Invesco Perpetual UK Smaller’s results for the year ended 31 January 2015 show the fund generating a net asset value return of 2.2%. The Numis Smaller Companies Index (excluding Investment Companies), fell by 2.6%. The share price rose from 316.8p to 328.3p per share, an increase of 3.6%, and the discount narrowed from 13.9% to 11.3%. as we have mentioned before, the company is shifting to pay much higher dividends, dipping into reserves to cover the payments.
The manager says, at the individual stock level, the stand-out performer was Synergy Health, up 68%, a world leading healthcare outsourcing business, which received a takeover bid from US rival Steris. other material contributions came from CVS Group, a veterinary services business, which rose by 72%, and Howden Joinery, a leading manufacturer of pre-fabricated kitchens, which was up 26%. Other strong performers in the portfolio included EMIS Group (+49%), a healthcare software business, which made a strategically important acquisition early in the period, and Microfocus (+45%), another software business which also benefited from a highly earnings-accretive deal.
There were some disappointments, particularly from companies exposed to the oil & gas sector. RPS fell 45% – it is an environmental consultancy which also provides services to the oil & gas industry. Aveva, a software business with some exposure to oil & gas, fell by 37% – both of these stocks have recovered a bit in 2015. They also mention oil production company, Amersiur Resources, which fell by 34%.
IPU : Invesco Perpetual UK Smaller outperforms in 2014