Annual Financial Report
20/09/2023 07:00
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RNS Number : 9837M City of London Investment Trust PLC 20 September 2023
Legal Entity Identifier: 213800F3NOTF47H6AO55
THE CITY OF LONDON INVESTMENT TRUST PLC
Annual financial results for the year ended 30 June 2023
This announcement contains regulated information
CHAIRMAN'S COMMENT
"City of London's total return of 4.5%, whilst underperforming the FTSE
All-Share Index, should be considered in the light of its longer-term
outperformance and its consistent 57-year record of annual dividend
increases."
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 fully recognises the importance of dividend income to shareholders.
PERFORMANCE AT 30 JUNE
2023 2022
Total Return Performance:
Net asset value ("NAV") per ordinary share(1) 4.5% 7.5%
Share price(2) 4.1% 7.7%
FTSE All-Share Index (Benchmark) 7.9% 1.6%
AIC UK Equity Income sector(3) 8.1% -1.5%
IA UK Equity Income OEIC sector 4.0% -0.5%
2023 2022
NAV per ordinary share 385.2p 390.9p
NAV per ordinary share (debt at fair value) 391.2p 393.5p
Share price 397.0p 400.5p
Premium 3.1% 2.5%
Premium (debt at fair value) 1.5% 1.8%
Gearing at year end 6.2% 7.1%
Revenue earnings per share 20.1p 20.7p
Dividends per share 20.1p 19.6p
Ongoing charge for the year(4) 0.37% 0.37%
Revenue reserve per share 8.9p 9.5p
1 Net asset value per ordinary share total return with debt at fair value
(including dividends reinvested)
2 Share price total return using mid-market closing price
3 AIC UK Equity Income sector size weighted average NAV total return
(shareholders' funds)
4 Calculated using the methodology prescribed by the Association of Investment
Companies ("AIC")
Sources: Morningstar Direct, Janus Henderson, Refinitiv Datastream
CHAIRMAN'S STATEMENT
City of London produced a net asset value ("NAV") total return of 4.5%, which
compares with a total return of 7.9% for the FTSE All-Share Index. Although
this most recent underperformance is disappointing, City of London's portfolio
is managed for the long term and its NAV total return has exceeded the FTSE
All-Share Index over 3, 5 and 10 years. The dividend was increased for the
57th year and covered by earnings per share.
The Markets
Financial markets throughout the year have remained challenging for investors,
with the war in Ukraine and tensions in Asia causing fluctuations in the cost
of raw materials and energy. The fight against inflation took centre stage in
developed economies, with the Federal Reserve, the European Central Bank and
the Bank of England all increasing interest rates (the latter by a factor of 4
times from 1.25% to 5.0% during the 12 months). UK inflation was more
persistent and elevated than inflation in the US and Continental Europe, but
the UK economy narrowly avoided a recession.
The UK stock market produced a total return of 7.9%, as measured by the FTSE
All-Share Index. Large companies outperformed, with the FTSE 100 Index
(comprising the largest UK listed companies) returning 9.2% helped by its
heavy weighting in oil companies and banks. Oil company shares outperformed
despite the oil price moving down over the 12 months. Banks benefited from the
positive effect of rising interest rates on their net interest margins while
impairments remained at a low level. The FTSE 250 Index of medium-sized
companies and the FTSE SmallCap Index underperformed, with respective returns
of 1.9% and 1.2%, weighed down by their greater bias towards UK domestic
cyclicals.
Performance
Earnings and Dividends
City of London's revenue earnings per share declined by 2.8% to 20.14p. This
compares with an increase in revenue earnings per share of 21.2% in the
previous year, when we benefited from large dividends from our investments in
mining companies. Special dividends, accounted as income, declined by £3.8
million to £2.5 million, reflecting the non-recurrence of these special
dividends from Anglo American, BHP and Rio Tinto. Elsewhere in the portfolio,
there was significant dividend growth from oil companies and banks, continuing
the recovery from the dividend cuts and suspensions during the pandemic.
Although our dividend increase was considerably lower than inflation over the
12 months, City of London has increased its dividend by 40.6% over the last 10
years compared with a cumulative increase in UK CPI inflation of 33.5%. The
Board fully understands the importance of growing the dividend in real terms
through the economic cycle.
Expenses remained under tight control, with our ongoing charge of 0.37% being
very competitive when compared with other actively managed funds. Our revenue
reserve increased by £0.7 million to £44.3 million, but revenue reserves per
share declined by 0.6p to 8.9p due to the increase in the number of shares in
issue. The Board considers that maintaining a revenue reserve surplus is
important, particularly given the varied timing of dividend receipts
throughout the year from investee companies and the experience during the
pandemic when, in response to sudden dividend cuts and suspensions, it was
necessary to draw on revenue reserves to cover dividends paid to shareholders.
It should be noted that the capital reserve arising from capital gains on
investments sold, which could help fund dividend payments, rose by £18.0
million to £344.6 million.
NAV Total Return
City of London's NAV total return of 4.5% was 3.4 percentage points behind the
FTSE All-Share Index. Gearing contributed positively by 1.1 percentage points
due to the decline in fair value of our secured debt. The £30 million 2.67%
secured notes maturing in 2046 and the £50 million 2.94% secured notes
maturing in 2049 provide low-cost debt financing over the next quarter of a
century for investment in equities.
Stock selection detracted by 4.3 percentage points. The biggest stock
detractor was Direct Line Insurance followed by Persimmon, the housebuilder.
At a sector level, our underweight position in travel & leisure was the
biggest detractor and not holding Flutter Entertainment, the betting company,
the third biggest stock detractor. The stake in Verizon Communications, the US
telecommunications provider, was also a notable stock detractor. On a more
positive note, 3i, the investor in private companies, was the biggest stock
contributor, followed by Munich Re, the reinsurer.
City of London's NAV total return was behind the FTSE All-Share Index over 1
year but, as mentioned in the introduction, ahead over 3, 5 and 10 years.
Against the AIC UK Equity Income sector average, City of London was behind
over 1 and 10 years but ahead over 3 and 5 years. Against the IA UK Equity
Income OEIC sector average, City of London was ahead over 1, 3, 5 and 10
years.
Share Issues
City of London's ordinary shares have again been in strong demand during the
year and continued to trade at a premium. 38 million shares were issued at a
premium to NAV for proceeds of £153.3 million. Issuing shares at a premium
enhances NAV and spreads costs across a larger asset base. Over the past ten
years, City of London has issued 240 million shares at a premium to NAV,
increasing our share capital by 93%.
Environmental, Social and Governance
The Fund Manager and Deputy Fund Manager give careful consideration to
environmental, social and governance ("ESG") related risks and opportunities
when selecting stocks for the portfolio. An analysis by MSCI, a company widely
used in ESG analytics, shows that City of London's portfolio continues to rate
slightly better for ESG risks compared with the FTSE All-Share Index. ESG
matters are reported on at each Board meeting, including how shareholdings
have been voted on resolutions at investee company meetings. Please see the
Annual Report for more details of the analysis by MSCI and a description of
how ESG considerations feature in the investment decision making process.
Annual General Meeting
The 2023 Annual General Meeting ("AGM") will be held at the offices of Janus
Henderson, 201 Bishopsgate, London EC2M 3AE on Tuesday, 31 October 2023 at
2.30pm. The meeting will include a presentation by our Fund Manager, Job
Curtis, and Deputy Fund Manager, David Smith. Any shareholder who is unable to
travel is encouraged to join virtually by Zoom, the conference software
provider. There will, as usual, be live voting for those physically present at
the AGM but we cannot offer live voting via Zoom because of technical
restrictions. We therefore request all shareholders, and particularly those
who cannot attend physically, to submit their votes by proxy to ensure their
vote counts at the AGM.
Outlook
Over two-thirds of revenues earned by the companies in City of London's
portfolio comes from overseas. Whilst this diversification is helpful given
the relative economic weakness of the UK, prospects for the global economy
remain very uncertain. The war in Ukraine has no end in sight, there is
continuing tension with China, the outcome of the increasingly fractious US
election campaign remains in doubt and recent climatic events across the world
have demonstrated the severe risks of climate change.
A further uncertainty arises from the coordinated actions by central banks to
use the levers of monetary policy, and most directly higher interest rates, to
curb inflation. The implications of this will take some time to show their
effect, but it is already clear that a return to the cheap lending rates that
have prevailed for the last 15 years will not recur. Households will
experience a significant increase in interest costs as their fixed rate
mortgages are rolled over, as will businesses when their existing debt
matures. Over time, although the rate of inflation should continue to fall as
increases in energy prices drop out of the annual calculation, this will
affect the behaviour of consumers, with consequences for corporate profits and
investment.
UK listed shares in general continue to trade at lower valuations relative to
comparable businesses overseas. The reasons for this include continuing
investor scepticism concerning the benefits of Brexit, the preponderance of
"value" stocks (such as banks and energy companies) relative to "growth"
stocks (such as technology including AI), the lack of domestic support because
many UK investment institutions favour fixed interest in their asset
allocations and the prospect of a more interventionist Labour government.
These lower comparable valuations, however, offer potential rewards for City
of London as both private equity firms and overseas businesses take advantage
of opportunities to use the UK's open markets to secure attractive
acquisitions. It remains the case that UK equities offer compelling dividend
yields relative to the main alternative equity markets and, on this basis, UK
investors can reasonably take the view that they are being "paid to hold on"
until valuations improve.
City of London has grown its dividend for 57 years during periods of high and
low inflation and, at times, political instability in the UK and overseas. Our
portfolio has, at its core, good quality and cash generative companies that
are well placed to deliver reliable and competitive returns.
Sir Laurie Magnus CBE
Chairman
19 September 2023
FUND MANAGER'S REPORT
Investment Background
The UK equity market, as measured by the FTSE All-Share Index, traded in a
relatively narrow range during the 12-month period and produced a total return
of 7.9%. Economic growth was better than some had feared and the economy
avoided recession. UK CPI inflation reached a 40-year high of 11.1% in October
2022. The monetary and fiscal stimulus and supply chain disruptions during the
pandemic followed by shocks to oil and other commodity prices from the Russian
invasion of Ukraine were the initial causes of inflation. The tight labour
market and accelerating wage increases kept inflation at elevated levels. The
Bank of England increased its base rate eight times, from 1.25% to 5.0%. In
the US, the Federal Reserve also increased interest rates in response to
inflation as did the European Central Bank.
From June 2022, the oil price declined. Despite the Ukraine war, Russian
supply proved more resilient than expected to countries such as China and
India, who took advantage of discounted Russian oil. Concerns about shortages
gave way to worries over demand weakening as global economic growth slowed.
Europe was able to substitute Russian natural gas with imports of liquified
natural gas from the US and the Middle East.
Sterling fell to an exchange rate of 1.07 against the US dollar during the
short-lived Premiership of Liz Truss, when unfunded tax cuts were proposed. By
the end of June 2023, sterling had recovered to 1.27, achieving a 5% gain
against the US dollar over the 12 months. Against the euro, sterling made a
small gain of 0.9%.
Against a backdrop of inflation and the Bank of England raising the base rate
to 5%, gilt yields also rose. By the end of June, the 10-year gilt yield was
4.4%, around the same as the peak reached during the Truss Premiership, and
above the FTSE All-Share dividend yield of 3.7%. In recent years, during the
period of exceptionally low interest rates, the Company was able to fix cheap
rates of borrowing for long periods through issuing the following secured
notes: £35 million 4.53% 2029, £30 million 2.67% 2046 and £50 million 2.94%
2049. These borrowings remained fully invested in equities throughout the year
but the HSBC facility, which is priced off the base rate, was only modestly
drawn down. Gearing, which was 7.1% at the start of the 12 months, declined
slightly to 6.2% at the end of June 2023.
Performance Review
Estimated performance attribution (relative to FTSE All-Share Index total
return)
2023 2022
% %
Stock selection -4.32 +4.69
Gearing +1.13 +1.53
Expenses -0.37 -0.37
Share issues +0.18 +0.04
Total -3.38 +5.89
Source: Janus Henderson
The Company produced a net asset value total return of 4.51%, which was 3.38
percentage points behind the FTSE All-Share total return of 7.89%. Gearing
contributed to performance by 1.13 percentage points as the fair value of our
secured notes declined. Stock selection detracted by 4.32 percentage points.
The biggest stock detractor was Direct Line Insurance, which suffered from
premium income not keeping pace with the rising cost of claims. In contrast,
Munich Re, the reinsurer, was the second biggest stock contributor, benefiting
from strong rate increases for reinsurance.
Persimmon, the house builder, was the second biggest stock detractor, as its
share price reacted to the slowdown in the UK housing market. In the building
materials, merchants and equipment rental sectors, not holding CRH and Ashtead
were notable detractors, partly compensated by our stakes in Holcim and
Ferguson, which were among the best contributors.
Other notable stock detractors were not holding, in the travel & leisure
sector, Flutter Entertainment, the betting company, and Compass, the contract
caterer. In contrast, 3i, the investor in private companies, was the biggest
stock contributor, driven by outstanding growth from its investment in Action,
the European discount retailer.
The underperformance of 3.38 percentage points in 2023 contrasted with the
outperformance of 5.89 percentage points in 2022.
It was a relatively good year for large companies, with the FTSE 100 Index of
the largest companies returning 9.2% compared with 1.9% for the FTSE 250 Index
of medium-sized companies and 1.2% for the FTSE SmallCap Index. The FTSE 100
Index was helped by the outperformance of the banks and oil sectors, where the
Company was underweight.
Lower yielding shares also had a good year, as the chart in the Annual Report
shows. It compares the performance of the FTSE 350 Higher Yield Index (the
higher dividend yielding half of the largest 350 shares listed in the UK) with
the FTSE 350 Lower Yield Index (the lower dividend yielding half of the
largest 350 shares listed in the UK). Telecommunications service providers was
a notably underperforming higher yielding sector. Although the portfolio
avoided the underperformance of BT, Verizon Communications of the US was a
notable stock detractor.
Distribution of the portfolio as at 30 June 2023
% of the portfolio
Large UK-listed companies (constituents of the FTSE 100 Index) 75%
Medium-sized and small UK-listed companies 10%
Overseas-listed companies 15%
Source: Refinitiv Datastream, 30 June 2023
Over the 12 months, the proportion of the portfolio invested in companies with
their prime listing overseas declined from 17% to 15%, with profits taken in
Microsoft (of the US) and BHP (of Australia), after exceptional long-term
performance and with the proceeds reinvested in shares that appeared to offer
better value in the UK equity market. The proportion invested in large,
UK-listed companies (included in the FTSE 100 Index) rose by four percentage
points to 75%. The proportion invested in medium-sized and small companies
fell by two percentage points to 10%, partly reflecting the takeover of Brewin
Dolphin and the promotion to the FTSE 100 of Beazley and IMI.
Portfolio Changes
Six new holdings were bought over the 12 months. In the mining sector,
Glencore was purchased, financed by the sale of BHP. Glencore is well placed
in metals which are needed for the transition to cleaner energy, such as
copper, which accounts for 37% of profits. It is planning to run down its coal
assets for cash with the aim of the group to be net carbon zero by 2050. It
also has a world leading commodity trading business, accounting for 20% of
profits. On the other hand, 55% of BHP's profits comes from iron ore. The iron
ore price ended the 12-month period at a similar level to where it had
started.
The iron ore price is heavily dependent for demand from Chinese steelmakers,
where the outlook is uncertain. BHP had also rerated against the UK-listed
mining companies after its move from being 50% listed in London to 100% in
Australia. In addition to Glencore, Rio Tinto and Anglo American continue to
be held in the portfolio.
Three new holdings of UK-listed industrial companies were purchased. Although
having cyclical elements to their businesses, the three companies appeared
modestly rated relative to their prospects and leadership positions. DS Smith
is a provider of corrugated packaging, which is supported by recycling and
paper making operations. Its packaging is largely made from recycled materials
and is used for fast moving consumer goods and industrial products. It has a
strong track record of innovation in packaging. Its sales are predominantly in
Europe (including the UK) where it is the second largest corrugated packaging
producer.
Morgan Advanced Materials, where a new stake was also bought, is a global
leader in making ceramic and other materials that need precision in highly
challenging operating environments, such as extreme temperatures, for a range
of industries. Its business is backed by strong technology and is well spread
geographically with 40% of sales in North America, 30% Asia Pacific and 28%
Europe (including UK). The third industrial stock bought was Vesuvius. Its
business is split into two divisions: firstly, products and systems which
regulate and protect the flow of molten steel during steel manufacturing; and
secondly, consumable products for the foundry casting process. Vesuvius is the
global leader in these businesses with revenues split 31% Americas, 39% EMEA
(Europe, the Middle East and Africa) and 30% Asia Pacific.
Financial conditions were supportive for the banks over the 12 months with
rising interest rates helpful for the net interest margins they earn, the
difference between the rate at which they pay depositors and charge borrowers.
A new holding was bought in NatWest on a discount to its tangible book value
despite its guidance of 14-16% return on tangible equity for 2023. Overall,
banks delivered strong dividend growth over the year and additions were made
to our stakes in HSBC, where profits predominantly come from Asia Pacific, and
Lloyds Banking. The position in Barclays was maintained.
A new holding was bought in Round Hill Music Royalties Fund ("RHM"), an
investment company, which owns 51 catalogues with some 120,000 songs. 60% of
RHM's income comes from publishing rights, which refers to the actual musical
composition i.e. the notes, melodies and lyrics. 31% of income comes from
music rights, which refers to the sound recording of the written song or piece
of music. RHM is a beneficiary of the growth of streaming through platforms,
such as Spotify. RHM has an "evergreen" portfolio with 71% of its songs
pre-2000. RHM was purchased at a deep discount to its net asset value.
Disposals were made of the holdings in two companies that have been very
successful investments but where share price valuations seemed expensive
relative to prospects and other opportunities. Microsoft, which entered the
portfolio in 2011, has benefited in recent years from its leading position in
cloud computing. During 2023, investors became very excited about its
prospects in artificial intelligence leading to a further rerating of its
shares. At the time of the final sale of the portfolio's holding in Microsoft,
its market capitalisation was almost equal to all of the stocks in the FTSE
100 Index combined.
Chemical company, Croda, had been held in the portfolio for over two decades,
during which time its share price rating had been transformed from a high to
low dividend yield as it delivered consistent growth from products made from
natural oils. However, it is not immune from cyclical pressures and had to
downgrade profit expectations in the first half of 2023. The holding was sold
given the high share price valuation. Also in the chemical sector, Synthomer
was sold after a profits warning and the suspension of its dividend.
Private client wealth manager, Brewin Dolphin, was sold after its takeover by
Royal Bank of Canada. Part of the proceeds were invested in additions to the
stake in Rathbones, another leading private client wealth manager, who
subsequently announced a merger with Investec Wealth & Investment. The
holding in the non-voting shares of Schroders, the asset manager, was
enfranchised on attractive terms, converting into voting shares.
Portfolio Outlook
Two oil and gas companies are in the top ten investments: Shell, the largest
investment, and BP, ninth largest. In addition, TotalEnergies and Woodside
Energy are also held in the portfolio for a total oil and gas sector exposure
of 8.7% compared with 10.7% for the FTSE All-Share Index. The companies owned
have a relatively low cost of production, providing some security for their
dividends. Oil and gas currently play a crucial role in the global economy and
although the transition to a clean energy future will continue, our investee
companies are preparing for it with significant capital investment being spent
on the development of renewable and low carbon energy sources.
Consumer staples companies, which make and sell everyday products, constitute
19.2% of the portfolio and include in the top ten investments: Unilever
(fourth largest), British American Tobacco (fifth largest), Diageo (seventh
largest) and Imperial Brands (10th largest). These companies form a sound core
to the portfolio as their dividends are relatively dependable given consistent
profitability and the global spread of their operations. Unilever has a
significant presence in both developed and emerging markets with its beauty,
personal care, food and homecare products. British American Tobacco ("BAT")
and Imperial Brands are strong cash generators and good dividend payers. Of
the two companies, BAT is more advanced in pivoting its operations towards
less harmful nicotine products than cigarettes. Diageo is the world's largest
spirits company (outside China) and the largest in the US, as well as owning
Guinness beer. Its leading spirits brands include Johnnie Walker (Scotch
whisky), Tanqueray (gin) and Don Julio (tequila).
HSBC is the third largest investment in the portfolio and the largest bank
shareholding. The next largest bank holding is Lloyds Banking, which is
twentieth. 8.1% of the portfolio is held in the banks sector, which compares
with the FTSE All-Share weighting of 9.4%. Overall, the profitability of banks
should continue to benefit from the higher level of interest rates and its
effect on their net interest margins. Share price valuations for the banks are
attractive compared with consensus expectations of their profitability. But
banks always remain vulnerable to economic shocks although their capital
ratios are much stronger than they were before the global financial crisis of
2007 to 2009.
AstraZeneca is the eighth largest investment in the portfolio and the largest
pharmaceutical sector holding, but the position is underweight relative to its
FTSE All-Share weighting. AstraZeneca's share price has been a strong
performer in recent years, reflecting its success in discovering new
medicines, especially in the immunotherapy area of cancer. Unusually for a UK
listed company, it is relatively highly rated compared with overseas listed
peers. 8.6% of the portfolio is invested in healthcare, which is a defensive
area of the economy, with spending well protected given its importance to
individuals and usually backed by government spending or private insurance.
The overseas listed pharmaceutical stocks held in the portfolio (Johnson &
Johnson, Merck, Novartis and Sanofi) have produced better dividend growth than
the UK listed holdings (AstraZeneca and GlaxoSmithKline).
The outlook for the portfolio's second largest holding, BAE Systems, remains
positive. Defence spending has moved on from the post-Cold War "peace
dividend" period to an era when many countries want to spend more on defence
to give protection against external threats. In addition to its core markets
in the US and UK, BAE has significant opportunities in many other countries
and areas, such as Australia, Japan, Eastern Europe and the Middle East. RELX,
the sixth largest holding in the portfolio, continues to produce consistent
growth from providing essential information and analytics for businesses,
professionals and scientists. In addition, it is benefiting from the recovery
of its business exhibitions division.
There are significant investments in life assurers Phoenix (14th largest
investment) and Legal & General (18th largest) and fund manager and life
assurer M&G (15th largest). These companies offer, in our view, highly
attractive dividend yields and should have opportunities for new business
growth in bulk annuities given the levels of interest rates and bond yields.
National Grid and SSE, which are respectively the 16th and 17th largest
investments in the portfolio, will grow their asset bases significantly given
the global economy's need to decarbonise and generate more electricity from
renewable sources going forward. Both companies own electricity transmission
and distribution networks and SSE is the UK's leading generator of renewable
energy, through wind and hydro.
Revenue exposure
% of the portfolio
United Kingdom 31
North America 24
Europe ex UK 16
Emerging Markets (Other) 12
Emerging Markets (Asia) 11
Developed Markets (Asia/Pacific) 3
Japan 3
Source: Refinitiv Datastream, 30 June 2023
The portfolio remains well diversified with a bias towards large,
international companies and shares with above average dividend yield. 69% of
investee companies' revenues comes from overseas, which is slightly up from a
year ago when it was 67%. The aim is to be invested in those companies that
can support their dividends through profits and cash generation and invest
enough for growth. The quality of the companies in the portfolio, some leading
global businesses and others with strong market positions in the UK, gives
confidence for the future.
Job Curtis
Fund Manager
David Smith
Deputy Fund Manager
19 September 2023
FORTY LARGEST INVESTMENTS AS AT 30 JUNE 2023
The 40 largest investments, representing 78.22% of the portfolio, are listed
below.
Market value Portfolio
Position Company Sector £'000 %
1 Shell Oil, Gas and Coal 78,731 3.87
2 BAE Systems Aerospace and Defence 71,843 3.53
3 HSBC Banks 69,941 3.44
4 Unilever Personal Care, Drug and Grocery Stores 68,019 3.34
5 British American Tobacco Tobacco 67,795 3.33
6 RELX Media 66,830 3.28
7 Diageo Beverages 66,219 3.26
8 AstraZeneca Pharmaceuticals and Biotechnology 60,327 2.97
9 BP Oil, Gas and Coal 57,752 2.84
10 Imperial Brands Tobacco 49,967 2.46
Top 10 657,424 32.32
11 3i Investment Banking and Brokerage Services 49,623 2.44
12 Tesco Personal Care, Drug and Grocery Stores 49,183 2.42
13 Rio Tinto Industrial Metals and Mining 46,360 2.28
14 Phoenix Life Insurance 46,001 2.26
15 M&G Investment Banking and Brokerage Services 45,936 2.25
16 National Grid Gas, Water and Multi-utilities 45,552 2.24
17 SSE Electricity 44,552 2.19
18 Legal & General Life Insurance 38,624 1.90
19 St. James's Place Investment Banking and Brokerage Services 38,062 1.87
20 Lloyds Banking Banks 36,616 1.80
Top 20 1,097,933 53.97
21 Glencore Industrial Metals and Mining 35,560 1.75
22 Schroders Investment Banking and Brokerage Services 32,353 1.59
23 GlaxoSmithKline Pharmaceuticals and Biotechnology 31,831 1.56
24 Reckitt Benckiser Personal Care, Drug and Grocery Stores 29,560 1.45
25 Nestlé Food Producers 28,375 1.39
26 IG Investment Banking and Brokerage Services 28,007 1.38
27 TotalEnergies Oil, Gas and Coal 27,058 1.33
28 Severn Trent Gas, Water and Multi-utilities 26,943 1.32
29 Land Securities Real Estate Investment Trusts 26,547 1.30
30 NatWest Banks 25,755 1.27
Top 30 1,389,922 68.31
31 Merck Pharmaceuticals and Biotechnology 24,493 1.20
32 Barclays Banks 24,157 1.19
33 Anglo American Industrial Metals and Mining 23,112 1.14
34 Munich Re Non-life Insurance 21,230 1.04
35 Novartis Pharmaceuticals and Biotechnology 20,808 1.02
36 Holcim Construction and Materials 19,312 0.95
37 Swire Pacific General Industrials 18,067 0.89
38 Ferguson Industrial Support Services 17,994 0.88
39 Rathbones Investment Banking and Brokerage Services 16,740 0.82
40 Sage Software and Computer Services 15,814 0.78
Top 40 1,591,649 78.22
Convertibles and all classes of equity in any one company are treated as one
investment.
PRINCIPAL RISKS
The Board, with the assistance of the Manager, has carried out a robust
assessment of the principal risks and uncertainties facing the Company,
including those that would threaten its business model, future performance,
solvency or liquidity and reputation.
The Board regularly considers the principal risks facing the Company and has
drawn up a register of these risks. The Board has also put in place a
schedule of investment limits and restrictions, appropriate to the Company's
investment objective and policy. The principal risks which have been
identified and the steps taken by the Board to mitigate these are set out in
the table below. The principal financial risks are detailed in note 16 to the
financial statements in the Annual Report. Details of how the Board monitors
the services provided by Janus Henderson and its other suppliers, and the key
elements designed to provide effective internal control, are explained further
in the internal controls section of the Corporate Governance Report in the
Annual Report.
Principal risks Trend Mitigating measure
Geopolitical ↑ The Fund Managers keep the global political and economic picture under review
as part of the investment process.
Heightened political tensions in and among a number of countries around the
world have potential impacts, including increasing market volatility, risks to
cyber security and on the supply of commodities, including oil and gas, and
manufacturing components.
Global pandemics ↓ The Fund Managers maintain close oversight of the Company's portfolio, and in
particular the dividend strategies of investee companies. Regular stress
The impact that a global pandemic or some future major health crisis could testing of the revenue account under different scenarios for dividends is
have on the Company's investments and its direct and indirect effects, carried out.
including the effect on the global economy.
The Board also maintains close oversight of the third-party service providers
which assist in the administration of the Company.
Portfolio and market price ↔ The Board reviews the portfolio at the seven Board meetings held each year and
receives regular reports from the Company's brokers. A detailed liquidity
Although the Company invests almost entirely in securities that are listed on report is considered on a regular basis.
recognised markets, share prices may move rapidly. The companies in which
investments are made may operate unsuccessfully, or fail entirely. A fall in
the market value of the Company's portfolio would have an adverse effect on
equity shareholders' funds. The Fund Managers closely monitor the portfolio between meetings and mitigate
this risk through diversification of investments. The Fund Managers
periodically present the Company's investment strategy in respect of current
market conditions. Performance relative to the FTSE All-Share Index, other UK
The wider consequences of Brexit on employment and regulation together with equity income trusts and IA UK Equity Income OEICs is also monitored.
resultant, adverse trade negotiations may impact the Company's investments.
The majority of the Company's investments are multi-national companies with
operations in local markets.
Dividend income ↔ The Board reviews income forecasts at each meeting. The Company has revenue
reserves of £44.3 million (before payment of the fourth interim dividend) and
A reduction in dividend income could adversely affect the Company's dividend distributable capital reserves of £344.6 million.
record.
Investment activity, gearing and performance ↔ At each meeting, the Board reviews investment performance, the level of
gearing, the level of premium/discount, income forecasts and a schedule of
An inappropriate investment strategy (for example, in terms of asset expenses. It also has an annual meeting focused on strategy at which these
allocation or the level of gearing) may result in underperformance against the matters are considered in more depth.
Company's benchmark.
Tax and regulatory ↔ The Manager provides its services, inter alia, through suitably qualified
professionals and the Board receives internal control reports produced by the
Changes in the tax and regulatory environment could adversely affect the Manager on a quarterly basis, which confirm legal and regulatory compliance.
Company's financial performance, including the return on equity. The Fund Managers also consider tax and regulatory change in their monitoring
of the Company's underlying investments.
A breach of Section 1158/9 of the Corporation Tax Act 2010 as amended could
lead to a loss of investment trust status, resulting in capital gains realised
within the portfolio being subject to corporation tax. A breach of the Listing
Rules could result in suspension of the Company's shares, while a breach of
the Companies Act 2006 could lead to criminal proceedings, or financial or
reputational damage. The Company must also ensure compliance with the Listing
Rules of the New Zealand Stock Exchange.
Operational ↔ The Board monitors the services provided by the Manager and its other
suppliers and receives reports on the key elements in place to provide
Disruption to, or failure of, the Manager's or its Administrator's (BNP effective internal control.
Paribas) accounting, dealing or payment systems or the Depositary's records
could prevent the accurate reporting and monitoring of the Company's financial
position. Cyber crime could lead to loss of confidential data. The Company is
also exposed to the operational risk that one or more of its suppliers may not Cyber security is closely monitored and the Audit Committee receives regular
provide the required level of service. presentations from Janus Henderson's Chief Information Security Officer.
The Board considers the loss of the Fund Manager as a risk but this is
mitigated by the experience of the team at Janus Henderson as detailed in the
Annual Report.
Emerging risks
In addition to the principal risks facing the Company, the Board also
regularly considers emerging risks, which are defined as potential trends,
sudden events or changing risks which are characterised by a high degree of
uncertainty in terms of the probability of them happening and the possible
effects on the Company. Should an emerging risk become sufficiently clear, it
may be moved to a significant risk.
BORROWINGS
The Company has a borrowing facility of £120.0 million (2022: £120.0
million) with HSBC Bank plc, of which £9.0 million was drawn at the year end
(2022: £16.3 million).
The Company has £114.2 million (2022: £114.2 million) (par value) of secured
notes in issue (fair value of the loan notes: £83.3 million (2022: £101.1
million)).
The level of gearing at 30 June 2023 was 6.2% of net asset value with debt at
par (2022: 7.1%) and 4.5% with debt at fair value (2022: 6.4%).
VIABILITY STATEMENT
The AIC Code of Corporate Governance includes a requirement for the Board to
assess the future prospects for the Company, and to report on the assessment
within the Annual Report.
The Board considers that certain characteristics of the Company's business
model and strategy are relevant to this assessment:
• The Board seeks to deliver long-term performance by the Company.
• The Company's investment objective, strategy and policy, which are subject to
regular Board monitoring, mean that the Company is invested mainly in readily
realisable, UK-listed securities and that the level of borrowings is
restricted.
• The Company is a closed end investment company and therefore does not suffer
from the liquidity issues arising from unexpected redemptions.
• The Company has an ongoing charge of 0.37%, which is lower than other
comparable investment trusts.
Also relevant were a number of aspects of the Company's operational
agreements:
• The Company retains title to all assets held by the Custodian under the terms
of formal agreements with the Custodian and Depositary.
• Long-term borrowing is in place, being 4.53% secured notes 2029, 2.94% secured
notes 2049 and 2.67% secured notes 2046 which are subject to formal
agreements, including financial covenants with which the Company complied in
full during the year. The value of long-term borrowing is relatively small in
comparison to the value of net assets, being 6.0%.
• Revenue and expenditure forecasts are reviewed by the Directors at each Board
meeting. This includes stress testing of the forecast under different
scenarios.
• Cash is held with approved banks.
Three model scenarios are considered which evaluate the impact on revenue
reserves. These range from a worst case scenario which includes low consensus
estimates, significant dividend cuts of up to 50% in specific sectors and
specific investee companies, to a best case scenario with high consensus
estimates, no dividend cuts in any specific sector and limited dividend cuts
in specific investee companies. Increasing dividend payments to shareholders
could continue under all three scenarios whether through revenue, or supported
by distributable capital reserves. None of the results from the three
scenarios would therefore threaten the viability of the Company.
Covenant limits are tested to ascertain the level that net assets would need
to fall by to breach any covenant conditions. Net assets would need to fall by
amounts in excess of £1.5 billion to breach covenants, with all other factors
remaining constant. The Board considers this to be highly unlikely and
therefore does not threaten the viability of the Company.
In addition, the Directors carried out a robust assessment of the principal
risks and uncertainties which could threaten the Company's business model,
including future performance, liquidity and solvency and considered emerging
risks that could have a future impact on the Company.
The principal risks identified as relevant to the viability assessment were
those relating to investment portfolio performance and its effect on the net
asset value, share price and dividends, and threats to security over the
Company's assets. The Board took into account the liquidity of the Company's
portfolio, the existence of the long-term fixed rate borrowings, the effects
of any significant future falls in investment values and income receipts on
the ability to repay and renegotiate borrowings, grow dividend payments and
retain investors and the potential need for share buybacks to maintain a
narrow share price discount.
The Directors assess viability over five-year rolling periods, taking account
of foreseeable severe but plausible scenarios. In coming to this conclusion,
the Directors have considered the aftermath of the Covid-19 pandemic and
heightened macroeconomic uncertainty following Russia's invasion of Ukraine,
in particular the impact on income and the Company's ability to meet its
investment objective. The Directors do not believe that they will have a
long-term impact on the viability of the Company and its ability to continue
in operation, notwithstanding the short-term uncertainty these events have
caused in the markets and specific short-term issues such as energy, supply
chain disruption, inflation and labour shortages.
The Directors believe that a rolling five-year period best balances the
Company's long-term objective, its financial flexibility and scope with the
difficulty in forecasting economic conditions affecting the Company and its
shareholders.
Based on their assessment, and in the context of the Company's business model,
strategy and operational arrangements set out above, the Directors have a
reasonable expectation that the Company will be able to continue in operation
and meet its liabilities as they fall due over the five-year period to June
2028.
RELATED PARTY TRANSACTIONS
The Company's transactions with related parties in the year were with the
Directors and the Manager. There were no material transactions between the
Company and its Directors during the year and the only amounts paid to them
were in respect of expenses and remuneration for which there were no
outstanding amounts payable at the year end. Directors' shareholdings are
disclosed in the Annual Report.
In relation to the provision of services by the Manager, other than fees
payable by the Company in the ordinary course of business and the provision of
marketing services, there were no material transactions with the Manager
affecting the financial position of the Company during the year under review.
More details on transactions with the Manager, including amounts outstanding
at the year end, are given in the Annual Report.
STATEMENT OF DIRECTORS' RESPONSIBILITIES
Each of the Directors, who are listed below, confirms that, to the best of his
or her knowledge:
• the Company's financial statements, which have been prepared in accordance
with UK Accounting Standards on a going concern basis, give a true and fair
view of the assets, liabilities, financial position and return of the Company;
and
• the Strategic Report and financial statements include a fair review of the
development and performance of the business and the position of the Company,
together with a description of the principal risks and uncertainties that it
faces.
On behalf of the Board
Sir Laurie Magnus CBE
Chairman
19 September 2023
INCOME STATEMENT
Year ended 30 June 2023 Year ended 30 June 2022
Notes Revenue Capital Total Revenue Capital Total
return
return
return
return
return
return
£'000
£'000
£'000
£'000
£'000
£'000
(Losses)/gains on investments held at fair value through profit or loss - (27,111) (27,111) - 13,394 13,394
2 Income from investments held at fair value through profit or loss 101,747 - 101,747 98,028 - 98,028
3 Other interest receivable and similar income 224 - 224 190 - 190
Gross revenue and capital (losses)/gains 101,971 (27,111) 74,860 98,218 13,394 111,612
Management fee (1,844) (4,304) (6,148) (1,746) (4,073) (5,819)
Other administrative expenses (860) - (860) (774) - (774)
Net return/(loss) before finance costs and taxation 99,267 (31,415) 67,852 95,698 9,321 105,019
Finance costs (1,621) (3,416) (5,037) (1,474) (3,075) (4,549)
Net return/(loss) before taxation 97,646 (34,831) 62,815 94,224 6,246 100,470
Taxation (1,406) - (1,406) (1,236) - (1,236)
Net return/(loss) after taxation 96,240 (34,831) 61,409 92,988 6,246 99,234
5 Return/(loss) per ordinary share basic and diluted 20.14p (7.29p) 12.85p 20.72p 1.39p 22.11p
The total columns of this statement represent the Company's Income Statement.
The revenue return and capital return columns are supplementary to this and
are prepared under guidance published by the Association of Investment
Companies. All revenue and capital items in the above statement derive from
continuing operations. The Company has no recognised gains or losses other
than those recognised in the Income Statement.
STATEMENT OF CHANGES IN EQUITY
Year ended 30 June 2023 Called up share capital £'000 Share premium account £'000 Capital redemption reserve £'000 Other capital reserves £'000 Revenue reserve £'000 Total
£'000
Notes
At 1 July 2022 114,910 909,143 2,707 726,294 43,603 1,796,657
Net (loss)/return after taxation - - - (34,831) 96,240 61,409
8 Issue of 37,715,000 new ordinary shares 9,429 143,918 - - - 153,347
7 Dividends paid - - - - (95,521) (95,521)
At 30 June 2023 124,339 1,053,061 2,707 691,463 44,322 1,915,892
Notes Year ended 30 June 2022 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 2021 111,406 855,597 2,707 720,048 37,567 1,727,325
Net return after taxation - - - 6,246 92,988 99,234
8 Issue of 14,015,000 new ordinary shares 3,504 53,546 - - - 57,050
7 Dividends paid - - - - (86,952) (86,952)
At 30 June 2022 114,910 909,143 2,707 726,294 43,603 1,796,657
STATEMENT OF FINANCIAL POSITION
Notes 30 June 2023 30 June 2022
£'000 £'000
Fixed assets
Investments held at fair value through profit or loss
Listed at market value in the United Kingdom 1,734,695 1,642,199
Listed at market value overseas 299,605 281,071
Investment in subsidiary undertakings 347 347
2,034,647 1,923,617
Current assets
Debtors 10,823 11,451
10,823 11,451
Creditors: amounts falling due within one year (13,956) (22,835)
Net current liabilities (3,133) (11,384)
Total assets less current liabilities 2,031,514 1,912,233
Creditors: amounts falling due after more than one year (115,622) (115,576)
Net assets 1,915,892 1,796,657
Capital and reserves
8 Called up share capital 124,339 114,910
Share premium account 1,053,061 909,143
Capital redemption reserve 2,707 2,707
Other capital reserves 691,463 726,294
Revenue reserve 44,322 43,603
6 Total shareholders' funds 1,915,892 1,796,657
6 Net asset value per ordinary share - basic and diluted 385.22p 390.88p
NOTES TO THE FINANCIAL STATEMENTS
1. Accounting policies
Basis of accounting
The Company is a registered investment company as defined in Section 833 of
the Companies Act 2006 and is incorporated in the UK. It operates in the UK
and is registered at the address below.
The financial statements have been prepared in accordance with the Companies
Act 2006, FRS 102, the Financial Reporting Standard applicable in the UK and
Republic of Ireland, and with the Statement of Recommended Practice: Financial
Statements of Investment Trust Companies and Venture Capital Trusts ("the
SORP") issued in July 2022 by the Association of Investment Companies.
The principal accounting policies applied in the presentation of these
financial statements are set out in the Annual Report. These policies have
been consistently applied to all the years presented.
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, substantially all of the entity's
investments are carried at market value, and the entity provides a Statement
of Changes in Equity. The Directors have assessed that the Company meets all
of these conditions.
The financial statements have been prepared under the historical cost basis
except for the measurement at fair value of investments. In applying FRS 102,
financial instruments have been accounted for in accordance with Sections 11
and 12 of the standard. All of the Company's operations are of a continuing
nature.
The financial statements of the Company's three subsidiaries have not been
consolidated on the basis of immateriality and dormancy. Consequently, the
financial statements present information about the Company as an individual
entity. The Directors consider that the values of the subsidiary undertakings
are not less than the amounts at which they are included in the financial
statements.
The preparation of the Company's financial statements on occasion requires the
Directors to make judgements, estimates and assumptions that affect the
reported amounts in the primary financial statements and the accompanying
disclosures. These assumptions and estimates could result in outcomes that
require a material adjustment to the carrying amount of assets or liabilities
affected in the current and future periods, depending on circumstance.
The decision to allocate special dividends as income or capital is a judgement
but not deemed to be material. The allocation of expenses to income or capital
is a judgement as well, but also is not deemed to be material. The Directors
do not believe that any accounting judgements or estimates have been applied
to this set of financial statements that have a significant risk of causing a
material adjustment to the carrying amount of assets and liabilities within
the next financial year.
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. The Directors have also
considered the aftermath of the Covid-19 pandemic and the risks arising from
the wider ramifications of the conflict between Russia and Ukraine, including
cash flow forecasting, a review of covenant compliance including the headroom
above the most restrictive covenants and an assessment of the liquidity of the
portfolio. They have concluded that the Company is able to meet its financial
obligations, including the repayment of the bank overdraft, as they fall due
for a period of at least twelve months from the date of approval of the
financial statements. Having assessed these factors, the principal risks and
other matters discussed in connection with the viability statement, the Board
has determined that it is appropriate for the financial statements to be
prepared on a going concern basis.
2. Income from investments held at fair value through profit or loss
2023 2022
£'000 £'000
UK dividends:
Listed - ordinary dividends 82,884 79,682
Listed - special dividends 1,949 5,702
84,833 85,384
Other dividends:
Dividend income - overseas investments 13,727 10,041
Dividend income - overseas special dividends 568 586
Dividend income - UK REIT 2,619 2,017
16,914 12,644
Total 101,747 98,028
3. Other interest receivable and similar income
2023 2022
£'000 £'000
Stock lending revenue 224 190
224 190
At 30 June 2023, the total value of securities on loan by the Company for
stock lending purposes was £121,213,000 (2022: £177,048,000). The maximum
aggregate value of securities on loan at any one time during the year ended 30
June 2023 was £285,320,000 (2022: £288,549,000). The Company's agent holds
collateral at 30 June 2023, with a value of £133,180,000 (2022:
£192,321,000) in respect of securities on loan, the value of which is
reviewed on a daily basis and comprises CREST Delivery By Value ("DBVs") and
Government Bonds with a market value of 110% (2022: 109%) of the market value
of any securities on loan.
4. Management fee
2023 2022
Revenue return Capital return Total return Revenue return Capital return Total return
£'000 £'000 £'000 £'000 £'000 £'000
Management fee 1,844 4,304 6,148 1,746 4,073 5,819
A summary of the terms of the Management Agreement is given in the Annual
Report. Details of apportionment between revenue and capital can be found in
the Annual Report.
5. Return/(loss) per ordinary share - basic and diluted
The return per ordinary share is based on the net return attributable to the
ordinary shares of £61,409,000 (2022: gain of £99,234,000) and on
477,932,402 ordinary shares (2022: 448,747,183), being the weighted average
number of ordinary shares in issue during the year.
The return per ordinary share is analysed between revenue and capital as
below:
2023 2022
£'000 £'000
Net revenue return 96,240 92,988
Net capital (loss)/return (34,831) 6,246
Net total return 61,409 99,234
Weighted average number of ordinary shares in issue during the year 477,932,402 448,747,183
2023 2022
Pence Pence
Revenue return per ordinary share 20.14 20.72
Capital (loss)/return per ordinary share (7.29) 1.39
Total return per ordinary share 12.85 22.11
The Company does not have any dilutive securities, therefore the basic and
diluted returns per share are the same.
6. Net asset value per ordinary share - basic and diluted
The net asset value per ordinary share is based on the net assets attributable
to the ordinary shares of £1,915,892,000 (2022: £1,796,657,000) and on
497,354,868 (2022: 459,639,868) shares in issue on 30 June 2023.
An alternative net asset value per ordinary share can be calculated by
deducting from the total assets less current liabilities of the Company the
preference and preferred ordinary stocks and secured notes at their market (or
fair) values rather than at their par (or book) values. The net asset value
per ordinary share at 30 June 2023 calculated on this basis was 391.24p (2022:
393.45p). See the Annual Report for further details of the Alternative
Performance Measure and how it is calculated.
The movements during the year of the assets attributable to the ordinary
shares were as follows:
£'000
Total net assets attributable to the ordinary shares at 30 June 2022 1,796,657
Total net return after taxation 61,409
Dividends paid on ordinary shares in the year (95,521)
Issue of shares 153,347
Total net assets attributable to the ordinary shares at 30 June 2023 1,915,892
The Company does not have any dilutive securities.
7. Dividends paid on ordinary shares
Record date Payment date 2023 2022
£'000 £'000
Fourth interim dividend (4.80p) for the year ended 30 June 2021 6 August 2021 31 August 2021 - 21,434
First interim dividend (4.80p) for the year ended 30 June 2022 29 October 2021 30 November 2021 - 21,434
Second interim dividend (4.80p) for the year ended 30 June 2022 28 January 2022 28 February 2022 - 21,434
Third interim dividend (5.00p) for the year ended 30 June 2022 28 April 2022 31 May 2022 - 22,684
Fourth interim dividend (5.00p) for the year ended 30 June 2022 4 August 2022 31 August 2022 23,139 -
First interim dividend (5.00p) for the year ended 30 June 2023 27 October 2022 30 November 2022 23,518 -
Second interim dividend (5.00p) for the year ended 30 June 2023 26 January 2023 28 February 2023 23,910 -
Third interim dividend (5.05p) for the year ended 30 June 2023 27 April 2023 31 May 2023 24,954 -
Unclaimed dividends over 12 years old - (34)
95,521 86,952
In accordance with FRS 102, interim dividends payable to equity shareholders
are recognised in the Statement of Changes in Equity when they have been paid
to shareholders.
All dividends have been or will be paid out of revenue reserves or current
year revenue profits and at no point during the year did the revenue reserve
move to a negative position.
The total dividends payable in respect of the financial year which form the
basis of the test under Section 1158 of the Corporation Tax Act 2010 are set
out below.
2023 2022
£'000 £'000
Revenue available for distribution by way of dividend for the year 96,240 92,988
First interim dividend of 5.00p (2022: 4.80p) (23,518) (21,434)
Second interim dividend of 5.00p (2022: 4.80p) (23,910) (21,434)
Third interim dividend of 5.05p (2022: 5.00p) (24,954) (22,684)
Fourth interim dividend of 5.05p (2022: 5.00p) paid on 31 August 2023¹ (25,374) (23,139)
Transfer (from)/to revenue reserve² (1,516) 4,297
1 Based on 502,464,868 ordinary shares in issue at 27 July 2023 (the
ex-dividend date) (2022: 462,789,868)
2 The deficit of £1,516,000 (2022: surplus of £4,297,000) has been taken
from the revenue reserve
Since the year end, the Board has announced a first interim dividend of 5.05p
per ordinary share, in respect of the year ending 30 June 2024. This will be
paid on 30 November 2023 to holders registered at the close of business on 27
October 2023. The Company's shares will go ex-dividend on 26 October 2023.
8. Called up share capital
Shares in issue Nominal value of total shares in issue
£'000
Allotted and issued ordinary shares of 25p each
At 1 July 2022 459,639,868 114,910
Issue of new ordinary shares 37,715,000 9,429
At 30 June 2023 497,354,868 124,339
Shares in issue Nominal value of total shares in issue
£'000
Allotted and issued ordinary shares of 25p each
At 1 July 2021 445,624,868 111,406
Issue of new ordinary shares 14,015,000 3,504
At 30 June 2022 459,639,868 114,910
The Company issued 37,715,000 (2022: 14,015,000) ordinary shares with total
proceeds of £153,347,000 (2022: £57,050,000) after deduction of issue costs
of £393,000 (2022: £291,000). The average price of the ordinary shares that
were issued was 407.7p (2022: 408.6p). During the year there were no shares
re-purchased by the Company (2022: there were no shares repurchased).
9. 2023 financial information
The figures and financial information for the year ended 30 June 2023 are
extracted from the Company's annual financial statements for that period and
do not constitute statutory accounts. The Company's annual financial
statements for the year to 30 June 2023 have been audited but have not yet
been delivered to the Registrar of Companies. The Independent Auditors' Report
on the 2023 annual financial statements was unqualified, did not include a
reference to any matter to which the auditors drew attention without
qualifying the report, and did not contain any statements under Sections
498(2) or 498(3) of the Companies Act 2006.
10. 2022 financial information
The figures and financial information for the year ended 30 June 2022 are
compiled from an extract of the published financial statements for that year
and do not constitute statutory accounts. Those financial statements have been
delivered to the Registrar of Companies and included the report of the
auditors which was unqualified, did not include a reference to any matter to
which the auditors drew attention without qualifying the report, and did not
contain any statements under Sections 498(2) or 498(3) of the Companies Act
2006.
11. Annual Report
The Annual Report will be posted to shareholders in late September 2023 and
will be available on the Company's website www.cityinvestmenttrust.com
(http://www.cityinvestmenttrust.com) . Copies will be available thereafter in
hard copy format from the Company's registered office, 201 Bishopsgate,
London, EC2M 3AE.
12. Annual General Meeting
The Annual General Meeting will be held on Tuesday, 31 October 2023 at 2.30pm
at the Company's registered office. The Notice of Meeting will be sent to
shareholders with the Annual Report.
13. General Information
Company Status
The City of London Investment Trust plc is a UK domiciled investment trust
company.
ISIN number / SEDOL: ordinary shares: GB0001990497 / 0199049
London Stock Exchange (TIDM) Code: CTY
New Zealand Stock Exchange Code: TCL
Global Intermediary Identification Number (GIIN): S55HF7.99999.SL.826
Legal Entity Identifier (LEI): 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 Sir Laurie Magnus (Chairman), Samantha Wren
(Audit Committee Chair), Clare Wardle (Senior Independent Director), Ominder
Dhillon and Robert (Ted) Holmes.
The Corporate Secretary is Janus Henderson Secretarial Services UK 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 factsheets and data, copies of
announcements, reports and details of general meetings can be found at
www.cityinvestmenttrust.com (http://www.cityinvestmenttrust.com) .
For further information please contact:
Job Curtis
Fund Manager
The City of London Investment Trust plc
Telephone: 020 7818 4367
Dan Howe
Head of Investment Trusts
Janus Henderson Investors
Telephone: 020 7818 4458
Harriet Hall
Investment Trust PR Manager
Janus Henderson Investors
Telephone: 020 7818 2919
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) are
incorporated into, or form part of, this announcement.
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