(Alliance News) - Dunedin Income Growth Investment Trust PLC on Thursday reported a lower yearly net asset value, amid UK political turmoil, robust inflation and rising interest rates.
The Edinburgh-based UK and overseas companies investor said its NAV per share at the January 31 year end fell to 302.80 pence from 309.03p a year prior. The NAV total return was 2.4%, down from 8.1% and underperforming against its benchmark, the FTSE All-Share index, which returned 5.2%.
"Emerging from the shadow of Covid, 2022 proved to be an eventful year, dominated by the Russian invasion of Ukraine, the highest levels of inflation in a generation and a consequential rapid rise in interest rates, not to mention producing the shortest tenured Prime Minister in British political history. Despite all of this, UK equities proved more resilient than many global markets, benefitting from their exposure to more 'old economy' sectors, particularly commodities, and their relatively low starting valuations," the company said.
Dunedin Income raised its final dividend to 4.10p per share, up 5.1% from 3.90p a year ago. This brings the total dividend for financial 2023 to 13.10p, 1.6% higher than the 12.90p paid for financial 2022.
Looking ahead, Chair David Barron said the company is confident in delivering relative total return outperformance over the medium and long term, but cautioned on ongoing high inflation and tightening monetary policy.
Dunedin Income Growth shares were 1.7% higher at 290.88 pence each in London on Thursday morning.
By Tom Budszus, Alliance News reporter
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Dunedin Inc. (DIG)