As the general election draws closer, politicians have begun making promises about how they will improve business prospects in the UK. One area of the UK that is sensitive to investor sentiment is the UK smaller companies sector.
A letter from 5,000 small business owners was published today stating their support for the Conservative-led government, saying “We’ve been helped by their steps to lower taxes, reduce red tape, simplify employment law and get the banks lending.”
Whether or not a Conservatives would be the best government for small business, it is certain that smaller companies are often the most sensitive to a downturn in the economy.
The AIC UK Smaller Companies sector focuses on companies which invest at least 80 per cent of their assets in UK smaller companies securities.
The best performing trust is currently Strategic Equity Capital Plc, which invests 89.1 per cent of its assets in UK equities and the remaining 10.9 per cent in cash. The £113.8m fund focuses most heavily on the electronics, technology and software, and industrials sectors. The largest holding is industrial equipment supplier Tyman Plc at 11.6 per cent, technology company Servelec Group Plc at 10.7 per cent, and manufacturer E2V Technologies at 10.6 per cent.
Athelney Trust Plc Ord 25p was at the bottom of the sector’s performance. Significantly smaller than Strategic Equity Capital Plc, the £3.9m fund invests all its assets in UK equities with a focus on property, support services, and other financials. Its biggest holdings are property trading company Mountainview Estates at 3.5 per cent and online gaming services provider GVC Holdings Plc at 3.2 per cent.
| Best and worst UK smaller companies investment trusts, 1 year to 27 April 2015 | |
| Top 5 | |
| Strategic Equity Capital plc | £1,250 |
| Invesco Perpetual UK Smaller Companies plc | £1,131 |
| Henderson Smaller Companies Investment Trust Ord | £1,094 |
| Aberforth Geared Income Trust Plc Ord 1P | £1,072 |
| SVM UK Emerging | £1,048 |
| Bottom 5 | |
| Athelney Trust PLC Ord 25p | £796 |
| Standard Life UK Smaller Companies Trust PLC 3.5% Convertible Unsecured Loan Stock 2018 | £894 |
| Standard Life UK Smaller Companies Trust PLC | £935 |
| Dunedin Smaller Companies IT PLC Ord 25p | £952 |
| Aberforth Smaller Companies Trust plc Ord | £960 |
| Figures as at 27 April 2015, based on £1,000 initial investment. Source: FE | |
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