Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Woodford pick Raven Russia hikes dividend

Woodford pick Raven Russia hikes dividend

Raven Russia, a £565 million fund focused on Russian warehouses that has long been one of Neil Woodford’s favourite trusts, has reported strong annual results despite turmoil in the country.

Through 2013 Raven Russia’s net operating income leapt 37% to £112 million, with 97% portfolio occupancy, which gave its board the confidence to boost its dividend by a third to 5p – equivalent to a 6.5% yield.

Chair Richard Jewson noted the regional strife, but was sanguine about its impact on Raven’s business.

‘We must hope that events in the Ukraine settle peaceably in the coming months and we recognise the effect that this will have on the capital markets whilst the issues remain unresolved,’ he said.

Raven Russia’s share price has fallen by 3% over the past three months, despite a 3% recovery to 77p following this morning’s results.

Jewson commented: ‘For us, it is business as usual in Russia, with leases and banking arrangements continuing to be signed and rents paid.’

Glyn Hirsch, chief executive officer, added that ‘relatively speaking Russia is in a strong position but currency volatility makes financial planning difficult’.

Hirsch claimed he therefore felt ‘justified in keeping a relatively high balance of free cash’, currently worth £137 million.

Ewan Lovett-Turner, an analyst at Numis Securities, commended this approach. ‘The group has a well let and conservatively funded portfolio which should continue to support its progressive dividend policy,’ he remarked.

‘We expect net asset value progression to be fairly muted in the coming periods with the focus remaining on earnings growth and level of distributions.’

Invesco currently owns 35% of the fund.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
CIO Tapes 2: two warnings and a lot of optimism

CIO Tapes 2: two warnings and a lot of optimism

Our group of leading asset management CIOs see a lot of opportunities – and overseas investors are buying UK too

Play Wealth Manager Retreat 2017: size isn't everything

Wealth Manager Retreat 2017: size isn't everything

We asked our delegates at the Wealth Manager Retreat what they think about the recent wave of consolidation in the industry.

1 Comment Play CIO Tapes - part 3: 'passive funds are anti-capitalist'

CIO Tapes - part 3: 'passive funds are anti-capitalist'

Citywire recently gathered three of the UK's leading fund investment heads to discuss their hopes, fears and the issues that their jobs throw at them daily.

Read More
Your Business: Cover Star Club

Profile: Kleinwort Hambros' boss on how to manage five banks

Profile: Kleinwort Hambros' boss on how to manage five banks

Welding together Kleinwort and Hambros – two of Britain’s most historic banks, founded in 1786 and 1839 respectively – was always going to be a challenge.

Wealth Manager on Twitter