Interim Management Statement

RNS Number : 9690T

Edinburgh New Income Trust plc

06 October 2010

 



Edinburgh New Income Trust plc

Interim Management Statement - 3 months to 31 August 2010

To the members of Edinburgh New Income Trust plc

This interim management statement has been produced solely to provide additional information to shareholders as a body to meet the relevant requirements of the UK Listing Authority's Disclosure and Transparency Rules. It should not be relied upon by any other party or for any other purpose.

This interim management statement relates to the period from 1 June 2010 to 31 August 2010, and contains information that covers this period, and up to the date of publication of this interim management statement, unless otherwise specified.

Investment objective and policy

To provide ordinary shareholders with an attractive level of income, together with the potential for capital and income growth and to provide ZDP shareholders with a pre-determined capital entitlement on 31 May 2011 of 141.85p.   

The Company will invest mainly in UK quoted equities selected primarily for their potential, in the opinion of the Investment Manager, to provide an attractive dividend yield and capital appreciation.

At the total assets level gearing has been kept under control by maintaining a cash buffer together with a corporate bond portfolio to generate additional income.

Benchmark

The Company does not have a benchmark, but the portfolio is largely drawn from large, mid and small cap components of the FTSE All-Share Index.

Material transactions

A fourth interim dividend of 2.1p per ordinary share for the year ended 31 May 2010 was paid to shareholders on 22 August 2010.   The Directors declared a 1^st interim dividend of 1.3p per ordinary share for the year ended 31 May 2011 on 6 October 2010, payable on 12 November 2010.

Ten largest equity holdings at 31 August 2010

	%
Brit American Tobacco	4.4
AstraZeneca	4.2
Centrica	4.0
HSBC	3.6
Vodafone	3.6
Royal Dutch Shell 'B'	3.6
GlaxoSmithKline	2.7
National Grid	2.5
Standard Chartered	2.4
Aviva	2.4
Total	33.4

Sector allocation as at 31 August 2010

	%
Fixed Interest	21.7
Financials	17.5
Consumer Goods	10.9
Utilities	8.8
Oil & Gas	8.3
Consumer Services	7.9
Health Care	6.8
Industrials	5.9
Basic Materials	4.5
Telecommunication Services	3.6
Technology	1.1
Cash	3.0
Total	100.0

General description of Company's financial position and performance as at 31 August 2010

	£m
Ordinary shareholder funds¹	11.1
ZDP shareholder funds	20.6
Gross assets¹	31.7
(¹ Excluding current year revenue)
Actual gearing (equities/ordinary shareholders funds)	195%

Cumulative performance (%)*

	As at 31 August 2010	3 months	6 months	1 year	3 years	5 years
Share Price Ordinary	53.8	9.7	3.9	23.8	-39.3	-14.7
Share Price ZDP	136.3	2.3	0.9	4.8	18.7	31.0
NAV Ordinary	53.9	9.2	0.7	22.7	-45.4	-19.2
NAV ZDP	135.8	1.5	3.0	6.0	19.1	33.8
FTSE All-Share		1.7	0.4	10.6	-7.3	21.0

Discrete performance (%)*

Year ending	31/08/2010	31/08/2009	31/08/2008	31/08/2007	31/08/2006
Share Price Ordinary	23.8	-27.0	-32.9	20.0	17.2
Share Price ZDP	4.8	9.9	3.1	5.8	4.3
NAV Ordinary	22.7	-34.9	-31.6	15.9	27.6
NAV ZDP	6.0	6.0	6.0	6.0	6.0
FTSE All-Share	10.6	-8.2	-8.7	11.8	16.8

Total Return; NAV to NAV, Net Income Reinvested, GBP
Source: Aberdeen Asset Managers Limted, Factset and Morningstar
NAV returns based on NAVs excluding income and with debt valued at par

The Board is not aware of any significant events or transactions which have occurred between 31 August 2010 and the date of publication of this interim management statement which would have a material impact on the financial position of the Company.

The Company's NAVs are published daily and are available on the Company's website, www.edinburghnewincome.co.uk.

Please note that past performance is not necessarily a guide to the future and that the value of investments and the income from them may fall as well as rise.  Investors may not get back the amount they originally invested.

For Edinburgh New Income Trust plc

Aberdeen Asset Managers Limited, Secretary

6 October 2010

 

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