Product category:
Investment funds
News Release from: Standard Life Bank | Subject: Company news
Edited by the Insidemoneytalk Editorial
Team on 11 February 2008
Standard Life UK smaller companies trust
PLC Interim Results for the six months
to 31 December 2007
Highlights: - Despite a difficult period for stock markets, the Company has continued to outperform against its benchmark over the six months ended 31 December 2007
- Net asset value per share (diluted, debt at market) decreased by 9.7% compared with a 13.2% decrease in the Extended Hoare Govett Smaller Companies Index (excluding Investment Companies) - Discount of net asset value of over 18% represents an attractive buying opportunity given the Manager's excellent long term investment performance track record "Despite a difficult period for stock markets in general and smaller companies in particular, the Company has continued to outperform against its benchmark over the six months ended 31 December 2007 Although the economic outlook for 2008 is uncertain at present, the Manager's risk-averse focus on growth companies with robust business models is wholly appropriate for current market conditions
This article was originally published on Insidemoneytalk on 3 Apr 2007 at 8.00am (UK)
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The Company is well placed for when market conditions do improve.
"The Board believe that the shares currently represent an attractive buying opportunity with the discount to net asset value of over 18% given the Manager's excellent long term investment performance track record."Chairman's Statement, Donald MacDonald, Chairman, Standard Life UK Smaller Companies Trust"The Trust outperformed the benchmark during the period under review primarily on the back of positive stock selection.
The Trust benefited from its focus on defensive growth, particularly favouring companies with internet and on-line business models.
ASOS, the online clothing retailer for example, gained 129% in the period in question.
An overweight position in the oil and gas sector also helped, in particular stocks such as our new holding in Wellstream, which has risen by 47% since we purchased it.
"The economic backdrop for 2008 is somewhat opaque at present.
In the short term, smaller companies remain susceptible to bouts of volatility and risk aversion as they also tend to be more exposed to the domestic economy than their larger peers.
The prospect of lower interest rates should trigger a wider market recovery later in the year.
Given the appearance of high quality companies at low valuations we continue to be very positive about the long term outlook for the Trust."Harry Nimmo, Fund Manager - Standard Life UK Smaller Companies Trust, Standard Life Investments.
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