Interim Management Statement

RNS Number : 5964Y

F&C Capital & Income Inv Tst PLC

08 July 2008

 



F&C Capital and Income Investment Trust PLC 

Interim Management Statement 

For the three month period to 30 June 2008

Objective

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

Performance Summary

	At 30 June 2008	At 31 March 2008	% change
Net assets *	£174.46m	£179.14m	- 2.6
Net asset value ("NAV") per share *	223.02p	229.00p	- 2.6
FTSE All-Share Index - 3 month     return	-	-	-2.4
Share price	219.50p	217.00p	+1.2
Discount to NAV per share	1.6%	5.2%	-
NAV per share    total return - 3 month return	-	-	-1.8
(Liquidity)/effective gearing	-0.3%	0.9%	-

* Includes undistributed income

Key Portfolio Changes

The most significant changes to the portfolio came from share sales in the Financial sector with the take-over of Resolution, the complete sale of ICAP and International Personal Finance and reduction in the size of the investment in HSBC.  The Company exercised its rights in the capital raisings of both Royal Bank of Scotland and Cattles.

Three Month Review

Over the three months to 30 June, the Company's NAV per share fell 2.6%, slightly worse than the decrease in the FTSE All-Share Index of 2.4%, while the share price rose 1.2% as the discount to NAV per share decreased from 5.2% to 1.6%.

Funds with an income requirement continued to struggle over the last quarter as the higher yielding stocks and sectors, many of which are Financials, fell sharply in value. Meanwhile, commodity related stocks, typically with low yields, made strong progress.  The most positive relative returns came from not owning shares in either HBOS or Lloyds, and from overweight positions in Rio Tinto and BP. The underweight position in the Mining sector, and in particular BHP, was a negative, as were the holdings in Barclays, Bellway and Cattles.

The Company's level of borrowing within its £20m committed facility decreased during the quarter from £4m to £2m.

In the three month period to 30 June 2008, the Company did not purchase any of its own shares.

The Board is not aware of any significant events or transactions which have occurred between 30 June 2008 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 2008	At 31 March 2008	Company	Percentage of total investments at   30 June 2008
1	1	BP	8.9
2	4	Royal Dutch Shell	7.3
3	3	Rio Tinto	7.2
4	2	HSBC	5.7
5	5	Vodafone	5.5
6	6	GlaxoSmithKline	5.1
7	8	Scottish & Southern Energy	4.2
8	7	British American Tobacco	4.0
9	10	Tesco	3.0
10	11	National Grid	2.7
		Total	53.6

Investment Portfolio by Sector

	Percentage of total investments at 30 June 2008	Percentage of total  investments at 31 March 2008
Financials	19.8	23.3
Oil & Gas	18.3	15.2
Consumer Goods	12.0	13.0
Basic Materials	11.2	9.2
Utilities	9.6	9.3
Telecommunications	8.4	7.5
Health Care	7.9	7.0
Consumer Services	3.2	4.0
Industrials	2.9	4.1
Europe	6.7	7.4

Daily and Key Information

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

By order of the Board

F&C Management Limited, Secretary

8 July 2008

 

END

 

 

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