Listed BMO Private Equity Trust today released its half year results for the six months ending 30 June. The company has recorded a total share price return of 13.7 percent, while its quarterly dividend declaration of 3.81p per share represents a dividend yield of 4.3 percent based on the share price at 30 June (roughly the same at today’s share price).
The firm also drastically reduced its discount to NAV which at the end of last year stood at 17.9 percent. This has been narrowed to 9 percent at 30 June. Private equity trusts tend to trade on quite steep discounts, with Pantheon International Plc reporting yesterday that it had reduced its discount to NAV by three percentage points but this still stood at 19 percent.
During the first half, the company’s total realisations and income amounted to £24.5 million with £28 million of new investments being made.
The trust also confirmed a new credit facility allowing it maintain its ‘flexibly geared structure’ a quirk of investment trusts allowing them to supercharge returns when market conditions are right.
During the reporting season, the company marked its 20th anniversary on the LSE. According to the company, during this time it has more than doubled in size with net assets of £106.4 million in March 1999 and £286.9 million at June this year.
The total payouts to shareholders made during its time on the markets comes in at £70.8 million.
Hamish Mair, fund manager, said: “The economic and political background has deteriorated over the last few months with a resolution to the Brexit impasse appearing no nearer and the threat of ‘no deal’, or something close to it, rising in probability.
“Both the UK and German economies appear to be at real risk of dipping into recession and similar trends are seen elsewhere in Europe. Notwithstanding these challenges, there is a very healthy amount of activity within the private equity market internationally.”
