25th Nov 2019 11:59
(Alliance News) - Troy Income & Growth Trust PLC on Monday said it was able to outperform it benchmark in the twelve month period ended September 30.
At September 30, the trust's NAV per share stood at 83.50 pence compared to 79.04p at the same point a year prior, a 5.6% increase.
Troy Income & Growth's net assets grew 9.5% to GBP245.5 million from GBP224.1 million. During the period, the trust issued a net total of 10.5 million shares, explaining the discrepancy.
In the twelve months to September 30, Troy declared three interim dividends of 0.685p, followed a final dividend of 0.695p, giving a total dividend of 2.75p. Which is a year on year increase of 3.2%.
Troy's NAV total return was 9.7%, significantly ahead of its benchmark - the FTSE All-Share Index - which added 2.7% over the same period.
Chair David Warnock said: "The year was impacted by the weakness of many equity markets in the final calendar quarter of 2018; a period during which the NAV fell by significantly less than the UK equity market as a whole. While the year was a good one for the company in both absolute and relative terms, the board remains predominantly interested in longer-term performance."
The trust's investment manager, Troy Asset Management, added: "In the second half of the company's year a more dovish monetary stance by the US Federal Reserve, combined with the weakness of sterling, meant consumer staples, and in particular, our overseas holdings in that sector, were again the largest contributors to returns."
The manager cited Nestle SA, Procter & Gamble Co and Coca-Cola Co as all returning over 20%, while Unilever PLC - the trust's largest holding - returned 13%.
Troy Asset Management said the trust's Energy holdings were the only sector which did not make a positive contribution.
Looking ahead, the manager said: "As ever, we emphasise our examination of stock-specific investment cases over 'macro' positioning but recognise that changing economic conditions have historically provided some of the best opportunities to make long-term investments in high-quality businesses. We look forward to continue uncovering these opportunities on shareholders' behalf."
Shares in Troy Income & Growth were 1.0% higher in London on Monday at 83.59 pence each.
By Paul McGowan; [email protected]
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