| Year End | 30 June |
| Accounts Published | August |
| Annual General Meeting | October |
| Dividend Paid | April, October |
Standard Life UK Smaller Companies Trust plc
Capturing the growth potential of UK smaller companies
Daily prices as of {{asOfDate}}
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Latest news
An update from our investment manager, Harry Nimmo - 24 July 2020
In our view, outcomes have become a bit clearer over recent weeks and in general the worst fears have not been realised. A number of our holdings are benefiting from the COVID-19 pandemic, lockdown and working from home. Some companies are starting to pay back furlough and reinstate the dividend and the Trust has seen a handful do this.
In the Leisure Goods Sector strong trading has been reported by Games Workshop (largest holding), Team17, Gear4music and Focusrite. Although these companies may see a reduction in business as things get back to normal, on the basis that “emergencies accelerate change”, we believe that trends that were already in place will continue apace. The same is true of home working where our holdings in Gamma Communications (second largest holding) have reported strong trading. Additionally, Cranswick and Hilton Food Group have been trading well as supermarket demand remains high as restaurants continue to struggle.
Some industries have adapted well to home working and are seeing good trading conditions. This has been notable in Asset Management (Liontrust, AJ Bell, Mattioli Woods) and also fund administrators like Sanne and JTC. In Software the position is mixed. Although you would think home working would not be an issue, companies are reporting lengthening sales cycles. A number of Industrials are seeing strong recovery such as is Diploma and Avon Rubber. Our Healthcare companies are in decent shape, Ergomed and Dechra particularly. Encouragingly our Real Estate holdings are mainly trading well including self-storage companies Safestore and Big Yellow as well as Sirius in industrial real estate. Some companies are seeing a release of pent-up demand like Motorpoint the used car retailer.
On the negative side, Transport, Leisure, Food to Go and Retail remain very difficult hampered by social distancing regulations. In the Trust, this includes Greggs, Dart Group (Jet2) and Trainline.
The next stage however is the question of how long business will take to get back to normal, how long will the recession last and if it will get worse and will the beneficiaries of lockdown see a decline in their business as we get back to normal. At the end of the day, our Matrix led by Quality, Growth & Momentum investment will not change. Whichever way it goes, the quality companies in growth industries with good business momentum will tend to come out the stronger in the next upcycle.
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% 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% of net assets. The Directors have set parameters of between 5% net cash and 25% net gearing (at the time of drawdown) for the level of gearing that can be employed 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 has evolved out of the Investment Manager’s “Focus on Change” philosophy and is led by Quality, Growth and Momentum. The Investment Manager’s stock selection led investment process involves compiling a shortlist of potential investments using a proprietary screening tool known as “The Matrix” which reflects Quality, Growth and Momentum based factor analysis. The final portfolio is research intensive and includes face to face meetings with senior management of these potential investments. This disciplined process has been embedded for many years and has delivered a consistency of performance through economic and market cycles.
Key people
Harry Nimmo
Investment Director
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.
Abby Glennie
Investment Director
Abby Glennie is an Investment Director at Aberdeen Standard Investments. She is responsible for UK Opportunities, Smaller Companies Pension Fund, and Bothwell Smaller Companies fund. Abby joined Standard Life in 2013 from Kames Capital where she was an Investment Analyst
Abby graduated with a joint 1st MA, in Economics and Finance from University of Aberdeen and is a CFA charterholder.
Amanda Yeaman
Investment Manager
Amanda is an Investment Manager at Aberdeen Standard Investments. Amanda is responsible for providing research support predominantly for our UK Smaller Companies strategy but also to the wider Smaller Companies team. Amanda Joined the company in June 2019 from Investec Securities where she was a small and mid-cap equity sales specialist.
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Harry Nimmo
Investment Director
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Abby Glennie
Investment Director
Abby Glennie is an Investment Director at Aberdeen Standard Investments. She is responsible for UK Opportunities, Smaller Companies Pension Fund, and Bothwell Smaller Companies fund. Abby joined Standard Life in 2013 from Kames Capital where she was an Investment Analyst
Abby graduated with a joint 1st MA, in Economics and Finance from University of Aberdeen and is a CFA charterholder.
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Amanda Yeaman
Investment Manager
Amanda is an Investment Manager at Aberdeen Standard Investments. Amanda is responsible for providing research support predominantly for our UK Smaller Companies strategy but also to the wider Smaller Companies team. Amanda Joined the company in June 2019 from Investec Securities where she was a small and mid-cap equity sales specialist.
Liz Airey
Chairman
Liz was appointed as a Director on 21 August 2019 and was appointed Chairman on 1 April 2020. She also chairs the Nomination Committee. She is currently a non-executive director of Kirk Lovegrove & Company Limited, a member of the Corporate Governance Committee and Investments Committee of the Institute of Chartered Accountants in England and Wales, and Chair of Trustees of the Rolls-Royce UK Pension Fund. She has previously been the non-executive Chairman of Jupiter Fund Management plc, a non-executive director of Tate & Lyle plc, Dunedin Enterprise Investment Trust plc, JP Morgan European Smaller Companies Trust plc, Zetex plc and AMEC plc. In her executive career, Liz was Finance Director of Monument Oil and Gas plc, a post she held from 1990 until the sale of the company to Lasmo plc in 1999.
Ashton Bradbury
Director
Ashton was appointed as a Director on 2 July 2018. He has previously held roles at Charterhouse Tilney, Hill Samuel Investment Management and HSBC Asset Management Europe and was, until 2014, a fund manager with Old Mutual Global Investors Limited, where he established its Small and Mid Cap equities team. Ashton is currently a non-executive Director of Hargreave Hale AIM VCT plc and is a director of Golf Union of Wales Limited. Ashton holds a BSc in Banking and Finance from Loughborough University of Technology.
Alexa Henderson
Director
Alexa was appointed as a Director on 8 October 2018. Alexa has over 30 years’ experience in finance, accounting and audit having worked with KPMG, Arthur Andersen and Deutsche Bank (WM Company). She is currently a non-executive Director of BMO Real Estate Investments Limited and Chairman of JP Morgan Japan Smaller Companies Trust PLC. In addition, Alexa sits on the board of James Walker(Leith) Limited and Bravura Solutions Ltd, incorporated in Australia. Previous directorships include Scottish Building Society (which she chaired for 4 years) and Adam & Company Group PLC (a private wealth subsidiary of RBS). Alexa Henderson holds a BSc in Economics and Accounting from Edinburgh University and is a Chartered Accountant .
Caroline Ramsay
Director
Caroline was appointed as a Director on 22 August 2016 and is Chair of the
Audit Committee . Caroline is currently a non-executive Director of Aegon UK
PLC where she also chairs the Audit Committee and non-executive director of
Scottish Equitable plc, Scottish Equitable Holdings Ltd and Cofunds Ltd. She is a
non-executive director of Tesco Underwriting Limited and Brit Syndicates Limited
and is a member of the Financial Conduct Authority’s Regulatory Decisions
Committee. Until June 2015, Caroline was the Group Chief Auditor for RSA plc
having held previous senior positions at RSA plc including UK Chief Financial
Officer. After qualifying and practising as a chartered accountant with KPMG, she
held various roles within Aviva Plc.
Tim Scholefield
Director
Tim was appointed as a Director on 20 February 2017 and is the Company’s Senior Independent Director. He also chairs the Management Engagement Committee. Tim is an Associate of the Society of Investment Professionals and previously held roles at Royal Sun Alliance Investments and Scottish Widows Investment Partnership. He was, until 2014, Head of Equities at Baring Asset Management. Tim is currently Chairman of City Merchants High Yield Trust Ltd, a non-executive Director of BMO Capital and Income Investment Trust Plc and Fidelity Asian Values Plc. In addition, he is a member of the Investment Committee of the General Medical Council, Chairman of the Investment Management Certificate Panel, a non-executive director of Jupiter Unit Trust Managers Ltd and a consultant to Gresham House Asset Management.
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Liz Airey
Chairman
Liz was appointed as a Director on 21 August 2019 and was appointed Chairman on 1 April 2020. She also chairs the Nomination Committee. She is currently a non-executive director of Kirk Lovegrove & Company Limited, a member of the Corporate Governance Committee and Investments Committee of the Institute of Chartered Accountants in England and Wales, and Chair of Trustees of the Rolls-Royce UK Pension Fund. She has previously been the non-executive Chairman of Jupiter Fund Management plc, a non-executive director of Tate & Lyle plc, Dunedin Enterprise Investment Trust plc, JP Morgan European Smaller Companies Trust plc, Zetex plc and AMEC plc. In her executive career, Liz was Finance Director of Monument Oil and Gas plc, a post she held from 1990 until the sale of the company to Lasmo plc in 1999.
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Ashton Bradbury
Director
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Alexa Henderson
Director
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Caroline Ramsay
Director
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Tim Scholefield
Director
Financial calendar
Risk Warning
Risk warning
The value of investments and the income from them can go down as well as up and you may get back less than the amount invested. The tax benefits relating to ISA investments may not be maintained. Investors should review the relevant Key Information Document (KID) brochure prior to making an investment decision. Read the detailed risk warning
Investor warning: Please be aware of scams that can affect investors. Read the full investor risk warning
The value of investments and the income from them can go down as well as up and you may get back less than the amount invested. The tax benefits relating to ISA investments may not be maintained. Investors should review the relevant Key Information Document (KID) brochure prior to making an investment decision. Read the detailed risk warning
Investor warning: Please be aware of scams that can affect investors. Read the full investor risk warning