Herald Investment Trust Reports 12.1% NAV Growth in 2024 Annual Results
Why we think this is good
The trust's performance in 2024 was notably strong, with a 12.1% increase in NAV per share and an impressive 26.4% share price appreciation. The North American portfolio delivered an exceptional 36.3% return, outperforming its benchmark. However, the UK portfolio underperformed slightly, and no dividend was recommended due to a revenue reserve deficit. The continued share buyback program and strategic positioning in AI-related investments demonstrate prudent management and future growth potential. While challenges remain in the AIM market and geopolitical landscape, the overall financial health and performance of the trust justify a positive outlook.
Key Points
- NAV per share increased by 12.1% to 2,488.2p
- Share price appreciated by 26.4% to 2,430.0p
- North American portfolio returned 36.3%, outperforming its benchmark
- UK portfolio returned 3.3%, slightly underperforming its benchmark
- 10.3% of opening share capital bought back during the year
- No dividend recommended due to revenue reserve deficit
- Total net assets increased to £1,252.6m from £1,245.8m
- Ongoing charges slightly increased from 1.07% to 1.08%
- Strong position maintained in AI-related investments
- Challenges noted in AIM market due to potential Inheritance Tax relief changes
Summary
Herald Investment Trust's 2024 annual results reveal a 12.1% increase in NAV to 2,488.2p per share and a 26.4% share price appreciation. The trust's North American portfolio was the standout performer with a 36.3% return, significantly outperforming the Russell 2000® Technology Index. However, the UK portfolio slightly underperformed its benchmark. The trust continued its share buyback program, repurchasing 10.3% of opening share capital. Despite strong overall performance, no dividend was recommended due to a revenue reserve deficit. The trust maintains a strong position in AI-related investments and sees potential for continued growth in the technology sector, albeit with awareness of geopolitical uncertainties and challenges in the AIM market.