Standard Life UK Smaller Companies
Managers bullish on the outlook for the trust
26 April 2021
Standard Life UK Smaller Companies (SLS) is managed by Harry Nimmo and Abby Glennie at Aberdeen Standard Investments (ASI). They are positive on the outlook for UK small-cap stocks given the start of a new economic cycle. The managers are encouraged that several investee companies are issuing positive trading statements and reinstating their dividends, and while valuation is a secondary consideration they note that several of the trust’s holdings are currently trading on inexpensive valuation multiples. The managers explain that while SLS historically underperforms during periods of what they describe as ‘dash for trash’ when its quality, growth and momentum-focused stocks are less favoured by investors, these periods tend not to last long, and they are confident in the investment process’s ability to deliver above-average returns over the long term. MORE »
Matrix driving continued outperformance
23 November 2020
Standard Life UK Smaller Companies (SLS) manager Harry Nimmo is very bullish on the outlook for UK small-cap stocks, with the proviso that Brexit presents a near-term risk. He notes that despite current challenges due to the coronavirus, many companies are trading above expectations and there are now only a handful of SLS’s portfolio companies that are not paying dividends. The manager is comfortable with the trust’s ability to maintain its own dividend payments and is hopeful its valuation will improve given its very strong performance record. SLS’s NAV has outperformed its benchmark over the last one, three, five and 10 years; however, Nimmo cautions that given the trust’s focus on quality businesses, if there is a cyclical recovery in the UK market with a ‘dash for trash’, SLS is likely to underperform during this period. MORE »
Long-term record of outperformance
1 May 2020
Standard Life UK Smaller Companies (SLS) is managed by Harry Nimmo at Aberdeen Standard Investments (ASI). He has a long-term record of meaningful outperformance versus the trust’s benchmark. The manager has a clearly defined investment process, focusing on quality, growth and momentum, and uses a proprietary screening tool known as the Matrix to sift the investible universe of c 500 companies. Nimmo retains his disciplined approach regardless of the macro background; he says this has served him well across several market cycles. SLS’s board has a progressive dividend policy and aims for a maximum 8% discount in normal market conditions. MORE »
Focus on quality, growth and momentum
25 October 2019
Standard Life UK Smaller Companies (SLS) has a long-term record of significant outperformance versus its benchmark. Manager Harry Nimmo says that his disciplined investment process, which focuses on quality, growth and momentum, also provides an element of resilience in periods of market weakness. He is encouraged by the trust’s growing level of income, which is allowing SLS to employ a progressive dividend policy, and argues that over the long term, investors have been well served by an allocation to smaller UK companies as they have outperformed the broader UK market. The trust’s board actively employs a discount control mechanism, and has recently been repurchasing shares as SLS’s discount has bumped up against its 8% target maximum. MORE »
Following a well-established investment process
26 March 2019
Standard Life UK Smaller Companies (SLS) is managed by experienced UK smaller-cap specialist Harry Nimmo. He is somewhat cautious on the near-term outlook for UK equities, citing ongoing Brexit uncertainty, lower US earnings growth and the US/China trade dispute. The manager continues to follow his tried-and-tested investment process, seeking high-quality firms that can grow their businesses regardless of the stage of the economic cycle. He notes that SLS’s portfolio companies are generally trading well, showing good earnings momentum and beating expectations, which he expects will lead to higher dividend payments. The trust currently offers a yield of 1.6%. MORE »
Disciplined approach driving outperformance
11 December 2018
Standard Life UK Smaller Companies (SLS) is managed by Harry Nimmo at Aberdeen Standard Investments. He has followed the same investment process since he took over management of the trust in 2003, through a number of economic cycles, and considers it to be stable, predictable and well defined, while providing an element of resilience during periods of stock market weakness. He also believes that the investment process is optimal for running large amounts of UK small-cap money. Nimmo has a long-term record of outperformance – SLS’s NAV total return is ahead of its blended benchmark over the last one, three, five and 10 years, and above the averages of its larger peers in the AIC UK Smaller Companies sector over one and five years, and broadly in line over three years. MORE »
Strong track record of outperformance
28 March 2018
Standard Life UK Smaller Companies Trust (SLS) is managed by Harry Nimmo, who aims to generate long-term capital growth from a portfolio of smaller-cap UK equities. The trust has a strong performance track record; it has meaningfully outpaced its benchmark over one, three, five and 10 years. SLS has also outperformed the majority of its peers over these periods, ranking second out of 10 funds over one and three years, fifth over five years and first over 10 years. The trust has recently changed its benchmark to include AIM stocks, reflecting SLS’s increasing exposure to this area of the UK stock market, as the board and manager consider the quality of these companies has improved in recent years. MORE »
Strong track record of outperformance
28 March 2018
Standard Life UK Smaller Companies Trust (SLS) is managed by Harry Nimmo, who aims to generate long-term capital growth from a portfolio of smaller-cap UK equities. The trust has a strong performance track record; it has meaningfully outpaced its benchmark over one, three, five and 10 years. SLS has also outperformed the majority of its peers over these periods, ranking second out of 10 funds over one and three years, fifth over five years and first over 10 years. The trust has recently changed its benchmark to include AIM stocks, reflecting SLS’s increasing exposure to this area of the UK stock market, as the board and manager consider the quality of these companies has improved in recent years. MORE »
Outperforming in a weak market
14 July 2016
Standard Life UK Smaller Companies (SLS) is an actively managed UK small- and mid-cap focused trust with a quality-biased portfolio. Manager Harry Nimmo has followed a consistent approach to stock selection since taking responsibility for the portfolio in 2003, seeking companies with resilient business models and the potential to deliver sustainable growth. SLS’s NAV total return has been ahead of its benchmark over one, three and 10 years, with notably strong outperformance over the last 12 months against the background of a decline in the broader UK market. Recent market volatility has pushed the discount towards the recently introduced 8% target level for the share buyback policy. MORE »
