LONDON (Alliance News) - F&C Capital and Income Investment Trust PLC on Friday said it has increased its dividend for the 22nd consecutive year, as it outperformed its benchmark index.
The trust's net asset value per share on a total return basis rose by 3.5%, while the FTSE All-Share Index fell by 2.3% in the year ended September 30. The share price total return was 3.1%. The trust increased its dividend to 10.10 pence from 9.85p.
Over three years, the NAV total return rose by 26.6% while the index rose by 23.3%. Over five years, the NAV total return rose by 46.5% with the index posting a gain of 38.2%.
"Normalisation of interest rates is still some way off and despite the rhetoric, the UK budget deficit remains troubling. Markets are likely to remain somewhat schizophrenic, responding on the one hand to the continuing monetary stimulus, while on the other being startled by unexpected global macro-economic and political events," Chairman Steven Bates said in a statement.
The chairman said that UK stock markets are "not especially expensive" by global standards.
"Given that the effect of unorthodox monetary policy seems to be waning, the market is becoming increasingly sensitive to the tide of global events. This partly reflects the highly international dimension of the UK's major businesses, but also the increasing correlation of global markets, itself probably a reflection of monetary policy worldwide," Bates said.
"It is of course foolish to attempt to forecast anything, but it does seem likely that interest rates will soon rise in the US even though the economy is not especially robust, while elsewhere the economic status quo ante looks set to persist. Having said that, I am reminded of JK Galbraith, who said: 'The only function of economic forecasting is to make astrology look respectable.'," Bates added.
Shares in the trust were untraded on Friday, having last traded at 266.125 pence.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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