This page shows SVG Capital's geographical, sector and valuation analysis of the portfolio at 30 June 2008.

The portfolio has become more international with the most significant increase in the portfolio’s geographical weighting being the increase in exposure to global companies, which now represent over half of the portfolio. The increase is mainly attributable to the new investment in Arysta Life Science. The decline in the portfolio’s exposure to Asia is a reflection of the fall in the share price of Galaxy Entertainment and the sale of Parkway Holdings.

With the new investment in Arysta Life Science, Chemicals is now the portfolio’s largest sector bias and within that sector, the exposure ranges from crop protection and micro-nutrients to bulk chemicals such as polyurethane. The 4% exposure to financial companies reflects the new investment in Legico.

* Valuations based on earnings are calculated at an appropriate multiple of EBITDA

Almost 70% of the portfolio is valued with reference to the public markets, whether it be on an earnings (57%) or quoted basis (12%).

The largest movement in the portfolio valuation basis was the increase in the percentage of the portfolio written down on an earnings basis, which rose to 31% and has been driven by the revaluation of Valentino from cost to an earnings basis. With the announcement of the realisation of Jet Aviation, the percentage of the portfolio valued on a third-party basis has remained constant, despite the completion of the sale of Intelsat and Aearo Technologies. The decline in the percentage of the portfolio valued on a quoted basis is a result of the sale of Parkway and falls in the value of the quoted portfolio generally.

On a like-for-like basis, the weighted-average gross earnings multiple used to value the portfolio declined by 7.8%, with the weighted-average discounted earnings multiple falling to 8.2 from 7.7 at December 2007. The weighted average composite discount was 17.6%.