21st Jun 2016 10:49
LONDON (Alliance News) - Henderson Opportunities Trust PLC on Tuesday said it had underperformed its benchmark in the half year to end-April, although it hiked its interim dividend.
Henderson Opportunities reported a negative total return on net asset value of 2.4% for the half year, whilst its benchmark, the FTSE All-Share Index, was flat.
The trust said its performance against the benchmark was disappointing, but followed a long period of out-performance.
The trust's total return over the past three years was 39%, compared to just 12% from its benchmark, it noted.
Henderson Opportunities attributed the under-performance to market volatility, as worries grew about a global slowdown, weakness in the oil price and other commodities, and the impending UK referendum on whether or not to remain in the European Union.
It proposed an interim dividend of 5.5 pence, up from 5.0p the year before.
Henderson Opportunities Chairman Peter Jones noted that, in writing his statement shortly before the EU referendum on Thursday, he is "acutely aware of the potential market impacts" that might arise after the vote.
"Whatever the outcome, one source of market uncertainty will be removed, and one might expect volatility to reduce somewhat, although nervousness around growth in China and the oil price may well remain for some time. Macroeconomic conditions are beyond our control and, in any case, we always aim to invest in companies with strong management teams that will cope in innovative and productive ways with whatever market conditions their businesses encounter," said Jones in the statement.
Shares in Henderson Opportunities were up 0.9% at 806.03 pence Tuesday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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