Smithson Investment Outperforms Benchmark In Improving Market

(Alliance News) - Smithson Investment Trust PLC said Tuesday it outperformed its comparative ...

Alliance News 13 August, 2019 | 9:57AM
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(Alliance News) - Smithson Investment Trust PLC said Tuesday it outperformed its comparative index for the period from its London listing on October 19 last year to the end of June, amid improved market conditions.

For the period, Smithson Investment's net asset value total return was 20.3%, outperforming its comparative index, the MSCI World SMID Index, which returned 7.5%.

Net asset value per share as at June 30 was 1,202.5 pence, up 20% from 1,000.0p at the trust's inception in October.

Smithson's share price at the end of June was 1,234.0p, reflecting a premium to net asset value of 2.6%.

Shares in the investment trust were down 0.4% on the day Tuesday at 1,239.04 pence, having improved since the period-end.

Smithson said that conditions eased in the financial markets during the recent period, largely due to the cooling of the trade tensions between the US and China and US Federal Reserve Chair Jerome Powell shifting stance and hinting at interest rate cuts, one of which was delivered at the end of last month.

The trust noted that lower interest rates will mean that the earning streams and shares of companies will start to have higher value to investors.

During the period, Smithson made no real changes to its portfolio, keeping the number of companies at 30 with a fair value of GBP1.20 billion.

"The board remains positive on the outlook for global small and mid cap equities in the medium to long term but realises that politics and other macroeconomic factors might affect market movements in the short term," said Chair Mark Pacitti.

"The board intends to continue to issue new shares so as to generate additional value for shareholders net of all issue costs and to enable the investment manager to continue to seek attractive investment opportunities for any further capital raised," Pacitti added.

By Dayo Laniyan;

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Smithson Investment Trust Ord 1,515.75 GBX -0.28 -

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