Nimmo's small cap trust beats index with 38% growth

Harry Nimmo’s UK Smaller Companies Trust has once again benefited from a bout of risk aversion among investors.

Over the 12 months to 30 June, Citywire Selection manager Nimmo’s top performing Standard Life Investments company saw its portfolio grow 38.5%, while the Hoare Govett Smaller Companies Index (ex investment companies) rose by a 24.4%.

After a period of underperformance during the first phase of the year – as high quality growth stocks remained out of favour due to July’s risk recovery – performance of the trust gradually improved from October onwards and finished the year on a high.

Online fashion brand ASOS was a key contributor. The stock grew 153% over the year and has consistently beaten expectations thanks to its growing international presence.

Antibody distributor Abcam – the second-largest position in Nimmo's Citywire Selection trust – also continued to deliver on expectations.

The investment company's third online business, property website Rightmove, also forged ahead, as advertisers continued to shift their focus from the printed page towards websites and internet forums.

Nimmo (pictured) pointed out the trust’s other holdings in the electronics and electrical sectors enjoyed robust performance too, namely his positions in Ulster-based digital camera specialist Andor Technologies and Dialight, the LED lighting company.

But it was the £103 million portfolio's most recent additions that let it down, including Axis Shield, the Dundee maker of medical testing kits, investment firm Evolution Group and set-top box company Pace.

Goals Soccer Centre also proved a disappointment even though it successfully branched out across the Atlantic with the opening of its first football centre in the US.

Sluggish recovery set to continue