Abrdn Smaller Companies ... Share Discussion Threads

[spectoacc] 14/12/2018 10:36

Haven't looked in a while, but the discount seems similar to usual so doesn't interest me to get back in atm. Still misnamed of course, unless by "Smaller companies" they mean smaller than VOD/HSBA/BP :)

[essentialinvestor] 14/12/2018 09:28

Coming off quite sharply now.

[spectoacc] 04/10/2018 09:47

XD today of course (1.75p).

[essentialinvestor] 04/10/2018 09:43

I'm out, got rid of my last lot yesterday.
Luck to anyone holding. Was happy to hold with Jonathan as manger, that changed.

[topvest] 22/9/2018 12:42

I'm sorry but that's definitely not the case. SLA have been a great supporter of investment trusts over the years, and that continues to be the case. With the SLA merger though there is bound to be some level of rationalisation of the two sides and their investment trust holdings. SLA have had a bad time of late, but when the technology disruption bubble bursts (as it will have to) SLA as a value investor will start out-performing again.

[riverman77] 22/9/2018 11:59

Clearly SLA don't give a toss about these tiddly trusts. I wouldn't be surprised to see this merged with one of the larger funds. Currently on 20% discount.

[essentialinvestor] 20/9/2018 15:26

Less than Impressed with this, we had a manager who outperformed
over a multi year timeframe, oh, let's move him on now.

Given the amount of key mangers that have left SLA since the merger,
Jonathan is probably covering holes left elsewhere, so to speak.

[spectoacc] 20/9/2018 15:19

Completely missed that, well hidden. Isn't she married to Peter Crouch?

[essentialinvestor] 20/9/2018 13:31

Very disappointed at the change of manger.

[essentialinvestor] 12/9/2018 13:24

Topvest, think you may do nicely here longer term,
short term less sure on that.

[essentialinvestor] 03/9/2018 11:18

DPH down 15% on results, that's their second largest holding from memory.
Punchy ratings leave little room for any disappointment.

[topvest] 28/8/2018 11:49

Well I've purchased a small initial holding. Good value on a 20% discount.

[essentialinvestor] 27/8/2018 16:36

Yield is at 2.6% approx. Might be a mistake but I'm looking for around 3%,
or over, to add. I've looked at the earnings multiples on their top 10 holdings,
the mean average looks well north of 20x, that's punchy. Their latest buy
is Hilton Foods, very decent business, but on about 22x.
The NAV discount does provide some protection.

[spectoacc] 27/8/2018 08:03

We all like it but we all want it cheaper :)

(Also unusually cashed-up atm, with several holdings also due to pay out shortly).

[essentialinvestor] 26/8/2018 18:08

Yes agree, I've made the same point on the SLA board previously.
In terms of ASCI, it looks a GARP approach. Very much hope SLA can keep
hold of Jonathan Allison, he's made some very astute stock selections.
The current NAV discount already looks generous, this is at least worth watching.

There's also 120% the current annual dividend in reserves.

[topvest] 26/8/2018 17:59

Yes, but Aberdeen StandardLife use a value (rather than pure growth) investment approach. I am not saying they don’t buy growth companies as well, but they are not in the same category as Baillie Gifford who are pretty much growth (irrespective of price) investors. Over the last 5 years those investment managers taking an approach more like Baillie Gifford have out performed. Anyone holding Amazon and the FANGS are “growth” investors. Fevertree and ASOS if you are talking UK only.

[essentialinvestor] 26/8/2018 17:49

ASCI has limited UK cyclical exposure, can only think of MGNS Or MANX
MANX- which is non cyclical but heavily dependent on IOM economic fortunes.
Neither is it a value oriented trust, that would be something like MUT or MYI.

Mentioned Brexit only because it impacts sentiment towards the sector,
and sentiment may drive the NAV discount higher. In the case of ASCI,
I think that may be misplaced.

[topvest] 26/8/2018 17:18

I will almost certainly buy some of these. Just waiting for a good entry opportunity. Have most of the Aberdeen investment trusts in my portfolio. Aberdeen StandardLife are an excellent investment manager, but have under-performed for some years because of the growth >> value tilt. This will tip the other way around at some point in the not too distant future. Hard brexit doesn't really worry me at all and its a waste of time trying to predict the future of the UK or Global economy. Forecasts are always wrong. For what its worth, I try to hold investment trusts at about 40-50% of my portfolio. I'm also 20% cash at the moment which seems sensible 9 years into a bull market.

[spectoacc] 26/8/2018 16:55

@riverman77 - true, and to be fair I can't recall what the FTSE Small Cap limit is. It clearly doesn't include DPH, VCT, AVV & AGR tho, so ASCI really need a different benchmark, if not a different name.

I guess there's "Microcap" beneath Smallcap too.

@EI - chances of hard Brexit seem to be growing by the day. My favourite quote is the one pointing out that there's a majority in Parliament against every conceivable outcome :)

[riverman77] 26/8/2018 13:43

SpectoAcc - that's true but quite a few of the small cap trusts are actually mainly mid cap when you look into the holdings, HSL and BRSC just as a couple of examples,but I'm pretty sure there are others.

[essentialinvestor] 26/8/2018 12:48

From memory, the trust was heavily geared to preference shares coming
in to the financial crisis.
With the Brexit crunch fast approaching, there may be opportunities lower down.

If you are of a view the UK will negotiate a deal
which the Tory party will back in numbers sufficient to pass a HoC vote,
then UK REITS, house builders and some other domestic cyclicals are worth watching.

It gets very messy indeed if the Tories cannot unite behind a deal.

[spectoacc] 26/8/2018 11:08

@topvest - my issue with ASCI has always been that it totally isn't "..Smaller Companies..". Is badly mis-named, and has the fixed income side to it too (which looked a little ropey when Aviva pulled their recent stunt!).

But made good money on it in the past - as a midcap fund, it doesn't deserve this discount IMO, tho want a little more leeway before I buy again.

Fair point about performance back to 2007 too.

Their benchmark is "FTSE Small Cap ex.IT TR GBP", and yet:

Top holding market caps:

XPP £592m
DPH £3.18bn
VCT £2.68bn
AVV £4.46bn
AGR £1.36bn

None of those would I consider "smallcap"!

[topvest] 26/8/2018 11:02

Yes, keeping an eye myself to get in for the first time. I would question the long-term performance point a little as share price all time high was in 2007 - never regained and the dividend is 50% below then. Seems to have been caused by excessive gearing running into the last recession. Still, recent performance has been OK and gearing at 10% is now much more sensible.

[spectoacc] 22/8/2018 07:53

No longer a holder here but keeping an eye on it. Can't see much reason for the drop, but c.19% discount is still some way short of levels of the past 3 years, when 25% wasn't uncommon.

Their mid-cap holdings could be quite Brexit-affected I guess, and never sure about the weighting to fixed income - a drag on performance when the market's doing well, and not much of a contributor to 2.5% divi.

Will certainly keep an eye on it.

[riverman77] 21/8/2018 18:33

Unexplained drop has put this on c.19% discount - wider than pretty much all its peers despite very solid long-term performance.