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The Company currently conducts its affairs so that securities issued by Dunedin Smaller Companies Investment Trust PLC 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 an investment trust.
At close 06-Mar-2014Ord
|Net Dividend Yield||2.26%|
** Debt at par
Source: Morningstar, NAV = Net Asset Value, excluding income.
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.
40 Princes Street,
Registered in Scotland as an Investment Company Number 14692
The objective of Dunedin Smaller Companies Investment Trust PLC is to achieve long term growth from a portfolio of smaller companies in the United Kingdom.
In this webcast Ed Beal gives an update on a wide range of subjects including performance, a sector breakdown, the twenty largest investments and an outlook for the Trust.
Markets had a weak start to the year. The FTSE All-Share Index recorded a decline of 3.1% resulting in the worst January for three years. Small companies did rather better posting gains of 3.3%. Macroeconomic data was broadly positive, indeed the recovery in the US continued to strengthen resulting in the Federal Reserve announcing a further $10bn reduction to its monthly asset purchases. Companies with significant emerging market exposure discovered that investors no longer regarded this as an attractive feature. Businesses like British American Tobacco suffered as investors worried about currency weakness in emerging markets and the impact that would have on demand for their products. Although small companies have become increasingly internationalised over the last decade or so they still have proportionately less emerging market exposure than many of their larger counterparts. This explains much of their outperformance over the month.
In the portfolio we top-sliced some holdings that had done well. These included Wilmington, RPC, Oxford Instruments and Bellway. We topped up companies whose share prices had been weaker. Amongst which were BBA Aviation, Domino Printing and TT Electronics. We also continued to build our position in Victrex.
Investors have become increasingly concerned about the impact of tapering in the US and the knock on effect this is likely to have on some emerging markets. There is a widely held belief that this is causing currency weakness that will necessitate increases in interest rates which will serve to further dampen demand. Our view is that whilst there may be disruption over the short term, many emerging markets have positive long term prospects. We believe that our investments have strong long-term fundamentals. Importantly they typically have balance sheets that will allow them to weather difficulties and to capitalise on the opportunities that may arise.
However, we do note that in many instances valuations have moved ahead more strongly than earnings resulting in a general expansion of valuation multiples. This makes it more difficult for share prices to absorb disappointing news flow. We therefore believe that it will be as important as ever to be invested in good quality companies that have business models that can deliver growth over the long term. Without such growth we believe that valuations will eventually prove an impediment to further market progression.
Source: Monthly Factsheet Aberdeen Asset Managers Limited