LONDON (Alliance News) - Edinburgh Investment Trust PLC Thursday said it had outperformed its benchmark in its recently ended financial year, as the performance of the UK equity market picked up in the second half of year, and its portfolio performed well.
In the year to end-March, the company posted a total return on net asset value per share of 16.5%, outperforming its benchmark, the FTSE All-Share Index total return, which posted a total return of 6.6%.
The trust proposed a final dividend of 8.60 pence, taking its total dividend for the year to 23.85 pence, increased from 23.50 pence a year before.
Edinburgh Investment Trust said the recover in the UK market continued into 2015, with the oil price decline helping both the reduction in consumer price index inflation and an increase in consumer spending.
"However, most economists consider the recovery still to be vulnerable to set backs both domestically and globally, especially from within the eurozone, thus postponing further any rise in interest rates," the trust said in a statement.
The trust noted the unexpected win for the Conservative government in the UK election has "initially been welcomed by the financial markets", but said that "history tells us that small majority governments can be problematic and there are a number of challenging constitutional matters that the board will keep under review."
"Notwithstanding the challenging backdrop, the portfolio remains well positioned to prosper in this environment of continued low interest rates and low nominal gross domestic product growth," the trust said.
Shares in Edinburgh Investment Trust are trading down 0.1% at 688.53 pence Thursday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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Edinburgh Investment Trust PLC (EDIN)