Amati outperforms net asset value benchmark despite widening discount

London-based venture capital trust Amati's net asset value (NAV) rose significantly through its first half of trading despite its NAV discount widening.

Amati's NAV jumped from 69.6p on 31 August 2016 to 94.6p a year later as the NAV itself increased to £57.3m from £39.9m.

NAV total return was 29.3% against the same time twelve months earlier, a stronger result than the Numis Alternative Markets Total Return Index benchmark which rose 13.2% over the same time frame.

Amati said the performance was the "strongest in the history" of the venture capital fund, except for the first half of 2009 "when the market was bouncing very strongly off its post-crisis lows."

However, the results posted in its half-yearly report on Friday showed that "good results" from its largest holdings, rather than Amati's portfolio as whole, was the main cause of the higher share price, as its share price discount to NAV widened to 8.8% from 4.7% at the same time a year before.

"It is always important to remain realistic about expectations following periods of very strong performance", chairman Peter Lawrence said.

"Markets have a tendency to retrace after periods of above-average returns. However, the tangible progress being made by many of our portfolio companies has been impressive and creates a strong platform for continued growth, even in tougher times," he added.

As of 1535 BST, shares had lost 0.26% to 88.02p