Caledonia's NAV rises as it hedges against Brexit uncertainity

Investment trust Caledonia’s interim net asset value rose as it hedged against Brexit uncertainty through a balance of UK and overseas investments.

The company's portfolio of UK and overseas businesses and funds was a hedge through the period of uncertainty in the wake of the EU referendum, as the company benefited from holding dollar and euro denominated investments following the devaluation of sterling.

For the six months ended 30 September, the net asset value per share total return was 6.7% and for the year to date was 13.8%.

Net asset value per share rose 6.7% to 3,083p, compared to the year ended 31 March, while the net asset value increased 5% to £1.72bn.

The majority of the portfolio has “maintained a steady flow of income”, which totalled £20.3m for the first half of the year, which slightly lower than last year, which included a one-off special dividend received on the sale of its stake in TGE Marine.

Chief executive Will Wyatt said: "While we expect to see continued volatility in financial markets, we remain active in our search to find potential new investments, but remain wary of current price expectations.

“We believe our diversified and long term portfolio remains well positioned to attain the target returns that we aim to deliver for our shareholders despite the less than ideal backdrop."

An interim dividend of 14.9p was up 4.2% and will be paid on 5 January.

During the six months the company invested £148m, including £71m in The Liberation Group, a pub and bar chain in Guernsey and Jersey, while about £171m was realised, including the sale of Bowers & Wilkins, a maker of wireless speakers and headphones, for £24m.

At the end of September it had net cash of £29.4m,

Shares in Caledonia Investments were down 0.5% to 2,512.50p at 0853 GMT.