Financial Summary
| As at 30th September 2024 | |
| NAV per share | 388.5p |
| Total Assets | £466.2m |
| Ordinary shares | |
| Share price | 227.0p |
| Discount | 41.6% |
| Gross Yield | 1.4% |
| ‘A’ non-voting ordinary shares | |
| Share price | 221.0p |
| Discount | 43.1% |
| Gross Yield | 1.4% |
Chairman’s Report
Shareholder returns
The past six months have shown an increase in net asset value (NAV) from 378.8p at 31 March 2024 to 388.5p per share at 30 September 2024. In addition, shareholders have also received dividends of 1.6p per share during the period.
There has been a reduction of the discount from 44.6% to 41.6% for the Ordinary shares and from 46.1% to 43.1% for the ‘A’ Ordinary shares. More details about our results and longer-term performance can be found on further below as well as in our Portfolio Manager’s detailed review of markets and portfolio performance in his Report below.
Strategy
Alec Letchfield and his team at Hansa Capital Partners, supported by the Board, continue to search for new investment themes and opportunities with a view to diversification in these more uncertain times, manifested by a combination of high stock market valuations and a number of actual and potentially new hotspots of military activity. His recent moves into insurance and Japan have proven to be judicious.
Prospects
As my fellow shareholders may recall, I have been too cautious about markets in the recent past. With credit spreads at historically very tight levels, the gold price at record highs and many stock markets at or near all time highs and the anticipation of further interest rate reductions, it does seem to me that everything is pretty much priced to perfection.
Although I anticipate one or perhaps two more interest rate cuts in the US, Torsten Slok of Apollo constantly reminds his readers that wage growth is accelerating, the unemployment rate declined in September, retail sales remain solid, debit card transactions continue to accelerate, default rates and bankruptcies continue to decline, whilst the GDP is forecast to increase by 2.4% in 2024. All in all, not much sign that a US recession is imminent.
If, by some chance, the anticipated rate cuts do not come to pass, there could be quite a setback in stock market and bond valuations.
The price of gold continues to advance further than most financial commentators had forecast. The oil price, whilst volatile on a daily basis, continues to be held up by all the difficulties in the Middle East and increasing global consumption.
All in all a very challenging time for investors. I remain very confident that our team led by Alec Letchfield and his team will continue to find interesting risk-adjusted opportunities for shareholders.
Company Auditor
At the Company’s most recent AGM, PricewaterhouseCoopers LLP was appointed to audit the Company for the financial year ended 31 March 2025.
Shareholder Event
Many of you will know we held a shareholder presentation event at Brown’s Hotel on 25 September 2024. The presentation was live-streamed for those who were unable to attend in person, a recording of which can be viewed on the Company website.
The Board will hold a similar event in September 2025.