9th Apr 2014 10:26
LONDON (Alliance News) - Invesco Perpetual UK Smaller Companies Investment Trust PLC Wednesday said its net asset value rose by almost a third on a total return basis over its last financial year, broadly in line with its benchmark index.
In a statement, the trust said its net asset value grew by 31.4% on a total return basis in the year to January 31, compared with the Numis Smaller
Companies Index (excluding Investment Companies), which returned 31.8%.
Positive contributions came from the industrial and support service sectors, while the portfolio's exposure to the oil and gas and mining sectors negatively affected performance, according to the trust's investment manager, Invesco Asset Management Ltd.
By comparison, the trust and the UK Smaller Companies sector as a whole significantly out-performed the wider UK stock market, as measured by the FTSE All-Share Index, which rose by 10.1%.
Over the same period, the mid-market price of the trust's shares increased by 28.5%, to 316.8 pence from 246.5 pence per share. Having narrowed during the year, the discount to NAV at which the trust's shares trade ended the year marginally wider at 13.9% compared with 13.7% at the end of the previous financial year.
The beginning of 2014 has seen a continuation of last year's strong performance, according to the investment manager, with the Numis Smaller Companies Index (ex Investment Companies) rising 6.4% (total return to the end of February).
"There are however, potential headwinds in 2014," portfolio managers Jonathan Brown and Richard Smith said, "in the shape of reduced central bank stimulus, historically high valuations and a new issue market that shows signs of overheating."
"Nevertheless, with the economy on a sounder footing and the potential return of mergers and acquisitions activity after the one of the quietest years on record, we remain optimistic about further positive returns in the coming year."
The trust's shares were Wednesday quoted at 329.85 pence, up 1.3%.
By Samuel Agini; [email protected]; @samuelagini
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