BMO Capital and Income Investment Trust today released its results for the half-year ending 31 March and it should please investors. The trust has not only beaten its underlying benchmark but has also increased interim dividends by 4.1 percent to 5.1p per share.

The company now expects to maintain its record of increasing its dividend consecutively for 25 years. Over a five-year period, the trust has returned 47.8 percent, outperforming the 34.5 percent return of its index.

In terms of where the performance is coming from, the company pointed to furniture retailer Dunelm which saw a total return of 67 percent after better trading and a change in management. This is in stark contrast to the company’s fortunes last year which were more in line with physical retailers, as Dunelm was the trust’s second biggest detractor from performance.

BMO said in a statement regarding the changing fate of Dunelm that it demonstrates “the value of the Trust’s approach based on research and conviction”.

Property companies LondonMetric Property and Secure Income REIT were the two next strongest contributors, posting gains of 14.7% and 6.2% respectively, even in a down market.

Steven Bates, chairman of the Trust, said: “The returns relative to the benchmark have held up well, with five year returns well ahead of the index. I have no doubt that the consistency of performance benefits from Julian Cane’s long tenure and level-headed approach as portfolio manager. While it is always disappointing to have to report a decline in absolute terms, it is important to remember in these unusual times that economies are cyclical animals, and downturns are a natural corollary of economic activity.

“The UK stock market is quite an outward looking beast, as much affected by the volatility in the global economy as it is by the vicissitudes of our home-grown variety. Having said that, the UK market is also a source of value at present, with many international investors staying away until the uncertainty of Brexit is resolved. This has led to attractive valuations in an environment where monetary conditions are likely to remain supportive. Concerns about the global economy have also dissipated in recent weeks and the backdrop is broadly positive. Of course, the political uncertainty in Westminster can and will lead to bouts of nerves, but the portfolio is well positioned in areas which are not especially sensitive to shenanigans of the sort we have seen all too often.”