10th Nov 2014 15:51
LONDON (Alliance News) - Chelverton Growth Trust PLC Monday said its net asset value per share rose by 15% over its last financial year, a strong outperformance compared with its benchmark's rise of 7.5%.
In a statement, the trust said its NAV per share increased to 51.38 pence on August 31, from 44.87p a year earlier.
The trust's benchmark is the MSCI Small Cap UK Index.
Shareholders will vote on whether the company continues to operate as an investment trust at its next annual general meeting.
The trust is not open ended and is required to seek approval from shareholders every five years for continuation, without which its assets must be liquidated and returned to shareholders.
"In accordance with the company's articles, we have consulted with major shareholders, who represent an overall majority; all those consulted are favour of the company continuing as an investment trust," Allen said.
While the trust is "committed" to an annual tender process as a means of offering shareholders the ability to realise up to 10% of their shareholding at a "sensible" discount to net asset value, the trust has postponed the tender from its usual timing in January, due to being made aware of a "possible transaction" involving one of the larger shareholdings.
If completed, the transaction could have a "material impact" on net asset valuation, the trust said.
"For this reason, we have decided that the only sensible and fair course of action is to delay the tender offer until such time that we have a clear indication of the impact upon the fund valuation," Chairman Kevin Allen said in a statement.
"In summary, the board is very happy with the increase in value of the company's investments over the past year. The unquoted portfolio has continued to perform particularly well..." Allen said.
"The future economic environment is uncertain due to the Eurozone and the forthcoming domestic election, however the majority of our investee companies are in good shape and well positioned to take advantage of market opportunities as they arise," he added.
The trust is managed by Chelverton Asset Management Ltd.
Chelverton Growth Trust shares were up 4.2% at 46.37 pence on Monday.
By Samuel Agini; [email protected]; @samuelagini
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