Annual Financial Report

Global Smaller Cos. Trust PLC (The)

22 June 2023

 

LONDON STOCK EXCHANGE ANNOUNCEMENT

The Global Smaller Companies Trust PLC

Audited Statement of Results

for the year ended 30 April 2023

Legal Entity Identifier: 2138008RRULYQP8VP386

Information disclosed in accordance with Disclosure Guidance and Transparency Rule 4.1

Financial highlights

Net Asset Value with debt at fair value ('NAV') total return of -2.9% versus -2.1% from the Benchmark

The NAV fell to 165.7p from 172.8p.

Share price total return of -6.2%

The share price ended the year at 144.6p.

Total dividend of 2.30 pence

53rd consecutive annual increase, up by 25.0%.

Shares ended the year at a discount to the NAV of 12.7%

Date:                22 June 2023

Contact:           Peter Ewins                                                   

                        Columbia Threadneedle Investment Business Limited     

                        020 7628 8000

Chairman's Statement

For equity investors, the year under review has been challenging. Inflation and the consequent need for monetary policy tightening were dominant influences through the year, with the devastating war in Ukraine continuing to cast a heavy shadow, adding to the already tense geo-political climate.

The World Health Organisation's declaration of the COVID pandemic as "no longer a global public health concern" and the easing of pandemic restrictions in China in early 2023 lifted investor sentiment somewhat, before this was to be shaken once again by the emergence of problems across the banking sector in March.

The interest rate environment has been unhelpful for stock market sentiment and, given their greater economic sensitivity, higher rates are especially bad for smaller companies. Unsurprisingly, small caps struggled relative to larger counterparts in most parts of the world, with the main exception being within Asia, where they held up better.

Performance and the discount

Against a difficult global market backdrop, especially for more growth orientated stocks, the Company's Net Asset Value ('NAV') total return (with long-term borrowings at fair value) over the twelve months was -2.9% ending the year at 165.7p per share. While negative returns are never welcome, the second six months of the year actually delivered a modest recovery, helped by hopes that the period of rising interest rates might be coming to an end.

In the Company's Half Year Report, the Manager highlighted that investment trust discounts had widened out given increased caution around the economic outlook and that smaller company funds in particular had been impacted by this trend. Starting 2022/23 at 9.6%, the Company's discount reached 14.1% at the end of October 2022 and closed the financial year at 12.7%, significantly wider than the Board's sub 5% target. The wider discount meant that the share price fell by 7.4% over the year to 144.6p, or by 6.2% on a total return basis.

While recognising that share buybacks may not have much impact on our discount in an environment where other investment trust discounts are widening, the Board continues to believe that a consistently applied buyback approach is in shareholders' best interests, providing liquidity for those in need of an exit along with NAV accretion to remaining holders. Over the year, some 24.6m shares which represented 4.5% of the starting share capital (2022: 26.2m), were repurchased across some 196 trading days, enhancing the NAV by 0.4% in the process. The chart on page 5 of the Report and Accounts illustrates the Company's discount (and premium) over the last 10 years and that of the wider investment trust sector, providing a reminder that discounts/premiums in the investment trust space are cyclical.

During the course of the year, the Manager has stepped up marketing activity over a number of channels and is working to enhance the messaging around the core investment proposition, highlighting the investment management team's approach to stock selection, which focuses on quality and valuation discipline across a diversified smaller company portfolio. Generating more interest in the Company's shares from both existing and new investors, together of course with good investment performance, will be key in helping to address the discount in the medium term.

The Benchmark

In April the Board announced a change to the Company's Benchmark with effect from 1 May 2023 for the new financial year. The Benchmark return has been calculated from the blended returns from UK and international small cap indices, with the former and latter having a 30% and 70% weighting respectively. Over the years, the share of the Company's portfolio invested in domestically listed stocks has been on the decline, reflecting the evolution of the global investment universe. Essentially the UK market has become a smaller part of the total world stock market capitalisation with other markets, particularly in Asia, now offering a wider set of opportunities in the smaller quoted arena than historically. The weighting in the Benchmark calculation therefore has been adjusted, making the new Benchmark: 20% Numis UK Smaller Companies (excluding investment companies)/Index 80% MSCI All Country World ex UK Small Cap Index. To take account of the withholding taxes that the Company pays on some overseas dividends, the calculation of the MSCI index returns will now be measured on a net of tax basis (previously gross returns have been used).

The returns from the Benchmark used for 2022/23 were -2.1%. Longer-term cumulative performance total returns from the NAV, Benchmark and share price are shown in the table below. The compound annualised NAV and share price returns over the last 25 years are 9.2% and 9.6% respectively, well ahead of the 3.4% Retail Prices Index annual increase over the same time-frame.

Performance: Total returns over the long-term
	1 year %	3 years %	5 years %	10 years %	25 years %
NAV total return	-2.9	43.3	28.2	144.6	811.1
Benchmark total return	-2.1	46.1	29.3	137.2	665.2
Share price total return	-6.2	35.3	11.8	110.8	897.5

Source: Columbia Threadneedle Investments

Costs and management fee

Ongoing charges were up over the year, moving from 0.75% to 0.79%, mainly reflecting the lower average daily net asset level. These remain low compared to many smaller company funds in the market.

The Manager has been paid a management fee of 0.55% per annum of the Company's net asset value, which is reduced to 0.275% in respect of the market value of investments held in third party collective funds. Following constructive discussions with the Manager, the Board has agreed to introduce a tiered element to the management fee. With effect from 1 May 2023, net assets outside of collectives in excess of £750m will be charged at a reduced rate of 0.5% per annum, with any investments made in third party collective investment schemes remaining subject to a charge of 0.275% per annum of the month end market value of those investments.

Dividends

Although capital growth has been harder to come by in more recent times, income returns have been much more positive. Revenue returns per share for the year rose by no less than 28.6% as income from both UK and overseas based holdings grew strongly, helped by a post-pandemic profit bounce-back. Following on from the 10.5% increase in the interim dividend, the Board has decided to recommend the payment of a final dividend of 1.67p, meaning the full year payment will be up by 25.0% to 2.30p. This will be paid to shareholders on 4 August and will be the 53rd consecutive increase in the Company's dividend. At a time when inflation remains elevated, it is pleasing that the payout is well up in real terms and this is also a good sign of the confidence that investee company management teams have in the future of their businesses.

Market and portfolio performance

The Manager's review starting on page 8 of the Report and Accounts covers the year's performance in more detail. This year we have included another section which outlines the core tenets of the Manager's investment philosophy and approach, illustrated with some individual case studies.

It is fair to say that the environment for investing has changed considerably in the last couple of years, with the period of ultra-low interest rates seemingly behind us for a while. Inflationary pressures - initially stemming from higher commodity prices, supply chain problems in relation to the pandemic and the war - have been augmented as a result of tight labour markets in much of the developed world. The process of consequent interest rate normalisation is clearly creating issues at both a sector and company level, as evidenced by the recent collapse of a number of US banks. Highly leveraged businesses have found themselves facing significantly more expensive finance costs and loss-making or more speculative businesses are finding support from both equity and debt markets less forthcoming. In essence, market conditions are increasingly favouring higher quality and lower risk businesses. Merger and takeover activity has slowed in the past year in the face of the higher interest rates, but a number of the Company's holdings were still the subject of approaches this year.

Geographical performance (total return sterling adjusted)
for the year ended 30 April 2023
	Portfolio	Local smaller companies index
UK	-6.3%	-3.0%
Europe	-2.1%	0.3%
North America	-4.2%	-3.8%
Japan	9.1%	7.7%
Rest of World*	-2.1%	-7.4% (Pacific ex Japan)   -1.5% (Latin America)

Source: Columbia Threadneedle Investments

*Performance of the Rest of World portfolio is shown here against both Asian and Latin American smaller company indices

The table above shows how our regional portfolios performed in the year compared with the relevant local smaller company indices. As mentioned above, smaller companies were not immune to the impact of higher interest rates and slower global growth data. Relative to the local small cap market returns, we were a little behind in North America though it should be recalled that this followed a stellar year here in 2021/22 and indeed during the second half of 2022/23, the portfolio outperformed significantly after having had a more difficult period last summer. We were more meaningfully behind in the UK and Europe as stock selection proved challenging. The best returns by far came from our holdings in Japan, where our largest fund holding managed by Eastspring performed very well. In the Rest of World portfolio of collective funds, we were pleasingly ahead of the Asian small cap index return which is where most of our exposure in this part of the portfolio is orientated. The Manager's Review highlights some changes being made to the comparator smaller company indices for North America and Europe with effect from the new financial year.

Asset allocation

Regional allocation made a small positive contribution towards the overall relative performance of the Company in the year. Over the course of the year, there were no dramatic changes to the geographic weightings of the portfolio, though the exposure to North American listed stocks fell back in the second half as the Manager became less optimistic on the outlook there, in part due to the possibility for a pull-back in the US dollar. The table below shows the weightings of the portfolio against the new Benchmark. 

Geographical distribution of the investment portfolio as at 30 April 2023
North America	41.7% (43.4%)
UK	25.3% (26.8%)
Rest of World	12.4% (12.2%)
Europe	12.1% (10.8%)
Japan	8.5% (6.8%)

The percentages in brackets are as at 30 April 2022

Source: Columbia Threadneedle Investments

Geographical weightings of the portfolio and the revised Benchmark
	Portfolio weight (%)	Benchmark weight (%)
UK	25.3	20.0
Europe	12.1	10.5
North America	41.7	45.5
Japan	8.5	8.7
Rest of World*	12.4	15.3

Source: Columbia Threadneedle Investments

Gearing Policy

Although equity market performance has been uninspiring more recently, the Board remains of the view that making use of borrowing powers over the long term will serve to enhance shareholder returns. At the end of the year, effective gearing was 5.2% compared to 4.6% a year earlier. Borrowings were made up of £35m of 2.26% sterling loan notes maturing in 2039 and £17m equivalent drawings in US dollars, yen and euros under our revolving credit facility. The fair value of the loan notes fell by £10.4m in the year, reflecting the rise in market yields, with the 2.26% rate now looking highly attractive compared to prevailing market rates.

Environmental, Social and Governance ('ESG')

While your Company is not an ESG badged fund, the fund management team take close account of ESG factors in making their stock selections. Over the course of the last year input in this regard from the Manager's Responsible Investment team has continued to be helpful, with regular updates provided to the fund managers on specific topics of interest and new ESG developments. Engagement with the management teams of companies held in the portfolio is continuous and once again some practical illustrations of this work are outlined in the Responsible Investment report on pages 22 to 25 of the Report and Accounts.

Composition of the board and committees

The Board comprises five directors and maintains plans for orderly succession, ensuring that the right balance of skills, experience, knowledge, independence and diversity are in place for the Board to operate effectively, as a whole. It currently meets the FCA diversity requirements relating to gender diversity and is committed to meeting the target of at least one director being from a minority ethnic background in the course of 2023.

David Stileman will stand down from the Board in October this year. On behalf of the Board I would like to thank him for his contribution since his appointment in 2015 and we wish him well for the future. The process to recruit his successor is underway.

Annual General Meeting

The Annual General Meeting will take place at The Chartered Accountants Hall, 1 Moorgate Place, London EC2R 6EA on Friday, 28 July 2023 at 12.00 noon. We hope as many shareholders as possible will attend. The Lead Manager will, as usual, give a review of the year together with his view on the outlook. We will also be streaming the meeting live on the internet so that those shareholders who cannot attend in person will be able to view the proceedings. The live stream can be accessed by registering here: https://www. investormeetcompany.com/the-global-smaller-companies-trust-plc/ register-investor

Voting at this year's AGM will be conducted by way of a poll and, therefore, you are requested to lodge your votes ahead of the meeting by completing your Form of Proxy or Form of Direction in accordance with the instructions shown thereon. Their completion and return will not preclude you from attending the meeting and voting in person. Shareholders who are unable to attend the AGM are requested to submit any questions they may have with regard to the resolutions proposed at the AGM or the performance of the Company, in advance of the meeting to [e-mail]. Following the AGM, the Lead Manager's presentation will be available on the Company's website globalsmallercompanies.co.uk.

Outlook

As always it's hard to predict how markets will perform looking ahead, but it seems likely that the path of inflation and interest rates in the next few months will have a large bearing on equity market trends. The lagged impact of previous rate hikes will be a headwind in the coming period for the global economy. Having said this, the Manager is continuing to find opportunities in the markets, helped by the pullback in valuations and by the increased depth of investment research capabilities within the enlarged Columbia Threadneedle Investments business. Now that the prolonged period of low interest rates and "easy money" has come to an end, your Manager's focus on quality companies with strong balance sheets is starting to pay off. The Board remains confident in the medium term returns prospects for your Company given the underlying dynamism within the global smaller company sphere.

Anja Balfour
Chairman
21 June 2023

Principal and Emerging Risks and Future Prospects

The Board's processes for monitoring the principal risks and identifying emerging risks are set out on page 53 of the Report and Accounts and in note 23 to the Accounts. Any emerging risks that are identified and that are considered to be of significance are included on the Company's risk assessment together with any mitigations. These principal and emerging risks are reviewed regularly by the Audit and Management Engagement Committee and by the Board. There is a risk that the current high levels of inflation will be sustained and of course geo-political risk has been heightened as a result of the war in Ukraine. The principal risks are largely unchanged from those reported in the prior year. Those identified as most relevant to the assessment of the Company's future prospects and viability were those relating to the potential impact from sustained high inflation, inappropriate business strategy, potential investment portfolio under-performance and its effect on the Company's share price discount/ premium and dividends, as well as threats to security over the Company's assets.

Principal Risk: Service providers and systems security - Errors, fraud or control failures at service providers or loss of data through business continuity failure or cyber attacks could damage reputation or investors' interests or result in loss. Cyber risks remain heightened.

Unchanged throughout the year.

Mitigation by strategy: The ancillary functions of administration, company secretarial, accounting and marketing services are all carried out by the Manager. Custody and depositary services are provided by third party suppliers.

The Board monitors the effectiveness and efficiency of service providers' processes through internal efficiency KPIs.

Actions taken in the year: The Audit and Management Engagement Committee and the Board have regularly reviewed the Company's risk management framework with the assistance of the Manager. Regular control reports are provided by the Manager which cover risk, compliance and oversight of third-party service providers, including IT security and cyber-threats. Reports from the Depositary, which is liable for the loss of any of the Company's securities and cash held in custody unless resulting from an external event beyond its reasonable control, were reviewed. The Board is satisfied that the continuity arrangements of all key suppliers continued to work well and as such, this risk is unchanged.

Principal Risk: Investment performance - Inappropriate business strategy or policy, or ineffective implementation, could result in poor returns for shareholders. Failure to access the targeted market or meet investor needs or expectations, including Responsible Investment and climate change in particular, leading to significant pressure on the share price. Political risk factors could also impact performance as could market shocks such as those experienced in relation to Covid-19 and the war in Ukraine.

Unchanged throughout the year.

Mitigation by strategy: Under our Business Model, a manager is appointed with the capability and resource to manage the Company's assets, asset allocation, gearing, stock and sector selection and risk. The individual regional investment portfolios are managed to provide in combination a well-diversified, lower volatility and lower risk overall portfolio structure. The Board holds a separate strategy meeting each year and considers investment policy review reports from the Manager at each Board meeting. The performance of the Company relative to its Benchmark, its peers and inflation is a KPI measured by the Board on an ongoing basis and is reported on page 39 of the Report and Accounts.

Actions taken in the year: Columbia Threadneedle has been retained as Manager and continues to deliver on the Company's objective. It operates within a responsible investment culture under a corporate commitment to four key Sustainability Principles: Social Change, Financial Resilience, Community Building and Environmental Impact. Through the Manager, the Company has the flexibility to innovate, adapt and evolve as Responsible Investment necessities and expectations change. Marketing and investor relations campaigns continued throughout the year, including presentations by the Lead Manager to wealth managers across the country. Detailed reports provided by the Lead Manager have been reviewed by the Board at each of its meetings. Strong operational performance from the investment portfolio over the year has resulted in the dividend for the year increasing by 25.0%. In overall terms this risk is considered unchanged.

Principal Risk: Discount/premium - A significant share price discount or premium to the Company's NAV per share, or related volatility, could lead to high levels of uncertainty or speculation and the potential to reduce investor confidence. Increased uncertainty in markets due to an event such as Covid-19 or the significant rise in inflation could lead to falls and volatility in the Company's NAV.

Risk has increased during the year.

Mitigation by strategy: The Board has established share buyback and share issue policies, together with a dividend policy, which aim to moderate the level and volatility of the share price discount or premium to the NAV per share and it seeks shareholder approval each year for the necessary powers to implement those policies. The discount/premium to NAV at which the Company's shares trade is a KPI measured by the Board on an ongoing basis and is reported on page 39 of the Report and Accounts.

Actions taken in the year: Despite actively buying in shares on a regular, ongoing basis in order to address the imbalance between the supply and demand of the Company's shares, the discount has remained wider than desired. During the course of the year, the Manager has stepped up marketing activity over a number of channels and is working to enhance the messaging around the core investment proposition. This activity aims to stimulate demand for the Company's shares from existing and new investors. Given the higher prevailing discount level the risk is considered to have increased during the year.

Five Year Horizon

Through a series of stress tests ranging from moderate to extreme scenarios, including the impact of market shocks and based on historical information, but forward looking over the five years commencing 1 May 2023, the Board assessed the risks of:

• Sustained high levels of inflation.

• Potential illiquidity of the Company's portfolio.

• Substantial falls in investment values on the ability to meet loan covenant requirements and to repay and re-negotiate funding.

• Significant falls in income on the ability to continue paying steadily-rising dividends and maintaining adequate revenue reserves.

The Board also took into consideration the operational robustness of its principal service providers and the effectiveness of business continuity plans in place, potential effects of regulatory changes and the potential threat from competition.

Based on its assessment and evaluation of the Company's future prospects, the Board has a reasonable expectation that the Company will be able to continue in operation and meet its liabilities as they fall due over the coming five years. This period has been chosen because it is consistent with the advice provided by many investment advisers, that investors should invest in equities for a minimum of five years. The Company's business model, strategy and the embedded characteristics listed below have helped define and maintain the stability of the Company over many decades. The Board expects this to continue and will continue to assess viability over subsequent five year rolling periods.

Statement of Directors' Responsibilities in Respect of the Financial Statements

In accordance with Chapter 4.1.12 of the Disclosure Guidance and Transparency Rules the Directors confirm, in respect of the annual report for the year ended 30 April 2023 of which this statement of results is an extract, to the best of their knowledge that:

·      the financial statements, prepared in accordance with applicable accounting standards, give a true and fair view of the assets, liabilities, financial position and loss of the Company;

·      the Strategic Report includes a fair review of the development and performance of the business and the position of the Company, together with a description of the principal risks and uncertainties that it faces; and

·      in the opinion of the Directors the annual report and financial statements, taken as a whole, are fair, balanced and understandable and provide the information necessary for shareholders to assess the Company's position and performance, business model and strategy.

On behalf of the Board

Anja Balfour

Chairman

21 June 2023

Income Statement

for the year ended 30 April	2023			2022
	Revenue	Capital	Total	Revenue	Capital	Total
	£'000s	£'000s	£'000s	£'000s	£'000s	£'000s
Losses on investments	-	(50,067)	(50,067)	-	(16,127)	(16,127)
Foreign exchange (losses)/gains	(6)	115	109	16	517	533
Income	16,214	1,656	17,870	13,418	581	13,999
Management fee	(1,082)	(3,247)	(4,329)	(1,251)	(3,753)	(5,004)
Other expenses	(1,070)	(29)	(1,099)	(955)	(22)	(977)
Net return before finance costs and taxation	14,056	(51,572)	(37,516)	11,228	(18,804)	(7,576)
Finance costs	(269)	(808)	(1,077)	(233)	(699)	(932)
Net return on ordinary activities before taxation	13,787	(52,380)	(38,593)	10,995	(19,503)	(8,508)
Taxation on ordinary activities	(1,167)	-	(1,167)	(754)	-	(754)
Net return attributable to equity shareholders	12,620	(52,380)	(39,760)	10,241	(19,503)	(9,262)
Return per share (basic and diluted) - pence	2.34	(9.73)	(7.39)	1.82	(3.46)	(1.64)

The total column of this statement is the profit and loss account of the Company.

All revenue and capital items in the above statement derive from continuing operations.

A statement of total comprehensive income is not required as all income and expenses of the Company have been reflected in the above statement.

Statement of Changes in Equity

for the year ended 30 April 2023
		Share	Capital				Total
	Share	premium	redemption	Capital	Revenue		shareholders'
	capital	account	reserve	reserves	reserve		funds
	£'000s	£'000s	£'000s	£'000s	£'000s		£'000s
Balance at 30 April 2022	15,513	212,639	16,158	685,538	15,456		945,304
Movements during the year ended 30 April 2023
Dividends paid	-	-	-	-	(10,305)		(10,305)
Shares repurchased by the    Company and held in treasury	-	-	-	(35,804)	-		(35,804)
Net return attributable to equity shareholders	-	-	-	(52,380)	12,620		(39,760)
Balance at 30 April 2023	15,513	212,639	16,158	597,354	17,771		859,435

for the year ended 30 April 2022
		Share	Capital				Total
	Share	premium	redemption	Capital	Revenue		shareholders'
	capital	account	reserve	reserves	reserve		funds
	£'000s	£'000s	£'000s	£'000s	£'000s		£'000s
Balance at 30 April 2021	15,513	212,639	16,158	747,951	15,247		1,007,508
Movements during the year ended 30 April 2022
Dividends paid	-	-	-	-	(10,032)		(10,032)
Shares repurchased by the    Company and held in treasury	-	-	-	(42,910)	-		(42,910)
Net return attributable to equity shareholders	-	-	-	(19,503)	10,241		(9,262)
Balance at 30 April 2022	15,513	212,639	16,158	685,538	15,456		945,304

Balance Sheet

at 30 April		2023		2022
		£'000s		£'000s
Fixed assets
Investments		902,350		987,083
Current assets
Debtors		10,720		3,604
Cash and cash equivalents		2,292		13,354
Total current assets		13,012		16,958
Creditors: amounts falling due within one year
Bank loans		(17,027)		(19,782)
Creditors		(3,900)		(3,955)
Total current liabilities		(20,927)		(23,737)
Net current liabilities		(7,915)		(6,779)
Total assets less current liabilities		894,435		980,304
Creditors: amounts falling due after more than one year
Loan notes		(35,000)		(35,000)
Net assets		859,435		945,304
Capital and reserves
Share capital		15,513		15,513
Share premium account		212,639		212,639
Capital redemption reserve		16,158		16,158
Capital reserves		597,354		685,538
Revenue reserve		17,771		15,456
Total shareholders' funds		859,435		945,304
Net asset value per share (debt at par value) - pence		163.73		172.04

Statement of Cash Flows

for the year ended 30 April			2023	2022
			£'000s	£'000s
Cash flows from operating activities before dividends received and interest paid			(4,787)	(5,849)
Dividends received			15,308	12,545
Interest paid			(1,038)	(926)
Cash inflows from operating activities			9,483	5,770
Investing activities
Purchases of  investments			(191,230)	(214,337)
Sales of investments			219,670	256,951
Transaction costs			-	(472)
Other capital charges			-	(22)
Cash inflows from investing activities			28,440	42,120
Cash inflows before financing activities			37,923	47,890
Financing activities
Ordinary dividends paid			(10,305)	(10,032)
Cash flows from share buybacks for treasury shares			(36,034)	(43,168)
Drawdown of bank loans			(2,417)	11,297
Cash outflows from financing activities			(48,756)	(41,903)
Net movement in cash and cash equivalents			(10,833)	5,987
Cash and cash equivalents at the beginning of the year			13,354	6,870
Effect of movement in foreign exchange			(229)	497
Cash and cash equivalents at the end of the year			2,292	13,354
Represented by:
Cash at bank			979	2,179
Short-term deposits less than 3 months			1,313	11,175
Cash and cash equivalents at the end of the year			2,292	13,354

Notes

1    Dividend

The Directors have proposed a final dividend in respect of the year ended 30 April 2023 of 1.67 pence per share, payable on 4 August 2023 to all shareholders on the register at close of business on 7 July 2023. The recommended final dividend is subject to approval by shareholders at the Annual General Meeting.

2    Financial Risk Management

The Company is an investment company, listed on the London Stock Exchange, and conducts its affairs so as to qualify in the United Kingdom (UK) as an investment trust under the provisions of Section 1158 of the Corporation Tax Act 2010. In so qualifying, the Company is exempted in the UK from corporation tax on capital gains on its portfolio of fixed asset investments.

The Company invests in smaller companies worldwide in order to secure a high total return. In pursuing the objective, the Company is exposed to financial risks which could result in a reduction of either or both of the value of the net assets and the profits available for distribution by way of dividend. These financial risks are principally related to the market (currency movements, interest rate changes and security price movements), liquidity and credit. The Board, together with the Manager, is responsible for the Company's risk management.

The full details of financial risks are contained in note 23 of the Report and Accounts.

3    Report and Accounts

This statement was approved by the Board on 21 June 2023. It is not the Company's statutory accounts. The statutory accounts for the financial year ended 30 April 2023 have been approved and audited and received an independent auditors' report which was unqualified and did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying the report. The statutory accounts for the financial year ended 30 April 2022 also received an independent auditors' report which was unqualified and did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying the report.

Jonathan Latter

Columbia Threadneedle Investment Business Limited,

Company Secretary

22 June 2023

ENDS

A copy of the Report and Accounts will be submitted to the National Storage Mechanism and will shortly be available for inspection at data.fca.org.uk/#/nsm/nationalstoragemechanism 

The Report and Accounts for the year ended 30 April 2023 will be posted to shareholders and made available shortly on the Company's website at globalsmallercompanies.co.uk, where up to date information on the Company, including daily NAV and share prices, factsheets and portfolio information can also be found. Copies may also be obtained from the Company's registered office, Exchange House, Primrose Street, London EC2A 2NY.

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

 

END