Chrysalis NAV grows for second consecutive quarter

investmentweek.co.uk:

(L-R) Co-managers Richard Watts and Nick Williamson

The investment trust's NAV grew 5.3% between in the four months to 30 June, settling at 6.84p per share, it said in a stock exchange notice today (31 July).

Co-managers Richard Watts and Nick Williamson called this a «pleasing» result, and attributed the NAV surge to several of its listed assets rerating during the first half of the year, which had a positive knock-on effect on the trust's valuations.

They also said the company's independent valuation committee, which was appointed this time last year, was «gradually moving away from price of recent investment in some instances», while they remained focused on «maximising shareholder value».

The results come a year out from the continuation vote Chrysalis' shareholders will be able to take part in to decide the future of the trust, with options on the table including a potential managed exit.

Shareholders to decide Chrysalis' future in continuation vote

A key takeaway for the managers from the reporting period was the better-than-expected equity market providing a more supportive backdrop for IPOs, which they said had been a «slight tick-up» of during the quarter.

«We are encouraged by the slightly more active IPO market over the last quarter, particularly as we have several later stage assets that are either profitable or funded to anticipated profitability and should make excellent IPO candidates in due course,» they said. 

Watts and Williamson added the investment adviser continues to assess «the most appropriate exit strategy for these assets to optimise investor returns over the medium term».

They said the adviser has worked «closely» with the companies in the trust and supporting them to get to a position to