Half-year Report

RNS Number : 1024F

City of London Investment Trust PLC

16 February 2018

 

LEGAL ENTITY IDENTIFIER: 213800F3NOTF47H6AO55

THE CITY OF LONDON INVESTMENT TRUST PLC

Unaudited Results for the Half-Year Ended 31 December 2017

This announcement contains regulated information

INVESTMENT OBJECTIVE

The Company's objective is to provide long-term growth in income and capital, principally by investment in equities listed on the London Stock Exchange. The Board continues to recognise the importance of dividend income to shareholders.

PERFORMANCE HIGHLIGHTS

	As at 31 December 2017	As at 30 June 2017
Net asset value per ordinary share	438.9p	421.3p
Premium/(discount)	0.0%	0.5%
Net asset value per ordinary share (debt at fair value)	433.0p	416.1p
Premium/(discount) (debt at fair value)	1.4%	1.8%
Ordinary share price	439.0p	423.5p
Gearing (at par value)	7.8%	5.5%

Dividend yields		As at 31 December 2017		As at 30 June 2017
The City of London Investment Trust plc		3.9%		3.9%
AIC UK Equity Income Sector (Benchmark)		3.7%		3.5%
FTSE All-Share Index		3.8%		3.6%
UK Equity Income OEIC Sector		4.1%		4.1%
Sources: Morningstar for the AIC, Bloomberg
Total return performance to 31 December 2017 (including dividends reinvested and excluding transaction costs)	6 months %	1 year %	3 years %	5 years %	10 years %
Net asset value per ordinary share1	6.2	12.9	30.8	73.2	108.0
AIC UK Equity Income sector average - net asset value2	4.9	13.0	32.4	78.6	108.2
Ordinary share price	5.8	12.6	30.6	69.2	145.2
FTSE All-Share Index	7.2	13.1	33.3	63.0	84.5
UK Equity Income OEIC sector average3	4.3	11.5	28.8	66.5	85.1

Sources: Morningstar for the AIC, Janus Henderson, Datastream

1. Using cum income fair value NAV for six months, one, three and five years and capital NAV plus income reinvested for ten years

2. AIC UK Equity Income sector size weighted average NAV total return (shareholders' funds)

3. The IA peer group average is based on mid-day NAV whereas the returns of the investment trust are calculated using close of business NAV

INTERIM MANAGEMENT REPORT

CHAIRMAN'S STATEMENT

Net Asset Value Total Return

During the six months to 31 December 2017, the major economies of the world experienced strong growth. In the UK, steady growth continued although household income was adversely affected by the rise in inflation. The Bank of England increased its bank rate from 0.25% to 0.5%, its first increase for ten years.

City of London's net asset value total return was 6.2% which was ahead of the AIC UK Equity Income sector average of 4.9% and the IA UK Equity Income OEIC sector average of 4.3%. The FTSE All-Share Index returned 7.2%. The two biggest sector detractors from City of London's performance relative to the Index were mining and oil where we have large holdings in the portfolio but are under-represented relative to the market average. In financial services, the holding in Provident Financial, which was sold, was a notable detractor. On a more positive note, the biggest sector contributor to relative performance was our position in house builders followed by electronic and electrical equipment where our stake in Renishaw performed very well. The below average exposure to pharmaceuticals was the third biggest sector contributor.

Earnings and Dividends

City of London's revenue earnings per share rose by 9.5% to 7.40p. So far this financial year, City of London has declared two interim dividends of 4.30p each. City of London's diverse portfolio, strong cash flow and revenue reserves give the Board confidence that they will be able to increase the dividend for a fifty-second consecutive year. The quarterly rate will be reviewed by the Board before the third interim is declared in April 2018.

Expenses

The ongoing charge which represents the investment management fee and other non-interest bearing expenses as a percentage of shareholders' funds remains low compared with most other equity products. The ongoing charge for the six months indicates a full year rate of 0.42% of net assets.

Material events and transactions during the period

A total of 5,375,000 new shares were issued in the six months to 31 December 2017 at a premium to net asset value.

The proceeds were invested in a mixture of additions to existing investments as well as new holdings. Additions were made to Royal Dutch Shell and BP where cost cutting and the rise in the oil price gave greater confidence in the sustainability of their dividends. Over the six months, Royal Dutch Shell moved to largest holding in the portfolio (from second largest) and BP moved from tenth to fifth. New holdings were bought in Anglo American (mining), Coca-Cola, Orange (French telecoms) and Sabre Insurance. In the Real Estate Investment Trust sector, a new holding was bought in Supermarket Income (which invests in supermarket freehold property) while the holding in Hansteen was sold after a strong share price performance. There were also outright sales of Cembra Money Bank and Sky.

Since the period end a further 825,000 new shares have been issued.

Overall, gearing increased over the six months by 2.3 percentage points to 7.8%. The proceeds from the £50million 2.94% 2049 private placement notes that were funded in November 2017 replaced bank borrowings.

Key Information Document

In line with the new European regulations for packaged investment products which took effect in January 2018, a Key Information Document (KID) has been produced for City of London. The KID is based on prescribed guidelines with almost no room for deviation. The projected returns are derived from past performance and in the view of the Board should be treated with caution. The measure of risk is calculated according to the historic volatility of weekly returns and in our view is not likely to match the perception or meaning of risk for most private investors.

Outlook for the six months to 30 June 2018

After a period of exceptionally low volatility, some turbulence in world equity markets is not unexpected. Moves towards a tighter monetary policy are testing markets but robust economic growth across the main regions of the world is leading to improving corporate profitability. For the many UK listed companies with operations in the US, the tax cuts should lead to further increased earnings, although this may be offset in translation back to sterling by the recent fall in the dollar.

The dividend yield from UK equities remains attractive relative to the main alternatives notwithstanding the small increase in the bank rate to 0.5% and possible further increases in 2018. City of London's diverse portfolio of high quality companies with strong balance sheets is well placed to continue to produce dividend growth and competitive returns.

Philip Remnant CBE

Chairman

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties associated with the Company's business can be divided into the following main areas:

·           Portfolio and market price

·           Investment activity, gearing and performance

·           Tax and regulatory

·           Operational

Information on these risks and how they are managed are given in the Annual Report for the year ended 30 June 2017.  In the view of the Board these principal risks and uncertainties are as applicable to the remaining six months of the financial year as they were to the six months under review.

DIRECTORS' RESPONSIBILITY STATEMENT

The Directors confirm that, to the best of their knowledge:

·     the condensed set of financial statements has been prepared in accordance with FRS 104 "Interim Financial Reporting"; 

·      the Interim Management Report includes a fair review of the information required by Disclosure Guidance and Transparency Rule 4.2.7R (indication of important events during the first six months and description of the principal risks and uncertainties for the remaining six months of the year); and

·      the Interim Management Report includes a fair review of the information required by Disclosure Guidance and Transparency Rule 4.2.8R (disclosure of related party transactions and changes therein).

For and on behalf of the Board

Philip Remnant CBE

Chairman

 INCOME STATEMENT

	(Unaudited) Half-year ended 31 December 2017			(Unaudited) Half-year ended 31 December 2016			(Audited) Year ended 30 June 2017
	Revenue return £'000	Capital return £'000	Total £'000	Revenue return £'000	Capital return £'000	Total £'000	Revenue return £'000	Capital return £'000	Total £'000
Gains on investments held at fair value through profit or loss	-	68,500	68,500	-	83,984	83,984	-	132,750	132,750
Income from investments held at fair value through profit or loss	27,774	-	27,774	24,411	-	24,411	64,172	-	64,172
Other interest receivable and similar income	90	-	90	165	-	165	254	-	254
	--------	--------	--------	--------	--------	--------	--------	--------	--------
Gross revenue and capital gains	27,864	68,500	96,364	24,576	83,984	108,560	64,426	132,750	197,176
Management fees	(791)	(1,846)	(2,637)	(725)	(1,692)	(2,417)	(1,484)	(3,462)	(4,946)
Other administrative expenses	(406)	-	(406)	(400)	-	(400)	(688)	-	(688)
	--------	--------	--------	--------	--------	--------	--------	--------	--------
Net return before finance costs and taxation	26,667	66,654	93,321	23,451	82,292	105,743	62,254	129,288	191,542
Finance costs	(967)	(2,072)	(3,039)	(920)	(1,961)	(2,881)	(1,794)	(3,819)	(5,613)
	--------	--------	--------	--------	--------	--------	--------	--------	--------
Net return on ordinary activities before taxation	25,700	64,582	90,282	22,531	80,331	102,862	60,460	125,469	185,929
Taxation on net return on ordinary activities	(331)	-	(331)	(245)	-	(245)	(1,042)	-	(1,042)
	--------	--------	--------	--------	--------	--------	--------	--------	--------
Net return on ordinary activities after taxation	25,369	64,582	89,951	22,286	80,331	102,617	59,418	125,469	184,887
	=====	=====	=====	=====	=====	=====	=====	=====	=====
Return per ordinary share (note 2)	7.40p	18.84p	26.24p	6.76p	24.38p	31.14p	17.83p	37.64p	55.47p
	=====	=====	=====	=====	=====	=====	=====	=====	=====

The columns of this statement headed "Total" represent the Company's Income Statement, prepared in accordance with FRS 104. The revenue and capital columns are supplementary to this and are published under guidance from the Association of Investment Companies.

The Company has no recognised gains or losses other than those disclosed in the Income Statement and Statement of Changes in Equity.

All items in the above statement derive from continuing operations. No operations were acquired or discontinued during the period.

The accompanying notes are an integral part of these financial statements.

STATEMENT OF CHANGES IN EQUITY

Half-year ended 31 December 2017 (Unaudited)	Called-up share capital £'000	Share premium account £'000	Capital redemption reserve £'000	Other capital reserves £'000	Revenue reserve £'000	Total £'000
At 1 July 2017	84,853	461,753	2,707	832,011	48,598	1,429,922
Net return on ordinary activities after taxation	-	-	-	64,582	25,369	89,951
Issue of 5,375,000 new ordinary shares	1,344	21,554	-	-	-	22,898
Fourth interim dividend (4.30p per share) for year ended 30 June 2017 paid 31 August 2017	-	-	-	-	(14,648)	(14,648)
First interim dividend (4.30p per share) for year ended 30 June 2018 paid 30 November 2017	-	-	-	-	(14,796)	(14,796)
	-----------	------------	-----------	------------	-----------	-------------
At 31 December 2017	86,197	483,307	2,707	896,593	44,523	1,513,327
	======	=======	======	=======	======	========
Half-year ended 31 December 2016 (Unaudited)	Called-up share capital £'000	Share premium account £'000	Capital redemption reserve £'000	Other capital reserves £'000	Revenue reserve £'000	Total £'000
At 1 July 2016	81,290	408,191	2,707	706,542	43,856	1,242,586
Net return on ordinary activities after taxation	-	-	-	80,331	22,286	102,617
Issue of 11,325,000 new ordinary shares	2,831	41,805	-	-	-	44,636
Fourth interim dividend (4.05p per share) for year ended 30 June 2016 paid 31 August 2016	-	-	-	-	(13,177)	(13,177)
First interim dividend (4.05p per share) for year ended 30 June 2017 paid 30 November 2016	-	-	-	-	(13,354)	(13,354)
	-----------	------------	-----------	------------	-----------	-------------
At 31 December 2016	84,121	449,996	2,707	786,873	39,611	1,363,308
	======	=======	======	=======	======	========
Year ended 30 June 2017 (Audited)	Called-up share capital £'000	Share premium account £'000	Capital redemption reserve £'000	Other capital reserves £'000	Revenue reserve £'000	Total £'000
At 1 July 2016	81,290	408,191	2,707	706,542	43,856	1,242,586
Net return on ordinary activities after taxation	-	-	-	125,469	59,418	184,887
Issue of 14,250,000 new ordinary shares	3,563	53,562	-	-	-	57,125
Fourth interim dividend (4.05p per share) for year ended 30 June 2016 paid 31 August 2016	-	-	-	-	(13,177)	(13,177)
First interim dividend (4.05p per share) for year ended 30 June 2017 paid 30 November 2016	-	-	-	-	(13,354)	(13,354)
Second interim dividend (4.05p per share) for year ended 30 June 2017 paid 28 February 2017	-	-	-	-	(13,628)	(13,628)
Third interim dividend (4.30p per share) for year ended 30 June 2017 paid 31 May 2017	-	-	-	-	(14,517)	(14,517)
	-----------	------------	-----------	------------	-----------	-------------
At 30 June 2017	84,853	461,753	2,707	832,011	48,598	1,429,922
	======	=======	======	=======	======	========

The accompanying notes are an integral part of these financial statements.

STATEMENT OF FINANCIAL POSITION

	(Unaudited) 31 December 2017 £'000	(Unaudited) 31 December 2016 £'000	(Audited) 30 June 2017 £'000
Investments held at fair value through profit or loss (note 5)
Listed at market value in the United Kingdom	1,447,500	1,273,736	1,335,266
Listed at market value overseas	182,956	181,096	173,413
Investment in subsidiary undertakings	347	347	347
	-------------	-------------	-------------
	1,630,803	1,455,179	1,509,026
	-------------	-------------	-------------
Current assets
Debtors	5,684	4,483	12,309
Cash at bank	8,226	-	-
	---------	---------	---------
	13,910	4,483	12,309
	---------	---------	---------
Creditors: amounts falling due within one year	(5,702)	(20,338)	(15,381)
	------------	------------	------------
Net current (assets)/liabilities	8,208	(15,855)	(3,072)
	------------	------------	------------
Total assets less current liabilities	1,639,011	1,439,324	1,505,954
Creditors: amounts falling due after more than one year	(125,684)	(76,016)	(76,032)
	------------	------------	------------
Net assets	1,513,327	1,363,308	1,429,922
	=======	=======	=======
Capital and reserves
Called-up share capital (note 3)	86,197	84,121	84,853
Share premium account	483,307	449,996	461,753
Capital redemption reserve	2,707	2,707	2,707
Other capital reserves	896,593	786,873	832,011
Revenue reserve	44,523	39,611	48,598
	-------------	-------------	-------------
Equity shareholders' funds	1,513,327	1,363,308	1,429,922
	=======	=======	=======
Net asset value per ordinary share - basic and diluted (note 4)	438.9p	405.2p	421.3p
	======	======	======

The accompanying notes are an integral part of these financial statements.

NOTES

1.	Accounting Policy - Basis of Preparation
	The condensed set of financial statements has been prepared in accordance with FRS 104, Interim Financial Reporting, issued in March 2015, the reporting standard for half-year reporting that accompanies FRS 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland, which is effective for periods commencing on or after 1 January 2015, and the Statement of Recommended Practice: Financial Statements of Investment Trust Companies and Venture Capital Trusts ('the SORP') issued by the Association of Investment Companies November 2014 and updated in January 2017 with consequential amendments. As an investment fund the Company has the option, which it has taken, not to present a cash flow statement. A cash flow statement is not required when an investment fund meets all the following conditions: substantially all of the entity's investments are highly liquid and are carried at market value; and where a statement of changes in equity is provided.
2.	Return per Ordinary Share
			(Unaudited) Half-year ended 31 December 2017 £'000			(Unaudited) Half-year ended 31 December 2016 £'000			(Audited) Year ended 30 June 2017  £'000
	The return per ordinary share is based on the following figures:
	Revenue return		25,369			22,286			59,418
	Capital return		64,582			80,331			125,469
			----------			----------			----------
	Total		89,951			102,617			184,887
			======			======			======
	Weighted average number of ordinary shares in issue for each period		342,759,597			329,532,287			333,324,047
	Revenue return per ordinary share		7.40p			6.76p			17.83p
	Capital return per ordinary share		18.84p			24.38p			37.64p
			----------			----------			----------
	Total return per ordinary share		26.24p			31.14p			55.47p
			======			======			======
	The Company does not have any dilutive securities, therefore, the basic and diluted returns per share are the same.
3.	Share Capital
	During the half-year ended 31 December 2017, 5,375,000 ordinary shares were issued for total proceeds of £22,898,000 (31 December 2016: 11,325,000 ordinary shares issued for total proceeds of £44,636,000; 30 June 2017: 14,250,000 ordinary shares issued for total proceeds of £57,125,000). The number of ordinary shares in issue at 31 December 2017 was 344,784,868.
4.	Net Asset Value per Ordinary Share
	The net asset value per ordinary share is based on the net assets attributable to the ordinary shares of £1,513,327,000 (31 December 2016: £1,363,308,000; 30 June 2017: £1,429,922,000) and on 344,784,868 ordinary shares (31 December 2016: 336,484,868; 30 June 2017: 339,409,868) being the number of ordinary shares at the period end.
5.	Financial instruments
	The financial assets and financial liabilities are either carried in the statement of financial position at their fair value or the statement of financial position amount is a reasonable approximation of fair value (debtors and creditors falling due within one year). The debenture stock, secured notes, preference stock and preferred ordinary stock are carried in the statement of financial position at par.                                                                                                                                                                    At 31 December 2017, the fair value of the debenture stocks was £47,510,000 (31 December 2016: £49,189,000; 30 June 2017: £48,230,000). The aggregate fair value of the preferred and preference stock was £2,732,000 (31 December 2016: £2,615,000; 30 June 2017: £2,729,000).                                                                                 As at 31 December 2017, the fair value of the secured notes was estimated to be £95,702,000 (31 December 2016: £42,721,000; 30 June 2017: £42,670,000). In the period to 31 December 2017 the Company issued £50m fixed rate 32-year secured notes at an annualised coupon of 2.94%. The valuations of the debenture stocks are obtained from brokers based on market prices. The valuations of the preferred and preference stock are from the Daily Official List quotations. The valuation of the secured loan notes is calculated using a discount rate which reflects the yield on a UK gilt of similar maturity plus a suitable credit spread.                         The debenture stock, preference stock and preferred ordinary stock are categorised as level 1 in the fair value hierarchy. The secured notes are categorised as level 3 in the fair value hierarchy.                           The table below sets out fair value measurements of the investments using the FRS 102 fair value hierarchy. Categorisation within the hierarchy has been determined on the basis of the lowest level input that is significant to the fair value measurement of the relevant asset as follows:       Level 1: valued using quoted prices in active markets for identical assets; Level 2: valued by reference to valuation techniques using observable inputs other than quoted prices included in Level 1; and Level 3: valued by reference to valuation techniques using inputs that are not based on observable market data.
	Financial assets at fair value through profit or loss at 31 December 2017
		Level 1		Level 2			Level 3			Total
		£'000		£'000			£'000			£'000
	Equity investments	1,630,456		-			347			1,630,803
	Total financial assets carried at fair value	1,630,456		-			347			1,630,803
	Financial assets at fair value through profit or loss at 31 December 2016
		Level 1		Level 2			Level 3			Total
		£'000		£'000			£'000			£'000
	Equity investments	1,454,832		-			347			1,455,179
	Total financial assets carried at fair value	1,454,832		-			347			1,455,179
	Financial assets at fair value through profit or loss at 30 June 2017
		Level 1		Level 2			Level 3			Total
		£'000		£'000			£'000			£'000
	Equity investments	1,508,679		-			347			1,509,026
	Total financial assets carried at fair value	1,508,679		-			347			1,509,026
	The valuation techniques used by the Company are explained in the accounting policies note 1 in the Company's Annual Report for the year ended 30 June 2017.
6.	Transaction Costs
	Purchase transaction costs for the half-year ended 31 December 2017 were £545,000 (31 December 2016: £319,000; 30 June 2017: £732,000). These comprise mainly stamp duty and commissions. Sale transaction costs for the half-year ended 31 December 2017 were £35,000 (31 December 2016: £34,000; 30 June 2017: £88,000).
7.	Dividends
	A first interim dividend of 4.30p was paid on 30 November 2017. The second interim dividend of 4.30p (declared on 13 December 2017) will be paid on 28 February 2018 to shareholders on the register on 26 January 2018. The Company's shares went ex-dividend on 25 January 2018.
8.	Related Party Transactions
	Other than the relationship between the Company and its Directors, the provision of services by Janus Henderson is the only related party arrangement currently in place. Other than fees payable by the Company in the ordinary course of business and the provision of marketing services, there have been no material transactions with this related party affecting the financial position of the Company during the period under review.
9.	Going Concern
	The assets of the Company consist of securities that are readily realisable and, accordingly, the Directors believe that the Company has adequate resources to continue in operational existence for at least 12 months from the date of approval of the financial statements. Having assessed these factors and the principal risks, the Board has determined that it is appropriate for the financial statements to be prepared on a going concern basis.
10.	Comparative Information
	The financial information contained in this half-year report does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The figures and financial information for the year ended 30 June 2017 are extracted from the latest published accounts and do not constitute the statutory accounts for that year. Those accounts have been delivered to the Registrar of Companies and included the Report of the Independent Auditors, which was unqualified and did not include a statement under either section 498(2) or 498(3) of the Companies Act 2006.
11.	Company Status
	The City of London Investment Trust plc is UK domiciled investment trust company.
	The SEDOL/ISIN number is GB0001990497. The London Stock Exchange (TIDM) Code is CTY.
	Global Intermediary Identification Number (GIIN) is S55HF7.99999.SL.826.
	Legal Entity Identifier number (LEI) is 213800F3NOTF47H6AO55.
	Company Registration Number
	UK: 00034871                                        New Zealand: 1215729
	Registered Office
	201 Bishopsgate, London EC2M 3AE
	Directors and Secretary
	The Directors of the Company are Philip Remnant CBE (Chairman), Samantha Wren (Audit Committee Chair), Simon Barratt (Senior Independent Director), David Brief and Martin Morgan. Robert Edward (Ted) Holmes has been appointed as non-executive Director with effect from 1 January 2018. David Brief will retire from the Board on 5 April 2018.
	The Corporate Secretary is Henderson Secretarial Services Limited, represented by Rachel Peat FCIS.
	Website
	Details of the Company's share price and net asset value, together with general information about the Company, monthly fact sheets and data, copies of announcements, reports and details of general meetings can be found at www.cityinvestmenttrust.com
12	Half-Year Report The half-year report will shortly be available on the Company's website www.cityinvestmenttrust.com or in hard copy from the Company's registered office. An abbreviated version of the half-year report, the 'Update', will be posted to shareholders in February 2018.

FORTY LARGEST INVESTMENTS

Company	Market value                 31 December 2017 £'000		Company	Market value                31 December 2017 £'000
Royal Dutch Shell	95,976		Phoenix		21,575
British American Tobacco	77,277		AstraZeneca		21,457
HSBC	76,690		BHP Billiton		21,315
Diageo	53,381		Reckitt Benckiser		20,292
BP	50,702		Aviva		20,260
Vodafone	45,826		Croda International		20,120
Prudential	43,829		Schroders		19,705
Lloyds Banking	41,517		British Land		19,016
Unilever	40,850		BT		18,476
RELX	37,206		TUI		17,891
GlaxoSmithKline	31,476		Compass		17,329
Taylor Wimpey	27,864		Berkeley		16,788
Rio Tinto	27,200		Hiscox		16,390
National Grid	27,128		Standard Life Aberdeen		16,154
Land Securities	25,200		Nestle		16,112
SSE	24,420		Segro		14,088
Verizon Communications	24,080		Direct Line Insurance		13,169
Imperial Brands	23,562		Barclays		12,776
BAE Systems	22,920		Ibstock		12,248
Persimmon	21,909		Britvic		11,509
These investments total £1,165,683,000 or 71.5% of the portfolio
Convertibles and all classes of equity in any one company are treated as one investment

SECTOR EXPOSURE

As a percentage of the investment portfolio excluding cash

	%
Financials	25.8
Consumer Goods	20.5
Consumer Services	11.6
Oil & Gas	9.0
Industrials	8.9
Telecommunications	6.7
Utilities	5.6
Basic Materials	5.4
Health Care	5.4
Technology	1.1
	--------
Total	100.0
	=====

INVESTMENTS

Company		Market value                 31 December 2017 £'000			Company	Market value                31 December 2017 £'000
OIL & GAS
Oil & Gas Producers					Beverages
Royal Dutch Shell			95,976		Diageo			53,381
BP			50,702		Britvic			11,509
			146,678		Coca-Cola 1			5,603
Total Oil & Gas			146,678					70,493
					Food Producers
BASIC MATERIALS					Nestle 1			16,112
Chemicals					Tate & Lyle			8,436
Croda International			20,120					24,548
Victrex			6,096		Household Goods & Home Construction
Johnson Matthey			5,535		Taylor Wimpey					27,864
			31,751		Persimmon					21,909
Mining					Reckitt Benckiser					20,292
Rio Tinto			27,200		Berkeley					16,788
BHP Billiton			21,315							86,853
Anglo American			7,748		Personal Goods
			56,263		Unilever					40,850
Total Basic Materials			88,014							40,850
					Tobacco
INDUSTRIALS					British American Tobacco					77,277
Aerospace & Defence					Imperial Brands					23,562
BAE Systems			22,920							100,839
Meggitt			7,999		Total Consumer Goods					333,801
			30,919
Construction & Materials					HEALTH CARE
Ibstock			12,248		Pharmaceuticals & Biotechnology
Marshalls			4,425		GlaxoSmithKline					31,476
Low & Bonar			1,614		AstraZeneca					21,457
			18,287		Novartis 1					10,637
Electronic & Electrical Equipment					Merck 1					9,381
Halma			10,967		Johnson & Johnson 1					8,270
Renishaw			10,701							81,221
XP Power			4,513		Health Care Equipment &Services
			26,181		Smith & Nephew					6,440
General Industries										6,440
Siemens 1			8,620		Total Health Care					87,661
Smiths			7,450
Swire Pacific 1			6,837		CONSUMER SERVICES
			22,907		Food & Drug Retailers
Industrial Engineering					Greggs					6,995
Spirax-Sarco Engineering			11,240		J Sainsbury					6,397
IMI			9,600							13,392
Rotork			3,203		General Retailers
			24,043		Kingfisher					10,404
Industrial Transportation					Marks & Spencer					9,603
Royal Mail			10,409		Halfords					5,240
			10,409		Inchcape					4,695
Support Services					Dixons Carphone					4,677
Connect			5,600		Pendragon					4,674
Paypoint			3,500		Next					4,083
De La Rue			3,441		N.Brown					2,436
			12,541		DFS					2,353
Total Industrials			145,287							48,165
					Media
CONSUMER GOODS					RELX 1					37,206
Automobiles & Parts					ITV					5,213
GKN			5,510		Daily Mail & General					4,897
Daimler 1			4,708		Pearson					4,784
			10,218							52,100
Company	Market value                 31 December 2017 £'000				Company		Market value                31 December 2017 £'000
Travel & Leisure					Life Insurance
TUI			17,891		Prudential				43,829
Compass			17,329		Phoenix				21,575
Whitbread			10,789		Aviva				20,260
Greene King			10,494						85,664
Go-Ahead			5,212		Nonlife Insurance
William Hill			4,509		Hiscox				16,390
Young			3,696		Direct Line Insurance				13,169
Ten Entertainment			3,454		Sabre Insurance				7,465
Cineworld			2,512		Munich Re 1				7,310
			75,886						44,334
Total Consumer Services			189,543
					Real Estate Investment Trusts
TELECOMMUNICATIONS					Land Securities				25,200
Fixed Line Telecommunications					British Land				19,016
Verizon Communications  1			24,080		Segro				14,088
BT			18,476		Unibail-Rodamco				5,740
Swisscom  1			5,255		Hammerson				4,376
Orange  1			5,140		Tritax Big Box				3,723
Manx Telecom			3,056		Civitas Social Housing				2,831
			56,007		Supermarket income				2,000
Mobile Telecommunications					PRS REIT				1,844
Vodafone			45,826		Redefine International				1,548
Deutsche Telekom 1			7,015						80,366
			52,841		Total Financials				421,257
Total Telecommuncations			108,848
					TECHNOLOGY
UTILITIES					Software & Computer Services
Electricity					Sage				11,031
SSE			24,420		Microsoft 1				7,645
			24,420						18,676
Gas, Water & Multiutilities					Total Technology				18,676
National Grid			27,128
Severn Trent			9,729		TOTAL INVESTMENTS				1,630,456
United Utilities			9,290
Duke Energy 1			8,723
Centrica			6,728		1 Overseas Listed
Innogy 1			4,673
			66,271
Total Utilities			90,691
FINANCIALS
Banks
HSBC			76,690
Lloyds Banking			41,517
Barclays			12,776
Nationwide Building Society 10.25% Var Perp CCDS			10,239
			141,222
Equity Investment Instruments
Greencoat UK Wind			3,684
John Laing Infrastructure Fund			2,464
Foresight Solar Fund			1,080
			7,228
Financial Services
Schroders			19,705
Standard Life Aberdeen			16,154
TP ICAP			10,078
Brewin Dolphin			8,027
IG			5,023
NEX Group			3,456
			62,443

For further information please contact:

Job Curtis

Fund Manager

The City of London Investment Trust plc

Telephone: [phone]

James de Sausmarez

Director and Head of Investment Trusts

Janus Henderson Investors

Telephone: [phone]

Sarah Gibbons-Cook

Investor Relations and PR Manager

Janus Henderson Investors

Telephone: [phone]

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

 

END

 

 

IR SFISMMFASELE