CT UK High Income Trust fails to keep up with 'buoyant' market

(Sharecast News) - CT UK High Income Trust said on Friday that it had performed well in the six months to September end but had failed to keep up with a "buoyant" market. The trust reported a net asset value (NAV) total return of 8.7%. However, the benchmark index performed "even better", it said, returning 11.6%, "thus demonstrating the strength of the UK market".

Ordinary share price total return for the six months was 12.5%, compared to the benchmark's total return of 11.6%.

Chairman Andrew Watkins said: "Our focus is always first on income generation to ensure we provide shareholders with a high and growing dividend that we believe is central to why shareholders invest in the company, but this can mean, in short periods, we lag the broader market.

"As I have stated before, indices skewed by huge corporates and nascent growth sectors are difficult to beat on a consistent basis but dividends are an important part of total return and, as we have demonstrated over the longer term, we can deliver out-performance, as shown by the one, three, and five-year periods to the company's last year end of 31 March 2025."

The trust said notable purchases during the period included iconic brand Burberry, where its manager believes new management has made "huge progress" in re-positioning the brand where it can see growth return.

Other purchases included travel retailer SSP and UK wealth manager Rathbones.

As at the end of October, the trust's top 10 holdings included HSBC, at 7.55%, AstraZeneca, at 6.5% and Shell, at 5.5%.

At 1130 GMT, the shares were up 1.4% at 112.03p.