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
Play French fund CEOs: 'Brexit is a lose-lose situation for all of us'

French fund CEOs: 'Brexit is a lose-lose situation for all of us'

'We'll all lose out - but London is an international city, Paris is not.' Leading French asset management CEOs tell us what they think Brexit will mean for the investment business.

Play Mark Barnett - part 2: why I'm not buying Lloyds

Mark Barnett - part 2: why I'm not buying Lloyds

In the second part of our exclusive video interview, Barnett explains why he has no intention of buying Lloyds, and where he sees the greatest income opportunities.

Play Wealth managers reveal the best investment ideas of the year

Wealth managers reveal the best investment ideas of the year

From robotics to impact investing, wealth managers share the best ideas they have heard this year.

Read More
Wealth Manager on Twitter