19th Jun 2019 10:14
(Alliance News) - BMO Global Smaller Companies PLC on Wednesday said it outperformed its benchmark in its most recent financial year due to stock selection in its investment portfolio and hiked its dividend.
The smaller-company investor posted a diluted net asset value total return of 3.8% for its year ended April 30, outperforming the 3.0% return of its benchmark.
The investor's benchmark is a blended index of the MSCI All Country World index, excluding the UK Small Cap Index, and the Numis UK Smaller Companies index excluding investment companies.
"Outperformance came largely as a result of positive stock selection on the investment portfolio and pleasingly this is the seventh consecutive year of growth in the NAV," said BMO Global Smaller Companies Chair Anthony Townsend.
The company's diluted NAV per share increased to 1,405.69 pence from 1,368.80p. On a non-diluted basis, NAV per share rose to 1,416.71p from 1,368.80p.
BMO Global Smaller Companies is recommending a final dividend per share of 11.50p, up 15% from last year and increasing the total for the year by 15% to 16.50p per share from 14.40p.
Townsend said: "Since the end of the financial year, the US and China trade war has stepped up a gear, with additional tariffs being imposed in both directions. This is not helpful for investor sentiment or for the global economy even though the impact of these measures may be limited for most of our holdings. The UK political scene remains in a state of flux after the resignation of the prime minister. More positively from a market perspective, it is possible that fiscal and monetary policies may be eased in some parts of the world to take account of the slowdown and still low inflation.
"While a more cautious overall approach to the management of the portfolio seems merited for now, the board remains of the view that the long term outlook for the global smaller companies' market remains attractive."
The FTSE 250-listed shares in BMO Global Smaller Companies were down 0.1% at 1,344.52p on Wednesday morning.
Related Shares:
BGSC.L