19th Jul 2019 11:14
(Alliance News) - Herald Investment Trust PLC said Friday its net asset value rose over the first half of 2019 due to the increase number of company takeovers during the period.
The trust's net asset value per share as at June 30 was 1,532.61 pence, up 1.7% from 1,506.5p the same date the year before, and up 17% from 1,307.9p at the end of December 2018.
Herald's share price as at June 30 was 1,336.00 pence, reflecting a 13% discount to net asset value.
Shares in the trust were up 1.2% on Friday at 1,275.50p, having declined further since the end of the period.
The UK portfolio returned 16% compared to the benchmark Numis Smaller Companies Index plus AIM, which saw a return of 9.8%.
Within the UK part of Herald's portfolio there were five takeovers, valued at GBP14 million in total, at a 51% premium to the aggregate value at the start of 2019.
The North American section of Herald's portfolio returned 28%, outperforming the sterling return of the Russell 2000 Technology Index of 23%.
Stocks reflecting 20% of the value of the North American portfolio received complete or incomplete takeovers with a combined value 43% higher than the value at the start of 2019.
The Asian segment returned 23% and the EMEA region returned 20%.
"In spite of the political turmoil in a number of places, the market background for both the stock market and the underlying trading in the portfolio companies in general has been benign. The economic upturn is now a decade long. Unquestionably the most recurrent issue in meetings with the portfolio companies is staff turnover and upward wage pressure - particularly in Northern California and to a lesser degree in London, but wage pressure has abated in China," said Chair Ian Russell.
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Herald Investment Trust