12th May 2015 12:38
LONDON (Alliance News) - Keystone Investment Trust PLC, a trust managed by Invesco Fund Managers Ltd, Tuesday said its net asset value with debt at fair value increased in the first half of its financial year.
The trust, which aims to generate long-term capital growth for shareholders primarily by investing in the UK, said its NAV with debt at fair value increased 7.8% on a total return basis in the six months ended March 31. NAV with debt at face value increased 8.2% on a total return basis. Its mid-market share price increased 7.2% over the same period, while the FTSE All-Share Index increased 5.3%.
"The recent performance of the UK equity market has seen further strong positive returns, with the FTSE All-Share Index recently hitting a new all-time high, which makes the near term outlook more subdued. The continued re-rating of equities primarily as a result of the policies of central banks has resulted in boosting asset values to the point where the market looks more fully valued than for many years. This high level of valuation coupled with a low level of earnings growth is the primary risk to the current level of share prices," Mark Barnett, portfolio manager, said in a statement.
"Furthermore, the increased probability of a change in monetary policy from the US central bank represents a more difficult back drop for government bond markets which will inevitably have a knock-on impact into equities," the portfolio manager said.
Barnett said the Conservative Party's surprise majority victory in last week's UK General Election was positive for business but warned of the risks of the party's plan to hold a referendum on EU membership, as well as concerns around the Scottish Nationalist Party, which won 56 of the 59 seats available in Scotland.
"Notwithstanding the challenging backdrop, the portfolio remains well positioned to prosper in this environment of continued low interest rates and low nominal GDP growth," the portfolio manager said.
Keystone Investment Trust shares were down 0.8% at 1,830 pence on Tuesday.
By Samuel Agini; [email protected]; @samuelagini
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