Ten Years of ABRDN UK SMALLER COMPANIES TRUST PLC (AUSC)

[ADrunkenMarcus]

I bought what was then Standard Life UK Smaller Cos ten years ago to the day. A decent period to review how it has done for me.

The share price has risen 268.2% and the trust has paid 30.1% of its book cost out in dividends. Simply adding up the share price gain and the cash dividends gets a total return of 298.3%, almost up 4-fold - assuming that you had simply let the dividends build up in your brokerage account. Had the dividends been reinvested (ignoring costs) then the return would be higher.

This equates to a 13.9% CAGR in the share price or 14.8% CAGR on a total return basis (as above).

The dividend yield on book cost is 3.8% (3.3% in real terms) which shows it has developed a healthy dividend stream even though that is not the focus of the trust. The dividend has grown by a 10.8% CAGR.

The FTSE all share has provided a total return of 87.8%; the FTSE 100, 73.2%; and the FTSE 250, 164.6%. AUSC's return is therefore 1.8 times the FTSE 250's and over 4 times the FTSE 100's, even though I am not using the correct method which would be with dividends reinvested rather than left on the side as cash.

Some other trusts in the UK small cap space have made stronger returns but it's a pleasing record!

Best wishes


Mark.

[doug2500]

I also hold but often wonder whether one of the others may be better? I remain unsure. One thing is I prefer the portfolio of AUSC but then it's like confirmation bias with some of my individual holdings and style whereas if I'm holding a collective maybe it should be different?

My short list of alternatives:
Henderson SC
Blackrock Throgmorton
JP Morgan UK SC

[Lootman]

I also hold but often wonder whether one of the others may be better? I remain unsure. One thing is I prefer the portfolio of AUSC but then it's like confirmation bias with some of my individual holdings and style whereas if I'm holding a collective maybe it should be different?

My short list of alternatives:
Henderson SC
Blackrock Throgmorton
JP Morgan UK SC

Throgmorton is the one I chose about 10-12 years ago, for no particular reason that I can recall.

It is up about sixfold in that time, including being up 60% in the last 18 months or so, when I bought more.

[77ss]

I also hold but often wonder whether one of the others may be better? I remain unsure. One thing is I prefer the portfolio of AUSC but then it's like confirmation bias with some of my individual holdings and style whereas if I'm holding a collective maybe it should be different?

My short list of alternatives:
Henderson SC
Blackrock Throgmorton
JP Morgan UK SC

Personally I hold HSL and the racier THRG. Happy with both so far. Current XIRRs (with tinkering) of 16% and 25%. I don't expect THRG to continue at this level.

More impersonally, 5 Year Total Returns (from HL) 119% (much the same as the Aberdeen offering) and 233%.

I think that, whatever you choose, the UK smaller company space is a good spot to have some of your money - and I prefer to do so via ITs.

[ADrunkenMarcus]

I think that, whatever you choose, the UK smaller company space is a good spot to have some of your money - and I prefer to do so via ITs.

I do both ITs and direct holdings. Kainos and Diploma are holdings of mine in AUSC's top holdings.

I also hold but often wonder whether one of the others may be better? I remain unsure. One thing is I prefer the portfolio of AUSC but then it's like confirmation bias with some of my individual holdings and style whereas if I'm holding a collective maybe it should be different?

I hold BlackRock Smaller Companies in my dividend growth portfolio. I think I chose it (last year) above AUSC (then SLS) because it had a higher dividend yield and higher dividend growth at that time. It has grown its dividend in 2021 over 2020, too, whereas AUSC maintained the dividend. AUSC's total return over ten years has also been higher, as well.

I'm way overexposed to smaller companies - my SIPP has about 50% Smithson, then 17% AUSC and 15% Spirax Sarco Engineering (yes, growing into the FTSE 100 now). I quite like it.

Best wishes


Mark.

[doug2500]

I also hold MTE Montanaro European Smaller Companies which has done really well for me.

The big question being of course whether it will continue to do as well in the future.

They also do a UK smaller companies trust

[ADrunkenMarcus]

I also hold MTE Montanaro European Smaller Companies which has done really well for me.

Over 600% according to AIC on a ten-year TR share price return basis!

There's a lot to be said for the dynamism of smaller and mid cap companies compared to lethargic large caps, particularly in the FTSE 100.

Best wishes


Mark.

[DavidM13]

I also hold but often wonder whether one of the others may be better? I remain unsure. One thing is I prefer the portfolio of AUSC but then it's like confirmation bias with some of my individual holdings and style whereas if I'm holding a collective maybe it should be different?

My short list of alternatives:
Henderson SC
Blackrock Throgmorton
JP Morgan UK SC

Very easy to check! This shows the UK Smaller Companies sector sorted on a 10y price total return basis https://www.theaic.co.uk/aic/find-compa ... &desc=true


edit: the sorting doesn't stick when using a link so you have to hit the little arrow on 10y to sort for yourelf.

[doug2500]

I also hold but often wonder whether one of the others may be better? I remain unsure. One thing is I prefer the portfolio of AUSC but then it's like confirmation bias with some of my individual holdings and style whereas if I'm holding a collective maybe it should be different?

My short list of alternatives:
Henderson SC
Blackrock Throgmorton
JP Morgan UK SC

Very easy to check! This shows the UK Smaller Companies sector sorted on a 10y price total return basis https://www.theaic.co.uk/aic/find-compa ... &desc=true


edit: the sorting doesn't stick when using a link so you have to hit the little arrow on 10y to sort for yourelf.

That only tells you which one would have been better until now, not which one may be better from now

[DavidM13]

I also hold but often wonder whether one of the others may be better? I remain unsure. One thing is I prefer the portfolio of AUSC but then it's like confirmation bias with some of my individual holdings and style whereas if I'm holding a collective maybe it should be different?

My short list of alternatives:
Henderson SC
Blackrock Throgmorton
JP Morgan UK SC

Very easy to check! This shows the UK Smaller Companies sector sorted on a 10y price total return basis https://www.theaic.co.uk/aic/find-compa ... &desc=true


edit: the sorting doesn't stick when using a link so you have to hit the little arrow on 10y to sort for yourelf.

That only tells you which one would have been better until now, not which one may be better from now

Fair enough!

[dundas666]

Yes it's definitely a feature I'd like the AIC website to have: to show future 10 year Total Return!

[mc2fool]

Very easy to check! This shows the UK Smaller Companies sector sorted on a 10y price total return basis https://www.theaic.co.uk/aic/find-compa ... &desc=true


edit: the sorting doesn't stick when using a link so you have to hit the little arrow on 10y to sort for yourelf.

So why doesn't the site respect the sortid passed in the URL? (Neither when bookmarked too). Looks like a bug to me.

[DavidM13]

Very easy to check! This shows the UK Smaller Companies sector sorted on a 10y price total return basis https://www.theaic.co.uk/aic/find-compa ... &desc=true


edit: the sorting doesn't stick when using a link so you have to hit the little arrow on 10y to sort for yourelf.

So why doesn't the site respect the sortid passed in the URL? (Neither when bookmarked too). Looks like a bug to me.

Now you wouldn't want to pull our programmer away from our latest cool feature we are developing now would you.....

[mc2fool]

Very easy to check! This shows the UK Smaller Companies sector sorted on a 10y price total return basis https://www.theaic.co.uk/aic/find-compa ... &desc=true


edit: the sorting doesn't stick when using a link so you have to hit the little arrow on 10y to sort for yourelf.

So why doesn't the site respect the sortid passed in the URL? (Neither when bookmarked too). Looks like a bug to me.

Now you wouldn't want to pull our programmer away from our latest cool feature we are developing now would you.....

It's usually a good idea to fix existing bugs before introducing new ones.

[ADrunkenMarcus]

BlackRock Smaller Companies (BRSC) announced its year end results late on Friday, just before the market closed!

After a collapse in dividends in 2020-21 (the company grew its dividend but from reserves), they surged 164% in 2021-22 and as a result BRSC reported 35.29p in revenue per share, allowing them to raise the final dividend 7.3 percent and pay a total of 35p in dividends for the year. It is encouraging that the dividend is already fully covered again and I hold out hopes for strong future growth - in nominal terms, and hopefully after inflation (more challenging) too as time goes on.

I suspect it may bode well for AUSC too.

Best wishes


Mark.