24th Mar 2020 09:47
(Alliance News) - HG Capital Trust PLC on Tuesday said performance of its investees is highly unlikely to be hurt by Covid-19.
The FTSE 250-listed investment company said its investment manager Hg invests in companies that focus on critical activities such as delivering legal, health and safety advice to many thousands of businesses globally, helping these companies to pay taxes and payroll, deliver healthcare services, audit and manage supply chains and provide many other services.
These types of company and their business models are potentially less likely to be disrupted by the pandemic than the broader economy, HG Capital Trust noted.
It said Hg anticipates that the trust's portfolio in aggregate will continue to deliver growth over the long-term. However, the portfolio manager said some investments can potentially suffer year-on-year declines in performance.
"Hg will continue to stress test the portfolio, in order to identify any issues as early as possible," the trust said in its statement Tuesday.
Looking forward, Hg believes that there are likely to be short-term declines in the overall valuation of the trust's portfolio and thus in the reported net asset value.
However, the long-term nature of listed private equity investment, the types of business that Hg invests in and the scale of the structural opportunities that these can deliver, will continue to drive long-term growth, the manager said.
"The board remains confident in Hg's management of the portfolio and the ability of HG Capital Trust as a long-term investment to continue to perform across all cycles," said HG Capital Trust Chair Roger Mountford.
HG Capital Trust shares were trading 4.6% higher in London on Tuesday at 190.33 pence each.
By Evelina Grecenko; [email protected]
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