Over the year the company’s net asset value total return was -7.6%, compared to the Numis Smaller Companies Index which returned -4.1%. During the same period the FTSE 100 Index returned -2.7%.
In addition the company’s share price at 30 June was 203p, down 16.7% from its high of 243.75p in 7 May 2011.
But Nimmo has managed the closed-end fund since 2003, in which time the share price has risen 325% compared to an 84.2% rise from the benchmark.
Nimmo said the first three quarters of the year to the end of June were difficult for two key reasons: “The sharp sell-off in August caused investors to sell stocks where they could book a profit. This caused some of our more highly rated stocks, such as Asos that had done very well, to trade off sharply.
“Following the European Central Bank support for the European banking system in November, markets responded strongly into 2012 with a sharp return to risky recovery shares. The company tends to de-emphasise that type of risky investment and as a result the net asset value was left behind as markets rallied strongly.”
The long term record of the trust is still intact, however, with it ranked first of fifteen over five years and sixth of 16 over three years.
Performance fee scrapped
The board has also announced removed the performance fee aspect of the trust and has reverted back to a basic management fee arrangement.
Previously, Standard Life could earn up to 1.25% of total assets less current liabilities in any one year – made up of a basic management fee of 0.65% and a performance fee of up to 0.6%.
From 1 July, the basic management fee was increased to 0.85% and the performance fee removed.
The board said it “recognised the importance of the company having a clear and easily understood fee basis to ensure it remains competitive and fair to shareholders in the post-RDR environment”.