Chelverton Growth Trust has announced results for the year ended 31 August 2015. Unfortunately the fund underperformed its benchmark index – the net asset value rose by 6.95% while the MSCI UK Small cap Index rose by 9.77%. Since the year end though they have had some good news as their largest investment (37% of the portfolio), Parmenion, is to be acquired by Aberdeen Asset Management – the NAV rose by 6% from the year end to the end of October. they reckon they have made 16x their money on this investment over seven years.
The holding in Chelverton Asset Management Holdings Limited the company used to finance the MBO of Chelverton Asset Management, the Investment Manager of this fund, was revalued upwards reflecting the growth in funds under management. The investments in Transflex and Main Dental Partners were held at the same level as last year and the holdings in La Salle Education and Anaxsys were written down to reflect the disappointing take up of their product by the market place. Unfortunately the investment in Closed Loop Recycling has had to be written down to nil value, as the business was unable to survive the extraordinary reduction in the oil price and the consequent reduction in virgin PET and HDPE as compared to its recycled product. The company went into administration in April 2015 with no prospect of any recovery.
The Board has decided to review the level of the annual tender and have decided to increase it to 24.99% this year from 10% in previous years.
CGW : 25% tender planned for Chelverton as sells Parmenion