27th May 2016 16:47
LONDON (Alliance News) - Hargreave Hale AIM VCT 1 PLC, a venture capital trust that aims to generate capital growth and tax free distributions for shareholders by investing in small UK companies listed on AIM, on Friday said it held up well in the first half in "adverse" conditions.
The trust said its net asset value per share decreased to 73.91 pence from 74.64p in the six months ended March 31, equivalent to an increase of 2.0% after adding back the 2.25 pence dividend distributed in January 2016.
During the same period the FTSE 100 Total Return Index rose 3.8% and the FTSE AIM All Share Total Return Index fell 1.3%.
Chairman Aubrey Brocklebank said the second half will be "dominated" by the UK's vote on whether or not to leave the EU. The referendum is scheduled for June 23.
"There is a huge amount of differing opinion about the economic outlook if Britain votes to leave. It seems impossible to find two economists who agree and as stock markets generally react adversely to uncertainty we seem set for a turbulent time in the next few months," said Brocklebank.
"If we do vote to leave, I think that the financial Armageddon scenario predicted by some is unlikely but how long it will take for the dust to settle is far from clear. Notwithstanding the Brexit effect the outlook for the second half is showing signs of economic fragility. However the portfolio comprises sound companies which in the long term should prosper," the chairman said.
Shares in Hargreave Hale AIM VCT 1 were untraded Friday, closing at 71.50 pence.
By Samuel Agini; [email protected]; @samuelagini
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