LONDON (Alliance News) - Keystone Investment Trust PLC said Tuesday that a poor performance relative to its benchmark in its most recent financial year was driven by a lack of holdings in rebounding mining and oil and gas stocks.
Keystone reported a total return on a net asset value per share basis of 5.2% for its financial year ended September 30. In comparison, the FTSE All-Share Index returned 16.8% over the same period.
The company's net asset value per share, with debt at fair value, stood at 1,894.9 pence at September 30, increased by 1.5% from 1,867.1p at the same date in 2015.
The company's share price stood at 1,735.5p at September 30, having fallen by 2.3% from 1,776.0p at the same date in 2015. The share price discount to net asset value widened to 8.4% at the end of the financial year, having started it at 4.9%.
Shares in Keystone Investment Trust closed down 0.9% at 1,625.00p Tuesday.
Keystone noted that its performance over the financial year was harmed by a lack of mining stocks and low exposure to the oil and gas sector, during a period where those stocks rallied strongly.
The trust's investment manager, Mark Barnett, of Invesco Asset Management Ltd, said that lack of profit growth, a more difficult economic situation for the UK and political shocks all had the potential to force a reassessment of current UK stock valuations.
By Adam Clark; adamclark@alliancenews.com
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