12th May 2020 12:46
(Alliance News) - Finsbury Growth & Income Trust PLC said Tuesday it outperformed its benchmark for the first half of its financial year, but expressed disappointment at a negative return due to growing Covid-19-related market uncertainty.
For the six months to the end of March, the investment trust reported a net asset value negative return of 18.7%, compared to the FTSE All-Share Index, which made a negative return of 22.0%.
As at March 31, net asset value per share was 753.4 pence, down 9.0% from 827.6p the same date the year before, and 19% from 935.6p as at September 30.
Finsbury's Growth's share price at the end of March was 760.0p, reflecting a premium of 0.9% to net asset value.
Shares in the investment trust were up 1.6% at 807.00 pence on Tuesday in London.
Despite Finsbury's outperformance in the period, its results were still affected by the Covid-19 pandemic, with the disruption and uncertainty putting a virtual stranglehold on a lot of companies, and their ability to grow.
The trust said that it was partially protected due to having no direct exposure, and owning consumer brands that are competitively positioned with sustainable returns. Looking ahead, Finsbury expects its portfolio make-up to provide some defensive quality.
Finsbury Growth & Income declared an interim dividend of 8.0 pence per share, in-line with the year before.
In a separate announcement, Non-Executive Director David Hunt has stepped down with immediate effect after 13 years in the role since 2006.
His most recent role was as a partner at investment management firm Smith & Williamson for nine years from 2002 to 2011.
"Your board continues to believe that his strategy of investing for the long-term in durable, cash generative franchises capable of sustained dividend growth will continue to deliver sustainable
investment returns to shareholders, albeit that we may have to endure turbulence for some time yet," said Chair Anthony Townsend.
By Dayo Laniyan; [email protected]
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