20 years of high performance
ALPHA TRUST-ANDROMEDA INVESTMENT TRUST S.A., now the only closed-end fund listed on the Athens Stock Exchange and marking 20 years since its inception, has emerged as one of the best-performing equity investment choices in Greece with great resilience during challenging times.
Consistently focused on its investment strategy, ALPHA TRUST-ANDROMEDA INVESTMENT TRUST S.A. has continued over the years to invest in noteworthy companies with attractive valuations, regardless of their capitalisation, offering satisfactory long-term returns.
Specifically, its net asset value has increased since its inception (25/7/2000) through 30/06/2020 by 38.34%, during the same period that the ATHEX Composite Total Return Index declined by -70.52%. Similarly, since its investment strategy change (24/10/2011), the portfolio’s performance has amounted to 79.42%, compared to 2.37% for the aforementioned index.
In addition, the company has one of the highest dividend yields and capital returns, even during the most difficult times. For the 2019 financial year, ALPHA TRUST-ANDROMEDA INVESTMENT TRUST S.A. has approved a €0.75 capital return per share, which brings the dividend yield (at close on 30/07/2020) to 3.6%.
First half-year 2020 results
For the period ended 30 June 2020, and based on the International Financial Reporting Standards (IFRS), the company’s key financial figures are as follows:
The company’s gross income came to -€2.28 million, compared to €3.09 million for the same period last year. Gross income mostly reflects losses from valuation of securities at fair value based on IFRS and profits from sales and purchases.
Loss before tax amounted to €2.56 million, compared to profits of €2.03 million for the same period last year.
Loss after tax came to €2.57 million, against earnings of €1.99 million for the same period last year.
The company’s cash and cash equivalents as at 30 June 2020 came to a total of €610 thousand.
The company’s portfolio declined by -21.19% in the first half-year 2020, while the ATHEX Composite Total Return Index has dropped by -29.14% over the same period. The portfolio's NAV came to €9.55 million, or €23.80 per share at 30/06/2020.
As portfolio manager ALPHA TRUST stated: “The company's portfolio did not evade the negative returns of the first half of 2020, as the Greek Stock Exchange saw significant losses with the outbreak of the pandemic. However, during these difficult circumstances, investment opportunities were created which are expected to have positive performance in long term. There are more than a few companies with attractive valuations which, during this year and despite the anticipated significant drop in the GDP, we believe will manage to mitigate the losses that came about, or even in some cases manage to improve their economic performance. In this exceedingly complex environment, where a sense of normality is gradually being restored but uncertainties remain, ALPHA TRUST-ANDROMEDA INVESTMENT TRUST S.A. continues to be the appropriate investment instrument for long-term value creation for the shareholders.”
At the close of the first half-year 2020, the company's portfolio was 95.13% invested in listed shares on the Athens Stock Exchange and in bonds.
The top equity holdings at the end of the first half-year were in the companies: QUEST HOLDINGS, THRACE PLASTICS, TITAN, ELVE, HELLENIC TELECOM. ORG., SARANTIS and ENTERSOFT.
The ALPHA TRUST-ANDROMEDA INVESTMENT TRUST S.A. share, with net asset value of €23.35 at 30/07/2020, were being traded on ATHEX at a discount rate of -10.06%.
Note: Athex Composite Total Return Index inception is March 1st 2001. Prior to that date, the weighted dividend yield of the market according to ASE data has been used