Standard Life UK Smaller Companies is a relatively concentrated portfolio of quality growth stocks held for the long run, with a long-term track record of outperformance.
The manager, Harry Nimmo, has run the strategy since 1997 for the trust's sister open-ended fund and since 2003 for the trust itself. Historically, much of his outperformance has come in falling or flat markets.
Stock selection leans heavily on quantitative screens, with Harry analysing the output of a proprietary scoring system, called the Matrix, which assesses numerous metrics, and then meeting company management and investigating the strength of the company’s business model.
The last 12 months have seen the trust outperform in NAV total return terms, despite the sell-off in the autumn hurting some of the trust’s largest positions disproportionately.
At 8%, the discount is tighter than the sector average, as has been the norm, although it is wide compared to its own recent history. The board targets 8% as a lower limit and has been active with buybacks when it has gaped wider.
The yield is 1.7%, but dividend growth has been strong over ten years, and the manager aims to continue to grow it year on year.
Kepler Trust Intelligence provides research and information for professional and private investors. In order to ensure that we provide you with the right kind of content, and to ensure that the content we provide is compliant, you need to tell us what type of investor you are.Continue
Fund History: Standard Life UK Smaller Companies
Alex Illingworth talks to Martin Stott about the team’s thematic approach to growing assets.
Our research shows that reinvesting the income generated by alternative assets could add a significant boost to long-term portfolio performance…
The team behind Ediston Real Estate Investment Trust think property is well placed to continue producing a steady income...
Our research shows that investment trusts' structural advantages give them a significant edge for investors seeking long-term capital growth...