LONDON (Alliance News) - The Monks Investment Trust PLC Thursday said it underperformed the FTSE World Index in the year to end-April, due to an increase in the price volatility of some of its holdings toward the end of the period.
The company saw a total return on net asset value per share of 5.2%, lagging behind the FTSE World Index which saw a total return of 6.8%.
NAV per share was 425.2 pence as at April 30, up from 408.1p a year before.
The trust maintained its total dividend at 3.95 pence per share.
Shares in the Monks Investment Trust last traded at 385.40 pence Thursday, up 0.1%.
Monks Investment Trust said that at the end of February its total return on net asset value per share had been in double digits, and more than five percentage points ahead of the FTSE World Index.
However, over the last two months, share price volatility in a number of its holdings led to a reversal of fortune compared to the benchmark, it said.
The company said that it had "no better explanation" for the volatility than a change in sentiment towards the shares of rapidly growing companies.
Monks Investment Trust said its portfolio is biased away from the very largest companies towards new entrants, as it believes there are better prospects amongst disruptive companies compared to incumbents.
"In the short term, the share prices of the newer entrants tend to be more volatile, making returns on an annual basis less predictable, but the long run return should be better," the company said in its results statement.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @hanassallnews
Copyright 2014 Alliance News Limited. All Rights Reserved.