In seeking investments the approach will be fundamental in nature involving regular contact with the management of prospective and existing investments in conjunction with rigorous financial analysis of these companies. The emphasis within the portfolio will reflect the desire to invest in companies whose shares represent relatively attractive value and a preference for holdings with low or no gearing.
They have recently published final results for the full year to 31st December 2017(link via Investegate).
I was pleased to note that management charges have fallen as a percentage of net assets this year and ongoing charges which includes transaction charges are now 0.72%.
|5 Yr Comparison v Vanguard Global Small Cap|
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The board are proposing a final dividend of 19.75p making a full year increase of 5.3% to 28.80p per share. In addition, as last year a special dividend of 6.7p is proposed as the trust has received special dividends from several portfolio holdings. Revenue reserves have increased by a further 14.7% to £79.92m (2016 £69.64m).
At the current price of around £13.50, the trust has a yield of 2.2% (but 2.6% including the special dividend).
I would not advocate a large holding of small caps in any portfolio, however a weighting of between 5% - 10% is likely to boost total returns for the long term investor.
Last year I took the opportunity to trim back my holding as it had become overweight compared to when I first acquired it and I wanted to take out some of the capital appreciation for 'income'. However I am happy to continue with Aberforth for the longer term for delivery of growth and steadily rising income.
As ever, slow & steady steps…..