Menhaden Resource Efficiency PLC Annual Report for the year ended 31 December 2022
Menhaden
Resource
Efficiency
Menhaden Resource Efciency PLC
Annual Report for the year ended 31 December 2022
Environment
This report is printed on Revive 100% White Silk a totally recycled paper produced using 100% recycled waste at a mill that has been awarded
the ISO 14001 certificate for environmental management.
The pulp is bleached using a totally chlorine free (TCF) process.
Menhaden Resource Efficiency PLC
25 Southampton Buildings
London WC2A 1AL
www.menhaden.com
Tel +44(0) 203 008 4910
A member of the Association of Investment Companies
Disability Act
Copies of this annual report and other documents issued by the Company are available from the Company Secretary. If needed, copies can be
made available in a variety of formats, including Braille, audio tape or larger type as appropriate. You can contact the Registrar to the Company,
Link Asset Services, which has installed telephones to allow speech and hearing impaired people who have their own telephone to contact them directly,
without the need for an intermediate operator, for this service please call 0800 731 1888.
Specially trained operators are available during normal business hours to answer queries via this service. Alternatively, if you prefer to go through
a ‘typetalk’ operator (provided by the RNID) you should dial 18001 followed by the number you wish to dial.
Menhaden PLC – Annual Report
Company Summary
Menhaden PLC (the “Company”) is an investment trust. Its shares are listed on the premium segment of the Official
List and traded on the main market of the London Stock Exchange. The Company is a member of the Association of
Investment Companies.
Investment Objective
The Company aims to generate long-term shareholder returns, predominantly in the form of capital growth, by investing
in businesses and opportunities delivering or benefiting from the efficient use of energy and resources irrespective of
their size, location or stage of development.
Management
The Company employs Frostrow Capital LLP as its Alternative Investment Fund Manager (“AIFM”) to provide company
management, company secretarial, administrative and marketing services. Frostrow and the Company have jointly
appointed Menhaden Capital Management LLP as the Portfolio Manager. Further details of these appointments are
provided on pages 25 and 26.
Capital Structure
The Company’s capital structure is composed solely of Ordinary Shares. Details are given on page 36 and in note 12
to the financial statements on page 75.
ISA Status
The Company’s shares are eligible for Stocks and Shares ISAs.
Retail Investors advised by IFAs
The Company currently conducts its affairs so that its shares can be recommended by Independent Financial Advisers
(“IFAs”) in the UK to ordinary retail investors in accordance with the Financial Conduct Authority (“FCA”) rules in relation
to non-mainstream investment products and intends to continue to do so. The shares are excluded from the FCA’s
restrictions which apply to non-mainstream pooled investment products because they are shares in an investment
trust.
Menhaden
Menhaden are forage fish that occur in great abundance in the West Atlantic Ocean. The name, Menhaden, is derived
from the Native American expression “he fertilises” referring to the wide spread use of the fish as a fertiliser. Menhaden
filter vast quantities of water and play a key role in the food chain. It has been argued that the environmental movement
and fisheries ecology rose from the first collapse in the population of Menhaden in the 1860s as this was used as a
prominent example of mankind’s impact on the oceans and the importance of using resources sustainably.
Menhaden Capital PLC
Annual Report for the period from incorporation on
30 September 2014 to 31 December 2015
A member of the Association of Investment Companies
Disability Act
Copies of this annual report and other documents issued by the Company are available from the Company Secretary. If needed, copies can be
made available in a variety of formats, including Braille, audio tape or larger type as appropriate. You can contact the Registrar to the Company,
Link Asset Services, which has installed telephones to allow speech and hearing impaired people who have their own telephone to contact them directly,
without the need for an intermediate operator, for this service please call 0800 731 1888.
Specially trained operators are available during normal business hours to answer queries via this service. Alternatively, if you prefer to go through
a ‘typetalk’ operator (provided by the RNID) you should dial 18001 followed by the number you wish to dial.
Environment
This report is printed on Revive 100% White Silk a totally recycled paper produced using 100% recycled waste at a mill that has been awarded
the ISO 14001 certificate for environmental management.
The pulp is bleached using a totally chlorine free (TCF) process.
Menhaden PLC
25 Southampton Buildings
London WC2A 1AL
www.menhaden.com
Tel +44(0) 203 008 4910
Perivan 257636
Perivan.com
Menhaden Resource Efciency PLC – Annual Report
Company Summary
Menhaden Resource Efficiency PLC (the “Company”) is an investment trust. Its shares are listed on the premium
segment of the Official List and traded on the main market of the London Stock Exchange. The Company is a member
of the Association of Investment Companies (“AIC”).
Investment Objective
The Company aims to generate long-term shareholder returns, predominantly in the form of capital growth, by investing
in businesses and opportunities that are demonstrably delivering or benefiting significantly from the efficient use of
energy and resources irrespective of their size, location or stage of development.
Management
The Company employs Frostrow Capital LLP (“Frostrow”) as its Alternative Investment Fund Manager (“AIFM”) to provide
company management, company secretarial, administrative and marketing services. Frostrow and the Company have
jointly appointed Menhaden Capital Management LLP as the Portfolio Manager. Further details of these appointments
are provided on page 25.
Capital Structure
The Company’s capital is composed solely of ordinary shares. Details are given on page 39 and in note 13 to the
financial statements on page 79.
ISA Status
The Company’s shares are eligible for Stocks and Shares ISAs.
Retail Investors advised by IFAs
The Company currently conducts its affairs so that its shares can be recommended by Independent Financial Advisers
(“IFAs”) in the UK to ordinary retail investors in accordance with the Financial Conduct Authority (“FCA”) rules in relation
to non-mainstream investment products and intends to continue to do so. The shares are excluded from the FCA’s
restrictions which apply to non-mainstream pooled investment products because they are shares in an investment
trust.
Menhaden
Menhaden are forage fish that occur in great abundance in the West Atlantic Ocean. The name, Menhaden, is derived
from the Native American expression “he fertilises” referring to the widespread use of the fish as a fertiliser. Menhaden
filter vast quantities of water and play a key role in the food chain. It has been argued that the environmental movement
and fisheries ecology rose from the first collapse in the population of Menhaden in the 1860s as this was used as a
prominent example of mankind’s impact on the oceans and the importance of using resources sustainably.
Menhaden Capital PLC
Annual Report for the period from incorporation on
30 September 2014 to 31 December 2015
01
Menhaden Resource Efficiency PLC
Annual Report for the year ended 31 December 2022
1 2
Strategic Report
2 Company Performance
4 Portfolio Profile
5 Chairman’s Statement
8 Investment Objective and Policy
10 Investment Committee
11 Investment Process
12 Portfolio
14 Portfolio Manager’s Review
19 Environmental Impact Statement
24 Business Review
Governance
36 Board of Directors
38 Directors’ Report
42 Statement of Directors’
Responsibilities
43 Corporate Governance Statement
50 Audit Committee Report
54 Directors’ Remuneration Report
57 Directors’ Remuneration Policy
58 Independent Auditor’s Report
3 4
Financial Statements
66 Income Statement
67 Statement of Changes in Equity
68 Statement of Financial Position
69 Statement of Cash Flows
70 Notes to the Financial Statements
Further Information
86 Shareholder Information
87 Glossary
89 How to Invest
91 Notice of Annual General Meeting
96 Explanatory Notes to the
Resolutions
98 Company Information
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Strategic Report
1
02
Menhaden Resource Efficiency PLC
Annual Report for the year ended 31 December 2022
Company Performance
129.8p
NAV per share
2021: 155.7p
89.0p
Share price
2021: 112.0p
31.4%
Share price discount
to NAV per share*
2021: 28.1%
(16.5)%
NAV per share
(total return)*
2021: 17.3%
(20.3)%
Share price
(total return)*
2021: 13.1%
1.8%
Total ongoing charges*
2021: 1.8%
This report contains terminology that may be unfamiliar to some readers. The Glossary on pages 87 and 88 provides
definitions for frequently used terms.
*Alternative performance measures (“APMs”)
As at
31 December 2022
For the year ended
31 December 2022
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Total Return Performance – One Year
Total Return Performance – Three Years
Source: Frostrow Capital LLP, Office for National Statistics
Rebased to 100 as at 31 December 2021
Source: Frostrow Capital LLP, Office for National Statistics
Rebased to 100 as at 31 December 2019
Total Return Performance – Five Years
80.0
100.0
120.0
140.0
160.0
180.0
%
Dec 19Dec 17 Jun 18 Jun 19Dec 18 Jun 20 Dec 20 Jun 21 Dec 21 Jun 22 Dec 22
RPI+3% Share Price Total Return NAV Total Return
Source: Frostrow Capital LLP, Office for National Statistics
Rebased to 100 as at 31 December 2017
03
Menhaden Resource Efficiency PLC
Annual Report for the year ended 31 December 2022
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Strategic Report
1
04
Menhaden Resource Efficiency PLC
Annual Report for the year ended 31 December 2022
Portfolio Distribution
Portfolio Profile
5.8%
16.9%
77.3%
Public Equities
Liquidity
Private Investments
By Asset Allocation
28.5%
5.0%
3.4%
Europe
North America
Emerging Markets
63.1%
UK
By Geography
9.5%
0.9%
41.7%
11.4%
Sustainable Infrastructure
and Transportation
Clean Energy
Digitisation
Industrial Emissions Reduction
36.5%
Water and Waste Management
By Theme
Investment Themes
Theme Description
Clean energy Companies involved in the production and transmission of power from clean
sources such as solar or wind.
Industrial emissions reduction Companies focused on improving energy efficiency (e.g. in buildings or
manufacturing processes) or creating emissions reduction products or services.
Companies in the infrastructure and transport sectors helping to reduce
harmfulemissions.
Water and waste management Companies with products or services that enable reductions in usage/volumes
and/or smarter ways to manage water and waste.
Digitisation Companies that facilitate reduced resource consumption through digital technology.
Reporting Companies providing the means for environmental reporting and evaluation.
Sustainable infrastructure and
transportation
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