The trusts portfolio is diversified and will normally consist of investments in over 80 individual companies. They are currently overweight in Industrials which account for 35% of the portfolio, Consumer Services 21% and Technology 11.5%.
In seeking investments, the approach will be fundamental in nature involving regular contact with the management of prospective and existing investments in conjunction with rigorous financial analysis of these companies. The emphasis within the portfolio will reflect the desire to invest in companies whose shares represent relatively attractive value and a preference for holdings with low or no gearing.
|2 yr comparison -v- ftse all share|
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The board are proposing a final dividend increased of 5.9% to 16.15p per share and which will make a total of 23.5p for the full year. Revenue reserves have increased by a further 12% from 32.1p to 36.1p.
A few years back when I purchased this trust for my SIPP portfolio, it was yielding around 4% however, after the share price increases - currently around 1115p - the yield has fallen to just over 2%.
Last week I took the opportunity to top slice Aberforth, selling off around 25%, and reinvested the proceeds into Aberdeen Asian Income Trust to bring it up to a ‘full’ holding and on a yield of 4%.
I would not advocate a large holding of small caps in any portfolio, however a weighting of between 5% - 10% is likely to boost total returns for the long term investor.
I am happy to continue with Aberforth and would add to my holding should there be any significant pull-back in the share price over the coming year.
As ever, slow & steady steps…..