(Alliance News) - Aberdeen Smaller Companies Income Trust PLC on Friday said it outperformed strongly against its benchmark for 2019, on strong stock selection and reasonably buoyant market conditions.
The small cap investor reported a net asset value total return of 34% for the year, compared to the FTSE Small Cap excluding Investment Trusts Index - which posted a total return of 18%.
Aberdeen Smaller's net asset value per share as at December 31 was 373.86 pence, up 31% from 285.18p the same date the year before.
The trust's share price at the end of 2019 was 343.00p, reflecting an 8.3% discount to net asset value.
Shares in Aberdeen Smaller Companies were down 1.9% at 266.00 pence on the day Friday.
The trust said that market conditions in 2019 were resilient, despite several uncertainties including Brexit and trade tensions between the US and China. By the end of the year, conditions largely improved following a Conservative majority at the UK general election in December.
Portfolio wise, the strongest contributors to performance was engineering and industrial software company Aveva PLC, asset manager Intermediate Capital Group PLC and wargaming miniatures company Games Workshop Group PLC, as shares rose on strong earnings and dividend payouts.
Aberdeen Smaller declared a total dividend of 8.25 pence per share, up 12% from 7.35p the year before.
"Markets were resilient during 2019, despite many uncertainties, few of which have yet resolved themselves. We remain positive that the Manager's investment process is robust and capable of producing sustained dividend growth through the investment cycle," said Chair Robert Lister.
"The outbreak of the recent global Covid-19 virus has resulted in business disruption and stockmarket volatility. The extent of the effect of the virus, including its long term impact, remains uncertain. The manager has implemented extensive business continuity procedures and contingency arrangements to ensure that they are able to continue to service their clients, including investment trusts," Lister added.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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