Caledonia Investments H1 NAV up despite equity volatility

22nd Nov 2018 10:05

(Sharecast News) - Caledonia Investments said first half net asset value per share total return rose 9.8% and net assets grew 8.9% to £2bn.Net asset value per share rose 8.5% to 3563p, while income generated from its portfolio rose 19% to £23.6m, the company said.The interim dividend was lifted by 3.9% to 16.1p per share.Looking forward, Caledonia said an increase in volatility in October reminded investors that "stock markets are not an upward only escalator", warning that a 'no-deal' Brexit, could also have significant further impact on equity and bond markets."The recent rise in US interest rates led to significant movements in both equity and bond markets. The return of a real cost of capital is bound to be reflected at some stage in the pricing of assets and a reduction in liquidity.""Caledonia has recently made two significant investments in the UK manufacturing sector, underlining our belief that well-managed companies, selling high quality and competitively priced products into global markets, should be able to thrive even in the current period of economic uncertainty," the company said."Our portfolio is well diversified and invested in good quality businesses that we are confident will enable us to achieve our strategic objectives."