(Alliance News) - Edinburgh Investment Trust PLC on Friday reported solid annual net asset growth and was able to outperform its benchmark.
At the end of March, the trust - which invests primarily in UK securities - recorded a net asset value per share of 628.29 pence, up from 490.40p at the same point the year before.
The trust declared total annual dividends of 28.65p in the period, unchanged on the year before.
As a result, Edinburgh Investment's NAV total return during the period was 34.8%, higher that its benchmark - the FTSE All-Share Index - which added 26.7%.
"I would like to note that performance has come from a diversified range of stocks, with an additional boost from the effect of the company's borrowings. The portfolio is relatively concentrated, containing approximately 50 stocks," Chair Glen Suarez said.
He continued: "This means shareholders should expect performance to come in a lumpy fashion, as the last year illustrates: the bulk of the outperformance has come in the last six months, since the announcement of vaccines. Nonetheless, while still early days for Majedie in their role as the company's manager, I am delighted that they have made such a strong start - particularly given the challenging market backdrop."
Majedie's James De Uphaugh, the portfolio manager, added: "The stocks held by the Company are performing well operationally. At the same time, many of the UK-listed stocks held are priced at a discount to their peers in other markets internationally. With some UK-specific issues such as Brexit receding, and a robust vaccine rollout across the country, there are sound reasons to believe the valuation gap should narrow from here. How quickly this might happen is clearly unknown.
"Through a combination of capital gains and dividend distributions, reflecting strong fundamentals, we believe these companies will underpin above average returns for the company's shareholders over time."
Shares in Edinburgh Investment Trust were 0.7% higher in London on Friday at 636.10 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com;
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Edinburgh Investment Trust PLC (EDIN)