Interim Management Statement

RNS Number : 3958G

City of London Investment Trust PLC

06 May 2014

 



HENDERSON GLOBAL INVESTORS

 

THE CITY OF LONDON INVESTMENT TRUST PLC

6 MAY 2014

THE CITY OF LONDON INVESTMENT TRUST PLC

Interim Management Statement

Review of the period from 1 January 2014 to 31 March 2014

MATERIAL EVENTS OR TRANSACTIONS DURING THE PERIOD

Portfolio:  

The portfolio remains predominantly invested in large capitalisation companies listed in the UK with global operations. New holdings were purchased in Anglo American, Old Mutual and Syngenta. A holding in Verizon Communications, which entered the portfolio as a result of Vodafone's sale of its stake in the US wireless joint venture, has been retained.

Gearing:  during the quarter, gearing increased from 7.5% (at 31 December 2013) to 8.6% (at 31 March 2014).

Premium:  at 31 March 2014 the share price was trading at a premium of 2.1% to the net asset value (income-inclusive, with debt at fair value); at 31 December 2013 it was trading at a premium of 1.9%.

Share Capital: during the quarter, the Company issued 6,575,000 shares for total proceeds of £24.7m.

Dividends:  a second interim dividend of 3.63p per ordinary share in respect of the year ending 30 June 2014 was paid on 28 February 2014 to shareholders on the register on 24 January 2014.  On 21 March 2014 the Board declared a third interim dividend of 3.75p per ordinary share in respect of the year ending 30 June 2014 to be paid on 30 May 2014 to shareholders on the register on 2 May 2014.

There are no other material events or transactions to report.

PERFORMANCE AND FINANCIAL HIGHLIGHTS

Total Return Performance to 31 March 2014

	3 months	1 year	3 years	5 years
Net asset value per ordinary share 1	0.4%	12.2%	50.0%	152.4%
Share price 1	0.6%	13.0%	48.6%	156.0%
UK Growth & Income investment trust sector - size weighted average net asset value 1, 2	0.8%	14.5%	51.1%	160.8%
FTSE All-Share Index 3	-0.6%	8.8%	28.8%	113.3%
UK Equity Income OEIC Sector 4	0.7%	13.9%	38.7%	121.4%

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 Equity Income investment trust sector 

3 Datastream

4 Morningstar

Financial Position

	at 31 March 2014	at 31 December 2013
Net assets	£1,039.0m	£1,020.8m
Net asset value (par value with income)	372.17p	374.45p
Net asset value (fair value with income)	368.58p	370.97p
Ordinary share price	376.50p	378.00p
Premium to NAV (par value)	1.2%	0.9%
Premium to NAV (fair value)	2.1%	1.9%
Gearing	8.1%	7.5%
Yield	3.9%	3.8%

THE PORTFOLIO

Top 10 Investments	% of portfolio			% of portfolio
at 31 March 2014			at 31 December 2013
Royal Dutch Shell	5.4		Vodafone	5.4
HSBC	4.5		Royal Dutch Shell	5.3
British American Tobacco	4.5		HSBC	5.0
GlaxoSmithKline	4.1		British American Tobacco	4.4
BP	3.8		GlaxoSmithKline	4.4
Diageo	3.3		Diageo	3.7
Vodafone	3.0		BP	3.6
Unilever	2.5		Unilever	2.4
AstraZeneca	2.2		AstraZeneca	2.1
National Grid	1.9		National Grid	1.9
Top 10 =	34.2		Top 10 =	38.2

Sector Breakdown	% at 31 March 2014	% at 31 December 2013
Financials	22.6	21.8
Consumer Goods	15.7	16.2
Consumer Services	12.2	12.5
Oil & Gas	10.6	10.6
Industrials	10.4	10.8
Health Care	7.9	7.9
Utilities	7.4	7.2
Telecommunications	6.7	7.3
Basic Materials	5.4	4.7
Technology	1.1	1.0

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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