Aberdeen trust beats marker

Aberdeen Smaller Companies Income Trust has reported a benchmark-beating annual performance but warned of the potential negative impact from the global coronavirus outbreak.

Robert Lister, chairman of the Aberdeen Standard Investments-managed fund, said: “Markets were resilient during 2019, despite many uncertainties, few of which have yet resolved themselves.

“The outbreak of the recent global Covid-19 virus has resulted in business disruption and stock market volatility. The extent of the effect of the virus, including its longterm impact, remains uncertain.

“The [fund] 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.”

On a total return basis, over the 12 months to the end of December, the trust’s net asset value rose by 34.4 per cent, while the share price total return was 57.8 per cent.

This compares with a total return of 17.7 per cent for the company’s former benchmark, the FTSE Small Cap ex Inv Trust Index, and 25.2 per cent from the new benchmark, the Numis Smaller

Companies ex Inv Trust Index.

Total dividend for the year amounted to 8.25p per share, up from 7.35p in 2018, an increase of 12.2 per cent.

Abby Glennie, manager of Aberdeen Smaller Companies Income Trust, said: “We have enjoyed many years of strong economic growth and bull markets, and investors globally are aware that can’t last forever.

“We believe we are certainly nearer the next economic slowdown than the last one. Within the UK specifically, it is difficult to tell at this stage whether some of the areas of slowdown we saw in Q4 will continue throughout 2020, or were short term driven by the general election uncertainty.”