Britain's oldest investment trust, Foreign and Colonial, saw a sharp drop in its net asset value (NAV) per share during 2011 although income increased.
The NAV per share dropped 6.7% compared to 2010, to hit 322.86p by the end of December, over the same period the share price dropped 6.8%.
It's not all been bad news for investors, however, as Foreign and Colonial has continued its policy of increasing dividend; the total payout will be 7.1p per share, an increase of 5.2% over 2010, and above the 4.8% retail price index for 2011.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The group says income was strong through the last 12 months with the largest contributions from the resumption of dividends by BP and a special dividend from Vodafone. Net revenue per share rose 20.1%.
Investment trusts gauge their performance against benchmarks, Foreign and Colonial's is calculated as 40% from the FTSE All-Share index and 60% from the FTSE WI World index. During 2011 F&C's net asset total return was -4.8% compared to the benchmark result of -5.2%.
Foreign and Colonial shares were down 0.4% by 09:14.
BS
-
8 of the best houses for sale with annexesThe best houses with annexes – from a period property in the Lake District to a 13th-century house with a two-bedroom annexe in Saltwood, Kent
-
Zelenskyy moves to appease Donald Trump – what happens now?Ukraine’s president Volodymyr Zelenskyy is conceding ground to secure the least-worst deal possible, says Emily Hohler
