They have recently issued full year results (not sure why it takes four months?) to end June 2013. Net assets have increased 19% from £124m to £147.8m. It has also grown its dividend from 3.57p in 2007/08 to currently 4.1p for the year to the end of June 2013, to a give a yield of 6.4%, paid quarterly. It should also be of note that the dividends are paid entirely out of income received by the Company with no element of capital included.
The Company's net asset value per share rose by 7.4% to 60.53p during the year; when this capital measure is adjusted for the payment of dividends of 4.1p, the net asset value total return was 14.9 per cent.
Dividends have been more than covered by earnings of 5.42p per share and revenue reserves have increased to the equivalent of 16 months current dividend distribution.
As in previous years, the trust continues to trade at a premium to net assets and the management have raised £15m via the issue of new shares - equivalent to 10% of the Company’s share capital and this has helped to reduce the percentage of ongoing charges for the year from 1.21% to 1.18%. This is, of course a percentage of net assets and in real terms, total expenses increased from £1.5m to £1.74m.
|one year price chart|
I have held this trust in my SIPP for the past 3 years and it forms part of my bonds and fixed income allocation along side my Coventry Building Society PIBS. The charges are a little on the high side but the returns are satisfactory and it provides an element of diversification.
As ever, slow & steady steps...