LONDON (Alliance News) - Montanaro European Smaller Companies Trust PLC on Monday said its net asset value per share beat its benchmark in its recently-ended financial year.
The trust's NAV per share rose by 11% in the year ended March 31, ahead of its benchmark the MSCI Europe SmallCap (ex UK) Index which increased by 7.6%.
Montanaro said its returns benefited from strong underlying currencies, particularly the euro.
"The outlook for our portfolio remains encouraging, supported by record low interest rates, an improving employment situation and a benign inflation outlook. Historically, such a backdrop has proven to be positive for smaller companies, which tend to derive a greater portion of their profits from the domestic economy than larger companies," Chairman Andrew Irvine said in a statement.
"As always, there will be a number of geopolitical and economic events this year that will drive headlines and move markets. But it is important not to let these divert attention away from long-term investment decisions," he added.
Shares in Montanaro were trading up 0.2% at 562.00 pence on Monday morning.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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Montanaro (MTE)