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(Alliance News) - abrdn Equity Income Trust PLC on Thursday reported a fall in net asset value per share in its recent financial year, although it continued its impressive dividend record with a 22nd consecutive increase.
abrdn Equity Income is a London-based trust actively investing in UK quoted companies of all sizes.
The investment fund's NAV per share at September 30 was 331.77 pence, 13% lower from 380.84p on the same date last year. Its discount to NAV widened to 8.8% from 8.4% at September 30.
Shares in abrdn Equity Income were trading 4.6% higher at 341.94 pence each in London on Thursday morning.
The company said that despite "tumultuous conditions", the UK equity market was "relatively resilient". Its benchmark index, the FTSE All-Share Index, returned minus 4.0% over the period whereas the company's net asset value total return was minus 7.6%.
The main detractors were financial companies, in particular small and mid cap holdings, with Close Brothers Group PLC, Premier Miton Group PLC and R&Q Insurance Holdings Ltd all suffering, albeit for different reasons. Overall the financial sector detracted just over 7% from relative performance.
On the positive side, the largest contributors were energy companies, which contributed over 7% to relative performance.
abrdn Equity Income's total dividend for the year was 22.70p per share, up 7.1% from 21.20p last year. This was the 22nd consecutive year of dividend increases. It said it expected that, in the absence of any adverse circumstances, it will pay a dividend of at least 22.80p per share in the coming financial year.
Portfolio Manger Thomas Moore said: "Amongst all the political 'fear and loathing', it is worth keeping in mind that the UK has many enduring strengths that make it a highly attractive destination for international capital. As has been demonstrated by all the recent M&A activity in our own portfolio, some international investors are coming to the view that UK companies are now attractively priced. It would not take much for broader attitudes to the UK to improve dramatically."
By Chris Dorrell; chrisdorrell@alliancenews.com
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