TIDMMHN
Menhaden Capital PLC
(the "Company")
HALF YEAR REPORT
FOR THE SIX MONTHSED 30 JUNE 2018
FINANCIAL HIGHLIGHTS
Performance As at 30 June 2018 As at 31 December
2017
Net asset value per share 93.8p 92.1p
Share price 71.3p 68.5p
Discount 24.0% 25.6%
Total returns Six months to 30 June Year to 31 December
2018 2017
Net asset value per share 1.8% 7.8%
Share price 4.1% 3.2%
Six months to 30 June Year to 31 December
2018 2017
Ongoing charges* 2.1% 2.1%
Source: Frostrow Capital LLP / Bloomberg
* Ongoing charges are calculated as a percentage of shareholders' funds using
average net assets over the period and calculated in line with the AIC's
recommended methodology.
CHAIRMAN'S STATEMENT
This report covers your Company's progress in the six months to 30 June 2018
and its financial position as at that date, almost three years since its
launch.
Performance
During the first half of the year, the Company's net asset value ("NAV") per
share rose 1.8% (2017: +2.6%), over the period. At the same time, the market
value of the Company's shares increased by 4.1% (2017: -1.4%) so that, at the
end of June, the share price stood at a 24.0% discount to the NAV per share,
having narrowed from 25.6% at the end of 2017.
While the Company does not have a formal benchmark and our Portfolio Manager
does not invest by reference to an index, over the same period the MSCI World
Total Return Index (in sterling), rose by 2.9% (2017: +5.3%). By way of
additional comparison, the WilderHill New Energy Global Innovation Index (in
sterling) fell by 7.3% and the AIC Environmental Sector rose by 4.0%.
Our Portfolio Manager has provided a comprehensive analysis of all the factors
contributing to the Company's performance during the period later in this
report.
Discount
The Board remains conscious of the level of the share price discount to NAV per
share and reviews the situation at each Board meeting. As stated previously,
the Board remains of the opinion that share buybacks and a reduction in size of
the Company would not be in the interests of shareholders, as it would increase
the ongoing charges ratio and reduce the liquidity of the Company's shares.
Instead, the Board will continue to focus on the Portfolio Manager's
performance and the effectiveness of marketing and distribution strategies.
Dividend
The Board's policy is to pay dividends as required to maintain UK investment
trust status; therefore no interim dividend will be declared for this period.
The Company's prospectus contains an undertaking to target an annual dividend
yield of 2% of the average NAV by a target implementation date of 31 December
2017. Having reviewed the Company's income statements and forecasts the Board
decided that the target dividend could not be achieved without paying a
significant portion out of capital. The Board does not believe that this would
be appropriate under current circumstances. The dividend target will be kept
under close review and the Board will continue to advise shareholders
accordingly.
Outlook
Our Portfolio Manager remains optimistic about the long-term prospects for
companies delivering or benefiting from environmental solutions. The Board is
encouraged by the Company's steady performance over the past six months and
believes that the premise on which the Company was launched and its underlying
investment strategy remain valid.
Sir Ian Cheshire
Chairman
24 September 2018
Investment Themes
Theme Description
Clean energy production Companies producing power from clean sources such
as solar or wind
Resource and energy Companies focused on improving energy efficiency
efficiency (e.g. in buildings or manufacturing processes) or
creating emissions reduction products or services
Sustainable transport Companies in the transport sector focused on
helping to reduce harmful air emissions / distance
travelled
Water and waste management Companies with products or services that enable
reductions in usage / volumes and / or smarter
ways to manage water and waste
PORTFOLIO SUMMARY as at 30 June 2018
Investment Country Fair Value % of
GBP'000 net assets
X-ELIO*1 Spain 15,043 20.1
Airbus France 8,049 10.7
Safran France 6,973 9.3
Alphabet United States 5,730 7.6
Infigen Energy Australia 3,842 5.1
Calvin Capital*2 Britain 3,500 4.7
Brookfield Renewable Energy Canada 2,925 3.9
Terraform Power United States 2,897 3.9
Ocean Wilsons Holdings Bermuda 2,399 3.2
Atlantica Yield Spain 2,356 3.1
Top 10 investments 53,714 71.6
Air Products & Chemicals United States 2,325 3.1
Canadian Pacific Canada 2,310 3.1
Union Pacific United States 2,287 3.0
Alpina Partners Fund LP* Britain 2,254 3.0
Senvion Germany 2,081 2.8
WCP Growth Fund LP* Britain 910 1.2
Perfin Apollo 12* Brazil 600 0.8
NJS Co Japan 308 0.4
Atlantica Yield - Bonds Britain 157 0.2
Terra Santa Agro Brazil 93 0.1
Total investments 67,039 89.3
Net current assets (including 7,996 10.7
cash)
Total net assets 75,035 100.0
1 Investment made through Helios Co-Invest L.P.
2 Investment made through KKR Evergreen Co-Invest L.P.
* Unquoted
*The data regarding Alpina Partners Fund LP and WCP Growth Fund LP (together,
the "Partnerships") does not necessarily reflect the current or expected future
performance of the Partnerships and should not be used to compare returns of
the Partnerships against returns of other private equity funds.
Investment Business Description Theme
X-ELIO*1 Develops and operates solar energy projects Clean energy
production
Airbus Designs and manufactures aircraft Sustainable
transport
Safran Supplies systems and equipment for aerospace, Sustainable
defence and security transport
Alphabet Parent company of Google and other subsidiaries Resource and energy
which are together referred to as 'Other Bets.' efficiency
Infigen Energy Developer, owner and operator of generation assets Clean energy
delivering energy solutions to businesses and large production
retailers located in Australia
Calvin Capital*2 Invests in utility infrastructure assets Resource and energy
efficiency
Brookfield Renewable Open-ended fund investing in hydroelectric and wind Clean energy
Energy facilities production
Terraform Power Operates contracted renewable energy assets Clean energy
production
Ocean Wilsons Operates port terminals and provides maritime Resource and energy
services in Brazil efficiency
Atlantica Yield Owns and manages contracted renewable energy assets Clean energy
production
Air Products & Sells gases and chemicals for industrial uses Resource and energy
Chemicals efficiency
Canadian Pacific Owner and operator of transcontinental freight Sustainable
railway in Canada and the United States. transport
Union Pacific Provides rail freight services across its own Sustainable
railroad network in the Western & Central United transport
States
Alpina Partners Fund Growth capital fund managed by specialist Resource and energy
LP* environmental PE firm, Alpina Partners efficiency
Senvion Manufactures wind turbines Clean energy
production
WCP Growth Fund LP* Growth capital fund managed by specialist Resource and energy
environmental PE firm, Alpina Partners efficiency
Perfin Apollo* Builds and operates energy transmissions lines in Resource and energy
Brazil efficiency
NJS Co Offers a range of environmental, water and sewerage Water and waste
consulting services in Japan and overseas management
Atlantica Yield - Operates and develops renewable energy assets Clean energy
Bonds production
Terra Santa Agro Brazilian agricultural production and land Resource and energy
development company efficiency
PORTFOLIO MANAGER'S REVIEW
Performance
For the half year under review, the Company's NAV per share increased by 1.8%
to 93.8p.
The contribution to the increase over the year is summarised below:
30 June
2018
Asset Category NAV % Contribution
%
Public Equities 48.4 1.0
Private Investments 29.8 3.1
Yield Investments 11.2 (0.8)
Liquidity 11.2 -
Foreign exchange forwards (0.6) (0.4)
Gross Return 2.9
Expenses (1.1)
Net Assets 100.0 1.8
Public Equities
Our public equities portfolio represented 48.4% of our total NAV as at the end
of June, and gained 2% during the first half of the year, adding 1% to our
total NAV.
Airbus was by far the biggest contributor, returning 22% for the period, which
added 2% to our NAV, mostly because of the significant progress the Company has
made ramping up production and sales of its new ultra-fuel efficient A320neo
aircraft. In 2017 Airbus delivered a record number of aircraft (over 700 in
total) and ended the year having delivered over 180 A320neos, which was more
than expected. Airbus is on track to deliver around 800 aircraft in total in
2018.
Safran, which supplies engines to Airbus, also performed strongly, gaining
22.2%, which added 1.7% to our NAV, principally off the back of strong
performance for the first quarter of this year in the Company's Aerospace
Propulsion division. Deliveries of Safran's new ultra-fuel efficient LEAP
engine increased to 186 in Q1 2018 versus 81 during the same period last year,
and Safran's total revenues were 3% above consensus forecasts for the quarter.
Both revenue growth and profit growth are now expected towards the top end of
previously guided ranges for 2018. Moreover, Safran has declared a EUR2.3 billion
share buyback programme, to be completed over 18-24 months, of which an initial
repurchase tranche of up to EUR230 million has already been launched.
During January we added Alphabet, parent company of Google, to the portfolio
and that position gained 7.6% during the first half of the year, adding 0.5% to
our NAV. Google is the world's largest buyer of electricity generated from
renewable sources: 2,600 megawatts, which represents 100% of the electricity
used by the company. We like businesses with strong market positions, and
Google has a very strong position globally in search, with that position being
strengthened significantly over time as more and more people switch to mobile,
which favours Google. The company is highly cash generative, with an expected
free cash flow conversion of around half of EBITDA during the next five years.
Google's share price has lagged its technology peers in recent months, and
continues to offer good value at these levels, in our view. We added to this
position following the sharp sell-off across the technology sector during
April.
In April we added Ocean Wilsons Holding to the portfolio. The company controls
Brazilian port terminal operator Wilson Sons, which has an asset base with
monopolistic characteristics and substantial operating leverage to growth in
Brazil's international trade shipping sector. On a per unit basis shipping has
the lowest climate impact of any freight method, producing between 10-40 grams
of CO2 per metric ton of freight per km of transportation, which is around half
that even of rail freight. Currently Ocean Wilsons Holding is trading at a
material discount to its peers, on a forward EV/EBITDA of less than 7x, in
comparison to peers which trade on average at around 10x, and a recent large
transaction which took place at more than 14x. Ocean Wilsons Holding enables us
to obtain exposure to Wilson Sons at a discount of around 30%, which offers us
a markedly asymmetric risk-reward profile whilst providing a dividend yield of
circa 5%. Although the shares surged 25% in July following an announcement that
the Board was initiating a strategic review, the share price sharply reverted
following poor Q2 results. While reported earnings were negatively impacted by
FX losses and other one-off gains, we view the poor showing as very much
transitory and remain upbeat on the group's prospects.
In May we initiated a new position in NJS, a Japanese engineering consulting
firm which offers a range of services related to water & waste systems. We
believe that the group is primed to benefit from continued rising investment in
Japanese water & waste infrastructure, as the country's ageing facilities
require renewal. Full delivery of the group's 2020 targets implies an
inexpensive forward P/E of 14x but it is the group's cash balance, equivalent
to circa 70% of its market capitalisation, which underpins the asymmetry of
risk and reward in our view.
In June we initiated positions in Union Pacific and Canadian Pacific Railways.
Rail is substantially the most fuel efficient onshore form of freight
transportation. Both of these rail freight leaders are uniquely positioned to
benefit from continued strong growth in North America, and from current
capacity constraints in the trucking sector.
We decided to sell our position in transport provider First Group at around 98p
per share, ahead of the group's trading update in April. We decided that the
group no longer offered an attractive risk-reward due to its poor competitive
position and highly levered balance sheet. Our timing proved fortuitous, with
the shares falling circa 10% on publication of the results due to missed
revenue targets and moderately downgraded earnings per share guidance.
Adient, which makes lightweight seating and other parts for the automotive
sector, was a significant detractor, declining by 35.1%, which cost us 1.1% of
our NAV. We sold our position in Adient in June following successive profit
warnings and continuing operational challenges at the company. The last straw
was the departure of the CEO/Chairman ahead of the company's fiscal Q3 2018
results. In addition, our cautious outlook for the automotive industry given
the escalating trade-war as well as the increasingly late stage of the economic
cycle significantly undermined our conviction of upside value in Adient over
the medium term.
Australian wind power developer and operator Infigen was a meaningful detractor
during the period, declining by 7.3%, which cost us 0.4% of our NAV. The
significant decline of the Australian dollar, combined with continued
uncertainty around renewables policy in Australia were factors underlying the
poor share price performance of Infigen during the period. We continue closely
to monitor developments affecting the renewable energy market in Australia, and
the progress of the development of Infigen's substantial pipeline of new
assets.
European wind turbine manufacturer Senvion also performed poorly during the
period, declining by 12.5%, which cost us 0.4% of our NAV. Major wind turbine
manufacturers Vestas and Siemens Gamesa have also been weak in recent weeks, so
Senvion's share price decline can be in part be attributed to industry-related
factors, and particularly to ongoing cost deflation and consequent pressure on
margins. But the replacement of the CEO with the CFO has brought additional
uncertainty at an already challenging time. We decided to exit this position
during the summer.
We sold our position in Volkswagen during May, crystallising a gain of 2.4p per
share, excluding dividends. Initially we took the decision to redeploy the
proceeds into Porsche Holdings, which offers exposure to Volkswagen (of which
Porsche is the holding company) at a significant discount. However, Porsche
declined sharply in the days after this redeployment and we took the decision
quickly to cut our losses (0.7% of the NAV) and sell the position entirely.
Whilst we believe that Volkswagen is well placed to take a leading position in
the global market for electric vehicles we have begun to question the
attractiveness of the broader autos industry at what is, in our view, an
increasingly late stage of the global economic cycle.
Yield Investments
Our portfolio of yield investments represented 11.1% of our total NAV at the
end of June, and declined by 7% during the period, costing us 0.8% of our NAV.
The biggest detractors were the Brazilian water utilities with Copasa down
-5.7% and Sanepar down -31.4%, detracting -0.7% from the NAV. This was driven
by the heightened political uncertainty in Brazil ahead of the elections in
October as well as weakening of the currency as the Brazilian real hit a 2-year
low in June. We took the decision to exit these positions in June.
In July we initiated a new position in Veolia, a global leader in environmental
services, which is a key beneficiary of the secular trend of increasing
investment in the water and waste infrastructure globally. With 54% of revenues
from municipal clients and 46% from industrial clients, the majority of
Veolia's revenues are under long-term contracts providing good visibility on
revenues. Following years of operational improvements, Veolia is now uniquely
positioned to drive growth through its exposure to fast growing emerging
markets and bolt-on acquisitions.
During March we decided to commit US $15 million to the TCI Real Estate
Partners Fund III. TCI is an investment firm headquartered in London with US
$26 billion under management whose founder, Chris Hohn, has passed the majority
of his wealth to a children and climate change-focused foundation named the
Children's Investment Fund Foundation (CIFF)*. Whilst TCI has focused on global
equities, the firm created a credit strategy in 2009 for CIFF, a UK charity.
This strategy provides asset-backed loans to prime real estate development
projects that are best in class in terms of energy efficiency and environmental
standards. The strategy has generated returns of circa 11% annually since
inception. Due to the success of the strategy, TCI invited a limited number of
investors to participate alongside CIFF in the new fund. There is no management
fee on the fund and investors will pay a carried interest of 20% over a hurdle
of 6%. The fund has an expected life of 5-7 years.
Private equity
Our holding in private solar developer and operator X-Elio was marked up by
20.8% for the period, adding 3.5% to our NAV. X-Elio successfully completed the
sale of a 186MW portfolio of operating and under-construction solar assets in
Japan to the Development Bank of Japan and Tokyu Land. The enterprise value of
the deal was $720 million, and the equity proceeds to X-Elio (net of all
transaction expenses) was $241 million. X-Elio plans on retaining the sale
proceeds in the company to fund the construction of its secured tariff pipeline
of projects in Mexico, Spain and Japan. X-Elio's remaining operating solar
assets have continued to perform strongly, and the Company has made significant
progress in its development pipeline during the period.
We successfully sold our interest in the Alpina Fund during July, at the Q1
2018 NAV, adjusted for the subsequent Dolan write-up. This sale brought us cash
proceeds of around GBP2.3 million, in addition to the circa GBP1.6 million received
during June from the sale of portfolio company Dolan. Moreover, the sale of
this position releases us from the remaining drawdown commitment of circa GBP2.3
million.
Outlook
We feel happy with the overall quality of the holdings in the portfolio today,
comprising companies with strong competitive positioning, protected by real
barriers to entry. Moreover, with the sale of our interest in the Alpina Fund,
our exposure to legacy private equity fund positions now represents less than
1% of the portfolio, and our remaining portfolio of private investments are all
co-investments in high-quality established businesses with identifiable and
predictable cash-flows. We are maintaining a large cash balance (10% of NAV)
and are approaching all potential new opportunities with caution in the current
environment.
Menhaden Capital Management LLP
Portfolio Manager
24 September 2018
REGULATORY DISCLOSURES
Principal Risks and Uncertainties
The principal risks and uncertainties faced by the Company were explained in
detail within the Company's prospectus issued in July 2015 (the "Prospectus")
and the Annual Report for the year ended 31 December 2017 (the "Annual
Report"). The Directors are not aware of any new risks or uncertainties for the
Company and its investors for the period under review and moving forward,
beyond those stated within the Prospectus and the Annual Report.
Related Parties Transactions
During the first six months of the current financial year, no transactions with
related parties have taken place which have materially affected the financial
position or the performance of the Company.
Going Concern
The Directors believe, having considered the Company's investment objective,
risk management policies, capital management policies and procedures, the
nature of the portfolio and the expenditure projections, that the Company has
adequate resources, an appropriate financial structure and suitable management
arrangements in place to continue in operational existence for the foreseeable
future and, more specifically, that there are no material uncertainties
pertaining to the Company that would prevent its ability to continue in such
operational existence for at least twelve months from the date of the approval
of this half year report. For these reasons, the Directors consider there is
reasonable evidence to continue to adopt the going concern basis in preparing
the accounts.
Directors' Responsibilities Statement
The Board of Directors confirms that, to the best of its knowledge:
i. the condensed set of financial statements contained within the half year
report has been prepared in accordance with FRS 104 'Interim Financial
Reporting' and gives a true and fair view of the assets, liabilities,
financial position and return of the Company; and
ii. the interim management report includes a fair review of the information
required by sections 4.2.7R and 4.2.8R of the UK Listing Authority
Disclosure and Transparency Rules.
In order to provide these confirmations, and in preparing these financial
statements, the Directors are required to:
* select suitable accounting policies and then apply them consistently;
* make judgements and accounting estimates that are reasonable and prudent;
* state whether applicable UK Accounting Standards have been followed,
subject to any material departures disclosed and explained in the financial
statements; and
* prepare the financial statements on the going concern basis unless it is
inappropriate to presume that the Company will continue in business;
and the Directors confirm that they have done so.
Sir Ian Cheshire
Chairman
24 September 2018
CONDENSED INCOME STATEMENT
Six months to 30 June 2018 Six months to 30 June 2017
(unaudited) (unaudited)
Revenue Capital Total Revenue Capital Total
Note GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Gains/(Losses) on investments - 1,185 1,185 - 2,074 2,074
at fair value through profit or
loss
Income from investments 5 989 - 989 570 - 570
AIFM and portfolio management 6 (106) (423) (529) (103) (412) (515)
fees
Other expenses (201) - (201) (251) (35) (286)
Net return / (loss) before 682 762 1,444 216 1,627 1,843
taxation
Taxation on net return (101) - (101) (34) - (34)
Net return / (loss) after 581 762 1,343 182 1,627 1,809
taxation
Return / (loss) per share 7 0.7p 1.0p 1.7p 0.2p 2.0p 2.2p
The total column of this statement is the profit and loss account of the
Company. The supplementary revenue and capital columns are prepared under
guidance issued by the Association of Investment Companies' Statement of
Recommended Practice.
All revenue and capital items in the above statement derive from continuing
operations.
There are no recognised gains or losses other than those shown above and
therefore no Statement of Total Comprehensive Income has been presented.
CONDENSED STATEMENT OF CHANGES IN EQUITY
Share
Share premium Special Capital Revenue
capital account* reserve* reserve reserve Total GBP
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 '000
Six months to 30 June 2017
(unaudited)
Balance at 31 December 2016 800 - 77,371 (9,831) (57) 68,283
Net (loss) / return after - - - 1,627 182 1,809
taxation
Balance at 30 June 2017 800 - 77,371 (8,204) 125 70,092
Six months to 30 June 2018
(unaudited)
Balance at 31 December 2017 800 - 77,371 (4,539) 60 73,692
Net return after taxation - - - 762 581 1,343
Balance at 30 June 2018 800 - 77,371 (3,777) 641 75,035
* The share premium account was cancelled in June 2017 and the 'Special
Reserve' created.
CONDENSED STATEMENT OF FINANCIAL POSITION
As at As at
30 June 2018 31 December 2017
(unaudited) (audited)
GBP'000 GBP'000
Note
Fixed assets
Investments at fair value through profit or loss 67,039 63,333
Current assets
Debtors 376 85
Derivative financial instruments at fair value through profit or loss - 454
Cash 8,228 9,987
8,604 10,526
Current liabilities
Derivative financial instruments at fair value through profit or loss (450) -
Creditors: amounts falling due within one year (158) (167)
(608) (167)
Net current assets 7,996 10,359
Net assets 75,035 73,692
Capital and reserves
Ordinary share capital 800 800
Special reserve 77,371 77,371
Capital reserve (3,777) (4,539)
Revenue reserve 641 60
Equity shareholders' funds 75,035 73,692
Net asset value per share 8 93.8p 92.1p
CONDENSDED CASH FLOW STATEMENT
Six months to Six months to
30 June 2018 30 June 2017
(unaudited) (unaudited)
GBP'000 GBP'000
Net cash (outflow) from operating activities 83 (451)
Investing activities
Purchases of investments (20,100) (15,429)
Sales of investments 18,258 10,095
Net cash (outflow) / inflow from investing (1,842) (5,334)
activities
(Decrease) / Increase in cash and cash (1,759) (5,785)
equivalents
Cash and cash equivalents at beginning of 9,987 15,872
period
Cash and cash equivalents at end of period 8,228 10,087
Notes to the Condensed Interim Financial Statements
1. Financial Statements
The condensed financial statements contained in this interim financial report
do not constitute statutory accounts as defined in s434 of the Companies Act
2006. The financial information for the six months to 30 June 2018 and 30 June
2017 has not been audited or reviewed by the Company's external auditors.
The information for the year ended 31 December 2017 has been extracted from the
latest published audited financial statements. Those statutory financial
statements have been filed with the Registrar of Companies and included the
report of the auditors, which was unqualified and did not contain a statement
under Sections 498(2) or (3) of the Companies Act 2006.
2. Accounting policies
These condensed financial statements have been prepared on a going concern
basis in accordance with the Disclosure Guidance and Transparency Rules of the
Financial Conduct Authority, FRS 104 'Interim Financial Reporting', the
Statement of Recommended Practice 'Financial Statements of Investment Trust
Companies and Venture Capital Trusts' issued in November 2014 and updated in
January 2018 and using the same accounting policies as set out in the Company's
Annual Report for the year ended 31 December 2017.
3. Going concern
After making enquiries, and having reviewed the investments, Statement of
Financial Position and projected income and expenditure for the next 12 months,
the Directors have a reasonable expectation that the Company has adequate
resources to continue in operation for the foreseeable future. The Directors
have therefore adopted the going concern basis in preparing these financial
statements.
4. Principal Risks and Uncertainties
The principal risks facing the Company together with an explanation of these
risks and how they are managed is contained in the Strategic Report and note 14
of the Company's Annual Report for the year ended 31 December 2017.
5. Income
Six months to Six months to
30 June 2018 30 June 2017
GBP'000 GBP'000
Income from investments
UK dividends 71 62
Overseas dividends 911 462
Fixed interest income 7 46
Total income 989 570
6. AIFM and portfolio management fees
Six months to 30 June 2018 Six months to 30 June 2017
(unaudited) (unaudited)
Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
AIFM fee 16 65 81 16 63 79
Portfolio management 90 358 448 87 349 436
fee
106 423 529 103 412 515
7. Return per share
The revenue and capital returns per share are based on 80,000,001 shares, being
the weighted average number of Ordinary shares in issue during the six months
to 30 June 2018 and 30 June 2017.
The calculation of the total, revenue and capital losses per share is carried
out in accordance with IAS 33, "Earnings per Share".
8. Net asset value per share
The net asset value per share is based on the number of shares in issue at 30
June 2018 and 31 December 2017 of 80,000,001.
9. Transaction Costs
Purchase transaction costs for the six months ended 30 June 2018 were GBP7,000
(six months ended 30 June 2017: GBP9,000). These comprise mainly commission and
stamp duty. Sales transaction costs for the six months ended 30 June 2018 were
GBP12,000 (six months ended 30 June 2017: GBP27,000). These comprise mainly
commission.
10. Fair value hierarchy
The methods of fair value measurement are classified into a hierarchy based on
reliability of the information used to determine the valuation.
Level 1 - Quoted prices in active markets.
Level 2 - Inputs other than quoted prices included within Level 1 that are
observable (i.e. developed using market data), either directly or
indirectly.
Level 3 - Inputs are unobservable (i.e. for which market data is unavailable)
The table below sets out the Company's fair value hierarchy investments as at
30 June 2018.
Level 1 Level 2 Level 3 Total
GBP'000 GBP'000 GBP'000 GBP'000
As at 30 June 2018
Investments 44,503 157 22,379 67,039
Derivatives - (450) - (450)
As at 31 December 2017
Investments 42,640 156 20,537 63,333
Derivatives - 454 - 454
For further information please contact:
Frostrow Capital LLP
Company Secretary
0203 709 8734
www.frostrow.com
A copy of the Half Year Report has been submitted to the National Storage
Mechanism and will shortly be available for inspection at http://
www.morningstar.co.uk/uk/NSM
The Half Year Report will also shortly be available on the Company's website at
www.menhaden.com where up to date information on the Company, including NAV,
share prices and fact sheets, can also be found.
Neither the contents of the Company's website nor the contents of any website
accessible from hyperlinks on the Company's website (or any other website) is
incorporated into or forms part of this announcement.
ENDS
END
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