Positive focus helps trust to solid returns

Published on Monday 6 September 2010 22:00

Standard Life UK Smaller Companies Trust has generated another solid return for investors after focusing on firms that "display resilience, low risk and positive growth".

The trust, which is run by investment veteran Harry Nimmo, yesterday cheered a 38.5 per cent increase in net asset value over the year to 30 June. The figure compares with a rise of 24.4 per cent in the benchmark Hoare Govett Smaller Companies Index (excluding investment companies).

There was a 56.3 per cent jump in the total dividend per share to 2.5p, against 1.6p the year before.

The trust highlighted its "high exposure to successful online business models", including web-based clothing retailer ASOS, whose shares surged 153 per cent over the period.

It also benefited from a strong performance at SuperGroup, the owner of the trendy Superdry clothing brand.

Chairman Donald MacDonald said: "In the last year, the company strongly outperformed its benchmark.

"The manager, Harry Nimmo, continued to focus on investing in companies with proven business models and exposure to international markets.

"In particular, a preference for companies that display resilience, low risk and positive growth led to strong outperformance in the final quarter of the financial year."

The trust pointed out that of its 30 top company holdings, half still had a founder as chief executive.