The trust's portfolio is diversified and will normally consist of investments in around 80 individual companies.
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 recently published final results for the full year to 31st December 2018 (link via Investegate)
|5 Years v FTSE All Share|
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At the current price of around £12.10, the trust has a natural yield of 2.5% (and 3.0% including the special dividend).
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.
Over the past year or so I have disposed of quite a few of my investment trusts however, depending on the response from management, I am happy to continue with Aberforth for the longer term. My current holding is around 2% of my total portfolio so either way it's not going to make a huge difference.
As ever, this article is merely a record of my personal investment decisions and should not be regarded as an endorsement or recommendation - always DYOR!