Interim Management Statement

RNS Number : 7863U

City Natural Res High Yield Tst PLC

19 May 2008

 

To: RNS

Date: 19 May 2008

From: City Natural Resources High Yield Trust plc

Interim Management Statement 

For the Three Month Period from 1 January 2008 to 31 March 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 31 March 2008
Net asset value per share	(4.9)
Ordinary share price	(0.6)
Composite Index	(0.1)
HSBC Global Mining Index (sterling adjusted)	0.4
MSCI Euro Sterling Corporate Index (non-financials)	(3.2)

Capital Values	As at  31 March  2008	As at  30 June  2007	% Change
Net assets (£000s)	£131,429	£125,928	4.3
Net asset value per share -basic	209.0p	200.3p	4.3
Net asset value per share - fully diluted	201.3p	193.4p	4.1
Share price	189.0p	176.0p	7.4
Discount	6.3%	9.0%
Gearing (100 = nil geared position) *	121%	121%

* Gearing = Total assets ÷ Equity Shareholders' Funds

Review for the Period

Quarterly Review:

A thoroughly mixed quarter began with extraordinarily volatility in January as the world reacted to the ongoing bad news flowing from Banks exposed to the US sub prime crisis and general talk of a US recession.  Gold surged through the US $900 per oz level, and continued through US $1,000 in February before falling back. Oil also stood out, establishing itself firmly beyond US $100 per barrel.

February saw strong commodity prices across the board, and the Company's net asset value increased by more than 10 per cent, before falling back in the face of profit taking and some weakness in March to end the quarter modestly lower.

Dividend:

A second interim dividend for the year to 30 June 2008 of 0.55p per share was paid on 29 February 2008 to shareholders on the register on 1 February 2008.

Top Ten Holdings as at 31 March 2008

Company	Country	Percentage of total assets
New Britain Palm Oil	Papua New Guinea	3.0
Nido Petroleum	Australia	2.8
Goldcorp	Canada	2.2
Extract Resources	Australia	2.1
Gold Eagle Mines	Canada	2.0
European Gas	Australia	2.0
Anglo Eastern Plantations	UK	1.9
Kalahari Minerals	UK	1.7
Randgold Resources	UK	1.5
Allied Gold	Australia	1.5
Total		20.7

Geographical Analysis as at 31 March 2008

Country	Percentage of total assets
Australia	38.3
United Kingdom	28.2
Canada	22.4
United States	5.6
Europe	2.0
Papua New Guinea	1.8
South Africa	1.5
New Zealand	0.2
Total	100.0

Sector Distribution as at 31 March 2008

Country	Percentage of total assets
Resources - Equities	48.1
Gold Equities	35.8
Resources - Convertibles	12.2
Bonds	3.9
Total	100.0

Significant Events or Transactions

Since 31 March 2008 the fully diluted Net Asset Value of the Company has risen to 230.3p and the share price to 203.7p (both figures as at 16 May 2008). The Board is not aware of any other significant events or transactions which have occurred since 31 March 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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