(Alliance News) - BMO Capital & Income Investment Trust PLC on Monday said it lagged behind its benchmark in the first half of its financial year but has nonetheless opted to increase its dividend.
The trust's net asset value per share total return for the six months ended March 31 was negative 27.5%. Its benchmark, the FTSE All-Share Index, had a total return of negative 22.0%.
At at March 31, net asset value per share was 233.78 pence, down 26% from 314.70p.
The company opted to increase its dividend, with total interim dividends for the period up 2.0% at 5.20p per share from 5.10p per share.
Chair Jonathan Cartwright said: "The board is very mindful of shareholders' desire for income in addition to capital growth. We are also very proud of being an Association of Investment Companies 'Dividend Hero' having increased our dividend every year since launch in 1992. In the majority of these years we have paid out a little less in dividends than we have earned, thus building up revenue reserves of GBP15.1 million by the beginning of the current financial year and prior to the fourth interim dividend in respect of 2019. This is a valuable resource for shareholders when market returns become extremely challenging - as is now the case.
"Your board has decided to utilise GBP200,000 of those reserves to enable the company to pay dividends in respect of the first half-year 2% greater than the same period last year. Notwithstanding the challenge occasioned by the impact on equity markets of the coronavirus pandemic, the company remains well placed to achieve its twin aims of growing net assets and dividends over the longer term."
Shares in BMO were down 0.2% at 260.48 pence in London on Monday.
By Anna Farley; annafarley@alliancenews.com
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