Aberdeen UK Tracker Trust

Low-cost exposure to the UK market

31 July 2015

Aberdeen UK Tracker Trust (AUKT) is unique among investment trusts in tracking the FTSE All-Share index. It seeks to match index performance closely in both capital and income terms, through maintaining low costs and efficient trading. It provides more efficient exposure to the UK market than a FTSE 100 or FTSE 250 tracker as it is not required to buy and sell entire holdings as stocks move between indices, and also does not have to manage fund inflows and outflows that can affect the performance of open-ended funds. Gearing is not employed and the manager aims to maintain tracking error at around 3bps. AUKT’s ongoing charge of 0.3% is competitive and the 6% discount to NAV provides a slight yield uplift. MORE »

Low-cost UK exposure with a slight discount

12 September 2014

Aberdeen UK Tracker Trust (AUKT) is the only UK investment trust that tracks the FTSE All-Share Index. It seeks to match the index performance closely in both capital and income terms, by investing in all the largest 350 stocks and a majority of those in the FTSE Small Cap Index. The manager points out that more efficient exposure to the broad UK market can be achieved with an All-Share tracker than a FTSE 100 or FTSE 250 tracker, as it does not incur trading costs when stocks move between the large and mid-cap indices. Total expenses of 0.3% are competitive with many open-ended peers, and the discount to NAV, which has been stable in the 4-6% range, offers a slight yield uplift. The trust does not use gearing. MORE »