15th Mar 2022 12:24
(Alliance News) - Smithson Investment Trust PLC reported on Tuesday it had slightly outperformed its benchmark in its full-year, but has faced tough market conditions since December.
For 2021, the FTSE 250-listed trust said net asset value total return was 18.9%, compared to its benchmark the MSCI World SMID Cap Index, which had a return of 17.8%.
Its net asset value total return was 31.4% in 2020, which was a huge outperformance of the benchmark return of 12.2%.
Net asset value per share increased 19% year-on-year to 1,961.0 pence at December 31, from 1,648.9p a year before. At December 31, Smithson's share price was 2,020.0p, trading at a 3.0% premium to net asset value, down from a 3.7% premium the year before.
Smithson highlighted US cybersecurity company Fortinet Inc which contributed 4.2% to its outperformance, as well as German software company Nemetschek SE 1.9%, and US credit bureau Equifax Inc 1.8%.
Smithson did not propose a dividend, reflecting its focus on long-term capital growth rather than income. It said it would pay dividends "as necessary" to maintain its status as an investment trust in the UK.
In 2022 so far, it reports a fall in net asset value and share price greater than the fall of its benchmark MSCI World SMID Cap Index, with shares trading at a 1.5% discount to net asset value at the end of February.
Shares in Smithson were down 1.9% to 1,479.55 pence each in London at midday on Monday.
"The last two months have clearly been very challenging for investors, but the investment manager and the board encourage shareholders to take a long term perspective on their investment. We face unprecedented times with the recent invasion of Ukraine which raises a spectrum of uncertain variables. Fortunately, the company's portfolio has low exposure to that region," said Chair Diana Dyer Bartlett.
"The investment manager focuses on investing in companies it believes can compound in value over many years."
By Elizabeth Winter; [email protected]
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