(Alliance News) - Pantheon International PLC on Thursday reported an improved net asset value per share in the first half of its current financial year, beating one benchmark but falling just short of another.
The FTSE 250 investment trust has a portfolio of private equity companies. As at November 30, the end of its first half, its NAV per share stood at 3,139.16 pence. This was 12% higher than the prior year NAV per share figure of 2,799.19p.
Pantheon's annual NAV performance beat one of its benchmarks, with the FTSE All Share total return being minus 10%. However, the MSCI World total return in sterling terms was 13%.
Chair Laurie Magnus said: "The buyout and growth segments, which form the majority of [Pantheon International's] portfolio, benefitted from strong valuation gains and exits during the six months. These were primarily in healthcare and information technology, with one notable gain in particular coming from Allegro, an online marketplace provider in Poland, which launched an initial public offering and has since become the largest company by market capitalisation on the Warsaw Stock Exchange.
He added: "The very strong performance in venture was driven primarily by the successful IPO of a technology company in the portfolio. By investing in private companies managed by many of the best private equity managers globally, PIP is able to capture the rapid growth and value creation that often occurs before those companies reach the listed markets.
Special situations, accounting for 8% of Pantheon's portfolio, was flat - "impacted by valuation declines in companies with energy exposure" according to Magnus - with the company now in the process of de-emphasising energy in its portfolio.
"As investments are realised, we would expect to see PIP's energy exposure decline further over time as a proportion of the company's NAV. At the end of November 2020, energy represented just 4% of the portfolio," said Magnus.
Senior Independent Director Susannah Nicklin, a member of Pantheon's board since November 2011, will be retiring following conclusion of the company's 2021 annual general meeting.
Looking ahead, Magnus said: "The board believes that PIP's investment positions have, in general to date, come through the Covid-19 crisis in good shape and that the company is well-positioned for the future. Pantheon, with nearly 40 years' experience of investing in private markets, has valuable longstanding relationships with the underlying managers of PIP's portfolio, which are not easy to replicate. PIP's flexible investment approach and ability to vary the pace of its commitments, together with its strong balance sheet and liquidity, means that it can respond opportunistically and quickly to market conditions.
"This combination of PIP's financial resilience and Pantheon's managerial acumen gives the board confidence that PIP will continue to produce attractive returns for shareholders which can outperform public market benchmarks over the long term."
Shares in Pantheon International were down 0.2% at 2,480.00p in London on Thursday morning.
By Anna Farley; annafarley@alliancenews.com
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Pantheon International (PIN)