HgCapital Trust PLC Edison issues review on HgCapital Trust (HGT)

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HgCapital Trust PLC

22 December 2020

London, UK, 22 December 2020

Edison issues review on HgCapital Trust (HGT)

HgCapital Trust (HGT) continues to outperform its benchmark over the short and long term, with NAV total return strongly increasing c 20% in the nine months to end-September 2020 (vs a fall of c 20% for the FTSE All-Share Index in the period). Following a record amount of investments and realisations in FY20, we estimate HGT's commitment ratio stood at 60% in mid-December (vs 48% on average between 2015 and 2019), supported by a new GBP200m credit facility that it secured in early October 2020. The manager expects transaction activity to remain high and highlights his confidence in the value creation potential of HGT's software and technology portfolio, driven by the ongoing digitalisation of businesses, accelerated by COVID-19.

HGT's shares continue trading broadly in line with its NAV, which we believe is underpinned by its strong track record and the solid long-term fundamentals of its tech and software portfolio. The shares now offer an LTM dividend yield of 1.7%.

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December 22, 2020 07:43 ET (12:43 GMT)