(Alliance News) - Standard Life UK Smaller Companies Trust PLC on Thursday hiked its interim dividend, following a strong increase in net asset value.
For the six months to the end of December, the investment company's net asset value total return was 17.5%, versus 11.3% return from reference index, the FTSE All-Share index.
As at December 31, net asset value per share was 626.69 pence, up 43% from 440.37p the same date the year before, and 16% higher from 539.54p at the end of June.
Standard Life UK's share price as at December 31 was 638.00p, reflecting a 1.8% premium to net asset value.
Shares in the investment trust were down 1.4% on the day Thursday at 570.00 pence, having declined since the period-end.
Standard Life UK's interim performance was driven by more stock-specific events which lifted the portfolio.
Particular outperformers were Dart Group PLC, which benefited from the demise of Thomas Cook and the lack of exposure to Boeing 737 MAX woes, Future PLC and JD Sports Fashion PLC on strong trading figures.
Markets-wise, from June to August investors were concerned by a potential recession in the US, as well as the US-China trade war and Brexit uncertainty. However, by the end of the interim period, a trade deal was signed between the two superpowers, and a lot of uncertainty faded following a solid Conservative victory in the UK General Election.
Standard Life UK declared an interim dividend of 2.70 pence per share, up 69% from 1.60p the year before.
"December 12, 2019 is likely to be seen as an economic and political watershed in the recent history of the UK, however the departure of the UK from the EU is the start, not the end, of the process and there will inevitably be obstacles and issues that are, by their very nature, unforeseen. All the companies in which this company invests are going to be affected, to a greater or lesser extent, and the valuations of companies will be affected, both positively and negatively," said Chair Allister Langlands.
"The path chosen by the UK electorate is unlikely to be easy in the short term. However, regardless of the obstacles, winners will emerge. They will be led by those management teams that have the experience to understand the implications and the ability to adapt and seize any new opportunities that may arise as a result," Langlands added.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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