Interim Management Statement Replacement

RNS Number : 5905D

City Natural Res High Yield Tst PLC

17 May 2012

 



To: RNS

Date: 17 May 2012

From: City Natural Resources High Yield Trust plc

Interim Management Statement

For the Three Month Period from 1 January 2012 to 31 March 2012

Investment Objective

City Natural Resources High Yield Trust plc aims to provide shareholders with capital growth and income from a portfolio of mining and resource equities and of mining, resource and industrial fixed interest securities.

Performance Summary

Total Return	For the three month period ended 31 March 2012	For the nine month period ended 31 March 2012
Net asset value per share	+7.2%	-11.4%
Ordinary share price	+8.5%	-12.3%
Composite Index	+2.0%	-15.8%
HSBC Global Mining Index (sterling adjusted)	+2.1%	-19.8%
Credit Suisse High Yield Bond Index (sterling adjusted)	+1.9%	+6.3%

Capital Values - 3 months	As at 31 March 2012	As at 31 December 2011	% Change
Net assets (£000s)	£207,539	£194,096	+6.9%
Net asset value per share	310.4p	290.3p	+6.9%
Share price	264.0p	243.9p	+8.2%
Discount	14.9%	16.0%
Gearing (100 = nil geared position) *	116.7%	117.8%

Capital Values - 9 months	As at 31 March 2012	As at 30 June 2011	% Change
Net assets (£000s)	£207,539	£236,788	-12.4%
Net asset value per share	310.4p	354.2p	-12.4%
Share price	264.0p	305.0p	-13.4%
Discount	14.9%	13.9%
Gearing (100 = nil geared position) *	116.7%	107.9%

* Gearing = Total assets ÷ Equity Shareholders' Funds

Review for the Period

Quarterly Review:

A stronger quarter for markets and resource prices than for commodity stocks, as a flood of equity issuance proved difficult to absorb as the quarter wore on.  The Company's Net Asset Value, up more than 16% at the end of Feb, finished 6.9% ahead.  This was well ahead of the benchmark index which generated a total return of 2%.

The ECB Long Term Refinancing operations temporarily calmed the Euro-Zone, but this has been shattered since the quarter end and markets have reacted badly, not helped in the resources arena by the Argentinian government expropriation of the oil company YPF.  The Company's net asset value currently stands at 266.2 pence per share down 14.2% since the quarter end.

Dividend:

A second interim dividend for the year to 30 June 2012 of 0.77p per share was paid on 24 February 2012 to shareholders on the register on 27 January 2012. 

Top Ten Holdings as at 31 March 2012

Company	Sector	Country Listing	Percentage of total investments
R.E.A Holdings (Note 1)	Palm Oil	UK	3.4
New Britain Palm Oil	Palm Oil	UK and Papua New Guinea	3.3
Neo Material Technologies	Rare Earth	Canada	3.0
Ausgold (Note 2)	Gold	Australia	2.1
Iluka Resources	Titanium	Australia	1.9
Paladin Energy	Uranium	Australia and Canada	1.8
Sandfire Resources	Copper	Australia	1.5
Wessex Exploration	Oil & Gas	UK	1.4
Coalspur Mines	Coal	Australia	1.4
Kingsrose Mining	Gold	Australia	1.4
Total			21.2

Note 1 - Includes REA Holdings 9% Cum Pref Shs and REA Finance 9.5% 31/12/2017

Note 2 - Includes warrants

Note 3 - Includes Paladin Energy 5% 11/03/2013

Classification of Investment by Stock Market Quotation as at 31 March 2012

Country	Percentage of total investments
Australia	36.2
Canada	29.9
UK	19.0
US	10.7
Europe	1.7
Norway	1.7
Hong Kong	0.4
Sweden	0.3
Papua New Guinea	0.1
Total	100.0

Sector Split by Resources as at 31 March 2012

Sector	Percentage of net assets
Gold	24.5
Oil & gas	13.0
Uranium	6.4
Rare Earth	5.5
Palm Oil	5.4
Other mining investments	4.5
Copper	4.5
Silver	4.4
Alternative investments	2.6
Iron ore	2.1
Rubber	0.6
Platinum	0.4
Preference shares	4.2
Fixed interest	16.7
Net current assets	5.2
Total	100.0

Sector Split by Resources including Fixed Interest Securities as at 31 March 2012

Sector	Percentage of net assets
Gold	26.4
Oil & gas	21.1
Palm Oil	7.5
Uranium	6.8
Rare Earth	5.5
Other mining investments	5.3
Silver	4.6
Copper	4.5
Finance	4.0
Iron Ore	3.9
Alternative Energy	3.7
Rubber	0.6
Nickel	0.5
Platinum	0.4
Net current assets	5.2
Total	100.0

Analysis of Investments by Quotation as at 31 March 2012

	Percentage of total assets
Listed/Quoted on a recognised investment exchange	92.2
Unquoted - other	1.8
Unquoted - convertible into a security quoted on a recognised exchange	0.8
Net current assets	5.2
Total	100.0

Significant Events or Transactions

A third interim dividend for the year to 30 June 2012 of 0.77p per share was declared on 18 April 2012. This dividend is payable to shareholders on the register on 27 April 2012 and will be paid on 25 May 2012.

The Board is not aware of any other significant events or transactions which have occurred since 31 March 2012 and the date of publication of this statement which would have a material impact on the financial position of the Company.

Daily and Key Information

Further information regarding the Company including the recent share price and the recent monthly fact sheet, can be found at the Manager's website www.ncim.co.uk

For further information please contact:

Will Smith/Ian Francis                                                    Martin Cassels

New City Investment Managers                                       R&H Fund Services Limited

0207 201 5387/5369                                                       0131 625 2951

Beth Harris

Newgate Threadneedle Limited

0207 653 9850

Note to Editors:

Winner of the best commodity fund at the Investors Chronicle Fund Awards 2012.

City Natural Resources High Yield Trust plc is managed by Will Smith and Ian Francis of New City Investment Managers.

The investment objective of the Company is to provide shareholders with capital growth and income predominantly from a portfolio of mining and resource equities and of mining, resource and industrial fixed interest securities.

If you would like to receive the monthly factsheet on the City Natural Resources High Yield Trust or any of the other New City Investment Managers' funds please email [e-mail]       

 

END

 

 

IMSARMTTMBABBPT