Interim Management Statement

RNS Number : 9987E

City Natural Res High Yield Tst PLC

17 May 2013

 



To: RNS

Date: 17 May 2013

From: City Natural Resources High Yield Trust plc

Interim Management Statement

For the Three Month Period from 1 January 2013 to 31 March 2013

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 31 March 2013	For the nine month period ended 31 March 2013
Net asset value per share	-2.7%	-4.7%
Ordinary share price	-8.1%	-10.3%
Composite Index	-3.3%	+4.0%
HSBC Global Mining Index (sterling adjusted)	-6.9%	+1.0%
Credit Suisse High Yield Bond Index (sterling adjusted)	+9.9%	+14.8%

Capital Values - 3 months	As at 31 March 2013	As at 31 December 2012	% Change
Net assets (£000s)	£153,528	£158,417	-3.1%
Net asset value per share	229.6p	236.9p	-3.1%
Share price	190.0p	207.5p	-8.4%
Discount	17.2%	12.4%
Gearing	20.4%	19.5%

Capital Values - 9 months	As at 31 March 2013	As at 30 June 2012	% Change
Net assets (£000s)	£153,528	£163,946	-6.4%
Net asset value per share	229.6p	245.2p	-6.4%
Share price	190.0p	216.0p	-12.0%
Discount	17.2%	11.9%
Gearing *	20.4%	12.5%

* Gearing = Total assets less cash ÷ equity shareholders' funds

Review for the Period

Quarterly Review:

The Company's net asset value total return of -2.7% over the quarter was a little better than that of the benchmark index which returned -3.3%.  The share price total return fell by 8.1%, as the discount at which the Company's shares traded widened from 12.4% to 17.2%.  The market calm was of a wintry rather than summery nature, with the failure of the Toronto Stock Exchange to see a single mining IPO during the quarter emblematic of a widespread malaise which came to some sort of head in April.

The Company's gearing remained at the 20% level throughout the quarter.

Dividend:

A second interim dividend for the year to 30 June 2013 of 0.86p per share was paid on 22 February 2013 to shareholders on the register on 25 January 2013. 

Top Ten Holdings as at 31 March 2013

Company	Sector	Country Listing	Percentage of total investments
REA Holdings (Note 1)	Palm Oil	UK	4.2
Sirius Resources	Nickel	Australia and Canada	3.0
New Britain Palm Oil	Palm Oil	UK and Papua New Guinea	2.1
First Quantum Minerals Norwegian Energy (Note 2) Iluka Resources Eldorado Gold Perseus Mining Horizon Oil (Note 3) Sandfire Resources	Copper Oil & gas Titanium Gold Gold Oil & gas Copper	Canada Norway Australia Canada Australia and Canada Australia Australia	2.0 2.0 1.9 1.8 1.8 1.8 1.5
Total			22.1

Note 1 - Includes REA Holdings 9% Cum Pref Shs and REA Finance 9.5% 31/12/2017

Note 2 - Includes Norwegian Energy Norno 12.9% 20/11/2014, Norwegian Energy 10.41% 06/12/2013 and Norwegian Energy 10.5% 25/02/2016

Note 3 - Includes Horizon Oil 5.5% 17/06/2016

Classification of Investment by Stock Market Quotation as at 31 March 2013

Country/Location	Percentage of total investments
Canada	30.7
Australia	28.5
UK	21.1
Norway	6.1
Sweden	3.2
Europe	2.8
Other	2.1
Unquoted	5.5
Total	100.0

Sector Split by Resources as at 31 March 2013

Sector	Percentage of net assets
Gold	24.4
Oil & gas	19.7
Uranium Copper Palm oil Nickel Silver Rare earth Other mining investments Agriculture Iron ore Coal Rubber Alternative energy Platinum Other investments Diamonds Preference shares	6.7 6.5 5.9 3.8 3.2 3.1 2.3 2.0 1.7 1.3 0.9 0.4 0.3 0.2 0.1 7.7
Fixed interest	29.6
Net current assets 3.5% Convertible Unsecured Loan Stock 2018	3.3 (23.1)
Total	100.0

Sector Split by Resources including Fixed Interest Securities as at 31 March 2013

Sector	Percentage of net assets
Oil & gas Gold Palm oil Uranium Copper Finance Other mining investments Rare earth Iron ore Nickel Silver Other investments Alternative energy Agriculture Coal Rubber Platinum Diamonds Net current assets 3.5% Convertible Unsecured Loan Stock 2018	32.2 27.4 9.5 7.1 6.5 6.1 5.2 4.4 4.2 4.2 3.4 2.9 2.1 2.0 1.3 0.9 0.3 0.1 3.3 (23.1)
Total	100.0

Analysis of Investments by Quotation as at 31 March 2013

	Percentage of investments
Listed/Quoted on a recognised investment exchange	94.5
Unquoted - other	4.2
Unquoted - convertible into a security quoted on a recognised exchange	1.3
Total	100.0

Significant Events or Transactions

A third interim dividend for the year to 30 June 2013 of 0.86p per share was declared on 18 April 2013. This dividend is payable to shareholders on the register on 26 April 2013 and will be paid on 31 May 2013.

The latest net asset value at the time of writing had fallen to 190.38p.

The Board is not aware of any other significant events or transactions which have occurred since 31 March 2013 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:

Will Smith/Ian Francis                                                    Martin Cassels

New City Investment Managers                                       R&H Fund Services Limited

0207 201 5387/5369                                                       0131 625 2951

Beth Harris

Newgate Threadneedle Limited

0207 653 9850

Note to Editors:

2012 winner of Investors Chronicle Awards for best commodity trust

2012 winner of Investment Week's award for best commodity and resources trust

City Natural Resources High Yield Trust plc is managed by Will Smith and Ian Francis of New City Investment Managers.

The investment objective of the Company is 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.

If you would like to receive the monthly factsheet on the City Natural Resources High Yield Trust or any of the other New City Investment Managers' funds please email [e-mail]       

 

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