17th Jun 2015 09:29
LONDON (Alliance News) - Invesco Income Growth Trust PLC on Wednesday said it outperformed its benchmark in the year to end-March, posting a total return on net asset value per share of 10.3%.
The FTSE All-Share Index, the trust's benchmark, delivered a total return of 6.6%.
Invesco Income Growth proposed a final dividend of 3.75 pence per share, which brings its total dividend for the year to 10.10 pence, up from 9.85 pence a year before.
The trust said that, after concerns caused by the strength of sterling, the end of quantitative easing in the US, rising geopolitical risk and pending UK elections in 2014, there was a "renewed sense of optimism" at the start of 2015.
The trust saw positive contributions from a range of companies in its portfolio, in particular the tobacco sector, and life insurance groups.
Detractors in the portfolio included power suppliers Drax Group PLC and Centrica PLC, Tesco PLC and clothing retailer N Brown Group PLC. Invesco Income Growth has subsequently opted to sell its shares in Tesco, as well as its holdings in Domino Printing Sciences PLC, WM Morrison Supermarkets PLC, Smiths Group PLC and Vodafone Group PLC, and most recently Synergy Healthcare PLC.
"The FTSE All-Share Index has risen strongly over the last six years and now stands at an all-time peak level. Although political uncertainty in the UK has been resolved for now, there are other headwinds to withstand in the short term, including weakening demand in the Chinese economy and the political backdrop internationally, but valuations suggest that the long term outlook for returns from investing in the stock market are still attractive," the trust said in a statement.
Shares in Invesco Income Growth Trust are trading up 0.5% at 291.64 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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