LONDON (Alliance News) - Perpetual Income & Growth Investment Trust said on Wednesday it underperformed against its benchmark in its recently-ended financial year due to adverse stock selection.
The trust said its net asset value negative return for the financial year to the end of March was 5.6%, compared to its benchmark, the FTSE All-Share Index which saw a total return of 1.2%.
Net asset value per share as at March 31 was 380.1 pence, down from 416.2p for the same date the year before, while the share price was 344.0p, reflecting a discount to net asset value of 9.5%, slightly narrowed from 9.7%.
Shares in Perpetual Income & Growth Investment Trust were up 0.8% at 368.00 pence on Wednesday.
The trust said the underperformance was due to the lack of holdings in mining stocks and a setback in tobacco stocks due to headwinds, particularly from the US, where the US Food & Drug Administration had plans to launch a consultation on lowering nicotine levels in cigarettes.
There were also problems within individual holdings, particularly FTSE 250-listed stocks Provident Financial PLC and Capita PLC, which both saw significant share price declines in the period.
Perpetual declared a total dividend of 13.90 pence per share, up from 13.35p the year before.
"The performance of the UK stock market will remain heavily influenced in the near term by the combination of two key variables: the movements in sterling relative to the US dollar, being a reflection of the Brexit negotiations in Brussels; and the continued vacillations in sentiment to both the domestic economy and the fragile political scene," said Portfolio Manager Mark Barnett.
