15th Apr 2020 16:59
(Alliance News) - BMO Private Equity Trust PLC said on Wednesday that it outperformed its benchmark, as it declared a higher annual dividend payout.
For 2019, the trust, which invests in private equity funds, reported a share price total return of 24% and a net asset value total return of 11%. For comparison, the FTSE All-Share Index returned 19%.
BMO's net asset value per share as at the end of December was 411.51 pence from 386.29p the same date the year before. The share price at the end of 2019 was 375.50p per share. On Wednesday, the shares were trading 8.6% lower at 363.70 pence each.
During the year, the trust made new investments totalling GBP65.1 million, while realisations and associated income totalled GBP46.3 million.
BMO Private Equity declared a total dividend of 15.33p per share, up 6.7% from 14.37p declared the year before.
Looking ahead, the trust said it has "substantial" financial resources o get it through the period of disruption arising from the Covid-19 outbreak.
"This situation is without precedent in modern history and although the impact appears to be very substantial and widespread it is also likely to be limited to the short or medium term. Private equity is a classically long-term asset class and the actions of our private equity investment partners will be focused on short term management of the crisis with a view to resuming the trend of long-term value creation, said Chair Mark Tennant.
"Your company has substantial financial and managerial resources at its disposal and these will be used to protect shareholder value.These will also be employed to manage any volatility arising from the continuing Brexit process," Tennant added.
By Ife Taiwo; [email protected]
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