FGF Fram Glbl&Fin

RNS Number:2855A
Framlington Global Fin & Inc Fd Ld
22 August 2002

Framlington Global Financial & Income Fund Limited (the "Company")

Trading Update

The Company will shortly repay a further #5 million of its loan facility with
Bank of Scotland from existing cash resources, incurring swap break costs of
approximately #265,000. The repayment will reduce the principal amount
outstanding to #15 million and leave #2.2 million deposited under its cash
offset arrangement. The asset cover of the Company will be 1.88 times on the
basis of its net asset value as at 20 August 2002, after the repayment of #5
million and taking account of the cash offset, against the requirement of 1.70
times under the asset cover covenant. The total assets of the Company following
the repayment, at mid market and bid prices, are invested and allocated as
follows:

Existing allocation of total assets
                                                Mid-basis                              Bid-basis

                                                   %         # million               %         # million

Global Financial Portfolio                      62.4             16.36            66.3             16.33

Income Portfolio                                28.9              7.57            24.4              6.02

Cash                                             8.7              2.29             9.3              2.29

Total assets                                   100.0             26.22           100.0             24.64




                                                                             Mid-basis         Bid-basis
                                                                             # million         # million

Borrowings                                                                       15.00             15.00

Zero dividend preference shares (at current accrued entitlement as at             9.21              9.21
20 August 2002) issued out of the Company's subsidiary, Framlington
Global Financial & Income Securities Limited
Assets attributable to Ordinary shares                                            2.01              0.43

Total assets                                                                     26.22             24.64





As at 20 August 2002 the Company's Income Portfolio (at mid-market and bid
prices) is comprised as follows:
                                 % of total assets               Mid-basis                Bid-basis
                                 invested in other split
                                 capital or high income       %        # million            %    # million
                                 trusts and companies

Class AAA investments            0%                              9.0          0.68        9.8         0.59

Class AA investments             0% to 5%                       19.7          1.49       20.1         1.21

Class A investments              5% to 25%                      63.8          4.83       64.1         3.86

Class B investments              25% to 50%                      6.1          0.46        5.5         0.33

Class C investments              Over 50%                        1.4          0.11        0.5         0.03

                                                               100.0          7.57      100.0         6.02

On 1 August 2002 the buy back authority over 14.99% of the zero dividend
preference shares granted at shareholders' meetings held on 23 May 2002 became
fully utilised. The directors therefore intend to seek shareholders' authority
to buy back a further 14.99% of the reduced number of 8,501,000 zero dividend
preference shares in issue. Although to date, no ordinary shares have been
repurchased under the existing buyback authority over 7.5% of the ordinary share
capital in issue, the directors are also intending to seek the authority of
shareholders to increase this power to 14.99% of ordinary shares in issue due to
the current depressed share price and subject to a minimum repurchase price of
0.5 pence per share. Priority will once again be given to repurchases of the
zero dividend preference shares.


On 20 June 2002, the Company announced in its interim results that, subject to
unforeseen circumstances, the reduced quarterly dividend of 0.75p per Ordinary
share should be sustainable. However, as a result of continuing market weakness,
further dividend cuts and suspensions of investment funds in which the Company
invests and the level of cover on the Zero Dividend Preference shares, it is
currently unclear what, if any, dividends the Board will be able to declare on
the Ordinary shares for the year to 30 November 2002. In the circumstances the
Board does not intend declaring a dividend for the period to 31 August but will
after the end of the year to 30 November, review the situation and, if finances
have improved sufficiently, declare a dividend for the six month period.

Enquiries:
Paul Branigan                                                020 7374 4100

Framlington Investment Management Limited


22 August 2002




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

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