Interim Management Statement

    RNS Number : 4414Z
  Royal London UK Eqty&Income Tst PLC
  18 July 2008
   

    Royal London UK Equity & Income Trust plc (the "Company")
    Royal London UK Equity & Income Securities plc (the "Subsidiary")

    Combined Interim Management Statement (Unaudited)
    for the four months ended 30 June 2008

    The Company has prepared this Interim Management Statement ("IMS") to meet the requirements of the UK Listing Authority's Disclosure
Rules and Transparency Rules. The IMS covers the four months ended 30 June 2008 and incorporates any relevant information up to the date of
publication.

    Investment Objective
    The investment objective of the Company has been to provide Ordinary shareholders with the potential for income and capital growth and
to provide the Annuity shareholder with a cumulative preferred and fixed level of income payable quarterly.  

    The investment objective of the Company's Subsidiary has been to provide Zero Dividend Preference ("ZDP") shareholders with a
predetermined final capital entitlement.  

    Investment Manager's Review
    On 15 May 2008, the Company announced that, following consultation with their advisers, they had resolved to bring forward liquidation
proposals with a view to the Company being placed into voluntary liquidation on 12 September 2008, the day on which the Zero Dividend
Preference Shares of the Subsidiary and the Company's bank loan are due to be repaid.

    The proposals will be subject to the approval of shareholders. Royal London, which holds 100 per cent. of the Company's Annuity Shares
and 10 million Ordinary Shares (equal to 14.29 per cent. of the Ordinary Shares in issue), has agreed to vote in favour of the liquidation
proposals on the basis that Royal London receives, in respect of the Annuity Shares, a payment of 95.3 pence per Annuity Share on the
winding up of the Company, equating to a redemption yield of 8.2 per cent. per annum over the period from the launch of the Company to the
proposed liquidation date. The Annuity shareholder will also receive payment of any arrears of cumulative dividends down to the date of
liquidation. The agreement of Royal London to vote in favour of the liquidation proposals is conditional on the Company publishing and
despatching to its shareholders not later than 12 August 2008 proposals for a scheme of arrangement or reconstruction providing for the
matters specified above.

    Shareholders will be offered cash in respect of the whole of their investment. The Board intends to make available one or more successor
investment vehicles for those shareholders who wish to roll over their investment rather than realise it for cash.

    A circular to shareholders will be despatched in due course and further announcements made as appropriate.


      Performance

                                                 30 June 2008  31 August 2007 
 Total assets before prior charges (£'000)            115,411          123,613
 Net asset value (pence):
 Ordinary Share Current - pre-liquidation 1,2            28.3             41.6
 Ordinary Share Estimated - post-liquidation1,2          19.0                -
 Annuity Share Current - pre-liquidation 1               75.0             75.0
 Annuity Share Estimated - post-liquidation1             95.3                -
 Zero Dividend Preference Share                         176.8            164.9
 Indices (pence):
 FTSE All-Share Index                                   154.7            171.4
 Barclays Non-Gilt Over 10 year index                   136.1            141.1
 AIC SCI Composite Index                                 89.1            105.0
 Mid-market price (pence):
 Ordinary Share                                          19.0             24.8
 Zero Dividend Preference Share                         175.5            164.8
 Dividends per share (pence):
 Ordinary (Special)                                         -             0.75
 Annuity                                                  7.1              8.5

    1 The Current NAV pre-liquidation of 75.00 pence per Annuity Share stated above is the amount payable to the Annuity Shareholder
according to the Articles of Association on their redemption date of 14 September 2021. Consent of the Annuity Shareholder to a winding-up
prior to that date is required.  The NAV per Annuity Share post liquidation is stated above on the basis of the agreement between the
Company and Royal London that 95.3 pence per Annuity Share is paid on the winding up of the Company which was announced on 15 May 2008. The
full text of this announcement can be found in the Investment Manager's Review section of this IMS.

    2 The NAVs per Ordinary Share stated above include a payment from Royal London Asset Management Limited in respect of a refund of VAT on
management fees, further details of which can be found in the Chairman's Statement and the Notes to the Condensed Consolidated Financial
Statements in the Company's Interim Report for the half year ended 29 February 2008.


    Material Events
    The Board instructed the Investment Manager to proceed with liquidating the Company on 5 June 2008. The equity portfolio of the Company
was promptly hedged by selling FTSE 100 Futures at around the 6,000 level to protect the value of the Company from any decline in the equity
market. All equity call options were repurchased in the market by the close of 6 June 2008, resulting in a capital gain on these positions.
The majority of the Company's equity holdings were sold over the following week with the futures position being reduced on a pro-rata basis.
The proceeds of these equity sales were re-invested in short gilts and cash.  The corporate bond and income portfolios are being liquidated
in an orderly manner over a longer period, making use of the time remaining until the proposed liquidation date to tap into natural demand
in the market and to minimise the need to sell less liquid securities at a discount. These positions are not hedged and the value of the
Company will fluctuate with movements in the corporate bond market.

    Material Transactions
    Following the end of the half year, the Company announced its interim results for the half year ended 29 February 2008.  An interim
dividend was not declared.  


      At 30 June 2008, the breakdown of the Group's assets was as follows:

                                 Market value                         Market value 
                              asset allocation                       asset exposure
                                         £'000                %               £'000                %
 Growth portfolio                        1,348              1.2              87,084             70.4
 Bond portfolio                         37,221             32.2              25,907             21.0
 Income portfolio                        1,876              1.6               6,088              4.9
                            ------------------  ---------------  ------------------  ---------------
 Total portfolio                        40,445             35.0             119,079             96.3
 Cash (net current assets)              74,966             65.0               4,534              3.7
                            ------------------  ---------------  ------------------  ---------------
                                       115,411            100.0             123,613            100.0
                                     =========         ========           =========         ========

    Gearing 
    The Company announces that, on 17 July 2008, it repaid in full the outstanding portion of its £50,000,000 bank loan with the Royal Bank
of Scotland plc under a £100,000,000 Credit Facility.

    Other Information
    The Board are not aware of any significant events or transactions which have occurred between 30 June 2008 and the date of publication
of this IMS which would have a material impact on the financial position of the Company which have not already been disclosed.  The Company
announces its NAV on a weekly basis and investors are directed to the most recent announcement for details of the Company's current
financial position.

    A copy of this IMS is available on the Investment Manager's website at www.rlam.co.uk

    For further information, please contact:

    Victoria Muir
    Client Relationship Director
    Royal London Asset Management Limited

    Tel: + 44 (0) 20 7506 6758

    18 JULY 2008

This information is provided by RNS
The company news service from the London Stock Exchange
 
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