13th Dec 2018 09:51
LONDON (Alliance News) - BMO Global Smaller Cos PLC on Thursday said it had outperformed its benchmark in the first half of its financial year due to stock selection, with a strong North American performance.
The small companies investor posted a negative 0.4% return for the six months ended October 31. Its benchmark - comprising 30% the Numis UK Smaller Companies excluding the investment companies Index and 70% the MSCI All Country World excluding the UK Small Cap Index - had a negative 2.3% return.
Positive stock selection was credited with this outperformance, with BMO GSC's North American investments strong.
In fact, North America was its only portfolio which ended the period in positive territory, up 11% for the half-year. The local smaller companies index for North America rose 6.3% in the same period. Technology and healthcare stocks, BMO GSC said, were "particularly pleasing".
Net asset value per share, as at October 31, was 1,365.00p, up from 1,380.16p year-on-year.
The investor declared a 5.0 pence per share interim dividend for the period, up 14% from 4.4p the year before.
Looking ahead, BMO GSC is taking a "slightly more cautious approach" to its portfolio in the face of Brexit and poor relations between the US and China.
"More positively the setback in markets is likely to present us with chances to acquire holdings in good quality companies at more attractive valuation points, and we will continue to seek out such opportunities in the second half of the year," the company said.
Shares in BMO GSC were down 0.3% at 1,311.51p on Thursday in London.
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