Net asset value remains flat in challenging market conditions, as Company takes advantage of attractive valuations.
BMO UK High Income Trust PLC today announces its audited financial results for the year ended 31 March 2022.
- 6.3% and 6.2% yield on Ordinary shares and B shares respectively, well-ahead of the 3.1% yield from the FTSE All-Share Index. Total dividend payments increased by 2.8% compared to the prior year, reflecting our confidence in the future revenue generation
- Net Asset Value (NAV) total return per share of 1.9%, compared to the FTSE All-Share Index total return of 13.0%
- Share price total returns of 0.6% and 1.6% for Ordinary shares and B shares respectively
Chairman John Evans commented: “The underperformance occurred in the second half of the financial year during a period that saw strong performances from a number of large sectors that the Company was either underweight or had no exposure to at all. Until then, performance was comparable to the benchmark index. In particular, following the invasion of Ukraine by Russian forces, the oil and gas and mining sectors reacted very positively to rising oil & gas prices and a surge in other commodity prices.”
Fund manager Philip Webster commented: “In the past few years, we have built a portfolio that will not behave like the index, or our peers who are in the main, value investors. We have looked at this as a perfect environment to position the portfolio as fear dominates the backdrop, by taking the opportunity to initiate quality growth positions at valuations I haven’t seen since I took over the investment management for the Trust.
“The investment portfolio therefore faced a perfect storm of events which I do not believe will recur in the comings years. I’m not saying this is an easy path to walk in the short term, but quality business models, at current attractive valuations, will emerge in a stronger competitive position.”