3rd May 2019 11:44
LONDON (Alliance News) - BlackRock Smaller Companies Trust PLC said Friday net asset value dropped over its recently ended financial year, with sharp declines in global markets caused by geopolitical concerns.
BlackRock Smaller's net asset value per share as at February 28 was 1,407.88 pence, down from 1,506.78p the same date the year before.
The 6.6% net asset value decrease was smaller compared to the trust comparative index, the Numis Smaller Companies Plus AIM Index, which fell by 8.2%.
The company's total assets dipped by 10% to GBP716.3 million from GBP796.1 million the prior year.
BlackRock Smaller's share price at the end of 1,300.00 pence, reflecting a discount of 5.5% to net asset value. Shares in BlackRock Smaller were 0.1% lower on the day Friday at 1,448.32, having improved since the year-end.
The trust proposed a final dividend per share of 19.20 pence, taking the total payout to 31.20p, up 20% from 26.00p the year before.
BlackRock said the year was a challenging one, with uncertainty over trade disputes, fears of a US recession and Brexit concerns leading to a fall in higher quality growth stocks, affecting the trust's portfolio.
"Despite a strong start to 2019, markets are likely to remain volatile as economic uncertainty persists. In the UK, the damage to investor and consumer confidence wrought by the drawn out Brexit process means that the UK economy may well lag behind other major developed economies," said Chair Nicholas Fry.
"However, our portfolio managers believe that despite the slowdown being faced in the near term in many countries, 2019 is not likely to be a year of global recession and that most major economies will continue to grow in the medium term," Fry added.
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BlackRock Smaller Companies Trust PLC