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.
Abby Glennie is Deputy Head of Smaller Companies. She is responsible for UK Opportunities, Smaller Companies Pension Fund, and Bothwell Smaller Companies fund. Abby joined the company 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 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.
Deputy Head
Abby Glennie is Deputy Head of Smaller Companies. She is responsible for UK Opportunities, Smaller Companies Pension Fund, and Bothwell Smaller Companies fund. Abby joined the company 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.
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.
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 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, 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, 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.
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.
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.
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.
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.
| Year End | 31 December |
| Accounts Published | May |
| Annual General Meeting | April |
| Dividend Paid | January, April, July, October |
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