Following the return of Charles Montanaro as manager in 2016, Montanaro UK Smaller Companies Trust (MTU) has rebuilt its long-term record of outperformance of its benchmark over the last three and a half years. A strong uplift in net asset value (NAV) during the second half of 2019 (helped by some clarity on Brexit) has improved the trust’s standing against its competitors. Versus its peers, MTU ranked second ou tof 11 funds in our peer group during the second half of 2019 in terms of its NAV total return… Read more
Shareholders have also been rewarded by a marked reduction in the trust’s discount to NAV, although there may be more of this to come –MTU’s discount remains wider than its peer group. In an uncertain economic environment, the trust’s focus on quality companies should serve it well. The manager also notes that the qualities of the portfolio companies are often appreciated by bidders and expects last year’s strong M&A activity to continue this year, with UK assets attractively valued.
MTU aims to achieve capital appreciation through investing in small quoted companies listed on the London Stock Exchange or traded on AIM and to outperform its benchmark, the Numis Smaller Companies Index (excluding investment companies).
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