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.
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.
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%
31 July 2012 31 October 2012
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
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.
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.
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
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.
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.
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
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
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 (%)
Royal Dutch Shell 3.2
Rio Tinto 2.8
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
Oil Services +2.7
Oil & Gas -4.8
Mobile telecoms -4.9
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.
Kleinwort Benson (Channel Islands) Fund Services Limited
Telephone 01481 727111
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
IMSBDBDBUBBBGDC -0- Nov/19/2012 12:17 GMT
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