LONDON (Alliance News) - British Empire Trust PLC, which aims to grow capital for shareholders by investing in companies whose shares trade at below book value, Tuesday said should make "good progress" despite the threat of market volatility ahead of the UK's June 23 referendum on whether or not to remain a member of the EU and the US presidential election in November.
The investment trust reported that its net asset value per share on a total return basis increased by 5.6% in the six months ended March 31, while its share price total return was 4.6%. The MSCI All Country World ex-US index, its benchmark, rose by 8.6% in the same period. The trust maintained an interim dividend of 2.0p.
Joe Bauernfreund became the manager of British Empire Trust's investments in October 2015. He joined the trust's investment manager Asset Value Investors in 2002.
"Predictions about the short-term outlook for markets and currencies are unusually difficult - given the uncertainty of the outcome, and the importance, of the referendum on Britain's relationship with the European Union and the outcome of the US presidential election. In addition, the level of economic activity remains patchy in many countries, and the effect of the possible unwinding of the quantitative easing experiment remains unknown," Chairman Strone Macpherson said in a statement.
"That said, AVI has increased its exposure to those particular companies which it has thoroughly researched and are the hallmark of its value investing style. The board shares AVI's confidence that there is real value in the portfolio and that British Empire Trust should make good progress despite the volatility which may lie ahead," Macpherson said.
Shares in British Empire Trust were up 0.2% at 465.50 pence on Tuesday morning.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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