Interim Management Statement

RNS Number : 2683H

City Natural Res High Yield Tst PLC

16 May 2014

 



To: RNS

Date: 16 May 2014

From: City Natural Resources High Yield Trust plc

Interim Management Statement

For the Three Month Period from 1 January 2014 to 31 March 2014

Investment Objective

City Natural Resources High Yield Trust plc aims 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.

Performance Summary

Total Return	For the three month period ended 31 March 2014	For the nine month period ended 31 March 2014
Net asset value per share	+4.1%	-2.8%
Ordinary share price	+4.1%	-4.5%
Composite Index	+1.3%	+4.5%
HSBC Global Mining Index (sterling adjusted)	+0.9%	+6.4%
Credit Suisse High Yield Bond Index (sterling adjusted)	+2.5%	-0.2%

Capital Values - 3 months	As at 31 March 2014	As at 31 December 2013	% Change
Net assets (£000s)	£103,060	£99,599	3.5%
Net asset value per share	154.1p	148.9p	3.5%
Share price	125.0p	120.8p	3.5%
Discount	18.9%	18.9%
Gearing	19.0%	21.3%

Capital Values - 9 months	As at 31 March 2014	As at 30 June 2013	% Change
Net assets (£000s)	£103,060	£109,094	-5.5%
Net asset value per share	154.1p	163.1p	-5.5%
Share price	125.0p	135.0p	-7.4%
Discount	18.9%	17.2%
Gearing *	19.0%	22.7%

* Gearing = Total assets less cash ÷ equity shareholders' funds

Review for the Period

Quarterly Review:

A better quarter for commodity markets was echoed in the sector's equities and the Company's NAV rose by 3.5% to 154.1p.  The ordinary share price rose by the same amount and the discount was unchanged at 18.9%.

The Company's large energy exposure played a full part in this, with oil and gas stocks benefitting from an unusually cold and protracted North American winter and nervousness around the situation in the Ukraine, while uranium stocks were strong in spite of a subdued spot price.  The Company's palm oil holdings, REA and New Britain Palm Oil, also showed encouraging signs of having turned the corner.

Dividend:

A second interim dividend for the year to 30 June 2014 of 0.86p per share was paid on 28 February 2014 to shareholders on the register on 31 January 2014. 

Top Ten Holdings as at 31 March 2014

Company	Sector	Country Listing	Percentage of total investments
REA Holdings (Note 1)	Palm Oil	UK		6.2
Vermilion Energy	Oil & gas	Canada		4.9
New Britain Palm Oil	Palm Oil	UK		3.4
Sirius Resources Iona Energy 9.5% 27/09/2018 ARC Resources Surge Energy Fission Uranium Diamorph 12% 06/07/2017	Nickel Oil & gas Oil & gas Oil & gas Uranium Other investments	Australia Canada Canada Canada Canada Swedish		2.6 2.2 2.0 1.9 1.7 1.7
Antares Energy 10% 30/10/2023	Oil & gas	Australia		1.5
Total				28.1

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

Classification of Investment by Stock Market Quotation as at 31 March 2014

Country/Location	Percentage of total investments
Canada	38.6
UK	27.0
Australia	16.3
Europe	10.2
United States	2.3
Unquoted	5.6
Total	100.0

Sector Split by Resources as at 31 March 2014

Sector	Percentage of net assets
Oil & gas	28.0
Gold	15.9
Palm oil	7.7
Uranium	5.4
Copper	4.9
Other mining investments	3.2
Nickel	3.1
Silver	2.5
Agriculture	2.3
Diamonds	2.3
Alternative energy	1.8
Iron ore	0.7
Rare earth	0.5
Coal	0.4
Platinum	0.2
Preference shares	11.5
Fixed interest	28.0
Net current assets 3.5% Convertible Unsecured Loan Stock 2018	16.8 -35.2
Total	100.0

Analysis of Investments by Quotation as at 31 March 2014

	Percentage of investments
Listed/Quoted on a recognised investment exchange	94.4
Unquoted - other	4.9
Unquoted - convertible into a security quoted on a recognised exchange	0.7
Total	100.0

Significant Events or Transactions

A third interim dividend for the year to 30 June 2014 of 0.86p per share was declared on 24 April 2014. This dividend is payable to shareholders on the register on 2 May 2014 and will be paid on 30 May 2013.

The latest net asset value at the time of writing had risen to 154.3p.

The Board is not aware of any other significant events or transactions which have occurred since 31 March 2014 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 524 6140

 

END

 

 

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