13th Feb 2020 18:39
(Alliance News) - City of London Investment Trust PLC said Thursday it outperformed its benchmark in the first half of its financial year, on a stronger UK market and investment portfolio.
For the six months to the end of December, the investment trust's net asset value total return was 5.9%, compared to the FTSE All-Share Index which returned 5.5%.
City of London Investment's net asset value per share as at December 31 was 435.7 pence, up from 421.2p at the end of June.
The trust's share price at the end of December was 443.5p, reflecting a 1.8% premium to net asset value.
Shares in City of London Investment Trust closed 1.1% lower at 432.00 pence, having declined further since the period-end.
City of London said the UK equity market performed well during the second half of 2019, driven by the general election outcome, US interest rate cuts and strong performances from Wall Street shares.
Portfolio-wise, the biggest sector contributor was having a below average exposure to the oil sector, while the second biggest contributor was from housebuilding, with robust performances from Taylor Wimpey PLC and Persimmon PLC.
The top stock performer in the portfolio was pub group Greene King PLC, following its takeover by CK Asset Holdings.
"The end of the UK's political paralysis is likely to lead to improved business and consumer confidence. While Brexit is settled with the UK having left the European Union, the future trading relationship is unclear and this uncertainty might be a brake on investment intentions and the more optimistic outlook," said Chair Philip Remnant.
"There is some limited scope for further interest rate cuts for the UK, but further stimulus to economic growth could come from an expanding fiscal deficit, especially given pledges made in the Conservative election manifesto. Globally, growth could continue to be lacklustre, partly because of tensions over tariffs and the spread of the Coronavirus," Remnant added.
By Dayo Laniyan; [email protected]
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