ASCoT underperforms against benchmark

22nd Jul 2009 17:09

Aberforth Smaller Companies Trust (ASCoT) said it has underperformed relative to the benchmark index in the six month ended 30 June, but still declared its first interim dividend of 6.00 pence per share."The conservative positioning of the portfolio has resulted in an underperformance relative to the benchmark index," said chairman David Shaw. In the six months period, ASCoT achieved a net asset value total return of 20.8%, which compares with a total return of 27.1% from the Hoare Govett Smaller Companies Index (Excluding Investment Companies), the company's investment benchmark. The FTSE All-Share Index, a representative of larger companies, registered a total return of 0.8%. The group said it underperformed its benchmark during a period when smaller companies outperformed larger companies.At 30 June, gearing was 9%."Stock markets remained challenging during the first three months of 2009. Subsequently there has been a discernable return of investor appetite for equity risk and this has benefitted ASCoT's portfolio in absolute terms," said Shaw.