15th Aug 2018 12:37
LONDON (Alliance News) - City Merchants High Yield Trust Ltd on Wednesday warned on Brexit uncertainties as its net asset value declined in the first half of 2018.
For the six months to the end of June, net asset value per share came in at 187.52 pence, down from 195.40p the year prior.
NAV total return was negative 1.5%. By comparison, the Bank of America Merrill Lynch European Currency High Yield Index returned negative 1.0% during this period, and the average return for funds in the Investment Association Sterling Strategic Bond sector was negative 1.5%.
Share price stood at 191.00p at the end of the period, representing a 1.9% discount to NAV, narrowed versus a 2.1% discount a year earlier.
The stock was trading 0.1% higher on the day Wednesday at 191.00 pence per share.
City Merchants maintained its interim payout at 5p per share.
Looking forward, the company said it saw some positive developments within credit markets in recent months. In the UK, the investment activity has rebounded from the slowdown in the first months of the year, while the market growth has also stabilised within the Euro bloc.
"The board believes a note of caution continues to be appropriate," said Chairman Tim Scholefield. "Brexit remains very much a 'wild card', and will no doubt continue to dominate the political landscape for the foreseeable future."
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