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Smithson Investment net asset value falls short of benchmark index

28th Feb 2023 12:22

(Alliance News) - Smithson Investment Trust PLC on Tuesday said its net asset value fell on a yearly basis and underperformed losses seen by its comparator benchmark index.

The London-based investment trust said NAV per share on December 31 was 1,410.70 pence, down 28% from 1,961.00p a year earlier.

This meant it significantly underperformed its comparator benchmark the MSCI World SMID Index, which had a total return during the same period of negative 8.7%.

Shares in Smithson Investment were down 1.4% to 1,374.36 pence each in London on Tuesday at midday.

This was due to a swing to an investment loss held at fair value to GBP970.9 million across 2022, from a gain of GBP513.3 million in 2021.

Across 2021, NAV total return was positive 19%, while it remains up 41% since the company listed in October 2018.

Smithson Investment looked positively on how NAV allegedly improved in the second half of 2022.

"The improvement in the company's net asset value which commenced in the second half of 2022 has continued, to date, in 2023. However, uncertainty around future interest rate rises, high levels of inflation and fears of a recession are likely to continue in the coming year," said Chair Diana Dyer Bartlett.

"Whether the opening of the Chinese market post the lifting of Covid‑19 restrictions will have a positive impact by generating economic growth or unleash further inflation or both is also uncertain. Political uncertainty has increased and there seems no end in sight to the Ukraine conflict. These are not easy conditions for a portfolio manager to navigate."

Smithson is yet to pay a dividend to shareholders.

By Greg Rosenvinge, Alliance News reporter

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