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UK Select Trust Ld (UKT)

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Friday 18 May, 2012

UK Select Trust Ld

Interim Management Statement

RNS Number : 7065D
UK Select Trust Limited
18 May 2012
 



UK Select Trust Limited (the "Fund")

 

Interim Management Statement

 

This interim management statement ("IMS") covers the period from 1 January 2012 up to the date of publication of this IMS (the "Period"), unless otherwise specified.  It has been produced for the sole purpose of providing the information to the Company's shareholders in accordance with the 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.

 

Investment Objective

 

To provide a total return to shareholders in excess of that of the FTSE All-Share index and pay a progressive dividend.

 

Share Price and NAV Performance*

 


31 March

2012

31 December

2011

               % movement

Ordinary Shares




NAV (p)

151.13p

142.08p

+6.37%

Share Price (p)

126.0p

120.0p

+5.00%

Discount (%)

16.63%

15.54%


Total net assets (£'000)

£30,970

£29,471

+5.09%





FTSE All-Share Index

3,002.78

2,857.88

+5.07%

 

*Past performance is not a guide to future performance. The value of an investment and any income from it is not guaranteed and can go up and down depending on investment performance.

 

The Fund had a strong quarter, outperforming its benchmark by 3.19%. The largest contributor to performance was the holding in Indus Gas, the owner of gas assets in Western India,  shares in which outperformed the wider market by close to 40%.  Indus Gas is presently expected to provide an update on its reserves and resources in 2012.

 

After a share price fall in January on the reversal of a previously positive court decision, the Investment Manager added to the Fund's holding in Essar Energy. Fund performance then benefited as Essar outperformed the wider market by almost 50% during March.

 

Limited exposure to the banking sector weighed on performance as the banks rallied strongly on the back of the announcement of the second tranche of the long term refinancing operations.

 

Financial Position

 

The Investment Manager continued to populate the Fund with conviction "buy" ideas, adding to holdings in Essar Energy, Invensys and DS Smith and building a new position in Imperial Tobacco. These transactions were financed by profit taking in Indus Gas and by selling the holdings in Smiths Group and RSA Insurance. The Fund remains overweight in the pharmaceutical sector but the Investment Manager switched its preferred exposure from GlaxoSmithKline to AstraZeneca.

 

  

Gearing

 

Although the Company has a borrowing facility of £2,000,000, it did not utilise any borrowings during the Period.

 

Material Events

As announced on 16 April 2012, the Company has received notice from the Company's Investment Manager, Scottish Widows Investment Partnership Limited ("SWIP"), to terminate the investment management agreement.  SWIP has confirmed that it will continue to manage the Company for the duration of the notice period (being six months, expiring on 18 October 2012) or such shorter period as SWIP and the Board may agree.  The Board, with its advisers, Canaccord Genuity Limited, is considering appropriate arrangements for the Company going forward and will make a further announcement in due course.

There were no other significant events or transactions which have occurred during the Period which would have a material impact on the Company.

Dividend

A second interim dividend of 3.15p per share was declared by the Board of Directors on 29 March 2012 for the year ended 31 December 2011, payable on 25 May 2012.  Shares were marked ex-dividend on 11 April 2012 and the record date for the interim dividend was 13 April 2012.  This, together with the first interim dividend of 0.95 pence per Ordinary Share (2010: first interim dividend 0.9 pence), makes a total of 4.1 pence for the year (2010: 3.9 pence).

Material Transactions

On 16 January 2012, 250,000 shares were bought back and placed in treasury, at a price of 119.0 pence per share.

 

Top 10 Holdings

Company

% of net assets as at 31 March 2012

% of net assets as at 31 December 2011

AstraZeneca PLC

7.13%

4.71%

Resolution Limited

5.99%

5.40%

KSK Power Ventur PLC

5.66%

3.79%

Indus Gas Limited

5.52%

6.70%

BP PLC

5.14%

8.67%

Essar Energy PLC

5.08%

1.39%

Reed Elsevier PLC

4.89%

6.52%

DS Smith PLC

4.73%

1.69%

Berkeley Group Holdings

3.47%

4.32%

iEnergizer Limited

3.41%

2.67%

 

 

Further information

 

Further information regarding the Company, including factsheets, can be found at the investment manager's website www.swip.com.

 

Enquiries:

 

Secretary

Kleinwort Benson (Channel Islands) Fund Services Limited

Telephone 01481 710607

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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