1st Nov 2019 16:24
(Alliance News) - Value & Income Trust PLC on Friday said it slightly outperformed the FTSE All Share Index in the first half of its financial year thanks to its sector allocation, including an underweight positions in oil producers and tobacco and overweight position in personal goods.
The company's objective is to provide long-term returns exceeding the FTSE All Share, which it achieved in the six months ended September 30 with its 4.8% total return compared to the index's 4.5% return.
"The main positive sector influences were the underweight positions in tobacco and oil producers and the overweight in personal goods, although these were somewhat offset by the underweight position in pharmaceuticals," said the trust's investment manager, Patrick Harrington.
Net asset value per share - valuing debt at market value - rose 1.5% to 316.73 pence from 312.16p on March 31, though it was down 4.2% year-on-year from 330.46p. Valuing debt at par, NAV per share rose 1.6% to 337.71p from 332.45p in March but was down 3.4% from 349.70p the year before.
Value & Income has declared a second quarterly dividend of 2.9p per share, taking the total for its first and second interim dividends up 3.6% to 5.9p per share versus 5.6p the year before. Another 2.9p per share third quarter dividend will be paid in April 2020.
Harrington said: "To the overseas investor the UK looks good value compared to overseas markets, with the pound trading at a severely reduced exchange rate since the EU Referendum in June 2016."
"As a consequence of this we have seen a number of bids for UK companies including the recently announced takeover of Greene King by a well-known Hong Kong based investor," Harrington added. "Until the shape of Brexit is determined, much uncertainly will overhang our market but we do believe that investors will take advantage of the low valuation once the future of our relationship with Europe has been resolved."
Shares in Value & Income were up 1.8% at 258.00p in London on Friday afternoon.
By Anna Farley; [email protected]
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