29th May 2025 12:11
(Alliance News) - CT UK Capital & Income Investment Trust PLC on Thursday highlighted "very considerable uncertainty" for the current economic times, for which it is difficult to find a parallel.
CT UK Capital said net asset value per share was 331.45 pence each on March 31, down 3.6% from 343.84p on September 30, 2024.
NAV total return was minus 1.6% in the six months to March 31, underperforming against its benchmark, the FTSE All-Share index, which had a return of plus 4.1%.
The company said: "The headline strength of the UK market was heavily concentrated in a relatively small number of very large companies and this provided a challenging background for our performance. Your investment manager firmly believes that there are more attractive investment opportunities outside of the very largest companies, as many of these smaller companies are both better positioned for long-term growth while also being more attractively valued."
CT UK Capital invests in companies with good long-term prospects with attractive returns on capital, but whose share prices may not reflect this.
The dividend for the financial half is 5.90p per share, up 3.5% from 5.70p a year ago. The company said it was "very aware" of its record of over 31 years of dividend growth, which it highlighted as an important attraction to many shareholders.
Chair Nick McCabe said: "In recent decades it is difficult to think of a parallel for the current economic and geo-political situation and there is very considerable uncertainty as to how this will evolve. However, it is important for investors to focus on the long-term, to try to ignore the noise of current events and not to act hastily. Your investment manager believes valuations are one of the strongest indicators of future investment performance, and on that front the opportunities for the UK stock market and a considerable number of UK companies, look particularly attractive."
CT UK Capital shares were 0.2% lower at 329.50 pence each on Thursday afternoon in London, giving it a market capitalisation of GBP323.4 million.
By Tom Budszus, Alliance News slot editor
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