17th Sep 2015 16:15
LONDON (Alliance News) - The City of London Investment Trust PLC on Thursday said its net asset value per share rose in the year to the end of June, driven by a steady performance in the US and UK and an improvement in conditions in the European Union, plus its exposure to the buoyant UK housebuilding sector.
The trust, which invests in UK stocks with a bias to the FTSE 100, said its net asset value per share at the end of June was 386.3 pence, up from 377.5p a year earlier. Its net asset value per share total return in the year was sharply down year-on-year, at 6.4% compared to 15%, but this was enough to outpace the 6.2% rise in the AIC UK Equity Income Sector index, its benchmark, and was ahead of the 2.6% rise in the FTSE All-Share.
The trust said economic growth in the UK and US was robust in the year, while the outlook in the European economy improved following the start of the European Central Bank's quantitative easing programme.
The trust benefited from being relatively light on oil and gas-related stocks, which suffered from the collapse of the oil price over the year. Its best performing holdings were housebuilders Taylor Wimpey PLC, Persimmon PLC and Berkeley Group Holdings PLC, and it alos was boosted by good performances from real estate investors British Land Co PLC and Land Securities Group PLC.
"I am confident that City of London's strategy, which is focussed on providing long-term growth in income and capital, will continue to enhance shareholder value over the longer term," said Philip Remnant, the trust's chairman.
Shares in the trust closed down 0.3% to 381.00 pence on Thursday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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