Interim Management Statement

RNS Number : 1367G

City of London Investment Trust PLC

17 October 2008

 



THE CITY OF LONDON INVESTMENT TRUST PLC

HENDERSON GLOBAL INVESTORS 

17 OCTOBER 2008

THE CITY OF LONDON INVESTMENT TRUST PLC

Interim Management Statement 

Review of the period from 1 July 2008 to 30 September 2008 

MATERIAL EVENTS OR TRANSACTIONS DURING THE PERIOD

Portfolio:  during the period there was net disinvestment of £9.541m and the number of holdings in the portfolio decreased from 102 to 98. The stocks that were sold were DSG, Signet, Persimmon and Topps Tiles. The only new stock in the portfolio was Rotork.  Exposure to the banking sector was reduced by a net £3.4m, with reductions in the holdings of Barclays, Lloyds TSB, HBOS and Royal Bank of Scotland.

Gearing:  during the quarter gearing decreased from 10.1% (at 30 June) to 9.0% (at 30 September).  

Discount:  the share price discount to net asset value (with debt at par value) narrowed over the period from 13.2% to 7.8%.

Dividends:  a fourth interim dividend of 2.96p per ordinary share, in respect of the year ending 30 June 2008, was paid on 29 August 2008 to holders registered on 25 July 2008. On 29 August 2008, the Company declared a first interim dividend of 3.08p per ordinary share, in respect of the year ending 30 June 2009, to be paid on 28 November 2008 to holders registered at the close of business on 24 October 2008. 

Share Capital:  there have been no changes to the Company's share capital during the period.

There are no other material events or transactions to report.

PERFORMANCE AND FINANCIAL HIGHLIGHTS

Total Return Performance at 30 September 2008 

	3 months	1 year	3 years	5 years
Net Asset Value per ordinary share	-7.8%	-23.1%	+1.4%	+50.8%
FTSE All-Share Index - 4% capped *  †	-12.3%	-23.2%	+2.6%	+49.4%
FTSE All-Share Index †	-12.2%	-22.3%	0.0%	+44.5%
Average UK Growth & Income Investment Trust Net Asset Value	-10.0%	-25.8%	-4.6%	+41.5%

Sources: AIC Services Limited /      * Datastream

† since 1 July 2005 the benchmark is the total return of the FTSE All-Share Index - adjusted for a maximum 4% cap for any single stock. Prior to this, it was the total return of the FTSE All-Share Index.

  Financial Position 

	at 30 September 2008	at 30 June 2008
Total assets	£568m	£627m
Net asset value	249.45p	274.39p
Ordinary share price	230.00p	238.25p
Discount	7.8%	13.2%
Gearing	9.0%	10.1%
Yield	5.4%	5.0%
Total Expense Ratio	0.37%	0.37%

THE PORTFOLIO

At 30 September 2008  

Top 10 Investments	% of total assets		Sector Breakdown	%
HSBC	5.8		Oil & Gas	11.9
British American Tobacco	5.7		Basic Materials	6.0
BP	4.9		Industrials	9.8
GlaxoSmithKline	4.8		Consumer Goods	16.7
Diageo	4.4		Health Care	6.3
Vodafone	4.3		Consumer Services	10.5
Royal Dutch Shell	4.2		Telecommunications	7.4
Barclays	3.3		Utilities	9.1
National Grid	3.2		Financials	21.7
Scottish & Southern Energy	3.2		Technology	0.6
Top 10 =	43.8			100.0

At 30 June 2008 

Top 10 Investments	% of total assets		Sector Breakdown	%
BP	5.5		Oil & Gas	13.7
British American Tobacco	4.9		Basic Materials	9.2
Royal Dutch Shell	4.8		Industrials	9.8
Vodafone	4.8		Consumer Goods	15.8
HSBC	4.5		Health Care	5.3
GlaxoSmithKline	4.0		Consumer Services	10.4
Diageo	3.9		Telecommunications	7.9
Scottish & Southern	2.8		Utilities	8.3
National Grid Transco	2.7		Financials	19.0
BT	2.7		Technology	0.6
Top 10 =	40.6			100.0

The objective of The City of London Investment Trust plc is to provide long-term growth in income and capital, principally by investment in UK equities. The Manager is Henderson Global Investors Limited. Further information on the Company, including an up to date NAV and share price information, can be found at www.cityinvestmenttrust.com

For further information, please contact:

Job Curtis Portfolio Manager The City of London Investment Trust plc Telephone: [phone]	James de Sausmarez Head of Investment Trusts Henderson Global Investors Telephone: [phone]
Sarah Gibbons-Cook Investor Relations and PR Manager Henderson Global Investors Telephone: [phone]

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