TIDMTCA
RNS Number : 7164U
Terra Capital PLC
20 January 2017
Terra Capital Plc
Fund Manager's Update Regarding Q4 2016
Terra Capital Plc. ('TCA' or the 'Fund'), the AIM quoted
investment trust focused on investing in value opportunities
globally, primarily in frontier markets is pleased to report that
it has received the latest report from Terra Partners Asset
Management Limited ('TPAM' or the 'Fund Manager'), covering its
activities in Q4 2016.
The Fund Manager's update covering Q4 2016 is reproduced
below.
Terra Partners Asset Management Limfited
Portomaso Tower, 8/5A
Portomaso Avenue
St Julian's STJ 4011 MALTA
Telephone +356 2371 7000
Regulated by the Malta Financial Services Authority, Reg. No. C
56353
Registered Investment Adviser with the US Securities &
Exchange Commission
January 20(th) , 2017
Terra Partners Asset Management Limited ('TPAM' or the 'Fund
Manager') presents its Fourth Quarter 2016 Update to shareholders
regarding the activities of Terra Capital Plc. ('TCA' or the
'Fund'), an AIM quoted investment trust investing globally in value
opportunities, primarily in frontier markets. The opinions
expressed in this document represent the views of TPAM, the Fund
Manager of TCA, at the time of its preparation. This document has
been prepared from publicly available information, internally
developed data and other sources believed to be reliable, and all
reasonable precautions have been taken to ensure its accuracy;
however, no representation or warranty about the accuracy of the
information contained in, or of any omissions from, this document
or any supplementary information made available to any interested
party or its advisers is implied, and any liability in respect of
such information or omissions is hereby expressly disclaimed.
Note that the information herein is not all of the information
TPAM had available, or which it relied upon, when making its
initial and continuing investment decisions. TPAM reserves the
right to amend the information provided herein, and its opinions,
at any time, and undertakes no obligation (express or implied) to
provide any recipient with any further information or to correct
any inaccuracies or omissions which may subsequently become
apparent. Readers are advised that a fund managed by TPAM, and some
officers and employees of TPAM currently own positions in TCA. This
document is for information purposes only and it is not intended as
an offer or solicitation regarding the purchase or sale of any
security or investment vehicle.
Investments in Emerging and Frontier markets usually suffer from
liquidity problems, and are often affected by governmental
interference in the free market, local politics and vagaries in
commodity and currency prices; therefore, their prices can be very
volatile. This means that it can be difficult to acquire and
subsequently sell the shares "noted" in TCA's portfolio. All
current and prospective investors should be aware that PAST
PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
All solicitations or offers regarding TCA are made and
transacted on the public market of the AIM Section of the London
Stock Exchange and occur by reference to TCA's Offering Memorandum
and the document titled "Tender Offer to Purchase Ordinary Shares
at the Tender Price and Restructuring and Amendment to the
Directors' Incentive Plan and Change of name to Terra Capital PLC
and Notice of Extraordinary General Meeting" of the April 30, 2012
(the "Circular") as amended by subsequent resolutions, primarily
the one passed at the January 26, 2015 EGM. Documents are
accessible on TCA's website www.terracapitalplc.com in the
"Investor Centre" tab under the Documents and Announcements section
of the file "AIM Rule 26". This website contains important
information which may supplement, modify or differ from the
information contained herein and no prospective investment decision
should be considered before careful reading of documentation found
on TCA's website.
By accepting this document, you agree to be bound by the
foregoing limitations.
TCA's 4(th) Quarter 2016 Return & Portfolio
The Fund's NAV increased to $1.016 at December 31, 2016 from
$0.997 as of September 30, 2016, a net total return of 1.9% for the
quarter. For the calendar year, the Fund's NAV increased 13.9%,
which includes the dividend payment in February 2016.
The Fund's investment level (equity, fixed income and hedging)
increased from 85.8% at September 30 (including commitment to Terra
Argentine Fund, L.P.) to 86.3% at December 31. The Fund has
maintained an excess of cash in order to fund the expected take-up
of the tender offer that was announced on December 12, 2016.
Specific Areas of Investment
Americas
The allocation to the Americas increased from 23.5% to 25.5% and
is the Fund's largest regional allocation. The Fund continued to
allocate to its investment strategy in Brazil. The only other
portfolio change was a decrease in its position Refineria La
Pampilla (Peru).
Europe
The Fund's exposure to Europe decreased from 20.2% to 18.9% and
is the second largest regional allocation. The Fund liquidated its
position in Hrvatski Telekom (Croatia) and decreased its positions
in X5 Retail (Russia) and Silvano Fashion Group (Estonia). The Fund
added a new position in Fabryki Mebli Forte (Poland).
Asia
The Fund's exposure to Asia decreased marginally from 16.4% to
16.3%. The Fund liquidated its position in Century Pacific Food
(Philippines) and decreased its position in Bank of Georgia
(Georgia). The Fund added a new position in Great Wall Motor
Company (China) and increased its position in Summit Power
(Bangladesh).
Middle East
The Fund's exposure to the Middle East increased on the quarter
from 15.7% to 16.2%. The Fund increased its positions in Blom Bank
(Lebanon), Abu Dhabi Commercial Bank (UAE), and Solidere (Lebanon)
and initiated a new position in Ooredoo (Oman). The Fund liquidated
its position in Seef Properties (Bahrain).
Africa
The allocation to Africa decreased slightly from 10.0% to 9.4%.
The Fund decreased its positions in UACN (Nigeria), Residences Dar
Saada (Morocco) and liquidated its position in Umeme (Uganda). The
Fund initiated new positions in Emaar Misr for Development (Egypt)
and Co-operative Bank of Kenya (Kenya). There were no other
portfolio changes during the period.
Fund Details
The following pages detail the Fund's holdings, changes from the
prior quarter, and the total return of each company's shares over
the quarter in both U.S. dollars and local currency. The numbers
provided are based on TPAM's internal calculations.
Change 4Q 4Q
in US$ LC$
Market % of Share Total Total
Region Country Security Shares Value Fund Holdings Return Return
---------- ------------- ------------------------ ----------- ----------- ------- ----------- -------- --------
Residences Dar
AFRICA Morocco Saada 55,843 1,019,485 1.47% Decrease 4.37% 8.66%
South No
Africa Holdsport Ltd. 230,501 989,040 1.42% Change 4.76% 4.75%
No
Tunisia One Tech Holding 248,305 916,215 1.32% Change 8.56% 13.33%
Automobile reseau
tunisien et No
Tunisia services 246,934 837,192 1.21% Change -4.70% -0.51%
No
Tunisia Tunisie Leasing 87,818 699,921 1.01% Change -4.58% -0.38%
Burkina No
Faso Onatel BF 29,509 563,360 0.81% Change -11.50% -6.25%
South Onelogix Group No
Africa Ltd. 2,128,792 519,257 0.75% Change 12.02% 12.04%
Emaar Misr for
Egypt Development 2,998,000 479,734 0.69% New -36.47% 29.46%
Co-operative
Kenya Bank of Kenya 2,974,100 383,118 0.55% New 5.63% 6.88%
Nigeria UAC of Nigeria 1,043,009 55,628 0.08% Decrease -19.18% -19.18%
Nigerian Breweries No
Nigeria PLC 70,000 32,867 0.05% Change -0.67% -0.67%
Uganda Umeme Ltd. 0 0 0.00% Liquidated -10.70% -4.57%
------------- ----------------------------------- ----------- ----------- ------- ----------- -------- --------
6,495,817 9.35%
AMERICAS Brazil XXXX 745,146 4,063,598 5.85% Increase
Terra Argentine No
Argentina Fund LP 1,700,000 2,671,868 3.85% Change
National Commercial No
Jamaica Bank Jamaica 5,431,719 2,101,408 3.03% Change 21.52% 22.65%
Terra Argentine No
Argentina Fund LP Commitment 1,700,000 2.45% Change
Scotia Group No
Jamaica Jamaica 5,429,031 1,543,770 2.22% Change 15.60% 16.67%
IRSA Inversiones
y represent. No
Argentina SA GDR RCTP 81,433 1,501,625 2.16% Change -2.90% -2.90%
Copa Holdings No
Panama SA - Class A 15,265 1,386,520 2.00% Change 3.88% 3.88%
Jamaica Money
Market Brokers No
Jamaica - Jamaica 8,500,000 953,652 1.37% Change 12.19% 13.23%
No
Peru Ferreycorp SAA 1,827,387 920,228 1.33% Change 3.62% 2.42%
Refineria La
Peru Pampilla SA 12,664,695 879,283 1.27% Decrease -10.37% -11.41%
------------- ----------------------------------- ----------- ----------- ------- ----------- -------- --------
17,721,951 25.52%
No
ASIA Bangladesh Square Pharma 692,707 2,186,435 3.15% Change 3.09% 3.50%
Bangladesh Summit Power 2,596,398 1,217,267 1.75% Increase 14.80% 15.26%
No
Philippines RFM Corporation 11,003,750 1,131,434 1.63% Change 18.33% 21.43%
Kcell JSC - No
Kazakhstan GDRs 318,630 1,019,616 1.47% Change -4.76% -4.76%
No
China Qingling Motors 3,042,615 922,165 1.33% Change -0.40% -0.42%
No
Philippines Belle Corp 12,000,000 774,194 1.11% Change 4.64% 7.38%
Ardent Leisure No
Australia Group 372,606 629,205 0.91% Change -19.76% -14.80%
Travellers International No
Philippines Hot 9,300,000 616,875 0.89% Change -2.55% 0.00%
No
Philippines Emperador Inc. 4,279,000 603,891 0.87% Change -5.91% -3.45%
Great Wall Motor
China Company-H 569,000 531,306 0.77% New -4.08% -4.11%
Bank of Georgia
Georgia Holdings Plc 12,480 458,987 0.66% Decrease -2.20% 2.75%
Lotte Chilsung
beverage Co No
Korea - Pref 749 441,016 0.64% Change -12.47% -3.92%
Kumho Petro
Chemical Co No
Korea - PFD 17,850 433,730 0.62% Change -3.64% 5.78%
Shinyoung Securities No
Korea LTD 8,370 347,064 0.50% Change -7.89% 1.11%
Century Pacific
Philippines Food Inc. 0 0 0.00% Liquidated -2.67% -0.12%
------------- ----------------------------------- ----------- ----------- ------- ----------- -------- --------
11,313,185 16.29%
Any Security
Printing Co.Plc No
EUROPE Hungary (AlamiNyomda) 553,679 2,142,325 3.08% Change 0.94% 7.57%
Galenika-Fitofarmacija No
Serbia DP 79,115 1,839,491 2.65% Change -8.69% -2.79%
No
Italy QF Polis 1,789 1,538,202 2.21% Change -9.32% -3.88%
Komercijalna No
Macedonia Banka AD Skopje 28,845 1,407,329 2.03% Change 8.71% 16.51%
Kernel Holding No
Ukraine SA 86,323 1,317,003 1.90% Change -1.01% 8.00%
Russsia X5 Retail GDR 39,416 1,279,049 1.84% Decrease 12.01% 12.01%
No
Slovenia Gorenje Velenje 175,399 1,106,617 1.59% Change -28.72% -24.11%
Crnogorski Telekom No
Montenegro a.d. 222,624 660,696 0.95% Change -7.07% -1.07%
FABRYKI MEBLI
Poland FORTE SA 34,955 634,779 0.91% New -7.12% 1.33%
Silvano Fashion
Estonia Group AS 148,299 461,967 0.67% Decrease 32.39% 41.01%
QF BNL Portfolio No
Italy IMM 845 414,848 0.60% Change -15.74% -8.89%
No
Bulgaria Speedy AD 16,818 328,928 0.47% Change -5.44% 0.69%
Hrvatski Telekom
Croatia DD 0 0.00% Liquidated -3.47% 3.32%
------------- ----------------------------------- ----------- ----------- ------- ----------- -------- --------
13,131,234 18.91%
MIDDLE Blom Bank GDS
EAST Lebanon ord B shs 173,272 1,888,665 2.72% Increase 6.86% 6.86%
No
Oman Bank Muscat 995,671 1,220,667 1.76% Change 16.82% 16.83%
ABU DHABI COMMERCIAL
U.A.E. BANK 593,000 1,113,994 1.60% Increase 6.98% 6.98%
Lebanon Solidere- GDRs 109,849 1,098,494 1.58% Increase 4.93% 4.93%
No
U.A.E. Air Arabia PJSC 2,947,000 1,067,114 1.54% Change -2.21% -2.21%
Al Meera Consumer No
Qatar Goods 21,218 1,022,786 1.47% Change -14.37% -14.39%
No
Oman Oman Refreshment 175,000 979,545 1.41% Change 0.22% 0.23%
No
Qatar Doha Bank QSC 83,692 802,255 1.16% Change -6.18% -6.18%
Gulf Hotel Group No
Bahrain b.s.c. 444,273 754,143 1.09% Change -0.01% 0.00%
Gulf Warehousing No
Qatar Company 40,750 626,785 0.90% Change 1.85% 1.82%
No
Oman Oman Cement 464,950 572,432 0.82% Change 5.32% 5.33%
Oman OOREDOO 59,031 101,196 0.15% New -5.72% -5.71%
SEEF Properties
Bahrain b.s.c. 0 0 0.00% Liquidated 7.99% 8.00%
------------- ----------------------------------- ----------- ----------- ------- ----------- -------- --------
11,248,077 16.20%
Total Equity
Holdings 59,910,263 86.27%
Cash 9,538,403 13.73%
Total Fund 69,448,666
* These figures were prepared by the Fund Manager based on its
internal records and calculations.
Revision of Licence - Terra Partners Asset Management
Limited
In December 2016, the Malta Financial Services Authority issued
TPAM with a revised Investment Services Licence to act as an
Alternative Investment Fund Manager ('AIFM') in terms of Directive
2011/61/EU (the 'Alternative Investment Fund Managers Directive' or
'AIFMD'). Prior to this date, TPAM operated under a de minimis AIFM
licence.
RESPECTFULLY SUBMITTED BY:
Terra Partners Asset Management Limited
Portomaso Tower, 8/5A, Portomaso Avenue,
St. Julian's STJ 4011 MALTA
Regulated by the Malta Financial Services Authority, Reg. No. C
56353
Registered Investment Adviser with the US Securities &
Exchange Commission
Contact: Galileo Fund Services Limited (Administrator)
Ian Dungate or Suzanne Jones
+44 1624 692600
Panmure Gordon (Nominated adviser and corporate broker)
Paul Fincham or Jonathan Becher
+44 20 7886 2500
NOTES:
Terra Capital Plc is an AIM quoted investment trust focussed on
generating high absolute returns while ensuring volatility is kept
to a minimum. The fund predominantly invests in under-researched
and under-valued companies. The Fund Manager targets companies that
are trading at less than their intrinsic worth and so, aside from
any potential growth prospects, provide scope for capital
appreciation as a result of a reversion towards underlying value.
Investments are also made in companies which are viewed as fair
value but offer opportunities for growth at a reasonable price. Due
to inherent market inefficiencies, the Fund Manager believes many
such 'value' opportunities can be found in Frontier Markets and
utilises in-house teams of analysts on the ground in areas of
interest to investigate suitable opportunities rather than rely on
third party research.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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