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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 03-Mar-2015Ord
|Net Dividend Yield||3.20%|
Source: Morningstar, NAV = Net Asset Value, excluding income.
Holdings are subject to change at any time. Holdings should not be relied upon in making investment decisions and should not be construed as research or investment advice regarding specific securities. By accessing the portfolio holdings, you agree not to reproduce, distribute or disseminate the portfolio holdings, in whole or in part.
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 covering the half yearly report to 30 June 2014. The update will cover a wide range of subjects including performance, a sector breakdown, twenty largest investments and an outlook.
The Trust had a very good start to the year with the Index up a more moderate 0.7% on a total return basis. The outperformance was driven by a combination of strong equity performance and continued tightening of yields across the bond portfolio. In particular we saw a number of the Trust’s larger equities perform well and where we have seen weakness we mitigated the downside through managing the weights. From a sector perspective we also benefited from our limited exposure to oil & gas and mining which collapsed with the underlying commodity prices. From a quality perspective we have always felt these sectors tough to own given the volatility, low informational advantage on commodity prices and lack of diversification. Our preferred route to play the sector has been through the service providers which have weakened but not to the same extent.
Turning to trading we have had a more active month given the polarised performance across a number of holdings. For example, we trimmed RPC following our support of the rights issue to acquire Promens Group AS which was well received by investors. We used the proceeds to add to our position in Aveva which has exposure to a weakening oil & gas market. With a net cash balance sheet and a high level of recurring revenue we felt the valuation provided us with downside protection. That said the outlook could remain tough for some time to come. We also exited two of the smallest positions in the Trust, McBride and Majestic Wine. Both have seen deterioration in trading but also, over time, a shift in the competitive dynamics and business model which we left both exposed to a weaker market position. In the bond portfolio the NatWest 5.9779% was called at par having been one of the Trust’s best performers over the last few years. Given our strategy to keep the portfolio short duration replacing the yield isn’t possible in the current environment. Whilst this will drag on the dividend growth in the short-term we are focusing on preservation of your capital therefore added a new holding in HFC (HSBC) Bank 7% October 2015.
I have struck a cautious tone in our recent updates to shareholders given the tough backdrop. That said the Trust had a strong second half of 2014 and has continued to outperform in January. We still feel, as we did last year, that the portfolio could deliver mid to high single digit earnings growth which doesn’t feel excessive. Share price performance is, however, out of our control although I would add that valuations are looking more attractive in pockets of the market.