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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 29-Jan-2015Ord
|Net Dividend Yield||3.45%|
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.
Smaller companies rallied in December despite there being very little positive news flow. The FTSE SmallCap (ex investment companies) Index rose 1.3% on a total return basis over the month although this late dip for the line wasn’t enough to drag smaller companies into positive territory for the full-year. We can best describe 2014 as a year of consolidation following two years of exceptional returns from the Trust. We have spoken consistently about protecting the downside which we feel the Trust has achieved falling 2.1% over the full-year.
Equity markets were tough to gauge over the year but perhaps even more surprising was the double digit returns from both Government and corporate bond markets. The Trust’s bond portfolio was positioned short duration for the interest rate rise which didn’t materialise. That said the bond portfolio did deliver another year of positive returns which is what we would have expected. In hindsight we did sell down a number of holdings too early but we were driven to do so by valuations which were up with events and yields which were significantly below that of the portfolio. Protection of capital across the bond portfolio remains at the forefront of our thinking in 2015. Yields are still too low and it is clear investors are taking more risk to get the desired return which only has one outcome. We will continue to remain vigilant for ideas but it’s going to take time for the quality companies to offer a more attractive medium term yield.
Equity market volatility, a slowdown in trading and commodity price weakness has brought a number of companies that we have been analysing down to more attractive valuations. Whilst we haven’t taken advantage of these to date we are conducting the diligence and may therefore see one or two new names added to the portfolio over the course of 2015.
Activity was light in December. We participated in a placing by Chesnara who were raising capital to acquire a closed life book of business from insolvent Dutch Bank DSB. They acquired the assets at a big discount to embedded value and also have protection of a strong solvency position which they could return to the Group over the medium term. We funded this by taking further profits from Victrex. This was purely a valuation decision after delivering another volume upgrade for the full-year.
I certainly won’t be giving any predications on the outlook for 2015 but as with last year our focus remains preservation of capital. If, however, I was to strike a more positive tone I would say that valuations in parts of the market are more interesting than they have been for a while. Valuation tends to be a decent barometer of the potential over the medium term so given that we still feel smaller companies, and the Trust, offer decent medium term upside.