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The Company currently conducts its affairs so that securities issued by Aberdeen Smaller Companies High Income Trust PLC can be recommended by financial advisers to ordinary retail investors in accordance with the FCA’s rules in relation to non-mainstream pooled investment products (NMPIs) and intends to continue to do so for the foreseeable future.
The Company’s securities are excluded from the FCA’s restrictions which apply to non-mainstream investment products because they are securities in an investment trust.
The Alternative Investment Fund Manager Directive (“AIFMD”) requires Aberdeen Fund Managers Limited, as the alternative investment fund manager of Aberdeen Smaller Companies High Income Trust PLC, to make available to investors certain information prior to such investors’ investment in the Company.
The AIFMD is intended to offer increased protection to investors in investment products that do not fall under the existing European Union regime for regulation of investment products known as “UCITS”.
The value of investments and the income from them may go down as well as up and investors may get back less than the amount invested. The tax benefits relating to ISA investments may not be maintained. Please refer to the Key Facts documents contained in the ISA/Share Plan Brochure & Application form for general and specific investment risks attaching to the individual trusts.Read the detailed Risk Warning
Past performance is not a guide to future results.
See latest monthly factsheet below for performance history.
At close 01-Sep-2014Ord
|Net Dividend Yield||3.17%|
Source: Morningstar, NAV = Net Asset Value, excluding income.
40 Princes Street,
Registered in Scotland as an Investment Company Number 137448
The objective of the Company is to provide a high and growing dividend and capital growth from an investment in a portfolio invested principally in the ordinary shares of smaller UK companies and UK fixed income securities.
In this webcast Phil Webster gives an update on a wide range of subjects including performance, a sector breakdown, the twenty largest investments and an outlook for the Trust.
Smaller companies slid for the third consecutive month falling 0.8% in July and down 2.7% over the last three months. As noted previously this needs to be seen in perspective of the stellar returns over the last few years so this retreat wasn’t unexpected. In isolation this fall isn’t hugely significant but it’s noteworthy that credit markets rallied and sovereign bond yields are back to near historic lows. This is reflective of the abating risk appetite with rising geo-political tensions between Russia and the West compounded by pockets of economic weakness in emerging markets.
At a company level the earnings season for the Trust’s holdings has seen companies in the main reiterate full-year guidance. I would caveat this with low visibility and in a number of cases there is a lot of work to do in the second half. With this in mind we have seen valuations derate which has left companies trading at levels which better reflect the growth outlook.
We have been more active than usual during this period with valuations looking more attractive. We have added to a number of holdings on weakness including Domino Printing, Oxford Instruments, Huntsworth and Manx Telecom. To fund these we reduced a number of names on relative strength: Bloomsbury Publishing, Berendsen, Rathbone Brothers and Hiscox. When making these changes company fundamentals are always at the forefront of the decision making process but we also overlay this with dividend yields to maximise return for the revenue account.
Whilst there may an underlying negative tone we still feel smaller companies are attractive over the medium term. In the short term there is no doubt smaller companies face headwinds but they will benefit from an improving domestic economic backdrop and confidence returning to investment markets. We therefore feel well positioned and will take advantage of near term volatility in quality companies we feel have been oversold.