4th Jul 2019 15:09
(Alliance News) - Miton Global Opportunities PLC on Thursday said its net asset value was almost unchanged in its most recent year, with property the strongest contributor and India the main detractor.
Miton Global invests predominantly in closed-ended investment funds and, as at April 30, its net asset value per share stood at 275.6 pence, down 0.3% from 276.4p the year before.
The firm has no equity benchmark and does not invest with reference to a benchmark.
However, it does have a new formal cash benchmark in the 2-month SONIA plus 2% and this rose by 2.7% in Miton Global's year. Previously, Miton Global's formal cash benchmark was Sterling 2-month LIBOR plus 2% but this was changed at an October general meeting.
The investor said that, despite the sector being "resolutely out of favour", property was is main positive contributor, as Macau Property Opportunities Fund Ltd returned cash from a retail development sale and Alpha Real Trust Ltd sold a Frankfurt data centre and Leeds private rental scheme.
India proved the main drag on performance as India Capital Growth Fund Ltd ended up being "one of the worst performers over the year" due to a volatile pre-election market with fears that Prime Minister Modi might be ousted.
No dividend was recommended, in keeping with its prior year, and Miton Global intends to only pay dividends if required to maintain its status as an investment trust.
Shareholders were given the opportunity to realise their investment in the company's annual period, with only 1.6% of them choosing to do so.
Chair Richard Davidson said: "Change within the sector seems to be accelerating and the ongoing consolidation of wealth managers is continuing to lead to changes in investment company shareholder lists. In addition, as interest rates remain low, the attractiveness of alternative assets in the investment trust world has been higher than historically. Investment trusts remain an ideal vehicle for such assets but all trusts are liable to discounts to NAV developing at some point and creating opportunity for our shareholders. A glance down the company's investments shows that we are far from a fund of equity funds.
"Following the realisation exercise last year, the company is now on a much stronger footing for the next phase in its development and your board continues to believe that the long-term investor will be well rewarded," Davidson added.
Shares in Miton Global were down 0.1% at 267.18 pence on Thursday afternoon.
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