1 July
2023 to
31
December 2023
|
For the
period from
1 July
2022 to
31
December 2022
|
|
|
US$'000
|
US$'000
|
|
|
|
|
Cash flows from operating activities
|
|
|
|
Purchase of investments
|
|
(65,147)
|
(143,023)
|
Proceeds from sale of
investments
|
|
67,852
|
142,662
|
Dividends received
|
|
744
|
958
|
Operating expenses paid
|
|
(878)
|
(904)
|
Interest received
|
|
36
|
68
|
Increase in trade and other
receivables
|
|
(110)
|
(149)
|
Net
cash generated from/(used in) operating
activities
|
|
2,497
|
(388)
|
|
|
|
|
Financing activities
|
|
|
|
Proceeds from share issue
|
|
910
|
151
|
Dividends paid
|
|
(1,681)
|
(1,443)
|
Cash used in tender offer
|
|
(3,097)
|
(347)
|
Tender expenses
|
|
(43)
|
(41)
|
Net
cash used in financing activities
|
|
(3,911)
|
(1,680)
|
|
|
|
|
Net decrease in cash and cash
equivalents
|
|
(1,414)
|
(2,068)
|
Effects of exchange rate changes on
cash and cash equivalents
|
|
(45)
|
55
|
Cash and cash equivalents at
beginning of the period
|
|
2,512
|
6,951
|
Cash and cash equivalents at end of the
period
|
|
1,053
|
4,918
|
Alternative performance measures
(APM)
An APM is a measure of performance
or financial position that is not defined in applicable accounting
standards and cannot be directly derived from the financial
statements. The Company's APMs are set out below and are
cross-referenced where relevant to the financial inputs used to
derive them as contained in other sections of the Interim Financial
report.
Ongoing charges ratio
Ongoing charges (%) = Annualised
ongoing charges divided by Average undiluted net asset value in the
period
Ongoing charges are those expenses
of a type which are likely to recur in the foreseeable future,
whether charged to capital or revenue, and which relate to the
operation of the investment company as a collective fund. Ongoing
charges are based on costs incurred in the period as being the best
estimate of future costs and include the annual management charge.
As recommended by the AIC in its guidance, ongoing charges are
calculated using the Company's annualised revenue and capital
expenses (excluding finance costs, direct transaction costs,
custody transaction charges, non-recurring charges and taxation)
expressed as a percentage of the average daily net assets of the
Company during the period. The inputs that have been used to
calculate the ongoing charges percentage are set out in the
following table:
Ongoing charges
calculation*
|
31
December 2023
US$'000
|
31
December 2022
US$'000
|
|
Management fee (note 5)
|
386
|
346
|
|
Other operating expenses
|
426
|
462
|
|
Total management fee and other
operating expenses for the period
|
812
|
808
|
|
Total annualised expenses
|
1,624
|
1,603
|
a
|
Average net assets in the
period
|
95,894
|
85,784
|
b
|
Ongoing charges (c=a/b)
|
1.69%
|
1.87%
|
c
|
*Including expenses of the
Subsidiary.
Discount and premium
Shares can frequently trade at a
discount to net asset value (NAV). This occurs when the share price
(based on the mid-market share price) is less than the NAV and
investors may therefore buy shares at less than the value
attributable to them by reference to the underlying assets. The
discount is the difference between the share price and the NAV,
expressed as a percentage of the NAV. As at 31 December 2023, the
share price was US$ 2.2000 and the unaudited NAV per share was US$
2.5353, giving a discount of 13.2%. A premium occurs when the share
price (based on the mid-market share price) is more than the NAV
and investors would therefore be paying more than the value
attributable to the shares by reference to the underlying
assets.
Period to date net asset value
This is the fall or rise, calculated
as a percentage, in value of the Company's assets attributable to
one ordinary share since 30 June 2023. The net asset value per
share is calculated by dividing 'equity shareholders' funds' by the
total number of ordinary shares in issue (excluding treasury
shares). The fall in period to date NAV is set out in the table
below:
Date
|
Equity
|
Number of
ordinary shares in issue
|
Net asset
value per share
|
|
|
30 June
2023
|
96,875,500
|
41,125,480
|
2.3556
|
|
a
|
31
December 2023
|
101,672,265
|
40,103,204
|
2.5353
|
|
b
|
PTD
Change in NAV (c=(b-a)/a)
|
|
|
|
7.63%
|
c
|