(Alliance News) - City Merchants High Yield Trust Ltd on Friday reported an increase in net asset value per share in the first half of 2019.
The investment company reported NAV per share as at June 30 of 188.89 pence compared to 178.69p as at the end of 2018, an increase of 8.6%. In comparison, the ICE Bank of America Merrill Lynch European Currency High Yield Index returned 8.2% during the same period.
City Merchants' share price at the end of the first half stood at 193.25p, representing a 2.3% premium to NAV. Share price total return was 13.5% for the period.
The stock was trading 0.6% lower on Friday in London at 190.06p each.
The trust declared an interim payout of 5p a share. The company said it is on course to achieve its full year dividend target of 10p per share, unchanged year-on-year.
"I would like to highlight two themes for the remainder of the year. First, while there continue to be attractive individual investment opportunities within high yield, the year to date strength of the market has seen credit spreads and yields return to below their long term averages, in turn suggesting progress for the asset class from here may prove to be harder going," said Chair Tim Scholefield.
"Secondly, successful navigation of this type of market environment demands both a rigorous investment approach and careful analysis of the risks and potential return of each security, attributes which I believe are clearly evident in the manager's successful long-term performance record," Scholefield added.