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 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 £1.6bn as at 1 January 2020 (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 between 50 and 100 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 "Investment Policy" and "Investment Strategy" are set out in the latest Annual Report, which is available from the Literature Library.