(Alliance News) - Alliance Trust PLC on Friday declared an increased dividend as it said it outperformed its benchmark in 2019.
The trust reported net asset value total return for the year of 23%, outperforming its benchmark, the MSCI All Country World Index, which returned of 22%.
NAV per share as at December 31 was 875.9 pence, up 21% from 723.6p on the same day in 2018.
Alliance Trust's share price at the end of 2019 was 840.0p, reflecting a discount to net asset value of 4.1%, narrowed from 4.9%.
Shares in Alliance Trust were down 2.8% at 746.60p each on Friday morning in London.
The company declared a fourth interim dividend of 3.49p per share, increasing its annual payout by 3.0% to 13.96p, up from 13.55p paid the year prior.
"2019 was a good year for the trust despite unusual and uncertain times overshadowed by Brexit," said Chair Gregor Stewart.
Alliance Trust said the strongest driver of performance was US-based semiconductor company Qorvo. Chinese tutoring service provider New Oriental Education was the second-best contributor to performance posting impressive growth over the past year, the company said.
It noted that the main detractor during the year was TV-based retail shopping company Qurate Retail Group, which was down 58% for the year.
Looking ahead, Alliance said: "The Chinese and global economy will suffer some short-term cyclical impacts of coronavirus. However, whilst there are a wide number of potential outcomes, we believe that most scenarios lead to modestly improving level of global growth by 2021 and beyond."
"Central banks now have little ammunition left to prevent potential recessionary pressures. This, as well as headwinds from the continued geopolitical risks, the initial shock of the coronavirus, and with US elections and further Brexit trade deal negotiation uncertainty still ahead, may result in subdued equity returns," it added.
"In such uncertain markets, diversification and robust risk management is critical."
By Ife Taiwo; ifetaiwo@alliancenews.com
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