RNS Number : 1354X
  Osprey Smaller Cos Income Fund Ltd
  19 June 2008
   


 OSPREY SMALLER COMPANIES INCOME FUND LIMITED
 INTERIM MANAGEMENT STATEMENT
 FOR THE PERIOD ENDED 31 MAY 2008

 This unaudited interim management statement has been prepared solely to provide additional information to Shareholders as a body
 to meet the relevant requirements of the UK Listing Authority's Disclosure and Transparency Rules and should not be relied upon
 by any other party or for any other purpose.


 This interim management statement may contain forward-looking statements and these statements:
 * have been made by the Directors in good faith based on the information available to them up to the time of their approval of
 this report; and
 * should be treated with caution due to the inherent uncertainties, including both economic and business risk factors,
 underlying such forward-looking information.

 This unaudited interim management statement relates to the period from 1 March 2008 to 31 May 2008 and contains information that
 covers that period, unless otherwise stated.

 Investment objective
 The principal investment objective of Osprey Smaller Companies Income Fund Limited (the "Company") is to provide an attractive
 level of income to Shareholders with potential for both income and capital growth by investing primarily in companies traded on
 the London Stock Exchange, AIM or PLUS with market capitalisations of less than �1 billion at the point of initial investment.


 Investment approach
 The Company's portfolio is invested in the securities of smaller United Kingdom companies. The Company aims to provide both
 income and capital growth from a portfolio that consists of approximately 30 companies. 


 Although the Company's investment objective is to invest in smaller company securities it may, from time to time, hold a
 proportion of its assets in gilts or other fixed interest securities or cash deposits if the Board and the Investment Adviser
 consider it appropriate to do so.

 Financial performance - Capital gain statistics
                                 31 May 2008                                 29 February 2008                            % change
 Net asset value[1]              164.07p                                     154.47p                                     +6.21%
 Share price[2]                  132.00p                                     122.50p                                     +7.76%
 Discount                        19.55%                                      20.70%                                      -1.15%
 Hoare Govett Smaller Companies  3,569.15                                    3,657.22                                    -2.41%
 Index
 FTSE Small Cap Index            2,745.00                                    2,907.70                                    -5.60%

 Financial performance - Total return statistics
                                 31 May 2008                                 29 February 2008                            % change
 Net asset value[3]              198.32p                                     186.22p                                     +6.50%
 Share price[4]                  166.25p                                     154.25p                                     +7.78%
 Discount                        16.17%                                      17.17%                                      -1.00%
 Hoare Govett Smaller Companies  7,196.63                                    7,288.12                                    -1.26%
 Index
 FTSE Small Cap Index            3,141.27                                    3,288.71                                    -4.48%

 Commentary
 The Company performed well during the period with the net asset value increasing by 6.21% to 164.07p[1], and outperformed the
 FTSE SmallCap Index, which fell by 5.60%, and the Hoare Govett Smaller Companies Index, which fell by 2.41%. The share price
 rose 7.76% to 132.00p at 31 May 2008 and the discount fell to 19.55%.


 [1] Investments valued at bid prices.
 [2] The Company's share price, as referred to above, is the mid price. The share price had a spread of 6.00p at 31 May 2008.
 [3] Investments valued at bid prices with dividends paid since launch added back.
 [4] The Company's share price, as referred to above, is the mid price with dividends paid since launch added back. The share
 price had a spread of 6.00p at 31 May 2008.



 Portfolio
 Top ten holdings as at 31 May 2008

 Stock name                      Sector                                                            % of portfolio
 Fenner                          Manufacturing/engineering                                         6.08
 Weir Group                      Manufacturing/engineering                                         5.89
 Rotork                          Engineering and machinery                                         5.31
 Renishaw                        Engineering                                                       4.94
 Bodycote International          Diversified operations                                            4.91
 James Halstead                  Miscellaneous manufacturing                                       4.73
 Spirax-Sarco Engineering        Engineering                                                       4.61
 Consort Medical                 Medical products                                                  4.58
 RPC Group                       Rigid plastic packaging materials                                 3.86
 TDG                             Distribution, storage and transport                               3.84

 Material events
 The interim report and financial statements for the period ended 29 February 2008 was published on 30 April 2008.

 On 31 May 2008 Roger Alcock retired as Chairman and Director of the Company and Richard Prosser accepted the appointment of
 Chairman. The Board wishes to thank Roger for all of his considerable efforts on behalf of the Company.

 Mr Rhys Davies was appointed as Director with effect from 18 June 2008.

 As advised in the interim report for the period ended 29 February 2008, the Board has held discussions with Manchester &
 Metropolitan Investment Limited, which holds a 29.9% shareholding in the Company, on a number of matters, including a potential
 change to the Investment Adviser of the Company. Since the publication of the interim report these discussions progressed and
 Midas Investment Management replaced Unicorn Asset Management as Investment Adviser to the Company on 18 June 2008.

 A new contract between the Company and Elysium Fund Management Limited ("EFM") was approved on 18 June 2008, with EFM continuing
 to provide Administrator and Company Secretarial duties.

 The Board has proposed that the Company should undertake a tender offer for up to 20 per cent. of its shares in issue to those
 shareholders on the register on 19 June 2008.

 There were no other material events to report during the period, or up to 18 June 2008, being the date of publication of this
 interim management statement.

 Material transactions
 An interim dividend of 2.50p per Ordinary share, which was announced on 19 March 2008 with an ex date of 26 March 2008, was paid
 on 9 April 2008.

 There were no changes in the issued share capital during the period, or up to 18 June 2008. Therefore, at the end of the period,
 and as at 18 June 2008, the issued share capital of the Company was 13,537,000 Ordinary shares of 10p each and the Company held
 500,000 Treasury shares.

 R Prosser
 Chairman
 18 June 2008


 Enquiries to:
 Elysium Fund Management Limited
 2nd Floor
 No. 1 Le Truchot
 St Peter Port
 Guernsey
 GY1 3JX


 elysium@elysiumfundman.com
 Tel: +44 1481 810100
 Fax: +44 1481 810120


This information is provided by RNS
The company news service from the London Stock Exchange
 
  END 
 
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