New space investment trust returns 25% over first quarter

Shareholders have done well out of this novel space assets investor with plenty of cash still to spend.

Seraphim Space Investment Trust (LSE:SSIT) provided investors with a three-month share price return of 25%, according to its inaugural quarterly results.

The trust was launched in July this year, and aims to invest predominantly in early and growth-stage unquoted space technology companies.

It defines such businesses as those which “rely on space-based connectivity or precision, navigation and timing signals, or whose technology or services are already addressing, originally derived from, or of potential benefit to the space sector”.

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In its first quarterly results, covering the three months to 30 September 2021, SSIT saw a share price gain of 25%. Its net asset value per share increased by 6%.

At launch, the trust initially acquired shares in 15 companies from one of Seraphim’s other funds. It has since acquired holdings in two other companies, Spire Global (NYSE:SPIR) and Arqit Quantum (NASDAQ:ARQQ), also from the fund.

The net assets of the trust now stand at £221 million. However, just £99 million of that is invested in shares. The remaining 56% is still in cash, presumably waiting to be deployed when opportunities arise.

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Mark Boggett, fund manager and chief executive officer at Seraphim Space, commented: “We are encouraged by the performance of the portfolio in the short period since the company’s IPO. The SpaceTech investment market remains buoyant, with record levels of private investment. The investment community and wider world is now increasingly recognising both the attraction of SpaceTech’s long-term growth potential and the unique role it can play in helping to address some of our most pressing challenges. As the world’s first listed SpaceTech-focused fund, the company is well positioned to capitalise on these trends and further expand its portfolio of fast-growing businesses with transformative potential.”

The trust is part of a growing interest in investing in the so-called space economy. Shortly after it launched, the Procure Space ETF USD (LSE:YODA)was listed on the London Stock Exchange. Since its launch in July, the ETF has returned just below 2%.

Seraphim Space Investment trust currently trades on a premium to NAV of 25%.