24th Jun 2020 17:07
(Alliance News) - BlackRock Smaller Companies Trust PLC said Wednesday it outperformed its comparative index for its recently ended financial year, as its portfolio proved resilient against the market volatility during the period caused by the US-China trade spat and Brexit.
For the year to the end of February, the investment trust's net asset value total return was 13.5%, compared to its benchmark, the Numis Smaller Companies Plus AIM (excluding Investment Companies) Index, which made a negative return of 1.4%.
As at February 29, BlackRock Smaller's net asset value per share was 1,572.55 pence, up 12% from 1,407.88p the same date the year before.
The trust's share price at the end of February was 1,484.00p, reflecting a discount to net asset value of 2.9%.
Shares in BlackRock Smaller closed down 2.1% at 1,298.00 pence on Wednesday in London.
Portfolio-wise, the biggest contributors to performance included Avon Rubber PLC, whose shares rallied after the acquisition of the ballistic protection business from US conglomerate 3M Inc. There was also video game developer Team17 Group PLC, which reported multiple upgrades to profit guidance, and 4imprint Group continued to deliver organic growth.
The trust proposed a final dividend of 19.70 pence, taking the total payout to 32.50p, up 4.2% from 31.20p the year before.
"The Covid-19 outbreak and its rapid spread beyond China has caused mounting concerns over the impact on global growth, leading to significant volatility in stock markets around the world. The market falls in March and April as the crisis developed were savage and indiscriminate, only to be followed by a dramatic rally," said Chair Ronald Gould.
"This extreme volatility is likely to continue for some time and has created dislocations in market valuations that are not consistent with the long-term fundamentals of the stocks in which we invest; our portfolio management team remain attuned to the investment opportunities that may be presented by these dislocations in pricing," Gould added.
By Dayo Laniyan; [email protected]
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