Standard Life UK Smaller Companies Trust (LON:SLS)

Founded in 1993, Standard Life UK Smaller Companies Trust is a UK-based investment trust with an objective to deliver long-term capital growth by investing in UK’s listed smaller companies. The trust invest across wide range of sectors that include Consumer discretionary, consumer staples, financials, health care, basic material, Industrials, Technology, Real Estate and Telecommunications. The trust’s reference index is the Numis Smaller Companies plus AIM Index (excluding investment companies).  The trust has a premium listing on the London Stock Exchange as LON: SLS.

The trust has appointed Standard Life Investment (Corporate Funds) Limited as its investment manager. The manager select lower risk smaller businesses in growing markets where business momentum is predictable, positive and improving. The trust’s portfolio will normally consist of 50 individual holdings representing manager’s highest conviction investment ideas, with a motive to reduce risk without compromising flexibility. At the time of investment, no particular holding should exceed 5% of total assets.

The trust may also use derivative instruments in the portfolio for hedging purposes and the maximum level of gearing is 100% of net assets. The board has set parameters of between 5% net cash and 25% net gearing for gearing in normal market conditions. In the portfolio companies with market capitalization should not represent over 5% of total assets, companies engaged in Blue Sky products should not consist of over 5% of total assets and over 50% of the portfolio should be invested in companies that are constituents of the FTSE AIM All-Share Index.