Gervais William’s Gartmore Fledgling trust has marginally outperformed, increasing the value of its portfolio 8.5% over the year to the end of June versus a 8.4% increase in its Fledgling Index.
This has led the board to recommended a final 4p dividend, up from 3.5p last year, alongside a special dividend of 2.6p, bringing the total for the year to 7.5%, 25% up on 2008.
The £79 million trust is currently trading at a 13.4% discount from a recent low of 23%.
In a statement, Gartmore head of small cap investment Williams, and co-managers Andrew Russell and Harmesh Suniara, said: ‘Over the year to 30 June 2009, portfolio performance was in line with the Fledgling Index on a mid-to-mid NAV relative basis.
‘Given the extreme volatility of the Fledgling market and substantial rebalancing undertaken during the period, we believe this result is very satisfactory.’
Chairman Jimmy West added: ‘We believe that the Fledgling Index continues to have the potential to outperform the FTSE All-Share Index over the longer-term.
‘Even following the very strong rally of recent months Fledgling companies remain more attractive than their larger counterparts on the basis of both price-to-book and price-to-sales measures. Their significantly higher dividend yields and lower debt levels are also a key attraction.’