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Sanditon results disappointing

Sanditon results disappointing – Sanditon Investment Trust’s annual report for the year ended 30 June 2017 says it was a disappointing year for the company with the NAV falling to 100.5p, down 4.6% from last year’s 105.3p. They say that. combined with the dividend paid in December 2016 of 1.1p, this resulted in a loss of 3.6% for the financial year. Generally, at QuotedData, we would say that this 1.1p dividend related to the prior year. The next dividend, from revenue earned in the accounting year to the end of June 2017, will be 0.9p. Substituting 0.9p for 1.1p would reduce further the return to shareholders. The share price finished the year at 97.4p, leaving the shares trading at a 3.1% discount to NAV. The fund is supposed to deliver returns 2% above RPIX (inflation excluding the impact of mortgages).

The chairman says that the fund was positioned bearishly – both in terms of being net short and its “investment skew biased to value”. (Sanditon is not in the hedge fund sector but, perhaps, should be). The UK market was up 18% over the year. The chairman lauds the fund’s low correlation (0.06x) to the All Share Index and hopes this will help “give shareholders some confidence that should equity markets suffer the setback the manager is expecting, your company should be insulated from those falls”.

The stake in the management company was revalued upwards from £1.35m to £1.55m, up 14.8%, as its assets under management rose by 9% to £651m and profits rose by 18% to £1.8m.

There is no report from the manager in the results announcement.

The NAV and the share price have continued their drop since the year end. The NAV at the close of business on Friday 15 September was 96.57p and the shares now trade at 94.375p.

SIT : Sanditon results disappointing

 

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