They have today issued full year results to 30th June 2014(link via Investegate)
Building on the previous years 7.4% uplift, the Company's net asset value has again seen an increase of 3.1% to 62.4p; when this capital measure is adjusted for the payment of dividends of 4.21p (4.1 p - 2013), the NAV total return was 10.3% ( 2013 - 14.9%). The share price total return was 13.7%.
Dividends have been increased by 2.6% to 4.21p giving a yield of around 6.4% based on the current share price of 65.5p. The dividend is more than covered by earnings of 4.76p per share and revenue reserves are 136% - the equivalent of 16 months current dividends.
As in previous years, the trust continues to trade at a premium to net assets and the management have placed new shares earlier in the year raising £30m. This has helped to increase the trusts market cap. to around £190m and also reduce the percentage of ongoing charges for the year from 1.18% to 1.12%. This reduction is, of course, as a percentage of net assets and in real terms, total expenses increased from £1.74m to £2.04m.
With a great deal of turbulence hitting the equity markets in recent weeks, it's reassuring to have the steadying effect of the fixed interest constituents in my portfolio.
As ever, slow and steady steps…