Aberforth Smaller Companies Trust Plc Share News (ASL)

LONDON (Alliance News) - Aberforth Smaller Companies Trust PLC on Wednesday said its net asset value total return missed its benchmark in its first half, but the trust said it was raising its interim dividend.

The trust reported a negative total return on net asset value of 11.3% for the six months ended June 30, behind the negative 5.6% return for its benchmark, the Numis Smaller Companies Index (Excluding Investment Companies).

"It is clear that this has been a disappointing six-month period in both absolute and relative terms. In financial markets, describing events as 'exceptional' has been a somewhat overused cliche in recent years. In the aftermath of the Brexit referendum and with ten year gilt yields falling below 1.0%, such a description of the six months to June 30 seems entirely appropriate," said Chairman Paul Trickett.

"However, with valuations already almost a third below their peak of the last three years and with Aberforth's robust income characteristics, this situation will not last indefinitely. Moreover, the managers are well placed to take advantage of the market volatility that has followed the referendum and that has given rise to some anomalous valuations for good businesses," Trickett added.

Aberforth Smaller Companies said it was raising its interim dividend to 8.60 pence per share, up from 8.16p per share.

Shares in Aberforth Smaller Companies were up 0.4% at 983.34p on Wednesday.

By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland

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