Interim Management Statement

RNS Number : 1489G

City of London Investment Trust PLC

06 May 2011

 



THE CITY OF LONDON INVESTMENT TRUST PLC

HENDERSON GLOBAL INVESTORS

6 MAY 2011

THE CITY OF LONDON INVESTMENT TRUST PLC

Interim Management Statement

Review of the period from 1 January 2011 to 31 March 2011

MATERIAL EVENTS OR TRANSACTIONS DURING THE PERIOD

Portfolio:  Overall the portfolio remained biased towards multinational companies with below average exposure to the mining and banking sectors.  The holding in Lloyds Banking Group was sold with the proceeds reinvested in HSBC.  Purchases during the quarter were predominantly through additions to existing holdings.

Gearing: during the quarter, gearing increased from 10% (at 31 December 2010) to 12% (at 31 March 2011).  Purchases exceeded sales by £12.5 million.

Discount:  the share price (income-inclusive, with debt at par value) was trading at a discount of 0.63% to the net asset value at 31 March 2011 (at 31 December 2010, it was trading at a premium of 1.74%).  

Share Capital:   during the quarter, the Company issued 2,550,000 shares for total proceeds of £7.3 million.

Board:  The Hon. Philip Remnant joined the Board on 1 January 2011 and Sir Keith Stuart retired from the Board on 31 March 2011.

Dividends:  a second interim dividend of 3.25p per ordinary share in respect of the year ending 30 June 2011 was paid on 28 February 2011 to shareholders on the register on 21 January 2011.  On 23 March 2011 the Board declared a third interim dividend of 3.35p per ordinary share to be paid on 31 May 2011 to shareholders on the register on 6 May 2011. 

There are no other material events or transactions to report.

PERFORMANCE AND FINANCIAL HIGHLIGHTS

Total Return Performance at 31 March 2011

	3 months	1 year	3 years	5 years
Net asset value per ordinary share	1.2%	11.2%	14.3%	17.2%
UK Growth & Income investment trust sector - size weighted average net asset value †	1.9%	12.5%	16.2%	12.9%
FTSE All-Share Index - 4% capped *  †	0.8%	9.8%	18.1%	23.1%
FTSE All-Share Index †	1.0%	8.7%	17.0%	20.0%

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 2011	at 31 December 2010
Net assets	£704m	£689m
Net asset value (income-inclusive)	287.1p	287.2p
Ordinary share price	288.9p	292.0p
Premium to NAV	0.6%	1.7%
Gearing	12%	10%
Yield	4.5%	4.4%
Total Expense Ratio	0.48%	0.48%

THE PORTFOLIO

Top 10 Investments	% of portfolio			% of portfolio
at 31 March 2011			at 31 December 2010
Royal Dutch Shell	6.8		Royal Dutch Shell	6.5
British American Tobacco	6.1		British American Tobacco	6.1
Vodafone	4.7		GlaxoSmithKline	4.7
GlaxoSmithKline	4.5		Diageo	4.6
Diageo	4.5		Vodafone	4.5
HSBC	4.0		HSBC	3.9
National Grid	3.0		BHP Billiton	3.1
BHP Billiton	2.9		AstraZeneca	3.0
AstraZeneca	2.9		National Grid	2.8
Unilever	2.7		Scottish & Southern Energy	2.4
Top 10 =	42.1		Top 10 =	41.6

Sector Breakdown	% at 31 March 2011	% at 31 December 2010
Consumer Goods	17.3	17.6
Financials	16.7	16.4
Consumer Services	11.7	11.9
Industrials	10.6	10.7
Oil & Gas	10.8	10.4
Utilities	9.9	9.6
Health Care	7.8	8.2
Telecommunications	7.6	7.4
Basic Materials	7.0	7.2
Technology	0.6	0.6

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 Director and Head of Investment Trusts Henderson Global Investors Telephone: [phone]
Sarah Gibbons-Cook Investor Relations and PR Manager Henderson Global Investors Telephone: [phone]

- ENDS -

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

 

 

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