The investment trust’s half-year interim results to 31 October show its diluted Net Asset Value (NAV) up 18%, put down to the performance of its overseas holdings. Its 40,000 shareholders look set to receive 4p per share on 31 January, an increase of more than a third from 2.9p paid out last year.
The trust’s US, UK, and European portfolios all ended up lagging behind the local small-cap index, but were up 25%, 3.5% and 13.9% respectively.
In the firm’s statement of results, lead manager Peter Ewins explained how the global trust had ended the six months with the NAV and share prices “significantly higher”.
Explaining the decision to increase dividend payments, Ewins said: “The fall in sterling has the effect of lifting the value of our foreign currency denominated dividends when translated into pounds, and revenue returns per share were up by 33%.
“Although currency markets remain somewhat choppy and it is always possible that the trend could reverse, it seems likely that the company will again have a strong year on the income side.
“Therefore, the board has decided to pay an interim dividend of 4p compared to 2.9p last year, partially reducing the disparity between the interim and final dividends.”
