This trust has been managed by Ciaran Mallon since 2005 and is part of the UK growth & income sector. The investment objective is to provide shareholders with long-term capital growth and real long term growth in dividends from a portfolio yielding more than the FTSE All-Share Index.
It is from the same stable as Neil Woodfords Edinburgh IT reported on last month.
The trust issued its annual report yesterday for the 12 months to 31st March 2013 (link via Investegate).
On a total return basis, net assets increased 23.7% over the year compared to the benchmark FTSE All Share rise of 16.8%. The trust has outperformed its benchmark index over 1, 3, 5 and 10 years.
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The board are recommending a final dividend of 3.55p which will make a total for the full year of 9.55p - an increase of 3.8% on the previous year (2012 was 9.2p). Dividend CAGR over the past 10 years is 7.8%. The current yield is around 3.8%.
As with Edinburgh IT, the manager avoided the mining sector which was a big positive. Another contributor to out-performance came from clothing retailers Next and N. Brown. Another strong performer was AIM listed Nichols (see recent post).
Commenting on outlook, the trust manager says:
“My investment strategy of the past three years remains intact - I am seeking companies with strong fundamentals, with sensible management whose interests are aligned with shareholders and with a low risk balance sheet. Despite the stock market's recent rise, the shares of many of these strongly placed companies continue to look attractive, and I am confident about the outlook for long-term returns from the portfolio”.
Finally, although the share price has seen a strong rise in recent months, IVI is one of the few investment trusts in the UK growth & income sector which trades at a discount to its NAV.
As ever, please DYOR.
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