LONDON (Alliance News) - BMO Private Equity Trust PLC said on Friday it strongly outperformed its comparative benchmark in 2018, in what the trust regarded as a strong year for the private equity market.
The trust, which invests in private equity funds, reported a net asset value total return of 12.4%, compared to a 9.5% negative return from the FTSE All-Share Index.
BMO's net asset value per share as at December 31 was 386.29 pence from 357.23p the same date the year before.
The share price at the end of 2018 was 317.00p, reflecting a discount to net asset value of 18%, widened from 5.1% at the end of 2017. Shares in BMO were up 0.7% on Friday at 342.24 pence.
During the year, the trust made new investments totalling GBP71.8 million, while realisations and associated income totalled GBP82.7 million.
BMO Private Equity declared a total dividend of 14.37 pence per share, up 2.4% from 14.04p the year before.
"The company has delivered a strong outcome for the year. The performance is broadly based and the benefits of having a well diversified international portfolio are well demonstrated by the heterogeneity of the portfolio," said Chair Mark Tennant.
"Many of the companies are operating in specific niches and these can often show growth, which is more closely linked to the adoption of a product or service than to the background economy or dynamics of a particular industrial sector. The portfolio is well placed to deliver further growth in 2019," Tennant added.