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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 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 Dunedin Smaller Companies Investment 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”.
At close 26-Feb-2015Ord
|Net Dividend Yield||2.69%|
* Debt at market value
** 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.
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 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 largest investments and an outlook for the Trust.
Equity markets started the year strongly, with the FTSE-All Share Index posting a gain of 2.6% in total return terms. Small companies were less strong, registering a gain of 0.7%. The recoveries continued in the US and UK. Indeed in the domestic economy we saw falling unemployment combine with rising real wages indicating that the painful squeeze that has been endured by the consumer is now beginning to ease. There were three particularly significant macroeconomic events that occurred during the month. Firstly the ECB announced that a package of Quantitative Easing would commence in March. It will amount to €60bn per month and will run for at least 18 months. The scale and uncapped nature of the commitment boosted markets. The Swiss National Bank removed their Peg with the euro, presumably in anticipation of the ECB’s announcement. The immediate strengthening of the Swiss franc was remarkable in terms of its scale and said much about investors’ desire for a safe haven for their capital.
Meanwhile in Greece the election was won by the anti-austerity party Syriza. Their desire to renegotiate the bail-out programme in an effort to reduce the country’s debt burden, served to re-ignite worries about sovereign indebtedness and the possibility of a Greek exit from the euro.
In the portfolio we topped up the holding in Fenner. The company has exposure to the coal mining market through its conveyor belting business and the oil and gas markets in parts of its AEP division. Whilst both parts of the business are finding life difficult currently we continue to believe that there will be long term demand for the businesses' market leading products. We top-sliced the holding in RPC which has continued to perform well. The oil price has continued to decline as have the prices of many other commodities as Chinese growth has continued to slow. With the eurozone already experiencing deflation there are increasing concerns that the decline in the oil price may not be accompanied by an increase in demand. In such a scenario the benefit of cheaper energy may be outweighed by the impact of deflation. Falling commodity prices and currencies have prompted interest rate cuts in a range of countries from Australia and Canada to Denmark. Expectations for interest rate increases in the UK have been pushed out to 2016 and whilst the US is still likely to increase rates sometime this year it will be difficult for them to do so at a time when most other regions are reducing rates. This points to the second significant risk, namely that the benefits of European QE are diluted as countries around the World seek to counter the threat of deflation by devaluing their currencies.
Unsurprisingly equity markets appear good value when compared to fixed interest. However, investors should take care to look at individual company valuations rather than relying on aggregate valuations. There is a very broad spread of valuations across different market sectors accompanied by wide ranging variances in expectations for earnings growth, and in some cases contraction. Although we remain positive about the long term prospects for the businesses that we have invested in, we recognise that the valuations of many quality companies are full rather than cheap.
Source: Monthly Factsheet Aberdeen Asset Managers Limited