CT UK High Income Trust PLC

Philip Webster
Director, Portfolio Manager
  • CT UK High Income Trust PLC aims to provide shareholders with an attractive level of income together with the opportunity for capital growth.
  • The Trust invests predominantly in UK equities and equity-related securities of companies across the market capitalisation spectrum.
  • The trust has two classes of share – Ordinary shares and B shares – which pay the same level of quarterly cash distributions. The cash distributions on the Ordinary shares are paid as dividends while those on the B shares are paid by way of capital distributions and therefore taxed under capital gains tax (CGT) rules which can provide tax benefits to certain types of investors. The net asset value attributable to each class of shares is the same.
  • The shares may also be traded as units. Each unit consists of three Ordinary shares and one B share.

Objectives

The Trust aims 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.

The objective will be to achieve a total return in excess of that of the FTSE All-Share Index. The Manager will approach investment portfolio construction with the aim of maintaining a diversified portfolio with approximately 40 holdings at any given time. No single investment in the portfolio may exceed 10 per cent of the Company’s gross assets at the time of purchase. In addition, the Manager expects few individual holdings to exceed five per cent of the Company’s gross assets at the time of purchase. There are no maximum levels set for exposures to sectors.

Income may be enhanced from the investment portfolio by writing call options, but only where the portfolio has an existing holding and the holding is greater than the amount of stock subject to the call option. The percentage of the portfolio that may be used to generate call premium is limited to 5 per cent. by value at any one time. The Company may use derivatives for efficient portfolio management from time to time.

The Company has the power under its Articles of Association to borrow an amount up to 100 per cent. of the Company’s Adjusted Capital and Reserves. The Directors currently intend that the aggregate borrowings of the Company will be limited to approximately 20 per cent. of the Company’s gross assets immediately following drawdown of any new borrowings. The Directors will however retain flexibility to increase or decrease the level of gearing to take account of changing market circumstances and in pursuit of the Company’s investment objectives.

As required by the Listing Rules, the Company has a policy to invest no more than 15 per cent of gross assets in other listed investment companies.

Any material change to the investment policy of the Company will only be made with shareholders approval.

Investment Risks

The value of your investments and any income from them can go down as well as up and you may not get back the original amount invested. Investments which are concentrated in a specific sector or country may result in less diversification and hence more volatility in investment values. Gearing is used for investment purposes to obtain, increase or reduce exposure to an asset, index or investment. The use of gearing can enhance returns to investors in a rising market, but if the market falls the losses may be greater.

Fund Facts and Key Dates

Fund Facts

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Investment manager
Columbia Threadneedle Investment Business Limited
Benchmark
FTSE All-Share Index
AIC sector
UK Equity Income
Launch date
1 March 2007
Total assets
£111.3 million (as at 30.06.2022)
Currency
Sterling
ISIN
(Units) GB00B1N4H933 (Ordinary Shares) GB00B1N4G299 (B Shares) GB00B1N4H594
SEDOL
(Units) B1N4H93 (Ordinary Shares) B1N4G29 (B Shares) B1N4H59
Ticker symbol
BHI (Ordinary shares) BHIB (B shares) BHIU (Unit trust)

Key Dates

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Annual general meeting
July
Year end
31 March
Dividend payment date(s)
August, November, February and May
Ex-dividend date(s)
July, October, January and April

Sustainability and ESG

Environmental, Social and Governance (“ESG”) issues are the three central factors in measuring sustainability and can present both opportunities and threats to the long-term investment performance the Company aims to deliver to Shareholders. The Board is therefore committed to taking a responsible approach to ESG matters. There are two strands to this approach. The Company’s own responsibilities on matters such as governance and the impact it has through the investments that are made on its behalf by its Manager.

Find out more about our approach to sustainability and ESG issues here

The Board

Andrew Watkins
Chairman
Helen Galbraith (nee Driver)
Audit Committee Chair
Stephen Mitchell
Senior Independent Director

How to invest

Invest with Columbia Threadneedle

Columbia Threadneedle offer a range of cost-effective savings plans designed to make it easy for you to invest in our range of funds.

Starting from £25 per month or a lump sum of £100, with the flexibility to start and stop contributions whenever you want.

There are no dealing charges on investments made online or through a monthly direct debit.

Invest with a broker

You can invest through your usual financial adviser, or through a wide range of companies.

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