PREMIER ENERGY AND WATER TRUST PLC
Interim Management Statement for the Quarter ended 30 September 2014
Investment Objective
The Company's investment objectives are to achieve a high income from its
portfolio and to realise long-term growth in the capital value of the
portfolio. The Company will seek to achieve these objectives by investing
principally in the equity and equity related securities of companies operating
primarily in the energy and water sectors, as well as other infrastructure
investments.
Financial Highlights
Share price and NAV returns
30 September 30 June % change
2014 2014
Zero Dividend Preference share NAV* 204.89p 201.65p +1.6%
Mid price 212.00p 210.88p +0.5%
Ordinary share NAV* 188.88p 202.05p -6.5%
Mid price 182.00p 185.00p -1.6%
* Calculated in accordance with the Articles of Association
Total return performance
Total return %
Quarter ended
30 September 2014
Total Assets * -1.3%
FTSE All-World Utilities Index Total Return (£) 0.6%
FTSE All-World Index Total Return (£) 3.2%
FTSE All- Share Total Return (£) -1.0%
* Total return performance, adjusted for any dividends distributed and declared.
Material Events and Transactions
Reorganisation and extension of life
On 25 July 2014 the Company announced proposals to extend the life of the
Company and to implement a reorganisation of the Company through a scheme of
arrangement under Part 26 of the Companies Act 2006 (the "Scheme") (the
"Proposals"). The proposals involved:
* replacing the ZDP Shares with new ZDP Shares issued by a newly incorporated
subsidiary of the Company pursuant to the Scheme, such new ZDP Shares to be
admitted to the standard listing segment of the Official List of the UKLA
and to trading on the London Stock Exchange's main market;
* the rights of the new ZDP Shares being substantially similar to the rights
attached to the ZDP Shares;
* amending the Articles to allow the Company to continue without a fixed life
whilst including a provision to allow holders of ordinary shares an
opportunity to vote on the continued existence of the Company every five
years (from 2020); and
* the renewal of the Board's authority to issue new ordinary shares in the
Company on a non-pre-emptive basis, subject to certain parameters, to
replace the authorities granted by Shareholders at the Company's annual
general meeting held in May 2014.
The Proposals were subject, inter alia, to approval by shareholders as set out
in the Circular published on 1 August 2014 and on 27 August 2014 the Company
announced that at the Court Meeting, ZDP Class Meeting, Ordinary Class Meeting
and General Meeting ("the Meetings"), all held on that day, all resolutions
were duly passed.
On 16 September 2014 the Company announced that the Court had approved the
Scheme and Reduction of Capital and had issued Court Orders confirming the
same. The Scheme and the Reduction of Capital became effective on 17 September
2014. Accordingly, application was made to the UK Listing Authority to cancel
the Company's ZDP Shares listed on the Official List and admission to trading
on the Main Market of the LSE with effect from 8.00 a.m. on 17 September 2014,
and application was made by the Company's wholly owned subsidiary, PEWT
Securities ("PEWT Securities"), for the admission of 21,180,373 New ZDP Shares
to the standard listing segment of the Official List and to trading on the Main
Market with effect from 8.00 a.m. on 17 September 2014.
Half Year Report
The half year report to 30 June 2014 was mailed to shareholders on 13 August
2014.
Dividends
On 24 July 2014, the Company declared a second interim dividend for the year
ending 31 December 2014 of 2.65p per Ordinary share comprised of a base
dividend of 1.9p, and an additional dividend of 0.75p per Ordinary share in
accordance with the policy announced in August 2013 to run down the Company's
revenue reserve. This second interim dividend was paid on 30 September 2014 to
members on the register at the close of business on 29 August 2014.
On 16 October 2014 the Company declared a third interim dividend for the year
ending 31 December 2014 of 2.65p per Ordinary share comprised of a base
dividend of 1.9p and an additional dividend of 0.75p per Ordinary share in
accordance with the policy announced in August 2013 which was to run down the
Company's revenue reserve by the fixed wind up date of 31 December 2015. This
third interim dividend will be paid on 31 December 2014 to members on the
register at the close of business on 5 December 2014. The Ordinary shares will
be marked ex-dividend on 4 December 2014. Following the approval by
shareholders to extend the life of the Company in September 2014, the Company
no longer has a fixed wind up date. The Directors intend however, subject to
unforeseen circumstances, to continue to distribute an additional 0.75p per
share every quarter until the end of 2015 (with the last such distribution
being paid on 31 March 2016) at which point the revenue reserve will have been
substantially reduced.
LargestHoldings(% of Gross Assets)
Company Country Valuation
% of total
OPG Power Ventures India 9.7%
Renewable Energy Generation UK 6.5%
China Power Intl. Development China 4.6%
Huaneng Power International China 3.9%
Ecofin Power & Water 6% 2016 CB UK 3.6%
SSE UK 3.4%
GDF Suez France 3.3%
Tenaga Nasional Berhad Malaysia 3.2%
Enersis Chile 3.1%
Fortune Oil China 3.1%
The Board is not aware of any significant events or transactions which have
occurred since 30 September 2014 to the date of the publication of this
statement which would have a material impact on the financial position of the
Company.
At 31 October 2014 the Zero Dividend Preference share NAV was 206.00p and the
Ordinary share NAV was 191.92p.
Further Information
Daily prices, Company announcements, Report and Accounts and monthly fact
sheets are available via www.premierfunds.co.uk.
6 November 2014