20th Jan 2017 09:33
LONDON (Alliance News) - River & Mercantile UK Micro Cap Investment Company Ltd said Friday it outperformed its benchmark index in its most recent financial year.
The company reported a net asset value total return of 14% for its financial year ended September 30, 2016, compared to 10% from its benchmark index.
The investment company's net asset value per ordinary share stood at 126.24 pence at September 30, 2016, up from 110.36p at the same date in 2015.
Shares in River & Mercantile UK Micro Cap were untraded Friday morning, having last traded at 134.00 pence.
The portfolio's most positive contributor was mobile advertising company Taptica International Ltd, with a 141% return for the year. The most negative contributor was women's clothing retailer Bonmarche Holdings PLC, down 67%.
"Volatility is the friend of the active investor and, as the past year has shown, not necessarily the foe of the micro cap section of the market. The resilience seen is in part due to the ongoing discount valuation experienced by many UK micro cap companies," said Philip Rodrigs, manager of the portfolio.
"These low starting valuations entering into a volatile period naturally provide an element of protection for share price performance compared to stocks that enter such a period with over-inflated valuations. Meanwhile the underlying economic conditions remain relatively stable, thereby allowing individual companies to continually further their growth or recovery trajectories. As such we continue to look forward to delivering attractive long term returns into the future," added Rodrigs.
By Adam Clark; [email protected]
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