Financial services provider Independent Investment Trust (LON:IIT) saw its share price dip despite swinging from a full-year loss, to a full-year profit, year-on-year.
The Company reported that it swung from a loss on its investments of -£41.75 million during FY18, to a positive return of £17.34 million for FY19.
Additionally, it swung from a net return on regular activities before tax of negative £35.90 million for FY18, to positive £24.77 million for the full-year just gone. Its administrative expenses also narrowed from £751,000 to £740,000 on-year.
Independent Investment Trust shareholders fared similarly well. Net returns per share swung from negative 64.74p to positive 44.34p, while the Company’s dividends increased from 10.00p to 13.00p on-year.
Independent Investment Trust comments
Speaking on the Group’s performance, the Chairman’s Statement read,
“Over the year to 30 November 2019, our Company produced a net asset value (NAV) total return of 8.5%. Over the same period, theoretical investments in the FTSE All-Share Index and the FTSE World Index would have produced total returns of 11% and 13.1% respectively. It is particularly disappointing that, after an encouraging first half, we failed to match the return on either index. Poor stock selection, notably since the EU referendum, is largely to blame, with the Eddie Stobart debacle a particularly painful example.”
“A further erosion of the rating of our shares saw the discount move out from 1.2% at 30 November 2018 to 9.4% at 30 November 2019, producing a share price total return of -0.5%. By 14 January 2020 the NAV had risen to 612p and the share price to 589p, reducing the discount to 3.8%.”
“Economic activity over the last year has tended to disappoint with the result that the nascent tightening of monetary policy highlighted in our report a year ago has given way to renewed stimulus. Markets, in the tradition of Pavlov’s dog, have responded well to this. The UK market underperformed the world market over the period as many investors chose to stay out of the market owing to the various uncertainties attending Brexit and the political situation.”
Investor notes
Elsewhere in financial services and asset management; Charles Stanley Group (LON: CAY) enjoyed a boost to its FUM, AJ Bell PLC (LON: AJB) posted a strong full year, Monks Investment Trust PLC (LON: MNKS) underperformed, and Investec plc (LON: INVP) sells its asset management division.
After a slight recovery, Independent Investment Trust shares were down 1.92% or 11.25p, to 574.75p per share 16/01/19 14:11 GMT. It currently has a dividend yield of 1.20%.