Interim Management Statement

RNS Number : 9074A

City of London Investment Trust PLC

16 October 2009

 



THE CITY OF LONDON INVESTMENT TRUST PLC

HENDERSON GLOBAL INVESTORS 

16 OCTOBER 2009

THE CITY OF LONDON INVESTMENT TRUST PLC

Interim Management Statement 

Review of the period from 1 July 2009 to 30 September 2009 

MATERIAL EVENTS OR TRANSACTIONS DURING THE PERIOD

Portfolio:  during the period there was net disinvestment of £6.567m and the number of holdings in the portfolio decreased from 89 to 86. The stocks that were sold included Thomson-Reuters, D S Smith and Investec. The only new stock in the portfolio was Cineworld. In the oil sector, some ENI was switched into BP and Royal Dutch Shell. Barclays was reduced, and AstraZeneca was added to.

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) widened over the period from 3.2% to 6.0%.

Dividends:  a fourth interim dividend of 3.08p per ordinary share, in respect of the year ending 30 June 2009, was paid on 28 August 2009 to holders registered on 24 July 2009. On 8 September 2009, the Company declared a first interim dividend of 3.08p per ordinary share, in respect of the year ending 30 June 2010, to be paid on 30 November 2009 to holders registered at the close of business on 23 October 2009. 

Share Capital:  on 22 July 2009 the Company issued 100,000 new ordinary shares at a price of 211.25p per share. The number of ordinary shares in issue at 30 September 2009 was 208,619,868.  

Announcements:   on 8 September 2009 the Company announced its results for the year to 30 June 2009. On the same day, the Company announced new performance fee arrangements with the Investment Manager, Henderson Global Investors Limited, which came into effect on 1 July 2009. 

There are no other material events or transactions to report.

PERFORMANCE AND FINANCIAL HIGHLIGHTS

Total Return Performance at 30 September 2009

	3 months	1 year	3 years	5 years
Net Asset Value per ordinary share	+23.3	+5.8	-9.1	+34.1
FTSE All-Share Index – 4% capped * †	+22.1	+11.2	-3.4	+43.4
FTSE All-Share Index †	+22.4	+10.8	-3.4	+38.4
UK Growth & Income investment trust sector - size weighted average NAV total return†	+23.4	+8.4	-11.9	+29.5

Sources: AIC Services Limited /      * Datastream

† since 1 July 2009 the benchmark is the size weighted average NAV total return of the AIC UK Growth & Income sector. From 1 July 2005 to 30 June 2009 it was the FTSE All-Share Index - adjusted for a maximum 4% cap for any single stock. Prior to 1 July 2005 it was the total return of the FTSE All-Share Index.

Financial Position

	at 30 September 2009	at 30 June 2009
Total net assets	£517.3m	£428.9m
Net asset value	247.96p	205.68p
Ordinary share price	233.00p	199.00p
Discount	6.0%	3.2%
Gearing	9.0%	10.1%
Yield	5.3%	6.1%

THE PORTFOLIO

 

At 30 September 2009 

Top 10 Investments	% of Portfolio		Sector Breakdown	%
BP	6.6		Oil & Gas	13.3
British American Tobacco	6.2		Basic Materials	5.1
Royal Dutch Shell	5.9		Industrials	10.0
HSBC	5.3		Consumer Goods	17.9
GlaxoSmithKline	5.0		Health Care	8.1
Vodafone	4.7		Consumer Services	11.9
Diageo	4.6		Telecommunications	6.6
Scottish & Southern Energy	3.2		Utilities	9.0
Tesco	2.9		Financials	16.1
National Grid	2.7		Technology	0.4
Top 10 =	47.1		Cash	1.6

 

At 30 June 2009

Top 10 Investments	% of Portfolio		Sector Breakdown	%
British American Tobacco	6.2		Oil & Gas	14.5
BP	6.0		Basic Materials	4.4
Royal Dutch Shell	5.2		Industrials	10.7
GlaxoSmithKline	5.1		Consumer Goods	17.6
Vodafone	5.0		Health Care	8.1
Diageo	4.9		Consumer Services	12.4
HSBC	4.4		Telecommunications	6.9
Scottish & Southern Energy	3.2		Utilities	9.5
Tesco	3.0		Financials	15.5
National Grid	2.9		Technology	0.4
Top 10 =	45.9

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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