(Alliance News) - Investment firm Menhaden PLC on Tuesday said it recorded a net asset value rise in 2019 and swung to a positive total return, though its portfolio has since been hit by the Covid-19 pandemic.
Net asset value per share at December 31 stood at 117.5 pence, rising 30% annually from 90.6p a year before.
Shares in the company were 5.0% lower at 77.19p each in London on Tuesday afternoon.
Its net asset value returned just shy of 31%, swinging from negative 1.6% in 2018, and ahead of the MSCI World Total Return Index which gained just under 23% in 2019. Menhaden noted that the index is not a "formal benchmark".
"This was a very positive year for the company, in both absolute and relative terms, with all asset classes providing good returns. The board is encouraged by this success which validates the portfolio manager's investment strategy of selecting competitively advantaged businesses which deliver or benefit from the efficient use of resources," Menhaden said.
Menhaden declared an interim dividend of 0.4p per share. It opted to class the payout as an interim one to ensure that shareholders are paid even if its annual general meeting needs postponing, due to Covid-19 travel restrictions.
The 0.4p payout is down 43% from the final 0.7p payout in 2018.
Menhaden added: "Unfortunately, as the global health crisis unfolded after the end of the financial year, the company's portfolio suffered."
Its net asset value lost 14% in the first quarter of 2020.
"Asset prices almost everywhere have been impacted and the de-rating of markets reflects uncertainty over future profits, credit defaults and the timing of the peak of the crisis. It is still too early to assess the long-term economic impact and the resilience of the company's portfolio, however owning competitively positioned businesses with resilient barriers to entry and sustainable risk adjusted returns should provide defensive qualities," Menhaden continued.
By Eric Cunha; ericcunha@alliancenews.com
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Menhaden Re Plc (MHN)