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Standard Life UK Smaller Companies Trust changes its reference benchmark

Standard Life UK Smaller Companies Trust changes its reference benchmark – In the company’s half year statement published at the end of February 2018, it was announced that, with effect from 1st January 2018, the performance of SLS will be measured against the Numis Smaller Companies plus AIM (ex Investment Companies) index.

The previous index had been the Numis Smaller Companies (ex Investment Companies) Index.  Over time and as the quality of investment opportunities on the Alternative Investment Market (AIM) have improved , the portfolio manager, Harry Nimmo and team have, through stock selection, increased the fund’s allocation to that market and with some success.  The allocation to AIM is now in the region of 40% of the portfolio. Therefore, adopting the index that is refereed to in the half year report as the “the plus AIM index”, would seem a rational move.

The change supported by the portfolio manager, who believes that “the best way to deliver positive absolute returns over the long term is to continue to have significant exposure to AIM quoted companies.”

Standard Life UK Smaller Companies Trust

Standard Life UK Smaller Companies tries to achieve long-term capital growth by investment in UK-quoted smaller companies. Standard Life UK Smaller Companies invests in an actively managed portfolio of smaller and mid-sized companies in the UK equity market. The managers try to identify improving situations that are not fully recognised by the market, and to produce long-term capital growth and outperformance of the Numis Smaller Companies Index (excluding investment trusts).

SLS : Standard Life UK Smaller Companies Trust changes its reference benchmark

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