Fund Information / Factsheet • Jun 22, 2023
Fund Information / Factsheet
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| Performance over (%) |
6m | 1y | 3y | 5y | 10y |
|---|---|---|---|---|---|
| Share price (Total return) |
0.0 | -0.6 | 39.2 | 17.7 | 72.8 |
| NAV (Total return) |
-0.6 | -0.7 | 37.0 | 18.3 | 74.7 |
| Benchmark (Total return) |
0.2 | 0.4 | 33.9 | 15.2 | 67.5 |
| Relative NAV (Total return) |
-0.7 | -1.1 | 3.1 | 3.1 | 7.2 |
All performance, cumulative growth and annual growth data is sourced from Morningstar.
Source: at 31/05/23. © 2023 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance does not predict future returns.
Please remember that past performance does not predict future returns. The value of an investment and the income from it can rise as well as fall as a result of market and currency fluctuations, and you may not get back the amount originally invested. Please refer to glossary for definition of share price total return.
The Company underperformed the FTSE All-Share Index during the month.
The Company's net asset value (NAV) fell 5.5% in May, underperforming the FTSE All-Share Index which fell 4.6%. The biggest stock detractors were the underweight positions in HSBC and AstraZeneca, followed by the holding in Imperial Brands. The biggest positive contributors were holdings in 3i and SSE, along with an underweight position in Shell.
UK equities continue to be on the receiving end of takeover bids from overseas companies and private equity firms. We believe this is an indicator of the value on offer. We also think the dividend yield of UK equities remains attractive relative to the main alternatives.
References made to individual securities do not constitute a recommendation to buy, sell or hold any security, investment strategy or market sector, and should not be assumed to be profitable. Janus Henderson Investors, its affiliated advisor, or its employees, may have a position in the securities mentioned.
The Company's objective is to provide long-term growth in income and capital, principally by investment in equities listed on the London Stock Exchange. The Board fully recognises the importance of dividend income to shareholders.
Renowned for its record-setting annual dividend increases since 1966, the Company targets longterm income and capital growth.
| NAV (cum income) | 392.0p | |
|---|---|---|
| NAV (ex income) | 388.8p | |
| Share price | 400.0p | |
| Discount(-)/premium(+) | 2.0% | |
| Yield | 5.0% | |
| Net gearing | 8% | |
| Net cash | - | |
| Total assets Net assets |
£2,074m £1,947m |
|
| Market capitalisation | £1,987m | |
| Total voting rights | 496,654,868 | |
| Total number of holdings | 88 | |
| Ongoing charges (year end 30 Jun 2022) |
0.37% | |
| Benchmark | FTSE All-Share Index | |
| Morningstar Medalist RatingTM Effective 19/04/2023 |
||
| Analyst-Driven %: 100.00 Data Coverage %: 100.00 |
Source: BNP Paribas for holdings information and Morningstar for all other data. Differences in calculation may occur due to the methodology used.
Please note that the total voting rights in the Company do not include
shares held in Treasury.
How to invest Go to www.janushenderson.com/howtoinvest
Find out more Go to www.cityinvestmenttrust.com
| Top 10 holdings | (%) |
|---|---|
| Shell | 3.6 |
| BAE Systems | 3.5 |
| Unilever | 3.2 |
| HSBC | 3.2 |
| British American Tobacco | 3.2 |
| Diageo | 3.2 |
| RELX | 3.1 |
| AstraZeneca | 3.0 |
| BP | 2.8 |
| Tesco | 2.5 |
The above geographical breakdown may not add up to 100% due to rounding.
References made to individual securities do not constitute a n/a n/a recommendation to buy, sell or hold any security, investment strategy or market sector, and should not be assumed to be profitable. Janus Henderson Investors, its affiliated advisor, or its employees, may have a position in the securities mentioned.
Sector breakdown (%)
Financials 26.3%
Consumer Staples 19.8% Industrials 11.6% Health Care 8.4% Energy 8.3% Utilities 6.9% Consumer Discretionary 6.2%
Basic Materials 5.7% Telecomms 3.2% Real Estate 2.5% Technology 1.2%
The above sector breakdown may not add up to 100% due to rounding.
| Stock code | CTY | |||
|---|---|---|---|---|
| AIC sector | AIC UK Equity Income | |||
| Benchmark | FTSE All-Share Index | |||
| Company type | Conventional (Ords) | |||
| Launch date | 1891 | |||
| Financial year | 30-Jun | |||
| Dividend payment | November, February, May, August |
|||
| Risk rating (Source: Numis) |
Average | |||
| Management fee | 0.325% per annum of net assets |
|||
| Performance fee | No | |||
| (See Annual Report & Key Information Document for more information) | ||||
| Regional focus | UK | |||
| Fund manager appointment |
Job Curtis 1991 David Smith 2021 |
|||
Please remember that past performance does not predict future returns. The value of an investment and the income from it can rise as well as fall as a result of market and currency fluctuations, and you may not get back the amount originally invested.
How to invest Go to www.janushenderson.com/howtoinvest Customer services 0800 832 832
calculated using mid-market share price with dividends reinvested.
In the UK, the FTSE All-Share Index fell 4.6% as elevated inflation increased worries that interest rates would stay higher for longer. The Bank of England (BoE) raised its key rate by 25 basis points to 4.5% after it emerged that consumer price rises had slowed to a higher-than-expected 8.7% in April, from 10.1% in March. UK gross domestic product (GDP) grew 0.1% in the first quarter. Sterling weakened against a resurgent US dollar.
The Company's net asset value (NAV) fell 5.5% in May, underperforming the FTSE All-Share Index which fell 4.6%. The biggest detractors from performance at the stock holdings level were the underweight positions in HSBC and AstraZeneca, followed by the holding in tobacco company Imperial Brands.
The biggest positive contributor to performance was 3i, the investor in private companies. Its share price rose as the Company announced good full-year results. The underweight position in Shell was the second biggest stock contributor, followed by the holding in utility company SSE.
In the mining sector, we sold the holding in BHP and switched into Glencore. BHP's most important commodity is iron ore, which depends mainly on demand from Chinese steel makers. We switched into Glencore as we prefer the company's exposure to those metals that are important for the clean energy transition, such as copper.
Elsewhere, we bought a new holding in Round Hill Music Royalty Fund, which owns 51 catalogues with 120,000 songs and has been benefiting from the growth in music streaming. We bought the holding at a 40% discount to the 31 December NAV. This reflected selling pressure in the Alternative Investment Trust sector against a backdrop of rising gilt yields.
We think the rate of inflation should fall as energy price rises drop out of the 12-month data. However, inflation is likely to remain well above the Bank of England's 2% target because of the strength of the labour market and scale of wage increases. Thus, in our view, there is likely to be upward pressure on interest rates.
UK equities continue to be on the receiving end of takeover bids from overseas companies and private equity firms. We believe this is an indicator of the value on offer. We also think the dividend yield of UK equities remains attractive relative to the main alternatives.
The amount by which the price per share of an investment company is either lower (at a discount) or higher (at a premium) than the net asset value per share (cum income), expressed as a percentage of the net asset value per share.
The effect of borrowing money for investment purposes (financial gearing). The amount a company can "gear" is the amount it can borrow in order to invest. Gearing is used in the expectation that the returns on the investments bought will exceed the costs of the borrowings that funded the purchase. This Company can also use synthetic gearing through derivatives and foreign exchange hedging and/or other non-fully funded instruments or techniques.
The Company's leverage is the sum of financial gearing and synthetic gearing. Details of the Company's leverage limits can be found in both the Key Information Document and Annual Report. Where a company utilises leverage, the profits and losses incurred by the company can be greater than those of a company that does not use leverage.
Share price multiplied by the number of shares in issue, excluding treasury shares, at month end. Shares typically priced mid-market at month-end closing.
The total value of a Company's assets less its liabilities.
The value of investments and cash, including current year revenue, less liabilities (prior charges such as loans, debenture stock and preference shares at fair value).
The value of investments and cash, excluding current year revenue, less liabilities (prior charges such as loans, debenture stock and preference shares at fair value).
The theoretical total return on shareholders' funds per share reflecting the change in Net Asset Value (NAV) assuming that dividends paid to shareholders were reinvested at NAV at the time the shares were quoted ex-dividend. A way of measuring investment management performance of investment trusts which is not affected by movements in discounts/premiums.
Total assets minus any liabilities such as bank loans or creditors.
A company's net exposure to cash/cash equivalents expressed as a percentage of shareholders' funds, after any offset against its gearing. This is only shown for companies that have gearing in place.
A company's total assets (less cash/cash equivalents) divided by shareholders' funds expressed as a percentage.
The total expenses for the financial year (excluding performance fee), divided by the average daily net assets, multiplied by 100.
The key measure used to assess risk is volatility of returns, using historic net asset value (NAV) performance of the company over 1 and 3 years. In this instance volatility measures how much a company's NAV fluctuates over time in relation to the UK Equity market. The higher a volatility figure, the more the NAV has fluctuated (both up and down) over time. Please note that risk categorisations are indicative and based principally on historic data and should not be solely relied upon when making investment decisions.
Closing mid-market share price at month end.
The theoretical total return to the investor assuming that all dividends received were reinvested in the shares of the company at the time the shares were quoted ex-dividend. Transaction costs are not taken into account.
Cum Income NAV multiplied by the number of shares, plus prior charges at fair value.
Calculated by dividing the current financial year's dividends per share (this will include prospective dividends) by the current price per share, then multiplying by 100 to arrive at a percentage figure.
https://www.janushenderson.com/en-gb/investor/glossary/
Source for fund ratings/awards Overall Morningstar Rating™ is shown for an investment company achieving a rating of 4 or 5. Morningstar Medalist Rating™ Ratings should not be taken as a recommendation. For more detailed information about Morningstar Ratings, including its methodology, please go to www.global.morningstar.com/managerdisclosures.
Not for onward distribution. Before investing in an investment trust referred to in this document, you should satisfy yourself as to its suitability and the risks involved, you may wish to consult a financial adviser. This is a marketing communication. Please refer to the AIFMD Disclosure document and Annual Report of the AIF before making any final investment decisions. Past performance does not predict future returns. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested. Tax assumptions and reliefs depend upon an investor's particular circumstances and may change if those circumstances or the law change. Nothing in this document is intended to or should be construed as advice. This document is not a recommendation to sell or purchase any investment. It does not form part of any contract for the sale or purchase of any investment. We may record telephone calls for our mutual protection, to improve customer service and for regulatory record keeping purposes.
Issued in the UK by Janus Henderson Investors. Janus Henderson Investors is the name under which investment products and services are provided by Janus Henderson Investors International Limited (reg no. 3594615), Janus Henderson Investors UK Limited (reg. no. 906355), Janus Henderson Fund Management UK Limited (reg. no. 2678531), (each registered in England and Wales at 201 Bishopsgate, London EC2M 3AE and regulated by the Financial Conduct Authority) and Janus Henderson Investors Europe S.A. (reg no. B22848 at 2 Rue de Bitbourg, L-1273, Luxembourg and regulated by the Commission de Surveillance du Secteur Financier).
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