23rd Feb 2015 18:17
LONDON (Alliance News) - New Star Investment Trust PLC Monday said its net asset value rose by 1.5% in the first half of the financial year and said its investments should provide an important source of diversification if the economic outlook worsens.
The company said its net asset value rose by 1.5% over the six months ended December 31, taking the net asset value per share to 108.92 pence. In comparison, the company's comparative index, the Investment Associations Mixed Investment 40% to 85% shares index gained 3.4% in the period.
New Star said it generated a "revenue profit" of GBP128,000 in the six month period, and reiterated that it has no debt. New Star did not recommend paying an interim dividend, it said.
"During the period under review, the company's shares continued to trade at a significant discount to their net asset value. Your board has explored various possibilities with a view to reducing this discount but no satisfactory solution has been found. This position is, however, kept under continual review by your directors," it said in a statement.
New Star said the potential for negative surprises has increased as a result of falling inflation, sharp falls in commodity prices and heightened currency volatility, but said the company's investment in dollars, gold and gold securities will provide "an important source of diversification" should the economic outlook worsen, it said.
"Overall, however, your investment manager remains positive about the prospects for equities in 2015 as central banks continue to expand monetary support and lower energy costs prove supportive for global growth," said New Star.
New Star shares closed down 5.7% to 66.45 pence per share on Monday.
By Joshua Warner; [email protected]; @JoshAlliance
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