29th Jul 2020 11:38
(Alliance News) - Smithson Investment Trust PLC on Wednesday reported a first half net asset value rise and outperformed its benchmark during what was a tumultuous period for financial markets.
Smithson's net asset value per share at June 30 came in at 1,447.6 pence, up 15% from 1,255.2p at the end of December.
Shares were down 0.1% at 1,511.00p each in London on Wednesday morning.
The company reported a net asset value total return of just over 15%, below the 28% figure from a year ago but beating its benchmark, the MSCI World SMID Index, which returned negative 4.7%.
"I am delighted to report that the company has again produced extremely good results both in absolute terms and relative to the benchmark during this six month period, particularly in light of the challenges presented to global markets by the Covid-19 pandemic," Chair Mark Pacitti said.
"The company now holds 31 investments. During the period two new investments were made and there were no outright divestments, although there were some changes in the weightings of the investment holdings which resulted in divestments."
The biggest contributor during the half was Danish firm Ambu, which provides disposable medical equipment used for assessing Covid-19 patients. Medical technology firm Masimo was also one of the better performers in its portfolio, likewise Domino's Pizza Enterprises, which owns the pizza chain's franchises in Australia, New Zealand and several European countries.
"It benefited over the last six months by being able to keep many of its stores open whilst all other restaurants were closed. It was mostly unaffected by restrictions on the hospitality industry as it doesn't tend to have table seating in store," Smithson said.
Not faring as well was US firm Sabre, which provides software connecting travel suppliers to airlines and hotels.
London-listed Rightmove PLC also struggled as the UK housing market was shuttered due to lockdowns. Interestingly, Domino's Pizza Group PLC did not fare as well as its Australian counterpart; it saw more mixed results despite its largest market, the UK, performing "relatively well".
As of June 30, 40% of Smithson's investments are in the IT sector, with Industrials next up at 22% and Healthcare at 14%.
By Eric Cunha; [email protected]
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