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City of London IT (CTY)

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Thursday 08 May, 2008

City of London IT

Interim Management Statement

City of London Investment Trust PLC
08 May 2008

THE CITY OF LONDON INVESTMENT TRUST PLC

HENDERSON GLOBAL INVESTORS

8 MAY 2008





                    THE CITY OF LONDON INVESTMENT TRUST PLC

                          Interim Management Statement

           Review of the period from 1 January 2008 to 31 March 2008





MATERIAL EVENTS OR TRANSACTIONS DURING THE PERIOD


Portfolio:  during the period there was net investment of £4.6m and the number
of holdings in the portfolio increased from 97 to 100.   The holdings in Fortum
and Imperial Tobacco were sold, as well as Scottish & Newcastle, which was
subject to a takeover.  The portfolio includes six new stocks:  AstraZeneca and
Novartis in the pharmaceutical sector, Inchcape and Marks & Spencer in the
General Retail sector, as well as Interserve and Misys.

Gearing:  during the quarter gearing increased from 7% (at 31 December 2007) to
10% (at 31 March 2008).

Dividends:  a third interim dividend of 2.96p per ordinary Share, in respect of
the year ending 30 June 2008, will be paid on 30 May 2008 to holders registered
on 25 April 2008.

Discount:  the share price discount to net asset value (with debt at par value)
narrowed over the period from 14.4% to 6.0%.

Share Capital:  during the quarter the Company bought back 83,893 ordinary
shares and 488,949 second preference stock at a cost of £692,532.   The ordinary
shares are being held in treasury.  The second preference stock was cancelled.



There are no other material events or transactions to report.





PERFORMANCE AND FINANCIAL HIGHLIGHTS



Total Return Performance at 31 March 2008
                                                                  3 months    1 year      3 years      5 years
Net Asset Value per ordinary share                                  -10.4%    -10.9%       +32.4%      +104.4%
FTSE All-Share Index - 4% capped *  +                                -9.5%     -8.1%       +36.0%      +110.0%
FTSE All-Share Index +                                               -9.9%     -7.7%       +31.3%       +98.7%
Average UK Growth & Income Investment Trust Net Asset
Value
                                                                    -12.4%    -13.7%       +24.2%      +101.7%



Sources:  AIC Services Limited /  * Datastream



+  since 1 July 2005 the benchmark is the total return of the FTSE All-Share
Index - adjusted for a maximum 4% cap for any single stock.  Prior to this, it
was the total return of the FTSE All-Share Index.




Financial Position
                                                          at 31 March 2008               at 31 December 2007
Net assets                                                           £602m                             £686m
Net asset value                                                     290.4p                            327.4p
Ordinary share price                                                273.0p                            280.3p
Discount                                                              6.0%                             14.4%
Gearing                                                                10%                                7%
Yield                                                                4.00%                             3.79%
Total Expense Ratio                                                  0.44%                             0.44%





THE PORTFOLIO


Top 10 Investments             % of total assets                                          % of total assets
                                 at 31 March 2008                                       at 31 December 2007
Vodafone                                      5.0      Vodafone                                         5.1
BP                                            4.6      BP                                               4.9
British American Tobacco                      4.6      British American Tobacco                         4.7
HSBC                                          4.5      Royal Dutch Shell                                4.3

Royal Dutch Shell                             4.1      HSBC                                             4.1
Diageo                                        3.8      Diageo                                           3.9

GlaxoSmithKline                               3.6      GlaxoSmithKline                                  3.7
BT                                            2.9      BT                                               3.1
Lloyds TSB                                    2.7      National Grid                                    2.9
Barclays                                      2.7      Scottish & Southern Energy                       2.8
Top 10 =                                     38.5                                                      39.5




Sector Breakdown                                        % at 31 March 2008             % at 31 December 2007
Financials                                                            22.7                              22.6
Consumer Goods                                                        17.3                              18.1
Oil & Gas                                                             10.9                              11.6
Consumer Services                                                     10.7                              10.5
Industrials                                                            9.8                               8.9
Telecommunications                                                     7.8                               8.8
Utilities                                                              7.7                               8.6
Basic Materials                                                        7.7                               6.7
Health Care                                                            4.8                               4.0
Technology                                                             0.6                               0.2



The objective of The City of London Investment Trust plc is to provide long-term
growth in income and capital, principally by investment in UK equities.  The
Manager is Henderson Global Investors Limited.   Further information on the
Company, including a monthly factsheet and up to date NAV and share price
information, can be found at www.cityinvestmenttrust.com



For further information, please contact:

Job Curtis                                              James de Sausmarez
Portfolio Manager                                       Head of Investment Trusts
The City of London Investment Trust plc                 Henderson Global Investors
Telephone: 020 7818 4367                                Telephone: 020 7818 3349

Sarah Gibbons-Cook
Investor Relations and PR Manager
Henderson Global Investors
Telephone: 020 7818 3198

                                    - ENDS -


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