Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Gartmore Fledgling flying

Gervais Williams' Gartmore Fledgling investment trust has reported a strong set of results, although shareholders have not felt all the benefit.

Over the year to June the trust's net asset value rose 13.2%, ahead of the FTSE Fledgling (Excluding Investment Companies) index by 0.4%.

However, the trust's discount widened substantially over the year, from 13.1% to 20.4%, and as a result the share price, the measure most relevant to private investors, rose just 3.6%.

The trust's chairman Jimmy West cited the high level of director share purchases and an increased number of takeovers as signs fledgling companies are relatively attractive.

The £70 million investment trust faces a continuation vote on 7 October. Trustbuster Laxey Partners, which failed to make the trust repurchase shares or liquidate at the start of 2001, controls over 7% of the trust. This is an ominous presence, but otherwise there are few other potentially hostile shareholders.

A final dividend of 1.75p will be paid to the trust's shareholders, which represents an 8.3% increase in the total payout. Subject to unforeseen circumstances, the board expects to increase the dividend this year as well.

The Gartmore Fledgling investment trust stands on a 17% discount to NAV, compared with its average 16% discount over the past 12 months and an average 16% discount among trusts in the UK Smaller Companies sector.

The trust's shares closed unchanged at 229p.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Your Business: Cover Star Club

Profile: a Williams de Broe vet on striking out from Investec

Profile: a Williams de Broe vet on striking out from Investec

Laurence Boyle and his team became ‘somewhat of an oddity’ within Investec after joining via its acquisition of Williams de Broë

Wealth Manager on Twitter