27th May 2020 13:03
(Alliance News) - Capital Gearing Trust PLC upped its payout, it reported on Wednesday, after registering a slight annual rise in net asset value per share.
Net asset value per share at April 5 was 0.1% higher at 4,084.2 pence, from 4,082.0p in the year prior. Its net asset value had peaked at 4,382p however, before slipping as a result of the Covid-19 induced "cataclysm that ensued".
Its shares continued to trade at a premium to NAV, its share price at April 5 was 4,190.0p, a 2.6% premium to its NAV, widened from 2.2% in the year prior.
The stock was 0.4% higher at 4,355.00p on Wednesday afternoon in London, a 6.6% premium to the April NAV.
Capital Gearing reported a total return of 0.8%, beating the MSCI UK Index which lost 25%.
The investment trust raised its ordinary dividend by 8.7% to 25p from 23p. Further, it upped its special payout by 42% to 17p from 12p.
Capital Gearing said: "There can scarcely be a point in time when the crystal ball has seemed so cloudy. Governments and central banks have acted swiftly to support countries and economic sectors operating in either lockdown or severely constrained mode. Currently equity markets are exhibiting fragile optimism that any recession will be mostly very short-lived, perhaps for a quarter or two at worst. However, commodities and energy markets appear to be signalling greater pessimism."
By Eric Cunha; [email protected]
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