(Alliance News) - Montanaro European Smaller Cos Trust PLC said on Friday that its net asset value total return had unperformed its benchmark in a difficult and volatile year for the stock markets.
The London-based investment firm said its NAV total return on March 31 was negative 7.1% undershooting its benchmark, the MSCI Europe ex-UK SmallCap Index, which returned negative 3.2%.
The net asset value per share for the period decreased by 7.6% to 158.4 pence from 171.5p the prior year.
Shares in Montanaro European Smaller Cos Trust were up 1.6% at 139.23 pence each in London on Friday morning.
"Inflationary pressures and subsequent monetary tightening by central banks increased the cost of capital globally," explained Montanaro European Smaller.
"High quality companies underperformed low quality companies in Europe; and growth companies underperformed 'value' companies."
It announced a final dividend of 0.77 pence per share, up 6.2% from 0.725p. It brings the total to 0.97p per share, up 4.9% from 0.925p the previous year.
Montanaro European said that this overall dividend increase reflected the underlying performance of its investments.
The company noted that the stock markets have been incredibly volatile in the last year following geopolitical turbulence and the Covid-19 pandemic
"While doubtless the world will again change in ways we cannot imagine in the coming years, we believe that current valuations offer an attractive entry point for long-term investors," said Chair Richard Curling.
By Will Neill, Alliance News reporter
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