Annual report: Period Ended 31 December 2012 - Invesco Perpetual

More documents

Recommendations

Info

4 City Merchants High Yield Trust Limited Chairman’s Statement My statement in the 2011 annual report of City Merchants High Yield Trust plc (CMHYT plc) set out proposals for the transfer of the assets of that company to City Merchants High Yield Trust Limited (the ‘new Company’), a Jersey resident company, in exchange for shares. These proposals were intended to enable the continued delivery of tax efficient investment returns to shareholders from high-yielding fixed-interest securities and put shareholders in a position equivalent to previous years, by increasing the net distributable income as compared with that achievable had CMHYT plc continued. These proposals were implemented on 2 April 2012 and I am pleased to report that the new Company is operating satisfactorily. The terms of the re-domicile allow direct comparison of the new Company’s financial information from 2 April 2012 with CMHYT plc’s financial information prior to that date. In the 12 months to 31 December 2012, the total NAV return was 24.5% which compares favourably with the average return of 12.4% from the funds in the Investment Management Association Sterling Strategic Bond sector. Disappointingly the total return on the Company’s share price did not match the NAV return as the shares were quoted at a discount to NAV for most of 2012. The Board keeps the discount under review. Some share price volatility is to be expected under current market conditions and we would expect the Company’s discount to reduce from its current level. An analysis of the total and capital returns for CMHYT plc and the new Company is shown in the performance statistics on page 2 and a summary of the market background and investment strategy followed in the year are set out in the Manager’s Investment Report following my statement. Also, an unaudited statement of comprehensive income is included on page 57 showing the respective contributions of CMHYT plc and the new Company over the 12 months to 31 December 2012. The new Company continues to produce an attractive level of income for shareholders and I am pleased to report that your Board has been able to meet its target, as set out in the prospectus dated 23 February 2012, of declaring aggregate dividends of 10p per share in respect of the year to 31 December 2012. This comprised a special dividend paid by CMHYT plc in March 2012 and interim dividends of 2.6p, 2.5p and 2.5p paid by the new Company in August 2012, November 2012 and February 2013, respectively. The Board continues to target total dividends at the same level for the current year. The Board believes the portfolio remains well-positioned to continue to provide opportunities for modest growth while producing an attractive level of income for shareholders. Annual General Meeting (AGM) The AGM will be held at the offices of R&H Fund Services (Jersey) Limited, Ordnance House, 31 Pier Road, St. Helier, Jersey JE4 8PW, at 10.30 am on 13 June 2013. All of the resolutions are summarised on pages 34 and 35. Since this is the first AGM of the new Company, all of the Directors will submit themselves for election by shareholders. In addition to this, and the usual ordinary resolutions to receive this annual report and re-elect the auditor, there are four items of special business as follows: 1. Continuation of the Company (ordinary resolution 8) The Articles of Association require that an ordinary resolution to continue the Company be put to shareholders each year. 2. Issuance of New Shares Although Jersey law does not require shareholder approval for issues of shares, the Directors expressed an intention in the new Company’s prospectus to request that the authority to allot shares for cash on a non-pre-emptive basis is renewed at each AGM. Special Resolution 9 accordingly seeks to renew the Directors’
City Merchants High Yield Trust Limited 5 authority to issue up to 10% of the Company’s issued ordinary shares without pre-emption. The Directors will not issue shares at a price which is less than the NAV attributable to the shares, so as not to dilute the interests of existing shareholders. 3. Share Buybacks Special Resolution 10 is to renew the authority to buy back up to 14.99% of the Company’s issued ordinary shares, subject to restrictions referred to in the Notice of AGM, where the Board believes it is in shareholders’ interests to do so. 4. Calling General Meetings at 14 days’ Notice Special resolution 11 is an annual resolution that enables the Company to call general meetings (other than AGMs) on 14 days’ notice if the Board believes it to be in the interests of shareholders. Mainland Shareholder Meeting Shareholders should note that in addition to the AGM in Jersey an opportunity is being provided to hear from the portfolio managers and pose questions to them and on the annual report at a meeting to be held in London at 2.30 pm on 10 June 2013. This additional shareholder meeting will be held in Invesco Perpetual’s offices at 30 Finsbury Square, London EC2A 1AG. Clive Nicholson Chairman 28 March 2013
Page 1 and 2: City Merchants High Yield Trust Lim
Page 5: City Merchants High Yield Trust Lim
Page 57 and 58:
City Merchants High Yield Trust Lim
Page 59 and 60:
Page 61 and 62:
Page 63 and 64:
The Manager of City Merchants High
Page 65:
Linkway Financial Printers Typeset
show all

Annual report: Period Ended 31 December 2012 - Invesco Perpetual

Create successful ePaper yourself

Delete template?

Save as template?