CT UK High Income Trust : Annual Report and AGM Notice

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%.

1. Yield and total return - See Alternative Performance Measures on pages 89 and 90.
2. 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%

1. Total return, yield, discount, gearing and ongoing charges - see Alternative Performance Measures on pages 89 and 90.
2. A unit consists of three Ordinary shares and one B share.
3. Benchmark - see definition on page 2.
4. 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.

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Other Information