28th Nov 2019 11:02
(Alliance News) - Montanaro UK Smaller Cos Investment Trust PLC said Thursday it outperformed its benchmark at the half-year stage, despite the tough economic environment driven by Brexit uncertainty.
For the six months to the end of September, Montanaro UK's net asset value total return was 3.5%, compared to its benchmark - comprising the FTSE SmallCap Index until March 31, 2013, and the Numis Smaller Companies Index ex Investment Companies - which returned 1.6%.
As at September 30, the trust's net asset value per share was 131.0 pence, down from 142.6p the same date the year before, and 1.4% lower from 129.2p at the end of March.
The trusts net assets at the end of September increased by 1.4% to GBP219.2 million from GBP216.2 million as at March 31.
Montanaro UK's share price as at September 30 was 109.0p, reflecting a 17% discount to net asset value.
Shares on Montanaro UK Smaller Cos were up 1.8% on the day Thursday at 130.00p, having improved further since the period-end.
The trust said despite continued Brexit uncertainty created a tough environment, Montanaro UK said its performance has helped by its focus on "Quality" companies.
In particular, the trust noted that two companies in its portfolio, Entertainment One PLC and Charles Taylor PLC received takeover bids at premia of over 30%.
"It is worth remembering that the UK remains home to many high-quality businesses. With sterling weaker than it has been in a generation, equity valuations cheaper compared to many other stock markets and economic data weakening in countries such as the US, it may be that investors will look at UK SmallCap once again. Montanaro's portfolio of quality UK companies may be a good place to start," said Montanaro Asset Management Ltd.
By Dayo Laniyan; [email protected]
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