(Alliance News) - TR European Growth Trust PLC on Tuesday raises its interim dividend as it outperforms its benchmark in the first half of its financial year.
For the six months ended December 31, the Europe-focused investment company said its net asset value per share total return was 37% compared to a total return from the benchmark Euromoney Smaller European Companies Index (excluding UK) in sterling terms of 23% for the same period.
NAV per share as at December 31 was 1,414.31 pence, up 35% from 1,044.48p as at June 30, while NAV at the half-year end was GBP708,689, also up 35% from GBP523,374 at the end of June. TR European said its fund manager's "balanced approach to investing, with a combination of sensibly priced growth and self-help cheap stocks" helped to increase its results.
Shares in TR European Growth Trust were down 0.6% at 1,302.56p in London on Tuesday.
TR European declared an interim dividend of 8.20p per share, up 5.1% year-on-year as a result of its improved financial position.
Looking ahead, TR European said the impact of the pandemic will continue for some time, but there are notes of optimism.
Chair Christopher Casey said: "With the advent of multiple vaccines potentially offering a light out of the darkness of the pandemic, it is a reasonable supposition that the market will increasingly begin to worry about the inflationary effects of stimulus and that valuation may well matter once again. A constructive US administration will make for a more stable backdrop. Positively, the uncertainties of Brexit are largely behind us. There is definite cause for cautious optimism. Although our fund manager is wary of valuation in certain pockets of the market, his team continue to find undervalued investment opportunities in which to invest your capital."
By Zoe Wickens; zoewickens@alliancenews.com
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