Interim Management Statement

RNS Number : 8781U

City of London Investment Trust PLC

22 October 2010

 



THE CITY OF LONDON INVESTMENT TRUST PLC

HENDERSON GLOBAL INVESTORS

22 OCTOBER 2010

THE CITY OF LONDON INVESTMENT TRUST PLC

Interim Management Statement

Review of the period from 1 July 2010 to 30 September 2010

MATERIAL EVENTS OR TRANSACTIONS DURING THE PERIOD

Portfolio:  during the period there was net investment of £13.598m, including the proceeds of £9.97m for new shares that were issued.  The number of holdings in the portfolio decreased from 90 to 89.  New holdings were purchased in Sainsbury and International Power.  The holding in Tomkins was sold after the takeover bid was agreed by its board. 

Gearing:  during the quarter gearing decreased slightly from 9.2% (at 30 June) to 9.0% (at 30 September). 

Discount:  the share price discount to net asset value (with debt at par value) narrowed over the quarter from 1.7% to 0.5%.

Dividends:  a fourth interim dividend of 3.25p per ordinary share, in respect of the year ending 30 June 2010, was paid on 31 August 2010 to holders registered on 30 July 2010.  On 2 September 2010 the Company declared a first interim dividend of 3.25p per ordinary share, in respect of the year ending 30 June 2011, to be paid on 30 November 2010 to holders registered at the close of business on 22 October 2010.

Share Capital:  during the quarter the Company issued 3,825,000 new ordinary shares for net proceeds of £9.97m.  The number of ordinary shares in issue at 30 September 2010 was 212,444,868. 

Announcements:   on 14 September 2010 the Company announced its results for the year to 30 June 2010.  

There were no other material events or transactions during the quarter to report.

PERFORMANCE AND FINANCIAL HIGHLIGHTS

Total Return Performance at 30 September 2010

	3 months	1 year	3 years	5 years
Net Asset Value per ordinary share	12.7%	15.3%	-6.0%	23.9%
AIC UK Growth & Income investment trust sector - size weighted average NAV total return †	12.4%	14.6%	-8.1%	18.2%
FTSE All-Share Index - 4% capped *	13.8%	14.9%	-1.8%	31.2%
FTSE All-Share Index	13.6%	12.5%	-3.1%	24.7%

Sources:  Morningstar on behalf of AIC Information Services Limited / * Datastream

† since 1 July 2009 the benchmark is the size weighted average NAV total return of the AIC UK Growth & Income sector.  From 1 July 2005 to 30 June 2009 it was the FTSE All-Share Index - adjusted for a maximum 4% cap for any single stock.  Prior to 1 July 2005 it was the total return of the FTSE All-Share Index.

Financial Position

	at 30 September 2010	at 30 June 2010
Total net assets	£578.4m	£511.0m
Net asset value	272.30p	244.96p
Ordinary share price	271.00p	240.70p
Discount	0.5%	1.7%
Gearing	9.0%	9.2%
Yield	4.8%	5.3%

THE PORTFOLIO

At 30 September 2010 

Top 10 Investments	% of Portfolio		Sector Breakdown	%
British American Tobacco	6.4		Oil & Gas	9.6
Royal Dutch Shell	6.2		Basic Materials	6.7
GlaxoSmithKline	5.2		Industrials	10.8
Vodafone	4.7		Consumer Goods	18.1
Diageo	4.6		Health Care	9.3
HSBC	4.3		Consumer Services	12.1
AstraZeneca	3.6		Telecommunications	7.1
National Grid	3.0		Utilities	10.0
BHP Billiton	2.7		Financials	15.7
Tesco	2.7		Technology	0.7
Top 10 =	43.4		Options	-0.1

At 30 June 2010

Top 10 Investments	% of Portfolio		Sector Breakdown	%
British American Tobacco	6.5		Oil & Gas	8.6
Royal Dutch Shell	5.7		Basic Materials	6.1
Vodafone	5.2		Industrials	11.9
GlaxoSmithKline	5.1		Consumer Goods	18.2
Diageo	5.0		Health Care	9.5
HSBC	4.4		Consumer Services	12.2
AstraZeneca	3.8		Telecommunications	7.4
National Grid	3.1		Utilities	10.6
Scottish & Southern Energy	3.0		Financials	15.1
Tesco	2.7		Technology	0.4
Top 10 =	44.5

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 an 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]

- ENDS -

 

END

 

 

IMSXLLFLBBFBFBX