23rd Nov 2018 09:07
LONDON (Alliance News) - Personal Assets Trust PLC on Friday said its net asset value grew in the first half of its current financial year, helped by strong performance in its US portfolio.
NAV per share rose to 39,550 pence a share in the six months to the end of October from 38,821p reported as at April 30.
Personal Assets Trust's share price at the end of the period was 40,000p, representing a premium of 1.1% to NAV.
The stock was trading 0.2% higher on Friday at 39,783.00p a share.
NAV total return was 1.9% for the first half, while the company's benchmark, FTSE All-Share Index, returned negative 5.4%.
Personal Assets Trust said it paid two interim dividends of 140p a share in July and October. It plans to pay further two interim dividends of 140p each in January and April next year, taking the total payout for its financial year to 560p a share.
Investment income grew in the first half to GBP9.0 million from GBP6.8 million reported for the same period a year earlier. Pretax profit totalled GBP22.6 million, more than doubled compared to GBP9.1 million reported a year ago.
Personal Assets Trust noted that its holdings in the US performed respectably, particularly Microsoft Corp, Philip Morris International Inc, Procter & Gamble Co and Coca-Cola Co.
Meanwhile, its UK stocks lagged, including British American Tobacco PLC and Sage Group PLC, with the latter suffering from "over-promising and under-delivering".
In the first half, Personal Assets Trust said it made only "very modest" changes in its portfolio. The company lifted its stake in mining company Franco-Nevada Corp.
In addition, Personal Assets Trust sold its entire holding in US chocolate manufacturer Hershey Co, initiated 18 months ago. Hershey agreed to acquire Amplify Snack Brands in December. Personal Assets Trust said it tends to avoid companies which make expensive acquisitions by over-levering their balance sheets.
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