Sanditon Investment Trust has published its first annual report for the period 14 May 2014 to 30 June 2015. The trust aims to return 2% above the UK retail price index and provide low correlation with equity markets. The trust finished the year with its NAV at 103.02p, just below its objective, but the board highlight the initial drag of launch costs (1.3% of NAV) as a contributory factor. The company says that it shares have exhibited low correlation to the FTSE All-Share Index since launch (a correlation of 0.05x according to Bloomberg and Sanditon). The share price finished the year at 106.5p, a 3.4% premium to NAV.
Sanditon operates has both long and short equity exposures. The company says that, because the yield of the Manager’s long book has been at a significant premium to the yield of the short book through the period, the portfolio has generated an income surplus of 0.49p per share. As such the Board is recommending an annual dividend of 0.45p per share but say that there can be no assurance that the Company will always generate surplus income to allow a dividend to be paid.
Sanditon publishes first annual report : SIT