According to the interim results, the trust share price had fallen from 267p to 177p, although this has since fallen further still. As of 28 June 2022, according to data from the Association of Investment Companies, the share price sat at 122.8p, a 54% tumble from its 30 September 2021 level.
The net asset value per share had also fallen sharply at the Jupiter-managed trust, down 16% on its September valuation to 211.76p, leaving the fund currently trading on a 42% discount.
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In his statement, chair Andrew Haining revealed the board has provided Jupiter with a new performance fee framework, after it was revealed the managers took home £60m last year, with Jupiter taking a further £50m.
According to the AIC, the ongoing charge is set at 0.77% but the current ongoing charge plus performance fee is an eyewatering 10.7%.
A new structure should be finalised over the coming quarter, according to Haining. However, shareholders will have to fork out once more as it is not due to come into effect until the next financial year.
11 of the 17 investee companies had taken a hit in valuation over the six month period, with THG down sharpest, losing 76% of its opening value. Klarna also suffered a big hit, down 38%, while Wise had tumbled 68%.
Co-portfolio managers Nick Williamson and Richard Watts acknowledged the tough period, but insisted that for profitable companies, the “difficult funding market is of less or no concern”.
They added: “In spite of the difficult backdrop, the portfolio continues to demonstrate its ability to deliver robust growth and operationally is performing well in aggregate. With approximately 40% of the portfolio already profitable, our focus has been working with the 60% that has yet to break even, where we have supported a number of companies to balance opex budgets with growth aspirations.”
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Haining said: “The investment landscape has changed materially over the last six months with central banks responding to elevated levels of inflation by tightening monetary policy. Rising yields have impacted the valuations of long duration assets, with the derating of growth stocks being particularly marked.
“The appetite or ability to provide capital has reduced and, consequently, those investors who are providers of capital are demanding very attractive terms. Therefore, Chrysalis has positioned itself with enough capital to ensure it can support its portfolio appropriately.”