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Capture the return of UK value with Aberforth Smaller Companies

Value investing is making a comeback and Aberforth Smaller Companies, a specialist in this area, looks like a good way to capture this
January 26, 2017

There have been a number of signs of a return to value investing and a good way to capture the gains of such a shift could be Aberforth Smaller Companies Trust (ASL).

IC TIP: Buy at 1119p
Tip style
Growth
Risk rating
High
Timescale
Long Term
Bull points
  • Signs of a return to value
  • Specialist value managers
  • Good long-term performance
  • Potential for discount tightening
Bear points
  • Could buy back more shares
  • Brexit impact

Like a lot of value investments, this investment trust's recent performance hasn't been great and it has underperformed its benchmark, Numis Smaller Companies ex Investment Companies index, over one and three years. As a result, its discount to net asset value (NAV) has widened from under 5 per cent at the end of 2015 to around 14 per cent - one of its widest levels in four years.

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