Unicorn Aim VCT posts difficult fourth quarter
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Unicorn Asset Management’s Aim venture capital trust (VCT) has reported a “difficult” final quarter during which the portfolio delivered a negative total return.
Today’s interim statement for the Unicorn Aim VCT reveals a negative return of 6.1% was achieved during the three months ending in December 2011. Comparatively, a total return of 3.1% was recorded for the last financial year.
The latest report notes that market volatility led investors to seek refuge in “larger quoted companies with highly liquid and tradable shares,” with negative consequences for the smaller, more vulnerable companies.
“This defensive approach saw the main market deliver a strong finish to the year, whilst the share prices of many smaller quoted companies continued to drift lower,” a market statement announced.
Over half of the negative return is attributed to profit warnings from just four companies: Green Compliance, Hasgrove, Mears Group and Mattioli Woods.
The value of the holding in Discover Leisure was completely wiped out after the company went into administration in October 2011. (article continues below)
The company generated £1.2m by selling out of the remaining non-qualifying holding in Unicorn’s Outstanding British Companies fund and “a large proportion” of the Unicorn UK Income fund.
A non-qualifying holding in Renold was added during the quarter, while the remaining non-qualifying holding in Parseq was sold at a 23.2% return on the original investment.
The announcement comes after the boards of the Axa Framlington AIM VCTs announced they would be moving away from investment in the Alternative Investment Market (Aim).
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