HgCapital Trust shares rose 4% to 383.5p in late morning trading on Monday, after the firm announced a total return NAV climb of 1.8% to a NAV per share of £4.43 and net assets of over £2 billion.
The Trust linked its results to strong portfolio trading and value creation, which reportedly offset a decline in valuation multiples of listed comparable companies.
HgCapital Trust invested £71 million alongside its other institutional clients, with an estimated additional £355 million invested post-period.
Meanwhile, HgCapital noted £29 million of returns realised on behalf of the Trust, with an anticipated additional £465 million returned post-period at an uplift of 29% to December book value.
The Trust highlighted an investment of £1,000 made 20 years prior in HgCapital would currently be worth £18,370 at a total return of 1,737%, with an equivalent investment in the FTSE All-Share Index worth £3,521.
“Despite the obvious challenges and uncertainty presented by the current macro-economic and geo-political environment, the Board remains optimistic about the future prospects for HGT,” said HgCapital Trust chairman Jim Strang.
“The businesses within the portfolio are resilient, and in such an environment as today’s continue to provide critical solutions to their clients and reduce the costs and complexity of doing business.”
“The long-term value creation prospects from owning such a portfolio remains attractive.”
HgCapital Trust declared a HY1 dividend of 2.5p per share against 2p the last year, which is scheduled for October 2022 payment.