Annual Report and Financial Statements
CT UK
High Income
Trust PLC
31 March 2023
Contents
Overview | Report of the Engagement and Remuneration Committee | 43 | |
Company Overview | 1 | Report of the Audit Committee | 44 |
Financial Highlights | 2 | Directors' Remuneration Report | 48 |
Summary of Performance | 3 | Statement of Directors' Responsibilities | 51 |
Strategic Report | Independent Auditor's Report | 52 | |
Chairman's Statement | 5 | ||
Purpose, Strategy and Business Model | 8 | Financial Report | |
Key Performance Indicators | 10 | Financial Statements | 60 |
Manager's Review | 11 | Notes to the Financial Statements | 64 |
Manager's Investment Philosophy and Process | 14 | AIFMD Disclosures | 79 |
Classification of Investments | 16 | ||
Investment Portfolio | 17 | Notice of Meeting | |
Sustainability and ESG | 19 | Notice of Annual General Meeting | 80 |
Promoting the Success of the Company | 23 | ||
Principal Risks and Uncertainties and Viability Statement | 25 | Other Information | |
Principal Policies | 29 | Capital Structure | 84 |
Shareholder Information | 85 | ||
Governance Report | How to Invest | 86 | |
Board of Directors | 31 | Ten Year Record | 87 |
Report of the Directors | 32 | Alternative Performance Measures ("APMs") | 89 |
Corporate Governance Statement | 39 | Glossary of Terms | 91 |
Report of the Nomination Committee | 42 | Corporate Information | 93 |
Financial Calendar
Annual General Meeting | 20 July 2023 | |||
First quarter's distribution paid | (XD Date 6 | July 2023) | 4 August 2023 | |
Second quarter's distribution paid | (XD Date 5 | October 2023) | 3 | November 2023 |
Announcement of Interim Results | December 2023 | |||
Third quarter's distribution paid | (XD Date 4 | January 2024) | 2 | February 2024 |
Fourth quarter's distribution paid | (XD Date 4 April 2024) | 3 | May 2024 | |
Announcement of Annual Results and Posting of Annual Report | May 2024 | |||
THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION. If you are in any doubt about the action you should take, you are recommended to seek your own independent financial advice from your stockbroker, bank manager, solicitor, accountant or other independent financial adviser authorised under the Financial Services and Markets Act 2000 (as amended by the Financial Services Act 2012) if you are in the United Kingdom or, if not, from another appropriately authorised financial adviser. If you have sold or otherwise transferred all your shares in CT UK High Income Trust PLC please forward this document, together with the accompanying documents, immediately to the purchaser or transferee or to the stockbroker, bank or agent through whom the sale or transfer was effected for transmission to the purchaser or transferee. If you have sold or otherwise transferred only part of your holding of shares, you should retain these documents.
CT UK High Income Trust PLC
Overview
Company Overview
Change of Name
With effect from 29 June 2022, the name of the Company was changed by resolution of the Board to CT UK High Income Trust PLC.
CT UK High Income Trust PLC (the 'Company') (formerly BMO UK High Income Trust PLC) is an investment trust and its shares are listed on the premium segment of the Official List of the Financial Conduct Authority and traded on the London Stock Exchange.
Purpose
The purpose of the Company is to be a cost effective investment vehicle for investors seeking income and capital returns from a portfolio invested predominantly in UK equities.
Investment Objective
The investment objective of the Company is to provide an attractive return to shareholders each year in the form of dividends and/or capital repayments, together with prospects for capital growth.
In pursuit of its objective, the Company invests predominantly in UK equities and equity related securities of companies across the market capitalisation spectrum.
Capital Structure
The Company has two classes of shares: Ordinary shares and B shares. The rights of each class are identical, save in respect of the right to participate in distributions of dividends and capital. The net asset value attributable to each class of shares is the same.
Only Ordinary shares are entitled to dividends paid by the Company. B shares, instead of receiving dividends, receive a capital repayment at the same time as, and in an amount equal to, each dividend paid on the Ordinary shares.
Shares may be held and traded within units, each unit comprises three Ordinary shares and one B share.
Visit our website at ctukhighincome.co.uk
The Company is registered in Scotland with company registration number SC314671
Legal Entity Identifier: 213800B7D5D7RVZZPV45
Forward looking statements
This document may contain forward looking statements with respect to the financial condition, results of operations and business of the Company. Such statements involve risk and uncertainty because they relate to future events and circumstances that could cause actual results to differ materially from those expressed or implied by forward looking statements. The forward looking statements are based on the Directors' current view and on information known to them at the date of this document. Nothing should be construed as a profit forecast.
Report and Accounts 2023 | 1
Overview
Strategic Report
Governance Report
Auditor's Report
Financial Report
Notice of Meeting
Other Inf rmation
Overview
Financial Highlights
6.7% | Yield(1) on Ordinary shares |
Distribution yield of 6.7% on Ordinary shares at 31 March 2023, compared | |
to the yield on the FTSE All-Share Index of 3.6%. Total dividends increased by |
1.1% to 5.51p per Ordinary share compared to the prior year.
6.5% | Yield(1) on B shares |
Distribution yield of 6.5% on B shares at 31 March 2023, compared to the yield | |
on the FTSE All-Share Index of 3.6%. Total capital repayments increased by |
1.1% to 5.51p per B share compared to the prior year.
NAV total return(1)
-0.4% Net asset value total return per share for the financial year was -0.4%, compared to the total return of the Benchmark(2) of +2.9%.
+0.6% | Ordinary share price total return(1) |
Ordinary share price total return per share for the financial year was +0.6%, | |
compared to the total return of the Benchmark(2) of +2.9%. |
B share price total return(1)
+2.3% B share price total return per share for the financial year was +2.3%, compared to the total return of the Benchmark(2) of +2.9%.
- Yield and total return - See Alternative Performance Measures on pages 89 and 90.
- Benchmark - From launch on 1 March 2007, the Company's benchmark index was the FTSE All-Share Capped 5% Index. Following shareholder approval at the Company's AGM on 5 July 2018, the benchmark was changed to the FTSE All-Share Index.
Investors are reminded that the value of investments and any income from them may go down as well as up and they may not receive back the full amount invested. Tax benefits may vary as a result of statutory changes and their value will depend on individual circumstances.
2| CT UK High Income Trust PLC
Overview
Summary of Performance
Overview
Total Return(1)
Net asset value per Ordinary share, B share and unit(2)
Ordinary share price
B share price
Unit price
Benchmark(3)
Year to | Year to |
31 March | 31 March |
2023 | 2022 |
-0.4% | +1.9% |
+0.6% | +0.6% |
+2.3% | +1.6% |
+1.9% | -2.6% |
+2.9% | +13.0% |
Strategic Report
Governance
Revenue and Distributions
Year to | Year to | ||
31 March | 31 March | ||
2023 | 2022 | % Change | |
Distributions per Ordinary share and B share | 5.51p | 5.45p | +1.1% |
Distributions per unit | 22.04p | 21.80p | +1.1% |
Yield(1) - Ordinary share | 6.7% | 6.3% | |
Yield(1) - B share | 6.5% | 6.2% | |
Revenue earnings per share | 3.62p | 3.61p | +0.3% |
Revenue reserve - per Ordinary share(4) | 2.83p | 3.41p | -17.0% |
Capital | |||
31 March | 31 March | ||
2023 | 2022 | % Change | |
Net assets | £104.2m | £111.2m | -6.3% |
Net asset value per Ordinary share and B share | 89.97p | 95.97p | -6.3% |
Net asset value per unit | 359.88p | 383.88p | -6.3% |
FTSE All-Share Index | 4,157.88 | 4,187.78 | -0.7% |
Discount(1)
Report
Auditor's Report
Financial Report
Ordinary shares
-
shares
Units
Gearing(1)
Gearing
Ongoing Charges(1)
-8.9% | -9.3% | |
-6.1% | -8.3% | |
-10.2% | -12.5% | |
8.5% | 0.1% | |
Notice of Meeting
as percentage of average shareholders' funds | 1.02% | 0.98% | |
- Total return, yield, discount, gearing and ongoing charges - see Alternative Performance Measures on pages 89 and 90.
- A unit consists of three Ordinary shares and one B share.
- Benchmark - see definition on page 2.
- Calculated after deducting the fourth interim dividend (which was paid after the year end) from the revenue reserve at 31 March. Sources: Columbia Threadneedle Investments and Refinitiv Eikon.
Report and Accounts 2023 | 3
Other Information
Attachments
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- Original Document
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Disclaimer
CT UK High Income Trust plc published this content on 31 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 June 2023 09:25:06 UTC.