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.
They have today published final results for the full year to 31st December 2015.(link via Investegate)
Share price total return for the past year is a very acceptable 13.9% compared to its benchmark index - Numis Smaller Companies index - Total Return of 10.6%. This is far better than the FTSE 100 return of -1.3% for 2015.
|3 yr chart ASL v FTSE All Share|
(click to enlarge)
The board are proposing a final dividend of 17.85p making a full year increase of 5.1% to 26.00p per share. In addition, a special dividend of 2.75p is proposed as the trust has received seven such dividends from portfolio holdings. Revenue reserves have increased by a further 17% to £62.38m (2014 £53m).
At the current price of around £10.80, the trust has a yield of 2.4% (excluding the special dividend) - obviously this has fallen over the past three years as the share price has risen so strongly.
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.
Although currently not one of the highest yielders in my SIPP, I am happy to continue with Aberforth for the longer term for delivery of growth and steadily rising income.
As ever, slow & steady steps…..