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UK Select Trust Ld UKT Interim Management Statement

  UK Select Trust Ld (UKT) - Interim Management Statement

RNS Number : 4567R
UK Select Trust Limited
19 November 2012




UK Select Trust Limited (the "Company")



Interim Management Statement



This interim management statement ("IMS") covers  the period from 1 July  2012 
up to the date of publication of this IMS, unless otherwise specified. It has
been produced  for  the sole  purpose  of  providing the  information  to  the 
Company's shareholders  in  accordance  with the  requirements  of  the  FSA's 
Disclosure and Transparency Rules. It should not be relied upon by any  other 
party or for any other purpose.



Investment Objective



The Company's investment  objective is  to provide shareholders  with a  total 
return in excess  of the total  return on the  FTSE All-Share Index,  together 
with a progressive dividend policy.



Cumulative Performance



As at 31 October 2012               1 Mth  3 Mth

                                    (%)    (%)
NAV (Total Return)                  +1.16% +4.41%
Share Price (Total return)          +5.36% +11.02%
FTSE All-Share Index (Total Return) +1.03% +4.39%

Source: Threadneedle/Datastream



Financial Position



                         31 July 2012 31 October 2012
Ordinary Shares
NAV (p)                    137.73p        143.73p
Share Price (p)            120.50p        132.75p
Discount (%)               -12.51%        -7.64%
Total net assets (£'000) £ 28,625,505   £29,641,308

Source: Threadneedle/Bloomberg



Material Events



Threadneedle Asset Management  Limited ("Threadneedle") was  appointed as  the 
Company's investment manager with  effect from 31  July 2012. Simon  Brazier, 
head of  Threadneedle's UK  Equities Team,  is responsible  for the  Company's 
portfolio and manages  it in accordance  with his successful  UK Equity  Alpha 
strategy. The Company's portfolio was realigned with Threadneedle's UK Equity
Alpha Strategy on 1 August 2012.



At  the  Company's  Annual  General  Meeting  held  on  15  August  2012,  all 
resolutions were  passed,  including a  resolution  to allow  the  Company  to 
satisfy dividends in scrip as well as in cash.



Market Background



Over the period, the UK equity  market remained volatile against the  backdrop 
of ongoing  uncertainty  over  the  global  economic  outlook,  but  generally 
followed an upward path on the back of policy moves by the ECB and the Federal
Reserve. At the sector  level, higher-beta areas of  the market, such as  IT, 
were supported by an improvement in risk appetite, while financials  performed 
strongly as the probability of an immediate break-up of the eurozone began  to 
ease, owing to the  announcement of the  ECB's Outright Monetary  Transactions 
(OMT)  programme.  The  consumer  discretionary  sector  also  performed  well 
supported by  strength in  a number  of media  and consumer  cyclical  stocks. 
Notable laggards  at  the  sector  level  included  defensive  areas  such  as 
utilities and telecoms, while energy also underperformed despite resilience in
Brent crude oil prices following  Royal Dutch Shell's results  disappointment. 
At the capitalisation level, small caps outperformed large caps.



Performance



Up to 31 October 2012 the Company outperformed its benchmark index, with  both 
sector allocation  and stock  selection contributing.  Stock level  highlights 
included the Company's large positions in house builder Persimmon and  airline 
easyJet, and  the  Company also  benefited  from not  holding  certain  poorly 
performing large  cap  names,  such  as Vodafone.  At  the  sector  level,  an 
overweight in industrials worked well, although the underweight in  financials 
detracted.



Outlook



Threadneedle continues  to focus  on reliable  growth, attractive  yields  and 
financial stability, which it believes should stand the Company's portfolio in
good stead given the ongoing macroeconomic problems in the developed world and
the  well-flagged  political  and  policy  uncertainties  in  the   eurozone. 
Threadneedle's overall  strategy has  not changed.  Threadneedle continues  to 
acknowledge the  tough  domestic economic  conditions  and the  likelihood  of 
further volatility as the market digests the latest news flow from Europe  and 
China. However, Threadneedle prefers to look past this news flow and to  focus 
on finding strong businesses with healthy  cash flows and the ability to  grow 
their dividends over the long term. Threadneedle is finding such businesses in
a wide range of sectors. Threadneedle retains its cautious view on the banking
sector. While banking  shares have rallied,  Threadneedle continues to  expect 
the sector to struggle, given the weak domestic economy and the ongoing  macro 
uncertainties in  the eurozone.  Balance sheet  strength remains  a key  theme 
within the  Company's portfolio.  As  well as  providing protection  in  tough 
economic times, a strong  balance sheet affords companies  the ability to  use 
cash in shareholder-friendly ways. Corporate activity looks set to continue as
cash-rich companies at home  and abroad acquire  quality assets at  attractive 
prices and dividend increases and share buybacks are also likely to continue.



Gearing



The Company's borrowing facility of £2,000,000, expired on 20 September 2012.
The Board is currently seeking  to put in place  a new facility. The  Company 
did not utilise any borrowingsduring the period under review.



Dividend



On 24 August 2012 the Board of directors declared a first interim dividend  of 
0.95 pence per share in respect of the year ended 31 December 2012, payable on
5 November 2012. Shares were marked  ex-dividend on 5 September 2012 and  the 
record date for the interim dividend was  7 September 2012. As stated in  the 
Company's half-yearly financial report for the period ended 30 June 2012,  the 
Company intends  to  continue with  the  policy  of paying  a  second  interim 
dividend each year to shareholders in May of the following year in place of  a 
final dividend.





Material Transactions

Over the period,  the Company  bought back  a total  of 150,000  shares to  be 
placed ion treasury.  On 5 November  2012, 73,879 shares  were issued out  of 
treasury to satisfy elections under the scrip dividend scheme.



Total Voting Rights



The Company now has 20,830,484 shares in  issue, of which 171,032 are held  in 
treasury.



There were no  other significant  events or transactions  which have  occurred 
during the period from 1 July 2012 to the date of publication of the IMS which
would have a material impact on the Company.



Top 10 Holdings (as at 31 October 2012)

Company           Portfolio Weight (%)
BP                        3.9
GlaxoSmithKline           3.7
Royal Dutch Shell         3.2
Rio Tinto                 2.8
Unilever                  2.7
BT                        2.6
AstraZeneca               2.5
BG                        2.4
Sage                      2.0
HSBC                      2.0

Source: Threadneedle



Sector exposure relative FTSE All Share (as at 31 October 2012)

Top 5 Overweight/ Underweight Subsectors Active weight (%)
Support Services                               +6.2
Travel & Leisure                               +4.1
Household Goods & Home Construction            +3.2
Media                                          +3.1
Oil Services                                   +2.7
Beverages                                      -2.1
Mining                                         -4.2
Oil & Gas                                      -4.8
Mobile telecoms                                -4.9
Banks                                          -6.7

Source: Threadneedle



Further information

Further information regarding the Company, including factsheets, can be  found 
at the investment manager's website www.threadneedle.com. Neither the content
of the  Company's website  nor the  contents of  any website  accessible  from 
hyperlinks on the  Company's website  (or any other  website) is  incorporated 
into or forms part of this announcement.





Enquiries:

Secretary

Kleinwort Benson (Channel Islands) Fund Services Limited

Telephone 01481 727111



Investment Manager

Threadneedle Asset Management Limited

Simon Brazier / Michael Bateman

Telephone 0207 464 5000



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

END


IMSBDBDBUBBBGDC -0- Nov/19/2012 12:17 GMT