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Global Smaller Cos Trust PLC on Thursday said its annual performance was affected by a ‘challenging’ year, but noted its raised dividend payout was ‘a good sign’.
The London-based investment trust said net asset value at April 30 was 165.9 pence per share, down 4.0% from 172.8p a year prior. NAV total return was negative 2.9%, falling below the benchmark of negative 2.1%.
Global Smaller Cos cited a ‘difficult global market backdrop’ for growth-orientated stocks due to high inflation rates, but said the second half of the year ended April 30 showed a ‘modest recovery.’
The company declared a final dividend of 1.67p, up 31% from 1.27p a year prior. This brings the full-year dividend to 2.30 pence, up 25% from 1.84p the year before.
Looking ahead, Global Smaller Companies said it remains confident in medium-term prospects.
Chair Anja Balfour said: ‘It seems likely that the path of inflation and interest rates in the next few months will have a large bearing on equity market trends. The lagged impact of previous rate hikes will be a headwind in the coming period for the global economy. Having said this, the manager is continuing to find opportunities in the markets.’
Shares in Global Smaller Companies were down 0.7% at 139.60p each in London on Thursday morning.
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