Interim Management Statement

RNS Number : 6472L

City of London Investment Trust PLC

10 May 2010

 



THE CITY OF LONDON INVESTMENT TRUST PLC

HENDERSON GLOBAL INVESTORS

10 MAY 2010

THE CITY OF LONDON INVESTMENT TRUST PLC

Interim Management Statement

Review of the period from 1 January 2010 to 31 March 2010

MATERIAL EVENTS OR TRANSACTIONS DURING THE PERIOD

Dividends:A third interim dividend of 3.25p per ordinary share in respect of the year ending 30 June 2010 will be paid on 28 May 2010 to holders registered on 30 April 2010.  The Board also intends to pay a fourth interim dividend of 3.25p per share (this does not represent a profits forecast) for the year to 30 June 2010.  The fourth interim dividend will make a total dividend for the year to 30 June 2010 of 12.66p per share, an increase of 2.8% over the previous year.

Portfolio:  The holding in Cadbury was sold after its board recommended the takeover bid from Kraft of the US. Overall, the portfolio remained biased toward multinational companies.

Gearing: During the quarter, gearing decreased slightly from 9% (at 31 December 2009) to 8% (at 31 March 2010) due to market movements.  A net £2.3 million was invested during the period.

Discount:  the share price discount to net asset value (income-inclusive, with debt at par value) narrowed over the period from 5.4% to 4.0%.  

Board:  Miss Anita Frew stood down from the Board with effect from 31 March 2010.

Banking and Custody Arrangements: During the quarter, the Board appointed HSBC Bank as the new custodian Furthermore, HSBC has granted the Company a borrowing facility of £50m on attractive terms. 

There are no other material events or transactions to report.

PERFORMANCE AND FINANCIAL HIGHLIGHTS

Total Return Performance at 31 March 2010

	3 months	1 year	3 years	5 years
Net asset value per ordinary share	5.9%	51.6%	-8.1%	36.5%
UK Growth & Income investment trust sector - size weighted average net asset value †	5.7%	53.3%	-10.5%	29.3%
FTSE All-Share Index - 4% capped *  †	7.6%	54.8%	-1.2%	46.3%
FTSE All-Share Index †	6.4%	52.3%	-0.7%	41.3%

Sources:  AIC Information Services Limited / * Datastream

†  since 1 July 2009 the benchmark is the size weighted average net asset value total return of the UK Growth & Income investment trust sector.  Between 1 July 2005 and 30 June 2009 the benchmark was 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 31 March 2010	at 31 December 2009
Net assets	£567m	£464m
Net asset value (income-inclusive)	272.0p	260.0p
Ordinary share price	261.0p	246.0p
Discount	4.0%	5.4%
Gearing	8%	9%
Yield	4.72%	5.01%
Total Expense Ratio	0.37%	0.37%

THE PORTFOLIO

Top 10 Investments	% of portfolio			% of portfolio
at 31 March 2010			at 31 December 2009
BP	6.7		BP	6.7
British American Tobacco	6.5		Royal Dutch Shell	6.0
Royal Dutch Shell	5.8		British American Tobacco	6.0
Vodafone	5.1		GlaxoSmithKline	5.4
GlaxoSmithKline	5.0		Vodafone	5.1
Diageo	4.8		HSBC	5.0
HSBC	4.4		Diageo	4.9
BHP Billiton	3.0		Scottish & Southern Energy	3.0
Tesco	2.8		Tesco	2.9
Scottish & Southern Energy	2.7		National Grid	2.9
Top 10 =	46.8			47.9

Sector Breakdown	% at 31 March 2010	% at 31 December 2009
Consumer Goods	17.6	18.5
Financials	14.3	14.8
Oil & Gas	13.5	13.6
Consumer Services	12.2	11.9
Industrials	10.5	9.7
Utilities	9.3	9.4
Health Care	8.2	8.5
Telecommunications	7.4	7.1
Basic Materials	6.4	5.9
Technology	0.7	0.7
Options	-0.1	-.1

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 a monthly factsheet and 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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