2nd Dec 2019 10:50
(Alliance News) - BMO Capital & Income Investment Trust PLC said Monday it has outperformed its benchmark in its recently ended financial year, despite intense levels of market uncertainty.
For the year to the end of September, the trust posted a net asset value per share total return of 5.3%, rising above the FTSE All-Share index, which made a total return of 2.7%.
As at September 30, BMO Capital & Income's net asset value per share was 328.99 pence, up 1.5% from 324.04p the same date the year before.
The trust's share price was 325.00p at the end of September, reflecting a 1.2% discount to net asset value.
Shares in BMO Capital & Income were marginally lower on the day Monday at 332.49 pence, having improved since the year-end.
The trust has declared a fourth interim dividend of 3.75 pence per share, bringing the total payout to 11.4p, up 4.1% from 10.95p the prior year.
"Markets are still supported by low interest rates, which hide a multitude of sins. Until the tide goes out in the shape of higher interest rates, even poorly run companies are able to stay afloat. In some industries, though, even cheap money is not enough. Most obviously (but not only) the retail sector, is being severely disrupted by new distribution channels. Add to this the uncertainty about the future, which is depressing capital investment," said Chair Steven Bates.
"This combination, perhaps surprisingly, is not especially negative for equity markets, but nor are we off to the races. The most likely trajectory is that markets will grind higher, generating modest but positive returns. In this environment, skilled stock selection is more important than ever, and in this case, I believe you are in safe hands," Bates added.
By Dayo Laniyan; [email protected]
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