On 4 January 2018, Global Value Fund Limited (ASX: GVF) announced that it has estimated that the investment return for the Global Value Fund was -1.6 percent during December 2018. Following this news, the share price of the company decreased by 0.966 percent as on 4 January 2019.
Including tax payments made during December, the manager has estimated that the pre-tax Net Tangible Asset per share at the end of December 2018 was $1.0357. Each month the Company’s manager produces an interim estimate for release to the market ahead of the detailed monthly investment update and Net Tangible Asset report.
On 24 December 2018, the company announced that the manager has estimated that from the end of November through to 20 December 2018, the Global Value Fund investment portfolio has decreased in value by 1.3 percent. Over the same period, global share markets have dropped by 5.7 percent in Australian dollar terms.
The manager of the company has also noted that for the current financial year, global share markets have decreased by 6.5% in Australian dollar terms through to the close of trading on the 20th of December. Over the same period, the Global Value Fund investment portfolio has declined by 2.0 percent.
During November 2018, the investment portfolio of the company decreased in value by 2.1%. During November 2018, the fund’s discount capture strategy added 0.4% to returns while adverse currency movements detracted 2.3% from the performance.
Despite a more volatile backdrop, the Company’s investment portfolio delivered significant positive returns in FY 2018, with adjusted pre-tax NTA increasing by 9.0 percent. During FY 2018, the Company declared a final dividend for FY2018 of 3.15 cents per share, 70% franked which was paid on 9 November 2018. In FY 2018, the shareholder total returns were -1.9%, with shareholder total, returns impacted by the fact that the Company’s shares began FY 2018 at a 5.4 percent premium to NTA and finished FY 2018 at a 3.3% discount.
GVF has reported a net profit after tax of $8.9M in FY 2018. At the end of FY 2018, the pre-tax Net Tangible Asset backing of GVF was $1.1012 per share, and the post-tax Net Tangible Asset backing was $1.0957 per share. Currently, the Company’s Board is anticipating that both the interim and final dividend for FY 2019 will be 3.15 cents per share, which will be 70 percent franked.
In the last six months, the share price of the company decreased by 2.36 percent as on 3 January 2019. GVF’s shares traded at $1.025 with a market capitalization of circa $152.87 million as on 4 January 2019.