20th Nov 2018 13:58
LONDON (Alliance News) - Investment trust Shires Income PLC held its second quarterly dividend Tuesday after its interim asset value rose amid volatile markets.
For the six months ended September, net asset value per share increased to 272.68 pence from 268.24p six months earlier. The net asset value discount widened to 7.2% from 3.1%, however, as the share price ended the period 2.7% lower at 253.00p.
Shares in Shires Income were 0.1% lower at 237.36 pence on Tuesday.
During the period, the firm added five new equity investments: John Laing Group PLC, GVC PLC, Bodycote PLC, Ashmore PLC and Countryside Properties PLC. In turn, it exited its investments in UK-listed Sage PLC and Rolls Royce PLC as well as Nestle SA.
"Since the end of the period, there has been increased volatility in markets, with a combination of rising interest rates and global geopolitical concerns causing some material sector and stock moves," Shires Chairman Robert Talbut said. "However, with economic growth globally still positive and earnings growth remaining strong, the manager remains reasonably confident on the potential for equities to deliver positive returns."
"While the UK economy continues to move at a slower pace than many developed economies, there are clear attractions to UK equities and the manager recently upgraded the UK to be its preferred equity market," Talbut added. "Brexit worries have driven international investors away from the UK and the market is relatively inexpensive. While the shape of Brexit remains uncertain, many companies are insulated by their overseas earnings and dividends paid by UK companies are a significant contributor to total return."
Shires proposed a 3.0 pence per share second quarterly dividend per share, flat on the year prior.
"The board continues to believe that the company's portfolio is well diversified in terms of asset class, sector and geographic exposure and that, despite the various uncertainties facing markets at the current time, the investment manager's focus on investing in good quality companies with strong fundamentals should benefit the portfolio over the longer term in meeting the company's investment objective," Talbut concluded.
Related Shares:
Shires Inc.