Herald's NAV up by one-seventh in first quarter
Herald Investment Trust, which focuses on small quoted growth companies, marginally underperformed its benchmark index in the first quarter.
Herald Investment Trust, which focuses on small quoted growth companies, marginally underperformed its benchmark index in the first quarter.
Net asset value (NAV) total return, which factors in dividends paid out to shareholders, was 14.3% in the first three months of 2012, slightly below the 14.5% achieved by its benchmark index, which is a blend of the Hoare Govett Smaller Companies Index plus AIM (capital gains ex. Investment companies) and the Russell 2000 (small cap) Technology Index (in sterling terms).
Over one-year, three-year and five-year periods, however, the trust is giving its benchmark index a sound trouncing, as demonstrated below:
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
NAV total return (period/Herald's return/benchmark index's return)
One year - +4.5% (vs -2.1%)
Three years - +151.5% (vs +111.1%)
Five years - +45.8% (vs 19.6%)
During the quarter the company made net acquisitions of £1.3m. At the end of March 2012, all of the trust's £50m multi-currency loan facility had been drawn down. The trust's gearing ratio - total assets (including all debt used for investment purposes) less all cash and fixed interest securities (excluding convertibles and corporate bonds) divided by shareholders' funds - had eased to 103 at the end of March from 105 three months earlier. The potential gearing ratio - total assets (including all debt used for investment purposes) divided by shareholders' funds - dipped to 113 from 116 at the end of 2011.
The fair value of the related interest rate swap contract at March 31st, 2012 was an estimated liability of £16.8m based on the swap provider's valuation.
NAV per share at the end of March stood at 644.3p, including current year income, compared to 563.7p at the end of 2011. At the end of March the shares were trading at a 19.1% discount to NAV, representing a slight contraction from the end of year discount of 19.3%.
The shares edged up 2.5p to 517.5p on the results in the morning session.
JH
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
-
How ‘Bed & ISA’ could save you £15,000 over a decade
Moving your investments into a tax-free wrapper through ‘Bed & ISA’ transactions could save you thousands over the long run by cutting your tax bill
By Katie Williams Published
-
House prices hit record high, says Halifax
UK house prices rose 3.9% over the past year, with a typical property now costing £293,999. We look at which regions are seeing the strongest growth, and whether the rally in house prices will continue next year
By Ruth Emery Published