27th Jan 2020 11:47
(Alliance News) - BMO Managed Portfolio Trust PLC on Monday reported its income shares were able to outperform the FTSE All Share index in the first half of its financial year, but its growth shares lagged the benchmark.
At November 30, BMO Managed's NAV per income share stood at 136.75 pence, compared to 131.81p at May 31, a 3.7% rise.
Over the six-month period, BMO Managed's income net assets have grown 5.9% to GBP61.0 million from GBP57.6 million.
The trust's NAV per growth share was 214.62p at the end of November, up 4.6% from 205.17p at May 31.
Over the six-month period, BMO Managed's growth net assets have grown 4.1% to GBP76.1 million from GBP73.1 million.
The trust declared two interim dividends in the first half, of 1.35p and 1.4p per income share.
For the six months to November 30, the NAV total return for the income shares was 6.3% and 4.6% for the growth shares. The total return for the benchmark index for both portfolios, the FTSE All-Share Index, was 5.8%.
Chair Colin McGill said: "The period under review saw a decent positive return from the UK equity market however this masked some significant volatility caused by massive political uncertainty in the UK, particularly in the latter few months. A feature was sterling, which had been weak for a prolonged period, but then began to rise sharply in October as the likelihood of a "no deal Brexit" diminished. It ended the six months gaining 2.6% and 3.7% against the dollar and euro respectively, a marked change of trend for the currency."
McGill noted concerns over global growth led to three cuts in interest rates by the US Federal Reserve, a modest return to the policy of quantitative easing by the European Central Bank and a further stimulus package from the Bank of Japan.
He added: "Equity markets responded positively to these measures, although due to strength of the UK currency the returns from overseas markets were diluted when translated back into sterling. Against this background both portfolios made gains over the period with the Income portfolio slightly ahead and the Growth portfolio slightly behind the total return of the FTSE All-Share Index."
The trust's income portfolio was boosted by its Healthcare holding while the growth portfolio was boosted by it Technology positions.
BMO Managed Portfolio Trust's income shares were 1.6% lower in London on Monday at 142.68p each. The growth shares were 2.1% lower at 223.14p.
By Paul McGowan; [email protected]
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