ASCI.L Regulatory News (ASCI)

abrdn Smaller Companies Income Trust plc

Half Yearly Financial Report for the six months to 30 June 2022

OBJECTIVE

The objective of the Company is to provide a high and growing dividend and capital growth from a portfolio invested principally in the ordinary shares of smaller UK companies and UK fixed income securities.

BENCHMARK

Numis Smaller Companies ex Investment Trusts Index - effective from 1 January 2020; FTSE Small Cap ex Investment Trusts Index (total return) - up to 31 December 2019

MANAGEMENT

The Company's alternative investment fund manager is abrdn Fund Managers Limited ("aFML" or "the Manager"), previously named Aberdeen Standard Fund Managers Limited, authorised and regulated by the Financial Conduct Authority. The Company's portfolio is managed on a day-to-day basis by Aberdeen Asset Managers Limited ("AAML" or "the Investment Manager") by way of a delegation agreement in place between aFML and AAML.

Performance Highlights

Performance Highlights

Performance (total return)

Financial Calendar, Dividends and Highlights

Financial Highlights

Chair's Statement

Performance

In my first statement as Chair of your Company, I would have liked to convey a more positive message on the Company's performance over the six month period to the end of June 2022. However, in what has been a very difficult time for smaller companies, the Company's net asset value returned -30.0%, versus a benchmark return of -20.2%.

Looking over a five year period, however, the Company continues to outperform the index; with a total return of +16.1% versus the composite benchmark of +0.3% (the Company's benchmark prior to 1 January 2020 was the FTSE Smaller Companies ex Investment Trust Index).

The first half of 2022 was an unremittingly poor half for global equity markets driven by the conflict in Ukraine, ongoing fears over high inflation and the risk of a global recession. This has resulted in a severe rotation from "growth" stocks into "value" stocks; an environment in which your Managers Quality, Growth and Momentum ("QGM") process has been out of favour. Correspondingly, the Company's share price has underperformed over the first six months. However, the quality focus inherent in the Investment Manager's investment process means that the companies in which they invest are resilient and capable of withstanding the current environment. The Board challenges these views appropriately and maintains confidence in the current approach over the longer term; nonetheless, we do understand that the performance in this period has been disappointing.

Discount

Despite fluctuations over the period, the Company's discount to net asset value as at 30 June 2022 was 15.7%, compared with 15.3% at the end of December 2021. The discount is regularly monitored by the Manager and the Board.

Company Gearing and Debt

The Company renewed its £5million revolving credit facility with the Royal Bank of Scotland International Limited, London Branch for a two year period in April 2022, and this sits alongside the Company's existing five year £5million fixed rate loan which expires in April 2023.

Over both facilities combined a total of £7million is currently drawn down. This takes the Company's gearing level to 4.8% at the end of June 2022, compared with 4.5% at the end of December 2021. The slightly higher figure does not reflect an increase in the Company's borrowing, merely a difference in the asset values on which the gearing figures are calculated.

Dividend

For the first and second quarters of 2022, the Board announced dividends of 2.40p each per Ordinary share (2021 - 2.15p each), an increase on last year's equivalent figures of 11.6%.

Investors have been through a volatile first half of the year; however, UK dividends had a strong outturn. After a solid first quarter, the second quarter did not disappoint. The total dividend pay-out jumped 38% year-on-year reaching £37 billion, according to Link dividend monitor. The Mining, Banks and Oil sectors, all of which are large cap dominated, accounted for three quarters of the second quarter's year-on-year increase. Mining was the biggest contributor, on the back of favourable cyclical fluctuations and rising mining profits.

The Board has been pleased with the resilience of the dividends the Company has received from its portfolio of smaller companies over the period and special dividends have been paid out from six of its holdings. In spite of solid dividend progression to date the Investment Manager believes that headwinds will increase for 2023. A recession might curtail the ability and willingness of many companies to raise dividends, as earnings come under pressure and balance sheets under more scrutiny in that environment. However, your Manager's focus on quality and balance sheet strength should provide relative resilience, with the Company's holdings often better placed versus peers to remain resilient when it comes to making their dividend payments.

The Company's Name Change and Manager's Rebranding

You may recall that we announced a change of name for the Company in our last Annual Report to abrdn Smaller Companies Income Trust plc, which took effect on 7 January 2022. 

This followed a change of name by Standard Life Aberdeen plc to abrdn plc in July 2021 and an extensive rebranding and marketing campaign.

Since the period end the Manager's name has also been changed from Aberdeen Standard Fund Managers Limited to abrdn Fund Managers Limited ("aFML" or the "Manager"), with effect from 1 August 2022. We expect the Investment Manager and Company Secretary (Aberdeen Asset Managers Limited and Aberdeen Asset Management PLC respectively) to be renamed in the coming months.

Portfolio Manager

On 5 September 2022, the Company announced that Amanda Yeaman, who has been Co-Manager of the Company's portfolio alongside Abby Glennie since November 2020, will become Lead Manager, supported by Abby.

This change will take effect from 1 January 2023.

Board Changes & AGM

Rosalyn Breedy was appointed as an independent Non-Executive Director in January 2022 and elected to the Board by shareholders at the Company's Annual General Meeting ("AGM") on 5 May 2022. Robert Lister retired as an independent Non-Executive Director and Chairman of your Company at the conclusion of that meeting and the Board extends their thanks again to Robert for his stewardship during his tenure.

We were delighted to welcome shareholders to a physical AGM this year, following a two year hiatus due to government restrictions imposed as a result of the pandemic. For shareholders who were unable to attend or for those wishing to hear it again, your Manager's presentation, which was delivered at the meeting, has been uploaded to the Company's website, abrdnsmallercompaniesincome.co.uk.

Outlook

The economic and political backdrop is challenging. Central banks have reacted more forcefully than expected at the start of the year to stem rising inflation. At the time of writing, economic indicators are suggesting a recession although it remains to be seen how deep or prolonged that might be. There is political uncertainty in terms of any implications the new Prime Minister could have on fiscal policy and the UK's post-Brexit relationship with Europe. Furthermore, the war in Ukraine continues to undermine the mood of markets, with the threat of further interruptions to energy supplies and pricing uncertainty; a persistent concern. The combination of these factors is creating a persistently uncertain environment, which we anticipate will continue to weigh on markets. In a recessionary or continued low economic growth environment, your Board believes that the market will look more towards quality companies with resilience, reliability, visible revenue streams and strong balance sheets. In this case, on a relative basis, your Manager's quality focus should become increasingly attractive.

In an economic environment where growth becomes scarcer, it becomes more valuable, and your Manager's exposure to companies with QGM characteristics enables them to identify companies that can deliver sustained earnings growth in difficult macro-environments.

Dagmar Kent KershawChair12 September 2022

Other Matters

Principal Risks and Uncertainties

There are a number of risks which, if realised, could have a material adverse effect on the Company and its financial condition, performance and prospects. The Board has identified the principal risks and uncertainties facing the Company together with a description of the mitigating actions it has taken. These can be summarised under the following headings:

- Investment and Market

- Investment Portfolio Management

- Gearing

- Income and Dividend

- Operational

- Major Market Event or Geopolitical Development

Details of these risks are provided in detail on pages 19 to 21 of the 2021 Annual Report.

The Board monitors these principal risks closely and has a process to identify and assess emerging risks, such as climate change and geopolitical developments.

The increasing political and economic uncertainty which could affect markets, particularly in reaction to higher interest rates and the volatility associated with the conflict in Ukraine, received particular focus in the reporting period.

The Board is also aware of the elevated threat posed by climate change and continues to monitor, through the Investment Manager, the potential risk that the companies in the portfolio may fail to adapt to the requirements imposed by climate change.

In all other respects, the Company's principal risks and uncertainties have not changed materially since the year end, nor are they expected to change in the second half of the financial year ended 31 December 2022.

Going Concern

In accordance with the Financial Reporting Council's Guidance on Risk Management, Internal Control and Related Financial and Business Reporting issued in September 2014, the Directors have undertaken a rigorous review and consider both that there are no material uncertainties and that the adoption of the going concern basis of accounting is appropriate. The Company's assets consist principally of equity shares in companies listed on the London Stock Exchange and in most circumstances are realisable within a short timescale.

The Directors have a reasonable expectation that the Company has adequate financial resources to continue in operational existence for the foreseeable future and at least twelve months from the date of approval of this Half Yearly Report. Given that the Company's portfolio comprises primarily "Level One" assets (listed on a recognisable exchange and realisable within a short timescale), and the Company's relatively low level of gearing, the Directors believe that adopting a going concern basis of accounting remains appropriate.

Directors' Responsibility Statement

The Directors are responsible for preparing the Half Yearly Financial Report in accordance with applicable law and regulations. The Directors confirm that to the best oftheir knowledge:

- the condensed set of Financial Statements has been prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting'

- the Interim Board Report includes a fair review of the information required by rule 4.2.7R of the Disclosure Guidance and Transparency Rules (being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of Financial Statements and a description of the principal risks and uncertainties for the remaining six months of the financial year)

- the Interim Board Report includes a fair review of the information required by 4.2.8R (being related party transactions that have taken place during the first six months of the financial year and that have materially affected the financial position of the Company during that period; and any changes in the related party transactions described in the last Annual Report that could do so).

The Half Yearly Financial Report for the six months to 30 June 2022 comprises the Interim Board Report and a condensed set of financial statements.

For and on behalf of the BoardDagmar Kent Kershaw,Chair12 September 2022

Investment Manager's Review

The Company delivered a NAV total return of -30.0%, underperforming the Numis Smaller Companies (ex- Investment Trusts) return of -20.2% for the six month period to 30 June 2022.

Equity markets

The UK stock market, as represented by the FTSE All-Share Index, fell by -4.6% over the first half of 2022, although the UK market remains one of the best-performing developed markets in 2022. The picture was more mixed beneath the negative headline figure, with shares of large FTSE 100 Index companies only falling by -1.0% but shares in the mid-sized companies of the FTSE 250 Index, which are typically more focused on the domestic UK economy, falling heavily, by -19.4%. Smaller companies were also particularly weak, with the Numis Smaller Companies (ex Investment Trusts) Index (total return) returning -20.39%.

The FTSE 100 Index is home to many energy and mining companies, whose shares have benefited from high commodity prices, particularly after Russia's invasion of Ukraine. However, the small cap market in the UK has sold off sharply, driven by the risk of trade where investors typically make a flight towards the perceived safety of larger cap areas. Smaller companies also do not benefit from the support of the large weightings in areas such as resources, banks and energy that are prevalent within the FTSE 100 Index.

Growth stocks in particular have underperformed in the rising rate environment, with information technology being one of the worst-performing sectors over the six month period. Consumer discretionary stocks also led the market weakness as this cyclical sector was affected by rising consumer prices. Utilities and energy were the only sectors to generate positive returns: investors were attracted by the defensive attributes of utilities, in view of fears that the weakening economic outlook could lead to a recession; and the energy sector was boosted by surging oil and gas prices, particularly after the outbreak of war in Eastern Europe.

Inflation continued to rise in the UK over the period, with annual consumer price inflation ("CPI") climbing steadily to hit a 40-year high of 9.4% in June 2022, from 5.5% in January 2022. The Bank of England reacted to rising inflation with five consecutive interest-rate rises, with the Base Rate reaching 1.25% in June 2022.

We expected the UK consumer to see disposable income squeezed; however, that squeeze has tightened even more with the rise in the energy cap in April 2022, food prices now rising by some 7-8% year-on-year and petrol/diesel approaching 200p per litre and with tax rises and the tax take at the highest level since the 1950's. It appears that consumers are continuing to spend their pandemic 'enforced savings' and consumer credit is growing again. Looking forward, the energy cap is likely to rise considerably if the Russia/Ukraine conflict continues to constrain gas supplies to Europe. Markets also remain concerned over a wage-price spiral.

One thing that the market weakness has helped to drive is continued buoyant Mergers and Acquisitions ("M&A"), with UK companies looking even cheaper to overseas buyers. However, there is uncertainty over new policies now that the new Prime Minister has taken office.

Performance

The period was a challenging one for performance for the Company with our style being out of favour in the market as "top down" global macro factors have taken the lead over "bottom up" stock picking. Smaller companies markets have been difficult, seeing dramatic falls during 2022 in contrast with the last half of 2021, which was a strong period for the Company, with quality growth names proving resilient to the stop/start nature of the pandemic recovery. However, there has been a strong value tilt to the market since the turn of the year, with investors favouring cheaper, value companies. Profit taking has occurred extensively in our typical quality growth businesses despite their earnings resilience and continuing growth.

Telecom Plus, the UK's only fully integrated multiservice provider to households has been the top contributor to performance over the period, as its business model and offering is ideally placed against the current market backdrop. Trading under the brand name 'Utility Warehouse' the business derives significant operating efficiencies by spreading a single set of overheads across multiple revenue streams they receive from their customers. Telecom Plus provides savings (c. £300 pa) for multi-service customers, which is significant given the scale of the increase in the cost of living. Furthermore, the energy supply market has recently gone through fundamental change, with half of the suppliers ceasing to trade last year, giving market share gain opportunities. We are increasingly confident that the marketplace for energy supply has permanently changed and that the Telecom Plus model is well positioned for the new market conditions. The business has seen a significant improvement in new customer growth as the energy and cost of living crisis has unfolded, supported by a more engaged salesforce post-pandemic, driving upgrades to earnings.

Assura owns primary healthcare properties in the UK, comprising local GP surgeries and larger primary care centres. Assura has been a positive contributor driven by the defensive nature of the business, namely their assets, lease structures, balance sheet strength and demographic trends during a period of heightened uncertainty for wider equity markets. As an owner of primary healthcare facilities across the UK, Assura benefits from long-dated leases (twelve year average) of which 82% are underpinned by the NHS. A significant proportion of the NHS estate and primary healthcare facilities across the UK are deemed unfit for purpose; and, as a developer, Assura remains well placed to develop, finance and operate new, modern, energy efficient (often net zero) buildings at a time when the government's focus is on both the resilience of the healthcare system (and its cost) in the wake of the pandemic. Primary healthcare, where the cost of patient treatment is significantly lower than other settings, remains well placed to benefit from any investment. Lease structures also lend themselves to resilience in periods of heightened inflation. One third of income across the portfolio benefits from fixed, retail prices index ("RPI"), CPI or other uplifts, while two-thirds is subject to open market review. Open market reviews are assessed versus a building replacement cost index, with significant construction cost inflation rental growth only now beginning to accelerate from a low base, adding to the attraction of the income (c.4% dividend yield). Assura was assigned an A- (stable outlook) rating from Fitch in the period (January 2022) highlighting its resilience, despite market uncertainty.

Chesnara outperformed its peers and the broader market in the first half of the year, following an increase in the pace of bolt-on acquisitions (two deals closed in the first half and another was announced in July 2022). Importantly, it has funded this out of cash resources and £200m sub debt issue in January 2022, which has effectively 'pre-funded' future M&A. This inorganic expansion has built book value through purchase at a discount to book values, and improved visibility on cash coverage for the dividend, which has grown at a steady 3% pace since the company listed in 2004. This track record is unmatched among UK insurers. The 8% yield has been a big part of the total return relative to the market.

Retailers Seraphine and Halfords detracted from performance in the period. The retail sector has had a torrid start to the year on fears of a consumer collapse and there have been downgrades across the sector. Consequently, share prices have fallen in the face of macro concerns and rising costs.

Halfords' full year results, were better than expected as the business has executed against its strategy to become an increasingly services led multi-channel specialist. In the outlook statement, however, they flagged that the backdrop had deteriorated rapidly in the first six months of 2022, primarily due to the pressure from rampant cost inflation. While the business is leaning into favourable secular trends and has strategic and operational initiatives, they flagged headwinds from foreign exchange, discretionary squeeze and fuel prices, all of which lead to downgrades to earnings. 

Seraphine, the online maternity wear retailer suffered a profit warning due to supply-chain pressure and poor financial management in of duties in other territories. We significantly reduced exposure to the name given its poor matrix score, ongoing supply-chain and inflationary challenges and weakening consumer backdrop.

Asset manager Liontrust saw downgrades to earnings as the Assets under Management (AuM) outturn was lower, reflecting its exposures to UK Retail and equities and also its growth style. This, together with small net outflows resulted in a reduction to analysts' earnings estimates. The de-rating of the shares has been severe and we expect upside once markets stabilise and flows recover. It is also supported by the well underpinned 8% dividend yield.

Portfolio Activity

Since the end of 2021, we have added a new position in Pets at Home, the largest specialist pet care retailer in the UK, operating two main divisions; retail, which sells pet products including food and accessories, and vet practices. The company scores well on our matrix, demonstrating the operational and earnings momentum in the business which is allowing it to take more market share in a growing market. We are also seeing a transformation of the vet business with growth and significant margin expansion potential ahead. The shares have an attractive free cashflow yield of 5.5% giving a well-funded 3% dividend yield. The balance sheet is net cash, providing optionality for M&A. More detail on this company is provided in the case study on page 16 of the Half Yearly Report.

We added a new position in the high matrix scoring and high yielding developer, Watkin Jones. We had two very strong meetings with the management team and believe that prospects for the business are excellent. End market demand for high quality student accommodation, built-to-rent and affordable housing are supportive and are likely to remain so. Moreover, the company's expanded pipeline has scope to grow further, improving visibility and de-risking future delivery. Their value add is in site selection, design, and construction, and because they are paid on a percentage of completion basis, the return on capital is very high. The risk is the cyclicality of the business model, which is mitigated by consistently having a net cash balance sheet, together with typically only commencing construction when the company has agreed a contract with an institution who will own it.

A new position was added in defence company, Chemring. Over a short time, we have watched the management team realign the portfolio and transition to a higher quality business. Strong progress has been made, evidenced by solid earnings growth, cash conversion of EBITDA >100% in each of the last three financial years, and improved safety metrics. Visibility has improved, underpinned by a strong order book and sole source positions on key growth programmes. Such improvements in the business have been evidenced by the delivery of consistent upgrades to earnings. Russia's invasion of Ukraine has seen a sea change in opinion towards defence spending in the West, and it has also seen a reset in terms of how the sector is viewed from an Environmental, Social and Governance ("ESG") perspective. While there remains much uncertainty as to the speed at which defence spend materialises into orders for the sector, we appear to be entering a multi-year period of elevated defence and security spending and Chemring's refocused portfolio is well aligned to areas of growing spend. In addition to end market strength we see multiple stock specific drivers particularly around 'Roke' a high margin division with expertise around Artificial Intelligence, Machine Learning and Cyber and Data Networks. Chemring's significantly improved balance sheet also provides optionality for M&A alongside returns to shareholders. Chemring has a high matrix score and the shares yield c.2.2%.

More recently, we added a new position in North Sea based exploration and gas production company Serica Energy ("Serica"). Five years of underinvestment in the North Sea had already led to acute gas shortages even before Russia's invasion of Ukraine. The invasion of Ukraine is expected to be prolonged and lead to a long term embargo on Russian gas across Europe. The consensus on twelve month earnings expectations for the Exploration & Production sector as a whole is strong, which is reflective of forecasts for tight oil and gas markets that are set to extend through the second half of the year, into 2023. We favour Serica against this backdrop as the credential of the business fits our Quality Growth and Momentum process. The management team have a good track record of execution, the balance sheet is net cash and at the recent AGM, management reiterated production guidance and increased the capital return through an additional interim dividend on top of the existing final dividend. This raised the total annual dividend to 15p per share and dividend yield to c5%. The shape and impact of the windfall profits tax on the business is certain, and ESG credentials are strong, reflected in the company's MSCI A rating.

We sold our position in Moneysupermarket. A series of concerns ranging from management change to regulation to volatile end markets has led to a gradually declining earnings momentum. The business has had to deal with supply shocks in all of its key segments. While the money and travel segments are seeing recovery post pandemic, trading in the home services division remains difficult due to the ongoing energy crisis, and a regulatory review clouds the insurance market outlook. Whilst the forecast free cash flow should be sufficient to support the dividend, the poor matrix score, together with concerns over the future trajectory of the competitive landscape lead us to exit the position.

We exited our position in language translation company, RWS, following a strategic review that pointed to slower growth for the business, and near term margin pressure. We also exited our position in Clipper Logistics following the bid from US listed GXO.

The June 2022 update from retailer ProCook revealed that, while they are gaining market share, the kitchenware sector has struggled in recent months due to weaker footfall and conversion. The business has good long term growth prospects; however, the challenges around earnings progression meant that we took the decision to exit the position.

We reduced the portfolio's overall exposure to the retail sector during the period under review. Consumers are facing an erosion of spending power, meaning that retailers' margins will carry some of the pain. Consumers seem well disposed to enjoy the summer; however, autumn is when we expect them to feel the impact of weaker spending power, which will really impact retail volumes. While the retail companies in the Company's portfolio are structural growth stocks, offering market share gains, attractive return on capital employed excellent cash conversion, lower operational gearing/lower downgrade risk and compelling long term growth prospects, we consider it prudent to reduce expose to the sector in this environment.

Fixed income

As with other financial markets corporate bonds suffered a very difficult first six months of the year. Inflation continued to rise and policymakers moved to a more hawkish stance in many jurisdictions. This has caused yields to rise on expectations of higher rates and credit spreads to widen as economic slowdown has been priced-in. Although it is fair to assume that inflation expectations will fall from here, the impact of higher rates, combined with the challenges being faced by consumers as well as corporates from higher prices will be negative on economic activity. A soft landing has been priced-in to corporate bond markets and spreads offer some good value over the medium term despite some downside risk.

Holdings in the Company are investment grade rated and credit quality in this market remains strong. Corporates in all sectors have displayed prudence in the aftermath of the pandemic and leverage remains relatively low on an historic basis. The Corporate Bond All Maturities Index was down over 14% over the period, with the back up in government yields being the main driver. The bonds issued by Barclays, HSBC and NatWest in the financial sector all fell in value as the banking sector was one of the sterling market's underperformers. Shorter dated issues in the Company were the best performers with Heathrow 5.225% 2023 down only 0.43%, while the longest maturity, issued by NatWest, was down slightly more than 11%. Following the end of the period a recovery in spreads has been noted and the Company's holdings have delivered some positive returns.

ESG

Without impacting the long term stability and strength of our matrix-driven QGM investment process we have built comprehensive ESG more formally into our thinking in recent years. Through the "quality" aspects of our process, we have subliminally been doing this for many years. ESG is embedded in all our research and investment decisions. abrdn has a well-resourced ESG investment team, with whom we work closely. We also have a dedicated smaller companies on desk ESG analyst, Tzoulianna Leventi. When analysing the ESG credentials of businesses, we are looking for both risks and opportunities. As a long term shareholder, many companies are keen to engage with us, and we can use our in-house ESG expertise to provide guidance. The large AUM we manage in UK smaller companies delivers excellent engagement opportunities with management teams, and the ability to help those companies to improve both their ESG qualities but also how they demonstrate those to the market. Where we can help a company to improve their ESG credentials, this is beneficial as it may lead to a higher stock rating, and can also reduce the risk of holding that investment.

Outlook

It is disappointing that our investment process has not provided the resilience in this bear market that it provided in previous tougher economic environments. The markets focus over the first six months of the year has been very much top-down and macro-driven. The market started the year with optimism about the recovery from the pandemic, where value and recovery stocks were in favour. With the emergence of persistent inflation, constrained supply chains, and the conflict in Ukraine, markets have sold off hitting growth stocks aggressively which has driven the underperformance of our investment process. At the time of writing, the market is still macro and geopolitical driven and the sell-off continues. Market recoveries tend to come at the 'point of maximum pain' and economic data suggests that we are not there yet. 

As we tip towards recession we believe quality will be more of a driver of markets as investors seek resilience. In which case, on a relative basis, our quality focus should become increasingly attractive to the market. In this environment where growth becomes scarcer, companies still achieving earnings growth tend to become more valuable. Our ability to identify companies which can deliver sustained earnings growth should be rewarded. In the Global Financial Crisis, the market cared about quality and earnings; it did not care about value as seen through the underperformance of perceivedcheap stocks.

We are seeing a period of increasing earnings downgrades across the market and, with that, comes the importance of stock selection and an active approach. Resilience of earnings is also linked to dividends, so is a particular focus for this Company.

Small and mid-cap markets are inherently higher risk than large cap and, in this market sell-off, we've seen them, as we have many times in history, sell-off more aggressively. This has been exacerbated by the dominance of sectors such as resources and banks in the FTSE 100, holding up the large cap returns well relative to mid-caps and other geographies. We believe small and mid-caps will once again have their time, and tend to lead in a market recovery. Timing can be challenging, especially in markets with such volatility as these, so we encourage investors to take a long term view with a strategic allocation to the asset class.

Abby Glennie & Amanda YeamanAberdeen Asset Managers Limited12 September 2022

Ten Largest Investments

As at 30 June 2022

Portfolio - Equities

Portfolio - Other Investments

Distribution of Assets and Liabilities

Condensed Statement of Comprehensive Income

Condensed Balance Sheet

Condensed Statement of Changes in Equity

Condensed Statement of Cash Flows

Notes to the Financial Statements

For the year ended 30 June 2022

Please note that past performance is not necessarily a guide to the future and that the value of investments and the income from them may fall as well as rise. Investors may not get back the amount they originally invested

For further information please contact:-

Holly Kidd

Aberdeen Asset Management PLC

Company Secretary

Tel: 0131 372 1503

Alternative Performance Measures