Crystal Amber’s net asset value fell by 5% over the second half of 2014 to 152.7p – the total return was -4.7%. The NAV move lags the return on comparable indices – a total return of -0.5% for the FTSE Small Cap Index, 3.8% for the FTSE 250 and -4.1% for the Numis Smaller Companies Index. In December they announced plans to pay a 5p annual dividend, mainly from capital.
The manager’s report has a useful table showing the contribution of the largest holdings towards the performance of the fund. The main positive contribution to performance came from the fund’s holding in Aer Lingus. This added 8.1% to the fund’s net asset value after it received a bid from IAG (the owner of British Airways and Iberia). By contrast, the largest negative contribution (-3.3%) came from Hurricane Energy – which fell by 65%, hurt by the falling oil price. However we struggle to reconcile this table with the actual change in the NAV. The top ten holdings generated a net positive uplift in the net asset value of 3.3%. The capital increase achieved during the period is described as not affecting the net asset value. Somehow expenses, fees and the change in the value of the remaining 27% of the portfolio outside the top ten accounted for over an 8% fall in the NAV. API Group did fall in value by about 35% over the period (but got a bid at 60p after the year end) and they sold the investment in TT Electronics at a loss but this doesn’t account for all of this move.
CRS : Aer Lingus gains fail to redeem poor H2 2014 for Crystal Amber