SMALL COMPANIES DIVIDEND TRUST PLC

SMALL COMPANIES DIVIDEND TRUST PLC
Trust facts August
as at 30.6.05
2010
Investment Objective
The investment objective of the Company is to provide Ordinary shareholders with a high income and opportunity for
capital growth.
Investment Policy
The Trust’s funds will be invested principally in companies with a market capitalisation of up to £500 million; a
maximum of 20 per cent. of the Group’s portfolio may be invested in companies without reference to their market
capitalisation at the discretion of the Investment Manager. The Trust's portfolio will comprise companies listed on the
Official List and companies admitted to trading on AIM. The Trust will not invest in preference shares, loan stock or
notes, convertible securities or fixed interest securities or any similar securities convertible into shares. The Trust will not
invest in other investment trusts or unquoted companies.
FUND FACTS
Gross Assets:
19.48m
(includes unaudited revenue reserve to 30.7.10)
NAV:
92.05p
per Ordinary share
Share Price:
83.00p
per Ordinary share
£4m
£4.m Fixed Term Bank Loan
Share Capital:
16,250,000
Ordinary shares
Management fee:
1% pa.
Plus performance fee
Charge to Capital:
Management fee and bank interest (75% to Capital : 25% to Revenue)
Launch date:
12 May 1999
Dividends:
June, September, December and March
Yield:
20% approx.
Year end:
ASSET ALLOCATION
%
Support Services
14.10
Insurance
12.29
Construction & Materials
10.95
Financials
8.59
Engineering
8.05
Household Goods
7.39
Retailers
5.94
Travel & Leisure
4.66
Food & Beverages
3.77
Transport
3.49
Chemicals
3.16
30 April
Electronic & Electrical Eqt
2.74
AGM:
September
Pharmaceuticals
2.67
Fund Managers:
Dave Taylor and David Horner
Industrials Suppliers
2.44
Directors:
Lord Lamont (Chairman), Bryan Lenygon,
David Harris, William van Heesewijk
Technology Software
2.27
Media
2.17
Bank Debt:
historic
1.82
Mining
Utilities, Other
1.80
General Industrials
1.71
Total
100.0
www.chelvertonam.com
N
D
Trust facts August 2010
T SMALL COMPANIES DIVIDEND TRUST PLC
R
UFund Manager’s comments as at 31.8.10
S
T
The last month, traditionally a quiet one for UK market volumes, was dominated by evidence of a
Pdeteriorating macro environment both here and in the US. In particular the timing of a recovery in the
Lbuilding and construction industries now appears to have moved further to the right, although we remain
with our exposure to this area of the economy as we are generally being paid premium
Ccomfortable
yields to ‘wait’ for the eventual pick up in activity Corporate profitability remains on track and in line with
or ahead of expectations but it is fair to say that the scale of upgrades has slowed in recent
T
r weeks. Looking at our investible universe however it is reassuring to note that we can still find stocks
uthat are growing earnings and dividends trading on premium yields and single figure multiples.
s
t We made a number of relatively small changes to the fund in the last month with a focus on increasing
f the underlying yield of the portfolio. We sold part of our holding in Avesco, which currently is not paying
a a dividend after an exceptionally strong run. Monies were also raised from partial sales of Dee Valley,
c Wm Sinclair, D S Smith, Hilton Foods and Nichols all at prices which equated to yields that were below
t the fund average. We then made additional purchases of Office2Office, HMV, Fiberweb, Chaucer and
s
Morgan Sindall the latter performing particularly well since as it has announced the acquisition of a book
a
s of business from the administrators of Connaught.
a
t
Portfolio breakdown by market capitalisation
3
0
.
Number of Companies
Percentage of portfolio
6
£500m
.
£250m-£500m
5.05%
£500m+
0
3.51%
£0-25m
£250m7
5
£0-25m
21.84%
£500m
2
19
£100m-£250m
21.40%
£100-250m
11
£25-50m
11
£75-100m
3
£75-100m
6.50%
£50-75m
6
Small Companies Dividend Trust PLC is registered in England
Company No:
3749536
Price Information:
Reuters:
SEDOL:
Financial Times
SDV.L (Ords);
0661582
Marketmakers:
Fairfax I.S, Cazenove and Winterflood
£25-50m
22.12%
£50-75m
13.80%
HOW TO CONTACT US
Telephone :
Email:
01225 483 030
[email protected]
By Post:
Chelverton Asset Management
11 George Street
Bath BA1 2EH
www.chelvertonam.com
SMALL COMPANIES DIVIDEND TRUST PLC
S
M
Risk Factors
The value of investments and the income from them may go down as well as
up and you may not get back your original investment. Investment trusts can
borrow money to make additional investments on top of shareholders funds
(gearing). If the value of these investments fall in value, gearing will
magnify the negative impact on performance. Particular share classes may
also be structurally geared by other share classes that have earlier entitlement
to the Company’s assets up to a predetermined limit. If an investment trust
incorporates a large amount of gearing the value of its shares may be subject
to sudden and large falls in value and you could get back nothing at all.
Some split capital shares have higher risk characteristics than conventional
equities which can result in capital erosion. An investor could lose all of
their capital. Smaller companies are riskier and less liquid than larger
companies which means their share price may be more volatile. Some of the
annual management fee is currently charged to the capital of the Fund.
Whilst this increases the yield, it will restrict the potential for capital growth.
The level of yield may be subject to fluctuation and is not guaranteed. Net
Asset Value (“NAV”) performance is not the same as share price
performance and investors may not realise returns the same as NAV
performance.
Risk rating of Shares
Ordinary shares
High
The information contained in this document has been obtained from
sources that Chelverton Asset Management Limited (“CAM”) considers to be
reliable. However, CAM cannot guarantee the accuracy or completeness of
the information provided, and therefore no investment decision should be
based solely on this data.
This document is issued by CAM, authorised and regulated by the Financial
Services Authority. This document does not represent a recommendation by
CAM to purchase shares in this Trust. We recommend private investors seek
the services of a Financial Adviser.
Trust facts August 2010
Largest Holdings as at 31.8.10
%
1
Macfarlane Group
4.10
2
Portmerion Group
3.97
3
Sinclair (W) Holdings
3.62
4
S&U
3.48
5
Clarke (T)
3.42
6
Victoria
3.42
7
Zotefoams
3.16
8
Cineworld Group
2.96
9
Chesnara
2.94
10
Alumasc Group
2.81
11
Stadium Group
2.74
12
Consort Medical
2.67
13
Arbuthnot Banking Group
2.50
14
Trifast
2.48
15
Marshalls
2.40
16
Sanderson Group
2.27
17
Hilton Food Group
2.13
18
Abbey Protection
2.11
19
Avesco Group
2.10
20
Office2Office
1.98
Top 20 Total Percentage
57.26
Other holdings
42.74
Total
100.0
HISTORIC RECORD OF EARNINGS AND DIVIDENDS
15.5p
15.0p
14.5p
14.0p
13.5p
13.0p
12.5p
12.0p
11.5p
11.0p
10.5p
10.0p
9.5p
9.0p
8.5p
8.0p
7.5p
7.0p
6.5p
6.0p
5.5p
5.0p
1.14
0.46
0.7
2.39
0.31
0.48
0.86
0.48
0.5
13.00
8.30
9.00
9.50
9.75
10.00
10.35
10.75
13.65
11.25
7.30
1999
2000
2001
DIVIDENDS
2002
2003
2004
RETAINED EARNINGS
2005
2006
2007
2008
2009
7.85
2010
SPECIAL DIVIDEND RECEIVED
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