24th Oct 2024 13:06
(Alliance News) - Blackrock Smaller Cos Trust PLC on Thursday said its net asset per share rose in the first half of its financial year amid improved investor sentiment, despite broader economic uncertainty.
The FTSE 250-listed investment trust focused on smaller UK quoted companies said NAV per share on August 31 was 1,684.43 pence, rising 12% from 1,502.25 pence on February 29.
NAV total return for the six months that ended August 31 was 13.9%, compared the company's benchmark, the Deutsche Numis Smaller Cos plus AIM Index, which returned 13.2%.
The company said "investor sentiment and risk appetite appear to have improved" during the six-month period, with market performance supported by "a more benign economic backdrop".
Blackrock Smaller Cos Trust declared an interim dividend per share of 15.50 pence, up 3.3% from 15.00p last year.
Roland Arnold, from Blackrock Investment Management UK Ltd, said: "It is almost impossible to address the outlook without addressing the change of government in the UK. The Labour party claimed to offer a more business-friendly outlook, which should have been a perfect set up for a market-friendly environment. Sadly, their early statements have instead generated increased uncertainty as the market tries to understand how the government will shape policy to fill the 'GBP22 billion black hole'.
"As a consequence of the current uncertainty, consumer confidence has recently weakened. However, in the background, real wages are rising, unemployment remains low, and household disposable income is increasing, all suggesting that as confidence returns, the consumer maintains an ability to spend."
Arnold concluded: "The valuation of UK and mid-cap companies is attractive on a historic basis. As we move through this near-term noise, the opportunity presented by the UK small and mid-cap market should be revealed, and maybe we will finally see investors looking to allocate back to an asset class that has historically been a profitable one."
Shares in Blackrock Smaller Cos Trust were up 0.4% at 1,407.80 pence each in London on Thursday afternoon.
By Emily Parsons, Alliance News reporter
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