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STS Global Income & Growth Trust PLC on Thursday said it was ‘pleased’ with its interim returns, and said it expects to increase dividends for the year. The Edinburgh-based investor said that in the six months to September 30, its net asset value per share (including income) grew 3.2% to 230.82 pence from 223.71p at March 31. NAV total return for the period was 3.8% while the trust’s benchmark, Lipper Global-Equity Global Income Index, realised a total return of 2.5% over the same period. The firm credited its advancements to a mix of investments. Philip Morris International Inc was the most significant contributor to interim performance, rising by 35% during the half-year, while peer British American Tobacco also appreciated in the period under review. The trust said that Unilever PLC was a ‘strong performer’, with it anticipating that its operating momentum can continue for some years. By contrast, the two largest drags on interim performance were Diageo PLC and Pernod Ricard SA, which, according to STS, ‘have each suffered from a similar malaise as they work through the aftermath of the COVID-inspired boom in the sector.’ The trust reported an on-year increase in dividend per share over the period of 3.9% to 3.17p from 3.05p, adding that it expects to ‘produce a real increase in the dividend paid to shareholders in the current financial year.’ Chair John Evans said: ‘It is pleasing to report on a period of positive returns for your company over the six-month period to 30 September 2024. ‘These returns have been achieved against a background in which equity markets globally have had to deal with a heightened level of geopolitical risk in Ukraine and in the Middle East, offset by clear evidence that the interest rate cycle has peaked in many developed economies. There are signs that inflation rates, while still variable, have passed their peak levels.’ The trust’s shares were up 0.3% at 236.81p on Thursday afternoon in London. Copyright 2024 Alliance News Ltd. All Rights Reserved
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