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Shires Income Underperforms Against Benchmark In Volatile Year.

LONDON (Alliance News) - Shires Income PLC said Wednesday it underperformed against its benchmark index in its recently ended financial year, as market volatility dominated the period.

For the year to the end of March, the investment trust reported a net asset value total return of 4.0%, compared to the FTSE All-Share Index, which returned 6.4%.

Net asset value per share as at March 31 dropped by 1.0% to 265.49 pence from 268.49p the same date the year before.

Shires Income's share price at the end of March was 267.00 pence, reflecting a 0.6% premium to net asset value.

Shares in the trust were down 0.4% on the day Wednesday at 274.53 pence, having improved further since the year-end.

Shires Income said that although its financial year saw a strong start, the market shifted at the end of September, with a sharp sell-off in markets on negative economic data, downgraded European and UK GDP expectations, and deteriorating momentum indicators from economies such as China.

Portfolio-wise, highly valued stocks suffered sell-offs, particularly following poor earnings from technology companies. A risk off mood meant that industrials also fell sharply.

Shires Income declared a total dividend of 13.20 pence, up from 13.00p the year before.

"Although stockmarkets have performed reasonably well since the start of 2019, there are reasons for caution. Economic data globally continues to indicate uncertainty over the growth and inflation outlook and a lack of confidence from businesses in the UK and in Continental Europe is leading to disappointing investment levels," said Chair Robert Talbut.

"In the UK, although the prospect of a no-deal exit from the EU seems unlikely, any departure will probably be followed by a new period of uncertainty regarding the UK's future relations with its largest trading partner," Talbut added.

By Dayo Laniyan; dayolaniyan@alliancenews.com

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Publication:Alliance Newswire
Geographic Code:4EUUK
Date:May 29, 2019
Words:318
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