Aberdeen Equity Income Trust hails 'strong' FY performance

(Sharecast News) - Aberdeen Equity Income Trust hailed a "strong" full-year performance on Tuesday as it outperformed its reference index. In the year to the end of September, the share price total return was 25.7%, and the net asset value (NAV) total return was 21.8%, both significantly ahead of the 16.2% return of its reference index, the FTSE All-Share Index.

The company said the results reflect the strength of the portfolio management approach and the benefits of its flexible investment mandate.

Net revenue earnings rose 2.1% to £11.24m, with earnings per share up 1.6% to 23.43p.

The trust declared a fourth interim dividend of 5.9p per share, taking the total dividend for the year to 23p, up 0.4%.

The dividend yield has averaged 6.8% over the year, it said, but has reduced to around 6.1% at the year-end due to the share price performance. It said the yield remains among the highest in the AIC UK Equity Income sector.

Chair Sarika Patel said: "Despite a backdrop of geopolitical uncertainty and fiscal challenges, equity markets performed strongly. The portfolio manager's ability to navigate these conditions, balancing income generation with capital growth has been key to delivering strong results.

"The board is particularly pleased with the portfolio manager's disciplined 'Focus on Change' investment philosophy, which has delivered positive outcomes across a range of holdings."

The trust said the largest contributors to performance were consumer staples, construction, energy, financials and healthcare.

The largest detractors were consumer discretionary, aerospace & defence and non-life insurance.

At 0915 GMT, the shares were up 0.7% at 395.89p.