LONDON (Alliance News) - City Merchants High Yield Trust Ltd on Wednesday said its net asset value per share grew in the first half of 2015, while its NAV total return beat its benchmark.
The investment trust, which invests in high-yielding fixed-interest securities, said its NAV per share at June 30 was 183.71 pence, up from 183.40p at December 31. Its NAV total return was up 2.9%, compared with a 2.2% rise from the Investment Association Sterling Strategic Bond sector. However, its share price fell to 187.00p from 189.25p at the end of December.
"We remain cautious in our outlook and retain an overall defensive stance in the portfolio. While default rates are low and likely to remain low for the next couple of years, the enhanced returns potentially available for taking a high level of credit risk is poor," the company said in a statement.
"That said there are pockets of value, particularly within the financial sector and corporate hybrids. The periodic bouts of volatility we are seeing are presenting some opportunities but these are limited and, in our view, it remains very important to be selective. In this low yield environment we remain focused on seeking to deliver an attractive level of income," City Merchants added.
Shares in City Merchants were untraded on Wednesday afternoon, last trading at 162.44p.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
Copyright 2015 Alliance News Limited. All Rights Reserved.