Title: Key Information Document: GB0000066554 URL Source: https://doc.morningstar.com/document/99167cf414e92556619ad49efc9cfda8.msdoc/?clientid=ajbell&key=805803a4ca9fc338 Markdown Content: Key Information Document ("KID") ## Aberforth Smaller Companies Trust plc ## Ordinary shares ## Purpose This document provides you with key information about this investment product. It is not marketing material. It helps you understand the nature of this product and enables you to compare it with other products. Other documents are available to hel p you und erstand the product like the Factsheet and Annual Report & Financial Statements. ## Product Product: Manufacturer (AIFM): Product ISIN: Website: Telephone: Regulator: Document valid as at: Aberforth Smaller Companies Trust plc - Ordinary shares Aberforth Partners LLP (Aberforth) GB0000066554 www.aberforth.co.uk +44 131 220 0733 Financial Conduct Authority 31/01 /202 5 ## What is this product? Type: Objectives: Intended retail investor: Aberforth Smaller Companies Trust plc (the Company) is an investment trust whose shares are listed on the London Stock Exchange and an Alternative Investment Fund under the Alternative Investment Fund Managers Directive. The Compan y’s objective is to achieve a net asset value total return (with dividends reinvested) greater than that of the Deutsche Numis Smaller Companies Index (excluding Investment Companies) (DNSCI (XIC)) over the long term by investing in a diversified portfolio of securities issued by small UK quoted companies. The Company may, at any time, borrow money via its debt facility to purchase assets for the Company. This could magnify any gains or losses made by the Company. The Company’s shares are bought and sold via markets. Typically, at any given time on any given day, the price you pay for a share will be higher than the price at which you could sell it. The Company’s shares do not have a fixed duration. However, in accordance with the Company’s Articles of Association, shareholders are asked every three years to vote on the continuation of the Company. The next vote will occur at the Annual General Meeting in March 2026. There is no ability for Aberforth Partners LLP to terminate holdings unilaterally. This product is suitable for investors planning to hold an investment for the medium to long-term (at least 5 years) and is designed to be used as one component in an investment portfolio – potential investors in the Company’s Ordinary shares are advised to consult their professional investment advisers in respect of any investment decision in relation to those shares. ## What are the risks and what could I get in return? > 1 2 3 4 5 6 7 > Lower risk Higher risk The risk indicator assumes you hold your investment for 5 years. The actual risk can vary significantly if you sell your investment within a shorter timeframe and you may get back less. You may not be able to sell your investment easily, or may have to sell at a price that significantly impacts on how much you get back. Risk indicator The summary risk indicator is a guide to the level of risk of this product compared to other products. It shows how likely it is that the product will lose money because of movements in the markets. We have classified this product as class 5 out of 7, which is a medium-high risk class. This classifies the potential volatility from future performance at a medium-high level, and poor market conditions are likely to impact the capacity for you to receive a positive return on your investment. This classification is based on the volatility of the product’s share price returns over 5 years. Investment Performance Information Factors likely to affect future returns: The factor most likely to determine the outcome of the investment and have an impact on performance is the application of the product’s value investment philosophy, which targets superior long term returns for its clients. This involves the purchase of shares in companies that are selling below their intrinsic value (“value stocks”). Consistent application of the investment process does not guarantee superior returns in each and every year, but, there is evidence that it can produce results that meet the investment objective over the long term. Benchmark: The DNSCI (XIC) is the Company’s chosen benchmark. It is the reference point for defining the investment objective and evaluating the Company’s performance. Portfolio stock selection will impact investment performance relative to the benchmark, as the portfolio would typically be over-weight in stocks relative to the benchmark and have no holdings in others. What could affect my return positively? Consistent application of a value investment style enhances investment returns: within the DNSCI (XIC), this is supported by historical evidence which indicates that value stocks have out-performed growth stocks since the index’s inception. The value cohort of the index is populated by cyclical companies which may benefit the portfolio valuation in certain economic conditions. The Company’s investment returns will be determined, over a reasonable time frame, by the underlying progress of its diversified portfolio of investee companies. The Company's gearing strategy is tactical – it typically borrows when valuations and share prices are unusually low. Gearing can enhance the performance of the Company’s portfolio. What could affect my return negatively? While there is persuasive evidence that a value approach within small UK quoted companies may result in superior returns over the long term, there can be extended periods when the value style is out of favour and could result in periods of under-performance against the benchmark. In view of the cyclicality of the value cohort of the index, it is likely that concerns about a recession would disproportionately affect the valuations of a portfolio, such as the Company, selected under a value investment philosophy. Concern about recession may lead to a negative return from the portfolio and from the DNSCI (XIC). While gearing can affect investment returns positively, amid any weakness of equities, gearing will hamper the Company’s performance. Adverse market conditions: The Company has no fixed duration, but has a three yearly continuation vote cycle. If shareholders chose not to vote to pass the continuation resolution, proposals would be made for the unitisation or appropriate reconstruction of the Company. If such proposals were not approved, the Company could be wound up with any surplus assets, after meeting liabilities, paid to shareholders on a pro rata basis. This product does not include any protection from future market performance so you could lose some or all of your investment if encashed under adverse market conditions. Investments in shares of smaller companies are generally considered to carry a higher degree of risk. The performance of shares of smaller companies may be more volatile than the shares of larger companies over short time periods. > One -off costs Entry costs 0.00% The impact of the costs you pay when entering your investment. Further to the passing of the Packaged Retail and Insurance-based Investment Products (Retail Disclosure) (Amendment) Regulations 2024, the PRIIPS regulation does not apply to shares in a closed-ended investment company that is UK-listed. The FCA is consulting (CP24/20) on a new product information framework for Consumer Composite Investments (CCI), likely to be implemented over 2025 and 2026. There are no entry or exit costs charged by the Investment Manager or Company (although you may be required to pay your own broker and/ or adviser fees). The annualised ongoing fees and charges borne by the Company is set out in the Company’s factsheet, published on the website, this includes other ongoing costs and the annual management charge paid to Aberforth. The rate at 31 December 202 4 was 0.7 8% (inclusive of management fee) which is incurred by the Company and there is no additional charge to the investor . There is no performance fee paid by the Company. Further information on the Company, including its latest Annual Report, is published on the website. Composition of costs The table below shows the impact each year of the different types of costs on the investment return you might get at the end of the recommended holding period and what the different cost categories mean. These are zero as there are no additional charges to the investor. The costs below are borne by the Company. ## What happens if Aberforth Smaller Companies Trust plc is unable to pay out? As a shareholder of the Company you would not be able to make a claim to the Financial Services Compensation Scheme about the Company in the event that the Company is unable to pay out. ## What are the costs? Exit costs 0.00% The impact of the costs of exiting your investment. > Ongoing costs > Portfolio transaction costs 0. 00 % > Other ongoing costs 0.00 % > The impact of the expenses necessarily incurred in the operation of the > product. The ongoings costs rate at 31 December 202 4was 0.7 8% > (inclusive of management fee ) which is incurred by the Company and there is > no additional charge to the investor. > Incidental costs > Performance fee 0.00% There is no performance fee. > Carried interests 0.00% There are no carried interests. ## How long should I hold it and can I take my money out early? > Recommended minimum holding period: 5years Any investment in this product should be viewed as a medium to long -term investment and therefore you should be prepared to stay invested for 5 years. You may sell your investment before the end of the recommended holding period without penalty/char ge. ## How can I complain? As a shareholder of the Company, you do not have a right to complain to the Financial Ombudsman Service (FOS) about the management of the Company. Complaints about the Company, or this KID, should be sent to: Address: 14 Melville Street, Edinburgh, EH3 7NS Website: www.aberforth.co.uk/contact -us E-mail: enquiries@aberforth.co.uk We will then handle your request and provide you with a response as soon as possible. ## Other relevant information A detailed list of the risks associated with investing in this product, together with risks relevant to the market in which this Company invests, is available from the Risk Warnings section of the website. Aberforth does not provide investors with investment advice. This document has been issued for information purposes only. It does not contain any investment recommendations or an invitation to invest in the product. Investors should consider seeking advice from an authorised financial adviser prior to making any investment decisions. Further information on the Company, including its latest Annual Report, is published on the website.