6th Dec 2019 11:53
(Alliance News) - BMO UK High Income Trust PLC said Friday it outperformed its benchmark in the first half, with "significantly more contribution" in September and October.
For the six months to September 30, the investment trust reported a net asset value total return of 4.7%, ahead of its benchmark - FTSE All-Share Index - which reported a return of 4.6%.
Net asset value per share at September 30 was 104.66 pence, compared to 102.39p at March 31.
The company said it expects to declare a dividend of 5.21 pence for the year ending March 31, 2020, a 3.4% increase compared to 5.04 pence a year ago.
BMO UK High Income Trust said it has concentrated the investment portfolio and, in the process, improved the quality of the holdings, and now has the appropriate balance between diversification and conviction.
John Evans, chair of the company, said: "While the period in question has seen performance track in line with the benchmark, we have seen a significantly more positive contribution in September and October. This more optimistic backdrop was driven by a potential Brexit resolution, however further uncertainty now exists with the general election process underway in the UK."
"Despite this backdrop there has been an increase in the level of corporate activity in the UK which may be another indicator that good value exists in this asset class and it is encouraging that a wider range of investors appear to share this view," Evans said.
BMO UK High Income Trust shares were 0.2% lower in London at 96.81 pence each on Friday.
By Loreta Juodagalvyte; [email protected]
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