(Alliance News) - Momentum Multi-Asset Value Trust PLC on Monday said it swung to a loss but still declared two increased interim dividends to shareholders.

The London-based investment trust said its pretax loss in the six months that ended October 31 was GBP8.7 million, swinging from a profit of GBP1.4 million a year earlier, while income marginally increased to GBP1.55 million from GBP1.54 million.

Net asset value per share was 150.51 pence on October 31, down 20% from 189.27p a year earlier, while NAV total return was negative 16.7% versus positive 8.8% for its inflation-linked benchmark of Consumer Price Index plus 6% per year.

Shares in Momentum Multi-Asset last traded at 154.40p on Friday afternoon last week, up 0.6% over the preceding five trading days.

Momentum Multi-Asset said two quarterly dividends of 1.80p were declared for the half year period, up 7.1% each from a year prior, adding the next quarterly dividend would likely be higher than 1.8p due to inflation.

It remained confident in its outlook, citing previous experience that the best investment strategy for navigating depressed markets and low sentiment was to stay invested and rely on diversified portfolios.

"Major macroeconomic shocks usually cause capital to exit quickly and retreat to the most liquid assets. However, taking into account the historical returns of your company, it can be seen that the best-performing periods have been preceded by a poor-performing period," said the portfolio manager addressing shareholders.

They continued: "Over the next year, we expect to see lower inflation and interest rates should peak with stocks consequently re-rating from extremely low multiples. This environment should prove particularly positive for UK mid-cap companies and, therefore, your company's portfolio."

Chair Jimmy McCulloch added taking considered risk was prudent, arguing history suggests investors tend to overpay for certainty and underprice uncertainty.

Momentum Multi-Asset said it was confident it can discern between causal factors amid wider market turbulence.

By Greg Rosenvinge; gregrosenvinge@alliancenews.com

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