CT UK High Income Trust PLC on Monday said that its annual net asset value per share was down following ‘a tough period’ of macroeconomic and geopolitical disruptions.

The Edinburgh, Scotland-based investment trust said net asset value per share was down 6.3% to 89.97 pence as compared to 95.9p the year prior.

Shares in CT UK High Income were down 3.0% to 80.00p in London on Thursday, while B shares were flat at 90.50p.

The trust’s NAV total return was negative 0.4%, compared to positive 2.9% for its benchmark, the FTSE All-Share Index. The company said this shortfall was ‘not unexpected’, due to its investment portfolio having a larger focus on the mid-market, which has suffered following the outbreak of the Ukraine war.

CT UK High Income said that the ‘year under review has been yet another difficult one for investors in conventional equity investments.’

The return to ordinary shareholders was positive 0.6% and to B shareholders was positive 2.3%.

CT UK High Income swung to a pretax loss on its annual results ending March 31 of £536,000 from a pretax profit of £2.4 million the previous year.

The trust declared a total dividend of 5.51p per ordinary share, an increase by 1.1% from the previous year.

Looking forward, Portfolio Manager Philip Webster said that ‘this year will likely see investor sentiment wax and wane’ in reaction to ongoing market volatility.

‘To try and defensively manage through what might be a tough period is thus less preferable to focusing on quality assets at the right valuation.’

Chair Andrew Watkins said that despite economic uncertainty caused by the Ukraine war, the company ‘is in the best shape possible, with a balanced but differentiated portfolio of quality stocks, to achieve the company’s objectives over the coming years.’

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