Interim Management Statement

RNS Number : 7429Q

City of London Investment Trust PLC

24 October 2011

 



THE CITY OF LONDON INVESTMENT TRUST PLC

HENDERSON GLOBAL INVESTORS

24 OCTOBER 2011

THE CITY OF LONDON INVESTMENT TRUST PLC

Interim Management Statement

Review of the period from 1 July 2011 to 30 September 2011

MATERIAL EVENTS OR TRANSACTIONS DURING THE PERIOD

Portfolio:  Overall the portfolio remained biased towards multinational companies with below average exposure to the mining and banking sectors.  Purchases during the quarter were predominantly through additions to existing holdings.

Gearing: during the quarter, gearing increased from 8% (at 30 June 2011) to 11% (at 30 September 2011).  Purchases exceeded sales by £8.7 million.

(Discount)/Premium:  the share price was trading at a discount of 0.3% to the net asset value (income-inclusive, with debt at par value) at 30 September 2011 (at 30 June 2011: premium of 0.5%). 

With debt calculated at fair value, the share price was trading at a premium of 1.9% to the net asset value at 30 September 2011 (at 30 June 2011: premium of 2.4%).

Share Capital:   during the quarter, the Company issued 3,375,000 shares for net proceeds of £9.0 million.

Dividends:  a fourth interim dividend of 3.35p per ordinary share in respect of the year ending 30 June 2011 was paid on 31 August 2011 to shareholders on the register on 29 July 2011.  On 1 September 2011 the Board declared a first interim dividend of 3.35p per ordinary share, in respect of the year ending 30 June 2012, to be paid on 30 November 2011 to holders registered at the close of business on 28 October 2011.  

There are no other material events or transactions to report.

PERFORMANCE AND FINANCIAL HIGHLIGHTS

Total Return Performance at 30 September 2011

	3 months	1 year	3 years	5 years
Net asset value per ordinary share 1	-11.1	1.8	24.7	6.4
Share price 1	-11.6	1.7	33.7	16.3
UK Growth & Income investment trust sector - size weighted average net asset value 1, 2	-10.8	2.8	26.2	3.9
FTSE All-Share Index - 4% capped 2, 3	-13.8	-4.6	21.9	5.9
FTSE All-Share Index 2, 3	-13.5	-4.4	19.2	4.0

Sources: 

1  Morningstar for the AIC using cum income fair value NAV for 3 months, 1 and 3 years, and capital NAV plus income reinvested for 5 years

2  Since 1 July 2009 the benchmark is the size weighted average net asset value total return of the UK Growth & Income investment trust sector.  Between 1 July 2005 and 30 June 2009 the benchmark was 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.

3Datastream

Financial Position

	at 30 September 2011	at 30 June 2011
Net assets	£603m	£674m
Net asset value per share (par value)	264.2p	301.3p
Net asset value per share (fair value)	258.4p	294.1p
Ordinary share price	263.3p	301.3p
(Discount)/premium to NAV (par value)	(0.3)%	0.5%
Premium to NAV (fair value)	1.9%	2.4%
Gearing	11%	8%
Yield	5.1%	4.4%
Total expense ratio	0.44%	0.44%

THE PORTFOLIO

Top 10 Investments	% of portfolio			% of portfolio
at 30 September 2011			at 30 June 2011
British American Tobacco	6.8		Royal Dutch Shell	6.4
Royal Dutch Shell	6.3		British American Tobacco	6.3
GlaxoSmithKline	5.3		GlaxoSmithKline	4.9
Vodafone	5.2		Diageo	4.6
Diageo	4.9		Vodafone	4.5
HSBC	3.4		HSBC	3.8
Unilever	3.3		AstraZeneca	3.0
AstraZeneca	3.3		Unilever	3.0
National Grid	3.1		BHP Billiton	2.9
Scottish & Southern Energy	2.7		National Grid	2.7
Top 10 =	44.3		Top 10 =	42.1

Sector Breakdown	% at 30 September 2011	% at 30 June 2011
Consumer Goods	19.1	17.9
Financials	15.8	16.5
Consumer Services	12.0	11.6
Utilities	10.4	9.5
Oil & Gas	9.9	10.2
Industrials	9.8	11.0
Health Care	9.2	8.5
Telecommunications	7.2	7.1
Basic Materials	5.9	7.0
Technology	0.7	0.7

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

- ENDS -

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

 

END

 

 

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