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LONDON (Alliance News) - Manchester & London Investment Trust PLC said on Wednesday it achieved a "pyrrhic outperformance" over its benchmark in its interim period.
Manchester & London has also hiked its dividend despite reporting a negative return in a challenging environment.
Th trust reported a net asset value negative return of 7.1% for the six months to the end of January 31. This compares to a negative return of 8.7% from the MSCI UK Investable Market Index.
Net asset value per share as at January 31 was 436.58 pence, down 8.7% from 532.81p as at July's end in 2018.
Both the trust's technology and consumer investments underperformed during the year, with the technology portfolio suffering from its exposure to the video gaming sub sector, where a disruptive shift in pricing models has increased volatility in earnings, Manchester & London said.
In consumer investments, Alibaba Group Holding Ltd and Amazon.com Inc were the key negative performers, while uncertainty over a further slowdown in Chinese economic growth also held back the sector.
However, Manchester & London expects the slowdown to shift towards consumption, particularly online consumption that could help Alibaba.
Manchester & London declared an interim dividend of 6.0 pence per share, up 50% from 4.0p the year before.
"Global events, both political and economic, continue to produce uncertainty and volatility in equity markets worldwide. The decisions of central banks and the negotiations between US and Chinese government officials will be key to our second half performance. We also watch with caution for any developments in the regulation of the technology giants," said Chair David Harris.
Shares in Manchester & London Investment Trust were up 0.7% at 501.30 pence on Wednesday.