Standard Life Investments

Standard Life UK Smaller Companies Trust PLC

Mex ID: ITSLS SEDOL: 0295958 Reuters: SLS.L

Price
488.00
NAV
493.80
Premium/(Discount)
-1.17%
Daily Price Change
2.00p (0.41%)
Change date
12/12/2017

Figures above are updated every business day after the close of trading and those displayed are to the close of the previous business day. Figures are shown in pence (GBP) and the data is provided by, and copyright ©2016, FE.

General Trust Information

Objective

To achieve long-term capital growth by investment in UK quoted smaller companies.

Profile

The Company intends to achieve its investment objective by investing in a diversified portfolio consisting mainly of UK quoted smaller companies. The portfolio will normally comprise around 50 individual holdings representing the Investment Manager’s highest conviction investment ideas. In order to reduce risk in the Company without compromising flexibility, no holding within the portfolio should exceed 5 per cent. of total assets at the time of acquisition.The Company may use derivatives for portfolio hedging purposes (i.e. only for the purpose of reducing, transferring or eliminating the investment risks in its investments in order to protect the Company’s portfolio). Within the Company’s Articles of Association, the maximum level of gearing is 100 per cent of net assets. The Directors’ policy is that gearing will be between -5 per cent. and 25 per cent. of net assets (at the time of drawdown) in normal market conditions. The Directors have delegated responsibility to the Investment Manager for the operation of the gearing level within the above parameters.The Investment Manager’s investment process combines asset allocation, stock selection, portfolio construction, risk management, and dealing. The investment process is research intensive and is driven by the Investment Manager’s distinctive “focus on change” which recognises that different factors drive individual stocks and markets at different times in the cycle. This flexible, but disciplined, process ensures that the Investment Manager has the opportunity to perform in different market conditions.

Fund Manager

Harry Nimmo

Harry Nimmo

Harry graduated with an MBA from the University of Edinburgh in 1984 and joined Standard Life as an Investment Analyst with responsibility for UK equity funds in 1985. He became Senior Investment Analyst with sector responsibility for larger UK-quoted companies funds in 1990 and Investment Manager responsible for the UK equity smaller (quoted) company funds in 1993. Harry has managed our UK Smaller Companies Fund since its launch in January 1997.

NMPI Status

Standard Life UK Smaller Companies Trust plc (‘the Company’) currently conducts its affairs so that securities issued by it can be recommended by financial advisers to ordinary retail investors in accordance with the FCA’s rules in relation to non-mainstream investment products 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 a UK listed investment trust.

Performance

Trust Performance (on a bid to bid basis)

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Past performance is not a guarantee of future returns. The value of investments may go down as well as up and you may receive back less than you invested. Your capital and income is not guaranteed.

Trust Performance & Returns

(on a bid to bid basis)
Fund performance
Sector performance
 Last 1 month*Last 6 months*Last 1 year*Last 3 years*Last 5 years*
Fund performance
Sector performance

Past performance is not a guarantee of future returns. The value of investments may go down as well as up and you may receive back less than you invested. Your capital and income is not guaranteed.

* Values to-

Performance (on a bid to bid basis)

Powered by data from FE

Trust Performance(on a bid to bid basis)

(on a bid to bid basis)
Fund performance
Sector performance
 Last 1 month*Last 6 months*Last 1 year*Last 3 years*Last 5 years*
Fund performance
Sector performance

Past performance is not a guarantee of future returns. The value of investments may go down as well as up and you may receive back less than you invested. Your capital and income is not guaranteed.

* Values to -

** n/a indicates that fund performance information is not available for this period due to the date the fund was launched.

Current details

All prices displayed in p (GBP). Figures below updated at 02:30 pm. Figures are provided by, and copyright @2016, FE on a delayed basis.
EPIC code:SLS
Market sector:
Mid price:483.6250
Bid price:480.2500
Offer:487.0000
Opening price:484.0000
Daily high:484.1250
Daily low:483.5000
Previous day's close:488.0000
Daily change:-4.3750 (-0.90%)

LSE Announcements

Video

Small caps offer a wealth of opportunities for investors seeking growth. Harry Nimmo, Investment Director and Head of Smaller Companies at Standard Life UK Smaller Companies Trust examines this exciting market and how his fund is positioned to benefit.

Video duration: 00:04:26

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How to Invest

Shares in Standard Life Investments' range of investment trusts are listed on the London Stock Exchange. As with any public quoted company, investment trust shares can be bought and sold on the stock market. This can be done through directly through a platform provider such as Standard Life or via a stockbroker, financial adviser or wealth manager.

We recognise professional financial advice is important before taking any investment decision. We recommend investors seek financial advice before taking any decisions. If you'd like to find an adviser in your area, take a look at www.unbiased.co.uk.

Alternatively, there are a number of platform providers who offer an online ‘execution only’ service, some of these are listed below.

You should note that by clicking any of the above links, you will leave Standard Life Investments' website and go to another website. We are not responsible for the content or accuracy of external websites.

The value of investments and the income from them can go down as well as up and is not guaranteed; an investor may get back less than their original investment.

Insight

Low risk, high returns: how Nimmo overcomes small cap liquidity issue

November 2017

SLI's Harry Nimmo assesses the latest academic findings to reveal why it's possible to have the best of both worlds.

Buy lower risk companies and trade less often, that's the message from Standard Life Investment's small cap veteran Harry Nimmo. He taps into the findings of Elroy Dimson and Paul Marsh, both former professors of finance at the London Business School, to explain why patience is so powerful when investing in smaller companies.

Dimson and Marsh's book ‘Triumph of the Optimists: 101 Years of Global Investment Returns' stands out in stark contrast to the fast-paced computer-driven trading we see in financial markets today. The co-authors study of investment performance across asset classes delivered comprehensive evidence of the long-term equity risk premium which is now widely accepted across the investment community.

And it's a mantra which Standard Life Smaller Companies Trust manager Harry Nimmo believes in. “Dimson and Marsh provided evidence that smaller companies exhibiting lower risk could produce higher returns. This flies in the face of most historic academic research that suggests that higher risk equals higher returns.” He argues that, increasingly, other academics are following this school of thought.

It's for this reason that Nimmo focuses on hunting out lower risk companies for his portfolio.

This does not mean avoiding some volatility, as this is an inherent characteristic of equity investing. For those for investors with sufficient appetite for risk, holding on for longer has offered rewards. While the Trust has no macro overlay, Nimmo has factored the Brexit effect into his stock selection by altering his weightings in UK-orientated businesses and putting more emphasis on companies generating a larger part of their revenues abroad. “Companies with high levels of exports, or companies with higher levels of business overseas are getting higher scores in our internal screening process, this is feeding through from a weaker sterling after Brexit. I would say about now about 50 – 55% of the revenues of our businesses are from outside the UK which is quite high for the Trust.”

Identifying two key advantages of his low turnover strategy, he explains:

“Our performance is not dependent on massive trading volumes - that's very im

portant to us. To overcome the liquidity issues in smaller companies we do two things; we invest in lower risk companies and we trade less often, holding stocks for five years on average.”

Smaller companies tend to deliver higher growth and it is within this sector that Nimmo believes they should sit within an overall asset allocation framework.

“I believe if investors have a long-term time horizon, five years or more, and are interested in capital growth, they should look at smaller companies as part of their capital allocation. They need to be able to cope with equity risk but, notwithstanding that, if history is our judge, while being no predictor of the future, smaller companies' returns have exceeded those of larger companies.”