LONDON (Alliance News) - Aberdeen Smaller Companies Income Trust PLC on Friday said it underperformed slightly against its benchmark in 2018, with its holdings in Victoria PLC and Cairn Homes PLC proving the main detractors.
The small cap investor posted a net asset value total return of minus 14.6% for 2018, lagging just behind its benchmark - the FTSE Small Cap excluding investment trusts - which posted a total return of minus 13.8%.
The valuation of its holding in flooring and carpet retailer Victoria fell to GBP509,000 on December 31 from GBP1.4 million the year before. Moreover, the valuation of its holding in Irish homebuilder Cairn Homes fell to GBP443,000 from GBP1.6 million.
The two companies constitute 0.8% and 0.7% respectively of Aberdeen Smaller Companies' total equity investments.
The net asset value per share on December 31 stood at 285.18 pence compared to 341.12p the year before.
The company raised its annual dividend 4.3% to 7.35p per share from 7.05p per share.
Chair Robert Lister said: "The economic picture globally and in the UK also looks more challenged. Economic growth is under pressure, industrial production and manufacturing numbers are abating, there is a prospect of further interest rate rises, commodity prices have fallen sharply, and political interference is at heightened levels particularly in the UK and US.
"As a board, however, we believe the company is well placed to benefit from finding stock specific growth opportunities in what is a very wide and diverse investable universe. The focus on quality companies by our manager should help provide some protection in tougher environments, and access to management teams remains extremely accommodative which gives excellent investment insights."
Shares in Aberdeen Smaller Companies were down 0.4% at 262.50p on Friday.