LONDON (Alliance News) - Octopus AIM VCT PLC, managed by Octopus Investments Ltd, on Friday said its last financial year was characterised by an "unsettled stock market".
That had the effect of "dampening" enthusiasm for share prices even when companies demonstrated good business progress, Chairman Michael Reeve said in a statement.
"The year opened with worries about an impending General Election which turned briefly to euphoria on the news of a single party majority in May before international political and economic concerns once again created the conditions for market volatility. This uncertainty has continued into 2016, with attention now on the European Referendum in June," said Reeve.
Performance was "rather muted" with the 9.3p of dividends paid out in the year only just exceeding the fall in the net asset value, to give a small positive total return.
"Some of the mature holdings in the portfolio have seen their share prices advance on good news but it has been significantly harder for the earlier stage companies which have yet
to make a profit. Their shares have tended to fare much worse in a risk averse market even when they have met expectations," said the chairman.
Adding back the 5.3p of ordinary and 4p special dividends paid out in the year, the net asset value rose marginally, by 0.6% in the year ended February 29. This compares with a fall in the AIM index of 1.7%, a fall in the FTSE All Share Index of 7.3% and a rise in the Smallcap Index ex Investment Trusts of 1.6%, all on a total return basis.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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Octopus Aim (OOA)