26th Feb 2015 11:25
LONDON (Alliance News) - City Natural Resources High Yield Trust PLC Thursday said it had underperformed its benchmark index in the half year to end-December, hampered by a move down in commodity prices, particularly the price of oil.
The trust posted a negative total return on net asset value per share of 18.3%, compared to a negative total return of 9.7% from the company's benchmark index.
Despite this performance the trust noted it was "not alone in the maelstrom." "It is sobering to note that despite the fall in the net asset value, your company was first, over 2014, in its peer group of eight funds," it said.
The trust said that the stronger dollar is a "major headwind for all commodities and resource equities", but it believes this is masking supply constraints which have been built up over the last four years.
"Margin expansion is being witnessed in producing mines and developers are also reporting significant savings when building projects. The Company's focus remains on those companies with tier one assets and sound balance sheets," the trust said.
Shares in City Natural Resources are trading down 1.4% at 104.50 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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