Interim Management Statement

RNS Number : 6573C

City Natural Res High Yield Tst PLC

17 November 2009

 



To: RNS

Date: [17] November 2009

From: City Natural Resources High Yield Trust plc

Interim Management Statement 

For the Three Month Period from 1 July 2009 to 30 September 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 30 September 2009
Fully Diluted net asset value per share	26.1%
Ordinary share price	25.5%
Composite Index	24.6%
HSBC Global Mining Index (sterling adjusted)	26.5%
Credit Suisse High Yield Bond Index (sterling adjusted)	17.3%

Capital Values	As at  30 September  2009	As at 30 June  2009	% Change
Net assets (£000s)	135,192	107,316	26.0
Net asset value per share -basic	214.9p	170.6p	26.0
Net asset value per share – fully diluted	207.2p	165.5p	25.2
Share price	164.0p	132.0p	24.2
Discount	20.8%	20.2%
Gearing (100 = nil geared position) *	109.0%	112.5%

* Gearing = Total assets ÷ Equity Shareholders' Funds

Review for the Period

Quarterly Review:

Another strong quarter, with the fully diluted net asset value up 25.2 per cent and the share price up 24.2 per cent. The discount ended the quarter where it began, hovering around the 20 per cent level; still too wide, but significantly better than during the first part of the year.

Evidence mounted during the quarter that the emerging markets are best placed to weather this year's economic downturn and push ahead thereafter, with demand from China and India in particular underpinning resource prices. An oil price of $70 per barrel proved resilient, uranium's renewed strength benefitted one of the Company's key exposures, and the Company's move into the rare earth sector was rewarded with unexpected and pleasing rapidity. Finally gold, one of the Company's cornerstones, pushed through $1,000 per ounce.

The markets remain volatile, and we remain cautiously optimistic; the strength of both oil ($80 per barrel) and gold ($1,100 per ounce) since the quarter end, even allowing for US dollar weakness, is an intriguing combination.

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 final dividend for the year to 30 June 2009 of 1.42p per share was paid on 28 August 2009 to shareholders on the register on 7 August 2008.  This took the dividend for the year to 30 June 2009 to 3.07p, an increase of 15.8 per cent on the prior year. 

Warrants:

The final exercise date for the warrants was 31 October 2009. On 11 November 2009 3,932,914 ordinary shares of 25p were admitted to the Official List following the exercise of 3,932,914 warrants. Trading on these additional shares commenced on 13 November 2009 at 8.00am.

Following this listing there are now 66,857,143 ordinary shares of 25p in issue.

Top Ten Holdings as at 30 September 2009

Company	Country	Percentage of total investments
Extract Resources	Australia	8.1
Kalahari Minerals	UK	6.2
Goldcorp	Canada	4.6
REA Holdings	UK	2.7
New Britain Palm Oil	UK / Papua New Guinea	2.6
Kiwara	UK	2.5
FMG Finance 9.75% 01/09/13	Europe	2.3
Horizon Oil	Australia	1.8
Randgold Resources	UK	1.8
New Gold Inc	Canada	1.6
Total		34.2

Geographical Analysis as at 30 September 2009

Country	Percentage of total investments
Australia	37.4
United Kingdom	28.0
Canada	19.8
United States	7.5
Europe	4.2
Papua New Guinea	1.6
China	1.3
South Africa	0.2
Total	100.0

Sector Distribution as at 30 September 2009

Country	Percentage of total investments
Gold and precious metals – equities	39.0
Other resources – equities	14.7
Uranium – equities	16.9
Corporate bonds	16.5
Convertibles	10.3
Preference shares	2.6
Total	100.0

Analysis of Investments by Quotation as at 30 September 2009

	Percentage of total investments
Listed/Quoted on a recognised investment exchange	86.2
Unquoted (convertible into a security quoted on a recognised exchange)	8.9
Unquoted	4.9
Total	100.0

Significant Events or Transactions

A first interim dividend for the year to 30 June 2010 of 0.62p per share was declared on 22 October 2009; this represented an increase of 12.7 per cent on that of the year before.  This dividend is payable to shareholders on the register on 30 October 2009 and will be paid on 27 November 2009.

The Board is not aware of any other significant events or transactions which have occurred since 30 September 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

This interim management statement has been prepared solely to provide information to meet the requirements of the UK Listing Authority's Disclosure and Transparency Rules.

For further information please contact:

Richard Lockwood

New City Investment Managers Ltd

0207 201 5365

Martin A Cassels

F&C Asset Management plc

0207 628 8000

 

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