Interim Management Statement

RNS Number : 6233R

City of London Investment Trust PLC

01 May 2009

 



THE CITY OF LONDON INVESTMENT TRUST PLC

HENDERSON GLOBAL INVESTORS 

1 MAY 2009

THE CITY OF LONDON INVESTMENT TRUST PLC

Interim Management Statement 

Review of the period from 1 January 2009 to 31 March 2009

MATERIAL EVENTS OR TRANSACTIONS DURING THE PERIOD

Dividends: A third interim dividend of 3.08p per ordinary share in respect of the year ending 30 June 2009 will be paid on 29 May 2009 to holders registered on 24 April 2009. The Board also intends to pay a fourth interim dividend of 3.08p per share (this does not represent a profits forecast) for the year to 30 June 2009. The fourth interim dividend will make a total dividend for the year to 30 June 2009 of 12.32p per share, an increase of 6.2% over the previous year. 

Portfolio:  The Manager continued to focus on stocks with sustainable dividend growth going forward. The holdings in Anglo American, Bovis Homes, GKN and TT Electronics, which omitted dividends, were sold. In the real estate sector, the rights in Land Securities and Segro were taken up, financed by selling the holdings in Hammerson and Liberty International.

Gearing: During the quarter, gearing increased from 10.5% (at 31 December 2008) to 12% (at 31 March 2009) as a result of market movements. A net £8.9 million was raised from the portfolio during the period.

Discount:  the share price discount to net asset value (income-inclusive, with debt at par value) narrowed over the period from 6.1% to 2.5%.   

Share Capital:  during the quarter the Company sold out of treasury 358,090 ordinary shares and issued a further 570,000 ordinary shares. All the shares were issued at a premium to net asset value.  There are no shares remaining in treasury.  The total value of the shares issued and sold from treasury was £1.728 million.

Board:  Mr David Brief joined the Board as a non-executive director with effect from 1 January 2009.

Advisers:  The Board appointed Cenkos Securities plc as brokers and PricewaterhouseCoopers LLP as auditors to the Company.

There are no other material events or transactions to report.

PERFORMANCE AND FINANCIAL HIGHLIGHTS

Total Return Performance at 31 March 2009

	3 months	1 year	3 years	5 years
Net Asset Value per ordinary share	-13.4%	-31.9%	-30.1%	+7.5%
FTSE All-Share Index - 4% capped *  †	-7.9%	-30.5%	-27.6%	+9.3%
FTSE All-Share Index †	-9.1%	-29.3%	-27.5%	+7.2%
Average UK Growth & Income Investment Trust Net Asset Value	-13.6%	-31.8%	-33.4%	+0.6%

Sources: AIC Information Services Limited / * Datastream

† since 1 July 2005 the benchmark is 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 2009	at 31 December 2008
Net assets	£397m	£464m
Net asset value	190.7p	223.7p
Ordinary share price	186.0p	210.0p
Discount	2.5%	6.1%
Gearing	12%	10.5%
Yield	6.5%	5.6%
Total Expense Ratio	0.37%	0.37%

THE PORTFOLIO

Top 10 Investments	% of total assets			% of total assets
at 31 March 2009			at 31 December 2008
British American Tobacco	6.5		British American Tobacco	6.2
BP	6.4		BP	6.1
Vodafone	5.6		GlaxoSmithKline	5.6
Royal Dutch Shell	5.6		Vodafone	5.4
GlaxoSmithKline	5.6		Royal Dutch Shell	5.4
Diageo	4.8		Diageo	5.0
Scottish & Southern Energy	3.4		HSBC	4.7
National Grid	3.1		National Grid	3.3
Tesco	3.1		Scottish & Southern Energy	3.0
HSBC	2.8		Tesco	2.8
Top 10 =	46.9			47.5

Sector Breakdown	% at 31 March 2009	% at 31 December 2008
Consumer Goods	17.4	18.0
Oil & Gas	15.1	14.6
Financials	12.4	15.5
Consumer Services	12.3	11.0
Industrials	10.2	9.4
Utilities	9.2	9.0
Health Care	8.3	8.6
Telecommunications	7.7	8.3
Basic Materials	5.3	5.3
Technology	0.4	0.3
Cash	1.7	0.0

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

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