abrdn Smaller Companies Income Trust plc

Hunting smaller companies for a stronger income


Morningstar rating:
5 out of 5

Daily prices as of 17 May 2022

Share Price 279.00p

Estimated NAV cum income 330.98p

Estimated NAV ex income 329.52p

Dividend Yield 3.4%

Premium / (Discount) to NAV cum income -15.7%

Premium / (Discount) to NAV ex income -15.3%

Source: Morningstar

Latest news

An update from our co-managers, Abby Glennie and Amanda Yeaman - 29 April 2022

Top-down, macroeconomic effects rather than stock-specific issues have driven the rotation away from quality-growth stocks. Higher inflation, interest -rate rises, political tensions and supply-chain challenges have heightened investor uncertainty. Notwithstanding this, we have been encouraged by the strong earnings reported by holdings in the Trust, confirming that the sell-off in our quality-growth companies is inconsistent with the underlying trading and fundamentals of these businesses. It is encouraging that the Matrix scores (our proprietary screening tool) across the Trust have remained strong, supported by the underlying earnings strength and continued quality characteristics. The market rotation has driven the valuation differential between value and quality-growth companies to compress. Many cyclical-value stocks will also face stiff headwinds, including the possibility of further pandemic restrictions, inflationary pressures, rising interest rates, falling consumer disposable incomes and continued supply-chain disruptions. In such a challenging environment, we believe quality-growth businesses should prove more robust, resilient and reliable. We hold companies with strong market positions and pricing power, with a better ability to pass on higher costs and protect margins. Such companies will have opportunities to gain market share, in our view. It is difficult to predict when this macro-driven value rally will end, but in March, the UK market has been less driven by the macro and less against our style as we have begun to hear from companies as they report. So, while there are signs that the impact of January/February is easing, there are still a number of uncertainties ahead. While companies are still passing on price inflation, with many businesses having had a few price rises now, it remains to be seen for how long this can continue without affecting demand. We continue to look through the top-down macroeconomic ‘noise’ by remaining focused on company reporting and fundamentals.

 
 

Key people

Abby Glenie

Abby Glennie

Deputy Head

Abby Glennie is Deputy Head of Smaller Companies at abrdn. She is lead manager on our UK Mid-Cap strategies and co-manager on our UK Smaller Companies strategies.

Abby joined the Company in February 2013 as a member of the UK Equity Team, initially working on the UK Large Cap desk, before moving to Smaller Companies in Jan 2016. She was appointed Deputy Head of the team in early 2020, and as part of her role on the EMG she helps lead the Equities Charity Group. Prior to this she worked at Kames Capital (previously Aegon Asset Management) as a Graduate Trainee Investment Manager.

Abby has a joint First-Class Honours degree in Economics and Finance and is a CFA charterholder.

Amanda Yeaman

Amanda Yeaman

Investment Manager

Amanda is an Investment Manager at abrdn. 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.

  • Abby Glenie

    Abby Glennie

    Deputy Head

    Abby Glennie is Deputy Head of Smaller Companies at abrdn. She is lead manager on our UK Mid-Cap strategies and co-manager on our UK Smaller Companies strategies.

    Abby joined the Company in February 2013 as a member of the UK Equity Team, initially working on the UK Large Cap desk, before moving to Smaller Companies in Jan 2016. She was appointed Deputy Head of the team in early 2020, and as part of her role on the EMG she helps lead the Equities Charity Group. Prior to this she worked at Kames Capital (previously Aegon Asset Management) as a Graduate Trainee Investment Manager.

    Abby has a joint First-Class Honours degree in Economics and Finance and is a CFA charterholder.

  • Amanda Yeaman

    Amanda Yeaman

    Investment Manager

    Amanda is an Investment Manager at abrdn. 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.

Degmar K Kershaw

Dagmar Kent Kershaw

Chairman

Dagmar Kent Kershaw was appointed to the board on 2 May 2017 and as Chairman on 5 May 2022. She has over 25 years’ investment experience specialising in fixed income, debt and alternative assets. Dagmar was head of Intermediate Capital Group's debt business in Europe and Australia from 2008 until 2016, and prior to that the head of Structured Credit Products at Prudential M&G. She began her career in credit markets with Scotiabank and NatWest. Dagmar is a non-executive director of Brooks Macdonald Group plc, a non-executive director and Risk Chair at Volta Finance Limited, and a senior advisor at Strategic Value Partners.

Rosalyn Breedy

Rosalyn Breedy

Independent Non-Executive Director

Rosalyn is a Corporate, Funds and Financial Services Lawyer. She is a Partner at Simons Muirhead Burton and is Head of Funds and Private Wealth, with 30 years' experience working in private practice investment banking and at a multi-family office. Rosalyn has a particular interest in how financial regulation and financial policy work alongside ESG, diversity and inclusion and she regularly writes and speaks on these matters. She is a Non-Executive Director of Lanware Limited and Global Fund Media Limited.

David Fletcher

David Fletcher

Independent Non-Executive Director

David Fletcher, appointed on 1 August 2016, is Group Finance Director of Stonehage Fleming Family & Partners, a leading independently owned family office, having joined in 2002. Prior to that, he spent 20 years in investment banking with JPMorgan Chase, Robert Fleming & Co. and Baring Brothers & Co Limited, latterly focused on financial services in the UK (asset management and life insurance). He started his career with PricewaterhouseCoopers and is a chartered accountant. He is also an independent non-executive director of JP Morgan Claverhouse Investment Trust plc.

Christopher Metcalfe

Christopher Metcalfe

Independent Non-Executive Director

Christopher, has over 30 years’ experience in investment management, having been an investment manager at Newton Investment Management from 2006-2017, and prior to that at Schroder Investment Management and Henderson Administration Group.

He is currently a non-executive director of Martin Currie Global Portfolio Trust plc and JP Morgan US Smaller Companies Investment Trust plc.

  • Degmar K Kershaw

    Dagmar Kent Kershaw

    Chairman

    Dagmar Kent Kershaw was appointed to the board on 2 May 2017 and as Chairman on 5 May 2022. She has over 25 years’ investment experience specialising in fixed income, debt and alternative assets. Dagmar was head of Intermediate Capital Group's debt business in Europe and Australia from 2008 until 2016, and prior to that the head of Structured Credit Products at Prudential M&G. She began her career in credit markets with Scotiabank and NatWest. Dagmar is a non-executive director of Brooks Macdonald Group plc, a non-executive director and Risk Chair at Volta Finance Limited, and a senior advisor at Strategic Value Partners.

  • Rosalyn Breedy

    Rosalyn Breedy

    Independent Non-Executive Director

    Rosalyn is a Corporate, Funds and Financial Services Lawyer. She is a Partner at Simons Muirhead Burton and is Head of Funds and Private Wealth, with 30 years' experience working in private practice investment banking and at a multi-family office. Rosalyn has a particular interest in how financial regulation and financial policy work alongside ESG, diversity and inclusion and she regularly writes and speaks on these matters. She is a Non-Executive Director of Lanware Limited and Global Fund Media Limited.

  • David Fletcher

    David Fletcher

    Independent Non-Executive Director

    David Fletcher, appointed on 1 August 2016, is Group Finance Director of Stonehage Fleming Family & Partners, a leading independently owned family office, having joined in 2002. Prior to that, he spent 20 years in investment banking with JPMorgan Chase, Robert Fleming & Co. and Baring Brothers & Co Limited, latterly focused on financial services in the UK (asset management and life insurance). He started his career with PricewaterhouseCoopers and is a chartered accountant. He is also an independent non-executive director of JP Morgan Claverhouse Investment Trust plc.

  • Christopher Metcalfe

    Christopher Metcalfe

    Independent Non-Executive Director

    Christopher, has over 30 years’ experience in investment management, having been an investment manager at Newton Investment Management from 2006-2017, and prior to that at Schroder Investment Management and Henderson Administration Group.

    He is currently a non-executive director of Martin Currie Global Portfolio Trust plc and JP Morgan US Smaller Companies Investment Trust plc.

 

Financial calendar

Year End 31 December
Accounts Published May
Annual General Meeting April
Dividend Paid January, April, July, October

Trust details

abrdn Smaller Companies Income Trust plc

Registered Office:
1 George Street,
Edinburgh
EH2 2LL

Registered in Scotland as an Investment Company Number SC137448

Launch Date: August 1992

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. Please refer to the relevant Key Information Document (KID) prior to making an investment decision. Please be aware of scams that can affect investors.