(Alliance News) - City Merchants High Yield Trust Ltd on Monday reported an annual net asset value rise and swung to a positive total return.
Net asset value per share at December 31 rose 7.5% to 192.11 pence each from 178.69p.
Shares in the company were 0.5% lower at 170.60p each in London on Monday afternoon.
The investment company reported a net asset value total return of 13.4%, beating the ICE Bank of America Merrill Lynch European Currency High Yield Index which returned 12.6%. For 2018, the company posted a negative 3.6% total return.
City Merchants High Yield held its payout at 10p per share.
"Despite the huge disruption caused by restrictions on movement, the company has continued to operate smoothly," City Merchants High Yield said, referring to lockdown measures imposed to stop the spread of the Covid-19 outbreak.
"The resulting sudden collapse in economic activity and uncertainty over how the crisis would be resolved led to steep falls in asset prices, and the high yield market experienced losses well into double digits during March. Fortunately, the portfolio entered the crisis on a strong footing with raised cash levels and a defensive stance reflecting the extent to which yields had fallen during 2019."
By Eric Cunha; ericcunha@alliancenews.com
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