Interim Management Statement

RNS Number : 3223R

City Natural Res High Yield Tst PLC

16 November 2012

 



To: RNS

Date:  16 November 2012

From: City Natural Resources High Yield Trust plc

Interim Management Statement

For the Three Month Period from 1 July 2012 to 30 September 2012

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 30 September 2012
Net asset value per share	+6.48%
Ordinary share price	+2.55%
Composite Index	+4.70%
HSBC Global Mining Index (sterling adjusted)	+5.55%
Credit Suisse High Yield Bond Index (sterling adjusted)	+1.72%

Capital Values - 3 months	As at 30 September 2012	As at 30 June 2012	% Change
Net assets (£000s)	£172,805	£163,946	+5.4%
Net asset value per share	258.4p	245.2p	+5.4%
Ordinary share price +	219.0p	216.0p	+1.4%
3.5% Convertible Unsecured Loan Stock 2018 ("CULS") +	97.0p	100.0p	-3.0%
Discount	15.3%	11.9%
Gearing *	18.8%	12.5%

* The calculation and presentation of gearing is in accordance with the guidance published by the AIC on 1 October 2012

+ Mid market

Review for the Period

Quarterly Review:

The Company's net asset value total return of 6.5% over the quarter was a little ahead of the benchmark index's 4.7%.  It was a calmer quarter for markets, with rotating commodity sectors prospering or declining and then declining or prospering in turn.  The most notable exception was August's rout in an iron ore price which fell by 16%; the Company had only limited exposure in this area.    Overall, Mario Draghi in Europe and Ben Bernanke in the United States did enough to maintain order as markets began to look to November's US Presidential contest and a new Chinese leadership.

Some £10m of the £14m of cash on the balance sheet at 30 June 2012 was invested during the quarter, taking the Company's gearing to 18.8% at the quarter end.

Dividend:

A fourth interim dividend for the year to 30 June 2012 of 2.52p per share was paid on 31 August 2012 to shareholders on the register on 10 August 2012.  This took the dividend for the year to 30 June 2012 to 4.83p, an increase of 14.5 per cent on the prior year.

Top Ten Holdings as at 30 September 2012

Company		Sector	Country Listing	% of total investments
REA Holdings (Note 1)		Palm oil	UK	3.7
New Britain Palm Oil		Palm oil	UK and Papua New Guinea	3.3
Perseus Mining		Gold	Canada and Australia	2.2
First Quantum Minerals		Copper	Canada	1.9
Eldorado Gold		Gold	Canada	1.8
Sandfire Resources		Copper	Australia	1.8
Silver Wheaton		Silver	Canada	1.8
Detour Gold (Note 2)		Gold	Canada	1.6
Great Western Minerals (Note 3)		Rare earth	Canada	1.6
Integra Mining		Gold	Australia	1.4
Total				21.1
	Note 1 - Includes REA Holdings 9% Cumulative Preference Shares and REA Finance 9.5% 31/12/2017
	Note 2 - Includes Detour Gold 5.5% 30/11/2017
	Note 3 - Includes warrants and Great Western Minerals 8% Cv 06/04/2017

Classification of investments by stockmarket quotation as at 30 September 2012

Country				% of total investments
Canada				32.9
Australia				30.0
UK				19.9
Norway				5.2
Sweden				3.5
Europe				2.3
Other				1.3
Unquoted				4.9
Total				100.0

Analysis of net assets as at 30 September 2012

Sector	% of net assets
Gold	33.3
Oil & gas	15.7
Palm oil	6.9
Copper	6.6
Uranium	6.3
Silver	5.5
Other mining investments	5.1
Alternative investments	2.4
Rare earth	2.1
Iron ore	2.0
Rubber	0.8
Platinum	0.3
Preference shares	6.3
Fixed interest	25.0
Net current assets	2.0
3.5% Convertible Unsecured Loan Stock 2018	(20.3)
Total	100.0

Analysis of investments by quotation as at 30 September 2012

	% of total investments
Listed/quoted on a recognised investment exchange	95.1
Unquoted equities (including placings)	3.3
Unquoted convertible securities that are convertible into listed securities	1.3
Unquoted bonds	0.3
Total	100.0

Significant Events or Transactions

A first interim dividend for the year to 30 June 2013 of 0.86p per share was declared on 25 October 2012, an increase of 11.7 per cent on the first interim dividend from last year. This dividend is payable to shareholders on the register on 1 November 2012 and will be paid on 30 November 2012.

The Company issued 2,829 ordinary shares of 25p each in connection with the exercise of conversion rights by holders of a £10,689 nominal of the Company's 3.5 per cent. Convertible Unsecured Loan Stock 2018 with effect from 30 September 2012.  Trading on the Main Market of the London Stock Exchange became effective and dealings in the new shares commenced at 8.00 a.m. on 8 October 2012. 

The Board is not aware of any other significant events or transactions which have occurred since 30 September 2012 and the date of publication of this statement which would have a material impact on the financial position of the Company.

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.

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                                                               0131 625 2951

 

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