Dundee investment firm Alliance Trust has continued its record of increasing the company’s dividends for the 55th consecutive year.
The firm delivered a net asset value (NAV) total return of -10.5% in the six-month period to 30 June 2022.
That saw the Dundee-based firm outperforming its benchmark, the MSCI All Country World Index, which returned -11% for the same period.
It also announced an interim dividend of 6p, an increase of 62% year-on-year.
The multi-billion-pound portfolio is overseen by Willis Towers Watson, who were appointed four years ago.
Alliance Trust ‘proud’ to increase dividend
Chairman Gregor Stewart said: “Our diversified, high conviction approach protected shareholders from the worst of the first half falls.”
In his interim report, Mr Stewart said the company was proud to be increasing the dividend again this year.
He said: “We are one of a handful of investment trusts that has been able to increase its total ordinary dividend for 55 consecutive years.
“This is a record of which the board continues to be proud and expects to extend.”
‘Markets have been very volatile’
Mr Stewart also said the lifting of Covid-19 restrictions had been tempered by Russia’s invasion of Ukraine.
He said that as well as creating “untold levels of human suffering”, the ongoing conflict continues to impact economies globally.
“Due to these and other macro factors, such as some of the highest rates of inflation seen in a generation, in the first six months of this year equity markets have been very volatile.
“In particular, we have seen a reversal of fortune for some of the largest technology companies.
“For the last few years, these have skewed the performance of the global market index to which, historically, our portfolio has been relatively underweight.
“As market returns have become less concentrated, our diversified portfolio has fared better than those biased towards larger growth stocks.”
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