Interim Management Statement

RNS Number : 4017I

City Natural Res High Yield Tst PLC

18 November 2008

 



To: RNS

Date: 18 November 2008

From: City Natural Resources High Yield Trust plc

Interim Management Statement 

For the Three Month Period from 1 July 2008 to 30 September 2008

Investment Objective

City Natural Resources High Yield Trust plc aims to provide Shareholders with capital growth and income from a portfolio of mining and resource equities, resources and industrial fixed interest securities. 

Performance Summary

Total Return	For the three month period ended 30 September 2008
Net asset value per share	(33.1)
Ordinary share price	(34.5)
Composite Index	(24.0)
HSBC Global Mining Index (sterling adjusted)	(38.8)
Credit Suisse High Yield Bond Index (sterling adjusted)	5.6

Capital Values	As at  30 September  2008	As at 30 June  2008	% Change
Net assets (£000s)	£95,501	£145,131	(34.2)
Net asset value per share -basic	151.9p	230.8p	(34.2)
Net asset value per share – fully diluted	147.9p	222.1p	(33.4)
Share price	123.0p	189.0p	(34.9)
Discount	16.8%	14.9%
Gearing (100 = nil geared position) *	128.3%	120.6%

* Gearing = Total assets ÷ Equity Shareholders' Funds

Review for the Period

Quarterly Review:

A quarter of unmitigated gloom, with the biggest banking crisis since World War One and the threat of worldwide recession driving markets down and market volatility up, the latter to levels not seen in more than twenty years.

Brief rallies notwithstanding, commodity prices retreated throughout the period. Two principal factors drove stock markets, the perceived availability of credit and forced realisations by many highly geared market participants.

Commodities in all their manifestations represented the area where these highly geared market participants were, perhaps, most actively exposed and there were no hiding places.  The Company suffered accordingly.

Conditions continue to be difficult and we remain cautious in the near term.

The revenue account continues to be strong, however, and we are firm in our goal to deliver dividends to shareholders.

Dividend:

A final dividend for the year to 30 June 2008 of 1p per share was paid on 29 August 2008 to shareholders on the register on 1 August 2008.  This took the dividend for the year to 30 June 2008 to 2.65p, an increase of 12.8% on the prior year. 

Top Ten Holdings as at 30 September 2008

Company	Country	Percentage of total assets
Goldcorp	Canada / US	4.1
New Britain Palm Oil	Papua New Guinea / UK	3.8
Nido Petroleum	Australia	3.3
Sunshine Gas	Australia	3.0
REA Holdings	UK	2.8
Extract Resources	Australia	2.8
Randgold Resources	UK	2.0
Horizon Oil	Australia	1.9
Kalahari Minerals	UK	1.9
Kinross Gold	Canada	1.8
Total		27.4

Geographical Analysis as at 30 September 2008

Country	Percentage of total assets
Australia	37.9
United Kingdom	24.5
Canada	19.8
United States	9.3
Europe	3.8
Papua New Guinea	2.9
South Africa	1.3
New Zealand	0.5
Total	100.0

Sector Distribution as at 30 September 2008

Country	Percentage of total assets
Resources – Equities	46.3
Gold Equities	21.9
Resources – Convertibles	19.5
Bonds	10.7
Preference Shares	1.6
	100.0
Total	100.0

Analysis of Investments by Quotation as at 30 September 2008

	Percentage of total investments
Listed/Quoted on a recognised investment exchange	67
Unquoted (convertible into a security quoted on a recognised exchange)	20
Unquoted	13
Total	100

Significant Events or Transactions

Since 30 September 2008 the fully diluted Net Asset Value of the Company has fallen to 113.05p and the share price to 88.50p (both figures as at 14 November 2008).

The Company had drawn down borrowings of £27m at 30 September 2008. This has been reduced to £15m at 14 November 2008. The Company's effective gearing therefore stands at 15%.

The Board is not aware of any other significant events or transactions which have occurred since 30 September 2008 and the date of publication of this statement which would have a material impact on the financial position of the Company.

Daily and Key Information

Further information regarding the Company including the recent share price and the recent monthly fact sheet, can be found at the Manager's website www.ncim.co.uk

For further information please contact:

Richard Lockwood

New City Investment Managers Ltd

0207 201 5365

Martin A Cassels

F&C Asset Management plc

0207 628 8000

 

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