LONDON (Alliance News) - The Edinburgh Investment Trust PLC on Tuesday said it performed well against a "challenging" first half for investing in equities.
The trust, which invests in UK securities with the long-term goal of generating increases in net asset value per share ahead of the growth of the FTSE All-Share Index, as well as dividend growth of more than that the rate of UK inflation, said that portfolio manager Mark Barnett of Invesco Perpetual continued to perform well with a net asset value total return of 0.9% with debt at par value and 1.1% with debt at market value in the six months to September 30. The All-Share fell by 7.2% in the same period.
Chairman Jim Pettigrew said it was a time to benefit from what the portfolio does not hold, specifically commodities, oil and banks, as much as from what it does, being tobacco, pharmaceuticals, real estate and non-life insurers.
"Mark's emphasis has always been to avoid loss whenever possible, to invest in companies with solid balance sheets and to seek out companies whose management share his vision that the payment of sustainable and growing dividends is a key principle of corporate strategy," Pettigrew said.
"Identifying such companies has not become any easier which is one of the reasons for relatively low portfolio turnover as Mark remains invested in his favoured sectors and stocks. With low inflation and low nominal GDP growth also to contend with, it is a time when proceeding with caution is a prudent approach," Pettigrew added.
Shares in the trust were up 2.1% at 705.81 pence on Tuesday morning.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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Edinburgh Investment Trust PLC (EDIN)