Interim Management Statement

RNS Number : 7594F

Herald Investment Trust PLC

29 April 2014

HERALD INVESTMENT TRUST PLC

Interim Management Statement - three months to 31 March 2014

Herald's objective is to achieve capital appreciation through investments in smaller quoted companies in the areas of telecommunications, multimedia and technology ('TMT'). Investments may be made across the world. The business activities of investee companies will include information technology, broadcasting, printing and publishing and the supply of equipment and services to these companies.

Review of the period

· NAV total return was 2.8%. The share price total return was 1.6%.

· Purchases totalled £18.99mn, with sales of £27.42mn which gave rise to net sales of £8.43mn.

· At 31 March 2014, £25mn had been drawn under the £50mn multi-currency facility (unchanged from 31 December 2013).

Geographic Analysis of Total Assets					Top Ten Equity Holdings
Name	% of		% of		Name				% of
	total		total						total
	assets at		assets at						assets at
	31/03/2014		31/12/2013						31/03/2014
United Kingdom	64.8%		65.3%		Diploma				2.6%
Americas	21.0%		20.6%		Telecom Plus				2.2%
Asia Pacific	4.9%		4.9%		Imagination Technologies				2.0%
EMEA	3.5%		3.5%		Euromoney Institutional Investor				1.9%
Net Liquid Assets	5.8%		5.7%		ATMI				1.8%
					Telit Communications				1.8%
					M&C Saatchi				1.8%
					SDL				1.7%
					IDOX				1.7%
					Kofax				1.6%
Total	100.0%		100.0%						19.1%

Performance

		%
Capital		3 Months		1 Year		3 Years	5 Years
Share Price^†		1.6		20.4		34.1	248.9
NAV^†		2.8		21.4		33.9	216.3
NSCI plus AIM^†		3.0		20.4		32.6	163.3
Russell 2000 (small cap) Technology *		(0.4)		17.1		20.5	170.5
Total Return		3 Months		1 Year		3 Years	5 Years
Share Price^†		1.6		20.6		34.6	259.4
NAV^†		2.8		21.6		34.3	223.2
NSCI plus AIM^†		3.4		23.4		42.8	197.2
Russell 2000 (small cap) Technology *		(0.3)		17.4		21.4	173.4

^†Source: Thomson Reuters Datastream * Source: Bloomberg.




General Information
						31/03/2014		31/12/2013
Equities:						£m		£m
UK						432		433
Overseas						196		192
						628		625
Government bonds						19		19
Net liquid assets						35		18
Bank loans						(25)		(25)
Derivative financial instruments						(16)		(14)
Shareholder's funds						641		623

Net asset value per ordinary share (including current year income)						825.8p		802.8p
Net asset value per ordinary share (excluding current year income)						827.2p		803.2p
Share price						696.0p		685.0p
Discount						15.7%		14.7%
Gearing*						1.0%		3.0%
Gearing into equity, convertibles and corporate bonds^†						(2.0%)		0.0%
Unless stated otherwise, the above figures have been calculated using the AIC cum income basis (includes current financial year retained income). For the current period, expenses to date exceed income earned, resulting in a lower cum income than ex income NAV.



^*Calculated per AIC (total assets (including all debt used for investment purposes) less cash divided by shareholders' funds).
^†Total assets (including all debt used for investment purposes) less all cash and fixed interest securities (excluding convertibles and corporate bonds) divided by shareholders' funds.