12th Jul 2016 14:26
LONDON (Alliance News) - The Independent Investment Trust PLC Tuesday said it outperformed its benchmark indices during the first half of the year and more than doubled its dividend, but the trust's net asset value has declined during the second half.
The trust, which invests in both UK and international quoted securities alongside index futures, said it delivered a net asset value total return of 5.7% in the six month period to the end of May, outperforming both of the trust's benchmark indices.
The FTSE All Share Index and the FTSE World Index delivered total returns of 0.1% and 3.9%, respectively.
The net asset value rose to 400.3 pence at the end of the period from 390.1 pence, and the share price closed the period at 397.25 pence from the 363.0 pence at the end of November, causing the discount to drop to 3.3% from 6.9%.
"On the face of it this was a respectable outcome, but it has been overshadowed by the impact on our portfolio of the result of the referendum on membership of the EU," said the trust.
On Monday, the net asset value had declined to 338.1 pence, almost 16% lower than at the end of May.
Independent Investment Trust shares were trading up 3.2% 339.80 pence per share on Tuesday, over 14% higher than at the end of the first half.
Earnings for the period fell to 4.28 pence per share from 4.79 pence and the trust will pay an interim dividend of 5.0 pence, 1.5 times higher than the 2.0 pence paid the year before.
"As always, the outcome for the year will be influenced by our activity in the second half, but it is likely that any further payment will be weighted in favour of a special dividend rather than a regular one," said the trust.
By Joshua Warner; [email protected]; @JoshAlliance
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