Jun 2006 Financial News

Praetorian Property Mutual Fund Releases Half Year Results

Jun 30, 2006

For the half year ended March 31, 2006, Praetorian Property Mutual Fund (PPMF) reported a Net Asset Value (NAV) of $5.923, which was 3.00% lower than the September 30, 2005 NAV of $6.106.

The Fund’s Total Assets decreased 3.59% from $251.90 million as at September 30, 2005 to $242.85 million in the current period. Investment Properties grew 8.99% to $129.77 million and continued to be the largest component of Total Assets (53.44%). PPMF’s holdings in Mutual Funds fell 18.80 % to $88.47 million and now represent 36.43% of the funds portfolio of assets; compared to 43.25% as at September 30, 2005.

The Accumulated Surplus rose to $36.91 million while dividends of $12 million, representing 30 cents per Unit, were paid to Unit holders in January 2006.

Total Income for the period increased marginally by 5.59% from $8.72 million at the half year ended March 31, 2005 to $9.21 million for the current period. The main income driver was Rental Income, which increased by 16.98% from $4.47 million in 2005 to $5.23 million in 2006 and which contributed 56.77% to Total Income.

Total Expenses for the period increased considerably by 38.48% from $3.26 million in the comparable prior half year period to $4.52 million in the current period. Fees, Commissions and Service Charges made up 95.99% of Total Expenses.

Net Investment Income before Taxation decreased by 14.08% from $5.46 million in the prior half year ended March 31, 2005, to $4.69 million in the current period. The Effective Tax Rate increased from 0.16% to 0.58% over the comparable periods. Net Investment Income after Taxation decreased by 14.44% from $5.45 million to $4.66 million.

The Market Price of the Fund is currently $4.91 per Unit, and is therefore trading at a discount of 17.10% to the NAV as at March 31, 2006. For the half year ended March 31, 2006, market prices moved within the range of $5.05 to $5.75, which were below the Net Asset Value.


Gia Singh
WISE Research Team