26th Jun 2024 10:30
(Alliance News) - Global Smaller Cos Trust PLC on Wednesday reported stronger returns, albeit below that of the target benchmark.
The London-based investment trust focused on smaller companies said net asset value, with debt at par value, rose 7.5% to 175.88 pence per share at April 30 from 163.73p at the same time a year prior.
Global Smaller Cos Trust shares were up 0.9% to 161.79 pence each in London on Wednesday morning.
NAV total return was more favourable in the year that ended April 30, at 9.0% compared with negative 2.9% previously.
However the trust underperformed its benchmark, a combination of the MSCI All Country World ex UK Small Cap Index net (80%) and the Deutsche Numis UK Smaller Cos (20%), which delivered an 11% return.
Global Smaller increased its final dividend by 8% to 2.13p from 1.67p, raising the total dividend by 22% to 2.81p from 2.30p.
Chair Anja Balfour said: "Over the last few years UK investment trust company discounts have widened, given increased caution around the economic and geopolitical outlook. There have been outflows from UK based equity funds in general and smaller company funds have been hurt even more than larger company funds by this trend.
"Starting the financial year at 12.7%, your company's discount reached 17.7% in July 2023 before closing at 10.0%, still some way from the board's target of less than 5%...The board continue to believe that a consistently applied share buyback approach is in shareholder's best interests."
Looking ahead, the trust said it maintains the view that smaller companies have the potential to deliver faster earnings growth and value expansion.
By Elijah Dale, Alliance News reporter
Comments and questions to [email protected]
Copyright 2024 Alliance News Ltd. All Rights Reserved.