City Natural Res Hgh CYN Interim Management Statement

  City Natural Res Hgh (CYN) - Interim Management Statement

RNS Number : 3223R
City Natural Res High Yield Tst PLC
16 November 2012




To: RNS

Date: 16 November 2012

From: City Natural Resources High Yield Trust plc



Interim Management Statement



For the Three Month Period from 1 July 2012 to 30 September 2012



Investment Objective



City Natural Resources High Yield Trust plc aims to provide shareholders  with 
capital growth  and  income  predominantly  from a  portfolio  of  mining  and 
resource equities  and  of  mining, resource  and  industrial  fixed  interest 
securities.



Performance Summary



                                          For the three month period ended 30
                                                                September 2012






Total Return
Net asset value per share                                               +6.48%
Ordinary share price                                                    +2.55%
Composite Index                                                         +4.70%
HSBC Global Mining Index (sterling                                      +5.55%
adjusted)
Credit Suisse High Yield Bond Index                                     +1.72%
(sterling adjusted)



                                                      As at    As at        

                                          30 September 2012  30 June        

Capital Values - 3 months                                        2012 % Change
Net assets (£000s)                                  £172,805 £163,946    +5.4%
Net asset value per share                             258.4p   245.2p    +5.4%
Ordinary share price +                                219.0p   216.0p    +1.4%
3.5% Convertible Unsecured Loan Stock 2018             97.0p   100.0p    -3.0%
("CULS") +
Discount                                               15.3%    11.9%
Gearing *                                              18.8%    12.5%





* The calculation and presentation of gearing is in accordance with the
guidance published by the AIC on 1 October 2012

+ Mid market





























Review for the Period



Quarterly Review:

The Company's net asset value total return of 6.5% over the quarter was a
little ahead of the benchmark index's 4.7%. It was a calmer quarter for
markets, with rotating commodity sectors prospering or declining and then
declining or prospering in turn. The most notable exception was August's rout
in an iron ore price which fell by 16%; the Company had only limited exposure
in this area. Overall, Mario Draghi in Europe and Ben Bernanke in the
United States did enough to maintain order as markets began to look to
November's US Presidential contest and a new Chinese leadership.



Some £10m of the £14m of cash on the balance sheet at 30 June 2012 was
invested during the quarter, taking the Company's gearing to 18.8% at the
quarter end.



Dividend:

A fourth interim dividend for the year to 30 June 2012 of 2.52p per share  was 
paid on 31 August  2012 to shareholders  on the register  on 10 August  2012. 
This took the dividend for the year to  30 June 2012 to 4.83p, an increase  of 
14.5 per cent on the prior year.





Top Ten Holdings as at 30 September 2012

                                                             % of total
                                                               investments 
Company                   Sector             Country Listing
REA Holdings (Note 1)     Palm oil                        UK           3.7 
New Britain Palm Oil      Palm oil          UK and Papua New           3.3 
                                                      Guinea
Perseus Mining            Gold          Canada and Australia           2.2 
First Quantum Minerals    Copper                      Canada           1.9 
Eldorado Gold             Gold                        Canada           1.8 
Sandfire Resources        Copper                   Australia           1.8 
Silver Wheaton            Silver                      Canada           1.8 
Detour Gold (Note 2)      Gold                        Canada           1.6 
Great Western Minerals    Rare earth                  Canada           1.6 
(Note 3)
Integra Mining            Gold                     Australia           1.4 
Total                                                                 21.1 
            Note 1 - Includes REA Holdings 9% Cumulative Preference Shares
             and REA Finance 9.5% 31/12/2017
            Note 2 - Includes Detour Gold 5.5% 30/11/2017
            Note 3 - Includes warrants and Great Western Minerals 8% Cv
             06/04/2017





Classification of investments by stockmarket quotation as at 30 September 2012

         % of total investments
                                 
Country
Canada                      32.9 
Australia                   30.0 
UK                          19.9 
Norway                       5.2 
Sweden                       3.5 
Europe                       2.3 
Other                        1.3 
Unquoted                     4.9 
Total                      100.0 








Analysis of net assets as at 30 September 2012

                                          % of net assets

Sector
Gold                                                  33.3
Oil & gas                                             15.7
Palm oil                                               6.9
Copper                                                 6.6
Uranium                                                6.3
Silver                                                 5.5
Other mining investments                               5.1
Alternative investments                                2.4
Rare earth                                             2.1
Iron ore                                               2.0
Rubber                                                 0.8
Platinum                                               0.3
Preference shares                                      6.3
Fixed interest                                        25.0
Net current assets                                     2.0
3.5% Convertible Unsecured Loan Stock 2018          (20.3)
Total                                                100.0





Analysis of investments by quotation as at 30 September 2012

                                                       % of total investments


Listed/quoted on a recognised investment exchange                         95.1
Unquoted equities (including placings)                                     3.3
Unquoted convertible securities that are convertible                       1.3
into listed securities
Unquoted bonds                                                             0.3
Total                                                                    100.0



Significant Events or Transactions

A first interim dividend for the year to  30 June 2013 of 0.86p per share  was 
declared on 25 October 2012, an increase of 11.7 per cent on the first interim
dividend from  last year.  This dividend  is payable  to shareholders  on  the 
register on 1 November 2012 and will be paid on 30 November 2012.

The Company issued 2,829  ordinary shares of 25p  each in connection with  the 
exercise of conversion rights by holders of a £10,689 nominal of the Company's
3.5 per  cent. Convertible  Unsecured  Loan Stock  2018  with effect  from  30 
September 2012.  Trading on  the Main  Market of  the London  Stock  Exchange 
became effective and dealings  in the new shares  commenced at 8.00a.m. on  8 
October 2012.



The Board is not aware of  any other significant events or transactions  which 
have occurred since  30 September  2012 and the  date of  publication of  this 
statement which would have a material impact on the financial position of  the 
Company.



This  interim  management  statement  has  been  prepared  solely  to  provide 
information to meet

the requirements of  the UK  Listing Authority's  Disclosure and  Transparency 
Rules.





Daily and Key Information

Further information regarding the Company including the recent share price and
the recent  monthly  fact  sheet,  can  be  found  at  the  Manager's  website 
www.ncim.co.uk



For further information please contact:



Will Smith/Ian Francis 
Martin Cassels

New City Investment Managers  R&H Fund
Services Limited

0207 201 5387  
0131 625 2951

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

END


IMSGGGACGUPPGUQ -0- Nov/16/2012 10:47 GMT
 
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