Stephen Peters, Investment analyst, Charles Stanley
Harry Nimmo’s is one of the best-performing trusts in the smaller companies sector. Over 10 years his price return leads by some way. The next is BlackRock Smaller Companies.
Nimmo has a brilliant long-term performance, although the net asset value (NAV) in comparison with peers has come off a little. The NAV over three years is up 86.5%, which is a little behind Henderson Smaller Companies and BlackRock, but it’s still well in excess of the benchmark.
Buying growth stocks has done exceptionally well in small caps over the past five years: it’s his style. The same applies to other growth managers, such as BlackRock and Montanaro. The others that have not done so well are more value oriented.
The only issue would be with the growth style: if that reverses, Nimmo will be left behind.
The trust is yielding 1.3% but, interestingly, if you want yield, you could buy the convertible loan stock at 3.5% and you get the right to buy the fund at a later date.
Nimmo’s trust is running on a premium compared with the rest of the sector, which is on a discount.
It’s less attractive now than it was, but by no means is it a ‘sell’.