Global Smaller Companies Trust PLC · LSE:GSCT
Global Smaller Companies Trust — The Global Smaller Companies Trust — Shareholder Meeting (July 2023)
22 slides from Global Smaller Companies Trust's shareholder meeting presentation, Jul 28, 2023
Slide 1: The Global Smaller Companies Trust PLC AGM Presentation
The Global Smaller Companies Trust PLC AGM Presentation Peter Ewins, Lead Manager 28 July 2023 All intellectual property rights in the brands and logos set out in this slide are reserved by respective owners. AdTrax: 5829953_UK. Image source: Pixabay
Slide 2: Important information
Important information The value of investments and any income derived from them can go down as well as up as a result of market or currency movements and investors may not get back the original amount invested. The value of your investment is dependent on the supply and demand for the shares of the
Slide 3: Agenda
Agenda Market environment Results for 2022/23 and performance record Portfolio activity and positioning Performance in new year to date Outlook 3
Slide 4: Market environment over 22/23 financial year
Market environment over 22/23 financial year Challenging period for smaller companies High inflation pressuring some business models and drove sharp increase in interest rates De-rating of popular growth stocks Pandemic re-opening phase created distortions in trading patterns In 2023 to da
Slide 5: Financial highlights 12 months to April 2023
Financial highlights 12 months to 30 April 2023 NAV (debt at fair value) -2.9% Benchmark -2.1% Share price -6.2% Dividend per share +25.0% Geographical performance (total return sterling adjusted) 10 9.1 7.7 Percentage (%) 5 0.3 0 -5 -3.0 -2.1 -2.1 -1.5 - -4.2 -3.8 - 1.50% -10 -6.3 -7.4 7.40% UK Eur
Slide 6: Attribution for 12 months to 30 April 2023
Attribution for 12 months to 30 April 2023 Top Portfolio Bottom Portfolio Total Total Total Total contributors to average contributors to average return % Effect return % Effect performance weight % performance weight % Eagle Materials 3.9 21.0 1.0 MaxLinear 1.7 -50.0 -1.0 LKQ Corp 3.8 18.5 0.8 Syne
Slide 7: Performance record over last five years
Performance record over last five years Discrete performance %, 12 month rolling (GBP, net of fees, total returns) Apr-22/ Apr-21/ Apr-20/ Apr-19/ Apr-18/ Percentage growth, % Apr-23 Apr-22 Apr-21 Apr-20 Apr-19 NAV -2.9 -0.2 48.0 -13.8 3.8 Share Price -6.2 -6.4 54.0 -16.5 -1.0 Benchmark -2.1 -3.2 54
Slide 8: Performance record over the long term
Performance record over the long term Performance %, over various periods (GBP, net of fees, total returns) Percentage growth, % 1 year 3 years 5 years 10 years 25 years NAV -2.9 43.3 28.2 144.6 811.1 Share Price -6.2 35.3 11.8 110.8 897.5 Benchmark -2.1 46.1 29.3 137.2 665.2 Source: Columbia Thread
Slide 9: Investment strategy – recent new purchases/adds
Investment strategy – recent new purchases/adds Quality businesses that can grow reliably Cyclicals with low expectations Commodity related businesses All intellectual property rights in the brands and logos set out in this slide are reserved by respective owners. Source: Columbia Threadneedle Inves
Slide 10: Investment strategy – recent sales/reductions
Investment strategy – recent sales/reductions Investment thesis broken Shares reach a full valuation Takeovers All intellectual property rights in the brands and logos set out in this slide are reserved by respective owners. Source: Columbia Threadneedle Investments. For the purposes of illustration
Slide 11: Where the portfolio was invested as at 30 June 2023
Where the portfolio was invested as at 30 June 2023 Geographic analysis (absolute) Sector analysis Japan 8.3% Energy, 3.8% Utilities, 0.4% Europe 11.8% Telecommunications, 0.9% North Real Estate, 4.3% Rest of America Consumer Staples, 5.9% World 43.1% Industrials, 21.2% 12.6% Basic Materials, 6.2% U
Slide 12: North American portfolio: Key stock positions
North American portfolio: Key stock positions As at 30 June 2023 Top 10 absolute holdings Sector allocation (relative to Benchmark* %) Portfolio weight % Industrials 8.0 Eagle Materials 4.8 Consumer Staples 4.6 LKQ Corp 4.0 Basic Materials 3.8 Kirby 3.5 Telecommunications -0.2 Ensign Group 3.3 Healt
Slide 13: UK portfolio: Key stock positions
UK portfolio: Key stock positions As at 30 June 2023 Top 10 absolute holdings Sector allocation (relative to Benchmark* %) Portfolio Technology 5.2 weight % Industrials 4.7 Kitwave Group 2.8 Energy 0.5 4Imprint Group 2.6 Health Care 0.4 OSB Group 2.6 Telecommunications 0.0 Shaftesbury Capital 2.2 Ut
Slide 14: European portfolio: Key stock positions
European portfolio: Key stock positions As at 30 June 2023 Top 10 absolute holdings Sector allocation (relative to Benchmark* %) Portfolio Consumer Staples 8.4 weight % Technology 2.7 Interpump Group 4.0 Basic Materials 2.3 SIG Group 3.8 Health Care 1.6 Tecan Group 3.5 Energy -0.1 Atea 3.5 Industria
Slide 15: Collectives for Japan and the Rest of World
Collectives for Japan and the Rest of World Holdings Portfolio weight %* Eastspring Investments Japan Smaller Companies Fund 4.4% Pinebridge Asia ex Japan Small Cap Fund 3.5% Schroder ISF Global Emerging Markets Smaller Companies Fund 3.4% The Scottish Oriental Smaller Companies Trust 3.2% abrdn SIC
Slide 16: Performance in the new financial year to date
Performance in the new financial year to date Net asset value +1.9% (debt at fair value) Benchmark +4.4% Share price +1.3% Past performance should not be seen as an indication of future performance. Source: Columbia Threadneedle Investments. Total returns in 23/24 financial year to 21 July 2023. Ben
Slide 17: Outlook
Outlook Expecting some pressure on corporate earnings, ongoing challenges for companies in managing pricing/cost dynamics Lagged impact of higher interest rates becoming more evident More positive outlook for companies exposed to fiscal spending and deglobalization Valuations offering suppor
Slide 18: Inflationary pressure easing in the UK
Inflationary pressure easing in the UK Source: Morgan Stanley as at 25 July 2023. 18
Slide 19: Valuations are more attractive in smaller companies
Valuations are more attractive in smaller companies Source: JP Morgan 7 June 2023, Jefferies 4 June 2023. 19
Slide 20: Smaller companies outperform coming out of a recession
Smaller companies outperform coming out of a recession Past performance should not be seen as an indication of future performance. Source: Morningstar, US market data 20
Slide 21: Disclaimer
Disclaimer © 2023 Columbia Threadneedle Investments. Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies. This financial promotion is issued for marketing and information purposes only by Columbia Threadneedle Investments in the UK. The Glob
Slide 22: Contact Us
Contact Us Columbia Threadneedle Investments 78 Cannon Street London EC4N 6AG Tel: +44 (0) 20 7628 8000 Calls may be recorded www.columbiathreadneedle.co.uk © 2023 Columbia Threadneedle Investments. Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of
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