29th May 2018 18:35
LONDON (Alliance News) - Value & Income Trust said on Tuesday it underperformed against its benchmark index in its recently ended financial year.
The trust reported a net asset value negative return of 1.6% in the year ended March 31, compared with the FTSE All-Share Index's total return of 22%.
Value & Income said its NAV per share value debt at book value was 330.5 pence, down from 345.5p the year before, value net asset value valuing debt at market value stood at 309.2p, down from 318.1p.
Value & Income's share price as at March 31 was 262.0p, reflecting a discount to net asset value valuing debt at market value at 15%.
Shares in the trust closed down 1.1% at 269.50 pence on Tuesday.
Value & Income declared a total dividend for the year at 11.4 pence per share, up from 11.0p the year before.
Looking ahead, the company believes its valuation of UK quoted equities "offers a reasonable balance between macro-economic and political risks and the attractive income returns".
Value & Income said after the "euphoria" at the beginning of 2018 sentiment "abruptly turned negative" after the move up in US pay growth in January was followed by warning of interest rate increases in the US and UK.
The investment company believes global growth "may not be as fast as expected" due to recent indications Germany's economic growth slowing in 2018.
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