(Alliance News) - Perpetual Income & Growth Investment Trust PLC on Tuesday woefully underperformed against its annual comparative index, amplified by the "extreme market turmoil" in March caused by the Covid-19 outbreak.
The investment firm's net asset value negative return was 29.9% for the year to March 31, compared to a negative return of 18.5% from benchmark, the FTSE All-Share index.
As at March 31, net asset value per share was 246.7 pence, 32% lower than 363.2p the same date the year before.
Perpetual Income & Growth's share price at the end of the financial year was 198.6p, reflecting a discount to net asset value of 323.5p.
Shares in Perpetual Income & Growth were up 0.5% at 223.00 pence on Tuesday in London.
Although the Covid-19 pandemic made a severe impact on the trust's performance, in truth its portfolio was already underperforming from the first half, as political uncertainty caused by Brexit resulted in a wide degree of polarisation within the market.
There was some recovery following the general election in December which expressed political stability, however these gains were erased due to the Covid-19 pandemic in February and March.
Perpetual Income & Growth declared a total dividend of 15.00 pence, up from 14.50p the prior year.
"It has been a volatile twelve months for the UK equity market, dominated by concerns affecting the outlook for global economic growth, the protracted Brexit negotiations and a general election, but then overwhelmed in the final two months of the financial year by the impact of the Covid-19 pandemic. US-China trade relations, Brexit, and domestic politics were known uncertainties in 2019, but 2020 so far has delivered the market shock that no one could have foreseen," said Portfolio Manager Martin Walker.
By Dayo Laniyan; dayolaniyan@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.