River & Mercantile UK Micro Cap Investment Co Ltd on Wednesday announced net asset value growth, noting positive signals for the small company sector.
The London-based advisory and asset management company said net asset value per share rose 3.8% to 177.1p in the financial year that ended on September 30 from 170.6p a year ago.
NAV total return of 3.8% outperformed the comparative index, the Numis Smaller Companies plus Alternative Investment Market, which climbed by 3.3% over the same time.
Chair Andrew Chapman said: ‘A very positive signal for the small company sector was the recently announced ’Mansion House Compact’ between HM Government and nine large UK fund managers who undertook to put 5% of the assets in their clients‘ pension fund assets into unlisted equities by 2030. Importantly for us, for this purpose AIM listed stocks are included in the definition of unlisted equities. This move could certainly act to boost the market for smaller companies.’
Looking ahead, he said: ‘In summary, with UK equities in general, and UK investment trusts in particular, looking unloved, this looks to be an opportune time to buy rather than sell,’ adding that ‘we continue to believe that longer term the small cap market will return to favour. Also, we absolutely believe that whatever the market might think, this is not the time to be selling given prevailing market valuations and the discount to NAV.’
River & Mercantile UK shares fell 3.3% to 143.55 pence each on Wednesday afternoon in London.
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