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

 

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Return per ordinary share (note 2)

 

7.40p

 

18.84p

 

26.24p

 

6.76p

 

24.38p

 

31.14p

17.83p

37.64p

55.47p

 

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=====

=====

=====

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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

 

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======

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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)

 

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-----------

------------

-----------

 -------------

At 30 June 2017

84,853

461,753

2,707

832,011

48,598

1,429,922

 

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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

 

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-------------

-------------

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

 

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-------------

-------------

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

 

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======

 

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: 020 7818 4367

 

James de Sausmarez

Director and Head of Investment Trusts

Janus Henderson Investors

Telephone: 020 7818 3349

 

Sarah Gibbons-Cook

Investor Relations and PR Manager

Janus Henderson Investors

Telephone: 020 7818 3198

 

 

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.


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