M&G High Income says, on a net asset value basis, each Package Unit delivered a negative total return of 3.6% over the six months to 30 November 2015. This was above the returns of the FTSE 350 Higher Yield Index and the FTSE All-Share Index, which were a negative 9.4% and 6.4% respectively over the same period.
Over the six months under review, the discount to NAV widened from 3.3% to 6.0%, the mid-market price at the period end being 161.50p and the NAV 171.76p. On a mid-market price basis each Package Unit produced
a negative total return of 6.2%.
During the six months to 30 November 2015, the Company declared total dividends of 3.20p per Income share, comprising two interim dividends of 1.60p. This represents an increase of 6.7% compared with the total of 3.00p per Income share during the same time last year.
The Board is mindful of the fact that the Company is approaching the end of its planned life and is due to be wound up on 17 March 2017 and for cash to be returned to shareholders. The Board is aware that a number of shareholders will have latent capital gains within their holding, and so the Board is also considering potential options for shareholders in addition to the cash return. While the exact nature of the options to be made available to shareholders are yet to be determined, the Board intends to offer shareholders at least one roll-over option which will allow a tax-efficient roll-over into a new investment. The Board and its advisers expect to consider a range of different roll-over options, including both open-ended and closed-ended investment companies. Further details will be issued nearer the time.
MGHP / MGHU / MGHI / MGHC : M&G High Income to offer rollover options next year