25th Oct 2018 12:05
LONDON (Alliance News) - City Natural Resources High Yield Trust PLC on Thursday said it fell behind its index in its most recent year, blaming this on the US' trade policy.
In its year ended June 30, the mining and resource investor posted a net asset value total return of 12% for its year.
This lagged behind the 17% return of its benchmark, a composite weighted two-thirds to the Euromoney Global Mining Index and one third to the sterling-adjusted Credit Suisse High Yield Index.
Net asset value per share stood at 142.35 pence on June 30, up from 132.69p year-on-year.
The trust said by mid-January its net asset value had risen 20% on the back of the US stimulus package.
However, the high tariffs on steel and aluminium imports from China, which US President Donald Trump announced in April, was blamed by City Natural Resources for leaving it with a more modest net asset value increase of 7.2%.
The trust's investment manager said these tariffs were part of a "confrontational trade policy" that undermined global growth, the effects of which could be seen in the fund net asset value.
City Natural Resources' total dividend payments for its financial year came to 5.60 pence per share, equal to its previous year. The annual dividend target for its current year is also 5.60 pence per share.
Cash and cash equivalents increased slightly, standing at to GBP7.7 million at the end of its year, up from GBP7.4 million the year before.
"It remains difficult to look beyond President Trump and the policies of the US administration," said Chairman Richard Prickett.
"The future, however, looks full of opportunity, and these are just the conditions that your company is designed to take advantage of," Prickett added.
Shares in City Natural Resources were up 1.0% at 99.11 pence on Thursday.
Related Shares:
CQS Natural Resources Growth & Income