Title: URL Source: https://is.gd/oV7DjV Published Time: Thu, 22 May 2025 13:37:21 GMT Markdown Content: # invtrusts.co.uk ## Investment objective To achieve long term capital growth by investment in UK quoted smaller companies. ## Reference Index The Deutsche Numis Smaller Companies plus AIM (excluding Investment Companies) Index ## Cumulative total returns (%) as at 31/03/25 1month 3months 6months 1year 3years 5years Share Price 465.0p (5.0) (6.7) (4.0) 6.3 (15.9) 18.0 NAV 511.2p (5.2) (7.9) (7.4) 0.0 (19.2) 26.6 Reference Index (3.3) (5.9) (7.4) (0.4) (11.1) 49.0 ## Discrete performance (%) 31/03/25 31/03/24 31/03/23 31/03/22 31/03/21 Share Price 6.3 8.2 (27.0) 1.0 38.9 NAV 0.0 8.1 (25.3) 5.4 48.6 Reference Index (0.4) 3.0 (13.4) (2.1) 71.3 Source: Workspace Datastream, total returns. The percentage growth figures above are calculated over periods on a mid to mid basis. NAV total returns are on a cum-income basis. Past performance is not a guide to future results. Ten largest positions relative to the reference index (%) Overweight Stocks Portfolio Reference Index Relative XPS Pensions 4.0 0.4 3.6 Cranswick 3.5 - 3.5 Games Workshop 2.8 - 2.8 Cairn Homes 2.7 - 2.7 Ashtead Technology 2.8 0.2 2.6 Hilton Foods 2.9 0.4 2.5 Diploma 2.5 - 2.5 Mortgage Advice Bureau 2.7 0.2 2.5 Paragon Banking 3.2 0.8 2.4 ME Group 2.8 0.4 2.4 # abrdn UK Smaller Companies Growth Trust plc Capturing the growth potential of UK smaller companies Performance Data and Analytics to 31 March 2025 A © 2025 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. For more detailed information about Morningstar’s Analyst Rating, including its methodology, please go to: http://corporate.morningstar.com/us/documents/ MethodologyDocuments/AnalystRatingforFundsMethodology.pdf The Morningstar Analyst Rating for Funds is a forward-looking analysis of a fund. Morningstar has identified five key areas crucial to predicting the future success of a fund: People, Parent, Process, Performance, and Price. The pillars are used in determining the Morningstar Analyst Rating for a fund. Morningstar Analyst Ratings are assigned on a five-tier scale running from Gold to Negative. The top three ratings, Gold, Silver, and Bronze, all indicate that our analysts think highly of a fund; the difference between them corresponds to differences in the level of analyst conviction in a fund’s ability to outperform its benchmark and peers through time, within the context of the level of risk taken over the long term. Neutral represents funds in which our analysts don’t have a strong positive or negative conviction over the long term and Negative represents funds that possess at least one flaw that our analysts believe is likely to significantly hamper future performance over the long term. Long term is defined as a full market cycle or at least five years. Past performance of a security may or may not be sustained in future and is no indication of future performance. For detailed information about the Morningstar Analyst Rating for Funds, please visit http://global.morningstar.com/managerdisclosures. Morningstar Analyst Rating TM > A Morningstar Analyst Rating™ Morningstar analysts assign the ratings globally on a five-tier scale with three positive ratings of Gold, Silver and Bronze. Morningstar Rating TM > A Morningstar Rating TM for Funds Morningstar rates funds from one to five stars based on how well they’ve performed (after adjusting for risk and accounting for all sales charges) in comparison to similar funds. Twenty largest equity holdings (%) XPS Pensions 4.0 Cranswick 3.5 Morgan Sindall 3.2 Paragon Banking 3.2 Premier Foods 3.0 JTC 3.0 Hilton Foods 2.9 Ashtead Technology 2.8 Games Workshop 2.8 Alpha 2.8 ME Group 2.8 Volution 2.8 Cairn Homes 2.7 Mortgage Advice Bureau 2.7 Gamma 2.5 Diploma 2.5 Coats 2.5 Tatton Asset 2.3 Hill & Smith 2.3 Hunting 2.3 Total 56.9 Total number of investments 48 All sources (unless indicated): Aberdeen: 31 March 2025. ## UK Smaller Companies abrdn UK Smaller Companies Growth Trust plc 02 Sector allocation (%) Industrials 24.4 Financials 20.3 Consumer Discretionary 19.7 Consumer Staples 10.6 Technology 5.7 Energy 5.1 Telecommunications 4.7 Real Estate 3.5 Basic Materials 3.1 Health Care 1.5 Cash 1.5 Total 100.0 Key information Calendar Accounts Published September Annual General Meeting October Launch Date 1993 Dividends Paid April/October Trust information Fund Manager Abby Glennie / Amanda Yeaman Gross Assets £371.2 million Borrowing £40.0 million Market Capitalisation £301.3 million Share Price 465.0p Net Asset Value C 511.2p (Discount)/Premium 12 Month High 12 Month Low (9.0)% (8.4)% (14.4)% Net yield 2.6% Net cash/(gearing) D (10.3)% Trust Annual Management Fee 0.60% on Net Assets up to £200m and 0.55% thereafter Ongoing Charges E 0.92% Active Share percentage F81.1% AIFMD Leverage Limits Gross Notional 3x Commitment 2x # abrdn UK Smaller Companies Growth Trust plc abrdn UK Smaller Companies Growth Trust plc 1 Year Premium/Discount Chart (%) -15 -12 -9 -6 Mar-25 Jan-25 Nov-24 Sep-24 Jul-24 May-24 Mar-24 ## 5 year trust performance - price indexed 50 100 150 200 Mar-25 Mar-24 Mar-23 Mar-22 Mar-21 Mar-20 abrdn UK Smaller Companies Growth Trust Share Price abrdn UK Smaller Companies Growth Trust - NAV (DIL) Reference Index B ## Fund managers’ report Market review UK equities followed other Western markets downwards in March due to fears that tariffs introduced by the US government would limit global growth and increase inflationary pressures. Uncertainty around President Trump’s plans for import levies caused significant volatility throughout the month as investors weighed their impact on global trade as well as financial and geopolitical stability. On a domestic level, the UK stock market reacted calmly to the spending cuts and weaker growth forecasts announced in Chancellor Rachel Reeves’ Spring Statement. The FTSE 100 finished the month with a total return of -2.0%, although losses were more pronounced among medium-sized companies, with the FTSE 250 Index returning -3.9%. The FTSE Small Cap Index, meanwhile, returned -1.5%. Economic data in the UK remained mixed, with the Consumer Prices Index recorded at 2.8% in February, a slightly larger-than-expected fall on January’s 3.0% figure. The Bank of England kept the base rate unchanged at its March meeting and warned that rises in energy costs could drive inflation higher later in the year. Upwardly revised official data B Reference Index is the Deutsche Numis Smaller Companies plus AIM (excluding Investment Companies) Index. C Net Asset Value including income. D Net gearing is defined as a percentage, with net debt (total debt less cash/cash equivalents) divided by shareholders’ funds. E Expressed as a percentage of average daily net assets for the year ended 30 June 2024. The Ongoing Charges Figure (OCF) is the overall cost shown as a percentage of the value of the assets of the Company. It is made up of the Annual Management Fee and other charges. It does not include any costs associated with buying shares in the Company or the cost of buying and selling stocks within the Company. The OCF can help you compare the annual operating expenses of different Companies. F The ‘Active Share’ percentage is a measure used to describe what portion of the portfolio’s holdings differ from the reference index holdings. Fund managers’ report continues overleaf 03 abrdn UK Smaller Companies Growth Trust plc abrdn UK Smaller Companies Growth Trust plc showed the UK economy had expanded by 1.1% in 2024, although GDP contracted by 0.1% in January. More up-to-date figures indicated a rise in private-sector output in March thanks to growth in the services sector. However, manufacturers remained under pressure due to the challenging outlook for international trade and reported the largest fall in exports and production volumes since 2023. Performance The Trust’s net asset value total return over the month was negative and it underperformed its reference index. The main detractor was the position in Trustpilot Group. The company lagged the wider market despite publishing a largely positive trading statement as investors questioned certain financial technicalities. Similarly, despite publishing a relatively solid full-year update, Clarkson declined due to the currently elevated levels of macroeconomic uncertainty that have created short-term difficulties for shipping markets. The holding in 4imprint Group also weakened as the firm made a subdued start to the 2025 financial year, with slower trading driven by risks around tariffs and the wider macroeconomic environment. However, the firm’s management remains confident of maintaining gross margins across the business. On the positive side, the holding in Volution Group rose after the company published upgrades to its earnings outlook. Ashtead Technology advanced on signs that the business continues to deliver on its strategy and drive earnings upgrades. Management also discussed a potential move to the main market. Bytes Technology Group shares rose after the company issued a strong update that showed growth and effective management of vendor rebate changes. Activity We exited the Trust’s holding in ingredients manufacturer Treatt during the month. The company has performed poorly on our Matrix analysis tool and has also suffered from high levels of management turnover in recent months. We also reduced the position sizes in a number of businesses, including XPS Pensions Group, Alpha Group International, AJ Bell and Raspberry Pi, and topped up the holdings in Breedon Group and Sirius Real Estate. ESG engagement We met management at Hill & Smith to discuss progress over the past three years since the firm formalised its ESG strategy and set out sustainability priorities following a comprehensive materiality assessment. The goal is to create sustainable infrastructure and safe transport through innovation. The company believes this strategy and priorities remain relevant and will continue to review and adapt its approach. Hill & Smith has a sustainability committee that works with the firm’s operating companies to create actionable plans with measurable near- and medium-term targets. The business has a new CEO who is committed to the group’s ESG agenda. Outlook Markets were again dominated by macroeconomic news in March and equities saw sharp declines in response to the threats and expected consequences of Donald Trumps’s tariffs. The current environment presents a highly unusual backdrop and the risks around economic forecasts are considerably higher than normal. As the situation is in flux and involves a host of unknowns – including whether the US may backtrack in case of a severe market and economic reaction, as well as the extent to which other countries may retaliate - we would hope the UK market looks for resilient and reliable businesses that are delivering on earnings expectations. This aligns with our focus on quality and growth, and company reporting remains strong. Our engagement with management teams remains high and regular contact with them in volatile times remains important. Our quality companies continue to demonstrate confidence to invest in their own business, both organically and through acquisitions. UK markets remain cheap and unloved but offer a great depth and breadth of UK and international exposure. The shine is starting to come off Wall Street and, with allocations to US markets having reached all-time highs in recent months, the flow outlook appears more favourable for European stocks. Composition of the portfolio by market capitalisation (Ex Cash) (%) Deutsche Numis Smaller Companies plus AIM (excluding Investment Companies) Index 86.0 FTSE 100 5.4 FTSE 250 H 3.6 FTSE AIM I 2.2 Other 2.8 Total 100.0 Capital structure Ordinary shares 64,788,065 Treasury shares 39,376,357 Allocation of management fees and finance costs Capital 75% Revenue 25% Trading details Reuters/Epic/ Bloomberg code AUSC ISIN code GB0002959582 Sedol code 0295958 Stockbrokers WINS Investment Trusts Market makers INV, JEFF, JPMS, NUMS, PEEL, SING, SCAP, WINS i Factsheet Receive the factsheet by email as soon as it is available by registering at www.aberdeeninvestments.com/ trustupdates www.aberdeeninvestments.com/ausc Contact Private investors trusts@aberdeenplc.com Institutional Investors InvestmentTrustInvestorRelations-UK@ aberdeenplc.com Ben Heatley Head of Closed End Fund Sales Ben.Heatley@aberdeenplc.com H FTSE 250 are mid cap holdings that are above market cap to qualify to be included in the Deutsche Numis Smaller Companies Index. I AIM holdings that are not included in the Deutsche Numis Smaller Companies plus AIM (ex Investment Companies) Index. Important information overleaf Fund managers’ report - continued 04 abrdn UK Smaller Companies Growth Trust plc abrdn UK Smaller Companies Growth Trust plc Statement of Operating Expenses Publication date: 8 October 2024 Recurring Operating Expenses (£000s) Year ended 30 Jun 2024 % of Average NAV Year ended 30 Jun 2023 % of Average NAV % Change (YOY) Management Fee (inc AIFM) 2,817 0.70% 3,390 0.72% -16.9% Custody fees and bank charges 29 0.01% 28 0.01% 3.6% Promotional activities 249 0.06% 362 0.08% -31.2% Directors remuneration 169 0.04% 154 0.03% 9.7% Depositary fees 49 0.01% 56 0.01% 0.0% Auditors' remuneration 71 0.02% 60 0.01% 18.3% Other administrative expenses 304 0.08% 415 0.09% -26.7% Ongoing Operating Expenses (ex indirect fund management expenses) 3,688 0.92% 4,465 0.95% -17.4% Expenses relating to investments in other collective investments 0.00% 0.00% Ongoing Operating Expenses (inc indirect fund management expenses) 3,688 0.92% 4,465 0.95% -17.4% Average Net Asset Value 402,438 471,984 -14.7% Operating Expense Ratio (ex indirect fund management expenses) 0.92% 0.95% Operating Expense Ratio (inc indirect fund management expenses) 0.92% 0.95% Transaction costs and other one-off expenses (£000s) Year ended 30 Jun 2024 % of Average NAV Year ended 30 Jun 2023 % of Average NAV % Change (YOY) Transaction costs 358 0.09% 329 0.07% 8.8% Performance fees 0.00% 0.00% Other non-recurring expenses 5 0.00% 40 0.01% -87.5% Total 363 0.09% 369 0.08% -1.6% Current Service Providers AIFM abrdn Fund Managers Limited Investment Manager abrdn Investment Management Limited Company Secretary abrdn Holdings Limited Fund Accounting Services BNP Paribas Fund Services UK Limited Auditor KPMG LLP Depositary & Custodian BNP Paribas S.A. London Branch Registrar Computershare Investor Services PLC Corporate Broker Winterflood Securities Limited Summary of Current Key Commercial Arrangements The Company has appointed abrdn Fund Managers Limited (aFML), a wholly owned subsidiary of Aberdeen plc, as its Alternative Investment Fund Manager. aFML has been appointed to provide investment management, risk management, administration and company secretarial services, and promotional activities to the Company. The Company's portfolio is managed by abrdn Investment Management Limited by way of a group delegation agreement in place between it and aFML. aFML has sub-delegated administrative and secretarial services to abrdn Holdings Limited, promotional activities to abrdn Investments Limited, and fund accounting services to BNP Paribas Fund Services UK Limited. Further details of the fees payable to the Manager are shown in notes 4 and 5 to the financial statements in the Annual Report. The management agreement is terminable on not less than six months’ notice. In the event of termination by the Company on less than the agreed notice period, compensation is payable to the Manager in lieu of the unexpired notice period. risk management, administration and company secretarial services, and promotional activities to the Company. No performance fee. Fee scale % of NAV £0-£175m 0.75% £175m-£550m 0.65% >£550m 0.55% Directors fee rates (£) Year ended 30 Jun 2024 Year ended 30 Jun 2023 % Change YoY Chair 40,700 38,500 5.7% Chair of Audit & Risk Committee 32,800 31,000 5.8% Senior Independent Director 29,400 27,750 5.9% Director 27,500 26,000 5.8% Number of Directors 5 6 Important Information The Statement of Operating Expenses is designed to help investors understand the impact of operating expenses on financial performance. Operating expenses are NOT deducted from the value of an investor's shareholding, which is derived from the share price. The market value (share price) of all publicly traded companies reflects a wide range of factors, including the estimated impact of operating expenses on future financial performance. The market value of an investment trust may diverge materially, both positively and negatively, from the reported net asset value. 0004674601 For more information visit invtrusts.co.uk Important information Risk factors you should consider prior to investing: • The value of investments, and the income from them, can go down as well as up and investors may get back less than the amount invested. • Past performance is not a guide to future results. • Investment in the Company may not be appropriate for investors who plan to withdraw their money within 5 years. • There is no guarantee that the market price of the Company’s shares will fully reflect their underlying Net Asset Value. • As with all stock exchange investments the value of the Trust shares purchased will immediately fall by the difference between the buying and selling prices, the bid-offer spread. If trading volumes fall, the bid-offer spread can widen. • The Company may borrow to finance further investment (gearing). The use of gearing is likely to lead to volatility in the Net Asset Value (NAV) meaning that any movement in the value of the company’s assets will result in a magnified movement in the NAV. • The Company may accumulate investment positions which represent more than normal trading volumes which may make it difficult to realise investments and may lead to volatility in the market price of the Company’s shares. • Yields are estimated figures and may fluctuate, there are no guarantees that future dividends will match or exceed historic dividends and certain investors may be subject to further tax on dividends. • The Company may charge expenses to capital which may erode the capital value of the investment. • The Alternative Investment Market (AIM) is a flexible, international market that offers small and growing companies the benefits of trading on a world-class public market within a regulatory environment designed specifically for them. AIM is owned and operated by the London Stock Exchange. Companies that trade on AIM may be harder to buy and sell than larger companies and their share prices may move up and down very sharply because they have lower trading volumes and also because of the nature of the companies themselves. In times of economic difficulty, companies listed on AIM could fail altogether and you could lose all your money. • The Company invests in smaller companies which are likely to carry a higher degree of risk than larger companies. • Specialist funds which invest in small markets or sectors of industry are likely to be more volatile than more diversified trusts. Other important information: An investment trust should be considered only as part of a balanced portfolio. The information contained in this document should not be considered as an offer, solicitation or investment recommendation to deal in the shares of any securities or financial instruments. It is not intended for distribution or use by any person or entity who is a citizen or resident of or located in any jurisdiction where such distribution, publication or use would be prohibited. Nothing herein constitutes investment, legal, tax or other advice and is not to be relied upon in making an investment or other decision. No recommendation is made, positive or otherwise, regarding individual securities mentioned. This is not an invitation to subscribe for shares and is by way of information only. Investment should only be following a review of the current Key Information Document (KID) and pre-investment disclosure document (PIDD) both of which are available on www.invtrusts. co.uk. Any data contained herein which is attributed to a third party ("Third Party Data") is the property of (a) third party supplier(s) (the “Owner”) and is licensed for use by Aberdeen*. Third Party Data may not be copied or distributed. Third Party Data is provided “as is” and is not warranted to be accurate, complete or timely. To the extent permitted by applicable law, none of the Owner, Aberdeen* or any other third party (including any third party involved in providing and/or compiling Third Party Data) shall have any liability for Third Party Data or for any use made of Third Party Data. Neither the Owner nor any other third party sponsors, endorses or promotes the fund or product to which Third Party Data relates. *Aberdeen means the relevant member of the Aberdeen Group, being Aberdeen Group plc together with its subsidiaries, subsidiary undertakings and associated companies (whether direct or indirect) from time to time. FTSE International Limited (‘FTSE’) © FTSE 2025. ‘FTSE®’ is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under licence. RAFI® is a registered trademark of Research Affiliates, LLC. All rights in the FTSE indices and/ or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent. Issued by abrdn Fund Managers Limited, registered in England and Wales (740118) at 280 Bishopsgate, London, EC2M 4AG, authorised and regulated by the Financial Conduct Authority in the UK.