20th Nov 2013 14:44
LONDON (Alliance News) - Montanaro European Smaller Companies Trust PLC Wednesday said it underperformed against its benchmark index as net asset value remained static over the half year.
Montanaro European, which primarily invests in Continental European-quoted smaller companies, said its net asset value was static at 559.2 pence per share over the first-half, compared to a 10.9% increase in the MSCI Europe Small Cap (ex UK) Index.
"Such periods of marked underperformance by the company are rare, but they are a natural by-product of the long term "buy and hold" investment strategy focused exclusively on high quality businesses. Whilst the company's short term performance is disappointing, its longer term performance record remains good. Since the appointment of Montanaro Asset Management Limited as Investment Manager in September 2006, the NAV per share has risen by 62.4% compared with an increase of 33.4% in the benchmark index," Montanaro European said in a statement.
The company incurred GBP141,000 in capital losses on investments held at fair value over the half year, but these were partly offset by GBP118,000 in exchange gains.
Montanaro European reported a GBP1.0 million half-year pretax profit, compared with GBP1.4 million pretax loss last year.
Capital losses on investments held at fair value ate away at revenues in both years.
Montanaro European shares were Wednesday quoted at 505.50 pence, down 0.9%.
By Samuel Agini; [email protected]; @samuelagini
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