TIDMUKT
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
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Share Price (p) 120.50p 132.75p
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Discount (%) -12.51% -7.64%
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Total net assets (GBP'000) GBP 28,625,505 GBP29,641,308
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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 GBP2,000,000, expired on 20
September 2012. The Board is currently seeking to put in place a
new facility. The Company did not utilise any borrowings during 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
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Royal Dutch Shell 3.2
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Rio Tinto 2.8
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Unilever 2.7
------------
BT 2.6
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AstraZeneca 2.5
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BG 2.4
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Sage 2.0
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HSBC 2.0
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Source: Threadneedle
Sector exposure relative FTSE All Share (as at 31 October
2012)
Top 5 Overweight/ Underweight Active weight
Subsectors (%)
Support Services +6.2
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Travel & Leisure +4.1
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Household Goods & Home Construction +3.2
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Media +3.1
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Oil Services +2.7
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Beverages -2.1
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Mining -4.2
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Oil & Gas -4.8
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Mobile telecoms -4.9
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Banks -6.7
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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
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