(Alliance News) - Keystone Investment Trust PLC on Thursday said it failed to beats its benchmark for the fourth year in a row, with McBride PLC the biggest drag on performance.
Total return on underlying net asset value per share for Keysonte's year ended September 30 was 1.1% with debt at market value, while the FTSE All-Share Index posted a 2.7% return. McBride was its weakest performer.
"McBride made the biggest negative contribution to returns in the year in the wake of three profit warnings. This resulted mainly from the company's inability to pass through input cost inflation, exacerbated by the weakness of sterling, to end customers. The second warning saw the CEO resign," said Portfolio Manager James Goldstone.
Ultimately, Keystone has opted to maintain its McBride holding, believing that McBride's market share will ultimately boost pricing power and that its competitors are especially weak.
The total interim dividend per share for the financial year was 3.3% higher at 59.67p versus 57.75p previously.
NAV per share fell 3.1% to 1,862.4 pence on September 30 from 1,921.7p the year before.
Chair Karen Brade said: "Although the outlook for the UK remains uncertain, not least because of Brexit, the board is confident that James Goldstone, employing his differentiated investment approach anchored in value, has positioned the portfolio to generate worthwhile returns over time and enable the company to fulfil its investment objective to provide shareholders with long term growth of capital."
Shares in Keystone closed up 0.5% at 1,625.00p in London on Thursday.
By Anna Farley; annafarley@alliancenews.com
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