(Alliance News) - The Edinburgh Investment Trust PLC on Wednesday said its net asset value total return was negative in the first half of its financial year, due to the "weakness" of global equity markets.
The investment trust, which invests primarily in UK securities, said NAV total return with debt at fair value in the six months that ended September 30 was negative 8.2%, similar to the negative 8.3% performance of the FTSE All-Share Index.
Edinburgh Investment Trust said this is because equity markets have been weaker and more volatile, combined with slower economic growth, with higher interest rates and bond yields as central banks around the world fight rising inflation.
NAV per share fell to 618.85p at September 30, down 9.9% from 686.69p on March 31.
Edinburgh Investment Trust said debt refinancing at the end of September gave a 4% boost to NAV, partially offset underperformance by its portfolio holdings.
Despite the decline in NAV, Edinburgh Investment Trust had last month declared a higher payout. It lifted its first interim dividend by 6.7% to 6.40 pence per share from 6.00p in 2021.
"The company is in a strong position to take advantage of the attractive opportunities that are now arising, as well as to continue with the important business of working with existing holdings that underpin the income and capital value of the portfolio," Chair Elisabeth Stheeman said.
"Things are in good health and this should support attractive returns to shareholders in the years ahead."
Edinburgh Investment Trust shares were up 0.7% to 634.40 pence on Wednesday morning in London.
The share price discount to NAV widened to 10.6% at the end of the recent half-year but more recently has narrowed again to mid-single digits, the company noted.
By Jaskeet Briah; jaskeetbriah@alliancenews.com
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Edinburgh Investment Trust PLC (EDIN)