According to the company’s annual financial results for the year, the net asset value of the trust rose by 7.9% to 171.5p per share during the financial year ended 31 March 2022, while its benchmark, the MSCI Europe (ex-UK) Small Cap Index rose by 2.2%.
Over three and five years respectively to 31 March 2022, the trust delivered a NAV total return of 20.1% and 17.0% per year, outperforming its benchmark by 7.6% and 8.3%.
Over this period, the share price moved from a premium to NAV of over 1% to a discount of 2%. As a result, the share price total return was 4.8%. The dividend of 0.925p per ordinary share remained unchanged.
Momentum Multi-Asset Value continues to deliver ‘mediocre’ performance
Chair RM Curling said that although headline numbers may appear “unremarkable”, they disguise “significant volatility” during the year due to the rotation into value companies at the start of the year.
“The first nine months of the fiscal year were exceptionally strong with the NAV rising by 34.7%, outperforming the benchmark by 23.4%, as high quality, growth companies were particularly in favour with investors,” he said.
“In the final three months of the fiscal year, these trends sharply reversed as inflationary pressures caused bond yields to rise, stock markets to fall and high quality and growth companies to be shunned.”
The gearing of the trust has risen from 2.4% in March 2021 to 4.6%, reflecting what Montanaro believes is “a higher number of attractive investment opportunities” following share price falls.