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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 21-May-2013Ord
|Net Dividend Yield||3.10%|
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, the twenty largest equity investments, equity portfolio activity and the fixed income portfolio.
March again prove to be a positive month for smaller companies with the Index (FTSE Small Cap ex Investment Companies) returning 2.1% on a total return basis. Appetite for risk has remained heightened but as a whole the 11% return in the first quarter is a strong start to the year for smaller companies especially in the context of 2012.
The quarter wasn’t without talking points including the Italian elections, Cypriot bailout, and the downgrading of the UK’s AAA credit rating. Whilst these all grabbed headlines by far the most significant was the closing of Cypriot banks and the state of flux over who was liable to pay for bank failures. In the UK the budget threw up very little on the state of the UK’s finances that we didn’t already know. What is apparent is that the stagnant growth of the last few years is here to stay for now as the Government stick with their austerity agenda
During March following a Board meeting we have made a number of changes to improve the revenue account of the Trust. The first of these was to exit Weir. We have been reducing our position into strength but we felt with a strong bounce and the yield below 2% we could redeploy the capital in more attractive opportunities. We used the proceeds from the sale to introduce a new position in the insurer Hiscox. The company provides a balance between timely business written on internationally traded lines to generate profit, and the longer term growth and value potential from more niche areas with higher barriers to entry. We also reduced a number of the strongest performers including Oxford Instruments, Victrex, and Savills on valuation grounds.
We have been cautious on the outlook for some time now but there is no doubt that we are seeing more positive signs globally. Companies are in decent shape and despite the outlook being uncertain trading in the early part of 2013 has been broadly positive.