21st Nov 2018 12:46
LONDON (Alliance News) - Aberdeen Standard Equity Income Trust PLC on Tuesday said it trailed slightly behind its benchmark in its most recent financial year, with TP ICAP PLC the biggest single detractor.
In its year ended September 30, the quoted UK equities investor posted a 5.5% net asset value total return, just shy of the 5.9% return recorded by its FTSE All-Share Index benchmark.
Chairman Richard Burns said that he was encouraged by these results, as the merger of Standard Life PLC with Aberdeen Asset Management PLC was put into effect during the trust's year.
Standard Life, now renamed Standard Life Aberdeen PLC, is the parent of Aberdeen Standard Equity's manager.
"The board was concerned that a merger of this size and complexity could have had adverse consequences for investment and administrative performance, particularly with respect to the way in which our portfolio might be managed. I am glad to say that we have not experienced these to any significant extent," Burns said.
Net asset value per share stood at 485.02 pence at the end 2018 financial year, up from 482.63p the year before.
Inter-dealer broker TP ICAP's share price suffered after a downgrade in guidance on cost synergies from a merger and proved the worst performing of the trust's investments.
Software firm Micro Focus International PLC, insurance company Saga PLC, and annuities business Just Group PLC also detracted from growth.
Small cap asset management companies Premier Asset Management Group PLC and AFH Financial Group PLC were the strongest positive contributors, joined by infrastructure company John Laing Group PLC.
The company declared a final dividend of 5.5p, bringing the total for the year up 12% to 19.2p from 17.10p.
Looking ahead, Burns said that while "the investment outlook is at least as uncertain as it was twelve months ago" the company's investment approach "is likely to produce good long term returns and sustainable dividend growth in the future".
Shares in Aberdeen Standard Equity were down 0.2% at 423.57p on Wednesday.
Related Shares:
SLA.LTP ICAPASEI.L