Please be aware of scams that can affect investors.
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 25-Jul-2014Ord
|Net Dividend Yield||3.26%|
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 continued to weaken through June although volatility has been more muted over the month. The FTSE Small Cap (ex Investment Companies Index) fell 1.3% on a total return basis after a 0.7% fall in the previous month. Despite weakness in the last two months over the first half of the year smaller companies as a whole are up 0.4% on a total return basis. Overall despite stock specific volatility that we have seen in the Trust the market as a whole hasn’t performed badly especially when you put it in the context of the last couple of years where shareholders have seen exceptionally strong returns.
In trading we introduced a new position in Abcam. Abcam is a global market leader in the sale of research grade antibodies to universities and biotechnology companies. We have met with management and followed the company for years but given the quality and earnings growth the valuation has been higher than we could justify. Following a period of slower growth on the back of a slowdown in US healthcare and research spending coupled with share price weakness we took the opportunity to initiate a holding. Following a good meeting with management we also topped up our position in Oxford Instruments. To fund these acquisitions we utilised some cash and also reduced our position in The Restaurant Group where we felt the valuation was looking expensive. As per the previous month there has been no activity in the bond or preference share portfolio. That said the Aviva and General Accident preference shares have been very strong and with yields contracting there isn’t a huge gap between them and some of the higher yielding equity names. It has always been our goal to reduce our exposure to the preference shares, without impacting the revenue account, and replace this with more traditional corporate bonds. Current yields on corporate bonds just aren’t at these sorts of levels yet so we will remain patient in seeking out the best mix of stability and yield that we want the fixed income portfolio to deliver.
In terms of some of the stock specific weakness that we have seen there are clearly some challenges out there in the market whether that be increased competition, currency headwinds or weak end markets. We have conducted meetings with a number of our weaker holdings of late feel that these challenges are mostly cyclical in nature and with that in mind we have been adding to positions on weakness. We feel we add value with our focus on the medium term which is core to the investment process.
.Whilst smaller companies have seen more volatility we still feel the portfolio is well placed at the value end of the spectrum and coupled with attractive medium term opportunities we feel well positioned to add value over the medium term.