LONDON (Alliance News) - BMO UK High Income Trust PLC said Thursday its underperformed against its benchmark for its recently-ended financial year amid considerable market volatility.
For the year to the end of March, the investment trust reported a net asset value total return of 3.5%, compared to the FTSE All-Share Index, which returned 6.0%.
This is the first financial year in which BMO UK High Income has used its new benchmark index, after dropping the FTSE All-Share Capped 5% Index following shareholder approval in July 2018.
Net asset value per share as at March 31 was 102.39 pence, down from 103.75p the same date the year before.
BMO UK High Income's share price at the end of March was 95.00 pence, reflecting a 7.2% discount to net asset value.
Shares in the trust were up 1.0% on Thursday at 95.96p.
Although UK equities delivered a positive return over the year, there was still enough market volatility caused by a weakened global economic backdrop to trigger a sell-off, in turn weakening the trust's performance.
However looking ahead, BMO UK High Income said it is confident in a more positive outcome over the longer term.
BMO UK High Income declared a dividend of 5.04 pence per share, up 3.3% from 4.88p the year before.
"Whilst the short-term performance since we implemented the recent strategy changes has been behind the benchmark, the board and I feel strongly that this was the right course of action and I believe that I am leaving this company well placed to deliver its objective over the next investment cycle," said Chair Iain McLaren.
"We have considered the implications of this for the company and regardless of how Brexit finally materialises we do not consider that it will have a significant impact on the operations of the company," McLaren added.