BLP.L Regulatory News (BLP)

BLUE PLANET INTERNATIONAL FINANCIALS INVESTMENT TRUST PLC REGULATORY ANNOUNCEMENT Blue Planet International Financials InvestmentTrust plc Preliminary Announcement for the year ended 30 April 2013 The unedited full text of those parts of the Report and Accounts for the yearended 30 April 2013 which require to be published by DTR 4.1 is set out below. Registered number SC192153 Financial Record and Key Performance Indicators (KPI) As at 30 April (28 February)1 2013 2012 2011 2010 2009Total assets less current liabilities 30,719 9,044 12,678 17,485 11,782(excluding loans) (£'000)Loans (£'000) (8,303) (3,100) (4,100) (4,700) (3,389)Shareholders' funds (£'000) 22,416 5,944 8,578 12,785 8,393Net asset value per share (p) 45.31 37.05 53.47 79.70 52.32Share price (p) - (Bid) 27.00 22.00 35.00 57.00 23.00Discount (%) 40.4 40.6 34.6 28.5 56.0Gearing (%)2 36.9 51.0 43.1 - - Period to 30 April (28 February)1 2013 2012 2011 2010 2009 Revenue return available for shareholders 682 93 (70) 84 853(£'000)4Revenue return per share (p) 1.50 0.58 (0.44) 0.53 5.22Total return per share (p) 9.87 (16.42) (26.23) 30.60 (110.71)Proposed final dividend per share (net) (p) 1.37 - - - 3.22(note 4 )Dividend yield on our shares (%) 5.07 - - - 14.00Dividend yield on Benchmark Index (%)5 3.54 4.30 2.87 2.57 12.42Ongoing Charges (%) 3 3.89 5.55 4.82 4.28 3.36 The Board believes the above KPI-'s are of most interest to shareholders inmonitoring the performance of the Company. 1. The merger with Blue Planet Worldwide Financials Investment Trustplc and Blue Planet Financials Growth & Income No's 1-10 plc was completed inthe current year and comparative figures for 2009 to 2012 should be read withthis in mind. 2. Net debt as a percentage of shareholders' funds. 3. Ongoing charges figure has been prepared in accordance with theAIC's recommended methodology. 4. 2009 Includes VAT recovered of £181,000. 5. The Company changed its benchmark during the year to the FTSE 100Index to more appropriately reflect the diversified investment policyShareholders adopted at the merger. The FTSE 100 Index is a share index of the100 companies with the highest market capitalisation listed on the LondonStock Exchange. Portfolio Information At 30 April 2013 Valuation % of (£) Portfolio Equities United 856,629 Henderson Group plc Kingdom 1,412,581 4.7 326,400 Fortress Investment Group LLC United States 1,352,649 4.5 37,790 JP Morgan Chase & Company United States 1,191,090 4.0 6,250 Zurich Insurance Group AG Switzerland 1,121,673 3.7 120,850 Ford Motor Company United States 1,065,409 3.6 37,330 American International Group United States 994,986 3.3 48,472 SCOR SE France 945,715 3.2 60,000 EDF S.A. France 861,716 2.9 United 147,350 Catlin Group Ltd Kingdom 774,324 2.6 United 83,577 Genel Energy plc Kingdom 740,492 2.5 76,380 CNP Assurances France 695,628 2.3 United 96,397 Inmarsat plc Kingdom 695,022 2.3 1,225,900 China Construction Bank Corporation China 660,780 2.2 98,400 Genworth Financial Inc United States 634,471 2.1 45,500 GDF Suez S.A. France 627,845 2.1 157,000 Orexigen Therapeutics Incorporated United States 613,250 2.1 United 231,400 Resolution Ltd Kingdom 610,665 2.0 American Axle & Manufacturing 69,400 Holdings Incorporated United States 597,983 2.0 18,162 Total S.A. France 588,508 2.0 United 519,067 RSA Insurance Group plc Kingdom 577,722 1.9 United 119,600 BP plc Kingdom 557,814 1.9 United 180,000 Aviva plc Kingdom 549,180 1.8 United 18,200 Rio Tinto plc Kingdom 531,076 1.8 United 114,900 Amlin plc Kingdom 487,521 1.6 Czech 3,110 Komercni Banka AS Republic 380,520 1.3 30,528 Bank Vozrozhdenie Russia 315,247 1.1 19,583,867 65.5 Preference Shares United 793,000 Lloyds Banking Group 9.25% Kingdom 955,565 3.2 880,000 TNK-BP Holding Russia 672,932 2.2 iShares S&P U.S. Preferred Stock 25,400 Index United States 666,382 2.2 United 500,000 NatWest Bank 9% Kingdom 630,000 2.1 United 300,000 Standard Chartered 8.25% Kingdom 376,500 1.3 United 284,000 Santander UK plc 10.375% Kingdom 343,640 1.2 United 200,000 Santander UK plc 8.625% Kingdom 208,000 0.7 5,198 Bashneft OAO Russia 127,164 0.4 3,980,183 13.3 Bonds United 711,000 Aviva plc 6.875% 20/05/58 Kingdom 768,563 2.6 United 620,000 LloydsTSB plc. 7.625% 22/04/25 Kingdom 762,482 2.6 832,000 BNP Paribas 4.875% 29/10/49 France 633,754 2.1 Yorkshire Building Society 13.5% United 427,000 01/04/25 Kingdom 606,191 2.0 United 541,000 Co-operative Bank 9.25% 28/04/21 Kingdom 553,665 1.9 Royal Bank of Scotland plc 5.25% United 769,000 29/06/49 Kingdom 500,863 1.7 600,000 Societe Generale 8.75% Perpetual France 416,386 1.4 459,000 ING Groep 8% 29/04/49 Netherlands 402,466 1.3 United 350,000 Santander UK plc 10.0625% 29/10/49 Kingdom 392,000 1.3 Credit Agricole S.A. Preference Fund 551,000 7% 29/01/49 France 352,856 1.2 United 237,000 Friends Life Group 12% 21/05/21 Kingdom 321,865 1.1 250,000 Credit Agricole S.A. 7.375% 18/12/23 France 311,773 1.0 Royal Bank of Scotland plc 5.5% United 391,000 29/11/49 Kingdom 260,592 0.9 6,283,456 21.1 Listed Investments 29,847,506 99.9Cash 24,968 0.1Total 29,872,474 100.0At 30 April 2013 the portfolio yield, as reported tothe Association of Investment Companies, was 4.53% (30 April 2012 - 6.65%). Classification of Investments by Sector At 30 TeleApril Consumer communication Health Consumer Indus- Information Total Total2013 Financials Energy Discretionary Utilities Services Care Materials Staples trials Technology 2013 2012 % % % % % % % % % % % %United 37.3 4.4 - - 2.3 - 1.8 - - - 45.8 39.8KingdomUnited 16.1 - 5.6 - - 2.1 - - - - 23.8 38.6StatesFrance 11.2 2.0 - 5.0 - - - - - - 18.2 5.9Switzerland 3.8 - - - - - - - - - 3.8 3.4Russia 1.1 2.7 - - - - - - - - 3.8 2.6China 2.2 - - - - - - - - - 2.2 -Netherlands 1.3 - - - - - - - - - 1.3 2.2Czech 1.1 - - - - - - - - - 1.1 -RepublicIndonesia - - - - - - - - - - - 7.5Totals 2013 74.1 9.1 5.6 5.0 2.3 2.1 1.8 - - - 100.0 -Totals 2012 100.0 - - - - - - - - - - 100.0Benchmark* 20.2 17.4 6.6 4.5 7.3 8.7 9.7 17.7 6.9 1.0 100.0 -* Our benchmark is the FTSE 100 Index. Chairman's Statement Performance The year to 30th April 2013 was a good one for your Company. Ournet asset value ("NAV") rose 22.3% to 45.31p per share while our share price(bid) rose 22.7% from 22p to 27p. Add to that the dividend of 1.37 pence pershare that has been declared and this gives a total return to investors forthe year of 29.0%. This compares favourably with our benchmark index, the FTSE100, which produced a total return of 17.0% over the same period. In addition, we successfully completed the restructuring of theBlue Planet Investment Trusts (the merger). This was one of, if not, the mostcomplex merger of investment trusts ever undertaken involving the merger oftwelve listed entities into one. This has been a resounding success. It hasallowed us to reduce materially our operating costs and the new broaderinvestment policy, which shareholders approved at the time of the merger, hasallowed us to improve our investment performance, while reducing both the riskprofile of our portfolio and its volatility. Finally, it has also allowed usto resume dividend payments to shareholders, after a period of three years.The Board is recommending the payment of a dividend of 1.37p per share for theyear to 30th April 2013. This equates to a yield of 5.1% based on the year endbid price of 27p per share. Another statistic that highlights the success of the merger is thatin the period since its completion in June 2012, the Trust has generated atotal return of 33.6% while the FTSE 100 generated 21.3% over the same period.In other words, since the merger we have been generating returns for ourshareholders at a rate that is 1.58 times that of the FTSE 100. All our focusis now on ensuring that this strong performance continues. A key driver of this out-performance has been asset allocation andstock selection. Following the merger, we allocated our assets as follows:68.1% was invested in equities, 16.2% in preference shares, 14.5% in bonds and1.2% in cash. Within those individual segments the following stocks wereoutstanding: Hewlett-Packard Company ordinary shares where we made a 70%profit in four months; Royal Bank of Scotland plc 5.25% 29/06/49 bond where wemade 62%; BNP Paribas 4.875% 29/10/49 bond where we made a profit of 58%;Henderson Group plc ordinary shares where we made 48%; the Santander UK plc.8.625% and 10.375% preference shares where we made 47% and 41% respectively,Lloyds Banking Group plc preference shares where we made 39%; FortressInvestment Group LLC ordinary shares where we made 37%; Zurich Insurance GroupAG ordinary shares where we made 33%; NatWest Bank 9% preference shares wherewe made 31%; Sberbank Rossii ordinary shares where we made 29%; Ford MotorCompany ordinary shares where we made 26%; ENEL S.P.A ordinary shares where wemade 25%; and finally JP Morgan Chase & Company ordinary shares where we madea profit of 21%. In addition, many other stocks generated returns in the10-20% range for us. However, a number of events held back our performance. In ItalyMario Monti resigned as Prime Minister, this and the subsequent inconclusiveelections that followed led to a period of weak markets. Markets also lostground following the financial collapse of Cyprus and the subsequentintroduction of a tax on bank deposits has set a dangerous precedent. In theUS, political machinations around the "fiscal cliff" have not yet beenresolved and they too led to periods of market weakness and instability. At astock specific level our performance was hurt by our investment in TNK-BPHolding preference shares which fell 44% following the acquisition of itsparent company, TNK-BP Ltd, by Rosneft OAO (now the world's largest oilcompany by production) in March 2013. The cause of this fall was remarksattributed to the CEO of Rosneft, Mr Igor Sechin, in which he allegedlyexpressed the view that his company has no responsibility to minorityshareholders in TNK-BP Holding and that it intended to extract profits fromTNK-BP Holding by means of loans to Rosneft. This led to a sharp fall in thevalue of TNK-BP Holding preference shares. It also provoked a furious reactionleading to stinging criticism of Rosneft from many quarters including theDeputy Chairman of the Russian Central Bank and threats of legal action frominvestors. The upshot of this is that Rosneft has now entered intonegotiations with representatives of the preference shareholders and it ishoped that a satisfactory resolution to the matter can be found in the nearfuture. On the positive side, Central Banks across the world continued to print money, buy financial assets and cut interest rates in an attempt torebuild the balance sheets of banks, bolster economies and head off the worstexcesses of the banking crash and subsequent economic downturn. The American economy is recovering, as is its all-important housingmarket and U.S. corporate profitability is rising rapidly. China and other FarEastern economies continue to grow, albeit not quite at the heady pace ofrecent years. Banks and other financial companies across the world continue torebuild their balance sheets and credit is beginning to flow again, which is anecessary pre-requisite for economic recovery. Stability is slowly but surelyreturning to the world's financial markets. Even Japan now looks to be poisedto start growing again after a protracted period of no economic growth.However, sizeable risks remain particularly in Europe where Italy, Spain, andother countries may struggle to cope with their still burgeoning debts andthey may ultimately have to restructure those debts or default on them. Inshort, there is still a long way to go in achieving financial stability in theEurozone's fiscal and financial systems. Whatever the final outcome for theeuro or its membership, and irrespective of whether the UK remains a member ofthe EU, the UK must, as a matter of urgency, slash government expenditure, runa budget surplus and start repaying debt so as to reduce it from thedangerously high levels it has reached. Current government projected deficitsto 2017 imply a ratio of government debt to gross domestic product that willbe even more acute than many of the countries which we currently characterizeas "euro zone basket cases". We remain mindful that these issues couldseverely disrupt markets, and they are factored into our asset and stockselection. Despite these risks, we still see plenty of upside in these marketsalthough realising it will involve a high level of vigilance and a willingnessto rotate between geographic areas, asset classes and individual stocks. Outlook Your Fund has a high quality and well diversified portfolio ofinvestments which we believe is capable of generating good returns over thecoming years. The current year has got off to a good start with your fundcontinuing to outperform the FTSE 100 and we look forward to the future withconfidence. Unsurprisingly therefore, we believe that our shares, which at theyear-end traded on a 40% discount to NAV and offer a good dividend yield,offer good value. Dividend The Directors have declared a dividend of 1.37p for the year. Thisdividend is proposed to be paid to shareholders on the register on 28 June2013, which at the closing bid price of the Fund on 30th April 2013 equated toa 5.1% dividend yield. Borrowings, Gearing and Liquidity The Fund ended the year with gearing net of cash of 36.9%. The Companyfinanced its gearing by means of a £7m multi-currency, revolving loan facilitywhich it had with HSH Nordbank AG. This matured on 7th December 2012 and wasreplaced with credit facilities with KAS Bank N.V. and Interactive BrokersGroup Incorporated which will allow the Company to continue to gear itsportfolio. Under the Company's Articles of Association the maximum gearing the Companymay deploy is 75% of NAV although the Board has historically imposed a lowerceiling equal to 50% of NAV. In December 2012, it decided to relax thatceiling in order to allow the Fund to increase its exposure to the market andto maximise gains as the global economic recovery gathers pace. Generally, gearing beneficially affects the Company's NAV when the value ofits investments is rising, but adversely affects it in periods when the valueof investments is falling. Blue Planet Services and Price Information Sources Shareholders can view the Company's share price and additionalinformation about the Fund on the website of Blue Planet Investment ManagementLtd (www.blueplanet.eu) and the London Stock Exchange (www.londonstockexchange.com). To find the Company's share price on the LondonStock Exchange website go to the Home page and type "BLP" in the "PriceSearch" field. Change of Directors Ms. Victoria Killay and Mr. Kenneth Murray joined the Board ofDirectors on the 13th June 2012. Ms. Killay was formerly the Chairman of theBlue Planet Financials Growth & Income Investment Trusts No's 1-10 plc. Mr.Murray was previously a non-executive director of Blue Planet WorldwideFinancials Investment Trust plc. Kay Bendall and David Thomas resigned fromthe Board on completion of the merger. I look forward to welcoming you to the Annual General Meeting on26th July 2013. John Tyce Chairman 20 June 2013 Investment Manager's Report Portfolio Performance Analysis and Factors Affecting the Company Going Forward As has already been highlighted in the Chairman's Statement, theFund performed well in the year to 30th April 2013. There is little point inrepeating what the Chairman has already said, save to mention that our NAVrose 22.3% to 45.31p per share over the year, and our share price rose 22.7%from 22 pence per share to 27p. Add to that the dividend of 1.37 pence pershare that has been declared and this gives a total return to investors forthe year of 29.0%. The FTSE 100 index, our benchmark index, produced a totalreturn of 17.0% over the same period. The improvement that we had anticipated in financial markets andinvestor sentiment duly occurred. While the first months of the year werecharacterised by growing concerns over the Euro zone and sluggish globaleconomic growth, confidence gradually returned as the year went on and asCentral Banks implemented policies aimed at relieving pressures in thefinancial system and assisting a recovery. These essentially involved printingmoney, buying financial assets, providing liquidity to the banking system andreducing interest rates. These measures were successful in reducing risks,improving investor confidence and boosting the relative attractiveness ofequities, drawing money into that asset class although the side effects ofthose policies may yet come back to haunt Central Banks in the future. Whilstthose policies have had a beneficial effect on bond and share prices, webelieve that this is just the beginning so far as equities are concerned.During the financial crisis risk aversion amongst investors and hugeGovernment deficits drew unprecedented and enormous amounts of money intogovernment securities often at very low rates of interest and in some cases atnegative rates of interest. While this was sensible at the time thoseinvestments will increasingly look less attractive as it becomes obvious toinvestors that interest rates are going to rise and that many of those fixedrate securities will lose them money if they stick with them. As moreinvestors realise the inevitability of this they will sell bonds and acquireequities. Given the relatively small size of equity markets when compared tobond markets this will have a big impact on equity prices. Another factor thatwill over time lead to a rise in share prices, is a reduction in governmentdeficits. As austerity programs begin to work and government deficits arereduced, so too does the requirement to fund them. Consequently large numbersof bonds are going to be redeemed releasing large amounts of capital back intothe global economy which will then have to be invested. With the pool ofinvestible assets shrinking, which it will as the size of the government bondmarket shrinks, and the supply of capital available for investment increasing,this will inevitably lead to increased demand for other assets, includingequities, and this will drive up share prices. This macro-economic phenomenonwill have a large impact over time on share prices and underpins our bullishviews for equities. It will also induce inflation, an unwelcome but inevitableconsequence of loose monetary policy, which will also drive investors out ofbonds and into equities. However, even leaving that aside the case for equities iscompelling. For example, investors simply do not grasp the potential forbanks, which still constitute a large stock market sector, to grow theirprofits and the impact that rising interest rates will have on those profitsand their shares remain materially undervalued. That banks remain undervaluedis perhaps not that surprising given investors recent experiences of thesector which has included gross imprudence, huge write-offs and behaviour thathas at times been questionable. Nevertheless, that is the past and banks arenow very different creatures, both financially and culturally. Elsewhere, theglobal economic recovery has barely got going and given the severity of thedownturn that preceded it and the unprecedented amounts of liquidity injectedinto the global financial system by Central Banks we believe that the recoverywill be long lasting. While it may be slow initially, held back by the need ofgovernments and individuals to reduce expenditure and repay debt, it will overtime gain momentum and blossom into a full scale recovery as gearing isreduced to more manageable levels. This will drive up corporate earnings andshare prices and we believe that these factors along with the secondaryeffects of Central Bank monetary policies, which we mentioned earlier, supportour view that the recovery in equity markets may well last for several years.Consequently, we are of the view that the coming years are likely to beprofitable ones. Asset Allocation Blue Planet Investment Management applies a top down approach toits asset allocation and investment research decisions. This process seeks toidentify and assess the impact of economic conditions and policies on globalequity, bond and currency markets. The impact on individual countries andregions is assessed, as too is the effect on individual sectors and companieswithin those economies. Finally, we aim to identify those stocks andinvestments that stand to benefit most from those changes and allocate capitalto them accordingly. Portfolio At the end of the financial year the Trust had gearing, net ofcash, equal to 36.9% of Net Asset Value (NAV) and its capital was deployed asfollows: 87.4% of NAV was invested in equities; 28.0% in bonds; 17.8% inpreference shares and 0.1% in cash. Figure 1 shows the movement in securitytypes. Security Type April-2013 April-2012 % of Net Asset % of Net Asset Value ValueOrdinary Shares 87.4 137.1Bonds 28.0 5.4Preference Shares 17.8 3.1Cash 0.1 1.2 Early in the year, we invested a significant part of our portfolioin bonds and preference shares, which were at the time offering high yieldsand which we thought were undervalued. Those investments, with the exceptionof TNK-BP preference shares, have proved to be successful. As well asproviding us with a high level of income they have also generated veryconsiderable capital gains, some of which have been highlighted in theChairman's statement. We remain holders of most of those investments. In addition, we diversified our exposure away from financials andended the year with 34.3% of our NAV invested in other sectors. Those sectorswere consumer discretionary, energy, information technology, utilities,industrials, telecommunications and health care. This has reduced both thevolatility of the portfolio and its risk profile. We now have a portfolio that is essentially invested in a blend ofthree types of investments spread over a number of sectors. Firstly, highyielding fixed interest securities and preference shares, where the primaryobjective is to maximise our income but with the additional objective ofproviding us with capital gains. Secondly, "recovery stocks" where theprincipal objective is to make capital gains but with a preference for thosestocks that will also provide us with a high level of income. Thirdly, "growthstocks" which are more speculative and offer little by way of income but wherefuture capital gains could be substantial. This third element represents avery small part of the portfolio and would include stocks such as Genel Energyplc and Orexigen Therapeutics Incorporated. In terms of geographical exposures, at the end of the year the fundhad 60.8% of NAV invested in securities listed in the UK, of which roughlyhalf was in high yielding bonds and preference shares issued by banks andinsurers. The balance was invested in the equity of asset managers, insurers,miners, oil stocks and telecommunication service companies. We are well awareof the serious economic problems faced by the UK and the risks that these poseand have taken account of this when selecting our investments. Another very important geographic sector is the U.S., where 31.7%of NAV was invested at the year end. We are bullish about the prospects forthe U.S. economy that is recovering fast, and where most of our equityinvestments now lie. Enormous progress has been made by U.S. financialcompanies since the depths of the financial crisis. Since then they havere-capitalised their balance sheets albeit with the help of the FederalReserve, and embarked on cost cutting programs aimed at restoring theirprofitability. On the negative side, they have been battered by enormous legalclaims and fines which have eaten into their capital and profits and damagedtheir reputations. While growth in revenues is still hard to achieve for many,the improvement in their financial positions has been astounding. Companiesthat were on the verge of bankruptcy only a short while ago, now have verystrong, well-capitalised balance sheets and are generating record levels ofprofits despite low interest rates which are generally bad for banks. Therecovery that is underway in the U.S. economy and housing markets will furtherboost the profitability of those companies. In addition, we anticipate a sharpreduction in restructuring costs and the level of legal claims in the nextyear or so, and this will further boost their profitability. Finally, whilethe current (artificially) low level of interest rates has helped banks dealwith the financial crisis by generating large, virtually risk free, profitsfor them on their bond holdings and kept bad debts to a minimum, longer termthey are unsustainable. This would be beneficial for banks because in a stablebad debt environment low interest rates only serve to erode theirprofitability and are unwelcome. The good news is that in the longer terminterest rates will rise and this will further boost banks' profits. All inall the prognosis for U.S. banks is very good. The market does not yet fullyappreciate by just how much their profits and dividends can rise and manybanks remain undervalued. Figure 2 shows the geographical movements of theportfolio over the year. Country April-2013 April-2012 % of Net Asset % of Net Asset Value ValueUK 60.8 57.4US 31.7 56.7France 24.2 8.7Switzerland 5.0 4.9Russia 5.0 3.7China 2.9 -Netherlands 1.8 3.2Czech Republic 1.7 -Indonesia - 11.0 The economic situation in Europe continues to impair and slow theglobal economic recovery. The issues that have overwhelmed the region sincethe financial crisis, are still present albeit that in some, although not all,cases they are being slowly resolved. Excessive levels of government spendingand debt and incompetent and irresponsible political management continue toblight the region. High levels of unemployment are the sad by-product of thateconomic mismanagement, and the scale of the problems facing the region meansthat it may be many years before the situation materially improves. On thepositive side these problems have led to many European companies beingundervalued and there is value to be had but the risks associated with thoseinvestments remain high, especially in the financial sector, and it is a caseof buyer beware. Our investments in the region have typically been inwell-managed, undervalued companies selling products with a low elasticity ofdemand and a high yield which will hopefully support the share price, at leastuntil economic conditions in the region start to improve. The rate of growth in Emerging Market economies declined in 2012and this trend is expected to continue into 2013. We believe that returns fromAmerican investments will outperform those of Emerging Markets over the nextyear and for that reason we have reduced our exposure to the region. CurrencyThe fund is exposed to a range of currencies. The table below shows thepercentage of the portfolio holdings in all the currencies held at the yearend and how those currencies have performed against sterling over the periodin which the investments have been held in the Trust. Currency % of portfolio Appreciation/depreciation in currency against £ at end of for the length of time financial year the currency has been held in the portfolioUS Dollar 23.8% +4.5%Euro 19.5% +3.9%Swiss Franc 3.8% +1.9%Russian Rouble 3.7% -1.4%Hong Kong Dollar 2.2% +4.5%Czech Krona 1.3% +5.1% Positive currency movements have a beneficial impact on our performance.Negative currency movements reduce the performance of the shares denominatedin that currency when translated into sterling. In respect of the Dollar, thefavourable movement during the year is a direct consequence of the strongerand more resilient U.S. economy. Measures taken by the ECB during the yearhave been positively received by investors and increased confidence in theEuro. This resulted in a currency gain for the Fund. The Swiss Franc and CzechKrona are both pegged to the Euro and therefore move with it. Risk Market risk arises mainly from the uncertainty regarding the futureprice performance of equities held by your Company. This risk is magnifiedwhen gearing is used. The fact that the Company had been substantiallyinvested in a single industry sector exposed the Fund to concentration riskshould the Financial Sector underperform relative to other sectors of themarket, though this is not the case in the current period. The change to theinvestment mandate of the fund to invest in other sectors now mitigates thisrisk. Gearing the Fund by borrowing also means that interest-rate risks arise.These risk factors are beyond the control of the Company. In mitigation of these risks the prices of the individual securities investedin are monitored on a daily basis and the Board, which meets quarterly,imposes borrowing limits to ensure gearing levels are appropriate to marketconditions. When gearing is employed the potential impact of changes tointerest rates is taken into consideration. The securities dealt in are alllisted on recognised exchanges and are readily realisable. The Fund is exposed to currency risk, due to the range ofcurrencies in which investments are held. The largest risk is in the US dollarat the period end. Currency risk is a risk that can partially be controlled byemploying appropriate hedging strategies which is considered on a case-by-casebasis. The fund manager has been tracking currency movements on a daily basisin the current volatile environment. Where investments are made in emerging markets there is a risk ofhigher volatility in the price performance of these equities and theirassociated currencies. Political risk and adverse economic circumstances aremore likely to arise, putting the value of the investment at a higher risk.The registration and settlement arrangements in emerging markets may be lessdeveloped than in more mature markets so operational risks of investing arehigher. Credit risk arises from the exposure to non-delivery of aninvestment that has been purchased. The Company only buys and sells investmentthrough brokers approved by Blue Planet Investment Management Ltd and soconsiders that this risk is adequately controlled. As with all small investment trusts, the discount to NAV canfluctuate significantly both in absolute terms and relative to other similartrusts. The Board monitors and seeks to manage the discount and is responsiblefor share buybacks or issuance of Treasury shares which may help to reduce thediscount. During the year the Company made market purchases of 307,125ordinary shares and these shares are now held in Treasury. Review of the Top 10 Investments at year end 1. Henderson Group plc Henderson Group plc is the holding group company for Henderson'sGlobal Investors ("Hendersons") and is a leading independent, global assetmanagement house. It was established in 1934 and is principally based inLondon. The company is one of Europe's leading asset management companies witharound £68.9 billion assets under management and a headcount of over 1,000people, as of the end of March 2013. The Company has a long history of bothmergers and de-mergers. Henderson provides services to both institutional and retailclients. The underlying profit before tax decreased by 8% primarily due tolower performance and transaction fees. This was partially offset by a declinein variable staff and continued cost control. Investment performance duringthe year remained strong. Overall, 73% of funds exceeded their benchmarks overthe past year. Henderson has been one of our top performers during the year underreview with a total return of 48%. The improved investor sentiment helped therapid rise in price. Henderson is trading at an attractive valuation andoffers a high dividend yield when compared to other asset managers. Key statistics relating to this investment are given below: For the year ended 31 December: 2012 2011 ChangeTotal Assets £1.5bn £1.7bn -11.9%Net Profit after Taxation £99.9m £33.9m 194.7%Earnings per Share 9.2p 3.4p 170.6%Dividends per Share 7.2p 7.0p 2.1%Dividend Cover 1.3x 0.5x 164.9%Return on Equity 12.8% 4.3% 197.0pp 2. Fortress Investment Group LLC Fortress Investment Group LLC ("Fortress") is a leading globaldiversified investment manager with $55.6 billion assets under management asat 31st March 2013. The Company has been in operation for more than 15 yearsand specializes across a range of investment strategies including privateequity, credit, liquid markets and traditional fixed income. Fortress specialises in both alternative and traditionalinvestments. As at the end of March 2013, the company had $33.7billioninvested in alternative investments, of which $15.5billion was invested inprivate equity. Logan Circle, which was acquired in 2010, is the traditionalasset manager arm for Fortress. Since acquisition, assets under managementhave grown to $21.9billion as at end of March 2013. The improved conditions in the financial markets, especially in thesecond half of the year, were of benefit to Fortress. The company had a verygood year in 2012 with net profit rising 118% boosted by increased performancefees and a lower cost base. The quadruple increase in dividend highlightsmanagement's confidence in the future outlook of the company as financialmarkets continue in their recovery. Fortress has contributed a total return of 37% since our purchasein January 2013. Key statistics relating to this investment are given below: For the year ended 31 December 2012 2011 ChangeTotal Assets $2,161bn $2,221bn -2.7%Net Profit after Taxation $78m -$432m 118.1%Earnings per Share $0.29 -$2.36 112.3%Dividends per Share $0.21 $0.05 320.0%Dividend Cover 1.4x n/a -Return on Equity 6.4% n/a - 3. JP Morgan Chase & Company JP Morgan Chase & Company ("JP Morgan") is a global financialservices firm, headquartered in New York, with total assets of over $2trillion. It operates in more than 60 countries around the world and has over250,000 employees. It has grown both organically and by acquisition. JP Morganweathered the financial turbulence in 2008 better than many of its US bankingcounterparts and this led to it making two major acquisitions in 2008. Itbought Bear Stearns (The 5th largest US investment bank at that time) andWashington Mutual after Washington Mutual's assets were seized by the FDIC dueto the bank's failure. JP Morgan issued $11.5bn of common stock to support thepurchase. The addition of the Washington Mutual assets expanded the Chaseconsumer network to become the 2nd largest branch network in the U.S., servingover 42% of the U.S. population. JP Morgan announced record net income for the third successive yearin 2012. This is encouraging, considering the low interest rate environmentthe company is operating in. Net income rose 10.5% mainly driven by lowerprovisions for credit losses which reflect improved delinquency trends andreduced estimated losses in line with the recovery in the U.S. housing market.The current interest rate environment is unsustainable and will surelyincrease in the coming future to the benefit of JP Morgan and other financialinstitutions. The stock was purchased in October 2012 and since this time it hasprovided a total return in sterling terms of 21%. Key statistics relating to this investment are given below: For the year ended 31 December: 2012 2011 ChangeTotal Assets $2,359bn $2,266bn 4.1%Net Profit after Taxation $21bn $19bn 10.5%Earnings per Share $5.20 $4.48 16.1%Dividends per Share $1.20 $1.00 20.0%Dividend Cover 4.33x 4.48x -3.3%Return on Equity 11.0% 11.0% -0.1pp 4. Zurich Insurance Group AG Zurich Insurance Group AG ("Zurich") is one of the world's leadinginsurance groups. The Company has approximately 60,000 employees servingcustomers in more than 170 countries. Zurich's services are split betweenthree operating divisions, P&C business which accounts for about 50% ofoperating profits, life business which accounts for 30% and the balance beingderived from Farmers Insurance Group of Companies which is the US'sthird-largest insurer of both private, Personal Lines, passenger, automobileand homeowners insurance. In 2012, net income was up 5% from 2011. The improved profitabilitywas driven by contributions from Global life and Farmers Insurance Groupbusiness segment. Underwriting performance in the general insurance segmentwas strong, but its profits were negatively affected by the above-averagelevels of catastrophe losses, that include Hurricane Sandy. The companyretains a positive outlook for 2013 which could be led by positive performanceof its investment portfolio as market conditions continue to improve. Zurich'shistory of good cash flow generation has enabled it to adopt a very attractivedividend policy. Zurich's earnings stability, high dividend yield and verysolid balance sheet, with a Solvency I ratio of 278% at the end of 2012, makeit a solid and attractive investment prospect. We held the stock throughout the year and has managed a totalreturn of 33%. Key statistics relating to this investment are given below: For the year ended 31 December: 2012 2011 ChangeTotal Assets $409bn $387bn 5.7%Net Profit after Taxation $4.0bn $3.8bn 5.1%Earnings per Share* CHF24.66 CHF22.52 9.5%Dividends per Share* CHF17.00 CHF17.00 0.0%Dividend Cover 1.45x 1.32x 9.5%Return on Equity 10.8% 11.1% -3.1pp*Results are reported in US$, dividend is in CHF, so EPS and DPSare given here in CHF 5. Ford Motor Company Ford Motor Company ("Ford") was founded in 1903 and isheadquartered in Michigan, United States. The company is in the business ofdesigning and manufacturing of cars and trucks. Over the years it has growninto one of the leading automakers in the world. The company has approximately171,000 employees working in different locations worldwide. It sellsautomobiles and commercial vehicles under the Ford brand name and luxury carsunder the Lincoln brand. Ford was the only leading US automaker not to need abailout during the financial crisis. 2011 results are distorted by a number of one-off items whichinflate net income. Excluding such one-off items, the company sustained a lossof $14million last year. In contrast in 2012 the company generated net incomeof $5 billion. This was made possible by record results in North America andstrong performance in Latin America and Asia. Europe remains a loss makingunit. The outlook for the company is a positive one. The outstandingperformance in the US is expected to continue. The company is refreshing itsproduct line for the Latin America region and investing for growth in Asia andAfrica. Europe is expected to remain a drag in the short term. The companyannounced in September that new vehicles will be exported from the U.S. intoEurope to reduce assembly costs and cutting risks. Management remain positivefor the future, and this was highlighted by the decision to increase dividendsduring the year. We purchased this stock in November 2012 and since then it hasprovided a total return of 26%. Key statistics relating to this investment are given below: For the year ended 31 December: 2012 2011 ChangeTotal Assets $190bn $178bn 6.7%Net Profit after Taxation $5.7bn $20.2bn -118.1%Earnings per Share $1.42 $4.94 -71.3%Dividends per Share $0.15 $0.05 300.0%Dividend Cover 9.47x 98.80x -90.4%Return on Equity 35.4% 134.1% -73.6pp 6. American International Group American International Group ("AIG") was a major life, generalinsurance and financial services company prior to problems in 2008. Its creditdefault swaps and securities lending business suffered greatly and in 2008 thecompany reported huge losses. The U.S. government provided support by means ofa two year emergency loan and by taking a 79.9% stake in AIG through preferredstock. Since then, the company undertook a major restructuring operation aimedat reducing debt through the sale of non-core operations. The company repaidback its emergency loan in January 2011. By mid-December 2012, the U.S.treasury had sold its remaining shares in the company and officially ended itsfinancial support of AIG. AIG's two main businesses are called "Chartis", which is the newname for its property and casualty business and "SunAmerica" which is its lifeinsurance and retirement services business in the US. Chartis accounted for69% of AIG's revenues in 2012 whilst SunAmerica accounted for 29%. In 2012, revenues grew by 10% to $65.6 billion mainly driven bybetter investment returns. Net income dropped by 82.1% due to a loss ondisposal of International Lease Finance Corp. In addition, following improvedperformance by the company and a forecast that showed its ability to generatetaxable profits in the future enabled the company to recognise a deferred taxasset on its books. This reduced the tax charge and correspondingly increasednet income by $19.8billion in 2011. Stripping out these one off items, Incomebefore tax rose to $9 billion compared to $116 million in 2011. Reducing debtwas the company's main priority in the past but this may well shift toincreasing shareholder return by way of a dividend. The company is in a goodposition to do so in the near future. AIG has also produced very positiveresults in the first quarter of 2013 comfortably exceeding analyst profitexpectations. The company's share price valuation, at approximately 69% ofbook value at the last quarter's results, makes it an attractive turnaroundstock. We held the stock throughout the year, and have achieved a totalreturn of 24%. Key statistics relating to this investment are given below: For the year ended 31 December: 2012 2011 ChangeTotal Assets $549bn $553bn -0.7%Net Profit after Taxation $4bn $21bn -82.1%Earnings per Share $2.04 $11.01 -81.5%Dividends per Share $0.00 $0.00 -Dividend Cover N/a N/a -Return on Equity 3.8% 20.3% -81.4pp7. Lloyds Banking Group 9.25% Preference share Lloyds Banking Group ("Lloyds") is one of the largest financialinstitutions in Great Britain following its takeover of Halifax Bank ofScotland in 2009. It was founded in 1765 and is headquartered in London. Itstwo main business segments are retail and commercial banking and has more than30 million customers throughout Britain. Lloyds delivered profit before tax of £2.6 billion in 2012, a substantialincrease of approximately £2 billion when compared to 2011. This was theresult of a significant reduction in losses in non-core business and stableprofitability in the core business. Income fell by 13 per cent to £18.4billion as a result of customer deleveraging and lower margins in the corebusiness, and the substantial £42.3 billion reduction in the non-coreportfolio. However, this was more than offset by a significant reduction incosts, which fell 5 per cent to £10.1 billion, and by further improvements inasset quality, which resulted in a 42 per cent reduction in the impairmentcharge to £5.7 billion. Capital adequacy has also improved, with Core Tier 1ratio improving from 12.0% at year end to 12.5% by the end of March 2013. The preference share we hold is perpetual and sterling denominated.It has a coupon of 9.25%. We bought this preference share in May 2012 at ayield of 10.1%. Since then, it has produced a total return of 39%. Key statistics relating to this investment are given below: For the year ended 31 December: 2012 2011 ChangeTotal Assets £925bn £971bn -4.7%Net Profit after Taxation -£1.3bn -£2.7bn 50.5%Earnings per Share -2.0p -4.1p 51.2%Dividends per Share N/a N/a -Dividend Cover N/a N/a -Return on Equity N/a N/a - 8. SCOR SE SCOR SE ("SCOR") is a reinsurance company, founded in 1970 and isheadquartered in Paris. It has a worldwide presence with offices in Europe,North America, Latin America, Asia Pacific and Africa. More than half itsbusiness is in Europe but it also has a strong presence in the US. SCOR hasroughly 51% of its business in non-life with the balance in life. SCOR has a strong balance sheet and maintaining a robust capitalbase remains one of the company's key goals. It also focuses on consistentprofitability and steady growth. The company has quite a low leverage to thefinancial market, but does have a low return on equity. The company pays agood sustainable dividend, and has just increased it by 9% based on its 2012results. This did not impair the sustainability of its dividend payment, withdividend cover increasing as a result of the improved profitability of thecompany. 2012 was a solid year for the company. Total premiums collectedexceeded €9.5 billion, up by around 11% from 2011. Non-life insurance rose by17% in 2012 whilst life insurance grew by 6%. During the year, SCOR wasexposed to a number of catastrophe losses. The Thai floods that occurred atthe end of 2011 continued to develop during the year. Towards the end of theyear SCOR had to bear heavy costs from Hurricane Sandy, which devastated thenorth-eastern quarter of New York. We have held this stock throughout the year, and have managed atotal return of 24%. Key statistics relating to this investment are given below: For the year ended 31 December: 2012 2011 ChangeTotal Assets €32.6bn €31.3bn 4.1%Net Profit after Taxation €418m €330m 26.7%Earnings per Share €2.24 €1.77 26.6%Dividends per Share €1.20 €1.10 9.1%Dividend Cover 1.87x 1.61x 16.0%Return on Equity 8.7% 7.5% 16.1%9. Electricite de France Electricite de France ("EDF") was founded in 1946 and is now aleading player in the energy industry, present across the entire electricityvalue chain (generation, transmission, distribution, marketing, trading) andthe natural gas chain. The Group has a portfolio of 38.1 million customers inEurope and the world's biggest nuclear generation fleet. It has a leadingposition in France and UK electricity markets, and solid positions in Germanyand Italy. The French government owns approximately 84% of EDF's shares. Notwithstanding the challenging market conditions for utilities,EDF's net income rose by 5% during the year. Faced with falling selling pricesdue to fall in the price of coal and CO2 emission rights, and a substantialrise in energy generation from renewable sources in Germany, EDF still managedto increase its revenues by 11% in 2012. Net income rose by 5% whilstoperating cash flow generation rose by 15% in 2012. This supported anunexpected 9% increase in dividend payment. The outlook for utilities is stillweak and EDF faces depressed demand and lower electricity future prices.Albeit we feel the company is well equipped to continue its positiveperformance. This stock was purchased at the start of February 2012 and sincethen has provided a total return in sterling terms of 11%. Key statistics relating to this investment are given below: For the year ended 31 December: 2012 2011 ChangeTotal Assets €250bn €232bn 7.8%Net Profit after Taxation €3.6bn €3.4bn 5.0%Earnings per Share €1.80 €1.70 5.9%Dividends per Share €1.25 €1.15 8.7%Dividend Cover 1.44x 1.48x -2.6%Return on Equity 11.6% 10.4% 11.7pp 10. Catlin Group Ltd Catlin Group Ltd ("Catlin") was founded in 1984 and is a globalspeciality property and casualty insurer and reinsurer, writing in more than30 lines of business. It is based in Bermuda and operates six underwritinghubs, having more than 50 offices worldwide. Its major markets are the UK, USand Bermuda with a presence in Europe, Asia-Pacific and Canada. Catlin's net income recovered to $305million following a series ofnatural disasters in 2011 which affected profitability. Whilst catastrophelosses were far less in 2012 compared to the previous year, Catlin'sunderwriting profitability was reduced by $225million in net losses fromHurricane Sandy and $51million following the grounding of cruise ship CostaConcordia. Notwithstanding this, the Group's underwriting performance wasstrong in 2012, with net underwriting contribution the highest in the pastfive years. On the other hand, the performance of the investment portfolio didnot match that of the underwriting operations. Investment return fell by 36%in 2012 due to the conservative nature of the company's investments and thecontinued low interest rate environment. Management are confident in theoutlook for the business in terms of growth and underwriting profitability. We held the stock throughout the year, and have achieved a totalreturn of 12%. Key statistics relating to this investment are given below: For the year ended 31 December: 2012 2011 ChangeTotal Assets $14bn $13bn 9.3%Net Profit after Taxation $305m $38m 118.1%Earnings per Share $0.88 $0.11 700.0%Dividends per Share $0.46 $0.45 2.4%Dividend Cover 1.91x 0.24x 680.9%Return on Equity 11.3% 1.3% 653.7ppTransactions Over the period, sales of investments realised £40.4m and purchases totalled£45.9m. Blue Planet Investment Management Ltd 20 June 2013 Statement of Directors' Responsibilities The Directors are responsible for preparing the Annual Report and thefinancial statements in accordance with applicable law and regulations. Company law requires the Directors to prepare financial statementsfor each financial year. Under that law the Directors have elected to preparethe financial statements in accordance with United Kingdom Generally AcceptedAccounting Practice (United Kingdom Accounting Standards and applicable law).Under Company law the Directors must not approve the accounts unless they aresatisfied that they give a true and fair view of the state of affairs of theCompany and of the profit or loss of the Company for that period. In preparingthese financial statements, the Directors are required to: - select suitable accounting policies and then apply themconsistently; - make judgments and estimates that are reasonable and prudent; - state whether applicable UK Accounting Standards have beenfollowed, subject to any material departures disclosed and explained in thefinancial statements; and - prepare the financial statements on the going concern basisunless it is inappropriate to presume that the Company will continue inbusiness. The Directors are responsible for keeping adequate accountingrecords that are sufficient to show and explain the Company's transactions anddisclose with reasonable accuracy at any time the financial position of theCompany and enable them to ensure that the financial statements comply withthe Companies Act 2006. They are also responsible for safeguarding the assetsof the Company and hence for taking reasonable steps for the prevention anddetection of fraud and other irregularities. The Directors confirm that to the best of their knowledge that: - The financial statements prepared in accordance with applicableUK accounting standards, give a true and fair view of the assets, liabilities,financial position and return of the Company; and - The Directors' and Investment Manager's reports include a fairreview of the development, performance and position of the Company togetherwith a description of the principal risks and uncertainties that the Companyfaces. On behalf of the Board John Tyce Chairman 20 June 2013 Income Statement 2013 2012 (incorporating the revenue Revenue Capital Total Revenue Capital Totalaccount)for the year ended 30 April Notes (£) (£) (£) (£) (£) (£)2013 (14 month periodto 30 April 2012)Capital gains / (losses) oninvestmentsNet realised losses - (98,280) (98,280) - (2,613,777) (2,613,777)Unrealised gains - 4,330,055 4,330,055 - 187,873 187,873Exchange losses - (101,271) (101,271) - (91,960) (91,960) Net capital gains /(losses) on investments - 4,130,504 4,130,504 - (2,517,864) (2,517,864)Income from investments 2 1,380,257 - 1,380,257 596,100 - 596,100Bank interest receivable 100 - 100 10,827 - 10,827 Gross revenue and capitalgains / (losses) 1,380,357 4,130,504 5,510,861 606,927 (2,517,864) (1,910,937)Administrative expenses (562,649) (248,961) (811,610) (439,691) (153,360) (593,051) Net return before interestpayableand taxation 817,708 3,881,543 4,699,251 167,236 (2,671,224) (2,503,988)Interest payable (60,701) (60,701) (121,402) (56,259) (56,259) (112,518) Return on ordinaryactivities before taxation 757,007 3,820,842 4,577,849 110,977 (2,727,483) (2,616,506)Taxation on return onordinary activities (74,593) - (74,593) (17,833) (215) (18,048) Return on ordinaryactivitiesafter taxation 3 682,414 3,820,842 4,503,256 93,144 (2,727,698) (2,634,554) Return per ordinary share 3 1.50p 8.38p 9.87p 0.58p (17.00)p (16.42)pThe total column of the income statement represents the profit & loss accountof the Company. All revenue and capital items in the above statement derive from continuingoperations. There were no recognised gains and losses other than those disclosed above.Accordingly a statement of total recognised gains and losses is not required. Balance Sheet 2013 2012 As at 30 April 2013 Notes (£) (£) (£) (£) Fixed assetsListed equity investments 23,564,050 8,330,920Listed non-equity investments 6,283,456 321,471 29,847,506 8,652,391Current assetsDebtors 973,482 433,021Cash at bank and on deposit 24,968 70,314 998,450 503,335 Creditors: amounts falling duewithin one year (8,429,856) (3,211,949) Net current liabilities (7,431,406) (2,708,614) Net assets 22,416,100 5,943,777 Capital and reservesCalled-up share capital 497,820 8,021,235Share premium account 18,426,406 6,758,327Other reservesCapital reserve - realised (8,924,257) (8,638,146)Capital reserve - investmentholding gains/ (losses) 3,534,326 (572,627)Capital redemption reserve 8,167,389 267,300Revenue reserve 714,416 107,688Shareholders' funds 22,416,100 5,943,777 Net asset value per ordinaryshare 3 45.31p 37.05p John Tyce Chairman 20 June 2013 Registered number SC192153 Reconciliation of Movements in Shareholders' Funds Capital Capital reserve- Redemption Called-up investment reserve Total Share Share Capital holding Revenue shareholders' For the year ended 30 capital premium reserve-realised losses (£) reserve funds April 2013 (£) (£) (£) (£) (£) (£)Shareholders' funds at 1 (8,638,146) (572,627) 267,300 107,688May 2012 8,021,235 6,758,327 5,943,777Return on ordinary - - (286,111) 4,106,953 - 682,414 4,503,256activities after taxationRestructuring of share (7,523,415) 11,668,079 - - 7,900,089 - 12,044,753capitalTreasury shares purchased - - - - - (75,686) (75,686) Shareholders' funds at 30April 2013 497,820 18,426,406 (8,924,257) 3,534,326 8,167,389 714,416 22,416,100 Capital reserve- Called-up investment Capital Total Share Share Capital holding Redemption Revenue shareholders' For the period ended 30 capital premium reserve-realised losses reserve reserve funds April 2012 (£) (£) (£) (£) (£) (£) (£)Shareholders' funds at 1 (5,722,232) (760,843) - 14,544March 2011 8,288,535 6,758,327 8,578,331Return on ordinary - - (2,915,914) 188,216 - 93,144 (2,634,554)activities after taxationTreasury shares cancelled (267,300) - - - 267,300 - - Shareholders' funds at 30April 2012 8,021,235 6,758,327 (8,638,146) (572,627) 267,300 107,688 5,943,777 Cash Flow Statement (£) 2013 (£) 2012 for the year ended 30 April Notes (£) (£)2013 (14 month period ended30 April 2012)Operating activitiesInvestment income received 1,166,414 465,341Interest received 100 10,827Investment management andadministration fees paid (636,250) (312,662)Cash paid to and on behalf ofDirectors (43,000) (52,981)Other cash payments (211,940) (169,204)Exchange differences onforeign currency cashbalances (101,271) (102,001)Net cash inflow/(outflow)from operating activities 174,053 (160,680) Servicing of financeInterest paid (114,260) (122,083) TaxationTaxation recovered 10,396 1,057 Capital expenditure andfinancial investmentPurchase of investments (45,860,873) (65,425,282)Sale of investments 40,423,908 66,362,016 (5,436,965) 936,734Cash (outflow) / inflowbefore financing (5,366,776) 655,028 Management of liquidresourcesCash placed on deposit - (1,522,505)Cash withdrawn from deposit - 1,532,546 - 10,041FinancingPurchase of treasury shares (75,686) -Cash received from mergerless merger costs paid 193,806Loan drawn down / (repaid) 5,203,310 (1,000,000)Decrease in cash (45,346) (334,931) Notes on the Accounts The financial information set out in thisannouncement does not constitute the Company's statutory accounts for the yearended 30 April 2013 or year ended 30 April 2012 but is derived from thoseaccounts. Statutory accounts for 2012 have been delivered to the Registrar ofCompanies and those for 2013 will be delivered following the Company's AnnualGeneral Meeting. The auditors have reported on those accounts; their reportswere unqualified, did not draw attention to any matters by way of emphasis anddid not contain a statement under s498 (2) or (3) Companies Act 2006. The financial information set out in thisannouncement has been prepared on the basis of the accounting policies asstated in the previous year's financials statements, and are consistent withthe current period's full financial statements which are yet to be published. The Directors consider that the Company hasadequate financial resources in the form of readily realisable listedsecurities, including cash of £25,000 and loan facilities to continue inoperational existence for the foreseeable future. For this reason theycontinue to use the going concern basis in preparing the accounts. 2. Income from investments 2013 2012 Franked Unfranked Total Franked Unfranked Total (£) (£) (£) (£) (£) (£)DividendsListed investments - UK 465,331 - 465,331 251,285 - 251,285- Overseas 568,374 - 568,374 297,293 - 297,293InterestListed investments - UK - 245,913 245,913 - 11,296 11,296- Overseas - 100,639 100,639 - 36,226 36,226Total 1,033,705 346,552 1,380,257 548,578 47,522 596,100 3. Return and Net Assets per ordinary share 2013 2012 The return per ordinary share is based upon the followingfigures:Revenue return £682,414 £93,144Capital return £3,820,842 £(2,727,698)Weighted average number of ordinary shares in issue during the 45,612,552 16,042,469period The net asset value per ordinary share is calculated on 49,474,863 (2012 -16,042,469) being the number of ordinary shares in issue at the end of theperiod after deducting 307,125 treasury shares.4. Dividends No interim dividend was declared. A final dividend of 1.37p net (2012 - 0.00p)per ordinary share has been proposed, payable on 29 July 2013 to shareholderson the register on 28 June 2013. The Company's shares will be quoted exdividend on 26 June 2013. 5. Related Party Transactions Directors' remuneration consisted solely of fees of £15,000 for the Chairmanand £11,152 for Miss Killay, £11,152 for Mr Murray, £2,848 for Mr Thomas and£2,848 Dr Bendall. Blue Planet Investment Management Ltd is employed by theCompany as its Investment Manager under a management agreement which isterminable on two years' notice. The investment management fee in respect ofeach month was 0.125% of the total assets of the Company attributable to theshareholders on the last day of that month. The Company Secretary, Blue PlanetInvestment Management Ltd also receives £196,000 p.a in respect ofadministration and secretarial services. 6. Share capital On 13 June 2012 shareholders approved a restructuring of the sharecapital of the Company into one ordinary share of 1p and one Deferred Share of49p. The Deferred Shares were bought back by the Company on the same date foran aggregate amount of 1p and cancelled. The Company purchased the net assetsof Blue Planet Worldwide Financials Investment Trust plc (BPW) and Blue PlanetFinancials Growth & Income Investment Trusts No's 1-10 plc (BPFU) by issuing37,667,403 shares, of which 3,927,884 were issued to Investments Company LLP,a vehicle used to complete the transaction by eliminating cross shareholdings.These shares were cancelled following the merger to leave new shares in issueof 33,739,519 which together with the Companys' original shares in issue of16,042,469 give total shares in issue of 49,781,988. BPW and BPFU are now inMembers' Voluntary Liquidation. The total number of shares held in treasury is 307,125. These shares have novoting rights, do not rank for dividend and are excluded from the calculationof net asset value and return per ordinary share. At 30 April 2013 the Companyhad the authority to purchase a further 9,692,875 of its own shares. Aresolution to renew this authority will be proposed at the Annual GeneralMeeting in 2013. For more information, please visit www.blueplanet.euYou can also contact the Company on 0845 527 7588 or by emailing info@blueplanet.eu