Interim Management Statement

RNS Number : 3335S

City Natural Res High Yield Tst PLC

15 May 2009

 



To: RNS

Date: 15 May 2009

From: City Natural Resources High Yield Trust plc

Interim Management Statement 

For the Three Month Period from 1 January 2009 to 31 March 2009

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, resources and industrial fixed interest securities. 

Performance Summary

Total Return	For the three month period ended 31 March 2009	For the nine month period ended 31 March 2009
Net asset value per share	24.8%	-35.5%
Ordinary share price	37.7%	-42.2%
Composite Index	8.6%	-26.6%
HSBC Global Mining Index (sterling adjusted)	9.4%	-45.1%
Credit Suisse High Yield Bond Index (sterling adjusted)	7.0%	10.4%

 

Capital Values – 3 months	As at 31 March 2009	As at 31 December 2008	% Change
Net assets (£000s)	£91,003	£72,584	25.3%
Net asset value per share -basic	144.6p	115.4p	25.3%
Net asset value per share – fully diluted	141.1p	113.6p	24.2%
Share price	107.0p	78.3p	36.7%
Discount	24.2%	31.1%
Gearing (100 = nil geared position) *	122.0	122.0

 

Capital Values	As at 31 March 2009	As at 30 June 2008	% Change
Net assets (£000s)	£91,003	£145,131	-37.3%
Net asset value per share -basic	144.6p	230.8p	-37.3%
Net asset value per share – fully diluted	141.1p	222.1p	-36.5%
Share price	107.0p	189.0p	-43.4%
Discount	24.2%	14.9%
Gearing (100 = nil geared position) *	122.0	120.6

* Gearing = Total assets ÷ Equity Shareholders' Funds

Review for the Period

Quarterly Review:

One of the best quarters that the Company has had, with the fully diluted net asset value up 24.2 per cent and the share price up 37.7 per cent.  The discount narrowed from 31.1 per cent to 24.2 per cent; still too wide, but better than prevailed during late 2008.

Improved Chinese growth forecasts perhaps underpinned strengthening commodity prices, with oil rising back through the US $50 per barrel level and base metals coming in for renewed buying. Gold proved resilient in spite of the IMF's comments concerning prospective sales, while uranium and palm oil were also bright. The Company is well represented in all these areas.

Volatility has not left the market, and we are cautious in the near term. This is reflected in our gearing policy, and the Company continues to review its gearing strategy and short term borrowing arrangements.

The revenue account continues to be strong and the Board intends, circumstances permitting, to maintain the Company's record of dividend increases over recent years.

Dividend:

A second interim dividend for the year to 30 June 2009 of 0.55p per share was paid on 27 February 2009 to shareholders on the register on 30 January 2009.  

Top Ten Holdings as at 31 March 2009

Company	Country Listing	Percentage of total investments
Extract Resources	Australia	8.2
Goldcorp	Canada	5.9
Kalahari Minerals	UK	4.5
Randgold Resources	UK	2.4
REA Holdings Ordinary and 9.5% Preference Shares	UK	2.4
FMG Finance 9.75% 13	Europe	2.3
New Britain Palm Oil	Papua New Guinea and UK	2.2
Kinross Gold	Canada	1.9
CGA Mining	US	1.8
Nido Petroleum	Australia	1.7
Total		33.3

 

 

 

 

Geographical Analysis as at 31 March 2009

Country	Percentage of total investments
Australia	34.9
UK	25.4
Canada	20.9
US	10.1
Europe	2.6
New Zealand	1.4
Hong Kong	1.2
Papua New Guinea	1.2
Other	2.3
Total	100.0

 

Analysis of total assets as at 31 March 2009

Sector	Percentage of total assets
Resources – Equities	39.4
Gold Equities	23.0
Resources – Convertibles	20.5
Bonds	9.6
Preference Shares	2.7
Cash	4.8
Total	100.0

 

 

Analysis of Investments by Quotation as at 31 March 2009

	Percentage of total assets
Listed/Quoted on a recognised investment exchange	79.5
Unquoted (convertible into a security quoted on a recognised exchange)	10.4
Unquoted	5.3
Cash	4.8
Total	100.0

 

 

Significant Events or Transactions

A third interim dividend for the year to 30 June 2009 of 0.55p per share was declared on 22 April 2009. This dividend is payable to shareholders on the register on 1 May 2009 and will be paid on 29 May 2009.

The Board is not aware of any other significant events or transactions which have occurred since 31 March 2009 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:

Richard Lockwood                                    Martin Cassels

New City Investment Managers Ltd            F&C Asset Management plc

0207 201 5365                                         0208 628 8000

 

END

 

 

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