Annual figures from the Standard Life Smaller Companies trust have seen net asset value (NAV) total returns reach 24.8 per cent in the year to 30 June, outperforming the 8.5 per cent total return of the trust's index.
The report highlighted a share price total return of 17.7 per cent, which is calculated on the basis that all dividends received are reinvested in additional shares, as is the case with the NAV total returns.
In the year to 30 June 2018 the trust enjoyed a capital return of 552.93p NAV per share, an increase of 21 per cent on the previous 12 months. The share price also increased to 500p from 431p over the year, up 16 per cent.
At 30 June net assets stood at £408.3m, a 26 per cent increase on the previous financial year. Market cap rose by a similar margin of 25.5 per cent to £369.2m.
Dividends increased by 4.5 per cent to 7p in the year to 30 June, and the trust has confirmed the final dividend will be 5.50p. This will be paid on 31 October to shareholders on the register on 5 October 2018.
On acquisitions and sales, the trust identified five key additions to its portfolio.
These included Safestore Holdings, which operates self-storage facilities across the UK, and Gooch & Housego, a designer and manufacturer of precision electro-optical and laser components for industrial, healthcare and research applications.
They also included Alpha Financial Markets, a fund management consultancy; Blue Prism, a process automation and configuration company that provides robotics to office functions; and The Gym Group, which is a UK value-for-money gym operator.
Important sales during the reporting period included NMC Healthcare, which became a member of the FTSE 100 index during this time, and Fevertree Drinks.
Commenting on the market outlook Harry Nimmo, Aberdeen Standard Investments’ portfolio manager, said: "The two over-arching issues going forward are Brexit and the threat of trade wars. Bad outcomes in both cases could cause mayhem far beyond the realm of British smaller companies. Investors thus continue to favour better quality, growing companies with strong business momentum."
He added: "Smaller company investing should be viewed as a long term investment and we have no doubt that patient investors will be rewarded in the longer term. Our stable process has been seasoned by four economic cycles. I remain very optimistic about the future of the company in the long term."
