13th Mar 2019 12:33
LONDON (Alliance News) - EP Global Opportunities Trust PLC said on Wednesday it underperformed against its comparative index for 2018, which the trust regarded as a "challenging year".
In a separate announcement, the trust has appointed Tom Walker as non-executive director with effect on April 1.
He joins as Non-Executive Giles Weaver is set to retire on April 24, after eight years in the role since 2011.
EP Global's reported a net asset value per share as at December 31 was 308.8 pence, down 8.6% from 337.7p for the same date the year before. With dividends re-invested, this resulted in a negative return of 7.1%.
Though it has no official benchmark, the FTSE All-World Index reported a negative return of 3.4%
In 2017, EP Global saw a total return of 14.4%.
EP Global's share price at the end of 2018 was 301.5 pence, reflecting a discount to net asset value of 2.3%, narrowed from 5.2% the year before.
Shares in EP Global were untraded on Wednesday, last quoted at 305.00 pence, having improved slightly since the year-end.
EP Global said its performance was hampered by its low exposure to US growth stocks which outperformed in the year, as well as macroeconomic conditions, including rising interest rates, and a slowdown in China's rate of economic growth.
EP Global declared a final ordinary dividend of 5.5 pence per share, and a special dividend of 1.0p, bringing the total payout to 6.5 pence, up 23% from 5.3p the year before.
"While there continues to be positive growth within the global economy there has been a recent revision downwards in forecasts for 2019, as a consequence of a number of factors, including the imposition of trade tariffs, particularly between the US and China, and possibly between the US and Europe, a slowing in the Chinese economy and uncertainty relating to the potential UK exit from the European Union," said Chair Teddy Tulloch.
"Given the increasing uncertainty within the global equity market and the relatively high valuations of equity markets, our Investment Manager has taken a more cautious investment stance, gradually reducing the exposure to equities and increasing cash balances," Tulloch added.
Related Shares:
EPG.L