CT UK Cap & Inc inv - Annual Results and Quarterly Dividend Announcement
29/11/2024 07:00
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RNS Number : 0839O CT UK Capital and Income Investment 29 November 2024
CT UK CAPITAL AND INCOME INVESTMENT TRUST PLC
Audited Statement of Results for the year ended 30 September 2024
LEI: 21380052ETTRKV2A6Y19
29 November 2024
CT UK Capital and Income Investment Trust PLC ("CTUK" / the "Company") today
announces its results for the year ended 30 September 2024.
· Net Asset Value ("NAV") per share total return of 18.4%, compared
to the FTSE All-Share Index (our "Benchmark") total return of 13.4% and Share
Price total return of 16.6%.
· The Board is pleased to declare a fourth quarterly dividend of
3.95p per share ((1)). Together with the three dividends already paid for this
financial year, this takes the total dividend for the year to 12.50p per
share, an increase of 2.9% compared to last year. This provides Shareholders
with an annual dividend yield of 3.7% ((2)).
· This is the 31(st) consecutive year of increased annual dividend
payments, maintaining the Company's status as an AIC Dividend Hero.
(1) The fourth interim dividend will be paid on 20 December 2024 to
Shareholders on the register on 6 December 2024. The ex-dividend date is 5
December 2024.
(2) Calculated as the total of the four most recent quarterly dividends
declared divided by the period end share price.
The Chair, Jane Lewis, said:
"We are delighted to report another year of strong performance for the full
year to 30 September 2024, with the NAV total return of 18.4% significantly
ahead of the Benchmark and the dividend continuing to grow. Despite the
challenging economic conditions, the Company continues to deliver on its
objective of long-term capital and income growth.
"We are proud that the Company is an AIC Dividend Hero, having increased its
dividend every year since launch in 1992. It is firmly our intention to
continue this record and we are supported in that ambition by the strength of
our revenue reserve, currently at £11.1 million.
"Looking ahead, while uncertainties remain, we take confidence in the
resilience demonstrated by the global economy in adapting to recent
challenges. 2024 has been the year of democracy, with around 2 billion people
eligible to vote across the world in key elections. That these outcomes are
now largely known and settled should allow a course of greater clarity next
year and into the following electoral cycle. In turn, this should help
companies to plan better and therefore to invest and execute their strategies
more efficiently."
Chair's Statement
I am pleased to write to you with my report for the year to 30 September 2024.
Over the year, the total return gain in our Net Asset Value per share was
18.4%, comfortably outperforming the total return over the same period of
13.4% for the Company's Benchmark, the FTSE All-Share Index ("the Index"). The
Fund Manager's Review, in the Report and Accounts for the Year Ended 30
September 2024, gives more detail on market movements and our performance.
Although it has been a challenging year, stock markets have generally been
positive. The global geo-political situation was troubled before the year
began as Russia's invasion of Ukraine continues, but into this, the escalating
conflict in the Middle East has added yet greater uncertainty and misery.
Economic growth in the UK has shown some improvement after the mild recession
of the second half of 2023, but growth rates are pretty lacklustre by historic
standards.
More positively, inflation, which had escalated rapidly with the recovery from
COVID-19, continued to decrease and having started our financial year at 6.7%,
the UK Consumer Price Index ("CPI") fell to 2.2% at our year end, having been
at the Bank of England's target level of 2.0% in the summer. This reduction in
inflationary pressure was supportive for equity markets as it was expected to
be the prelude to meaningful interest rate cuts.
Total Return - The Company offers a reliable income while at the same time
seeking to grow the size of your investment
Looking at our performance over the last three years. Our performance somewhat
lagged that of the Index in 2022 in an environment of rising interest rates
and particularly around the period of the infamous mini-budget that caused so
much turmoil in investment markets. With conditions more stable over the last
year, we have produced stronger results and a large part of the deficit has
been clawed back.
Over the longer term, looking at the 10 and 25 year periods, our performance
has been well ahead of the Index. As an active managed investment, it is
impossible to guarantee consistent performance in excess of the Index, but our
performance when markets have been stable or rising has more than outweighed
the periods of more challenging performance, which have generally coincided
with times when the equity market has suffered more turmoil. Our investment
process and its attention to long-term fundamentals has generated positive
absolute investment returns and outperformance of the Index over the
long-term, and our attractive dividend yield and annual dividend growth are an
integral part of this.
Income Growth - The Company has increased its dividend every year since it was
launched, through the market's ups and downs
Our earnings fell last year as the dividends paid to us by our investee
companies declined. At face value, this is surprising given the strength of
the UK stock market and our own NAV growth. The decline in our income should
not be taken as a negative indicator for performance either historically or
prospectively, but partly as a change in the balance between capital and
income returns that we happened to receive last year.
The reasons behind this are explained in detail in the Fund Manager's Review,
but in summary there were three major factors at play. First, our previous
year's figures had been boosted by special dividends which were not repeated
this year. Secondly, one of our major investments has decided to redirect its
cash return to shareholders into a share buyback programme and this is
arguably leading to greater capital growth in that investment, albeit at the
expense of dividend income. And thirdly, corporate activity has led to the
take-overs of a number of our higher yielding investments, again boosting
capital returns, but reducing our dividend income.
With these results, the Board is declaring a dividend for our fourth quarter
of 3.95 pence per share to give a total for the year of 12.50 pence. This is a
rate of increase over one year of 2.9%, which compares to CPI of 1.7%. The
Board recognises the importance to Shareholders of reliable and growing
dividends. Our steady, incremental approach to increasing the dividend has led
to considerable outperformance of CPI and the implied dividend from our main
benchmark, the FTSE All-Share Index over the longer term. For example, over 25
years, growth in these three comparators has been 160% in our dividend, 85%
for CPI and 138% for the dividend from the FTSE All-Share Index.
Translating these figures to compound annual rates of growth, over 25 years we
have grown your Company's dividend by a rate of 3.2%, compared to 2.5% for CPI
and 2.9% for the FTSE All-Share Index.
In addition to the growth in the dividend, the starting yield is also of
significance to Shareholders, and as at 30 September 2024, the yield on the
shares was 3.7% compared to 3.6% from the FTSE All-Share Index.
We are proud that your Company is an AIC Dividend Hero and has increased its
dividend every year since launch in 1992. It is firmly our intention to
continue this record of dividend growth and we are supported in that ambition
by the strength of our revenue reserve, currently at £11.1 million. As in
other years when our earnings were not quite sufficient to match our dividend,
we have drawn from this reserve this year in order to grow the dividend, and
we are confident that in years to come, where earnings exceed the dividend,
this reserve will be added to.
Share Price discount to NAV
Over the year, the Company's shares traded at an average discount to the
underlying NAV of 3.8% and within a range of -1.4% and -5.8%.
The focus in my statement up to this point has been on NAV per share, as that
is what your investment manager is most directly able to influence. However,
the Board is very aware that the investment experience of Shareholders is
directly linked to the Company's share price. The Board has long believed it
is in Shareholders' interests that the Company's shares should not trade at
prices that are too detached from the underlying NAV per share. To try to
create the right conditions for this, the Company has the ability to buyback
its own shares if the share price stands at a discount compared to the
underlying NAV per share and to issue its own shares if the share price is at
a sufficient premium.
Last year, your Company bought back 4.3 million of its own shares at an
average discount of 4.2% and increasing the NAV of the Company by 0.2%. This
is more than in any other year and is in large part a consequence of selling
by the beneficiaries of maturing Child Trust Funds, set up in the early
2000's, many of which bought shares in your Company.
At the forthcoming Annual General Meeting, the Board will again ask
Shareholders to renew its authorities to issue shares at a premium and buyback
at a discount. This will assist the Board in continuing to protect the
discount to NAV at which the Company's shares may trade.
Gearing
We have borrowed additional funds to invest in our portfolio throughout the
year. These borrowings are on a flexible, short-term basis with the cost being
linked to short-term interest rates. Borrowing for additional investment adds
value for Shareholders if the cost of the borrowing is less than the
additional returns achieved by extra investments and that was clearly the case
last year.
Costs
Costs are an inevitable drag on performance and it is one of our objectives to
run your Company as efficiently as possible. The largest expense is the
contract for the investment management of our portfolio. This is directly
related to the value of the investment assets and so increased over the last
year. Other expenses also rose across the board as a result of
inflation-linked price increases. Press and publication expenses increased 20%
as the Company marketed its proposition to Shareholders. Overall, the cost
ratio at 0.67% still remains at a competitive level.
ESG
Your investment manager integrates the consideration of financially material
Environmental, Social and Governance ("ESG") factors into its research and
investment process. Pages 24 to 27 in the Report and Accounts for the Year
Ended 30 September 2024 explain Columbia Threadneedle Investment's ESG
policies and how these are implemented with respect to management of the
investment portfolio. There are also examples of its engagement with our
investee companies.
Directorate Change
I was appointed to the Board in November 2015 and became Chair with effect
from 1 July 2023. As part of the Board's ongoing succession planning and in
accordance with corporate governance best practice, I will retire from the
Board at the conclusion of the Company's 2025 Annual General Meeting.
Upon my retirement, it is intended that Nicky McCabe, the Company's Senior
Independent Director, who was appointed to the Board in January 2021 will
become Chair. Nicky has extensive sector experience as she was formerly Head
of Product and Investment Trusts at Fidelity International as well as a
director and Chief Operating Officer of a number of Fidelity companies. Nicky
is currently a non-executive director of abrdn Asian Income Fund Ltd, Artemis
Investment Management Limited and EFG Asset Management (UK) Limited. I am
delighted that the Company and Shareholders will benefit from her extensive
experience, knowledge and leadership.
As she becomes Chair, Nicky will hand over her other roles within the Company
to Board colleagues. Thus at the conclusion of the 2025 AGM, it is intended
that Patrick Firth will be appointed Senior Independent Director and
Christopher Metcalfe will become Chair of the Management Engagement Committee.
As a further part of the Board's succession planning a search company was
commissioned to find a new Director for the Board. It is anticipated that a
new Director will be appointed to the Board shortly.
Cancellation of Share Premium Account
The Board agreed during the year to propose the cancellation of the Company's
share premium account at the forthcoming Annual General Meeting ("AGM"). The
Company has a sizeable share premium account which is non-distributable and
the Board believes that converting the share premium account to a
distributable reserve will provide a significant pool of reserves which can be
used in future, if required, to fund dividends, share buybacks and other
returns of capital in accordance with applicable law.
AGM
The AGM will be held at 12.30pm on 6 March 2025 at the offices of Columbia
Threadneedle Investments, Cannon Place, 78 Cannon Street, London, EC4N 6AG.
This will be followed by a presentation by our manager, Julian Cane, on the
Company and its investment portfolio.
For Shareholders who are unable to attend, any questions they may have
regarding the resolutions proposed at the AGM or the performance of the
Company can be directed to a dedicated email account,
ctukagm@columbiathreadneedle.com, by Thursday 27 February 2025. We will
endeavour, in so far as reasonably practicable, to address all such questions
at the meeting. In addition, the meeting will be recorded and will be
available to view on the Company's website, www.ctcapitalandincome.co.uk
shortly thereafter.
To ensure that your votes will count, I would encourage all Shareholders
especially those that cannot attend in person to complete and submit their
Form of Proxy or Form of Direction in advance of the AGM.
Outlook
While there may be many uncertainties to be faced in the coming year and
beyond, there should be recognition that the UK and the world have been
largely able to navigate the hugely difficult environment of recent years.
This resilience should help to give some confidence about the future.
The challenges, including COVID-19, geo-political issues, war in Europe,
inflationary bursts and interest rates rising rapidly from all-time low
levels, have definitely played a part in setting future direction. 2024 has
been the year of democracy with around 2 billion people eligible to vote
across the world in key elections. That these outcomes are now largely known
and settled should allow a course of greater clarity next year and into the
following electoral cycle. In turn, this should help companies to plan better
and therefore to invest and execute their strategies more efficiently.
The inflationary surge experienced across most of the world brought on largely
by the impact on supply chains from responses to COVID-19 and the monetary and
fiscal support to keep economies operating, seems to be easing in most
places. This is clearly a positive development and should allow short-term
interest rates to be reduced in most key economies, but the battle against
inflation may yet prove to be more protracted and hence the reduction in rates
may consequentially be somewhat delayed. As and when rates are lowered, this
should be advantageous for economic growth and stock markets. As ever,
skilled stock selection will be key.
It has been a great honour to serve on the Company's Board first as a
non-executive director and latterly as its Chair. I would like to thank Julian
Cane, our Fund Manager, for his continuing quiet professionalism throughout my
tenure regardless of what the markets and the geo-political landscape deliver,
ensuring always that Shareholders benefit from his investment skills honed
through a long career. Further thanks are due to Scott McEllen, our Company
Secretary for his diligence and good natured keeping of order at Board
meetings and to Marrack Tonkin, Columbia Threadneedle's head of investment
trusts, who treads a difficult line between representing the management house
and supporting an independent Board.
Finally, on behalf of the Board, I would like to thank Shareholders for their
continued support.
Jane Lewis
Chair
28 November 2024
Principal Risks and Future Prospects
The principal risks together with their mitigations are set out below. The
Board's processes for monitoring them and identifying emerging risks are set
out on page 51 and in note 21 of the Annual Report & Accounts. The global
economy continues to suffer considerable disruption due to the effects of the
war in Ukraine, events in the Middle East and the after-effects of a high
inflation environment.
The Directors continue to review the key risk register for the Company which
identifies the risks that the Company is exposed to, the controls in place and
the actions being taken to mitigate them.
The principal risks identified as most relevant to the assessment of the
Company's future prospects and viability are detailed below.
Emerging risks represent new information which could significantly change how
an existing risk is perceived, but where the impact or likelihood remains
uncertain.
Future Prospects
Through a series of connected stress tests ranging from moderate to extreme
scenarios and based on historical information, but forward looking over the
five years commencing 1 October 2024, the Board assessed the risks of:
• potential illiquidity of the Company's
portfolio;
• the effects of any substantial future falls in
investment values and income receipts on the ability to repay and renegotiate
borrowings;
• potential breaches of loan covenants, the
maintenance of dividend payments and retention of investors; and
• the potential need for extensive share buybacks
in the event of share price volatility and a move to a wide discount.
The Board also took into consideration the perceived viability of its
principal service providers, potential effects of anticipated regulatory
changes and the potential threat from competition. The Board's conclusions are
set out under the Five Year Horizon Statement on page 30 of the Annual Report
& Accounts. A five year period is considered to be a reasonable time frame
for measuring and assessing medium to long term investment performance. A five
year period has also been selected as the shares may not be suitable for
investors intending to hold them for less than that period.
Principal Risks
· Market and Political Risks
Risk description: Macroeconomic and geopolitical risk including rising
international tensions arising from the war in Ukraine, dispute in the South
China Sea, events in the Middle East and the emerging policies of the newly
elected UK Government.
No change in overall risk during the year.
Mitigation: The Company has a clearly defined and approved strategy which
is reviewed and approved on an annual basis. The Board can hold additional
board meetings at short notice to discuss the impact of significant changes in
the macroeconomic and geopolitical environment. The Company maintains a
portfolio of diversified stocks.
Forward looking stress tests ranging from moderate to extreme scenarios are
provided by the Manager to the Board to support the Five Year Horizon
Statement.
· Investment Performance Risk
Risk description: Unfavourable markets or asset allocation, sector and stock
selection and management and use of cash and gearing are inappropriate giving
rise to investment underperformance as well as impacting capacity to pay
dividends.
No change in overall risk during the year.
Mitigation: The portfolio of quoted securities is diversified and the
Company's structure enables it to take a long term view notwithstanding the
current market volatility. Investment policy, performance, revenue and gearing
are reviewed at each Board meeting. The Manager's Investment Risk team
provides independent oversight on investment risk management. The Board
regularly considers operating costs along with underlying dividend income and
the implications for the dividend payment capacity of the Company taking into
account revenue reserves.
· Legal and Regulatory Risks
Risk description: To maintain its investment trust status, the Company is
required to comply with Section 1158 of the UK Corporation Taxes Act. The
Company is also required to comply with UK company law, is subject to the
requirements of the AIFMD and the relevant regulations of the London Stock
Exchange and the Financial Conduct Authority.
No change in overall risk during the year.
Mitigation: The Board receives regular control reports from the Manager
covering risk and compliance. The Board has access to the Manager's Risk
Manager and requires any significant issues directly relevant to the Company
to be reported immediately. The Depositary is specifically liable for loss of
any of the Company's securities and cash held in custody.
· Product Strategy Risk
Risk description: Inappropriate business or marketing strategy particularly
in relation to investor needs or sentiment giving rise to a share price
discount to NAV per share.
No change in overall risk during the year.
Mitigation: To gauge investor sentiment, the Board holds an investor
satisfaction survey which is conducted every five years ahead of a vote on
whether the Company should continue. The Board holds a separate annual meeting
to consider the Company's strategy. The appointment of the Manager is also
reviewed annually. Share buybacks can be employed to help moderate discount
volatility, while share issues can be made when the shares are trading at a
premium. At each Board meeting the Directors receive an update on the
marketing activities undertaken by the Manager. The Company's Broker provides
periodic updates to the Board relating to the Company's trading in the wider
market.
· Cyber Risks
Risk description: Theft of Company and customer assets or data.
No change in overall risk during the year.
Mitigation: The Manager has as Information Security team with the objective to
protect its clients from malicious external attacks.
Supervision of the Manager's third-party service providers, including State
Street and SS&C, is maintained by Columbia Threadneedle Investments and
includes assurances regarding IT security and cyber-attack prevention.
· Third Party Service Provider Risks
Risk description: Errors, fraud or control failures at service providers or
business continuity failure could damage reputation or investors' interests or
result in losses.
No change in overall risk during the year.
Mitigation: The Board receives regular control reports from the Manager
covering risk and compliance including oversight of third-party service
providers. The Board has access to the Manager's Risk Manager and requires any
significant issues directly relevant to the Company to be reported
immediately. The Depositary is specifically liable for loss of any of the
Company's securities and cash held in custody.
Five Year Horizon
In accordance with the UK Code, the Directors have assessed the future
prospects of the Company over the coming five years. Based on this assessment,
and in the context of the Company's business model, strategy and operational
arrangements, the Board has 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 ending November 2029. For this reason, the Board also
considers it appropriate to continue adopting the going concern basis in
preparing these financial statements.
Statement of Directors' Responsibilities
In accordance with Chapter 4 of the Disclosure Guidance and Transparency
Rules, each of the Directors listed on page 36 of the Annual Report confirm to
the best of their knowledge that:
· the financial statements, prepared in accordance with applicable
accounting standards give a true and fair view of the assets, liabilities,
financial position and profit of the Company;
· the Strategic report includes 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 they face; and
· the Annual Report and financial statements, taken as a whole, are
fair, balanced and understandable and provide the information necessary for
Shareholders to assess the Company's position and performance, business model
and strategy.
On behalf of the Board
Jane Lewis
Chair
28 November 2024
Income Statement
for the year ended 30 September 2024 2023
Revenue Capital Total Revenue Capital Total
£'000s £'000s £'000s £'000s £'000s £'000s
Gains on investments - 45,656 45,656 - 25,619 25,619
Foreign exchange (losses)/gains (3) (32) (35) (4) 4 -
Income 13,813 28 13,841 16,179 - 16,179
Management fee (735) (735) (1,470) (693) (693) (1,386)
Other expenses (806) (1) (807) (742) (1) (743)
Net return before finance costs and taxation 12,269 44,916 57,185 14,740 24,929 39,669
Finance costs (802) (802) (1,604) (662) (662) (1,324)
Net return before taxation 11,467 44,114 55,581 14,078 24,267 38,345
Taxation (28) - (28) (22) - (22)
Net return attributable to Shareholders 11,439 44,114 55,553 14,056 24,267 38,323
Return per share - basic and diluted 11.18p 43.12p 54.30p 13.26p 22.89p 36.15p
The total column of this statement is the profit and loss account of the
Company. 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.
A statement of Comprehensive Income is not required as all gains and losses of
the Company have been reflected in the above statement.
Statement of Changes in Equity
for the year ended
30 September 2024
Share Capital Total
Share premium redemption Special Capital Revenue Shareholders'
capital account reserve reserve reserve reserve funds
£'000s £'000s £'000s £'000s £'000s £'000s £'000s
Balance at 30 September 2023 26,822 141,367 4,146 - 130,082 12,330 314,747
Movements during the year
ended 30 September 2024:
Dividends paid - - - - - (12,710) (12,710)
Ordinary shares bought back - - - - (13,586) - (13,586)
and held in treasury
Costs relating to broker - - - - (10) - (10)
Net return attributable to - 44,114 11,439 55,553
Shareholders - - -
Balance at 30 September 2024 26,822 141,367 4,146 - 160,600 11,059 343,994
for the year ended
30 September 2023
Share Capital Total
Share premium redemption Special Capital Revenue Shareholders'
capital account reserve reserve reserve reserve funds
£'000s £'000s £'000s £'000s £'000s £'000s £'000s
Balance at 30 September 2022 26,822 141,380 4,146 2,642 110,200 11,093 296,283
Movements during the year
ended 30 September 2023:
Dividends paid - - - - - (12,819) (12,819)
Ordinary shares issued from - - - 224 - - 224
treasury
Ordinary shares bought back - - - (2,866) (4,380) - (7,246)
and held in treasury
Costs relating to broker - (13) - - (5) - (18)
Net return attributable to 24,267 14,056 38,323
Shareholders - - - -
Balance at 30 September 2023 26,822 141,367 4,146 - 130,082 12,330 314,747
Balance Sheet
at 30 September 2024 2023
£'000s £'000s
Fixed assets
Investments 370,968 336,112
Current assets
Debtors 1,312 2,833
Cash at bank 319 2,378
Total current assets 1,631 5,211
Current liabilities
Creditors: amounts falling due within one year (605) (1,576)
Bank Loan (28,000) (25,000)
Total current liabilities (28,605) (26,576)
Net current liabilities (26,974) (21,365)
Total assets less current liabilities 343,994 314,747
Capital and reserves
Share capital 26,822 26,822
Share premium account 141,367 141,367
Capital redemption reserve 4,146 4,146
Special reserve - -
Capital reserve 160,600 130,082
Revenue reserve 11,059 12,330
Total Shareholders' funds 343,994 314,747
Net asset value per ordinary share - pence 343.84 301.67
Statement of Cash Flows
for the year ended 30 September 2024 2023
£'000s £'000s
(2,273)
Cash flows from operating activities before dividends and interest (2,162)
Dividends received 13,910 15,777
Interest received 283 91
Interest paid (1,603) (1,298)
Cash flows from operating activities 10,317 12,408
Investing activities
Purchase of investments (21,121) (20,000)
Sale of investments 32,087 27,924
Other capital charges (1) (1)
Cash flows from investing activities 10,965 7,923
Cash flows before financing activities 21,282 20,331
Financing activities
Equity dividends paid (12,710) (12,819)
Net proceeds from issuance of shares held in treasury - 224
Broker costs associated with share issues and buybacks (10) (18)
Cost of shares bought back and held in treasury (13,586) (7,246)
Drawdown of bank loan 28,000 1,000
Repayment of bank loan (25,000) -
Cash flows from financing activities (23,306) (18,859)
Net movement in cash and cash equivalents (2,024) 1,472
Cash and cash equivalents at the beginning of the year 2,378 906
Effect of movement in foreign exchange (35) -
Cash and cash equivalents at the end of the year 319 2,378
Represented by:
Cash at bank 319 2,378
319 2,378
Notes
1 Return per ordinary share
Revenue return
The revenue return per share of 11.18p (2023: 13.26p) is based on the revenue
return attributable to Shareholders of £11,439,000 profit (2023: £14,056,000
profit).
Capital return
The capital return per share of 43.12p (2023: 22.89p) is based on the capital
return attributable to Shareholders of £44,114,000 profit (2023: £24,267,000
profit).
Total return
The total return per share of 54.30p (2023: 36.15p) is based on the total
return attributable to Shareholders of £55,553,000 profit (2023: £38,323,000
profit).
Weighted average ordinary shares in issue
The returns per share are based on a weighted average of 102,309,411 (2023:
106,023,426) ordinary shares in issue during the year.
2 Dividends
The Directors have declared a fourth interim dividend in respect of the year
ended 30 September 2024 of 3.95 pence per share, payable on 20 December 2024
to all Shareholders on the register at close of business on 6 December 2024,
ex-dividend 5 December 2024.
3 Financial risk management
The Company is an investment company, listed on the London Stock Exchange, and
conducts its affairs so as to qualify in the United Kingdom ("UK") as an
investment trust under the provisions of section 1158 of the Corporation Tax
Act. In so qualifying, the Company is exempted in the UK from corporation tax
on capital gains on its portfolio of investments.
The Company's investment objective is to secure long-term capital and income
growth from a portfolio consisting mainly of FTSE All-Share companies. The
Company can also have exposure to overseas companies, with the value of the
non-UK portfolio not exceeding 10% of the Company's gross assets. In pursuing
this objective, the Company is exposed to financial risks which could result
in a reduction of either or both of the value of the net assets and the
profits available for distribution by way of dividend. These financial risks
are principally related to the market (currency movements, interest rate
changes and security price movements), liquidity and credit. The Board,
together with the Manager, is responsible for the Company's risk management.
The full details of financial risks are contained in note 21 of the Report and
Accounts.
4 Annual General meeting
The 2025 Annual General Meeting ("AGM") of the Company will be held at 12.30pm
on Thursday 6 March 2025 at the offices of Columbia Threadneedle Investments,
Cannon Place, 78 Cannon Street, London EC4N 6AG. This will be followed by a
presentation by our manager Julian Cane on the Company and its investment
portfolio.
For Shareholders who are unable to attend, any questions they may have
regarding the resolutions proposed at the AGM or the
performance of the Company can be directed to a dedicated email account,
ctukagm@columbiathreadneedle.com, by Thursday 27 February 2025. We will
endeavour, in so far as reasonably practicable, to address all such questions
at the meeting. In addition, the meeting will be recorded and will be
available to view on the Company's website, www.ctcapitalandincome.co.uk
shortly thereafter.
To ensure that your votes will count we would encourage all Shareholders that
cannot attend in person to complete and submit their Form of Proxy or Form of
Direction in advance of the AGM.
5 Report and accounts
The report and accounts for the year ended 30 September 2024 will be posted to
Shareholders and made available on the website www.ctcapitalandincome.co.uk
shortly. Copies may also be obtained by mailing the Company's registered
office, Cannon Place, 78 Cannon Street, London EC4N 6AG.
By order of the Board
Columbia Threadneedle Investment Business Limited, Secretary
28 November 2024
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