By Jenne Mannion A rebound in the share price and net asset value performance of Perpetual Income...
By Jenne Mannion
A rebound in the share price and net asset value performance of Perpetual Income & Growth has resulted from Mark Barnett, the manager, being heavily exposed to value sectors which made a comeback amid a turbulent market.
Over the year to 7 March, the trust's share price has risen 38.7%, compared to the average in the UK growth and income investment trust sector of 25%, placing it fourth of 33 trusts in the sector. Over three years the trust's share price ranked 29th of 32 trusts, indicating the tough time it had when technology stocks were rallying.
Currently however the portfolio, which has £305m gross assets, is heavily invested in building construction, engineering, leisure, transport, and property.
Early in 2000 when technology stocks were rallying, Barnett took the opportunity to buy into the falls and picked up his preferred stocks at very low prices. "My overweight positions in these sectors over the last 12 months have led the trust to perform very well. My other selective overweight positions, such as healthcare, banks and utilities, have also helped," he said.
The trust currently has 16% gearing, of a potential 19%, with Barnett being bullish due to what he describes as a cheap market, particularly amongst mid cap stocks.
Barnett said the trust is heavily overweight the mid cap area of the market, which represents 30% of the trust, compared to 15% in the All-Share.