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(Sharecast News) - Onward Opportunities reported a record year of net asset value growth in the 12 months ended 31 December on Monday, delivering top-quartile performance within the UK Smaller Companies sector and extending its track record of outperformance since launch.
The AIM-traded investment company said NAV reached an all-time high of 143.7p per share at year end, representing an NAV total return of 11.1% over the 2025 financial year.
Since inception in March 2023, NAV performance reached 50.2%, placing the company in the top quartile of its sector and ranking third among peers in the AIC UK Smaller Companies sector.
Over the same period, the portfolio outperformed the FTSE AIM All-Share Total Return index by 48.8% and the FTSE Small Cap Total Return index by 11.2%, while meeting its stated objective of delivering absolute returns of 15% per annum despite challenging conditions for UK smaller companies.
Total shareholder return for the 12 months ended 31 December was 7.6%, contributing to a cumulative return of 48% since inception.
The firm also completed four capital raises during 2025, all at a premium to prevailing NAV, raising 7.5m and placing it among the 10 most successful London-listed investment companies for capital raising during the year.
Portfolio performance in the year was driven by strong gains from a small number of holdings, which more than offset losses elsewhere in the concentrated portfolio.
The company said several weaker performers experienced operationally difficult years, which management believes has the potential to create future upside opportunities.
"To have delivered a NAV return of 11.1% for 2025 which contributes to a 50.2% return since inception in 2023 has been the best possible way by which to thank our supportive and expanding shareholder base," said Laurence Hulse, founder and lead fund manager of Onward Opportunities.
He added that the company ended the year with record highs in both NAV per share and share price for the second year running, and said that idiosyncratic catalysts and mispriced valuations across the portfolio underpinned performance.
Hulse also noted that faster-than-expected interest rate cuts could provide an additional tailwind in 2026.
At 1009 GMT, shares in Onward Opportunities were down 0.48% at 151.27p.
Reporting by Josh White for Sharecast.com.