Following a period of poor performance (NAV down 45.1% over the last 18 months versus the index’s 22%), we are constructive on the outlook. Over the last seven years the fund has outperformed (6.2%pa versus 4.6%pa) the UK small cap companies index. The NAV performance, driven by a de-rating of quality-growth stocks, has been compounded (for shareholders) by the de-rating of the fund to a 17% discount. Our constructive outlook reflects a combination of the severity of the market’s de-rating (from ....
