9th Apr 2020 14:19
(Alliance News) - Dunedin Income Growth Investment Trust PLC on Thursday said it outperformed its benchmark in 2019, helped by stock selection and financial gearing on asset prices.
The UK companies investor's net asset value total return for its year ended January 31 was 22%, well ahead of its benchmark, the FTSE All-Share Index.
"This was driven by out-performance from the portfolio, primarily due to stock selection and the benefit of financial gearing on rising asset prices. Whilst gearing levels were relatively modest during the year, its impact contributed 2.3% to the outperformance of 11.5%," explained Chair David Barron.
Dunedin had been intending to hold its annual general meeting on May 21, but has chosen to delay this to July 16 and has discouraged in-person attendance.
Having declared a fourth interim dividend of 3.7p per share, the annual dividend per share increased 2.0% to 12.70 pence from 12.45p. This was proposed as a fourth interim rather than a final dividend to "avoid any uncertainty regarding the payment of the dividend in the event that the AGM is postponed".
Barron said: "We do not know the length or depth of the downturn in the global economy, and many businesses continue to operate strongly, with robust balance sheets. There will be clear corporate winners and losers as a consequence of the coronavirus pandemic with business weakness being exposed more rapidly than in the past. Economic and political conditions are likely to be quite different but, as always after a significant economic dislocation, there will be real opportunities. With a clear strategy and skilful execution, we believe your company can continue to prosper."
Shares in Dunedin were up 2.1% at 248.00p in London on Thursday afternoon.
By Anna Farley; [email protected]
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