Edison issues review on abrdn UK Smaller Companies

RNS Number : 1626K

abrdn UK Smaller Cos. Growth Trust

04 May 2022

 

London, UK, 4 May 2022

Edison issues review on abrdn UK Smaller Companies Growth Trust (AUSC)

abrdn UK Smaller Companies Growth Trust (AUSC) is managed by two of abrdn's small-cap specialists: Harry Nimmo (since September 2003) and Abby Glennie (since November 2020). The trust has a long-term record of outperformance versus its reference index, with the managers following a clearly defined focus on quality, growth and momentum stocks, which means they consider that it is likely to underperform when cyclical/value stocks lead the market. There is a high level of economic uncertainty in the UK due to inflation, rising interest rates and the war in Ukraine. However, the managers are confident that if there is a recession, the trust will outperform as the fund contains high-quality businesses and 'the strong get stronger in difficult times'. They say historical data show that when stock markets weaken it is a good time to consider an investment in AUSC.

AUSC's shares are trading at a 9.5% discount to cum-income NAV, which compares with the 5.2% to 7.3% range of historical averages over the last one, three, five and 10 years. There is scope for a narrower discount given the trust's long-term record of outperformance. The board repurchases shares, targeting a maximum 8.0% discount in normal market conditions.

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