Source - RNS
RNS Number : 9758C
City of London Investment Trust PLC
13 February 2020
 

 

LEGAL ENTITY IDENTIFIER: 213800F3NOTF47H6AO55

 

 

THE CITY OF LONDON INVESTMENT TRUST PLC

Unaudited Results for the Half-Year Ended 31 December 2019

 

 

This announcement contains regulated information

 

 

INVESTMENT OBJECTIVE

 

The Company's objective is to provide long-term growth in income and capital, principally by investment in equities listed on the London Stock Exchange. The Board continues to recognise the importance of dividend income to shareholders.

 

 

PERFORMANCE HIGHLIGHTS

 

 

 

As at
31 December 2019

As at
30 June 2019

Net asset value per ordinary share

435.7p

421.2p

Premium

1.8%

1.0%

Net asset value per ordinary share (debt at fair value)

431.0p

416.3p

Premium (debt at fair value)

2.9%

2.2%

Ordinary share price

443.5p

425.5p

Gearing (at par value)

7.7%

7.9%

 

 

 

Dividend yields

As at
31 December 2019

As at
30 June 2019

The City of London Investment Trust plc

4.4%

4.4%

FTSE All-Share Index (Benchmark)

4.1%

4.1%

AIC UK Equity Income sector

3.8%

3.9%

IA UK Equity Income OEIC sector

4.6%

4.6%

 

Sources: Morningstar for the AIC, Datastream

 

Total return performance to 31 December 2019

(including dividends reinvested and excluding transaction costs)

6 months

%

1 year

%

3 years
%

5 years
%

10 years
%

Net asset value per ordinary share1

5.9

21.1

22.9

42.3

163.5

FTSE All-Share Index

5.5

19.2

22.0

43.8

118.3

AIC UK Equity Income sector average - net asset value2

7.5

20.8

22.8

43.3

160.8

Ordinary share price

6.6

20.5

24.2

44.0

177.0

IA UK Equity Income OEIC sector average3

8.3

20.1

19.8

38.5

127.3

 

Sources: Morningstar for the AIC, Janus Henderson, Datastream

 

1. Using cum income fair value net asset value

2. AIC UK Equity Income sector size weighted average net asset value total return (shareholders' funds)

3. The Investment Association ("IA") peer group average is based on mid-day net asset value whereas the returns of the investment trust are calculated using close of business NAV

  

 

INTERIM MANAGEMENT REPORT

 

CHAIRMAN'S STATEMENT

 

Net asset value total return

Despite slowing economic growth, the UK equity market performed well during the second half of 2019. The victory by the Conservatives in the December general election was an important factor, but other significant influences were the three cuts in US interest rates and the strong performance of shares on Wall Street.

 

City of London's net asset value total return for the six months was 5.9%, which was ahead of the FTSE All-Share Index's total return of 5.5%. The biggest sector contributor relative to the Index was having a below average exposure to the oil sector, although Royal Dutch Shell and BP are large holdings in the portfolio. The second biggest contributing sector was housebuilding, with strong performances from our holdings in Taylor Wimpey and Persimmon. The top stock contributor was the pub group, Greene King, which was taken over by CK Asset Holdings of Hong Kong. The biggest sector detractor was having a below average exposure to the pharmaceutical sector, where the underweight position in AstraZeneca was the largest stock detractor. The next biggest stock detractor was not holding London Stock Exchange followed by the holding in Hiscox which gave back some ground after significant long-term performance.

 

Sterling strengthened against both the US dollar and the euro over the six-month period and confidence in UK domestic stocks improved. As a result, the more domestic FTSE Mid 250 Index of medium-sized companies outperformed with a total return of 14.1%. The FTSE 100 Index of the largest companies, which is more international, returned 3.7%. City of London has a greater proportion of its portfolio in large companies than competitors in the AIC UK Equity Income sector and therefore underperformed the sector average over this six-month period.

 

Earnings and dividends

City of London's revenue earnings per share rose by 4.8% compared with the same period last year. So far this financial year, the Company has declared two interim dividends of 4.75p each. City of London's diverse portfolio, strong cash flow and revenue reserve give the Board confidence that it will be able to increase the dividend for a fifty-fourth consecutive year. The quarterly rate will be reviewed by the Board before the third interim is declared in April 2020.

 

Expenses

As a result of the new management fee rate of 0.325% of net assets, which took effect from 1 January 2019, our ongoing charge for the year to 30 June 2019 was 0.39%, down from 0.41% for the previous year. With the new fee rate in place over the full twelve months of our current financial year, to 30 June 2020, the Board expects a further reduction in the ongoing charge.

 

Material events and transactions during the period

A total of 18,185,000 new shares for proceeds of £76.3 million were issued in the six months to 31 December 2019 at a premium to net asset value.

 

The proceeds were invested in a mixture of additions to existing holdings as well as three new holdings of which two are focused on the UK domestic economy. Wm Morrison Supermarkets has a good record of free cash flow generation, strong balance sheet and a differentiated strategy including some of its own food manufacturing. Royal Bank of Scotland, which now has strong capital ratios, should be a particular beneficiary of improving UK economic growth. The third new holding was La Française des Jeux, which is the operator of the French national lottery, with a 25-year license, and has good cash flow characteristics. In addition, M&G, the UK asset manager and life assurer, entered the portfolio after its demerger from Prudential. There were four complete sales of holdings: from the travel & leisure sector, Greene King and TUI; and from the support services sector, De La Rue and Connect Group.

 

Since the period end to 12 February 2020, a further 5,325,000 shares for proceeds of £23.3 million have been issued.

 

Gearing, which was 7.9% at 30 June 2019, remained in a close range over the six months and ended the period at 7.7%. At 31 December 2019, all the fixed rate borrowings were fully invested and £10 million of the £120 million bank facility was drawn down.

 

The Board

Simon Barratt retired as a Director on 1 January 2020. I would like to thank Simon for his wise counsel over the past nine years. We announced on 24 October 2019 that Sir Laurie Magnus will join the Board on 1 March 2020. He is a Senior Advisor at Evercore Partners, an investment banking group, and has over 40 years' experience in the corporate finance advisory business. It is the Board's intention that Sir Laurie will become City of London's Chairman following my retirement at the Annual General Meeting in October 2020.

  

Outlook for the six months to 30 June 2020

The end of the UK's political paralysis is likely to lead to improved business and consumer confidence. While Brexit is settled with the UK having left the European Union, the future trading relationship is unclear and this uncertainty might be a brake on investment intentions and the more optimistic outlook.

 

There is some limited scope for further interest rate cuts for the UK, but further stimulus to economic growth could come from an expanding fiscal deficit, especially given pledges made in the Conservative election manifesto. Globally, growth could continue to be lacklustre, partly because of tensions over tariffs and the spread of the Coronavirus. In addition, monetary policy has probably reached the limits of its effectiveness given historically low interest rates in many countries.

 

While UK equities have performed well in 2019, this only recovers the losses from 2018. In our view, the UK equity market's valuation is supportive, with its dividend yield better than that of most other leading equity markets, yields in most areas of fixed interest and bank deposit rates.

 

Philip Remnant CBE

Chairman

13 February 2020

 

 

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties associated with the Company's business can be divided into the following main areas: 

  • Portfolio and market price
  • Investment activity, gearing and performance
  • Tax and regulatory
  • Operational

 

Information on these risks and how they are managed are given in the Annual Report for the year ended 30 June 2019.  In the view of the Board these principal risks and uncertainties are as applicable to the remaining six months of the financial year as they were to the six months under review.

 

 

DIRECTORS' RESPONSIBILITY STATEMENT

The Directors confirm that, to the best of their knowledge: 

  • the condensed set of financial statements has been prepared in accordance with FRS 104 "Interim Financial Reporting";
     
  • the Interim Management Report includes a fair review of the information required by Disclosure Guidance and Transparency Rule 4.2.7R (indication of important events during the first six months and description of the principal risks and uncertainties for the remaining six months of the year); and
     
  • the Interim Management Report includes a fair review of the information required by Disclosure Guidance and Transparency Rule 4.2.8R (disclosure of related party transactions and changes therein).

 

 

For and on behalf of the Board

Philip Remnant CBE

Chairman

13 February 2020

 

 

For further information please contact:

 

Job Curtis

Fund Manager

The City of London Investment Trust plc

Telephone: 020 7818 4367

Laura Thomas

Investment Trust PR Manager

Janus Henderson Investors

Tel: 020 7818 2636 

 

James de Sausmarez

Director and Head of Investment Trusts

Janus Henderson Investors

Telephone: 020 7818 3349

 

 

  

 

INCOME STATEMENT

 

 

(Unaudited)

Half-year ended

31 December 2019

(Unaudited)

Half-year ended

31 December 2018

(Audited)

Year ended

30 June 2019

 

Revenue

return

£'000

Capital

return

£'000

 

Total

£'000

Revenue

return

£'000

Capital

return

£'000

 

Total

£'000

Revenue

return

£'000

Capital

return

£'000

 

Total

£'000

 

 

 

 

 

 

 

 

 

 

Gains/(losses) on investments held at fair value through profit or loss

65,349 

65,349 

(180,861)

(180,861)

(21,023)

(21,023)

 

 

 

 

 

 

 

 

 

 

Income from investments held at fair value through profit or loss

35,645 

35,645 

31,871 

31,871 

77,438 

-

77,438 

 

 

 

 

 

 

 

 

 

 

Other interest receivable and similar income

116 

116 

131 

131 

288 

-

288 

 

 

 

 

 

 

 

 

 

 

Gross revenue and capital gains/(losses)

35,761 

65,349 

101,110 

32,002 

(180,861)

(148,859)

77,726 

(21,023)

56,703 

 

 

 

 

 

 

 

 

 

 

Management fee

(802)

(1,872)

(2,674)

 (767)

(1,790)

(2,557)

(1,519)

(3,545)

(5,064)

Other administrative expenses

(354)

(354)

(389)

(389)

(726)

-

(726)

 

 

 

 

 

 

 

 

 

 

Net return/(loss) before finance costs and taxation

34,605 

63,477 

98,082 

30,846 

(182,651)

(151,805)

75,481 

(24,568)

50,913 

 

 

 

 

 

 

 

 

 

 

Finance costs

(1,112)

(2,411)

(3,523) 

(1,158)

(2,517)

(3,675)

(2,277)

(4,946)

(7,223)

 

 

 

 

 

 

 

 

 

 

Net return/(loss) before taxation

            33,493 

            61,066 

            94,559 

29,688 

(185,168)

(155,480)

73,204 

(29,514)

43,690 

 

 

 

 

 

 

 

 

 

 

Taxation on net return/(loss)

(420)

(420)

(381)

(381)

(1,181)

-

(1,181)

 

 

 

 

 

 

 

 

 

 

Net return/(loss) after taxation

            33,073 

            61,066 

            94,139 

29,307 

(185,168)

(155,861)

72,023 

(29,514)

42,509 

 

 

 

 

 

 

 

 

 

 

Return/(loss) per ordinary share (note 2)

8.59p 

15.86p 

24.45p 

8.20p 

(51.79p)

(43.59p)

19.76p 

(8.10p)

11.66p 

 

The total columns of this statement represent the Company's Income Statement, prepared in accordance with FRS 104. The revenue and capital columns are supplementary to this and are published under guidance from the Association of Investment Companies.

 

The Company has no recognised gains or losses other than those disclosed in the Income Statement and Statement of Changes in Equity. All items in the above statement derive from continuing operations. No operations were acquired or discontinued during the period.

 

The accompanying notes are an integral part of these financial statements.
 

STATEMENT OF CHANGES IN EQUITY

 

 

 

Half-year ended 31 December 2019 (unaudited)

Called-up share capital

£'000

Share premium account

£'000

Capital redemption reserve

£'000

Other

capital reserves

£'000

 

Revenue reserve £'000

 

 

Total

£'000

 

 

 

 

 

 

 

At 1 July 2019

94,709 

613,711 

2,707 

826,337 

58,259 

1,595,723 

Net return on ordinary activities after taxation

61,066 

33,073 

94,139 

Issue of 18,185,000 new ordinary shares

71,779 

76,325 

Fourth interim dividend (4.75p per share) for year ended 30 June 2019 paid

31 August 2019

(18,012)

(18,012)

First interim dividend (4.75p per share) for year ending 30 June 2020 paid 

29 November 2019

(18,341)

(18,341)

 

 

 

 

 

 

 

At 31 December 2019

99,255 

685,490 

2,707 

887,403 

54,979 

1,729,834 

 

 

 

 

 

 

 

Half-year ended 31 December 2018 (unaudited)

Called-up share capital

£'000

Share premium account

£'000

Capital redemption reserve

£'000

Other

capital reserves

£'000

 

Revenue reserve £'000

 

 

Total

£'000

 

 

 

 

 

 

 

At 1 July 2018

520,701 

2,707 

855,851 

53,135 

1,520,997 

Net (loss)/return on ordinary activities after taxation

(185,168) 

29,307 

(155,861)

Issue of 6,825,000 new ordinary shares

26,007 

27,713 

Fourth interim dividend (4.55p per share) for year ended 30 June 2018 paid

31 August 2018

(16,175) 

(16,175)

First interim dividend (4.55p per share) for year ended 30 June 2019 paid 

30 November 2018

(16,319) 

(16,319)

 

 

 

 

 

 

 

At 31 December 2018

90,309 

546,708 

2,707 

670,683 

49,948 

1,360,355 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended 30 June 2019

(audited)

Called-up share capital

£'000

Share premium account

£'000

Capital redemption reserve

£'000

Other

capital reserves

£'000

 

Revenue reserve £'000

 

 

Total

£'000

 

 

 

 

 

 

 

At 1 July 2018

520,701 

2,707 

855,851 

53,135 

1,520,997 

Net (loss)/return on ordinary activities after taxation

(29,514)

72,023 

42,509 

Issue of 24,425,000 new ordinary shares

93,010 

99,116 

Fourth interim dividend (4.55p per share) for year ended 30 June 2018 paid 31 August 2018

(16,174)

(16,174)

First interim dividend (4.55p per share) for year ended 30 June 2019 paid 30 November 2018

(16,319)

(16,319)

Second interim dividend (4.55p per share) for year ended 30 June 2019 paid 28 February 2019

(16,633)

(16,633)

Third interim dividend (4.75p per share) for year ended 30 June 2019 paid 31 May 2019

(17,773)

(17,773)

 

 

 

 

 

 

 

At 30 June 2019

94,709 

613,711 

2,707 

826,337

58,259 

1,595,723 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these financial statements.

  

 

STATEMENT OF FINANCIAL POSITION

 

 

(Unaudited)

31 December

2019

£'000

(Unaudited)

31 December

2018

£'000

(Audited)

30 June

2019

£'000

 

 

 

 

Investments held at fair value through

profit or loss (note 5)

 

 

 

Listed at market value in the United Kingdom

1,684,974  

1,375,669 

1,556,025 

Listed at market value overseas

177,648  

146,760 

165,525 

Investment in subsidiary undertakings

347  

347 

347 

 

 

 

 

 

1,862,969  

1,522,776 

1,721,897 

 

 

 

 

Current assets

 

 

 

Debtors

7,288  

6,391 

14,932 

Cash at bank

-  

 

 

 

 

 

7,288  

6,391 

14,932 

 

 

 

 

Creditors: amounts falling due within one year

(24,695)

(43,087)

(25,350)

 

 

 

 

Net current liabilities

(17,407)

(36,696)

(10,418)

 

 

 

 

Total assets less current liabilities

1,845,562 

1,486,080 

1,711,479 

 

 

 

 

Creditors: amounts falling due after more

than one year

(115,728)

(125,725)

(115,756)

 

 

 

 

Net assets

1,729,834 

1,360,355 

1,595,723 

 

 

 

 

Capital and reserves

 

 

 

Called-up share capital (note 3)

99,255 

90,309 

94,709 

Share premium account

685,490 

546,708 

613,711 

Capital redemption reserve

2,707 

2,707 

2,707 

Other capital reserves

887,403 

670,683 

826,337 

Revenue reserve

54,979 

49,948 

58,259 

 

 

 

 

Equity shareholders' funds

1,729,834 

1,360,355 

1,595,723 

 

 

 

 

 

 

 

 

Net asset value per ordinary share - basic and diluted (note 4)

435.7p 

376.6p 

421.2p 

 

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

NOTES

 

1.

Accounting Policy - Basis of Preparation

 

The condensed set of financial statements has been prepared in accordance with FRS 104, Interim Financial Reporting, FRS 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland and the Statement of Recommended Practice for "Financial Statements of Investment Trust Companies and Venture Capital Trusts", issued in October 2019.

 

For the period under review, the Company's accounting policies have not varied from those described in the Annual Report for the year ended 30 June 2019. These financial statements have been neither audited nor reviewed by the Company's auditors.

 

As an investment fund, the Company has the option, which it has taken, not to present a cash flow statement. A cash flow statement is not required when an investment fund meets all the following conditions: substantially all of the entity's investments are highly liquid and are carried at market value; and where a statement of changes in equity is provided.

 

2.

Return per Ordinary Share

 

 

 

 

 

 

 

(Unaudited)

Half-year ended

31 December 2019

£'000

 

(Unaudited)

Half-year ended

31 December 2018

£'000

 

(Audited)

Year ended

30 June

2019

 £'000

 

The return per ordinary share is based on the following figures:

 

 

 

 

 

 

Revenue return

33,073

 

29,307 

 

72,023 

 

Capital return/(loss)

61,066

 

(185,168)

 

(29,514)

 

 

 

 

 

 

 

 

Total

94,139

 

(155,861)

 

42,509 

 

 

 

 

 

 

 

 

Weighted average number of ordinary shares in issue for each period

384,976,853

 

357,545,059 

 

364,414,801 

 

 

 

 

 

 

 

 

Revenue return per ordinary share

8.59p

 

8.20p 

 

19.76p 

 

Capital return/(loss) per ordinary share

15.86p

 

(51.79p)

 

(8.10p)

 

 

 

 

 

 

 

 

Total return/(loss) per ordinary share

24.45p

 

(43.59p)

 

11.66p 

 

 

 

 

 

 

 

 

The Company does not have any dilutive securities, therefore, the basic and diluted returns per share are the same.

 

3.

Share Capital

 

During the half-year ended 31 December 2019, 18,185,000 ordinary shares were issued for total proceeds of £76,325,000 (half-year ended 31 December 2018: 6,825,000 ordinary shares issued for total proceeds of £27,713,000; year ended 30 June 2019: 24,425,000 ordinary shares issued for total proceeds of £99,116,000). The number of ordinary shares in issue at 31 December 2019 was 397,019,868.

 

4.

Net Asset Value per Ordinary Share

 

The net asset value per ordinary share is based on the net assets attributable to the ordinary shares of £1,729,834,000 (31 December 2018: £1,360,355,000; 30 June 2019: £1,595,723,000) and on 397,019,868 ordinary shares (31 December 2018: 361,234,868; 30 June 2019: 378,834,868), being the number of ordinary shares in issue at the period end.

                                                           

5.

Financial Instruments

 

The financial assets and financial liabilities are either carried in the Statement of Financial Position at their fair value or the Statement of Financial Position amount is a reasonable approximation of fair value (debtors and creditors falling due within one year). The debenture stocks, secured notes, preference stocks and preferred ordinary stock are carried in the Statement of Financial Position at par.

                                                                                         

At 31 December 2019, the fair value of the debenture stocks was £42,225,000 (31 December 2018: £44,651,000; 30 June 2019: £43,510,000).

  

The aggregate fair value of the preferred and preference stocks was £2,634,000 (31 December 2018: £2,630,000; 30 June 2019: £2,557,000).

 

As at 31 December 2019, the fair value of the secured notes was estimated to be £99,715,000 (31 December 2018: £92,803,000; 30 June 2019: £98,237,000).

 

The valuations of the debenture stocks are obtained from brokers based on market prices. The valuations of the preferred and preference stock are from the Daily Official List quotations. The valuation of the secured loan notes is calculated using a discount rate which reflects the yield on a UK gilt of similar maturity plus a suitable credit spread.                                                                        

                                                                                   

The debenture stocks, preference stocks and preferred ordinary stock are categorised as level 1 in the fair value hierarchy. The secured notes are categorised as level 3 in the fair value hierarchy.                                                                                                                                                              

The table below sets out fair value measurements of the investments using the FRS 102 fair value hierarchy. Categorisation within the hierarchy has been determined on the basis of the lowest level input that is significant to the fair value measurement of the relevant asset as follows:

 

Level 1: The unadjusted quoted prices in an active market for identical assets or liabilities that the entity can access at the measurement date;                                                                                  

                                                                                   

Level 2: Inputs other than quoted prices included within Level 1 that are observable (i.e., developed using market data) for the asset or liability, either directly or indirectly; and                                                                                                                                

Level 3: Inputs are unobservable (i.e., for which market data is unavailable) for the asset or liability.

 

 

Financial assets at fair value through profit or loss at 31 December 2019

 

 

 

 

Level 1

Level 2

Level 3

Total

 

 

£'000

£'000

£'000

£'000

 

Equity investments

1,862,622

            -  

347

1,862,969

 

Total

1,862,622

            -  

347

1,862,969

 

 

 

 

 

 

 

Financial assets at fair value through profit or loss at 31 December 2018

 

 

Level 1

Level 2

Level 3

Total

 

 

£'000

£'000

£'000

£'000

 

Equity investments

1,522,429

            -  

347

1,522,776

 

Total

1,522,429

            -  

347

1,522,776

 

 

 

 

 

 

 

Financial assets at fair value through profit or loss at 30 June 2019

 

 

Level 1

Level 2

Level 3

Total

 

 

£'000

£'000

£'000

£'000

 

Equity investments

1,721,550

            -  

347

1,721,897

 

Total

1,721,550

            -  

347

1,721,897

 

 

The valuation techniques used by the Company are explained in the accounting policies note 1 in the Company's Annual Report for the year ended 30 June 2019.
                                                                       

6.

Transaction Costs

 

Purchase transaction costs for the half-year ended 31 December 2019 were £598,000 (half-year ended 31 December 2018: £484,000; year ended 30 June 2019: £1,046,000). These comprise mainly stamp duty and commissions. Sale transaction costs for the half-year ended 31 December 2019 were £21,000 (half-year ended 31 December 2018: £20,000; year ended 30 June 2019: £53,000).

                                               

7.

Dividends

 

A first interim dividend of 4.75p per ordinary share was paid on 29 November 2019. The second interim dividend of 4.75p per ordinary share (declared on 19 December 2019) will be paid on 28 February 2020 to shareholders on the register on 24 January 2020. The Company's shares went ex-dividend on 23 January 2020.        

           

8.

Related Party Transactions

 

Other than the relationship between the Company and its Directors, the provision of services by Janus Henderson is the only related party arrangement currently in place. Other than fees payable by the Company in the ordinary course of business and the provision of marketing services, there have been no material transactions with this related party affecting the financial position of the Company during the period under review.

                                               

9.

Going Concern

 

The assets of the Company consist of securities that are readily realisable and, accordingly, the Directors believe that the Company has adequate resources to continue in operational existence for at least twelve months from the date of approval of the financial statements. Having assessed these factors and the principal risks, the Board has determined that it is appropriate for the financial statements to be prepared on a going concern basis.      

                                                           

10.

Comparative Information

 

The financial information contained in this half-year report does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The figures and financial information for the year ended 30 June 2019 are extracted from the latest published accounts and do not constitute the statutory accounts for that year. Those accounts have been delivered to the Registrar of Companies and included the Report of the Independent Auditors, which was unqualified and did not include a statement under either section 498(2) or 498(3) of the Companies Act 2006.

                                                                       

11.

General information

Company Status

 

The City of London Investment Trust plc is UK domiciled investment trust company.

 

 

The SEDOL/ISIN number is GB0001990497. The London Stock Exchange (TIDM) Code is CTY.

 

 

Global Intermediary Identification Number (GIIN) is S55HF7.99999.SL.826.

 

 

Legal Entity Identifier number (LEI) is 213800F3NOTF47H6AO55.

 

 

Company Registration Number

 

UK: 00034871                                        New Zealand: 1215729

 

 

Registered Office

 

201 Bishopsgate, London EC2M 3AE

 

 

Directors and Secretary

 

The Directors of the Company are Philip Remnant CBE (Chairman), Samantha Wren (Audit Committee Chair), Robert Edward (Ted) Holmes, Martin Morgan and Clare Wardle.

                                                        

 

The Corporate Secretary is Henderson Secretarial Services Limited, represented by Sally Porter ACG.

 

 

Website

 

Details of the Company's share price and net asset value, together with general information about the Company, monthly fact sheets and data, copies of announcements, reports and details of general meetings can be found at www.cityinvestmenttrust.com

 

12

Half-Year Report

An abbreviated version of the half-year report, the 'Update', will be posted to shareholders in February 2020. The Update will also be available on the Company's website www.cityinvestmenttrust.com or in hard copy from the Company's registered office.

                     

 

  

 

FORTY LARGEST INVESTMENTS

Company                   

   Market value
31 December 2019

£'000

 

 Company

Market value

31 December 2019

£'000

Royal Dutch Shell

108,074

 

National Grid

30,258

HSBC

69,252

 

Barclays

30,180

Diageo

63,364

 

Land Securities

29,700

Lloyds Banking

59,000

 

Schroders

26,460

British American Tobacco

58,813

 

Compass

25,137

BP

58,714

 

Anglo American

24,628

GlaxoSmithKline

56,928

 

Croda International

22,973

Unilever

50,564

 

SSE

22,441

RELX

48,312

 

Nestlé

22,159

Prudential

43,527

 

Vodafone

21,646

Taylor Wimpey

40,614

 

Merck

18,034

Rio Tinto

39,852

 

Imperial Brands

17,662

BAE Systems

33,888

 

British Land

17,567

Phoenix

32,503

 

Ibstock

17,493

Verizon Communications

32,417

 

Novartis

17,048

BHP

31,676

 

Ferguson

16,461

Reckitt Benckiser

30,645

 

Severn Trent

16,348

Persimmon

30,588

 

Segro

16,150

AstraZeneca

30,428

 

Hiscox

16,112

St James's Place

30,277

 

Coca-Cola

15,886

 

 

These investments total £1,373,779,000 or 73.8% of the portfolio.

 

 

Convertibles and all classes of equity in any one company are treated as one investment.

 

 

             

 

SECTOR EXPOSURE

 

As a percentage of the investment portfolio excluding cash

 

 

%

Financials                              

25.6

Consumer Goods                          

19.6

Consumer Services                       

11.0

Basic Materials

9.1

Oil & Gas                               

9.0

Industrials                             

8.2

Health Care                             

7.8

Telecommunications                      

4.2

Utilities                               

4.1

Technology                              

1.4

Total

100.0

 

 

CLASSIFICATION OF INVESTMENTS BY SECTOR

 

Company

Market value

31 December 2019

£'000

 

Company

Market value

31 December 2019

£'000

 

OIL & GAS PRODUCERS

 

 

Industrial Transportation

 

 

Royal Dutch Shell

108,074

 

Royal Mail

4,526

 

BP

58,714

 

 

4,526

 

 

166,788

 

 

 

 

Total Oil & Gas

166,788

 

Support Services

 

 

 

 

 

Ferguson

16,461

 

BASIC MATERIALS

 

 

Paypoint

6,072

 

Chemicals

 

 

 

22,533

 

Croda International

22,973

 

Total Industrials

151,678

 

Victrex

6,484

 

 

 

 

Johnson Matthey

6,056

 

CONSUMER GOODS

 

 

 

35,513

 

Beverages

 

 

 

 

 

Diageo

63,364

 

Construction & Materials

 

 

Coca-Cola1

15,886

 

Ibstock

17,493

 

Britvic

12,909

 

Marshalls

8,670

 

 

92,159

 

 

26,163

 

 

 

 

 

 

 

Food Producers

 

 

Forestry & Paper

 

 

Nestlé1

22,159

 

Mondi

12,370

 

Tate & Lyle

12,665

 

 

12,370

 

 

34,824

 

 

 

 

 

 

 

Mining

 

 

Household Goods & Home Construction

 

 

Rio Tinto

39,852

 

BHP

31,676

 

Taylor Wimpey

40,614

 

Anglo American

24,628

 

Reckitt Benckiser

30,645

 

 

96,156

 

Persimmon

30,588

 

Total Basic Materials

170,202

 

Berkeley

9,718

 

 

 

 

 

111,565

 

INDUSTRIALS

 

 

 

 

 

Aerospace & Defence

 

 

Personal Goods

 

 

BAE Systems

33,888

 

Unilever

50,564

 

Meggitt

12,671

 

 

50,564

 

Senior

3,631

 

 

 

 

 

50,190

 

Tobacco

 

 

 

 

 

British American Tobacco

58,813

 

Electronic & Electrical Equipment

 

 

Imperial Brands

17,662

 

 

 

 

76,475

 

Halma

10,051

 

Total Consumer Goods

365,587

 

XP Power

6,200

 

 

 

Renishaw

5,087

 

 

 

 

 

21,338

 

HEALTH CARE

 

 

 

 

 

Health Care Equipment & Services           

 

 

General Industrials

 

 

Siemens1

9,398

 

Smith & Nephew

13,595

 

Smiths

8,525

 

 

13,595

 

Swire Pacific1

7,088

 

 

 

 

 

25,011

 

Pharmaceuticals & Biotechnology

 

 

 

 

 

Industrial Engineering

 

 

GlaxoSmithKline

56,928

 

IMI

11,372

AstraZeneca

30,428

 

Spirax-Sarco Engineering

10,846

 

Merck1

18,034

 

Rotork

5,862

 

Novartis1

17,048

 

 

28,080

 

Johnson & Johnson1

10,099

 

 

 

 

 

132,537

 

 

 

 

Total Health Care

146,132

 

 

 

 

 

 

 

 

 

 

 

 

Company

Market value

31 December 2019

£'000

 

Company

Market value

31 December 2019

£'000

 

CONSUMER SERVICES

 

 

Gas, Water & Multiutilities

 

 

Food & Drug Retailers

 

 

National Grid

30,258

 

J. Sainsbury

11,955

 

Severn Trent

16,348

 

Greggs

9,422

 

United Utilities

7,217

 

Wm Morrison

9,091

 

 

53,823

 

 

30,468

 

Total Utilities

76,264

 

 

 

 

 

 

 

General Retailers

 

 

FINANCIALS

 

 

Kingfisher

7,163

 

Banks

 

 

DFS

4,624

 

HSBC

69,252

 

Halfords

2,878

 

Lloyds Banking

59,000

 

Marks & Spencer

2,562

 

Barclays

30,180

 

 

17,227

 

Royal Bank of Scotland

12,616

 

 

 

Nationwide Building Society

 

 

Media

 

 

  10.25% Var Perp CCDS

10,833

 

RELX

48,312

 

181,881

 

ITV

6,251

 

 

 

Daily Mail & General

4,145

 

Financial Services

 

 

 

58,708

 

Schroders

26,460

 

 

 

 

Brewin Dolphin

14,150

 

Travel & Leisure

 

 

M&G

10,437

 

Compass

25,137

 

TP ICAP

7,825

 

Carnival

14,576

 

IG

6,185

 

Whitbread

13,210

 

 

65,057

 

Ten Entertainment

9,433

 

 

 

 

Française des Jeux1

9,084

 

Life Insurance

 

 

Go-Ahead

7,812

 

Prudential

43,527

 

National Express

7,748

 

Phoenix

32,503

 

Young

4,927

 

St James's Place

30,277

 

Cineworld

4,628

 

Aviva

5,443

 

William Hill

2,381

 

 

111,750

 

 

98,936

 

 

 

 

Total Consumer Services

205,339

 

Non Life Insurance

 

 

 

 

 

Hiscox

16,112

 

TELECOMMUNICATIONS

 

 

Direct Line Insurance

13,265

 

Fixed Line

Telecommunications

 

 

Munich Re1

10,276

 

 

 

Sabre Insurance

9,338

 

Verizon Communications1

32,417

 

 

48,991

 

BT

12,028

 

 

 

 

44,445

 

 

 

 

 

 

 

Real Estate Investment Trusts

 

 

Mobile Telecommunications

 

 

Land Securities

29,700

 

Vodafone

21,646

 

British Land

17,567

 

Orange1

7,782

Segro

16,150

 

Deutsche Telekom1

4,335

 

Hammerson

5,557

 

 

33,763

 

 

68,974

 

Total Telecommunications

78,208

 

Total Financials

476,653

 

 

 

 

 

 

 

UTILITIES

 

 

TECHNOLOGY

 

 

Electricity

 

 

Software & Computer Services

 

 

SSE

22,441

 

 

22,441

 

Microsoft1

14,042

 

 

 

 

Sage

11,729

 

 

 

 

 

25,771

 

 

 

 

Total Technology

25,771

 

 

 

 

TOTAL INVESTMENTS

1,862,622

 

 

 

 

 

 

 

 

 

 

 

 

 

                   

1 Overseas listed

 

 

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
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