Interim Management Statement

RNS Number : 6184V

F&C Capital & Income Inv Tst PLC

14 July 2009

 



F&C Capital and Income Investment Trust PLC 

Interim Management Statement 

For the three month period to 30 June 2009

Objective

To secure long-term capital and income growth from a portfolio consisting mainly of FTSE All-Share companies. 

Performance summary

	At 30 June 2009	At 31 March 2009	% change
Net assets *	£137.34m	£122.82m	11.8
Net asset value ("NAV") per share *	165.13p	151.65p	8.9
FTSE All-Share Index - 3 month return	-	-	9.5
Share price	169.00p	154.00p	9.7
Premium to NAV per share	2.3%	1.5%	-
NAV per share  total return - 3 month return	-	-	10.2
FTSE All-Share Index - 3 month total return	-	-	10.9
Effective gearing	6.3%	4.1%	-

* Includes undistributed income

Key portfolio changes

The last quarter saw total net investment of £5.8m as new purchases of £10.1m outweighed sales of £4.3m.

The most significant changes to the portfolio were additions to existing holdings in Unilever, Cable & Wireless and United Utilities.  As well as having attractive yields, their dividends are expected to grow further.  It was an active quarter for refinancing with HSBC, Inchcape, SIG and Wolseley all raising new money and we supported each one. 

£1.3m was added in total to two of the convertible bonds in the portfolio. These have performed well to date, enhancing both capital and income for shareholders.

Three month review

Over the three months to 30 June, the Company's NAV per share total return was 10.2% in comparison to a total return of 10.9% from its benchmark, the FTSE All-Share Index.   The share price rose 9.7% as the premium to NAV per share widened from 1.5% to 2.3%. 

Since early March, the UK equity market staged a remarkable rally on the hope that green shoots were starting to be seen. Initially the recovery was most evident amongst those companies with the greatest sensitivity to economic conditions and those with weak balance sheets, but the rally ran out of steam somewhat in June. The setback was triggered by poor economic and company news that caused investors to doubt the robustness of the green shoots. In the US, the iconic General Motors failed, unemployment climbed to 9.4%, oil traded above $70 per barrel and the yield on 10 year government bonds almost doubled in less than six months. Elsewhere concerns grew about the Baltic states. In the UK the CPI was higher than expected and remained above the Bank of England's 2.0% target.

The taps of monetary and fiscal stimuli remained on full as the Bank of England kept interest rates at 0.5% and continued with its quantitative easing policy.

The Company's level of borrowing within its £20m committed facility increased during the quarter from £10m to £14m.

The Company did not purchase any of its own shares in the three months to 30 June 2009.  2,180,000 ordinary shares were issued from the Company's general blocklisting authority during this period; these shares were issued at a premium to NAV (including accumulated income) in response to strong demand, particularly from the F&C savings schemes.  Since 30 June 2009, the Company has issued a further 100,000 shares.

The Board is not aware of any significant events or transactions which have occurred between 30 June 2009 and the date of publication of this statement which would have a material impact on the financial position of the Company.

Ten largest holdings

At 30 June 2009	At 31 March 2009	Company	Percentage of total investments at   30 June 2009
1	1	BP	9.8
2	3	Royal Dutch Shell	6.3
3	9	HSBC	6.2
4	2	Vodafone	6.2
5	4	GlaxoSmithKline	5.6
6	5	British American Tobacco	4.4
7	6	Scottish & Southern Energy	4.3
8	7	AstraZeneca	3.9
9	10	Tesco	3.3
10	8	Rio Tinto	2.9
		Total	52.9

  Investment portfolio by sector

	Percentage of total investments at 30 June 2009	Percentage of total  investments at 31 March 2009
Oil & gas	18.8	21.4
Financials	18.6	15.1
Utilities	11.5	11.5
Telecommunications	10.6	11.1
Health care	10.1	11.2
Consumer goods	9.4	9.1
Consumer services	5.8	6.0
Basic materials	5.1	4.6
Industrials	3.7	3.6
Europe	6.4	6.4

Daily and key information

Further information regarding the Company, including monthly factsheets and daily NAVs published since the end of the period, can be found on the internet at www.fandccit.com 

Disclaimer

This interim management statement has been prepared solely to provide information to meet the requirements of the UK Listing Authority's Disclosure and Transparency Rules.

By order of the Board

F&C Management Limited, Secretary

14 July 2009

 

END

 

 

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