Aberforth Split Level Income Trust

Introduction

Aberforth Split Level Income Trust plc ("ASLIT") was launched, and received its listing on the London Stock Exchange, on 3 July 2017.  It is a split capital investment trust with two classes of share - Ordinary Shares and Zero Dividend Preference (ZDP) Shares - both of which are traded on the London Stock Exchange.

The Trust has a planned winding up date of 1 July 2024.

Objective

The Trust’s investment objective is to provide Ordinary Shareholders with a high level of income, with the potential for income and capital growth, and to provide ZDP Shareholders with a pre-determined final capital entitlement of 127.25p on the planned winding up date of 1 July 2024.

Policy

The Trust aims to achieve its objective by investing in a diversified portfolio of securities issued by small UK quoted companies. These are companies with a market capitalisation, at time of purchase, within the bottom 10%, by market capitalisation, of the London Stock Exchange’s Main Market for listed securities, or companies in the Trust’s investment universe, the Numis Smaller Companies Index (excluding Investment Companies) (“NSCI (XIC)”). At its last rebalancing on 1 January 2019, the NSCI (XIC) consisted of 359 companies, with an aggregate market capitalisation of £140bn and an upper market capitalisation limit of £1.3bn. This limit will change owing to movements in the stockmarket. The Trust’s portfolio will normally comprise between 50 and 100 investments in 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.

Full details of the Trust's Investment Policy are set out in the Investment Policy document.  Details of the Trust's Investment Strategy are set out in the latest Annual Report.  Both of these documents are available from the Literature Library.