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    16:35pm 19th May 2017

    North Atlantic Smaller Cos Trust Waits On More Inviting Valuations

    LONDON (Alliance News) – North Atlantic Smaller Companies Investment Trust PLC said Friday it made a positive net asset value return in its recent financial year, but said it is holding cash in reserve for further UK investments.

    The trust, which invests in UK and US stocks, said its net asset value at January 31 stood at 2,966.0 pence, up 8.1% from 2,746p at the same date in 2016.

    This compares to a 33% rise in Standard & Poor’s Composite Index over the same period, although the trust noted it performed broadly in line with the average for UK small-cap firms over the same period.

    Shares in North Atlantic Smaller Cos Investment Trust closed down 0.4% at 2,713.53p Friday.

    The company has no dividend paying policy. At the year-end it held GBP129.0 million in cash and US Treasury bills.

    “In the UK opportunities are still hard to find with too much capital chasing too few deals. A probable increase in sterling interest rates and a possible decline in large UK company earnings growth could reduce equity prices overall, enabling us to deploy our substantial cash reserves effectively on this side of the Atlantic as well,” said Chairman Peregrine Moncreiffe.

    “Brexit may bring us an improved opportunity set as continental European investors focus increasingly on their domestic markets and Euro weakness has a depressing impact on the earnings of large export-oriented UK companies,” added Moncreiffe.

    By Adam Clark; adamclark@alliancenews.com

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