2nd Oct 2014 08:26
LONDON (Alliance News) - Pantheon International Participations PLC on Thursday said its net asset value rose by 2.4% in its last financial year, as a 13% underlying investment gain was reduced by the strength of sterling relative to the dollar, and to a lesser extent to the euro and other currencies.
The trust's NAV per share was 1,364.24 pence at the end of June.
In a statement, the private equity fund of funds investment trust said it believes currency volatility has minimal effects on investment returns in the long term, but admitted that adverse foreign exchange movements can be frustrating in the short term. According to the trust, 54% of the portfolio is invested in funds focused on the US, because of the "greater resilience and depth of opportunity" in that market.
PIP said portfolio generated a return including income of 13.4% relative to opening assets before foreign exchange effects, which reduced NAV per share by 10.1%. Share buybacks added 0.5% to the NAV per share and expenses including taxes amounted to 1.4%, PIP added.
"The net performance, therefore, masks strong underlying growth, in particular from our US portfolio in a period that saw US GDP grow, in real terms, by 1.9%, and the S&P 500 reach all-time highs. In Europe, while overall the economic outlook was not as resilient, we continue to see good performance out of the region," Chairman Tom Bartlam said in a statement.
"Despite a faltering GDP outlook, particularly in Europe, a sample representing approximately 70% of PIP's buyout portfolio continued to demonstrate earnings growth in excess of broader equity markets," Bartlam added.
The investment trust said it received distributions of GBP184.0 million during the year, equivalent to an annual rate of 22% of opening portfolio assets. Calls from underlying private equity funds were GBP42 million. This resulted in a net portfolio cash flow prior to new investment commitments of GBP142 million during the year.
The trust expects its portfolio to continue to generate positive net cash flows, citing its "maturity" and weighted average fund age of 7.8 years.
PIP made 29 new investments in the year, amounting to GBP148 million in commitments with GBP92 million drawn. This consists of six secondary and four primary commitments totalling GBP106 million of commitments to funds, and 19 co-investments alongside selected private equity managers of GBP42 million. Since the year end, PIP said it has committed a further GBP70 million; GBP41 million to three secondaries, GBP6 million to two co-investments, and GBP23 million to three primary funds.
The trust said it has seen further NAV per share growth of 5.8% since the end of the year, partly driven by investment gains including income, and a reversal of foreign exchange effects, which gave rise to a 4.0% and 2.0% uplift per share.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Pantheon International