IC Top 100 Fund Standard Life UK Smaller Companies Investment Trust has delivered excellent growth since well-regarded small-cap manager Harry Nimmo took it over in 2003. The trust's net asset value (NAV) has returned 253 per cent against 130 per cent for the HG Smaller Companies Index (ex investment companies).
Winterflood analysts say the fund is differentiated from its peer group by a disciplined investment approach. Mr Nimmo and his investment team select shares using quantitative analysis together with fundamental research, via a three-stage process:
They also meet company managements and look to hold stocks for two to three years or longer.
Although the trust holds only 50 stocks, risk is controlled by ensuring the top 10 holdings account for less than 35 per cent of assets, and that no one share accounts for more than 5 per cent.
Because of its strong performance the trust often trades at a premium to NAV, but in some cases it can be worth paying for outperformance. It also has a very reasonable ongoing charge of just 1 per cent.
"Although it can underperform rapidly rising markets it has generated significant outperformance over the medium and long term," says Winterflood. "We continue to recommend Standard Life UK Smaller Companies for well-managed exposure to smaller companies. Despite the difficult macro backdrop, we believe that current valuations provide an attractive entry point to UK smaller companies particularly those where growth will be driven by overseas earnings."
STANDARD LIFE UK SMALLER COMPANIES (GB0002959582) | |||
|---|---|---|---|
| PRICE | 217p* | PRICE PREMIUM TO NAV | 0.12%* |
| AIC SECTOR | UK Smaller Companies | NAV | 216.99p* |
| FUND TYPE | Investment trust | ||
| MARKET CAP | £141.21m | 1-YEAR PRICE PERFORMANCE | -8.04% |
| No OF HOLDINGS | 50* | 3-YEAR PRICE PERFORMANCE | 114.38% |
| SET-UP DATE | 19 Aug 93 | 5-YEAR PRICE PERFORMANCE | 90.43% |
| ONGOING CHARGE | 1% | MORE DETAILS | http://uk.standardlifeinvestments.com |
| YIELD | 1.27% | ||
Source: Morningstar, *Standard Life Investments. Performance data as at 27 July 2012.
Top 10 holdings as at 31 March 2012
| Asos | 4.6% |
| Paddy Power | 4.4% |
| Rightmove | 3.9% |
| Abcam | 3.8% |
| Telecom Plus | 3.8% |
| New Britain Palm Oil | 3.2% |
| Hargreaves Lansdown | 3.1% |
| Mulberry | 2.8% |
| Andor Technology | 2.5% |
| Diploma | 2.5% |
Sector breakdown as at 31 March 2012
| Consumer services | 27.9% |
| Industrials | 25.9% |
| Information technology | 14.8% |
| Consumer goods | 9.6% |
| Healthcare | 8.0% |
| Financials | 7.6% |
| Oil & gas | 6.7% |
| Telecommunications | 4.2% |
| Basic materials | 4.2% |
| Net borrowings | 8.9% |
