Aberforth UK Small Companies Fund

Introduction

Aberforth UK Small Companies Fund is an Authorised Unit Trust. The Fund is managed by Aberforth Unit Trust Managers Limited and the Trustee is National Westminster Bank plc. The Fund is a limited issue fund in accordance with the regulations governing authorised unit trusts. This allows the Manager to control the flow of money into the Fund as a result of subscriptions for new units. The Fund issues accumulation and income units.

Objective

The objective of Aberforth UK Small Companies Fund is to achieve a total return (with income reinvested) greater than on the Numis Smaller Companies Index (Excluding Investment Companies) over the long term by investing in a diversified portfolio of small UK quoted companies.

Policy

The Fund aims to achieve its objective by investing in securities of companies that are or that would be constituents of the Numis Smaller Companies Index (Excluding Investment Companies). The upper limit to this index was companies with a market capitalisation of £1,391m as at 1 January 2017 (the date of the last annual index rebalance). This market capitalisation limit will change owing to movements in the stockmarket. The portfolio is diversified and will normally consist of investments in over 80 individual companies. In seeking investments the approach will be fundamental in nature involving regular contact with the management of prospective and existing investments in conjunction with rigorous financial analysis of these companies. The emphasis within the portfolio will reflect the desire to invest in companies whose shares represent relatively attractive value within a given stockmarket environment.